Printed Circuits Components for a Jit Factory

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1. Printed Circuits Components for a JIT Factory ---- Page 886 Model Answer The purpose of this case is to familiarize the student with the conflicts between price, service, time, and quality that occur when selecting a source. Selecting satisfactory suppliers is one of procurement's major responsibilities, and when done correctly, can lead to optimal trade-offs between the four conflicting factors in a purchase decision. Some important aspects of supplier selection include: 1. Supplier goodwill 2. Assurance of supply 3. Supplier's size 4. Supplier's financial condition 5. Local, national, or international suppliers 6. Management orientation 7. Supplier's record of performance When there is a good…show more content…
Taguchi's strengths are a familiarity with JIT and the automatic equipment used at Acacia. Its weaknesses include being an international supplier, potential currency or communication problems, having no history as a JIT supplier with Acacia, and charging a price 10 percent higher than Monitor's. Other considerations the students should explore include how quickly the new suppliers would come up to speed, whether it would be useful to continue with Monitor in the short-run while additional qualified suppliers are located, and how seriously supplier goodwill would be jeopardized by pulling the JIT parts away from Monitor. Question 2: What should Carl do now? There is, of course, no single correct answer to this question. In the class discussion there should be mention of how critical quality, service, timeliness, and cost are for the parts. The quality of Monitor's parts was so poor that production was repeatedly halted as a result. This is an extremely important factor for a high-volume, mostly automatic process. The service provided by the supplier is also of key importance in this case because of unusual specifications arising from the JIT environment, and probable engineering changes due to lack of experience Acacia has with the product and production process. The timeliness

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