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Spartan Heat Exchangers Inc. Essay

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Current State
Spartan Heat Exchangers Inc. is a leading designer and manufacturer of specialized industrial heat transfer equipment for more than 10 years. The company’s primary products are transformer coolers, hydro generator coolers, air-cooled heat exchangers and transformer oil coolers. Their USP – Fin tube type heat exchangers and long lasting products.
They are into highly customized heat equipments & because of new competition from European & Korean companies they have changed their corporate policy, which emphasize on reducing the product variety & standardized the product. The new business policy also states of reducing the current lead time from 14 weeks to 6 weeks.

Problem Statement
The Materials Department headed by
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Earlier the work was based on the specific requirements of the client and it was more of research based but now the focus on research will be less and it will be more on general requirements. Therefore the type of work would shift.
The present organizational chart of the SC Department in the company includes two buyers, one material control clerk, one expeditor and two shipper/receivers. This structure was functional to the previous strategy because there was a strong focus on the purchasing function. We believe that in order to maximize the SC Department resources in accordance with the new structure the positions and functions of the people with the SC Department will have to be adapted to strengthen the inventory management function of the company. There company could benefit from having one person responsible for forecasting demand. Processes should be reviewed to ensure that the SC Department has sufficient access to information in order to achieve this task. Re-buying will also be of utmost importance now in order to ensure that there is always sufficient inventory to maintain production going.
• Vendor Development.
A vendor base of 350 can prove very beneficial for Spartan. Such a large base of vendor proves that Spartan has a good market reputation.
Also the increase in the requirement of raw material & its variety getting reduced will help Rick to:
• Maintain & improve quality
• Find & develop best–in-class supplier (both
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