Gap Analysis: Kuiper Leda
Inventory management has traditionally been considered as a necessary resource that every company needed. Its primary purpose was to evaluate and control inventory from the raw material level, through the production process and control stage, to the final out-door delivery. These older models of inventory management had several issues, such as inefficient control system, long cycle time, and bureaucratic process. Beginning in the late 1980s, many corporate businesses became deeply interested in developing new inventory management system that will reduce operation cost and expand market chare. Today, the business world is still improving its inventory system. The ...view middle of the document...
Another challenge that brought by Midland Motors is the high priority of the order. Twelve months period seems very critical deadline for completion.
Kuiper Leda has a dilemma whether company should perform manufacturing in-house, outsource job by e-business portal or subcontract one to another manufacturer, or perform the partial option. Due to the different extent of the company's capacity, the contribution margin is varying among different alternatives of ECU and RFID production sources. Table 1 shows summary of other issues and opportunities Kuiper Leda facing.
Stakeholder Perspectives/Ethical Dilemmas
The stakeholders have significant interest and opportunity in Kuiper Leda's activities and performance. The new management approach that company needs to develop created more perspectives and ethical dilemmas among stakeholders. Management is responsible to all shareholders' interest to provide them with true statements of company financial position as a source of stakeholders' investments. Customers and investors are expecting to see Kuiper Leda future opportunities that will lead to future increase in earnings. Employees and outsourcing contractors are more interesting in company's current position.
The summary of the stakeholder perspectives presented in Table 2.
The needs for expand technological infrastructure and ability to increase production capacity are important as never. Company's primary focus should be on planning and controlling inventory that should involve new advance technological tools and innovations. By eliminating
some of the processes in the long supply chain production, company should empowered its production cycle, which in turn empowers management inventory structure and allow the executives make critical, production-affecting decisions quickly. It should also simplify Kuiper Leda' operations because now management will be better able to leverage its knowledge, expertise, and technology. Company will improve its client service by increasing its ability to produce more units for more clients.
After the new inventory management approach Kuiper Leda end state goals would be as following: a) complete Midland Motors order within 350 days; b) increase production capacity to value of 200,500 units annually; c)...