Situation And Gap Analysis Of Kuiper Leda

2265 words - 10 pages

Running head: GAP ANALYSIS: KUIPER LEDA

Gap Analysis: Kuiper Leda
C. McKinney
University of Phoenix
Resource Optimization
MBA550
Murray R. Millet
February 9, 2009


Gap Analysis: Kuiper Leda
Kuiper Leda Inc., in the Republic of Novamia is an electric components manufacturer. It specializes in the production of Electronic Control Units (ECUs) and sensors for the automotive industry. Its clients include automobile manufacturers and Original Equipment Manufacturers (OEMs) for the automotive industry, University of Phoenix, Simulation 2009). Kuiper Leda Inc (KLI) is concerned with developing an efficient production so the suppliers can receive products.
KLI is confronted with ...view middle of the document...

You need to decide how to meet the sudden increase in demand. Will both products be manufactured in-house? Will you outsource completely? Will you need to outsource any product partially (University of Phoenix, 2009)?
KLI is in need of a production change that would help minimize costs of inventory and make a way for new inventory, thus keeping the inventory moving. Implementing the Just in Time System may prove to be beneficial to KLI. Chase states, “To make each different product involves obtaining the necessary materials, arranging specific equipment setups, filling out the required papers, appropriating charging time and materials, and moving out the previous stock of material. If there were no costs or loss of time in changing form one product to another, many small lots would be produced. This would reduce inventory levels, with a resulting savings in cost. One challenge today is to try to reduce these setup costs to permit smaller lot sizes. This is the goal of the Just in Time System (JIT),” (Chase, Jacobs & Aquilano, 2005).
In order to improve production KLI is in need of improving its supply chain management techniques with an adequate and appropriate method. Lee reports “Supply chain management involves the flows of material information, and finance in a network consisting of customers, suppliers, manufacturers, and distributors,” (Lee, Supply Chain Management Review, 2000)
KLI has the option to outsource the ECUs and RFID to an E-business portal. Outsourcing and the E-business portal for both products would be more feasible for KLI. There are problems that remains KLI cannot handle the large product order overload and MM is an important and significant supplier that KLI can’t afford to lose. Managing inventory is crucial for KLI. However, apparently KLI is deficient in this area and is unable to manage a large capacity of inventory. Inventory is the stock of any item or resource used in an organization, (Chase. et al. 2005). As a result of KLI situational issues KLI has found itself in a “bottleneck” system. A bottleneck is defined as any resource whose capacity is less than the demand placed upon it. A bottleneck is a constraint within the system that limits throughput. It is that point in the manufacturing process where flow thins to a narrow stream, (Chase. et al. 2005). KLI appears to be in the limits of this constraint.
Stakeholder Perspectives/Ethical Dilemmas
KLI will face ethical dilemmas when trying to implement new strategies for conducting business appropriately. KLI is obligated to MM to produce its products through productivity in the appropriate time frame. KLI maintain the firm and conduct appropriate business with clients (MM, OEM). KLI has the right to time managed the employees in order to reduce expenses. Thus, reduction of expenses through time management will enable the employees to remain employed. KLI is obligated to remain a responsible party to his clients, suppliers, retailers, and...

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