Running head: GAP ANALYSIS: KUIPER LEDA
Gap Analysis: Kuiper Leda
University of Phoenix
Gap Analysis: Kuiper Leda
Kuiper Leda is an automotive equipment manufacturer that assembles electronic control units and sensors. The organization has been in business for 10 years and has recently begun to manufacture radio frequency identification devices also. Kuiper Leda has recently received an order for 250,000 electronic control units and 35,000 radio frequency identification devices from Midland Motors. Midland Motors has had exceptional business and it is a large auto major. An order from them would benefit Kuiper Leda. It is important that KL produces quality products and ...view middle of the document...
Since the recent overload has rendered its supply chain unproductive, Kuiper has implemented some changes. Kuiper currently uses the Material Requirements Planning software system. Material Requirements Planning is a software-based production planning and inventory control system used to manage manufacturing processes. MRP helps Kuiper ensure materials and products are available for production and delivery to customer, maintain inventory at a minimum level, plan manufacturing, purchasing, delivery activities and schedules.
In order to improve supply chain management, Kuiper Leda should outsource manufacturing of the electronic control units and continue to manufacture the radio frequency identification devices tag in-house. The lead time for having the electronic control units manufactured is four weeks which satisfies the customer’s requirements for delivery which makes outsourcing the entire product to an e-business portal a better option. Outsourcing the electronic control units would also allow Kuiper Leda to save on increase cost that the company would incur if the products were manufactured in-house.
Stakeholder Perspectives/Ethical Dilemmas
Kuiper Leda executive leadership has a diversity of problems to compete with. The large order from Midland has given the company a great opportunity. However, deficiencies in sales forecasting planning, and inventory management could cause one or more of their customers to cancel or reschedule orders. Noticeably, this would be a barrier to the long term success of Kuiper Leda. Executives want to institute programs such as Just in Time and Six Sigma to streamline operations, decrease unnecessary inventory and ensure a quality product is delivered on time. Customer satisfaction is the organization’s primary goal.
Midland Motors has placed a large order with Kuiper. Midland is a major auto manufacturer that needs to produces cars to be shipped to dealers and then sold to customers. Midland wants quality components to use in the manufacture of quality cars.
Shareholders of Kuiper Leda want to see the company expand and increase profitability. This can be accomplished if Kuiper Leda leadership can successfully institute its plans to improve its supply chain issues and quality concerns. Shareholders will be more reluctant to continue to invest in Kuiper Leda if the company can be viewed as a thriving business with the opportunity for further growth.
Kuiper Leda’s end state vision is to improve supply chain and inventory management strategies to accommodate customers, meet demands, and expand its international and domestic clientele.
Kuiper Leda has to improve the management of its supply chain. In an attempt to achieve optimization of its supply chain, Kuiper Leda will need to put into practice an inventory management system. A component of the inventory management system should be a pre-determined amount of safety stock for the microchips,...