Shipper Manufacturing:

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I. Time Context: April 2009 II. Central Problem: What the manufacturing strategy over the next five years should be and how the strategy should be implemented? III. Secondary Problem: Shift in business strategy might affect the production and inventory control area. IV. Objectives: In order for the APD Division at Shipper to gradually shift from a low volume/sole-source product line to a higher volume/continuous product, manufacturing will need to adopt new operations objectives with respect to cost, delivery, quality and flexibility. Cost Objective: . The price tag of the product will become a more important objective due to increased competition and Shipper Co would want to reduce costs that could fall internally. Delivery Objective: Delivery as a qualifier will also help win orders in a more competitive environment and thus the objective is to shorter lead times in order to compete. Since the product is not custom designed, new expectations may require stocking a finished goods inventory and possibly maintaining supplies to quickly produce the goods during peaks of demand. Quality Objective: Shipper would maintain the quality standards they are known for, which may already provide for a distinct competence. Quality would be an order qualifier supporting the order winner of cost and can aide in positioning APD’s products as a strong competitor in the anticipated market. Flexibility Objective: The shift from customer to producer designs hence Shipper’s objective is to reduce flexibility for it will aim for fewer manufactured products marketed at a wider audience. V. Areas of Consideration Strengths Respond to individual customer design requirements and tailor new
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