Kuiper Leda Gap Analysis

1329 Words6 Pages
Gap Analysis Gap analysis compares a company's actual performance with their potential performance. In the case of Kuiper Leda, their production inadequacies lie in supply chain management system, production planning and inventory tracking. Effective Supply Chain Management enables an in depth understanding of the interactions between the various manufacturers, consumers, distributors and suppliers. In order to increase the shareholders wealth and create opportunities for success the various organizations involved in the supply chain must work together. KL is a relatively smaller company that has received an opportunity to get noticed by the big companies in the automobile industry if it effectively meets the capacity demands of Midland Motors. The Supply Chain process refers to the processes from the raw materials to the consumption of the finished product including supplier user companies. The process consists of six steps namely- 1) The production Plan 2) The Master Production Schedule (MPS) 3) Materials Requirements Plan (MRP) 4) Capacity Requirements Planning (CRP) 5) Production Activity Control (PAC) 6) Delivery After the MRP is ready a detailed capacity check called Capacity Requirement Planning (CRP) is done. The work in progress (WIP) on the shop floor, machine load factor per work center and the sequence of production and capacity utilization are all taken into consideration by the CRP. Discrepancies that were overlooked at the RCCP stage may be discovered in this phase. The MPS may need to be adjusted or additional capacity cleared if the CRP shows that the order cannot be managed. (University rEsource Page 2008) Inventory management is an important aspect of Supply Chain Management. Effective Inventory Management ensures higher customer service levels while maximizing net profits. It is very critical to have the right amount of inventory to
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