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HEWLETT-PACKARD DESKJET PRINTER (Problems (Customer Satisfaction in term…
HEWLETT-PACKARD DESKJET PRINTER
Backgorund
Founded 1939 in Palo Alto-California by William Hewlet
In 1990 had over 50 operations worldwide, revenues $13.2 billion, net income $739 million
6 Products Group
Peripeheral Group (The Biggest)
Product
Printers
Plotters
Magnetic Disc and Tape Drives
Terminals and Network Product
Key Succes: Ability to Identify and profitably exploit market opportunities the Laser Jet Printer
Organizational
HP's VP Of Marketing
Worldwide Distribution Manager
DC's Operation Manager
^ Managers (Finance, MIS,Quality, Marketing, Physical Distribution, Distribution Services)
Problems
Customer Satisfaction in term Product Availability
Inventory Level esp. in Europe DC's
Consistent Method for setting & implementing inventory goals
Decrease the defects
Retail Printer Market
In 1990, sales $10 billion (17 million unit)
Mature in US and Western Europe
Technology Segment
Impact/Dot Matrix (40%)
Ink-Jet (20%) Pioneered Ink-Jet Technology
Key Technological
Ink Formulation
Disposable Print Head
Laser (40%)
Divisions
Vancouver Divisions
Design and Manufacturing Ink-Jet Printers
In 1979: cycle time : 8-12 week, inventory: 3.5 months
In 1982, inventory : 0.9 month and drastic decrease of cycle time
In 1988 introduces DeskJet Printer
Key Sucess:
HP's knowledge and implemented technology
Streamlined Manufacturing Process
Supply Chai
n
Stages
Printed Circuit Assembly and Test (PCAT)
Assembly and testing electronic component (ASIC's, ROM, raw printed circuit board)
Final Assembly Test (FAT)
Subassemblies (motors, cables, key, pads, plastic chassis, and skins, geras and printed circuit from PCAT
Time :
Total Factory Cycle Time of PCAT & FAT: 1 Week
Vancouver to US DC's : 1 day
Vancouver to Eurpoe & Asia : 4-5 weeks
3 Major Uncertainty :check:
Delivery of Incoming Materials
Internal Process
Demand
Distribution
3 Group Distribution Centre (DC)
North America
Europe
Asia Pacific
Performance Measure
LIFR (Line Item Fill Rate)
Order Fill Rate (OFR)
Inventory Levels and Distribution cost per gross shipment dollar
Cost Structure
Outbond Freight
Salaries
Inventory
Target Levels: Forecasted + Safety Stock Level
Alternative Problem Solution
Using Safety Stocks Methodology
Opening Europe Plant
Shipped by Airfreight
Use Box-Jenkins Method