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HP: DESKJET PRINTER SUPPLY CHAIN (Inventory and Service Crisis (Scientific…
HP: DESKJET PRINTER SUPPLY CHAIN
Main Issue
Agreement About Level of Inventory
Product Availability vs Minimizing Inventory
HP Organization
By Product Group
The Peripheral Groups
Printers
Plotters
Magnetic Disk and Tape Drives
Terminals and Network
By Function
Retail Printer Market
Technology Segment
Impact/Dot Matrix
Ink-jet
Advantage
Affordable Price
As Laser Quality
Key Technology
Ink Formulation
Disposable Print Head
Competitors
Canon
Epson
Manisman-Tally
Siemens
Olivetti
Becoming Commodity
Laser
Reseller Channel
Computer Dealers
Superstores
The Vancouver Division
Mission Statements
Consolidation
Fort Collins, Colorado
Boise, Idaho
Sunnyvale, California
Corvallis, Oregon
Designing and Manufacturing Ink-jet Printers
Requirements
Fast Process
High Volume
Current Capacity
8-12 Week Cycle Time
3,5 months Inventory
Experience
Low Volume
Highly Customized Products
Problem Solving
Meet Resource
Richard Schoenberger (Nebraska University)
Kanban
Robert Hall (Indiana University)
Result
Stockless Production
Reduce Inventory
3,5 months to 0,9 months
Drastical Cycle Time Reduction
Showcase Factory for Kanban
Element Missing
Answer: Deskjet
Bugs
Poor resolution
Require special paper
Deskjet
Supply Chain
Suppliers
Manufacturing Sites
Vancouver Site
Pull Mode
Just in Time
Key Stages
PCAT
ASIC's
ROM
Raw PCB
FAT
Motors
Cables
Keypads
Plastic Chassis
Gears
Distribution Centers
North America
Europe
Asia Pacific
Inventory Level
Forecasted Sale
Safety Stock
Dealers
Make-to-Stock Mode DC
Customers
Minimum Inventory
Source of Uncertainty
delivery of incoming materials
Demand
Internal Process
Localization
Language
Power Supply
Voltage
Plug
Distribution Process
Performance Measure
LIFR
OFR
DC Process
Receive product
Pick Product
Shrink wrap order
Ship the Order
DC Confusing
Distribution
Manufacturing
Inventory and Service Crisis
Scientific Based Safety Stock
Safety Stock Methodology
Reduce the Uncertainties
New Plant in Europe?
More Inventory?
Air Shipment?
Forecasting System