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World Pumps and Controls (Problems (Quality products (Wrong suppliers…

- - - - A
      - B, this year
      - C
      - D
        
        1000 l/m
    - - Mountings
      - Hot/cold weather requires shades
        
        Africa mandatory
        
        Chinese make by themselves
    - - Electric motor
        
        expensive
        
        3 Suppliers
        
        Unreliable
      - Pump
  - - - Valves
        
        Supplier: Lichfield
        
        UK Supplier
        
        Low technical expertise
        
        Cheappest supplier
        
        Trying to decide
        
        Insource
        
        Karlstat
        
        high quality
        
        US Based
        
        Linchfield
        
        very important
        
        40% of rejection
        
        demand is high
        
        has to outsource
      - Pipes
      - Control Systems
      - Pumps
    - - Invitations for tender
      - Design drafting
        
        Requires long time:client specifications
      - Tendering for the contract
      - Detailed design
      - Manufacturing and Assembling
      - Installing
    - - Modifications on production line cause stoppages
        
        Post prod. modifications
- - - - (Industrial Hydraulic Systems experience
      - Was charged to increase sales 5% annum
      - Strategy: Give the customer what they want increasing product variety
      - Increase share of of IPS sales from 25 to 50% (Target)
- - - - Lack of time
      - Poor design
      - Set up changes
        
        Higher batch sizes causes shortages and excess inventory
      - Variety caused complexety
        
        Delays in production
    - - Increased number of deisgners (did not solve the problem)
      - High turnover of the engineers
      - 15 design jobs (currently)
      - Too many changes of design
  - - - Poor quality assemblies
        
        Production stoppages
    - - Bearings weared out
        
        Too much lubrication oil required
  - - - Variable bathces
    - - Bottleneck
    - - Caused by machine poor condition
      - SPC was proposed
- - - - Agricultural 45%
        
        Market is declining
        
        Channels
        
        Farmers
        
        Distributors
        
        Margin is low
        
        High stock to cover all customer demand
      - Industrial 100%
        
        No pattern in Demand
        
        Competitors
        
        Germans, Scandinavian
        
        Higer price, better quality
        
        Longer lead time for quotation and sample
        
        Long processing of orders
        
        Cumbersome paperwork
        
        ambigous information
        
        Lead time is more important
        
        Loosing customer loyalty
    - - Agricultural 55%
        
        Asia 30%
        
        Low margin
        
        Africa
        
        SA, Nigeria local sales
        
        Rest through distributors
        
        Peak in May
- - - - Finance receive
      - Customer