Problem Solution: Kuiper Leda 1

Running head: PROBLEM SOLUTION: KUIPER LEDA

Problem Solution: Kuiper Leda

Your Name Goes Here

University of Phoenix
 Problem Solution: Kuiper Leda 2

Problem Solution: Kuiper Leda

[Triple click anywhere in this sentence to begin typing your introduction.]

Situation Analysis

Issue and Opportunity Identification

Kupier Leda received an order for electronic control units (ECUs) and radio frequency

identification device from Midland Motors. The order place by Midland Motors unusually large

compared to Kupier Leda’s other client. Kupier Leda must decide how they will handle this order

and the orders of its other clients. Kupier Leda has several issues that provide the company with

the opportunity to develop itself. This section of the analysis will identify key issues within

Kupier Leda. The issues identified within the company include, determining a method that will

allow it to increase production in order to accommodate demand. The production plan must

allow Kupier Leda the opportunity to streamline its inventory system. Kupier Leda must develop

a distribution plans that will accommodate variable shipment orders. If the firm is successful

within the first phases of the initiatives, it must determine a method for implementing just-in-

time inventory.

Inventory Management

Currently Kupier Leda produces approximately 1250 ECUs and 250 RFIS Tags in one

day. The Midland Motors has requested 250, 000 ECUs and 35, 000 RFIS Tags - Kupier Leda

must decide whether it will produce the components within its facility of if it will outsource the

request to another firm. In making this decision, Kupier Leda must decide the affect an order of

that capacity will have on the firm in relation to its ability to accommodate its current clients and

produce quality work. This issue provides Kupier Leda with the opportunity to adjust it facility

output capacity to keep pace with the industry.

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Distribution Strategy

Kupier Leda has developed a reputation in the electronic components manufacturer

industry that surpasses its peer group. In order to maintain its image and continue to become a

driving force in the electronic components manufacturing industry it must keep pace with its

competitors. In comparison to its peers, Kupier Leda is small but it is known for producing

quality products. The electronic component manufacturing industry relies heavily on repeat

orders and supplier relations. Kupier Leda is deficient in relation to supplier and consumer base.

The anticipation for the electronic component manufacturing industry is that it will show

significant growth within the next two years. Kupier Leda has the opportunity to develop a

distribution strategy that will allow it to meet the demands of the industry.

Supplier Strategy

Kupier Leda uses several suppliers to ensure supplies are available to manufacture the

electronic components. Kupier Leda uses AutoMart, Markham Electronics, Axle Electronics,

Angleton Autoparts, and Schmidt and Steels as suppliers. A leaner supply base is key in using the

just in time approach. In order to efficiently manage a just in time supply plan it must streamline

its supply process. Because of Kupier Leda’s continued growth it must consider several factors

when develops a plan to streamline the supply process. Lead-time, cost, current operating

systems and inventory control are key drivers when deciding on a supply group. Kupier Leda has

the opportunity to evaluate its current needs and develop a supply group that will be

advantageous.

Stakeholder Perspectives/Ethical Dilemmas

The issues within Kupier Leda are serious enough to affect the existence of the firm.

There are several groups affected by the outcome of the company. This section of the analysis
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will identify the stakeholders and possible dilemmas. The stakeholders affected include Kupier

Leda’s management team, suppliers, customers, and the employees of all firms involved. The

management team has a stake to ensure the decisions made are in the best interest of the firm.

The management team must put their personal opinion aside and make decisions that will help

Kupier Leda meet its goals.

The initiatives at Kupier Leda require the firm to restructure many aspects of the

business. For example, the management team is considering releasing suppliers to implement the

just in time plan. The suppliers have an interest in the decisions made within the firm. Once the

plan is implemented not all the suppliers will remain within Kupier Leda’s supply chain. If

Kupier Leda decides to relieve some suppliers, it will affect those firms directly. The suppliers

have an interest to ensure it is able to secure orders to replace Kupier Leda’s orders. Additionally,

depending on the extent of the relationship, the employees of those firms focus is job security.

Problem Statement

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End-State Vision

As a company, the end state vision is to develop a low cost distribution and production

method that will allow Kupier Leda to become a leader in the industry. Within this goal, Kupier

Leda hopes to develop a method to ensure it meets the demand of the Midland Motors order. In

order to fulfill the order Kupier Leda must increase production and develop a method to optimize

its resources. This goal can be measured but the rate and cycle of current and new orders. Kupier

Leda will also develop a distribution method that will enhance its ability to accommodate

fluctuating orders. This plan will also be measured by the extent at which Kupier Leda is
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fulfilling and forecasting orders for its customers. Kupier Leda seeks to efficiently maximize its

resources – the target for this goal is efficient use of the just in time method.

Alternative Solutions

Kupier Leda has several alternatives available to achieve its goals. This section of the

analysis will explore alternatives available for Kupier Leda. In some situations, firms realize that

one solution is not going to help them meet their goals. Exploring several opportunities allows

the firm to see if a combination of solutions meets its needs – this is true for Kupier Leda.

Alternatives explored in this section of the analysis includes outsourcing part of

themanufacturing needs,

Analysis of Alternative Solutions

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Risk Assessment and Mitigation Techniques

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Common issues of supply chain management include system integration, vendor

management, management commitment and funds availability (Faisal, Banwet and Shankar,

2006). These issues pose a potential risk to Kuiper Leda’s bottom line. It is important for Kuiper

Leda to incorporate a new system that is linked with its suppliers’ system. The system will work

to and from each warehouse and production center. The system will accurately count on hand

stock and accurately forecast availability of the next shipment. Kuiper will also need to ensure

expectations are clear in the contract with its suppliers.

Change is an inevitable process of growth for any company. In order to remain a

competitive force in any industry it is imperative to establish quality control standards and tools

to measure the effectiveness of the operations. This section of the analysis will describe quality

control tools that Kuiper Leda would need to put in place to ensure the effectiveness of the new

supply chain management. It will also describe performance standards that Kuiper Leda would

need to put in place as well.

The People - Internal

In a business enterprise quality control should be measured in every aspect – from the

people and environment to policies and procedures. Implementing a check and balance system

for the people of the organization will ensure an acceptable amount of quality. For the people of

the enterprise Kuiper Leda can conduct semiannual or annual employee reviews. The employee

reviews will inform all members of the enterprise of strength and opportunity areas within the

processes at every level. Kuiper Leda could also enlist the service of a quality control agency to

measure the quality of outsourced production. The quality control agency objective is ensure that

the companies used for Kuiper Leda’s outsourcing needs are producing quality products. This

would give management an outside perspective of the outsourced operations of its company.
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The Product

There are several quality controls measures specific to the grocery industry. To rate a vast

majority of products in grocery stores most grocers use the quality standard set forth by the

USDA. In addition to these standards Kuiper Leda can implement other measures to ensure the

highest level of quality. For example Kuiper Leda can implement an aged produce policy. The

aged produce policy would prevent the sale of produce that has been on the shelf longer than a

predetermined number of days. This policy would also give individual store managers the

authority to refuse delivery of produce that does not pass an appearance, cost or freshness test.

The People – External

The quality of the people and the product should generally measure the consumer’s

perception of the effectiveness of the operations at Kuiper Leda. To measure the consumers’

response Kuiper Leda can implement a frequent buyer program and consumer satisfaction

surveys. The customer satisfaction surveys could ask questions that speak directly to the

shopping experience, product quality and availability and the likelihood of a return visit.

Optimal Solution

Implementation Plan

Individual distribution warehouse managers are responsible for the operations in each

warehouse. Each department manager is encouraged to check with their counterparts in regards

to delivery, pricing and quality of products. The new supply chain process will require a more

distinct meeting of minds to coordinate delivery and forecast of products. This will ensure

Kuiper Leda minimizes scheduling and delivery costs for various products. All managers must

ensure they evaluate the change in production time and delivery affected by the change. For

example, in its current procedure the supplier ships the raw material to the producation center,
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production centers then ship the products to the clients. In the interest of cost and availability

Kudler must incorporate the time delay or expansion in the new process to prevent possible

bottle necking or an inefficient use of resources.

Evaluation of Results

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Conclusion

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References

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Instructions for the References Section:

List your references here in alphabetical order (by the first author’s last name, or, when there is
no author, the first word of the title). This page is already formatted with hanging indents. Include
only references cited in your paper, and be sure to include every reference cited in your paper.
Most references will be from the University of Phoenix library and should follow the format below.

A Journal Example:

Lee, H. W. (2005). The factors influencing expatriates. Journal of American Academy of

Business, 6(2), 273-279. Retrieved January 29, 2005, from ProQuest database.

A Text Example:

McShane, S. L., & Von Glinow, M. (2004). Organizational behavior: Emerging realities for the

workplace. New York: The McGraw-Hill Companies.

NOTE: List the references in alphabetical order by the author’s last name, NOT the type of
publication. The headings above are to assist you in formatting each type properly.

Please note: When citing University of Phoenix Library databases, you must use the
capitalization and spelling for these databases exactly as they appear in the Library.

For example:

• EBSCOhost database
• ProQuest database
• EIU Viewswire
• InvestText Plus

Delete this box of instructions before submitting your final paper.

 Problem Solution: Kuiper Leda 10

Table 1

Issue and Opportunity Identification

Issue Opportunity Reference to Concept

Specific
Course Concept
(Include citation)
USAuto’s negotiating team did not USAuto can “A distributive Distributive
carefully identify AutoMex’s goals. develop negotiation usually negotiations
USAuto’s goal was to reduce costs intelligence involves a single
through utilizing AutoMex labor. on potential issue—a ‘fixed-
AutoMex, by contrast, viewed USAuto business pie’—in which one
as a source for developing its relations to person gains at the
employees’ skill levels. USAuto’s understand expense of the
negotiating team also approached better others’ other. For example,
entering the Mexican market similarly, goals in haggling over the
unwilling to allow AutoMex access to negotiation price of a rug in a
the hybrid engine for AutoMex’s own settings. bazaar is a
production. distributive
negotiation,”
Both of these distributive approaches (Kinicki &
create win-lose situations and can lead Kreitner, 2003, p.
to conflict, as compared to the win-win 71).
situations created by integrative
negotiations (Kinicki & Kreitner, 2003,
p. 504).

Instructions for Completing Table 1:

Begin by creating a list of the supply chain management concepts from your assigned text,
articles, or other sources. Think about how each concept could have an impact on the current
and future performance of Kuiper Leda. In the context of the scenario, determine how the
concept reflects an issue. Place the issue, and corresponding opportunity, in the table accordingly
in columns 1 and 2. In column 3, identify the concept underlying the issue. Finally, in column 4,
provide a specific citation referencing the concept. See Table 1 for an example from the USAuto
scenario.

Delete this box of instructions before submitting your final paper.

 Problem Solution: Kuiper Leda 11

Table 2

Stakeholder Perspectives

Stakeholder Perspectives

Stakeholder Groups The Interests, Rights, and

Values of Each Group

Instructions for Completing Table 2:

In this table, you will identify the key stakeholders in the Kuiper Leda scenario.

Conflicts can occur when one stakeholder or group of stakeholders has interests, rights,
or values that are at odds with another stakeholder, or group of stakeholders’ interests,
rights, or values. Most situations have at least the potential for conflict. It is important to
identify these potential conflicts, paying particular attention to ethical dilemmas.

Remember that ethical dilemmas come from competing values, both of which are fair
and reasonable. There are a number of values to consider that are at the heart of an
ethical dilemma in a business setting. Some of these are accountability, fairness,
respect, social responsibility, integrity, and honesty.

In column 1, Stakeholder Groups, list the stakeholders found in the Kuiper Leda scenario.

In column 2, The Interests, Rights, and Values of Each Group, identify to the reader the different
interests, rights, or values of each group.

Delete this box of instructions before submitting your final paper.

 Problem Solution: Kuiper Leda 12

Table 3

Analysis of Alternative Solutions

[Click twice on table to change, see instructions on next page. The alternatives and their ratings
as well as the goals and their weightings shown below are for illustrative purposes, you should
enter your own. Delete this paragraph when done.]
Alternative Solution Evaluation Matrix
GOALS

Goal A

Goal B

Etc…
Final
Relative Importance (Weight)==> 1 4 4 Rating
Primary Alternative Solutions
A) FirstAlternative 4 1 2 1. 78
ALTERNATIVE

B) Second Alternative 2. 78
SOLUTIONS

5 4 1
C) Etc… 1 5 4 4. 11
D) -
E) -
Secondary Alternative Solutions
-
-
-

5 = High
4 = Middle to High
SCALE==> 3 = Middle
2 = Low to Middle
1 = Low
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Instructions for Completing Table 3:

When you summarize your alternative solutions in the table, you will be relating the
solutions to your end-state goals and will perform a weighted analysis for each alternative
solution. Paraphrase your alternative solutions and goals so that they easily fit into the
table.

Remember, seldom is there a single "best solution." Secondary alternative solutions

integrate the best of various primary alternative solutions into a "second-order" or "second-
tier" alternative solution. When evaluating alternative solutions, ask:

• How does each alternative solution meet the end-state goals?

• Are there goals that, if not met, would eliminate the alternate solution?

Choose the best two or three alternative solutions for Kuiper Leda. Keep in mind you
should not have more than three secondary solutions.

By clicking twice on Table 3, you will be able to enter your goals, alternative solutions,
and the relative importance (weight) of each. You will only be entering data in the sections
with blue type. Begin by entering your goals and alternative solutions in the table.

To perform the analysis, first weight each goal using the scale of 1 (low) to 5 (high)
importance. The table will automatically calculate the relative weight for you. Then, rate
each alternative solution against each of the goals using the scale of 1 (low, or does not
meet the goal) to 5 (high, or meets the goal very well). In the Final Ratings section (yellow
tint with black font), the table will automatically calculate the final rating for each
alternative.

Delete this box of instructions before submitting your final paper.

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Table 4

Risk Assessment and Mitigation Techniques

Risk Assessment and Mitigation Techniques

Alternative Risks and Consequence and Mitigation Techniques
Solution Probability Severity
• • •
• • •
• • •

• • •
• • •
• • •

• • •
• • •
• • •

Instructions for Completing Table 4:

In this table, list the two or three remaining alternatives in column 1. List the potential risks of
each alternative in column 2 followed by the probability of occurrence as rated by high, medium,
or low. In column 3, evaluate each alternative for the consequences if the risk occurs, and if the
risk were to occur, the expected severity to Kuiper Leda. Part of benchmarking is to mitigate
potential risks based on best practices used by real companies. Finally, in column 4 identify any
risk mitigation techniques that can be used to alleviate or neutralize the possible consequences
of the risk.

Delete this box of instructions before submitting your final paper.

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Table 5

Optimal Solution Implementation Plan

Deliverable Timeline Who is Responsible

Instructions for Completing Table 5:

In Table 5, you will consider the steps companies go through to implement a solution.

• In column 1 (Deliverable), identify major deliverables.

• In column 2 (Timeline), develop a timeline.
• In column 3 (Who is Responsible), determine who is responsible for each major
deliverable.

Delete this box of instructions before submitting your final paper.

 Problem Solution: Kuiper Leda 16

Table 6

Evaluation of Results

End-State Goals Metrics Target

Instructions for Completing Table 6:

Think about the specific goals that will let you know that you have achieved the end-state vision.
These are your end-state goals. In this scenario, think about end-state goals relative to the
supply chain management concepts. From these goals, you will create both metrics
(measurements) and targets (specific levels to be achieved).

Example from USAuto:

If an End-State Vision is  USAuto will be adept at multinational negotiations
Your End-State Goal is  Provide business intelligence to management
Your Metric is  Number of business reviews
Your Target is  Two reviews per quarter beginning 9/1

Identify a minimum of three end-state goals, metrics, and targets. Be sure to make your goals
SMART: Specific, Measurable, Attainable, Realistic, and Timely.