The idea is to produce far fewer rejects. Likewise, keeping the ability to respond quickly to customer needs assists in maintaining customer loyalty.
In Japan raw material cost is twice as much high as in America. Reducing WIP and thus carried inventory would certainly be useful to reduce carrying costs.
It needs to follow pull strategy for of raw materials in production line. ACC finance teams were also not allowing funds to upgrade their technology.
Statistical Process Control and Design for Experimentation, if implemented to the Six Sigma level, has the capability of reducing error to an average of 3. Assuming that he is following the DJC model, we would have at least a product planning group and a materials planning group.
Flawless raw material needs no testing and adoption of stringent standards for raw material eliminated the trouble to check every batch of raw materials. Further to this ACC organizational hierarchy was more inclined towards marketing and engineering teams and lesser stress on production team which was different in case of DJC which had equal stress on the production team; this was a motivational factor for increase in productivity.
This would also affect the efficiency of the operations. ACC needs to follow similar model for operations set up in the organisation to promote production oriented structure and greater balance.
The mere existence of specialized groups would not maximally enhance the overall manufacturing process unless their objective also included a mandate to share information and integrate discoveries. The location of the company which played a equally important role for eliminating transportations and logistic baggage.
We suggest that these savings will far outweigh any savings from financing a reasonable inventory. The terminal plating area is bordered by a holding area on each side.
DJC seeks to so refine manufacturing that very few defective pieces are created. Plastic housing manufacture proceeds most swiftly and accumulated WIP has to be delivered to a holding area to await plating of the fabricated electrodes to catch up in order that all components can be delivered to the assembly area.
We would immediately achieve a 2. DJC maintained low raw material inventory, where they ordered the raw materials as per requirement and pull strategy for manufacturing. Perhaps the efficiencies gained by removing the disruption of assembling custom products amid standard runs will increase productivity and minimize any additional hiring.American Connector Company 1.
AMERICAN CONNECTOR COMPANY CASE STUDY XIMB students’ presentation 2. A Brief Comparison 2 ACC Quality and Customization Design and Performance 52% to 43% decrease in gross margin from DJC Highly efficient manufacturing Attention to customer needs No customization Never. threat of djc to american connector company Mr.
Larsen, VP of ACC believes the plant at Sunnyvale is struggling with operating problems including deteriorating quality and increased cost. With better manufacturing methods and superior quality, DJC would be able to snatch some portion of ACC’s market share. I make the initial observation that all of Mr - American Connector Case introduction.
Li’s suggestions must be viewed in light of the fact that we do not currently know what type of facility that DJC may construct, or indeed if it will construct any facility at all.
This uncertainty may have consequences. Unlike DJC. tant implication for company leaders: companies that fail to exploit fully the The Case of Australian Paper Manufacturers Consider, for example, the case of Australian Paper Manufacturers.^ In the home base of giant American Airlines.
During the s, Southwest grew steadily and, after the deregulation of the airline industry, began to. American connector company supply chain 1. American Connector Company Case Study Submitted by: Group 5 Shruti Mittal 13DM Sonakshi Govil 13DM Sreevatsan Natarajan 13DM Tarun Mangal 13DM Udit.
AMERICAN CONNECTOR COMPANY CASE STUDY Q1 How serious is the threat of DJC to American Connector Company?Answer - The threat of DJC to American Connector Company is very high.
Following are the reasons: Ø If DJC sets up manufacturing base in USA, as per the exhibit 7 and exhibit 8 the raw material cost for.Download