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Kuiper Leda

Submitted by metalthoughts on March 9, 2008

Category: Business
Words: 1603 | Pages: 7
Views: 560
Popularity Rank: 14,235
Average Member Grade: N/A (Add a Comment / Grade this Paper)

Running head: GAP ANALYSIS: KUIPER LEDA









Gap Analysis: Kuiper Leda

Gap Analysis: Kuiper Leda
Kuiper Leda Incorporated (KL) is a company that manufactures Electronic Control Units (ECU’s) as well as Radio Frequency Identification Device (RFID Tags) for the automobile industry. Currently, they are a relatively small company that focuses on quality of their product and delivery responsiveness. Because of this, Midland Motors, a well-known large company, has chosen KL as a supplier for all of their ECU’s and RFID Tags. Midland Motors has signed a year-long contract with KL for 250,000 ECU’s and 35,000 RFID Tags to be evenly distributed in the upcoming year. Since Midland Motor’s order exceeds KL’s daily capacity, KL must now organize their structure to increase capacity and/or decide whether it’s better to outsource part or all of the component needed.
Situation Analysis
Issue and Opportunity Identification
Midland Motors is a large company that keeps close, long-lasting relationships with their vendors; it would be a devastating decision to turn their order down. After accepting Midland’s order, KL is first faced with the decision to manufacture everything in house or to outsource in order to meet their demand. A huge issue is the lack of a structured process. With an order this important, both financially and publicly, KL needs to develop a system that will allow them to intake orders from other customers as well as meet the daily/weekly output of ECU’s and RFID Tags for Midland Motors.
The next decision would be to create and implement an inventory system that will allow KL to track their inventory from when it arrives at the door to the point of shipment to the client. Currently, KL has no set system and has high holding costs for their inventory.
This is an excellent time for KL to look into implementing a Just In Time (JIT)...

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