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Printed Circuits Components for a JIT Factory
1. Major Facts
? Acacia is a major producer of graphic plotters
? Marketing forecast estimated annual volume to exceed 60,000 units
? Management determined that the newest unit, 440A, is an excellent choice for JIT process
? Supply Managers w/ technical backgrounds were assigned new product development
? Suppliers were requested to use bar-coded labels for inventory and kitting purposes
? Delivery for most JIT parts = 1 week (instead of usual monthly delivery)
? Parts considered for outsourcing = 4 integrated circuits (IC’s), 7 diodes, 3 transistors
? Monitor Inc selected as single-source for 14 PC components
? During the production process, Monitor was not able to comply w/ JIT requirements
? Monitor-supplied components were mislabeled, out of spec and often behind schedule
? 5 diodes can not be resourced, Monitor is the sole manufacturer
? 2 alternate suppliers have been identified; capable of supplying 4 IC’s and 3 transistors
? Alternate suppliers equipped to have deliveries ready in approx. 1 month
? Alternate suppliers’ costs are 10% higher than Monitor, Inc.
2. Major Problems
? Monitor Inc has struggled to meet required specifications and has not delivered shipments on time. (MAJOR PROBLEM)
? Management realized that Monitor’s focus was on high-volume production.
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