Gap analysis is a very effective tool in reaching the benchmark the company or any organization wants to attain. It very effectively enables the functional company to assess its present performance with the performance it has the power to deliver. It has two very important objectives. One is where the company stands presently and second is where the company exactly wants to be. This rectifies their mistakes, paces up their activity in utilizing the resources to the fullest and attaining the place they desire to be.
Gap analysis is done by every company to analyze their present position and the position they want to achieve. This is the mantra for a successful working of a company. Likewise gap analysis is carried for Kuiper Leda that holds the expertise in the manufacture of Electronic Control Units (ECUs). Its clientele includes automobile manufacturers and OEMs. Kuiper has ventured into the line of Radio Frequency Identification Devices. Kuiper has managed to build a quite strong bond with its customers in a very short period of time and is quite well known for its well built reputation with its customers due to its quality of work and effective responsiveness. Kuiper tries its level best to improve the repeat orders and relation with its suppliers. The company side by side has to be quite vigilant of its competitors that always exist side by side. As Kuiper has a quite vast scale of operation it has to be extra cautious regarding the capacity management and delivery. Since the last two months there has been an increase in the demands which has raised the overload supply chain. The uniformity in the production has also shaken and the suppliers are trying to meet the demands.
Kuiper to maintain its benchmark and its position among the clientele and competitors has to be more responsive towards the increasing demands so that the plant or the suppliers are not affected much. The recent overload has made to change the strategies of Kuiper as it was making the supply chain to dwindle. Kuiper presently makes use of the Material Requirements Planning software system which is a software-based production planning and inventory control system. It very effectively manages the manufacturing processes. It helps to ensure that proper material and genuine products are all time available to customers. It also plans the manufacturing activities, schedules of delivery and activities pertaining to purchasing. MRPs proper utility will help Kuiper to manage its inventory very effectively and deal with its related issues very promptly. A proper reputed company always maintains its position when it serves to compete in the current marketplace by working on such strategies that is well aligned with its motto of serving and rendering to the demands and desires of the customers. The profitable and efficient sourcing options of Kuiper include manufacturing of products in –house, buying of the entire product or the key components from some other manufacturer, being into contract manufacturing and e-business portal.
Like any other successful and aggressive enterprise Kuiper Leda Inc has its targets set in place. It has been very particular about its growth, market position and above average returns etc. In order to meet its goals and attract new customers an effective supply chain strategy and proficient operations have been established. Although Kuiper Leda’s supply chain defense is not that huge and established but still it is known as a highly competitive manufacturer and is famous for its outstanding customer service in addition to quick delivery reaction. It is very important that the supply chain managers and the management should be keen in leveraging new information and efficient communication technologies to jell well with the environment which Kuiper Leda has set .Moreover corporative inter-organizational relationships should be established to meet the international market standards. In order to boost company’s performance it is imperative that effective re-designing and implementation of Kuiper Leda Inc so that profitability can be further augmented. Receiving orders of thousands of Electronic Control Units (ECU) and Radio Frequency Identification Device (RFID) tags is above its existing capacity level and for this the company has to have the panorama to develop a plan which could increase its limitation of current capacity and even make its reputation more strong in the industry Chase, Jacobs & Aquilano, 2006). The future outlook of every established organization especially the operation management sector is to satisfy current and future demands .As it is a proven fact that balance between capacity and demand leads to generation of high profits and satisfied customers. Planning and controlling capacity is an important factor and for that not only the operation management but functional managers should also be involved. Kuiper Leda has sensed out its flaws and is working towards its betterment. Kuiper Leda currently is facing the issues with its Inventory Management planning and wants it to be in place so that it’s able to handle extended demands of both stock and production. The inventory management plan would help it to consider the forecast error, the client’s required service levels and collective lead time taken for manufacturing each unit and priority of demand. The challenges like based management, stakeholders and increased production capacity expansion are being faced by the company. In order to increase the production it is important to adopt a new business strategy which would comprise of implementation of an effective inventory management system, forecasting future sales in a better way, outsourcing the components’ production, reduction in its supply chain and formation of an overseas central distribution center. The problem which the company is facing has erupted mainly because of the increase in the customer base. Deep analysis has even proven that poor and ineffective inventory and production plan is also operating which needs to be revived to meet the targets. It seems insufficient in its capacity to fulfill the order by manufacturing both products internally (Chase, Jacobs & Aquilano, 2006). If the company is really thinking of taking order above its regular orders then it is imperative that the company should assess its inventory management, the effects which the inventory will have on cash and cost of goods, devising and implementation of effective business decisions regarding the components of the supply chain, focusing bottlenecks affects on capacity, and the linkage between forecasting and just-in-time concepts, moreover considering the stakeholders in the scenario. Creation of a comprehensive plan of implementation and measurement is very important to bridge the gap between the entity’s current doings and what steps it needs to take to ensure complete success in the future. The raw materials have to be completely controlled and enhancements to the inventory and the ordering process have to be made so as to reduce costs and relevant information is provided to meet the other business decisions. Certain measures and metrics have to be adopted so that company’s production capacity can be made more effective and for that the company will need to manufacture at a particular rate every week. Over production and under stock production has to be avoided at every level. As in both situations problems of bottlenecks and holding costs are likely to trigger. As Kuiper has several product lines it has to manage its various types of inventory well and should be analyzed at all four levels which are management, regional, divisional and plant level. If the company wants to see itself doing really well in the future then it has to rely on its forecasting models and statistical analysis in which to initiate supply chain decisions. Utilizing the JIT concept is also very important for Kuiper as it would be able to determine how materials should be processes and moved in order to arrive in time for the subsequent function. Total cost of ownership procedure is also very important as this would benefit in full evaluation and assessment of initial purchases, maintenance, operational and disposal costs for Kuiper. Tracking of demand, supply, logistics, distribution etc has to be done at every step so as to avoid any potential damage or loss. If Kuiper is going to continue with its current MRP system and utilize it to its optimal capacity then value is likely to be maximized for its end customer. A strong defense mechanism for its plans can be developed for outsourcing portions of its product line as it would allow reduction in the in-house storage costs and customer satisfaction as they would get the delivery on time. It is always the ability to forecast the customer demand well as it would be most beneficial in making Kuiper profitable and building strong reputation even with suppliers as a trustworthy and reliable partner.
Chase, R.B., Jacobs, R.F., Aquilano, N.J. (2006). Operations Management for Competitive Advantage.
Chase, Richard B., Jacobs, Robert F., Aquilano, Nicholas J. Operations Management for Competitive Advantage.11th ed. (2006), pp 16, 24, 408