Kuiper Leda: Gap Analysis

Running head: GAP ANALYSIS: KUIPER LEDA

Gap Analysis: Kuiper Leda

Herb Spalla

MBA 550

University of Phoenix

April 16, 2007

Gap Analysis: Kuiper Leda

Inventory management is the planning and controlling of a companies inventory starting with the raw material stages and ending with the delivery of a completed product. It is important that production schedules can be efficiently ran in order to keep commitments to customers. Often time's companies need to manage various types of inventory in a way that will optimize inventory while enabling them to remain competitive. Through e-Commerce and e-Supply Chain activities companies are able to reduce cycle time and costs.

Kuiper Leda, Inc. is an electronic components manufacturer that specializes in the production of Electronic Control Units (Ecru's) and sensors for the automotive industry. Its clients include automobile manufacturers and Original Equipment Manufactures (OEMs) for the automotive industry. The company has recently added another product, The Radio Frequency Identification Device (RFID) Tags. Kuiper Leda believes in constantly upgrading their existing technological infrastructure. Currently they are looking at several technology-based options to optimize key elements.

Situation Analysis

Issue and Opportunity Identification

There are a few different issues and opportunities available to Kuiper Leda. The company received an order for 250,000 ECU's and 35,000 RFID tags. A minimum order has to be delivered every month. The first think is that Kuiper Leda needs to find a way to supply higher volumes over its regular orders. The company needs to decide whether or not to manufacture the products in house or if it would be better to outsource either partially or completely.

The next issue is to develop an Inventory Management Plan for handling the requirement of Microchips. The microchips are partly outsourced and partly manufactured in-house. The plan will need to be able to forecast error, service levels required by the client, cumulative lead time for manufacturing eacy unit or a batch of the product, and priority of demand. Kuiper Leda follows Materials Requirement Planning for Electronic Control Units, which is phased throught the Master Production Schedule.

The next topic is developing an alternate distribution strategy. Kuiper Leda has grown over the last two years; they have acquired a strong base of international customers. The company has plans to redo the distribution system. The company has five major customers in the US and expects to capture a large portion of the market for ECUs in the US.

End-State Vision

Inventory Management requires effective planning, forecasting, and organizing. Through Inventory Management Kuiper Leda will continue to grow steadily increasing not only their inventory but their customers as well.

Gap