Questions on Operations Management in Hewlett Packard Essay

Why did the Europe division of HP require in order to keep satisfactory merchandise handiness?

Answer 1: The European distribution centre of HP demanded higher supply and stock list to pull off satisfactory merchandise handiness because of the worsening gross revenues of HP pressmans in the European market. The ground was inaccessibility of merchandise at the European DC.

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What did David Arkadia say in respect to stock list? What were the two chief issues Brent saw in carry throughing this?

Answer 2: David Arkadia was the stuffs director at the Vancouver division he put his position of group direction in a meeting and said that the universe is falling from the corporate and their concern can non last the market in the absence of productive assets of the company and clients ‘ demands can non be fulfilled with such sort of fewer stock lists. If done so so it will be impossible for the company to run concern.

Brant looked into the affair and he identified two chief issues. First issue is to happen out a manner to fulfill clients ‘ demands by doing them merchandises available even with minimized stock list. The 2nd issue was to do other parties agree that the degree of stock list was right in the company.

Question3: What is the trade off in Brent ‘s first chief issue?

Answer 3: Brant ‘s first issue creates a trade off between fulfilling clients ‘ demands and minimum stock list. Customers ‘ demand may alter really often and to carry through those demands the stock list has to be big.

Question 4: Concerning Brent ‘s 2nd issue, what is the contradiction he mentioned refering the European Distribution Center?

Answer 4: The gross revenues director of the European DC has reported several times that the DC is running out stock so the 2nd issue of Brent is beliing the state of affairs of European DC.

Question 5: How was HP organized?

Answer 5: Two mastermind heads William Hewlett and David Packard established a company named Hewlett-Packard in 1939. Headquarterss of the company was in Palo Alto, California. The concern of HP was ranged from electronic trial and measuring equipments to computing machines and computing machine accoutrement merchandises. In the past 50 old ages the company has grown at a steady gait and boulder clay 1990 the operations count was more than 50. It had two basic groups to form the company: The merchandise group and the map group. The merchandise group had six sections of which the peripheral group was the 2nd largest group. The other sections of the merchandise group were pressmans, schemers, magnetic discs and thrusts and web merchandises. The public presentation of the merchandise division was increased by inventions in the engineering. These inventions has contributed in the success of the company by availing market chances productively.

Question 6: What did clients detect about ink-jet print quality?

Before 1990 clients were incognizant of the ink jet publishing engineering and when the came to cognize about it they discovered that the printing quality of ink jet pressman is every bit good as the printing of optical maser jet pressman and that excessively at much more inexpensive monetary value and the gross revenues of ink jet pressmans drastically increased.

Question 7: What does the Vancouver division precisely make? What happened between 1982 and 1985 to the divisions?

Answer 7: The Vancouver division of HP was established in 1979 in Vancouver, Washington. The division was established because of the new emerging chances for personal pressmans in the personal computing machine market. Personal pressman activities from the four division of HP ( Fort Collins, Colorado: Boise, Idaho: Sunnyvale, California: and Corvallis, Oregon ) were merged and shifted to Vancouver. This new division at Vancouver became a portion of HP peripheral merchandise group and was dedicated for planing and fabrication of ink-jet pressmans. The direction staff from all over HP was selected and dropped at the Vancouver division which enabled executing of new thoughts in the divisions. Between 1982 and 1985 executives from all over the organisation and outside the organisation visited the kanban procedure of fabrication at the Vancouver division. The visitants were impressed by the fast pressman fabrication procedure.

Question 8: What is the Difference between PCAT and FAT and who supplies their constituents?

Answer 8: Desk jet pressmans were manufactured at the Vancouver division of HP. PCAT and FAT were the two major stairss of the fabricating procedure of pressmans. Assembly and proving of electronic constituents like ASIC ( Application Specific Integration Circuits ) , natural printed circuit boards, and ROM ( Read Merely Memory ) was done in PCAT ( Printed Circuit Board Assembly and Test ) procedure whereas assembly of other bomber merchandises and accoutrements like motors, overseas telegrams, fictile human body, cogwheels, computer keyboard and printed circuit assembly was done in FAT procedure of fabrication.

Raw printed circuit boards for logic boards and print caput driver boards of the pressmans were made in the PCAT procedure whereas assembly for concluding merchandise pressman and concluding testing was done in FAT procedure. The FAT procedure was the following measure of the PCAT procedure of fabrication. PCAT was a pre necessity for the FAT procedure as the merchandise from PCAT were assembled for the concluding working pressman. The constituents for both the procedures were supplied from other divisions of HP and some external providers every bit good.

Question 9: Look at figure 11.1, how is this related what you have learnt in the category ( can you place providers, makers and DCs ) ?

Answer 9: Figure 11.1 is the diagram of supply concatenation at the Vancouver division of HP. The supply concatenation of a company involves assorted links harmonizing to the demands of the concern. The supply concatenation of Desk jet pressmans is a concatenation of providers, fabrication sites, distribution centres, traders and clients of the pressmans. The providers are the subordinates of the company or some external houses which used to provide natural stuff for the production of coveted merchandise or a supplement merchandise. In the instance of desk jet printers the providers are either other divisions of HP or some external providers from all over the universe. The maker is the unit where utilizing the natural stuff concluding merchandise is developed through assorted procedures. Vancouver division is the maker of desk jet pressmans where the pressmans are manufactured via different procedures like PCAT and FAT. After the merchandise is manufactured it is sent to assorted distribution centres from where the merchandise is supplied to the clients. The desk jet pressmans of HP were distributed to three locations worldwide: North America, Europe and Asia Pacific.

Question 10: What is Localization at HP?

Answer 10: Localization is procedure at HP in which the pressmans are customized harmonizing to the demands of different states. HP pressmans are supplied worldwide from the distribution centre so the certain characteristics of the pressmans need to be changed harmonizing to the demands of those states. Like the manual of the pressman should be made in appropriate linguistic communication, seting appropriate power supply faculty harmonizing to the demands because the electromotive force demands and power cord eradicators may change from state to state. Localization besides involves the concluding assembly and trial procedure of the pressmans at the mill. The localisation procedure prepares the concluding merchandise destined to different states.

Question 12: How did HP direction decided to run the DCs? What was the mark stock list with regard to the prognosiss? Is it a pull or push system, explicate?

Answer 12: Because of the increased force per unit area for improve degree of handiness of pressmans at the distribution centres for the retail merchants the direction decided to run the distribution centres in a brand to stock manner. In this method the demand of pressmans was forecasted and production was made harmonizing to that prognosis. The mark stock lists of the three distribution centres were set to some extra safety stock other than the forecasted gross revenues. To guarantee the handiness of stuff at stock lists safety stocks were besides setup at mills. The distribution channels were operated in the push manner.

Question 13: What did the long lead clip in cargo between North America and Europe/Asia cause?

Answer 13: The concluding merchandise, pressman were shipped from Vancouver to the distribution channels via ocean. Therefore at that place used to be a hold in cargo to the European and Asiatic distribution channels. Because of the hold in the cargo these distributions centres were non able to react to the often altering demands of the clients in those parts. The fluctuation in the demand was majorly in the different versions of the merchandise. So to supply high handiness of merchandises those distribution centres had to pull off heavy safety stocks. The North American distribution channel did non hold to make any major alterations as the version which was in heavy demand in the part was the US version of the pressmans. So the North American distribution centre had less fluctuation in the localisation mix.

Question 14: What has your group learnt about BOM and Safety Stock?

BOM is the list of assemblies, natural stuffs, and constituents of the concluding merchandise. Safety Stock is the buffer of merchandises kept at the stock list of distribution centres. The safety stocks are helpful in cut downing the hazard of dog-tired stocks due to fluctuating demands.

Question 15: At the terminal of the instance, what options does Brent hold? Justify which option should Brent travel with?

Answer 15: At the terminal of the instance Brent had several options in head about stock list direction other operational issues. Following are the issues proposed by different group of people:

Puting up an surrogate works in Europe was the first option that was being talked about in the company. He liked the thought a new works in Europe as it would work out the job of stock list direction and service in the part.

Another program was to increase the stock list in the two Distribution centres. Peoples advocated the idea because the cost of stock list does non consequence the P & A ; L statements of the company but worsening gross revenues do impact the grosss of the company.

A traffic supervisor suggested that alternatively of utilizing ocean for cargos of merchandise from maker to distribution channels usage of air lading will be a better option. As the aims higher handiness of merchandises and lower stock list can be achieved by passing a few excess dollars on transit of merchandise.

Brent had another option of work outing the root of the job that is the hapless prediction system of the company. Harmonizing to this attack the system of the company can be improved by utilizing Box-Jenkins method.

Brant should travel with the last option of altering the system by bettering the prediction methods of the company. All the other methods do non supply a significant solution to the job. This attack will assist in acquiring to the root of the job which will be a better solution to the job.


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