1 / 10

HP DeskJet Case: Background

HP DeskJet Case: Background. High volume, high speed manufacturing in Vancouver Many different models, all completed in Vancouver Three distribution centers North American Asian European Manufacturing time one week Transportation lead times: Europe: 4-5 weeks US

kristen-dotson
Télécharger la présentation

HP DeskJet Case: Background

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. HP DeskJet Case: Background • High volume, high speed manufacturing in Vancouver • Many different models, all completed in Vancouver • Three distribution centers • North American • Asian • European • Manufacturing time one week • Transportation lead times: • Europe: 4-5 weeks • US • At distribution centers, simple standardized process

  2. HP DeskJet Case: Analysis • Problems • High inventory levels • Inventory imbalance in Europe • Causes • Uncertainty about correct inventory levels • Many geographic options (localization) • Long lead times • Uncertain market • Difficulty at getting divisions to work together • What are HP’s options?

  3. HP DeskJet Case: Options • Short Term • Rationalize safety stock • Long Term • Air shipment • European factory • More inventory • Better forecasting • DC localization

  4. Safety Stock Rationalization:Example Europe AB • Recall: Safety Stock = z  STD * LT

  5. Evaluating Alternatives • Air Shipment -- Expensive • European Factory -- Not sufficient volume • Better Forecasting -- How? • More Inventory -- More problems • DC Localization -- What will savings be?

  6. Evaluating DC Localization • In DC localization, risk pooling can be used to reduce total inventory while maintaining service levels • To evaluate inventory, compare total safety stock held if individual localized units are held in inventory or if generic units are held • Other costs must also be evaluated

  7. Evaluating DC Localization

  8. DC Localization • Safety Stock Reduction • Current 19,089 units (3.55 weeks) • With localization 12,792 units (2.4 weeks) • Other benefits • Lower value of transit inventory • Freight reductions • Local presence of “manufacturing” • Customs implications • Local procurement of localization materials • But there are costs • Product redesign • DC modifications

  9. Implementation • R&D Support • “The product is working, so why bother?” • DC Support • “Not our core competency” • New packaging • Capital investment

  10. Results • Successful implementation • Millions saved • Service levels increased • Packaging won awards • Best practice spread to other HP divisions

More Related