...Summary Brent Cartier, Manager for Special Projects in the Materials Department of HP Vancouver Division. Bob Foucoult, production manager. Dr. Billy, inventory expert from Corporate HP. Laura Rock, an industrial engineer. Jim Bailey, the planning supervisor. Jose Fernandez, the purchasing supervisor. Kay Johnson, the traffic department supervisor. HP company was founded in 1939 by William Hewlett and David Packard. During 1980s HP and Canon separately pioneered inkjet technology at their respective corporate laboratories. HP led the inkjet market in the US, while Canon led the market in Japan. European competitors included Epson, Manisman-Tally, Siemens’ and Olivetti. Inkjet printers were rapidly becoming commodity products. The end customer, choosing between two inkjet printers of equal speed and print quality, increasingly used general business criteria such as cost, reliability, quality and availability to decide. Product loyalty continued to decrease. In Vancouver Division, the manufacturing organization realized early on that a fast, high-volume process would be required for success in the printer market. With the current(1979) 8-12 week cycle time and 3.5 months of inventory, it would be doomed to fail. From 1982, Vancouver Division had converted the factory to stockless production and had reduced inventory from 3.5 months to 0.9 months, with a drastic reduction in cycle time. The network of suppliers, manufacturing sites, distribution centers(DCs), dealers and customers...
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...1. SITUATIONAL ANALYSIS Market & the Product Hewlett-Packard (HP) Company was founded in 1939 with headquarters at Palo Alta, California. The Peripherals Group was the 2nd largest of HP’s 6 product groups. Its revenues during 1990 stood at $4.1 billion. The Peripherals Group had set technological standards in inkjet printers. This was mainly due to the sale of HP DeskJet printers. The Vancouver division located in Washington was established in 1979. HP consolidated designing and manufacturing of its inkjet printers to its Vancouver site. The inkjet printer market was characterized by its competitiveness and rapidly expanding nature especially in Europe. Value Chain Manufacturing was based out of a single unit located in Vancouver. There are two main stages in the manufacturing process, PCAT (Printed circuit assembly and test) and FAT (Final Assembly and Test). Production was based on Kanban concept. Production unit did not carry inventory but functioned only to replenish stocks at Distribution centers. Supply variability was minimal due to Kanban and safety stocks. Stocks produced at the Vanucouver unit were shipped to distribution centers in North America, Europe and Asia Pacific. The entire supply chain process involved 1 week of factory cycle time. For transportation to places within the US, it took an additional day whereas for orders outside the US (Europe and Asia), there was additional 4-5 weeks due to ocean transit and time to clear customs and duties...
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...COMPANY: NETWORK PRINTER DESIGN FOR UNIVERSALITY EXECUTIVE SUMMARY The Hewlett Packard Company (HP) was one of Silicon Valley’s legends. HP is diversified into many product lines. Its key competitive advantage is “Technology Innovation”. This case is about the laser printer of HP. HP tried to develop the latest new laser printer, which is network printer and managers from each department had a meeting to discuss about whether using a universal power supply for the next generation of network laser printer called “Rainbow” is beneficial or not. The major customers of laser printers are in North America and European countries, which use different power supply voltage. The laser printers are produced at HP’s manufacturing partner in Japan, which monopoly controls the key components. Since the lead time is almost 14 weeks, HP has to plan at least 14 weeks ahead. Therefore, this method does not respond to the changing in demand and it is not flexible for HP to deal with demand uncertainty. Consequently, the production team believes that a universal power supply can enable HP to respond to the changing demand. The following images show the comparison between the flow of the current laser printer and the network printer. With the universal power supply, the network printer cost increases around $30 per unit. HP has to outweigh the benefit and cost of using power supply. Consequently, the managers from each department discussed and provided their...
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...Case: Hewlett – Packard – Supplying The DeskJet Printer in Europe Sales of DeskJet printer have grown steadily, now reaching a level of over 600,000. Unfortunately, inventory growth has tracked sales growth closely. HP’s distribution centers are filled with pallets of the DeskJet printer. The organization claims that inventory levels are need to be raised even further to maintain satisfactory product availability. The DeskJet Supply Chain HP in Vancouver does manufacturing. There are two key stages in manufacturing process: (1) printed circuit assembly and test (PCAT) and (2) final assembly and test (FAT). PCAT involves the assembly and testing of electronic components (like integrated circuits, read-only memories, and raw printed circuit boards) to make logic boards used in printer. FAT involves the assembly of other subassemblies (like motors, cables, keypads, plastic chassis, gears, and the printed circuit assemblies from PCAT) to produce a working printer, as well as the final testing of the printer. The components needed for PCAT and FAT are sourced from other HP divisions as well as from external suppliers worldwide. Selling the DeskJet requires “localization”, customize printer to meet the language and power supply of the local countries. It involves assembling the appropriate power supply module, which reflects the correct voltage requirements (110 or 220) and power cord plug, and packaging it with the working printer and a manual written in the appropriate language...
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...MAC 600 Business Management and Governance 3rd Trimester – AY 2013-2014 CASE ANALYSIS Hewlett-Packard Under Carly Fiorina and After Her Submitted by: Chris L. Espina Date of Submission: May 17, 2014 I. Perspective held by the Students This case talks about the management and leadership of Carly Fiorina, the chosen CEO of HP after her long years with AT&T and Lucent Technologies. She was known to be a woman of “silver tongue and iron will”. She dropped out of law school and pursued for Business Administration and Marketing Career and found herself successful in the field of sales and marketing, thus paving her way to be a top choice for the chief executive position of Hewlett-Packard. The perspective taken in this analysis was on Carly Fiorina. It is then to be assessed, her actions and decisions made for the company and how did it affect in the entity’s performance. Recognition of elements and factors were done regarding on the negative effects of the actions she took for HP, that made her lose her credibility in the company and resulted to her resignation from the position she was handling. II. Case Facts Hewlett-Packard is known to be the second largest computer maker in the world. In 1999, the company hired Carly Fiorina to be its Chief Executive Officer, who is the first outsider who ever filled a top position in the company for the past 60 years. She was a student of philosophy, medieval history and marketing. With her skills in sales...
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...of the case, it states three alternative ways for HP to continue the business in tape drive, outsource the final assembly, develop a lowest total cost supply chain, join forces with a competitor and outsource the final assembly. HP, as a major computing and imaging solutions company, had many different service departments, such as imaging and printing systems, computing systems, IT services, and other business. The tape drive belonged to the computing systems. The reason for HP still wanted to keep the tape drive business was, as the supply chain manager, Gary, described, there still existed huge potential demand for tape. Gary assumed the consumer would keep requiring large information from the Internet so that the storage business would keep growing till 2007. Gary knew that in the high competitive market required HP to keep a low cost with a high volume to obtain a high profit and margin. HP had become the leader in tape drive business in the medium segment market for a long time and new technology had been introduced to the market and HP wanted to be a strong competitor in the new tech market. While, since HP did not have special technology and expertise as well as enough space, HP could not do the business in-house. On the other hand, HP sold its products to reseller and OEM, these two sources then sell products to consumers. HP had a good delivery system and delivered products on time to the OEM. In 1997, due to the high overhead cost in HP in house production, HP outsourced...
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...After carefully reviewing the letter from Executive Director William Patterson, of CtW Investment Group, addressed to Hewlett-Packard’s (HP) Lead Director and Corporate Governance Committee Chairman Rajiv Gupta, I have discovered many new items I was not previously aware of. This well thought and precisely constructed letter clearly addresses the issues and concerns felt by a majority of HP’s shareholders following the news regarding the recent $8 billion of impairment charges. If I were a stockholder of HP, I would be equally as concerned and would question the judgment of upper management and the board of directors. When an impairment charge of $8 billion comes out one must simply question the accounting that was going on behind the scenes, and ask why this came out of the blue so suddenly. In HP’s case, Ernst & Young (E&Y) have been their independent auditors since 2000. This was before Sarbanes-Oxley (SOX) was in effect. E&Y’s questionable behavior lies in the amount of non-audit related fees charged to HP. The whole point of SOX was to keep auditors independent of their clients by eliminating the connection between consulting and auditing the same client. When these two items go together, that true sense of independence is impaired. In any case, E&Y is under scrutiny because as being HP’s independent auditor and missing such a huge charge of impairment, one must investigate the accounting leading up to that point. When exaiming HP’s proxy statement...
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...Hewlett-Packard Company as known is a successful technologic company. From the year 2011, Hewlett-Packard Company fired its former CEO, and then in year 2013, the chairman is stepping down. Those movements influenced the company, what kind strategies the new CEO will use and how the new board will lead the company. The shareholders are looking for a better profit and according to Hewlett-Packard Company case, we want to know that the strength and weakness about Hewlett-Packard Company. Through the analysis and evaluation, we can see Hewlett-Packard Company is or not worth to buy out. Bill Hewlett and Dave Packard found Hewlett-Packard Company in 1939. Bill Hewlett and Dave Packard graduated from Stanford University, and its first product was an audio oscillator, which was built in a garage in Palo Alto. ("HP history") With their initial investment, which was a little over $500, they started their small electronics-manufacturing corporation. At the beginning, the company did not focus on any specific product; instead it produced general needs of industry. From 1950s, to 1990s, Hewlett-Packards tried to narrow its scope of business. It started to focus on test equipment for electronics. This series of test grew including accessories, software, and parallel products. In late 1950s’, Hewlett-Packard Company started to produce the computer and technological hardware and services. In year 1961, Hewlett-Packard Company shares were listed on the New York Stock Exchange. In 1970s’...
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...CASE REPORT | Hewlett-Packard Company | Desktop Printer Supply Chain | | | | | SUBMITTED BY Allada Prasanth (1211087) Ishan Puri (1211100) Manish Pathak (1211113) Priyanka singh(1211126) Sarang Bhawre (1211139) Tarun Gopalkrishnan(1211152) INTRODUCTION: Hewlett-Packard (HP) Company was founded in 1939 with headquarters at Palo Alta, California. It grew steadily over the next fifty years, diversifying from its base in electronic test and measurement equipment into computers and peripherals products which now dominated their sales. The Peripherals Group was the second largest of HP’s six product groups, with 1990 revenue of $4.1 billion. The Peripherals Group had set technological standards such as disposable heads in inkjet printers. This report is with reference to the DeskJet Printer division of HP. HP DeskJet printers’ value chain comprised of four nodes (a) Suppliers (b) Manufacturing (c) Distribution centers and (d) Dealers. There were two key stages in the manufacturing process as shown below in the figure: 1. PCAT – printed circuit assembly and test 2. FAT – final assembly and test Figure 1. The Vancouver Supply Chain Manufacturing was based out of a single unit located in Vancouver (USA). Production unit maintained adequate safety stocks for raw materials. Production was based on Kanban concept. Production unit did not carry inventory and functioned on made to order scheme to replenish stocks at Distribution centers. Supply variability...
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...installed base of more than 1.3 million UNIX Systems known was HP-UX, worldwide. On the other hand, Independent software vendors were struggling to cover the development costs for new versions of HP-UX operating systems because HP’s commitment to IA-64 was another challenge for the company. By 1997, HP’s sales were recorded as $10 billion and the total market share was approximately worth more than $60 billion. HP was the leading the category of UNIX server vendor in comparison with revenue from 1993 to 1997. By summer 1998, Sun was leading the UNIX server vendor category. Sun converted the small independent competitors into Solaris UNIX operating systems. The installed base business of these vendors was about 40% of the total market in 1997. Sun had gained the market share with the help of independent vendors by creating a dominant position in Internet market space and taking and advantage of their focus on UNIX. ESG was formed by HP when the company refocused its efforts and resources on enterprise computing. HP innovated ESG, in a unique way of combining both RISC and UNIX which resulted in better performance for the computer systems in comparison with the standard product supplied by third-party suppliers. ESG systems were capable of running complex, mission critical applications used by their customers. After HP turned the focus from UNIX to ESG, there was a decrease in sales and revenue by mid-1998. Q.2: Why did HP get involved in developing the IA-64 architecture? Analyze...
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...Question 1: Describe the problem that a large company such as HP might face in offering many product lines and options. Because of the numerous offerings by HP, there are some problem faced by this organization. These are listed below • Unplanned operating costs • Increase in inventory driven costs • Increase in Product Design Costs • Overabundance of a few items and shortages of others. • Rework due to the re-designing or product failures Question 2: Why is there a possible conflict between marketing and operations? There dependably exists clashes in the middle of promoting and operations as advertising group or Marketing Department dependably concentrates on more SKUs, more components, and more arrangements. The need giving every conceivable item decision an undeniable approach to fulfill more clients and produce more deals. Maybe the operations dependably need less. They need less to figure, less stock and less many-sided quality to oversee. Essentially, the driver on operations is expense control. Operations requires quick and unsurprising request process durations. The shifting objectives and goals between the diverse parts of the devouring the choice setting aside a few minutes expending and excessively complex. Question 3: Summarize your understanding of the models and the algorithms. The primary utilization of information mining method is to distinguish the examples and conduct of information. So that an association may utilize it to recognize its future...
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...HEWLETT-PACKARD CASE ANALYSIS Pooya Mehmandoost University of Houston-Victoria April30, 2014 Management and organizational behavior Executive summary The world’s leading PC and printer manufacturer, Hewlett-Packard, was facing multiple problems during the first decade of the 21st century. It provides hardware, software, and services to consumers, small and mid-sized business. Companies such as Hewlett-Packard are supposed to be a stable, rock-solid institution, where a change in CEO rarely happens. But it doesn't always happen that way. In the past six years, HP changed CEO four times. This case study aims to elaborate the reasons of major problems and issues that HP has recently faced in different levels of its management and focuses on corporate behavior of the Hewlett Packard Board of directors and its effect on corporate culture and structure within the organization according to the concepts of the management and organizational behavior (MOB) theories. This study is based on real facts that occurred with the Board of Directors of the Hewlett Packard organization. Business magazine, academic articles, and online submissions, as well as books about the HP way of business were diagnosed for their structure, content, and accuracy of the topic. The research draws attention to the fact that the combined companies experienced many problems-financial, cultural, and structural-resulting in poor performance of Carly Fiorina, who was named CEO of HP in 1999 and fired in 2005...
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...Jocelin Butler Kristinia Coombs Shelby Harman Devony Jones Lesley Kuffour Cara Turley Billy Lott Franklin Wilson MGMT 2209 - 02 Jocelin Butler Kristinia Coombs Shelby Harman Devony Jones Lesley Kuffour Cara Turley Billy Lott Franklin Wilson MGMT 2209 - 02 4/22/2014 4/22/2014 HP Cancels the Board and the Beautiful HP Cancels the Board and the Beautiful No one will make it through life without facing struggles and challenges. These occurrences are what shape us and determine are character, morals, world views, etc. How we overcome and rebound from these challenges is vital; it almost indefinitely leads to our future success or failure. This holds true not just for individuals, but for companies and businesses as well. The company Hewlett-Packard recently came face to face with a series of such challenges and took drastic measures to overcome them, eventually resulting in the replacement of four members on its board of directors. The board of directors is a vital role in any company and such an overhaul is rarely seen. Such people can be difficult to replace and their leaving may unexpectedly damage inner workings of the company. It was the through the work of HP’s new chairman and CEO, Raymond Lane and Leo Apotheker respectfully, that the bold decision to initiate this massive change was made. This was certainly a risky move, but so far seems to have been well worth it. What is it exactly that makes a board of directors so important...
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...Identification In a 3-year period, Hewlett-Packard (HP) brought in $500 million through the use of operations research (Turban, Sharda, Delen. (2011)). HP also generated billions of dollars from customers from around the world. The conglomerate produces thousands of laser printers, enterprise servers and storage products. As a result of the increased number of products that HP supplies, the company also undertakes additional cost associated with these new innovations. For this reason, HP experienced a decrease in revenue due to unplanned operational costs. HP has worked diligently towards meeting and exceeding customer expectations. Unfortunately, managing millions of new products lead to increased cost and inefficiency. HP recognized that its company was providing millions of choices for customer satisfaction without a high return on investment. HP’s marketing and sales departments requested more SKU’s, more features and more configurations to meet consumer interests. However the supply chain managers wanted less complexity and were interested in more predictable order cycle times. HP needed to implement a fact-based, data-driven tool to improve decision making. HP developed a team of individuals internally and externally from consultancies and universities to help with the challenges the company faced. This team developed a process for evaluating new products for introduction, created a tool for prioritizing existing products in a portfolio, and developed an algorithm...
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...November 6, 2001 Carly Fiorina HP CEO announces merger with Compaq. This is the one of the most notable days in HP history and as well as PC industry. It was called Largest merger in the PC industry and dumbest deal of the decade. When analyzing this merger after 13 year picture is changed. HP share price has raised more than 150% after merger. Carly Fiorina is not CEO and HP is still one of the most profitable companies in the world. HP is one of the famous companies found in Pao Alto in the garage. It was founded in 1938 in the year when PC industry wasn’t existing, when Steve jobs and Bill Gates weren’t even born. It is the company from which PC industry giants like Apple and Microsoft inherited corporate culture. Bill and Dave were graduates of the electrical engineering program of Stanford University. They decided to start business on drawing on Bill’s study of negative feedback. So there first product became the resistance capacitance audio oscillator, used to test sound equipment. First client was Walt Disney which used HP product in his animated movie Fantasy. From the day of founding HP was distinguished from other tech companies by it’s corporate culture. They called it HP way. Even Steve Wozniak founder of Apple praises HP corporate culture and says that the Apple seed was planted in Hewlett-Packard cubicle. It was philosophy which emphasized integrity, respect for individuals, teamwork, innovation and contribution to customers. HP grow from garage to world's...
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