...|Title of case |Hewlett-Packard: Deskjet Printer Supply Chain | An Introduction This case study deals with Hewlett-Packard (HP), a famous manufacturer of computers and peripheral products. In the early 1990s, HP faced “Inventory/Service-Crisis” concerning one of their high volume products, the DeskJet printer. Despite growing inventory levels at the distribution centres in Europe and Asia-Pacific, customer service levels were unsatisfactory. Affected by growing competition this problem had to be handled quickly. Brent Cartier, Manager for Special Projects in the Materials department of HP Company’s Vancouver Division, had tried his best to find the possible solutions of the issues related with inventory of DeskJet printers that were arisen at world level specially, at Europe. Opinions and reactions of different company divisions concerning the implementation of DC localization were analysed. Although HP’s printers were selling well, inventory levels worldwide were rising as sales rose. In Europe, high product variety was making inventory levels especially high. HP considered several ways to address the inventory issue: airfreighting printers to Europe, developing more formalized inventory planning processes, or building a factory in Europe. The case is classic example for inventory analysis and to identify the organizational challenges which companies face in implementing...
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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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...Hewlett-Packard Company DeskJet Printer Supply Chain Summary Hewlett-Packard is company dedicated to manufacture computers and peripheral products. It was founded in 1939 by William Hewlett and David Packard. Their products included printers, plotters, magnetic disc and type drives, terminals and network products. In 1990 HP had over 50 operations worldwide, with revenues of $13.2 billion and net income of $739 million. One of its most successful products was the DeskJet printer, which was introduced in 1998. Sales had grown steadily, reaching a level of over 600,000 units in 1990 ($400 million). However, inventory growth had tracked sales growth closely. Already, HP’s distribution centers had been filled with pallets of the DeskJet printer. Worse yet, the organization in Europe was claiming that inventory levels there needed to be raised even further to maintain satisfactory product availability. HP’s Vancouver division, in Vancouver, Washington was also in charge of designing and producing the InkJet printers, which were sent to three distribution centers (DC) in Europe, Asia, and America. Inkjet printers were one of the most promising printer technology which can provide good quality printing at smaller cost. Worldwide market for printers in 1990 was about 17 million units amounting to $10 billion, with major players being HP in the US, Canon in Japan and Epson, Manisman-Tally, Siemens etc in Europe. Despite its new InkJet printers sold well, the level of reserves...
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...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 for the DeskJet product comprised the DeskJet supply chain. Manufacturing...
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...Part 1: Executive Summary Brent Cartier Manager for Special Projects in the Materials Department Hewlett-Packard (HP) Company December 15, 20XX I. Process Elements/Table of Content (Part 2) Part 1 Executive Summary Part 2 Table of Contents I. Issue with Impact Analysis Part 3 Immediate Issues Part 4 Systemic Issues II. Environmental and Root Cause Analysis Part 5 Qualitative Analysis Part 6 Quantitative Analysis III. Alternatives Part 7 Alternatives IV. List Recommendations Part 8 Recommendations V. Implementation Part 9 Recommendations Implementation Plan VI. Monitor and Control Part 10 Monitor and Control Part 11 Conclusion & Management Plan Part 3: Immediate Issue Hp’s distribution centers have been filled with pallets of the DeskJet printer. However the Europe is still claiming the inventory levels there needed to be raised. The Vancouver top management insists that HP is just going to meet customer needs with fewer inventories. Our immediate issue: 1. Too much inventory are in the DeskJet supply chain 2. European and Asian DCs cannot meet delivery requirement 3. Vancouver Division couldn't build the right products in the right quantities. Part 4: Systemic Issues 1.DCs operate system: Timing: Long Term Nature: Strategic In order to match Vancouver’s pull production system, DCs operate system need to be updated to a pull system as well. Now DCs performance measures are LIFR (Line Item Fill Rate) and OFR (Order Fill...
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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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... 1 DeskJet Printer Inventory Ernesto Gutierrez 5850 Logistics/Case 2 Webster University Stephen Lee 27 September 2014 Hewlett-Packard Supply Chain 2 Abstract In 1998 Hewlett Packard introduce one of the first printer products to gain sales over 600,000 units in 1990. With over $400 million in sales, Hewlett Packard had gain a foot hold on this market and was growing steadily at a rapid rate. Unfortunately, inventory growth had tracked sales growth closely. Already HP’s distribution centers were having issues maintaining inventory levels and were not able to maintain satisfactory product availability. Can a new logistics design be used to control this issue, will a delayed differentiation help with the issues faced at HP, When is it the right time for suppliers to be involved with new product development process. This paper will attempt to answer these questions to better understand the operations at HP and their supply chain. Hewlett-Packard Supply Chain 3 DeskJet Printer Inventory The inventory problems in the European distribution centers at HP faced long delivery lead times of about four to five weeks from its...
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...Venezuela Infrastructure Deployment MBA 530 Management Information Systems – Ashland University Kevin Metzger 1. OBJECTIVES: The purpose of this report is to describe all the work we did to implement network infrastructure in the Venezuela offices. In summary, we will present the following: - A list of activities performed to upgrade the Venezuela offices. -The infrastructure situation after the upgrade. (This is shown by separate areas, like network, desktops, printers and others.) - An outline of the next actions and future issues regarding the Venezuela Offices. - A review of lessons learned (and comments to consider in future projects in Venezuela.) 2. OFFICES OVERVIEW: Lubrizol is present in Venezuela in two cities: Caracas and Valencia. In Caracas, which is the federal district of the Venezuela, there is a sales office with three computers and only a few local printer devices. Valencia is an industrial city and has a medium-sized structure that contains an administrative staff and a storage warehouse to keep products imported from other countries. In Valencia there are about ten desktops and many local printer devices. Both places have local network infrastructure implemented. Understanding the size and complexity of these environments was the first step to plan the migration project. Picture 1 shows the building of Valencia and Picture 2 shows some products in the warehouse. ...
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...Hewlett-Packard (HP). (See: HP’s “Six-Pack” for a summary of DfSC.) For more than ten years the company has evaluated the supply chain impacts of design decisions. Indeed, two early examples—DeskJet localization and LaserJet universality—are described in a wellregarded Harvard Business Review article and in widely used academic case studies. 1 What is new is the innovation that has allowed HP to deploy DfSC in a systematic, repeatable, and broad-based way to hundreds of product development teams and thousands of engineers across the company. A unified set of technologies, methods, training, and infrastructure have been implemented to enable rapid and effective DfSC decision-making. “Over the past 3 years DfSC has been broadly adopted by all HP’s Business Groups and Regions. In addition, there have been over 50 individual projects undertaken in collaboration with engineering, marketing, supply chain and finance teams. Savings directly attributable to these programs has exceeded $200 million/year and are expected to reach the $1 billion mark in 2006.” - Dick Conrad, Senior Vice President, HP Global Operations Supply Chain 1 Edward Feitzinger and Hau L. Lee. “Mass Customization at Hewlett-Packard: The Power of Postponement.” Harvard Business Review, January-February 1997: pp. 116-121. Laura Kopczak and Hau L. Lee. “Hewlett-Packard DeskJet Printer Supply Chain (A) and (B).” Stanford Teaching Case, 1996. Hau L. Lee. “Product Universality: The HP Network Printer Case.” Stanford Teaching...
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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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...Hewlett-Packard’s Deskjet Printer Supply Chain Cases (A) & (B) Discussion Guide & Answers Ranjan Ghosh | HP’S DESKJET | Industry characteristics: competitive, fast growing, exploding in Europe, changing distribution channel, rapid technological advances. Product characteristics: quite, medium price, high print quality, leading technology, commodity–like, lighter and smaller, reasonable speed. Supply chain characteristics: centralized manufacturing, DCs fulfilling pure distribution functions, bulky products resulting in long ocean transit, lean manufacturing shifts inventory burden to DCs. | Inventory-Service Crisis | What crisis: inventory imbalance, i.e., some product options having excess inventory while some others have shortages. What caused it: ( many product options due to geography, ( long DC replenishment lead time, ( highly uncertain market, ( inflexible design : not easy to rework one option to make it into another, ( out of control inventory system, ( uncoordinated functional interests (manufacturing, distribution, marketing, engineering ) | Curse of Product Variety ...
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...Only @ PC Gilmore Platinum (02) 721-3496 / (02) 726-7628 platinum@pcgilmore.com.ph AMD PROCESSOR AMD A4-4020 3.2GHz Socket FM2 AMD A4-5300 3.4/3.6Ghz Socket FM2 AMD A4-6300 3.7/3.9GHz Richland FM2 AMD A6-5400K 3.6/3.8Ghz Black Ed. FM2 AMD A6-6400K 3.9 Ghz Richlad FM2 AMD A8-5600K 3.6/3.9Ghz Black Ed. FM2 AMD A8-6600K 3.9Ghz Black Ed Richland FM2 AMD A10-5800K 3.8/4.2Ghz Black Ed. FM2 AMD A10-6790K 4.0/4.3GHz Richland FM2 AMD A10-6800K 4.1Ghz Black Ed. AMD A10-7700K Kaveri (4CPU+6GPU)3.5Ghz AMD A10-7850K Kaveri (4CPU+8GPU) 3.7GHz AMD FX4300 Vishera 4-Core 3.8/4.0GHz AM3 AMD FX6300 Vishera 6-Core 3.5/4.1GHz AM3+ AMD FX8350 Vishera 8-Core 4.0/4.2GHz AM3+ *ADD P100 FOR NON-UNIT PURCHASE 1590 1690 1730 2530 2730 4230 4590 5630 6100 7050 7530 8580 5590 5790 9680 Kingston Hyper-X 8GB DDR3 1600/1866 Kingston 2GB PC6400 DDRII 800 SODIMM Kingston 2GB PC3-10600 DDR3 1333 SODIMM Kingston 4GB PC3-10600 DDR3 1333 SODIMM Kingston 8GB PC3-10600 DDR3 1333 SODIMM *ADD P100 FOR NON-UNIT PURCHASE Only @ PC Gilmore North EDSA (Asus) (02) 441-1368 sm_north@pcgilmore.com.ph 3800 1650 1050 1800 3400 GALAXY GT730 2GB DDR3 128BIT GALAXY GTX750 1GB DDR5 128BIT GALAXY GTX560 1536MB DDR5 GALAXY GTX750Ti GC 2GB DDR5 GALAXY GTX770GC 2GB DDR5 256BIT GALAXY GTX770HOF 2GB DDR5 256BIT MSI N420-1GD3 1GB DDR3 128BIT 2300 3950 2430 3030 4230 6250 7950 2350 6950 2780 3700 6700 9200 9450 1850 2100 4800 MSI N630-1GD5/V1 - 1GB DDR5 128BIT MSI N630-2GD3 GT630/2GB/128BIT/DDR3 MSI N630GT-MD4GD3 4GB DDR3 128BIT MSI...
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...Hewlett-Packard’s Deskjet Printer Supply Chain Cases (A) & (B) Discussion Guide & Answers Ranjan Ghosh | HP’S DESKJET | Industry characteristics: competitive, fast growing, exploding in Europe, changing distribution channel, rapid technological advances. Product characteristics: quite, medium price, high print quality, leading technology, commodity–like, lighter and smaller, reasonable speed. Supply chain characteristics: centralized manufacturing, DCs fulfilling pure distribution functions, bulky products resulting in long ocean transit, lean manufacturing shifts inventory burden to DCs. | Inventory-Service Crisis | What crisis: inventory imbalance, i.e., some product options having excess inventory while some others have shortages. What caused it: ( many product options due to geography, ( long DC replenishment lead time, ( highly uncertain market, ( inflexible design : not easy to rework one option to make it into another, ( out of control inventory system, ( uncoordinated functional interests (manufacturing, distribution, marketing, engineering ) | Curse of Product Variety ...
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...Assignment 2: A Complete Home Network Jonathan Scholl Strayer University CIS106 Professor Jamshid Haghighi June 7, 2016 A Complete Home Network Introduction: I believe this is way more than enough money for an entire home network, but it also comes down to what the needs of everyone in the household are. If you have gamers or those with workstations, then you’ll definitely need to take into consideration that you’ll need better than average hardware. But some family members may only need a simple notebook, tablet, or even their smart phone to connect to the internet. Most people enjoy streaming applications such as Hulu, Netflix, and Crunchyroll. Before you start, you need to figure out what the network will be used for and tailor it to the needs of everyone who uses it. For this example, I’m going to use my own family’s network. It’s a simple network that will most likely be sufficient for the average family. Starting out, you need to research the internet service providers (ISPs) in your area. These can range from large companies to small local companies. If you do a lot of video streaming and gaming, then you’ll want a fairly good connection speed. I’d recommend going with at least 20Mbps download and 5Mbps upload. The company we use is a local company called Forsyth CableNet. Hardware: You’re ISP can provide you with rental modems. I believe this to be a great option because modems can be costly to replace if they’re damaged. It usually means adding a...
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...Supply Chain Management Assignment ON BULLWHIP EFFECT AND DELAYED DIFFERENTIATION Submitted to Prof Dr. P.R.S.Sarma Submitted by VENKATA RAJA GOPAL RACHERLA Regd. No.: 1226109236 SEC-B MBA (IB) - 2009-11 1 INDEX S No. I 1 2 3 Topic Bullwhip effect Introduction Explanation Causes of Bullwhip Effect Possible Remedies The Bullwhip effect in the electricity sector Conclusion Postponement or Delayed Differentiation Page no. 3 4 4 5 4 5 6 7 6 II 1 10 11 12 Introduction 2 Forecasting uncertainty 14 3 The long-term potential 16 2 THE BULLWHIP EFFECT 3 1. Introduction The bullwhip effect is the magnification of demand fluctuations, not the magnification of demand. The bullwhip effect is evident in a supply chain when demand increases and decreases. The effect is that these increases and decreases are exaggerated up the supply chain. The essence of the bullwhip effect is that orders to suppliers tend to have larger variance than sales to the buyer. The more chains in the supply chain the more complex this issue becomes. This distortion of demand is amplified the farther demand is passed up the supply chain. Proctor & Gamble coined the term “bullwhip effect” by studying the demand fluctuations for Pampers (disposable diapers). This is a classic example of a product with very little consumer demand fluctuation. P&G observed that distributor orders to the factory varied far more than the preceding retail demand...
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