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Shipper Manufacture Company – Case Study

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Unit 2 Shipper Manufacture Company – Case study
The Shipper Company was established in the 1960s based on aerospace business. It provides 12 aerostats every year to customers. However, the first business developed made the Echo weather satellites.
Recently, Shipper was divided into three divisions (Figure 1)
Figure 1 Divisions located based on James Wallace, general of the Advanced Products Division at Shipper (2007).

The business of APD had problems after five years when both sales and profits went down, see figure 2.
Figure 2 Shipper Company and APD financial charts (Wallace, 2007)

At this time, James Wallace, general manager of the APD proved a new strategy for APD business with the missions: 1. Continuing to provide products and customization to individual customers. 2. Research and develop new products to special consumer applications. a. Providing products that have no competitor, but limited quantity. b. The customers will be investors for product development. c. Making a revolution in sales and profits.
The operations objectives, according Wallace (2007), APD will focus on are cost, delivery, and quality. The price of new product must be reduced as much as possible by creating more select options to shortened storage times and fasten delivery process. While the cost becomes the main objective, the quality is still important. APD reduces all labor cost as much as possible and will not focus on individual product quality. The goal of this change is increasing product volume and reducing products cost. APD moves from custom-design to producer-design, which means the customers have to pay for customization fee and also means that the cost will be reduced. Additionally, the customers also do not care about product transactions because the production times may shorten.
According to Wallace, the APD business strategy should

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