american connector company

7/17/2019 American Connector Company

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Abhishek Sharma 14PG

Bora KiraN Kumar 14P

Abhay Ray 14PGP

Somal Kant 14PG

Amit hou!hory 14PG

han!an Kumar 14PG

Group - 5



Some As"e#ts o$ both the #om"a2

%uality an! ustomi&ation'i(hly e)#ient ma

*on+t !o #ustom

*on+t $ollo,s "rs#he!

Attention to #ustom

-2. to 43. !e#rease in (ross mar(in$rom 1/41//1

*esi(n an! Per$orman#e

A



Production Type Average Production Rate Competitive Strategy

Production Planning Lead Time Capacity Utilization

om"letely

ontinuous lo,

700 million units

500 million unitsmaimum

8o, #ost

"ro!u#tion9stan!ar!i&ation

an! su"erior

!esi(n

4

:

'

A

<"erates 16hours=,eek on a24 hour "er !ay9330 !ays a year

short lea!times9lar(e >nishe!

(oo! in?entory

100. utili&ation

!"C# $a%asa&i plant 'anu(acturiStrategies

Aho$#n



Production Type Average Production Rate Competitive Strategy

Production Planning Lead Time Capacity Utilization

;aCority Bat#h

Pro#ess9 rest obPro#ess

420 million units

5600 million unitsmaimum

leibility an!

#ustomi&ation

-

:

P

;

:

<"erates 120hours=,eek on a 3shi$t "er !ay9 -!ay "er ,eeks#he!ule9 -0,eeks o$ the year

Relati?ely lon( lea!

times9 short

"ro!u#tion runs

5a?era(in( 1@- to 2

!ays9 an! small

>nishe! (oo!s

in?entory 53 !ays@

only $rom -0-.<!

e

#

e

ACC# Sunnyvale plant 'anu(acturStrategies



)*+o% serious is t,e t,reat o( American Connector Compa-

Sales may $urther !e#line in"essimisti# situation

a"art $rom 1-.

Sales 5..

ustomi&e!Pro!u#t 1-.

Remainin(sales 42- D E1-1-F16

ost o$ Pro!u#tioby hal$ as ra% m

,al( in USA "apan ,hi#h ,oumore as th!ierentiation hasthe #ost is the o$a#tor

USA

Ra,;aterial #ost

6@-1

Ra,;aterialPa#ka(in(

3@27

:otal Ra,;aterial

ost

/@7

* is not currently t,reat to t,eACC as it is ha?in( 4-00 SKHs ,hereas * is ha?in( 600 SKHs@ * #ant#a"ture the all the market o$ A !ue

to its limite! oerin(s



/uality

Production

Sc,eduling

Supplier Relations,ip

0rganisational

Structure

As the in#rease! rate o$ !e$e#t rates almost 26000"er the *9 it may "ossible that uality #ons#ious #ustome

some "erio! o$ time@

As * in?estin( in su""liers $or im"ro?in( in uality

te#hni#al su""ort9 it ,ill hel" the * to ha?e #om"!i)#ult time as #om"are! to the #om"etitors

As the or(anisational stru#ture o$ * #or"oration #om"are! to the A ,hi#h is ha?in( hierar#hi#al able to take $ast !e#ision in the #han(in( en?ironmen

)*+o% serious is t,e t,reat o( American Connector Company

A is ha?in( "roblem ,ith mana(in( JP as ,ell as in!ue to 4-00 SKHs



1* +o% 2ig are t,e cost di3erences 2et%een !"C4American Connector4s Sunnyvale plant Conside

per(ormance in $a%asa&i and it4s potential in tStates*

Ra% 'aterial Product 6 Pac&aging7#

Present ra, material #ost o$ "ro!u#t an! "a#ka(in( inrelati?ely@

Ra, material #ost ,ill re!u#e i$ * set u" there "lant in!i#es HS ?=s a"an is lo,er 50@6L1@

* 5Ka,asaki #ost in!i#es HS ?=s a

Ra, ;aterial Pro!u#t 12@13 0@6

Ra, ;aterial Pa#ka(in( 2@76 0@6

:otal ost 14@/



/*1 -La2our Cost #

JP an! >nishe! (oo!s in?entory is hSunny?ale "lant in #om"arison to Ka,asaki

;an"o,er reuirement to han!le this e#es"a#e is also in#rease!@

n#rease! #om"leity o$ the "lant en?irolabour #ost@5;aterial han!lin( #ost o$ Ka,as10@4. o$ Sunny?ale@

But9 * ,ill ha?e to "ay 10. more in HSlabour ,a(es@

:his in#rease in #ost ,ill (et oset by less o$ labours !ue to automation@



Pac&aging Cost

n #om"arison to Sunny?ale9 the "a#ka(in( #ost o$ Ka,asaki "lana!a"tability o$ stan!ar!i&e! "ro!u#t "a#ka(in( te#hnolo(y@

Electricity Cost n #om"arison to Sunny?ale+s "lant the ele#tri#ity #ost o$ "ro!u#

Ka,asaki as ele#tri#ity #ost in!i#es o$ HS ?=s a"an is 0@L 1@

Runtime (or molding process

*ue to hi(h bat#h o$ housin(s assemble! !urin( "latin( o"eralo,er runtime $or mol!in( o"erations ,hi#h ,as alrea!y !o,n to $urther re!u#tion ,oul! ae#t #osts@

!epreciation

'i(h re!u#tion in #ost $rom 1/6 to 1//1 $or * ,as !ue to !e#r

!e"re#iation o?er in?estment@

*e"re#iation is a maCor #ontributor to #ost $or A@ ost !ieren#ean! A ,ill re!u#e a$ter a "erio! ,hen A ,ill rea#h its BP $or !one !urin( the "erio! 1/3 to 1/6

/*1



ost o$ manu$a#turin( o"erations o$ * in HS ,oul! re!u#"ro!u#tion #ost o$ 819*). by 1:; to 81.*15

/*1

1/6 1//1

*5Ka,asaki A 5HS

*5Ka,asaki A 5HS

#ost in!?=s a

Ra,material"ro!u#t 14@32 10@4 12@13 /@3/ 0

Ra,material

"a#ka(in( 3@27 2@2- 2@76 2@1 0

labor !ire#t 7@63 0 3@02 1labor

in!ire#t 2@3 0 0@7- 1

total labo /@/3 @-3 3@77 10@3 1

ele#tri#ity 2@47 1@ 1@4 0@ 0

!e"re#iation 7@63 -@-2 1@ -@1 1

other 4@12 4@41 4@24 6@1 1

total 41@74 32@/1 26@1 33@7/



Number o$ !e$e#ts "er millionin A is ?ery hi(h as#om"are! to the *

Ra, materiais t,i#e as HSA

* o"erate!

throu(hout the maimum asse7-@4. as #om30@2. asset uti

/uality issues# Ra%

Production Process# <i=ed Ass

/:# >,at accounts (or t,ese di3erenc

*ue to the Bat#h "ro!u#tiona!o"te! by the A nee!s$reuent #han(es in "ro!u#tionline as #om"are! to * ,hi#h isha?in( ontinuous "ro!u#tionline@



12

3@'o, mu#h o$ the !ieren#es is inherent in thethe t,o #om"anies #om"eteM

ui"ment

* relian#e oninhousete#hnolo(y!e?elo"ment,hereas Arelian#e onbuyin(te#hnolo(yeui"ment

Geo(ra"hi# 8o#ation

* establishe!its "lant near thesu""liers an!maCor eui"ment#om"anies@

ost o$ n?entory

* maintaine! ?eryless ra, materialin?entory as#om"are! to A@

But in terms o$>nishe! (oo!s9 *+s>nishe! (oo!in?entory is hi(ho$-6 !ays #om"arin(to A ,hi#h isha?in( 3!ays@

Pro!u#tion

* is ha

600 SKHs,hereas ha?in( 4SKHs ,hmakin( A"roblemsmana(inin?entory



:*+o% muc, is due strictly to di3eret,e e?ciency o( t,e operations13

:hou(h the "ro!u#tion

s#he!ule $or any (i?en!ay ,as su""ose! tobe !one 30 !ays be$orebut in realty theyroutinely #han(e! to,eekly or !aily basis$or the im"ortant#ustomers@

* is ha?in(or(anisational stru#ture

,here s"e#i># "eo"le arethere to (ui!e "ro!u#tion@

Jhereas Amana(ement is more$o#usin( on marketin(

an! sales an! they !on+tha?e any s"e#i># "eo"le$or mana(in( "ro!u#tion

:hou(h

#om"eta!?antauality9 ha?e no"er mill"ro!u#tunits o$



@*>,at s,ould American Connectors manat,e Sunnyvale plant do

:hey shoul! (o $or the !e#reasin( #ost o$ "ro!u#tiothe #urrent !e$e#t rate@ :hey shoul! (o $or "ro

instea! o$ rea#ti?e uality@ Proa#ti?e uality ,ill result in re!u#tion o$ time

reuirement $or monitorin( an! ins"e#tion o$ in?entory@

:hey shoul! (o $or #ollaborati?e relationshi" ,ith thi(h uality "ro!u#ts an! make sure that uality sho

at the su""liers en!@

:hey shoul! (o $or re!u#tion o$ some o$ SKHs by?aluea!!e! !esi(ns ,hi#h ,ill hel" in mana(in( "ro!u#tion s#he!ulin(

n?estment reuire! $or the u"(ra!ation o$ te#hhouse R * as no u"(ra!ation has been !one sin#e

14



Re#ommen!ation ont@@

A nee!s to #han(e or(anisational hierar#hy $rom m

or(ani# ,hi#h ,ill (i?e more autonomy to their "romana(er@ :his ,ill hel" $ast ta#ti#al o"erational !e#isio

!enti$y bottlene#k in the "ro!u#tion "ro#ess 5e@(@ Plaan! try to e"loit an! ele?ate it@ t ,ill result in asset u

<nly 1-. o$ the total "ro!u#t "ort$olio are the

"ro!u#ts@ :hey shoul! (o $or stan!ar!i&ation o$ the restan!ar!i&e! "ro!u#t an! layout !esi(n@

o#us on #ross$un#tional inte(ration an! in$ormabet,een "ro!u#tion an! marketin( team@

1-



:hank you

16

american connector company

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