HP Case Study

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Running head: HEWITT PACKARD CASE STUDY 1 Hewitt Packard Company: Network Printer Design for Universality Case Study Lakeisha Boston Liberty University

SOLECTRON CASE STUDY 2 Hewlett-Packard Company: Network Printer Design for Universality Case Study In what way is a universal power supply a post-ponement strategy? A post-ponement strategy is one that formulates from a generic basis and later comes to full fruition allowing a window of possibility for additional customization of a final result or end-product. “Using a postponement strategy, you maintain inventory of only the base product at the retailer or distributor. The product is further customized at retailer/distributor end based on the demand from the customer; pull strategy (Chodankar , 2013).” The universal power supply is an example of this because the decision started with just the network laser printer with the possibility of adding this feature. It would give HP more flexibility in post-ponement. Also, the universal power supply could replace the conventional North American and European supplies that were previously standard on the product; impacting production in a positive way. What are the costs and benefits of a universal power supply? Some benefits of a universal power supply include reduced lead time and inventory costs. There is also the benefit of HP being more able to respond to demand. This is overshadowed by the initial estimated increase in cost of $30/supply from Japanese manufacturers. Additionally, the HP finance team estimated a cost of $13.5 million for 450,000 units (Simchi-Levi, Kaminsky, & Simchi-Levi, 2008). How would such costs and benefits be different over the product life cycle? Demand or increased competition can impact the cost and benefits over a product’s life cycle. “HP product life cycles were shrinking, making time to market the difference between maximizing market opportunities and missing them (Simchi-Levi, Kaminsky, & Simchi-Levi,

SOLECTRON CASE STUDY 3 2008).” Reduction in demand or a lost sale to another competitor could equate to losses in profit margin. Besides deciding on a universal power supply, what other operational improvements can you suggest to HP Boise? In terms of production, I would suggest that HP introduces more portable option. The marketing perspectives on universal power supply, helped to form this idea. They mentioned that customers are not buying universal power supply laser printers to transport because it is practically impossible. However, it could be if it were more compact. Additionally, I would suggest for the operations segment, to improve on decision making and analysis of product innovations. I do not feel as if HP research the universal power supply option thoroughly enough to overcome objections due to cost and demand. What would be your recommendations about the adoption of a universal power supply? I agree with the manufacturing and marketing perspective. I think the universal power supply is a great option. The cost of this adoption is off-putting. Additionally, the potential reduction in demand and stock-out cost is also a turn-off. “Depending on the product category, 7% to 25% of consumers faced with a stock-out will continue shopping but won’t buy a substitute for their desired item at the store; 21% to 43% will actually go to another store to buy the item (Cortsen & Gruen, 2004).” Overall, I would be impartial on this product adoption.

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SOLECTRON CASE STUDY 4 References Chodankar , O. (2013, June). Postponement Strategy – Reducing Inventory In Automobile Industry . Retrieved from Operations & IT. Cortsen, D., & Gruen, T. (2004). Stock-Outs Cause Walkouts. Harvard Business Review . Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2008). Designing and Managing the Supply Chain. New York: McGraw-Hill.

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