Assignment 1 air pad
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School
Seneca College *
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Course
OPM600
Subject
Industrial Engineering
Date
Jan 9, 2024
Type
docx
Pages
3
Uploaded by MinisterMonkey18198
Executive Summary:
Apple is currently facing potential supply chain risks due to the location of its
supplier, Pod Parts, near the Taal volcano and other natural hazards in the Philippines. Any disruptions at Pod Parts could have a significant impact on Apple's ability to produce iPads, especially during peak demand seasons.
To enhance its supply chain resilience, Apple should consider the following strategies:
1.
Diversification of the Supplier Base:
Apple should actively seek and qualify multiple vendors for iPad disk drives from different geographic regions. This would help reduce its reliance on Pod Parts and strengthen the overall supply chain.
2.
Creation of a Backup Production Line:
Although it may involve higher costs, setting up an alternative production line for iPad hard drives at a different location would provide a contingency plan in case Pod Parts experiences disruptions.
3.
Collaboration for Disaster Preparedness:
Apple and Pod Parts should collaborate to improve their disaster preparedness measures. This could encompass establishing backup manufacturing facilities, diversifying the supplier network, and enhancing risk management systems.
Recommendations:
We suggest a combination of these strategies, with a primary focus on diversifying the supplier base to minimize dependence on a single source and improve the supply chain's robustness. While establishing a backup production line is a more expensive option, it offers a crucial safety net. Collaborative disaster preparedness with Pod Parts is equally essential to mitigate potential interruptions.
Situational Analysis:
Pod Parts is situated in the Laguna Technopark (LTI) in the Philippines.
Apple's exclusive source of iPad disk drives is Pod Parts.
LTI is prone to natural disasters, including its proximity to the Taal volcano and susceptibility to floods and typhoons.
Any disruptions at Pod Parts could significantly impact Apple's iPad production.
List of Potential Solutions/Options:
Assign 1- Jerril GEORGE
Diversify the supplier base.
Create a backup production line.
Enhance disaster preparedness through collaboration with Pod Parts.
Solutions and Specifics:
1. Diversify the Supplier Base:
The primary step involves diversifying the supplier base to reduce dependence on a single source:
Conducting a thorough supplier search to identify potential vendors.
Evaluating potential suppliers based on criteria like quality, capacity, pricing, and delivery performance.
Qualifying potential vendors through audits and trial orders.
2. Creation of a Backup Production Line:
While it may entail higher costs, establishing an alternative production line is
a valuable step to ensure business continuity:
Identifying a suitable location for the new production line.
Building and configuring a new production line.
Recruiting and training staff for the new production line.
Transitioning the manufacturing of iPad disk drives from Pod Parts to the new production line.
3. Collaborative Disaster Preparedness:
Collaboration with Pod Parts is pivotal for enhancing disaster preparedness, benefiting both Apple and Pod Parts:
Discussing disaster preparedness plans with Pod Parts management.
Offering financial and technical support to strengthen Pod Parts' disaster preparedness.
Participating in collective disaster preparedness exercises with Pod Parts.
Benefits of Selected Solutions:
1. Diversify the Supplier Base:
This strategy enhances supply chain resilience, ensuring that Apple can source iPad disk drives from multiple suppliers in case of disruptions.
2. Creation of a Backup Production Line:
It provides a vital contingency plan, enabling uninterrupted iPad production even if Pod Parts faces disruptions.
3. Collaborative Disaster Preparedness:
Collaboration reduces the likelihood and impact of disruptions, contributing to supply chain stability and resilience for both Apple and Pod Parts.
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