MA Case Study

.docx

School

York University *

*We aren’t endorsed by this school

Course

2610

Subject

Information Systems

Date

Jun 26, 2024

Type

docx

Pages

2

Uploaded by BrigadierNeutronOtter261

Alternatives: 1. Terminate the relationship with EL Manufacturing: Sung could revert to its previous suppliers, who provided defect-free components, albeit at a potentially higher cost. 2. Negotiate a lower price with EL Manufacturing: Sung could leverage its position as EL Manufacturing's sole customer to negotiate a lower price, closer to or at the market rate. 3. Invest in quality control measures at EL Manufacturing: GeoBab could invest in quality control measures at EL Manufacturing to reduce the costs associated with defects, rework, and spoilage. 4. Implement an enterprise resource planning (ERP) system: As suggested by the CEO, implementing a uniform ERP system across GeoBab's operations could improve integration and efficiency, potentially mitigating some of the challenges faced by Sung. Recommendations: 1. Negotiate a lower price with EL Manufacturing: Sung should negotiate with EL Manufacturing to bring the component pricing in line with market rates, eliminating the 5% premium currently charged. This would help improve Sung's profitability and competitiveness. 2. Invest in quality control measures at EL Manufacturing: GeoBab should invest in quality control measures at EL Manufacturing to reduce the costs associated with defects, rework, and spoilage. This investment could potentially offset the higher costs of sourcing from EL Manufacturing, while ensuring a consistent supply of high-quality components. 3. Implement an enterprise resource planning (ERP) system: As suggested by the CEO, GeoBab should prioritize the implementation of a uniform ERP system across its operations. This would improve integration, efficiency, and visibility, potentially mitigating some of the challenges faced by Sung and other divisions.
Implementations: Short-Term (0-6 months): ● Begin renegotiation talks with EL Manufacturing and set interim quality targets. ● Conduct a quality audit at EL Manufacturing and implement immediate corrective actions. ● Start the phased implementation of the ERP system. Medium-Term (6-12 months): ● Complete the ERP system implementation across all plants. ● Monitor and review the quality control improvements at EL Manufacturing. ● Launch customer satisfaction programs to win back market trust. Long-Term (1-2 years): ● Continuously evaluate and optimize the supply chain for cost-effectiveness and quality. ● Explore new markets and product lines to drive growth. ● Maintain a focus on integration and operational efficiency through regular audits and updates.
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help