Prism Canada Inc. Case Study Problem Statement: Will outsourcing the company’s inefficient sheet metal operation be a proper strategic move to save the company money and satisfy current and potential customers with respects to quality and delivery lead time? Size up: Item | So What? | Machine break-downs | Since break-downs occur at the initial step, the rest of the process gets delayed causing longer customer lead time and extra shifts are required which increases labour expense. | Age of the machines | Considering the turret press was old and broke down often, this causes a delay in customer lead time and unnecessary costs because parts are expensive and hard to find. | Under performing sheet metal operation | Because …show more content…
The company could also eventually earn a reputation as poor supplier that cannot meet customers’ expectations which would potentially cause the company to lose money and in a worst case scenario, go out of business. Outsourcing an important process could also compromise confidential information, which could lead to the selected vendor using that information to acquire new business; therefore Donna must bind the selected vendor to a contract that prevents the vendor from supplying other customers with that product. Qualitative: Considering Donna Smith is Prism Canada’s buyer, she attains the proper qualifications and authority in selecting a specific type of vendor to supply Prism with their required products. She has conducted a supplier visit in order to assess the potential vendors in regards to the specific standards that Prism Canada Inc. expects the vendors to have. Some of the following qualitative criteria’s include: 1. Quality a. The selected vendor must clearly demonstrate the ability to provide quality assurance to meet their specifications. 2. Safety b. The selected vendor must clearly demonstrate the ability to meet customer lead times while conducting themselves in a safe manor. 3. Environmental c. The selected vendor must demonstrate the ability to manufacture the product while at the same time abiding by environmental standards. 4.
Because many businesses in the US have more often began outsourcing different business products instead of doing them in-house, it is important to understand why outsourcing may be the best option. Although many tie outsourcing to foreign markets, outsourcing can include both foreign and domestic markets. By entering into a contractual agreement, outsourcing allows organizations to pay for services they need. This gives the option for a business to get professionals to perform services for them that the business may not have the staff for. Outsourcing provides a cost saving-strategy that is usually more affordable. Ultimately,
a. Why is it preferable to separate need identification and defining commercial equivalents into two separate stages?
We should consider this trade-off from ECCO case, between in-house production and outsourcing when faced with cost uncertainty and competition with a rival manufacturer in a differentiated goods market. When the management decides on selecting organizational forms, technological uncertainty on production activities often ensues. Thus, a manufacturer faces uncertainty when choosing between in-house production and outsourcing. Moreover, because almost all modern firms are in a competitive position, they have to choose organizational forms and take the
* Labor outsourcing is a good strategy to decrease the labor cost. But it associates with many issues. Once outsourcing is done, the MNC cannot just stay behind. The MNC should carefully supervise on the working conditions, safety, wages, working hours, gender discrimination and human rights violations. If any of these factors going wrong and leads to sweatshop conditions, it directly affect on the reputation of the MNC. If once the name or the brand is blacklisted, it is very hard to repair the damage. Therefore, the risk of outsourcing is high.
c. Comparing these two options above, option 3 is much more reliable. Having an in-sourcing facility will bring more flexibility as we mentioned before. With a developed in-sourcing proposal, there are a lot of detail estimations about the Option 3. It’s easier for Stryker Corporation to implement this plan step by step.
7. Under a shipment contract, the seller is required to do all but which of the following?
VI. You must have an in-depth explanation of how these could achieve the aims and objectives of your business proposal.
B. Will the supplier be able to meet our cost, quality, and product performance requirements?
Outsourcing has become an integral part of many organizations today. Outsourcing has its advantages and disadvantages that organizations will have to weigh to decide whether or not outsourcing is the best possible solution to their current problems and business operations. Outsourcing refers to the process of hiring external provider to operate on a business or organization function (Venture Outsource, 2012). In this case, two organizations or businesses enter a contract where there will be an exchange of services and payments. This paper will discuss the possible risks an organization may encounter in outsourcing in relation to the use of an external service
4.Given the 4 areas of the company, choose some supply chain processes and suggest appropriate performance metrics.
• Have open and honest communication with vendors concerning what is going good and bad with their products
Secondly, the company's growing complexity was choking it and was a big cause of concern. Adding more bricks made products harder to assemble, forecasts harder to determine, and inventory harder to manage. The complexity had a multiplier effect that went through the entire supply chain
Because of the important relationship between insourcing/outsourcing and competitiveness, organizations must consider many variables when considering an insourcing/outsourcing decision. This may include a detailed examination of a firm’s competency and costs, along with quality, delivery, technology, responsiveness, and continuous improvement requirements. Because of
Outsourcing should only be implemented when a company’s core competitive advantages are not affected and then when