Deere and company had taken over creating a new manufacturing plant to create their skid-steer loader. The idea is to get the new facility fully operational within 24 months, with a budget of $35 million that will be use to regain control of the design and the manufacturing that was hold by the New Holland Company. There is a market projection of growth of 15-20 per year, with future projection of overall growth sales of 1.2 billion giving the company a big incentive to get the project up and running as soon as possible. (Rungtusantham).
To begin this project is necessary to identify the problems faced by Scott Nolan and his company like its capacity to meet the current and future demands, the quality of the product they are creating, which …show more content…
There should be a plan in place that specifies the production schedule that determines the quantity of the product to be produced. Manufacturing efficiency is required to get this project done on time with the use of capacity planning that will ensure that the manufacturing capacity can accommodate the demand. The manufacturing leading time has to be reduced to create a cost competitive advantage and for that it to happen the throughput time needs to be reduced by finding reliable suppliers and making sure that the work is performed on the product itself is on time, and that all inspection pass their quality control.
Quality
Deere and company already have a big competitor that it is able to produce the product and improve it without major cost to them. To get a distinct position in the market, the company needs to deliver a low-cost product with high-quality. A high-quality product can create a brand loyalty from the customer. This high-quality product should offer features that are above and beyond the competition. Deer and company have already though about designs that create a more versatile load placement, a better product that will require less maintenance requirements (e.g., self-lubricant parts) and fuel efficient. …show more content…
The cost involved in with various suppliers for required parts and services will have to be compared. It is important to find a reliable supplier that offers low cost and high quality products. It is possible that with the name of this company there will be enough suppliers willing to compete with each other creating a cost advantage for the company.
Suppliers should be considered depending on their experience and ease of association. Deere could take advantage of the supplier integration models of the competition and get feedback to improve its own supplier management strategy. It is possible to contact the suppliers that were already distributing products to New Holland Company.
Deere, it is an established company that has been working for a long time with different suppliers. What becomes important for this project is to create a strategy with a confidential agreement. The supplier will need to know how the product will be manufactured and if this information gets to the competition it could be disastrous. Deere Company should make sure that the supplier won’t be providing the competition with the same products. To continue to be competitive, the supplier should be compromised to the continued development of new technology for its parts and its exclusivity to Deer & Company. The supplier should offer technical service, support and warranties, while having high quality
To begin this project is necessary to identify the problems faced by Scott Nolan and his company like its capacity to meet the current and future demands, the quality of the product they are creating, which …show more content…
There should be a plan in place that specifies the production schedule that determines the quantity of the product to be produced. Manufacturing efficiency is required to get this project done on time with the use of capacity planning that will ensure that the manufacturing capacity can accommodate the demand. The manufacturing leading time has to be reduced to create a cost competitive advantage and for that it to happen the throughput time needs to be reduced by finding reliable suppliers and making sure that the work is performed on the product itself is on time, and that all inspection pass their quality control.
Quality
Deere and company already have a big competitor that it is able to produce the product and improve it without major cost to them. To get a distinct position in the market, the company needs to deliver a low-cost product with high-quality. A high-quality product can create a brand loyalty from the customer. This high-quality product should offer features that are above and beyond the competition. Deer and company have already though about designs that create a more versatile load placement, a better product that will require less maintenance requirements (e.g., self-lubricant parts) and fuel efficient. …show more content…
The cost involved in with various suppliers for required parts and services will have to be compared. It is important to find a reliable supplier that offers low cost and high quality products. It is possible that with the name of this company there will be enough suppliers willing to compete with each other creating a cost advantage for the company.
Suppliers should be considered depending on their experience and ease of association. Deere could take advantage of the supplier integration models of the competition and get feedback to improve its own supplier management strategy. It is possible to contact the suppliers that were already distributing products to New Holland Company.
Deere, it is an established company that has been working for a long time with different suppliers. What becomes important for this project is to create a strategy with a confidential agreement. The supplier will need to know how the product will be manufactured and if this information gets to the competition it could be disastrous. Deere Company should make sure that the supplier won’t be providing the competition with the same products. To continue to be competitive, the supplier should be compromised to the continued development of new technology for its parts and its exclusivity to Deer & Company. The supplier should offer technical service, support and warranties, while having high quality