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Option #1 was to maintain the current basic sourcing policy for PCBs, but with important modifications. Specifically, it would protect against future disruptions by acquiring safety stocks of key materials and instituting dual sourcing of all electronic assemblies. Option #2 would boost reliability by establishing a partnership with a single supplier, one of the current group of contract manufacturers. That company would become Stryker Instruments’ sole supplier of PCBs and establish a stand-alone facility for supplying them. The partnership and increased business from
Stryker was expected to strengthen the supplier, further boosting its reliability. Option #3 was for
Stryker Instruments to manufacture its own PCBs in its own facility near company headquarters in
Kalamazoo, Michigan. Once such a facility was up and running, it might be expanded to supply
PCBs to other Stryker businesses as well.
Of the three alternatives, Option #3 promised the highest degree of control over quality and delivery. From that perspective, it was most the attractive. But it also required the largest …show more content…
The corporation’s divisions included Orthopaedic Implants, Medical and Surgical Equipment (MedSurg), Rehabilitative
Medical Services, and International Sales. Summary operating and financial data for Stryker as a whole are presented in Exhibit 1.
MedSurg had 2002 sales of $1.1 billion, an increase of 13% over 2001, which came from three major business units. Stryker Endoscopy produced video-imaging and communications equipment and instruments for arthroscopic and general surgery. Stryker Medical produced hospital beds and other patient-handling equipment along with emergency medical service products. Stryker Instruments produced surgical instruments, operating room equipment and interventional pain control products.
Stryker Instruments operated manufacturing facilities in Michigan, Puerto Rico and Ireland and recorded global revenues of approximately $430 million in 2002.
PCBs were used in virtually all of Instruments’ key products and platforms, sometimes in more than one application. They were contained, for example, in instrument consoles,
Stryker was expected to strengthen the supplier, further boosting its reliability. Option #3 was for
Stryker Instruments to manufacture its own PCBs in its own facility near company headquarters in
Kalamazoo, Michigan. Once such a facility was up and running, it might be expanded to supply
PCBs to other Stryker businesses as well.
Of the three alternatives, Option #3 promised the highest degree of control over quality and delivery. From that perspective, it was most the attractive. But it also required the largest …show more content…
The corporation’s divisions included Orthopaedic Implants, Medical and Surgical Equipment (MedSurg), Rehabilitative
Medical Services, and International Sales. Summary operating and financial data for Stryker as a whole are presented in Exhibit 1.
MedSurg had 2002 sales of $1.1 billion, an increase of 13% over 2001, which came from three major business units. Stryker Endoscopy produced video-imaging and communications equipment and instruments for arthroscopic and general surgery. Stryker Medical produced hospital beds and other patient-handling equipment along with emergency medical service products. Stryker Instruments produced surgical instruments, operating room equipment and interventional pain control products.
Stryker Instruments operated manufacturing facilities in Michigan, Puerto Rico and Ireland and recorded global revenues of approximately $430 million in 2002.
PCBs were used in virtually all of Instruments’ key products and platforms, sometimes in more than one application. They were contained, for example, in instrument consoles,