Case Study: Sttryker Corporation: In-Sourcing Pcbs

Great Essays
Register to read the introduction… 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,

Related Documents

  • Superior Essays

    Johnson & Johnson is a world class Pharmaceutical Corporation engaged in the research and development, production and sale of products in the healthcare sector in the world. The company’s main goal over the years has been in creation of products related to human health and well-being Johnson & Johnson 's operating arms are divided into three business arms, which are Consumer (which offers baby care, skin care, oral care, wound care and women’s healthcare products), Pharmaceutical and Medical Devices. The United States of America Money Policy According to the dictionary of business and economics terms, Monetary Policy can be defined as the efforts of a nation’s central bank aimed at influencing inflation rates, economic growth, and interest…

    • 1251 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    Wgu Est1 Task 2

    • 763 Words
    • 4 Pages

    In order to be able to make a sound and justified decision, I will fully disclose the situation, the events that have taken place, and my assumptions before elaborating the decision I would take as a Chief Executive Officer of the company involved. My domestic sensor company is facing increasing demand, working capital limitations, and restricted manufacturing output at the beginning of the year 2011. The Vice President of Production recommends expanding capacity of our offshore location for the following reasons: increasing demand in certain regions, rising shipping costs which make it more profitable to produce overseas instead of domestically, and the offshore location has lower labor and material costs.…

    • 763 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Tricare Case Study

    • 334 Words
    • 2 Pages

    When Tricare was created in 1994 , options were expanded to include three choices. Discuss the difference between the following: Tricare Standard Tricare Extra Tricare Prime Tricare, formerly known as the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS), is a health care program of the United States Department of Defense Military Health System. Tricare Standard Tricare Standard gives a comparative profit to the original CHAMPUS program and is accessible to retirees from Reserve Component, are 60 or older, and to their qualified relatives. Tricare Standard is likewise accessible to Reservist and their families under the Tricare Reserve Select Component.…

    • 334 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    Xacc/280 Week 4

    • 629 Words
    • 3 Pages

    Decisions for Year 3 were more challenging, I think this is so because I now have a total understanding of the simulation. I found that it is difficult to make all the ideal choices because my budget may not allow it. The organizational stakeholders decision I selected initiate a full audit of the supply chain of all K-Tai, Inc.’s consumer electronic products. I feel that the issue presented was worthy of investigation and that the best place to begin would be an audit to confirm if the company was currently using any of the conflict materials.…

    • 629 Words
    • 3 Pages
    Improved Essays
  • Superior Essays

    Boeing Swot Analysis Essay

    • 1133 Words
    • 5 Pages

    The other big step is contracting suppliers that have the capability and strong assurance that they can turn a profit on their component. This would lead…

    • 1133 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    Biomedical Instrumentation & Technology, 45(6), 464-465. doi: 10.2345/0899-8205-45.6.464. Tetteh, H. A. (2011). Kaizen: A process improvement model for the business of health care and perioperative nursing professionals.…

    • 893 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Santek Core Competencies

    • 909 Words
    • 4 Pages

    Preventing risks - trusting within the alliances will help reduce and hesitation between the manufacturers and…

    • 909 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Crafton Industries, Inc. ……………… ………………………….. I. How might one characterize the carpet and rug industry and Crafton’s position in the industry? Based on manufacturer sales, in 2009, the U.S.A business and consumers spent around $17 billion for floorcoverings. In the same year (2009) carpet and rug manufacturers posted the sales range of $9.36 billion.…

    • 1240 Words
    • 5 Pages
    Improved Essays
  • Superior Essays

    Name Professor Class Date Verizon Competitive Advantage Verizon is a company who has been in business for quite a long time. It is not only a larger company, but is known for its competitive advantage, as well as its industry attractiveness. Verizon has good overall performance compared to many of its rivals. Verizon is in the communications industry, offering wireless phone service, business products, internet, television, and home phone services. This industry is extremely competitive, as there are many big names out there who dominate the market.…

    • 1357 Words
    • 6 Pages
    Superior Essays
  • Improved Essays

    Flyway Airways Essay

    • 840 Words
    • 4 Pages

    1. How comparable are the two different methods? In what ways are they similar? In what ways are they different? Both methods use consumer based data.…

    • 840 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Currently the world witnesses a very dynamic, aircraft manufacturing industry, which invests billions and billions in its projects, due to tough market competitors. In order to achieve their goal and objectives, any project requires an efficient management. However, due to a diversity of issues, goals are not always achieved nor targets are met. During the 21st century, the aircraft manufacturing industry was leaded in the world by two major’s commercial jet manufacturers, namely Boeing and Airbus.…

    • 2435 Words
    • 10 Pages
    Improved Essays
  • Decent Essays

    Coloplast Case Study

    • 997 Words
    • 4 Pages

    For the future strategies direction of Coloplast, below are the 3 recommendations for Coloplast. Issue 1: How can Coloplast be sustainable in the long term in such intense foreign competitive market without constant R&D for new products? Strength and opportunity Since Coloplast has strong branding (Strength) and they foresee opportunities in the emerging countries (Opportunities), recommend that they could leverage their capabilities to joint venture (JV) as a mode of entry with other companies in countries that are untapped such as China to increase market shares and exposure. Having a JV for Coloplast could help them to reduce capital investments and ability to have technology transfer to produce new products that require minimum R&D.…

    • 997 Words
    • 4 Pages
    Decent Essays
  • Improved Essays

    External Ethical Issues

    • 940 Words
    • 4 Pages

    This is because making the suppliers to be part of the quality decision making process will make it possible for the company to get quality supplies. In this case the utilitarian approach will be applicable since its will entail which action points will yield maximum benefits at the lowest…

    • 940 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    1.0 Executive Summary Supply Chain refers to the flow of products or services start from the point of origin from the supplier to end consumer (Investopedia, 2003). Supply chain management refers to the design and management of seamless, value added processes across organizational boundaries to meet the needs of end consumer. Supply chain management is very important for a company to success especially for those multinational companies as nowadays the supply chain emphasizes on building trust-based relationship with the supplier and the company can focus on their core competencies for a long term benefits with a common goals. A supply chain management started with key suppliers and has four important elements.…

    • 5288 Words
    • 22 Pages
    Great Essays
  • Improved Essays

    2. Written personal reflection on operational business decisions made within the game 2.1 Introduction This game simulates the entire process of factory production. Players will plan and control the process of factory production as a manager of the plant. 2.2 Operations in practice…

    • 1096 Words
    • 5 Pages
    Improved Essays