3-3 Case Study Hill's Automotive.Doc

3-3 Case Study: Hill’s Automotive

Mark D. Urbon

QSO-300 X6173

07/13/2013

Southern New Hampshire University

3-3 Case Study: Hill’s Automotive

The following paper will answer discussion questions 1 and 2 on page 577 in the textbook.

Question 1 Prepare a plan for Art Hill that gets the firm back on course toward improved profitability. Be sure to identify the symptoms, the problems, and the specific changes you would implement.

The plan starts with addressing the need for an accurate bill of materials. The company needs to set up modular bills to reduce the inaccuracy in the bill of materials, start by addressing how many modular bills can be organized, if the company has numerous options with quite a few all stemming from the same few modules. This should address the following symptoms low productivity, mismatched bill of materials, and cut down on late deliveries by having modules assembled ahead of time and ready to go into production to make the many final products the company offers. To address quality the company needs to identify its problems, determine the root cause and implement short term and long term actions to prevent the quality struggles they are encountering. To address the excessive purchasing the company needs to implement gross and net material requirement plans to gauge what is really in need of being purchased, This will ensure the company is only purchasing what it truly needs, The purchasing manager will need to identify all vendor lead times on inventory to ensure customer deliveries are not compromised, this information will allow the company to set its own logical lead times to meet customer expectation. To address the surplus inventory levels the gross and net material plan will need time to consume on hand inventory prior to new inventory is ordered, this should address the aged parts they are using and the company should see a boost in quality as a result. The purchasing manager...