Om320

Hewlett-Packard Company

DeskJet Printer Supply Chain (A)

Case: GS-3A

ABDULRAHMAN AL-AOUDAH

200736810

23/02/2014

I. MAJOR FACTS

1. William Hewlett and David Packard with the HQ in Palo Alto, California founded Hewlett-Packard Company in 1939.

2. Brent Cartier manager for special projects in the material department of HP Vancouver division.

3. The deskJet printer was introduced in 1988, sales reached a level over 600k units in 1990 ($400 M).

4. David Arkadia the material manager at the Vancouver division.

5. In 1990 HP had over 50 operations worldwide with revenues of $13.2 billion and net income of $739 million.

6. The peripherals group was the second largest of HP’s six product groups, with 1990 revenues of $4.1 billion.

7. Worldwide sales of small workgroup/personal printers in 1990 were about 17 million units amounting to $10 billion.

8. The retail market was composed of three technology segments : impact/dot matrix (40%), inkjet(20%) and laser(40%), dot matrix was the oldest technology.

9. HP and canon separately pioneered inkjet technology.

10. The technological breakthroughs had been ink formulation and the disposable print head. HP introduced its first disposable head model the ThinkJet printer in the late 1980s, while canon introduced one in 1990.

11. The Vancouver division was established in 1979.

12. Bob Foucault the production manager.

13. 1979 process was 8-12 weeks cycle time and 3.5 months inventory.

14. Richard Schoenberg (Nebraska university), Robert hall (Indiana university) devised a plan the within a year reduced inventory form 3.5 to 0.9 months with a drastic reduction in cycle time.

15. 1988 Vancouver introduced Deskjet printer.

16. Two key stages in manufacturing process (1) printed circuit assembly and test (PCAT) (2) final assembly test (FAT).

17. The finished products of the factory consisted of printers destined for all different countries, these products...