Network

Sarah Donohoe, manufacturing engineering manager of the

Hewlett-Packard Company (HP), listened intently to her colleagues

meeting for the development of their latest new product.

Jane Schushinski, marketing manager, Leo Linbeck, head

Hooper, the controller of the division.

The main topic for this meeting was the decision of whether

supply for the next generation of network laser printer, code-

printers in the North American and the European market

the associated fusers in the main engine of the printer. For

volt power supply was installed. For European printers, a

This printer engine was built by HP’s manufacturing partner

time for engine manufacturing, HP had to specify the requirements

printers at least fourteen weeks ahead. The time that it takes

the printers for shipments, the transportation times and customs

weeks. Hence, if a universal power supply is used, then

postponing the specification of the printer engine by at least

Consequently, the production team believed that universal

better respond to the changing demand in the individual markets

costs.

Linbeck had begun the meeting by reviewing a fax he had

partner. “We have been asking our partner for a universal

time. Now, when we are about to finalize our design of the

they are telling us that designing the new power supply is

completed within the time constraints we have set for delivering

time. However, we must make the decision within the next

partner can line up its design engineers to work on the project.”

finance's position as follows, “I do not know what other costs

This case was written by Professor Hau L. Lee, based on an original

Cupal. It is intended as the basis for class discussion rather than to illustrate

handling of an administrative situation. The product and individuals’

1998 by the Board of Trustees of the Leland Stanford Junior University.