how notebooks are made t able of contents Introduction The Video Analysis amp Methodology Analysis of the Supply Chain Lean Systems Quality Control ForecastingInventory New Product Development ID: 598122
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Slide1
o
perations management
how notebooks are madeSlide2
table of contents
Introduction
The Video
Analysis & MethodologyAnalysis of the Supply ChainLean SystemsQuality ControlForecasting/InventoryNew Product DevelopmentLegal PerspectivesReferencesSlide3
Video - mead school suppliesSlide4
Analysis & Methodology
First Tier – E-Mails to Different Firms
Second Tier – Financial Statements filed with the SEC
Third Tier – Industry Analyses, News Reports, Westlaw DatabaseSlide5
s
upply chain analysisSlide6
Paper Suppliers
From all over the world
Increasing gradually from Brazil & China
Wood suppliers Paper suppliers
Meadsupply chain analysisSlide7
supply chain analysis
Notebook-Producing Machinery Suppliers
Mainly from India & China
Extremely fixed machinery
Part Suppliers
Machinery Suppliers
MeadSlide8
supply chain analysis
Problem 1 : Fixed Machinery
Difficult to modify the size of notebooks
Problem 2 : Change to New Sources of Wood Supply
Until now : Mead has been mainly supplied within America.Current : Low price in Brazil & China
Problem 3 : Excessive DependenceThe ten largest distributors take up 49%, andOffice Depot & Staples account for 24% of the total sales.Slide9
Quality control
Automated production process
Machines
do most of the workProblem?Equipment failure ⇒ Quality risk ⇒ lost of customers/profits, creates waste, delays production scheduleSolutionHire workersQuality inspection (random selection)
Mechanics on site for maintenance and inspection of machinery Emergency reporting systemSlide10
forecasting
Financial statement explicitly mentions demand seasonality
Peak Season : back-to-school
Why? Back to School Season!
Third Quarter in America, Fourth Quarter in AustraliaSlide11
Global Expansion
+ Asia/South America : 1
st
Q Back to School Season / ex.
Moleskine
3
rd Q America, 4th
Q Australia
forecasting
With global expansion into Asia/South America;
can reduce seasonal trends
Question : How can we reduce demand seasonality?Slide12
Inventory
Influence on Inventory
Must innovate the inventory system.
Inventory level increased during light demand periods (first, second quarters)
for preparing for heavy demand periods(third, forth quarters)
→ Makes inventory holding costs high
Current Situation : Demand Seasonality
How to reduce Inventory Holding costs
Capital, storage and warehousing, insurance if forecasting correctly
Maintaining quality of inventory and managing if using EDI technologySlide13
Inventory
Forecasting Correctly
Notebook industry has constant market size → Mead uses past data
Using electronic document interface (EDI) technology results in
faster turnaround, less paper work, and savings on handling
Implement EDI Technology
By forecasting correctly, Mead can choose suitable storage
and
warehousing.
Can reduce fixed costs related to inventory.
By using EDI technology,
Mead
can reduce inventory
costs by
having more information about
inventorySlide14
new product development: Analysis
Nature of MEAD products
School and office suppliers with no distinct features
No breakthrough/innovative product linesWhy is MEAD successful?Dominating N. America as a first moverConsumers do not expect much innovationSlide15
new product development
Suggestion 1
Eco-friendly, high quality productsSlide16
new product development
Suggestion 2
Business-purpose notebooks
vs
Caution : Difficult to change size or paper of products in a fixed machine
To extend product lines , must order new machines, plants… etc. etc.Slide17
legal issues
Potential danger 1 : Injuries and accidents
Safety measures are needed
Increase employee satisfaction and moralePotential danger 2 : Harmful chemicals Some paper mills have higher cancer rates due to Abestos, a dust-like fiber
Meet governmental requirementsSlide18
references
ACCO Brands Income Statement Q3 2012
ACCO Brands Financial Statements 2010
The Stationary, Office and School Supplies Market in the EU, CBI Market Survey 2009Trends in Manufacturing Paper Products, Accenture Research 2008KMAC Brand Power AnalysisLineomatic Graphic IndustriesWestlaw Legal Database