While they have a good salary for the entry-level employees, their advantage is reduced as employees advance within the company. Through this high quality and lack of flawed parts they have gained a good reputation, which was something that was normally reserved for American companies.
It can be controlled using specific fixed lines for large size order which would run for longer period and frequent changing lines fixed for smaller orders. This saves time and also introduces new designs. Further to this ACC organizational hierarchy was more inclined towards marketing and engineering teams and lesser stress on production team which was different in case of DJC which had equal stress on the production team; this was a motivational factor for increase in productivity.
They did not invest time or money into upgrading their facilities, quality, or capacity. They need to implement quality control throughout the process, which will reduce costs and increase efficiency and profitability.
ACC must change their mindset and stop being complacent. It will take other companies years to match the efficiency of the Japanese production facilities.
DJC is not keeping their employees longer than an average of 9 years. ACC needs to build on their good reputation with their US customers. The moulds producing less no. The company location was chosen such that it was near the major Japanese electronics companies and also near the major raw material suppliers.
There five production areas in the plant. In Japan raw material cost is twice as much high as in America. RecommendationsAmerican Connector Company has two options: How to cite this page Choose cite format: There is a high rate of defective parts.
Employees on the line knew the goal of the company and what management expected and solved many of the problems at the lowest level.
This sped up the design process and allowed them to quickly enter the market. The continuous inspections, replacement or worn parts and the high level of maintenance of the equipment allowed the factory to run smoothly.
This focus on efficiency has created a cost efficient way of producing wire connectors that cannot be rivaled. It implies that there is quality control inspection required at each process level unlike the current practice of end product inspection.
There are thousands of standard connector product lines.
DJC maintained low raw material inventory, where they ordered the raw materials as per requirement and pull strategy for manufacturing.
What accounts for these differences? They understood the importance of the having an overall goal that is understood by all divisions. The focus on fixing problems before they happened has led to fewer problems encountered on the production line.
ACC needs to follow similar model for operations set up in the organisation to promote production oriented structure and greater balance. The process was set up in the most logical and efficient manner allowing for an increase in quality and reduction in personnel.
With the way the US connector market has played out, it is open for international companies to enter the market. It is hard to adjust production lines with the forecast being done three months in advance. First, they are already in the US market.
They do rotate employees to different jobs yearly giving them good experience in different areas but cannot keep them until retirement.
It would help in developing in-house machinery to have a technological edge over competitors. Japan has been able to get ahead with hard work, innovations, and technological advances.
While most of the defective parts do not make it to the customer, the waste of time and supplies costs ACC money.THE AMERICAN CONNECTOR COMPANY The American Connector Company operated four plants in the U. Customization was an extension of ACC’s emphasis on quality.
sustaining margins as high as 52%. The plant had started off with a capacity of 1 million units per year. Case Analysis- American Connector Company (A) Group 5 Subhash Rajeev () Aaron Ernest () Sunil Kumar MN () Executive Summary This case deals mainly with the differences between 2 firms in the same industry with very different manufacturing and business strategies.
American Connector Corporation makes electrical connectors at a plant in Sunnyvale, California. With applications from military, aerospace to consumer electronics and appliances, there is great difference in terms of specifications also.
Threat of DJC to American Connector Company. American Connector Company Analysis ; An American. american connector company (a) submitted to prof. janat shah course: operations management submitted by group 7 anupam bara - jasdeep singh - p swetha - pritesh - vaibhav baweja - American Connector Co.
(A) Case Solution,American Connector Co. (A) Case Analysis, American Connector Co. (A) Case Study Solution, U.S. company to reconsider connector operations at its facility in Sunnyvale, a Japanese competitor announces plans to build "Ultimate" plant in the United.
Quality and efficiency is the key to American Connector Company (ACC) success. ACC has lost market portion to DJC over the recent old ages. which will be exacerbated if DJC opens a production installation in the United States.
DJC has gained much cognition from its Kawasaki works and is traveling to come in [ ].Download