ACC finance teams were also not allowing funds to upgrade their technology. It needs to follow pull strategy for of raw materials in production line. It implies that there is quality control inspection required at each process level unlike the current practice of end product inspection.
Flawless raw material needs no testing and American connector company case of stringent standards for raw material eliminated the trouble to check every batch of raw materials. In Japan raw material cost is twice as much high as in America. 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.
It can be controlled using increased amount of machinery to handle different moulds. Due to batch production system in ACC, there were changes required in production line every time product was changed which lead to less efficiency and lower expertise in churning out a product.
There was quality issue which was leading to overall effect on productivity and profitability decrement. DJC maintained low raw material inventory, where they ordered the raw materials as per requirement and pull strategy for manufacturing.
This issue was not there with DJC continuous production process with lesser number of product variations. It would help in developing in-house machinery to have a technological edge over competitors.
This would also affect the efficiency of the operations. How much of the difference is inherent in the way each of the two companies competes? This saves time and also introduces new designs. The location of the company which played a equally important role for eliminating transportations and logistic baggage.
How much is due strictly to differences in the efficiency of the operations?
ACC needs to follow similar model for operations set up in the organisation to promote production oriented structure and greater balance. The company location was chosen such that it was near the major Japanese electronics companies and also near the major raw material suppliers.
What accounts for these differences? 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.
The moulds producing less no.American Connector Company 1. AMERICAN CONNECTOR COMPANY CASE STUDY XIMB students’ presentation 2. A Brief Comparison 2 ACC Quality and Customization Design and Performance 52% to 43% decrease in gross margin from DJC Highly efficient manufacturing Attention to customer needs No customization Never.
American Connector Company Case Study - Download as Word Doc .doc /.docx), PDF File .pdf), Text File .txt) or read online.
CASE OVERVIEW American Connector Corporation (ACC) is one of the 28 suppliers of electrical connectors. attach wires to outlets.
wire-to-outlet. Standard designs were established mainly by International Institute of Connectors and. American Connector Co. is forced to reexamine operations at its Sunnyvale plant when a Japanese competitor announces plans to build an "ultimate" plant in the United States.
Case examines issues related to benchmarking a competitor's manufacturing capabilities and productivity. Allows students to compare two companies' manufacturing strategies.
Case Summary The case describes the Problem of American connector company, which was struggling with the quality issues with its Sunnyvale plant and a probable threat of DJC setting up a plant with a quality standards of its Japans Kawasaki plants.
Oct 05, · american connector company case study Q1 How serious is the threat of DJC to American Connector Company? Answer - The threat of DJC to American Connector Company is very high.Download