Case study
MEDITECH SURGICAL /case/
Question 1
-What are Meditech’s problems in introducing new products? In manufacturing All
products?
Meditech introduces one new product per month and customers demand so high, their
production capacity not enough. It was to create a long-term expectations of customers. Most
of the new products are updated of old products. This situation reduced the life cycle of
products. This company was not good demand and supply process. Demand exceeds the
capacity to produce products made by the company's difficult situation also delivery service
was poor. Customers had to wait a long time (6 weeks) to receive an order. It was affecting
this company’s reputation.
Manufacturing problem was lacking in the forecasting method and inconsistency in the
production line. The production variance is higher than the demand variance. (high level of
inventory)
Question 2
-What is driving these problems, both systemically and organizationally?
SYSTEMICALLY
ORGANIZATIONALLY
Panic ordering
Mental fear to reduce inventory
Poor documentation
Customer service manager believes that
demand is unpredictable
Decentralized nature
Independent department
Lack of standardization
No designated department for forecasting
demand
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Case study
Question 3
-Why is the customer service manager the first person to recognize the major issues?
Because customer service manager is the first person who contact to customer and solve their
problems. Each new product introduction has resulted in a nightmare of supply problems.
Dan franklin felt that customers were beginning to tire of the poor service resulting from each
introduction. Through many meetings with hospital material managers, Dan began to realize
the full scope of his customer’s frustration. Most importantly, meet the customer’s interest
and keep high level customer satisfaction.
Question 4
-How would you fix these problems?
I would reduce product’s new assortment
I would designing best selling supply management and keep high service levels.
I would reduce slow moving products
I would work to reduce the assembly cycle time from the current level of 2 weeks.
I would focus in improving supplier lead time which is presently 2-16 weeks.
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