Professional Documents
Culture Documents
A Brief Comparison
2
ACC
DJC
No customization
Continued
4
Low Cost
Product innovation
Less inventory
Reduced workforce
No start-up & shut-down
cost
Standardized products
Location advantage
Connectors packaged in
tape & reels
Low Cost
Product innovation
ACC: Sunnyvale
Reliability
DJC: Kawasaki
Latest production
equipment used
High defective rates on
new products, but no
defective product is sent
to customer
Flexibility
Flexible
Customized products
Production schedule
changes often
Reliability
Flexibility
Emphasize on Marketing/Sales
Invest in new technology
Increase customization and number of
product variants
Should be more flexible
Production scheduling should be
improved
Continued
9
Policies of DJC
Cost savings will be high (Cost per
1000 units will be 20.241)
Impact on ACC
Higher margins for DJC. Thus profits
of DJC will be higher compared to
ACC. (Cost per 1000 units will be
33.79)
ACC will lose its customers.
Recommendations to ACC
10
Suggested Change
Current Scenario