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o perations management how notebooks are made

o perations management how notebooks are made. Introduction The Video Analysis & Methodology Analysis of the Supply Chain Lean Systems Quality Control Forecasting/Inventory New Product Development Legal Perspectives References. t able of contents. Video - mead school supplies.

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o perations management how notebooks are made

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  1. operations managementhow notebooks are made

  2. Introduction The Video Analysis & Methodology Analysis of the Supply Chain Lean Systems Quality Control Forecasting/Inventory New Product Development Legal Perspectives References table of contents

  3. Video - mead school supplies

  4. First Tier – E-Mails to Different Firms Second Tier – Financial Statements filed with the SEC Third Tier – Industry Analyses, News Reports, Westlaw Database Analysis & Methodology

  5. supply chain analysis

  6. Paper Suppliers From all over the world Increasing gradually from Brazil & China Wood suppliers  Paper suppliers  Mead supply chain analysis

  7. supply chain analysis • Notebook-Producing Machinery Suppliers • Mainly from India & China • Extremely fixed machinery • Part Suppliers  Machinery Suppliers Mead

  8. 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 Dependence The ten largest distributors take up 49%, and Office Depot & Staples account for 24% of the total sales. supply chain analysis

  9. Automated production process Machines do most of the work Problem? Equipment failure ⇒ Quality risk ⇒ lost of customers/profits, creates waste, delays production schedule Solution Hire workers Quality inspection (random selection) Mechanics on site for maintenanceand inspection of machinery Emergency reporting system Quality control

  10. Financial statement explicitly mentions demand seasonality Peak Season : back-to-school forecasting • Why? Back to School Season! Third Quarter in America, Fourth Quarter in Australia

  11. forecasting Question : How can we reduce demand seasonality? Global Expansion 3rd Q America, 4th Q Australia + Asia/South America : 1st Q Back to School Season / ex. Moleskine With global expansion into Asia/South America;can reduce seasonal trends

  12. Inventory Current Situation : Demand Seasonality Influence on Inventory Inventory level increased during light demand periods (first, second quarters) for preparing for heavy demand periods(third, forth quarters) → Makes inventory holding costs high How to reduce Inventory Holding costs Capital, storage and warehousing, insurance if forecasting correctly Maintaining quality of inventory and managing if using EDI technology Must innovate the inventory system.

  13. Inventory Forecasting Correctly Notebook industry has constant market size → Mead uses past data By forecasting correctly, Mead can choose suitable storage and warehousing. Can reduce fixed costs related to inventory. Implement EDI Technology Using electronic document interface (EDI) technology results in faster turnaround, less paper work, and savings on handling By using EDI technology, Mead can reduce inventory costs by having more information about inventory

  14. Nature of MEAD products School and office suppliers with no distinct features No breakthrough/innovative product lines Why is MEAD successful? Dominating N. America as a first mover Consumers do not expect much innovation new product development: Analysis

  15. Suggestion 1 Eco-friendly, high quality products new product development

  16. Suggestion 2 Business-purpose notebooks new product development 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.

  17. Potential danger 1 : Injuries and accidents Safety measures are needed Increase employee satisfaction and morale Potential danger 2 : Harmful chemicals Some paper mills have higher cancer rates due to Abestos, a dust-like fiber Meet governmental requirements legal issues

  18. ACCO Brands Income Statement Q3 2012 ACCO Brands Financial Statements 2010 The Stationary, Office and School Supplies Market in the EU, CBI Market Survey 2009 Trends in Manufacturing Paper Products, Accenture Research 2008 KMAC Brand Power Analysis Lineomatic Graphic Industries Westlaw Legal Database references

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