This news release refers to adjusted earnings before interest, taxes, depreciation and amortization "adjusted EBITDA"adjusted cash flow from operating activities "adjusted cash flow" and total enterprise value which are financial measures that are not defined by Generally Accepted Accounting Principles "GAAP".
ACC and DJC each had distinct strategies and practices related to the operations and manufacturing within their respective corporations. Like most of the Japanese corporations DJC relied mostly upon efficient manufacturing processes as the basis for their competitive strategy and as the means to achieve their annual profit goals.
ACC relied mostly upon their ability to offer customized connector solutions and high end products. Faced with the threat of a highly efficient competitor launching a nearby production facility, ACC must develop a plan of action to limit DJCs intrusion into their established North American market.
By answering the questions mentioned in the following slides we will try to explore the above mentioned issue. Capacity and technology was added as and when required.
Kawasaki had a dedicated production unit for each of the four types of connectors developed, thus in effect having 4 production areas. In comparison, at Sunnyvale, the whole production area was used to develop all products.
In terms of packaging, the Sunnyvale plant was quite flexible whereas at Kawasaki, packaging was standard, and was different from the industry standard. Sunnyvale plant maintained a finished goods inventory of 38 days, whereas Kawasaki maintained a finished goods inventory of 56 days.
In Kawasaki, the production schedule was fixed and would not change under any circumstance or for any special order from customers.
This gave them an upper edge, in terms of controlling costs. Whereas, in Sunnyvale, although policy stated that the production schedule for any given day was to be decided upon 30 days in advance, actually the schedule was changed quite frequently to meet customer demands.
Thuswhile the buzz word for the Kawasaki plant was cost cutting, for the Sunnyvale plant it was flexibility. In terms of products, the Kawasaki plant stressed on continuous and reliable operations and low raw materials cost. This was because, in Japan, the cost of raw materials was twice as high as in the United States.
So while the Kawasaki people studied and adapted designs from American companies, they did away with most of the extras that they felt did not add any value for their customers. Thus, despite high difference in raw material prices, Kawasaki cost per units were only slightly higher than Sunnyvales cost per unit connector.
In terms of process, for Kawasaki, the idea was to concentrate on automation. Thus a lot of pre-automation work was performed, in order to perfect the efficiency of the automated process.
This was different from Sunnyvale. At Kawasaki, technology used was old and reliable upgraded in-house, as compared with Sunnyvale, where in the growth years heavy investment had been made into buying new technology as per requirements, which would lose its edge in a few years time.
Kawasaki identified moulding as a key area, and investments were accordingly made. Required experts were hired for the moulding technology group, the moulds received regular maintenance, besides basic daily maintenance.
At Sunnyvale, this was merely bought from vendors as standards and requirements changed.
There was a dedicated Technology development division at Kawasaki to coordinate between various divisions in product planning.
In terms of hierarchy, the senior management took long term decisions, but staff was given freedom in day to day decisions. In Sunnyvale, each division was headed by a supervisor who reported to a director.
Impact of manufacturing strategy of each plant on its ability to achieve different competitive objectives, such as low cost, high reliability, flexibility and product innovationDJCs Kawasaki Plant The chief goals of the kawasaki plant are:: Proximity to major Japanese electronics companies Proximity to major raw materials suppliers Availability of young, highly skilled workersDJC Corporation, dedicated to process positioning and robust systems engineering, required that the Kawasaki facility be highly automated.
The pre-automation process helped analyze process flows, worker movements, and raw material consumption. DJC also believed it better to utilize an older, more established process, rather than implementing newer unproven processes.
Continuous improvement of existing processes was highly relied upon. Flexibility-Kawasaki plant had complete control over its schedule and mix and refused to make changes for unplanned orders.
It removed any design feature that didnt add value to the customer. This helps to accommodate rush orders and requests from more important customers.
To maintain flexibility the company tried to expand capacity ahead of expected growth in demand. Till it used the latest production equipments to improve quality.
After ,the finance people hasnt let the manufacturing people buy the latest equipments due to the fall in demand. The company used to ensure that the defect shouldnt exceed 1 defect per 1 million units.
It met customer delivery requirements with quality and on time. It used to cater to computers, telecommunication equipments and scientific instruments sectors.Solar Panel Company Solar Panel In Calculator Solar Panel Installers Omaha Solar Panels For Home For Sale On Ebay Average Cost Solar Panel For Home I was thinking for the same thing and I made a decision to investigate this idea, and I uncovered three common myths .
DJC and American Connector Corporation were companies in the second tier of the market, with sales in the $ million to $ million range. IMPACT OF DJC’S ENTRY INTO THE US MARKET The year witnessed a sharp decline in sales (%).
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