Business Studies
Please re-write the following answers to these questions below and add 3 additional references. All references should have DOI:
Hewlett-Packard Company: Network Printer Design for Universality
Postponement is a great example of a push-pull strategy, or delayed differentiation in product design. A corporation designs the product and the manufacturing process so that decisions regarding which exact product is being created can be postponed for as long as possible. When demand is identified, the manufacturing process begins with the production of a generic product, which is then differentiated to a specific end-product. Forecasts are more accurate and inventory levels are decreased since demand for the generic product is an aggregate of demand for all its corresponding end-products (Simchi-Levi et al., 2021).
In what way is a universal power supply a postponement strategy?
Customer demands are increasing, cost pressures are expanding, and the business climate is continually changing, compelling supply chains to find ways to increase efficiency while remaining adaptable to changes in the global marketplace (Jabbarzadeh et al., 2019). HewlettPackard will be able to postpone the printer engine specification by at least two months
throughout the design phase if a universal power source is chosen. Previously, the main engine of printers in North America and Europe required different power sources and fusers. North American printers required a 110-volt power supply, whereas European printers required a 220-volt power supply. Hewlett-Packard ‘s Japanese partners manufactured the printer engines in
Japan and due to the lengthy lead times for engine construction, Hewlett-Packard was required to describe the specifications of the two types of printers at least fourteen weeks in advance. The incorrect predictions for the older printer models resulted in either an excess or a shortage of inventory. Those printers needed diverse power supplies and it was difficult to move items
across markets to be updated and sold as the processes required a wide range of supplies.
What are the costs and benefits of a universal power supply?
The universal power supply is a new product development that includes a next-generation network laser printer. This product will raise the organization’s costs and benefits. The universal power supply will cost approximately $30 per device. Additionally, the company will incur marketing expenses. Costs associated with establishing the proper voltage and power supply for
the operation will also be incurred. While there are several expenses, there are also numerous benefits. These benefits include increased profit in less time, increased flexibility in responding to orders via the supply chain’s universal power source, and zero reconfiguration costs.
How would such costs and benefits be different over the product life cycle?
Products have a natural lifecycle that follows the same patterns much like a human’s life cycle. Products go through periods of growth, maturity, and eventual decline when they are first released. The product life cycle is a well-known term and understanding how it works can help you determine pricing and business strategy. The costs and benefits of the universal power supply alter at different points of the life cycle in response to changes in demand, which
fluctuates at every stage of the life cycle.
Besides deciding on a universal power supply, what other operational improvements can you suggest to Hewlett-Packard Boise?
The Boise location could focus more on demand forecasting techniques for better operations. Another recommendation would be that they use a few more/new suppliers to supply the printer engines and fuser components necessary. This will allow for more healthy competition, which will in turn cut lead times and costs while also improving quality because of the nature of the company. It can also conduct a sales audit at the regional level to help reduce
stock out and the costs of transshipment.
What would be your recommendations about the adoption of a universal power supply?
Since organizations now operate on a global scale, Hewlett-Packard should incorporate the universal power supply into all its products because of the quick discovery and development in technology and science, as well as consumer characteristics in pursuing the newest technology and style, technology-based products have a shorter life cycle than other types of products. Due to the shorter innovation cycle of technology-based commodities such as mobile phones and computers the preceding generation becomes obsolete faster, both functionally and psychologically, than the subsequent generation (Gan et al., 2015). Though developments in the global marketplace there are signals by the presence of such a need in universal developments. As we have seen in this case study, Hewlett-Packard has implemented a $30 increase in pricing, with the possibility of more increases based on extra expenditures incurred along the road. However, the advantages of doing so can have a greater positive impact on the global marketplace. Hewlett-Packard can become more strategic and keep
its competitive advantage in the market by offering additional things as universal.
Conclusion
There are so many facing the battle postponement, delay, or procrastination. Yes, for products and companies like Hewlett-Packard this is and can be a good thing however in a personal or service-oriented atmosphere being on time is critical. When we need the cable man to come, we deal with a window of “they will be there between the hours of 8 and 2” but what if the voice said two and a half months? Could we wait? Would we wait? It has been over 2000 years since Jesus ascended into Heaven and gave us the comforter. How diligently have we been waiting? Look at the shape this world is in today. To defeat the enemy, we must work together as a unified group. The opponent is at our mercy, and we must demonstrate who is in charge. We know that the adversary is coming, but to defeat him, we must embrace love, compassion, and forgiveness. Jesus came to give us the strength to live victoriously. The hindrances must be stopped, and it is time to get busy with the work of the Kingdom of God.
ANSWER
Hewlett-Packard Company: Network Printer Design for Universality
With increasing customer demands and manufacturing firms find it challenging to hold finished products inventory, market and industry frontrunners are focusing on ways to find solutions to improve efficiency while being agile to react to the demands and variations in the universal marketplace. One of the inventive ways to solve supply chain problems has been the postponement strategy, also known as delayed differentiation (Prataviera et al., 2020). This is an adaptive supply chain approach that allows firms to increasingly lower inventory while enhancing client service. A company using postponement strategy design the product and the manufacturing process that will be used once they identify demand; the manufacturing process begins with the generic product, which is then differentiated to a specific end product. The postponement strategy has effectively improved the inventory levels and more accurate forecasts.
In what way is a universal power supply a postponement strategy?
The universal supply is a project by HP to present the succeeding generation of printers. Hewlett Packard in European markets have a 220-volt power supply and North America has a 110-volt power supply. This has led to two dissimilar manufacturing supply chains for the printers and long lead times for engine manufacturing. The universal power supply is a postponement strategy since they delay the product differentiation of the printers at a point closer to the consumers. Ideally, the manufacturing specifications were to be done 14 weeks in advance for the Japanese manufacturer to build and another four weeks for shipment and customs clearance. HP could also forecast the market many weeks in advance to move the product to high-demand areas. HP could also utilize the four-month global demand estimates to move the universal power supply while forecasting particular markets.
What are the costs and benefits of a universal power supply?
The universal supply power includes a next-generation network Laser printer, leading to the organization’s costs and benefits. The universal power supply has an additional cost of $30 per device. They sell 450,000 units that will cost about $13.5 million due to additional material costs. The company will also incur additional marketing expenses. Another cost for the company would be finding more suppliers who will provide a universal power supply. For instance, when the demand rises, a single supplier may fail to meet the demand, leading to deliveries, stockouts, and longer lead times. Stockouts can lead to consumers purchasing from their competitors, which will affect the loss of sales for the printers and other accessories offered by HP.
Universal power supply will increase the revenues of HP in less time while also increasing flexibility in responding to orders. The Viper’s power supply and fusers had no modifications and were static. HP will also benefit from the postponement strategy where the production will be postponed for at least two months, thus allowing for a better forecast. Through the universal power supply, HP will aggregate the demand forecasts by combining both markets. HP will also reduce the chance of losing sales and improve its inventory level since the inventories and demand will be more accurate (Jafari, Eslami, and Paulraj, 2022). The customer service will also increase due to better forecasts. The demand plans will build the forecast to deliver what the consumers want. For instance, the printers can be shipped from one market to another, and no major reconfiguration is required.
How would such costs and benefits be different over the product life cycle?
The inventory shortage is high when the product is first presented into the market and can be higher when its publicity is heightened with time. In the final phase of the product life cycle, the inventory shortage is lower due to the anticipation that a new product could be launched. When a company is launching a new product, the reaction is uncertain, thus making forecasts for the market need challenging. However, in the maturity stage of the product life cycle, the company can accurately forecast the demand, thus staying competitive and innovative while introducing a new product in the market. Accurate forecasts will lead to significant cost savings and reduced inventory levels in the product life cycle.
Besides deciding on a universal power supply, what other operational improvements can you suggest to Hewlett-Packard Boise?
HP should focus on the warehousing costs which increased during the ramp-up stage. They need to adopt a new approach such as just in time philosophy which will reduce the warehousing cost (Suleiman, Huo, and Ye, 2021). They should also focus on geographic positioning rather than having a single storage place. Different geographical locations will reduce customer delays and improve customer satisfaction. In terms of operational improvements, they need to focus on recent technology such as 3D printing despite the technology being expensive due to the non-reusability of the materials. Adapting the latest technologies does a business up to date and competitive in the market.
What would be your recommendations about the adoption of a universal power supply?
The decision to adopt a universal power supply seems beneficial to the company. However, during the adaptation of the universal supply power, they need to analyze the impact of additional costs. The company needs to send a few samples of products before the launch to help forecast what is expected in the market. This will prevent stockouts and improve inventory management to succeed the operational procedures.
References
Jafari, H., Eslami, M. H., & Paulraj, A. (2022). Postponement and logistics flexibility in retailing: The moderating role of logistics integration and demand uncertainty. In International Journal of Production Economics (Vol. 243, p. 108319). Elsevier BV. https://doi.org/10.1016/j.ijpe.2021.108319
Prataviera, L. B., Perotti, S., Melacini, M., & Moretti, E. (2020). Postponement Strategies for Global Downstream Supply Chains: A Conceptual Framework. In Journal of Business Logistics (Vol. 41, Issue 2, pp. 94–110). Wiley. https://doi.org/10.1111/jbl.12250
Suleiman, M. A., Huo, B., & Ye, Y. (2021). Linking supplier JIT to flexibility performance: the moderating impact of advanced manufacturing technology and human resource empowerment. In Industrial Management & Data Systems (Vol. 121, Issue 11, pp. 2237–2253). Emerald. https://doi.org/10.1108/imds-02-2021-0096
