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Homework #1

Prepared by : Mahmoud Omar

Student # 200202342

Question # 1
ACC : the competitive strategy depends on both Quality and Customization

Operation strategies:
1- The planet is divided into 5 different areas: terminal stamping, terminal plating, plastic housing
and molding, assembly and testing, and packing.
2- Work in progress schedule (WIP )
3- The plant is capable of producing 4500 models ( wide range and customizations )
4- Flexibility of changing schedule to accommodate rush orders and requests from important
5- Using expensive computer system and software for production scheduling
6- Sales and finance have power on production schedule

Question # 2
DJC: the competitive strategy depends on the close link with the major Japanese computer and
telecommunications companies. Secondly, the design emphasizes on simplicity and manufacturability
over innovation.
Operation strategies:

The plant was divided to four large cells each cell produce different type of connector.
The plant was very highly automated , minimum number of WIP
Close relationship with few suppliers that has to meet quality standards
Limited number of models
Lower work force
Sales and finance have only small power over production.

Question # 3
The two companies have different strategies in terms of competency and operations. However, the DJC
will be considered as a threat to the ACC in America for the following reasons:
1- DJC has a lower cost compared to ACC by almost 30% ( see exhibit 7 page 18 )
2- DJC has lower Lead time than ACC.
3- DJC has higher productivity rate for the employees compared ACC and better plant utilization to
ACC ( see exhibit 6 page 17 )
4- DJC will have the advantage to get lower prices for raw materials from US since it is less
(compared to japan by 40% which will lower the cost )
5- DJC has less defect product rate than ACC ( 1 in 100000 compared to 26000 per million )
6- DJC produces much more than ACC (700 million compared 240 million ) (see exhibit 5 page 17)
7- ACC has a bigger range of product and the ability to customize compared to DJC
8- ACC has already established relationships with American Clients which can be considered as an
advantage over DJC

Question #4

I believe ACC should invest more in automatic machines which shall increase the productivity.
Moreover, it will decrease labor cost. More automation shall also decrease the defect rates and will
reduce lead time for delivery to clients. ACC should also try to reduce lead time for production by
reducing the flexibility of schedule.

In my opinion, DJC shall have a one more section for customized products which will increase the chance
to compete with ACC in the market interims of variety and customization. Moreover, DJC should
establish strong relationships with raw materials suppliers at USA since the raw materials there is less by
around 40%. This can give an advantage for them.