A Simple Transformation Process Diagram of a Car Repair Shop:
Inputs Transformation Process Outputs
Cars Diagnosis Repaired Cars
Parts Repair Satisfied Customers
Installation
Testing
Tools
Knowledge
Equipment
Labor
The target audiences of the websites of the professional organizations listed in this
chapter are employees working in operations and supply chain positions who want to
continue to learn from the best practices of other organizations and add to their ability
to excel in this challenging field. There are organizations focused on many different
areas of operations and supply chain management including purchasing and logistics.
Some of the careers listed in the web sites that are mentioned in the chapter are
analyst, customer service manager, international logistics manager, production
manager, sourcing manager, and systems support manager. All of these positions
sound appealing. (Answers will vary)
According to the Mission Statement on the website, "The Supply Chain Council (SCC)
is a global, not-for-profit trade association open to all types of organizations. It
sponsors and supports educational programs including conferences, retreats,
benchmarking studies, and development of the Supply-Chain Operations Reference-
model (SCOR), the process reference model designed to improve users' efficiency
and productivity. The Council is dedicated to improving the supply chain efficiency of
its practitioner members." Some of the members of the organization include
Accenture, American Red Cross, BP, and Business Objects.
Question 1.)
Upstream Suppliers Downstream Suppliers
2nd-Tier Suppliers 1st-Tier Suppliers Leap Frog Distributors
DuPont Co. (Tyvek) Capable Toys Leap Frog Air Freight Carriers
Microchip Suppliers Fast Boat Carriers
Tool Manufacturers Other Carriers
Plastic Resin Suppliers
Speaker Suppliers
Touch-Membrane Suppliers
Question 2.)
The data that ultimately led to LeapFrog's decision to increase production levels of the LittleTouch LeapPads were the
sales numbers showing 360 of the product during it's introductory weekend. The data came from retailers who shared
their real-time sales data with their suppliers in order to better manage customer demand. In order to best meet the
demand of the customers during the holiday season LeapFrog started talking with Capable Toys about increasing
production within days of the initial sales numbers.
Question 3.)
The parts of the production process that limited production at Capable Toys were the sets of tools that created the
molded plastic parts. Initially Capable Toys only had two sets of tools that were capable of producing 3,500 units per
day. Capable Toys reacted to the increase in demand by designing and building additional sets of tools, each
allowing faster production and lowered numbers of defects than the originals.
Question 4.)
Some of the material sourcing challenges facing LeapFrog and Capable Toys included the limited supply of
microchips, shortage of Tyvek paper, and the need for additional plastic resin. They were able to meet these
challenges by sourcing from additional partners, finding additional channels of supply, and increasing orders from
existing suppliers.
Question 5.)
Because of the urgency of getting the toys to the retailers as quickly as possible, LeapFrog turned to air freight as well
as express ships. These methods shortened the time to market for the LittleTouch LeapPads and helped establish
the product line in the market but they had the weakness of being very expensive and reducing the profit margin. If
LeapFrog would have been able to produce the extra units in August instead of December, then they may have been
able to use more standard and less expensive ocean shipping methods.
Downstream Suppliers
Retailers
Target
Kmart
Toys "R" Us
Wal-Mart
he LittleTouch LeapPads were the
ta came from retailers who shared
mand. In order to best meet the
apable Toys about increasing
e sets of tools that created the
able of producing 3,500 units per
ditional sets of tools, each
ed the limited supply of
were able to meet these
y, and increasing orders from
apFrog turned to air freight as well
LeapPads and helped establish
nd reducing the profit margin. If
ember, then they may have been
