Question

The computer hardware company requires all of its chips purchased from its supplier of computer chips to meet specifications of 1.2 cm with the margins of error of plus and minus 0.1 cm. Based on the computer chip supplied last month, the mean length of a computer chip was 0.9 cm. What are the elements that the production manager should consider in determining his company's ability to produce chips that meet specifications?

1. Do the chips that were supplied meet the desired specifications?
2. What reasons would you provide to justify that the supplier is meeting specifications?
3. How will this decision impact the supplier's sales and net profit?

Answer 1

Elements of production manager should be keeping in mind will be as follows-

A. Proactive production and placements of orders to the suppliers

B. Preparation of products which will match standard with the consumer requirement

C. Continuous coordination within organisation in order to produce the desired product

the chips that were supplied did not meet the desired specification because they were not meeting the prescribed requirement of customers

Supplier is trying to to match the orders but it is not able to match cwith required specification so I would not be in for supplier.

This decision will impact the supplier sales and profit because this will lead to ordering in advance and it will help the supplier in in joining the payment in advance also in order to increase the overall sales and profits