Anthony Acal Marcos BSBA4A Management Production / Operations Management ACLC College Taguig Case Study III: The

he Perfect Order

I.

Define the Problem a. In late 2003, Qualcomm's CIO Norm Fjeldheim started seeing signs that the demand for mobile phone chips was rising much faster than expected. Consumers around the world were snatching up mobile phones at an unprecedented rate, and manufacturers of the popular handsets were scrambling for more chips. The unexpected mobile phone frenzy hit its supply chain where it was most vulnerable. According to Fjeldheim, their customers were not getting everything they asked for and they could not increase our supply, and some deliveries just weren't possible; noting that demand for the chips rose 37 percent in one year. Because of increasingly complex supply chains, the company was out of stock, which the company not only missed an opportunity to significantly boost revenue but also was forced to re-evaluate the way it did business.

II.

Identify Areas of Consideration a. Purchasing includes Buyers and Purchase Orders b. Production and Operations capability to produce maximum or number of products, process and flow c. Inventory items from Raw Materials to End Products d. Order or Supply Chain involves processes, deliveries e. Marketing Supplier and Customer relationship f. Sales revenue and profit

III.

Determine Alternative Course of Action a. Since the company already identified that the demand for mobile phone chips is continuously and rapidly increasing, the company should applied the technique of Forecasting. The company enable to forecast the following: i. Number of Production Product Output ii. Number of Suppliers and Customers iii. Time and Availability iv. Sales b. The company should acquire new technology for Supply Chain Management. Supply Chain Process should not be at the back of the company for it plays a vital role in doing business. The company should purchase software for supply, inventory, orders and sales which help them to monitor their products. The data will be a big help for Forecasting.

c. Because of the panic for the supply or demand of the customers, the company should collaborate immediately. Each department of the company is very important in improving the Supply Chain Process. Since the major concern here are the Operations / Production, information, ideas and comments of different department is important in demand-planning sessions. d. Feedbacks from customers are important in this issue. The company should conduct surveys and test in order to deliver the needs of their customer and to avoid out of stock, which is a critical issue in both company and its customers.

IV.

Conclusion and Recommendation a. Forecasting are vital inputs for the design and the operation of the productive systems because they help to anticipate the future. b. Cooperation and collaboration plays a significant role in achieving companys target. Information Technology, Finance and Accounting, Production and Operations and others will contribute a lot in solving the problems and critical issues of the company. c. We are living in a world that is changing. Technology affects business. Because of the advancement of technology, the company should adapt high-end equipment and software that will help to improve their business. d. Conducting surveys, tests and gathering information from the customers will be a great help in improving the Supply Chain Management of an organization.

V.

Bibliography a. http://www.cio.com.au/article/181124/perfect_order/? b. Operations Management: An Asian Perspective is an adaptation of Operations Management, 9th Edition by William J. Stevenson