Problem In The Supply Chain

Introduction

Table of Contents

The project aims at choosing a business, identifying a problem in their supply chain and the possible solutions. The business chosen is Ducommun Technologies based in Phoenix. The business is an aerospace firm that has multiple manufacturing plants that mainly build computer hardware components for missile, satellites, military and commercial aircraft.

Problem in the Supply Chain

The problem is late supplier delivery on the production schedule. The firm needs to build a Light Dimmer for a Boeing 737. The product needed to effect this operation is a PCBA (Printed Circuit Board). Printed Circuit Boards are used to give mechanical support and connect electrical components by use of conductive tracks, pathways and signals. PCBAs are highly reliable and cheap. They require a great layout effort and high starting costs. The supplier of PCBA to Ducommun is called IEC. There has been a delay in supplying the product due to the claims that the required resources are scarce and there are difficulties in identifying suppliers (Blanchard, 2007).

This problem may lead to imbalances between demand and supply. For instance, it may create a capacity shortage in the following period since the delayed orders will be competing for the capacity that may be given to other orders. One of the key solutions to this supply chain problem is to take pre-emptive action. It is essential for a company to sit down with their supply chain partners and discuss several issues such as barriers, direction, metrics and flexibility (Blanchard, 2007).

Reference

Blanchard, D. (2007) Supply chain management: best practices. John Wiley and Sons.

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