Alpha Technologies - Business Consulting Project
|Project Client:||Alpha Technologies
|Project Description:||Lead Time Analysis
|Students:||Chris Smith and Victor Weng
|BCIT Program:||International Business Management
Alpha Technologies Ltd. (ATL), based in Burnaby, BC, is a global leader in the design and manufacturing of power solutions. Alpha Technologies Ltd. has many operations and vendors internationally. ATL recognized the need to evaluate vendors’ performance to determine gaps between standard and actual lead times.
ATL determined ten vendors from three countries (China, US, and Canada) to be the focus of this project. A total of 94 items from the 10 vendors were analyzed using a descriptive statistical approach. Due the large amount of data, the team created an Excel Macro Model to generate the statistical information automatically.
The findings from the analysis concluded there was a wide distribution of data for all vendors. The mean and standard lead times were not significantly different with the exception of three vendors from Canada. Scatter plot diagrams were created to provide a visual representation of the data and identify any trends.
Several alternatives were considered to improve ATL’s vendors’ performance. Final recommendations were derived through a systemic approach of rating and comparing the alternatives with important factors as defined by Alpha. The final recommendations are as follows:
- Improve data collection by inputting modes of transportation for each orders and Lead Time Performance Codes for orders that require more lead time than the standard lead time.
- Perform vendor lead time analysis on a quarterly basis to identify and respond to vendors’ performance
- Review safety stock levels that could potentially save costs and increase service level
The recommendations provided will strengthen Alpha’s overall supply chain by improving vendors’ performance and providing more accurate data for future analysis and root cause identification.