Case 14 Digital Equipment Corporation

1
Case 14Digital Equipment Corporation

• Jacqui Deegan
• Chris Corey
• OM 450

2
The Endpoint Model

• Evaluation
• Cycle Time
• Virtual Integration vs. Vertical Integration
• Approaches to reduce lead times
• GM Model
• Generic Industry
• IBM Model

3
The Endpoint Model Cont.

• Relationships
• DSM to customers
• DSM to suppliers
• Possible Risks

4
The Endpoint Plan

• Evaluation
• Sequence and Programs
• MRPII

5
MRPII

• A computer-supported planning and scheduling
  system that links a firms business, operating,
  and financial systems.
• Requires all departments to use the same set of
  numbers
• Provided management with a tool for monitoring
  performance throughout the manufacturing process.
  
• Rated Class A to Class D

6
MRPII The Augusta Plant

• June 1985, 7 group managers in the CSM group
  signed an agreement in which they agreed to
  achieve a Class A rating by June 1996.
• The plant in Augusta, Maine was one of the plants
  that was selected.

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Advantages and Disadvantages of MRPII

• Management discipline
• Accountability in demand forecasts
• Accurate inventory records
• Careful planning and scheduling of maintenance

• Intricate system
• Hard to implement
• Dealing with change

8
Problems with the old system

• Old system had a variety of computer-related
  systems in place each was a discrete entity
• Software was tailored to the needs of each
  individual area
• Disjointed information flow
• MRPII would be based on a uniform software
  allowing each unit to have a uniform set of
  numbers and allow each plant to share information
• MRPII would change the jobs of managers and
  employees of different levels.

9
Next Steps

• Lessons learned by DEC
• Recommendations for the future
• MRPII vs. JIT