Recommendations

Concentric's AB purpose is to design, develop and manufacture high quality, customer focused solutions for hydraulic and engine applications within the company global end markets. Throughout our research and applying concepts learned in our previous classes our group generated the following recommendations: 
  1. Transition from Make to Order to Assemble to Order 
    1. Hof Plant Empowerment 
      1. Concentric Hof needs to have a voice in suppliers negotiations in order to become more productive. Since many of he raw materials are supplied from overseas it has become a problem for the company to maintain a Just-in-Time inventory system due to the long supply chain time.
      2. Develop standard safety stock that will allow for products to be assembled in a short period of time to avoid long lead time. 
      3. Develop standard pieces of products that can later be assembled in any variation.
  2. Improve Forecast Accuracy
    1. Seasonal and Client Forecast
      1. Concentric AB utilize seasonal and client forecasts to manage it's ordering for raw materials to assemble it's products.
      2. Data shared by Mr. Hertkorn helped us conclude that 20% of losses resulted in the accuracy of the forecast.
      3. There is also a conflict between the sales forecast as well as customer's forecast that lead to over production.
  3. Robust 3rd Party Logistics
    1. Analyze the benefits of holding a 3rd Party Logistic in Hof
      1. Analyze the most popular product sold by the company that can be assemble/pre-assemble that could be shipped out to clients in order to reduce lead times.
      2. Utilize forecasts to understand the demand of the popular products to the market.
  4. Apply Radio Frequency Identification Device (RFID) to other raw materials
    1. Contact current RFID company to examine other raw materials. 
      1. By examining the different ways RFID can be applied to different raw materials the company will be able to track the usage of its materials and have a productive management of purchasing.
  5. Customer Satisfaction Analysis 
    1. Implement a quantify system for customer satisfaction
      1.  Create a more detail analytic system that will analyze the satisfaction of the product to the customer 
      2. Quantify client retention
      3. Validate loss of revenue to justify inventory system 
  6. Product Uniformity
    1. Assemble to Order 
      1. Examine popular products that can be easily pre-assemble. 
      2. Analyze the benefits and threats from being assemble before an order placed. 

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