Professional Documents
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AMERICAN •
•
•
SHREYAS RASEGAONKAR | 1811353
MANASA REDDY | 1811355
HARSHAL WANKHEDE | 1811368
COMPANY
[Document subtitle]
1) What is the strategy of DJC and American Connector?
DJC and American Connector differ variably in terms of strategy. Some of the points
of differentiation are:
a) Mode of Operation:
The mode of operation for DJC is continuous whereas American connector works
on batch processing. This leads to lesser start up and shut down costs for DJC.
However, American connector enjoys advantage in terms of number of variety of
connectors produced (4500 in1991) due to batch processing.
b) Capacity utilization:
Due to continuous mode of operation, DJC enjoys higher productivity of 7.45 in
terms of connector output per employee (in millions of units) compared to 1.06 of
American connector. Also, effective utilization is higher for DJC (75.4%) as
compared to American connector which has only 30.2% utilization. (Refer Exhibit
6)
c) SQC vs SPC:
Sunnyvale follows SQC whereas DJC focusses on SPC. As a result, the defects in
Sunnyvale are 1.6% as compared to 0.7% in Kawasaki plant. (Refer Exhibit 6)
d) Technology:
Sunnyvale and DJC both bought standard machinery. But, DJC relies on in-house
R&D to customise the machines as per the requirements coupled with high degree
of automation. This gives them advantage over other competitors.
e) Proximity to Suppliers:
DJC’s plant in Kawasaki was closer to its suppliers. This helped them to have
maintain close relationships with them. Also, most of the raw materials were
procured on a daily basis. This helped them to maintain lower raw material
inventories thus saving costs.
f) Relationship between Production and Sales:
DJC Kawasaki was dominated by production department whereas Sunnyvale was
dominated by Sales and marketing department.