Q4. What should American Connector’s management at the Sunnyvale plant do?

◦ To improve the efficiency, American Connector can incorporate 4 different cells for four broad categories of
connectors. A dedicated separate production line can also be initiated to counter the Just-In-Time of DJC.
◦ Defective rates shall be reduced to have better quality.
◦ American Connector can incorporate in-house technology to reduce the technical dependence on outsiders. With
such incorporation and vigorous quality check the defect rate can be reduced.
◦ American Connector can reduce the packaging size (currently offer in the rage of 10 to 1500) which might save
packaging costs.
◦ American Connector can replicate the effective design of DJC to reduce material costs
◦ ACC need to line up the facility layout and minimize inventory holding costs. It needs to follow pull strategy for of
raw materials in production line.
◦ ACC can save cost on color coded cables/connectors which may be beneficial in longer run.
◦ ACC’s organizational hierarchy more inclined toward marketing and engineering rather production, changes may
be beneficial