After you read the Airvent Fan Company case, prepare an “as is” value stream map for the
Airvent fan company. Based on your analysis, answer the following questions:
a. Based on its’ current capacity, could Airvent Fans meet the 2017 demand?
b. If there is no addition to capacity, can Airvent Fans meet the forecast production targets
in 2018 and 2019?
c. In 2020 the forecast demand is expected to reach 1.2MM fans. Based on your as is
analysis, will the company be able to meet demand? What suggestions would you offer
so that the company could meet demand?
- Calculate the takt time for each of the production scenarios (2017, 2018, 2019 and
2020) compare that to the “as is” takt time.
- Prepare a table that calculates the takt time for each step in the fan production process.
Compare the required takt time (2017, 2018, 2019 & 2020) with the takt time for each
step. What steps exceed the required takt time for each forecast production level?
- Use exhibits 5 & 7 of the case to help organize your value stream map diagram
ompetitive advantage in this industry, A2 Milk can ensure that their products are differentiated as well as quality, this will ensure that the company continues to attract them. A2 Milk can also continue to create more new products. The bargaining power of suppliers This factor determines the extent to which suppliers can influence the price on organization. When there are a lot suppliers in the industry, organizations can switch from one supplier to another as long as the price is the lowest in the market and vice versa (My Accounting Course, 2019). The number of suppliers in the milk industry is a lot. This means that A2 Milk has a lot of choices when it comes to who to get supplies from. This makes the bargaining power of supplier low. However, despite high number of suppliers, the suppliers do no compete within the industry for products, which means that A2 company can only purchase what the suppliers provide. This gives the supplier a high bargaining power. To sustain in this competitive industry, A2 milk can get supplies from multiple suppliers, more flexibility within its supply chain. Or they can encourage better relationship with the supplier can benefit on both sides. The extend of rivalry between competitors This factor determines competitive level in the industry, whether does the firms have control over the prices of goods and services (My Accounting Course, 2019). If the rivalry among the existing companies in this industry is intense it will result to decrease in prices and profitability. A2 Milk operates in a very competitive industry. This competition does take toll on the overall long term profitability of the organization. To stay in such a competitive market, A2 Milk needs to focus on differentiating its products so that competitors will have less effect on its customers that seek its unique products. As the industry is growing, A2 Milk can focus on new customers rather than winning the ones from existing companies. The A2 Milk can conduct market research to understand the supply-demand situation within the industry and prevent overproduction.>GET ANSWER