ABSTRACT
This case describes a familiar situation in many manufacturing companies. It includes the breakdown of processes for managing production in periods of peak demand. The author was a manager brought in to solve the problem. His approach included a number of elements described in this book:
• A focus on final demand rather than forecasts to sort out the chaos (Chapter 29)
• Use of a “drumbeat” to get supply chain partners on the same page (Chapter 29)
• The role of MRP/ERP in planning production requirements (Chapter 22)
• Coordinating the efforts of supply chain partners (Chapter 19)
The semiconductor equipment industry periodically goes through wide swings in demand. These swings, ranging from 50% drops to 100% increases on the upturn can severely test any supply chain. This case describes the problems encountered by a component supplier in this industry trying to keep up with the expansion phase of one of these cycles.
