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HP Transforms Product Portfolio Management With Operations Research
HP Transforms Product Portfolio Management With Operations Research
Submitted By:
Nabendu Paul (M120006MS)
Christy Mathew Jacob (M120007MS)
Paresh Pandurang Vengulkar (M120008MS)
Patel Jay Hemantkumar (M120009MS)
Navin Joseph (M120012MS)
Introduction
Case HP (Hewlett Packard ) problem faced while
following its strategy to increase its market share
through product diversification and drive sales.
Two problems 1. Introduction of new products
2. Management of variety of launched
products
This case highlights how M/s Hewlett Packard
overcame its challenges to a large extend using the
various techniques of Operations Research
Benefits to HP:
1. PSG states that the Order Cycle time (OCT) is reduced by 4 days
on notebook and 2 days on Core Desktop. Each day of OCT
improvement saves $38 Million annually.
2. The RCO enabled the elimination of 3300 products from a product
portfolio of 10,000 of one of the units of HP, which resulted in $11
Million Cost savings.
3. Company wide profits had improved by $500 Million for a period
of three years.
4. Improved Customer Satisfaction.
5. Product line complexity reduction.
6. Reduced confusion among customers and sales representatives
and hence less return costs.
7. Increased organizational effectiveness .
8. Increased visibility of OR within HP.
Conclusions
Thank you