-Felipe Cano

-Santiago Salas
-Carlos Sandoval
-Vanessa Urquijo
-Nicolas Vaquiro

LEITAX CASE
 01
CONTEXT OF
02
FLOWCHART OF
THE COMPANY SUPPLY CHAIN

03 04
INITIAL PROCESS CHALLENGES

05
NEW PROCESS
06
NUMERICAL RESULTS

TABLE OF CONTENTS 2
1.
CONTEXT
OF THE
COMPANY

PROJECT MERCURY 3
GENERAL BACKGROUND
Leitax was part of the Newplex
company operating as the digital
Leitax managed to generate $ 423
camera area, it was not until 1997 that
million in 2002 and be the seventh
the area separated from the parent
largest company in the industry.
company to consolidate itself as a
subsidiary company of Newplex.

Leitax design a forecast process wich
include all the areas of the company but it was in
2004 when the planning directors realized that
they overestimated the demand of a new product
and notice that a new product (Optix-R) replace
an older good-selling product (ShootXL).
The digital camera market grew
exponentially by 40% in 2003, however,
years later the industry began to decrease
and more and more operational failures and
inefficient processes related to inventory,
delays and slow sales began to be noticed.
 Key activities
Production process: Manufacturing
must guide to strict processes to
prevent delays and low-quality
problems along the supply chain.
Sales and demand feedback: All the
functional areas works and plan
according to a review of the previous
period.
Information flow throughout the
supply chain: There must be an
efficient communication of the forecast
to achieve a good application of the
strategy.
Support activities
Cooperation between production and
operational areas: A good cooperation
guide to an optimization of processes
therefore costs reduction.
Information maintenance: A good
information analysis of the environment
and industry helps to take decisions.
Marketing: Good marketing helps to
reduce consumer uncertainty and
therefore reduce slow sales.
2.
FLOWCHAR
T OF SUPPLY
CHAIN

PROJECT MERCURY 6
 FACTORIES IN LEITAX
CHINA, MEXICO RESELLERS OR
DISTRIBUTION
AND CHILE WHOLESALERS
CENTERS

The supply chain was redesigned Fowler & McMillan changed the
to survive, reducing costs and forecasting method, to be more
production risks through demand accurate as they were influenced
analysis

Investments in technology to
A change was made in the
improve short- and long-term
support system, to verify that
production with programmability
providers are committed to due
and to make precise commitments
diligence
to customer orders
 PRODUCT TYPE SUPPLY CHAIN
IDENTIFICATION TYPE IDENTIFICATION

It’s an order-based supply

It is an unpredictable chain, because it is
product as it doesn't responsive and has flexibility
behave regularly and is in production. It handles
innovative individual orders and has
proximity to customers
3. INITIAL
PROCESS

PROJECT MERCURY 9
Initial process
Redesign of Objectives

Cause 1 Cause 2 Cause 3 Cause 4 Effect

Increase velocity
Increase supply improve on-time
To Reduce and accuracy of
and downside performance to
Inventory levels planning
flexibility customers
information
4.
The Mistakes were
CHALLEN that Fowler and

GES McMillan believed

that they had made
improvements in the
operation
performance

PROJECT MERCURY 12
Timeline Challenges 1997
Launch of camera
There was not DPM in 2002 it LX280
2002- poor
creates: planning of 3
- Cost in inventory cameras
- Lost of Sales Delayed lost in
- Warehousing Spaces 2002 19.5 Million
- Unnecessary Capital Spend Outsold inventory
(Lost on 4.5
Million) 2002
Report of sluggish
Sales(Lost in 2.5
2003 Million)

Flowler

2004
Overestimate the
demand of
products

13
5. NEW
PROCESS

PROJECT MERCURY 14
New process
6.
NUMERICA
L RESULTS

PROJECT MERCURY 16
Results obtained

MY PHOTOGRAPHY WORK 17
LOST

18
Conclusions

19
20