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    Bose Corporation

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    Saurabh Neve
    Bose Corporation is an American company that designs and sells audio equipment. It was founded in 1964 by Amar Bose after he was disappointed by the audio quality of stereo systems as a graduate student at MIT. He began researching factors that affected audio quality and founded Bose to achieve "Better Sound through Research." Prior to the JIT II program, Bose would forecast demand, solicit bids, and have vendors ship materials. Under JIT II, after forecasting demand, Bose checks plant inventories, reduces costs by combining orders, and has products shipped directly to stock. The JIT II program was conceived by Lance Dixon at Bose. It proposed having a full-time representative from supplier

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    Bose Corporation

    Uploaded by

    Saurabh Neve
    258 views2 pages
    Bose Corporation is an American company that designs and sells audio equipment. It was founded in 1964 by Amar Bose after he was disappointed by the audio quality of stereo systems as a graduate student at MIT. He began researching factors that affected audio quality and founded Bose to achieve "Better Sound through Research." Prior to the JIT II program, Bose would forecast demand, solicit bids, and have vendors ship materials. Under JIT II, after forecasting demand, Bose checks plant inventories, reduces costs by combining orders, and has products shipped directly to stock. The JIT II program was conceived by Lance Dixon at Bose. It proposed having a full-time representative from supplier

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    Bose Corporation: A JIT II Platform (A)

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    Bose Corporation is an American company that designs and sells audio equipment. It was founded in 1964 by Amar Bose after he was disappointed by the audio quality of stereo systems as a graduate student at MIT. He began researching factors that affected audio quality and founded Bose to achieve "Better Sound through Research." Prior to the JIT II program, Bose would forecast demand, solicit bids, and have vendors ship materials. Under JIT II, after forecasting demand, Bose checks plant inventories, reduces costs by combining orders, and has products shipped directly to stock. The JIT II program was conceived by Lance Dixon at Bose. It proposed having a full-time representative from supplier

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    258 views2 pages

    Bose Corporation

    Uploaded by

    Saurabh Neve
    Bose Corporation is an American company that designs and sells audio equipment. It was founded in 1964 by Amar Bose after he was disappointed by the audio quality of stereo systems as a graduate student at MIT. He began researching factors that affected audio quality and founded Bose to achieve "Better Sound through Research." Prior to the JIT II program, Bose would forecast demand, solicit bids, and have vendors ship materials. Under JIT II, after forecasting demand, Bose checks plant inventories, reduces costs by combining orders, and has products shipped directly to stock. The JIT II program was conceived by Lance Dixon at Bose. It proposed having a full-time representative from supplier

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    Bose Corporation: The JIT II Program (A)

    Bose Corporation is a privately held American corporation, based in Framingham,


    Massachusetts, that designs, develops and sells audio equipment. Founded in 1964 by Amar
    Bose, the company sells its products throughout the world. The company was founded in
    1964 by Mr. Amar Bose. Eight years earlier, Bose, then a graduate student at MIT, had
    purchased a stereo system and were disappointed with its performance. This led him to
    research the importance of reverberant (indirect) sound on perceived audio quality.

    Bose began extensive research aimed at clarifying factors that he saw as fundamental
    weaknesses plaguing high-end audio systems. The principal weaknesses, in his view, were that
    overall, the electronics and speaker failed to account for the spatial properties of the radiated
    sound in typical listening spaces (homes and apartments) and the implications of spatiality
    for psychoacoustics, i.e. the listener's head as a sonic diffraction object as part of the system.
    Eight years later, he started the company, charging it with a mission to achieve "Better Sound
    through Research", now the company slogan

    JIT II Program:

    Prior to JIT II Program, Bose Corporation would forecast customer demand, set planning and
    specifications then send out that information out to buyers for competitive bidding for buying
    materials. The company would analyze the bids and respond to vendors sales representatives.
    The sales representatives would place the order with the plant which would manufacture and
    ship the material.

    Under the JIT II program, however, the process is simplified. After Bose forecasts customer
    demand, the in plant checks every plant's inventory, combining and reducing unit costs for any
    other needs, then orders the product to ship direct-to-stock to the Bose location.

    Problems faced by Lance Dixon:

    Lance Dixon, director of purchasing and logistics for Bose, had conceived the idea. He had
    requested that John Argitis, president of G&F Industries a full-time representative at Bose
    headquarters. The representative was responsible as a plastic buyer for Bose, place orders to
    G&F on Bose Letterhead, monitor materials requirements on plastic components that G&F
    supplied to Bose, involve in manufacturing planning at Bose. The representative would be
    working on the payroll of G&F but would for Bose.

    Tom Beeson, the VP of manufacturing at Bose had expressed concerns regarding the
    implementation of Dixons Idea. Adding a G&F representative to the team would provide him
    the full access to Bose facilities, personnel, and computer systems, as well this may lead to Bose
    Corporation losing control over its own procurement process.

    Analysis:
    Following are certain aspects of adding a representative of G&F to Bose Corporations purchase
    team:

    1) Price reduction to Bose, offset by an increase in volumes and an evergreen contract.

    2) Cost of maintaining in plant employee offset by the elimination of salesperson and


    associated cost to maintain the account.

    3) Evergreen contract eliminates costs associated with rebidding.

    4) Better performance as the process is enhanced (no information asymmetry avoid bullwhip
    and quality dissonance).

    5) Opportunity to identify new uses for products and services within Bose.

    Conclusion:

    Hence we think that:

    1) Bose Corporation should go ahead and implement the JIT II Program.

    2) But, Bose Corporation needs to be careful about patented products both at Bose end and the
    vendor end as a share of the patent with other clients might come up with legal challenges.
    Hence, we recommend Bose Corporation to keep proprietary development separated.

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