Reference no: EM132914570

Question

ABC Ltd has invested about RM1000,000 for each production line two years ago. If the company wants to increase its range of products to include pipe fittings, it will require a major restricting in one of its range of production lines, with an investment of about RM800,000. With the current pandemic situation, although banks are offering very low-interest rate to finance the new machine, the disruption in the logistic systems might pose challenge in getting the new machine needed to Kuching. In addition, the expected negative economic growth in the country might hamper the growth in the construction industry where all ABC Ltd customers are operating in.

1(a) Using Porter's Five Forces and the information provided in the case, analyse the industry that ABC Ltd is operating in.
- Review all relevant information given in the question
- Understand Porter's 5-Forces Analysis
- Apply the model to the industry
1(b) Analyse ABC Ltd's inventory system in managing the resin inventory and discuss how the use of relevant modern manufacturing systems can help better manage the inventory system.
- Review all relevant information on the inventory
- Have a good understanding of all systems or techniques on inventory management, e.g. EOQ, JIT, SCM, and VA.
- Apply the techniques to the case
1 (c) Discuss how the implementation of TQM system in ABC Ltd helped the company to stay competitive in the market.
- Have a good understanding of the benefits of TQM
- Identify the relevant information in the case that are related to TQM implementation
- Make a convincing case