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dc.contributor.advisorSprouls, Eric P.
dc.contributor.advisorSchultz, David E.
dc.contributor.advisorDurfee, Robert
dc.contributor.authorBloodworth, Dennis S.
dc.date.accessioned2019-12-09T18:13:45Z
dc.date.available2019-12-09T18:13:45Z
dc.date.issued2003
dc.identifier.urihttp://hdl.handle.net/20.500.12419/378
dc.descriptionThesis available in Rice Library University Archives and Special Collection.
dc.description.abstractTrue supply chain management requires that every step of the material flow process be examined to determine if the best possible cost has been achieved. A different perspective is sometimes needed to view additional savings opportunities that will help a company create and maintain a competitive position in the global marketplace. As circumstances frequently change in the business world, it is essential that even the management of materials once considered disposable be evaluated for long term use. It is in the proper management of these materials and associated processes that new opportunities arise to achieve best in class performance. Whirlpool Corporation has made a concerted effort to leverage its many years of manufacturing experience in the continued operation of its returnable packaging program. However, in a fiercely cost constrained environment, Whirlpool Corporation has reached a decision point for future planning and operation of this program. The maintenance of business cost for one of the three divisions has exceeded the contribution level at which the division financially supports the returnable packaging program. This disparity of cost versus benefits received has temporarily been covered by cost improvements achieved by the group. However, this practice cannot continue indefinitely This paper has focused on the existing operations involved in managing the program for these three manufacturing divisions located in the United States of America. Costs and benefits have been documented. These divisions have realized significant savings through pooling their resources to achieve standardized robust designs, leveraged buying, and an effective material flow process. This team effort has enabled them to drive down the manufacturing conversion cost for individual divisions while allowing them the opportunity to use the savings to create value for the company, the employees, and the shareholders. It is important that every company examine opportunities for improvement. While validating the value creation this program currently provides for Whirlpool Corporation, this paper considered the following program improvement options: 1.) Do nothing; maintain status quo of materials primarily owned by Whirlpool Corporation achieving incremental improvement as opportunities present themselves. 2.) Supplier owned packaging where this cost is buried in the piece price of the part cost. 3.) Expanded regional, systematic, synergetic process of the current system described in option number one above. Whirlpool Corporation has traditionally taken the path of ownership of the majority of the materials comprising the returnable packaging program. Benefits including lower purchase order cost, lower inbound freight costs, improved quality, and lower indirect labor costs have been realized. Ownership of the materials allows Whirlpool Corporation to better control the variability of these cost elements. This paper has shown that additional opportunities for improvement exist for those who choose to be good stewards of every part of their material flow process. Therefore, with proper process ownership, option number three, as noted above, is the best future option for Whirlpool Corporation.
dc.titleAnalysis of a Returnable Packaging System : Refrigeration and Air Control Group of Whirlpool Corporation
html.description.abstractTrue supply chain management requires that every step of the material flow process be examined to determine if the best possible cost has been achieved. A different perspective is sometimes needed to view additional savings opportunities that will help a company create and maintain a competitive position in the global marketplace. As circumstances frequently change in the business world, it is essential that even the management of materials once considered disposable be evaluated for long term use. It is in the proper management of these materials and associated processes that new opportunities arise to achieve best in class performance. Whirlpool Corporation has made a concerted effort to leverage its many years of manufacturing experience in the continued operation of its returnable packaging program. However, in a fiercely cost constrained environment, Whirlpool Corporation has reached a decision point for future planning and operation of this program. The maintenance of business cost for one of the three divisions has exceeded the contribution level at which the division financially supports the returnable packaging program. This disparity of cost versus benefits received has temporarily been covered by cost improvements achieved by the group. However, this practice cannot continue indefinitely This paper has focused on the existing operations involved in managing the program for these three manufacturing divisions located in the United States of America. Costs and benefits have been documented. These divisions have realized significant savings through pooling their resources to achieve standardized robust designs, leveraged buying, and an effective material flow process. This team effort has enabled them to drive down the manufacturing conversion cost for individual divisions while allowing them the opportunity to use the savings to create value for the company, the employees, and the shareholders. It is important that every company examine opportunities for improvement. While validating the value creation this program currently provides for Whirlpool Corporation, this paper considered the following program improvement options: 1.) Do nothing; maintain status quo of materials primarily owned by Whirlpool Corporation achieving incremental improvement as opportunities present themselves. 2.) Supplier owned packaging where this cost is buried in the piece price of the part cost. 3.) Expanded regional, systematic, synergetic process of the current system described in option number one above. Whirlpool Corporation has traditionally taken the path of ownership of the majority of the materials comprising the returnable packaging program. Benefits including lower purchase order cost, lower inbound freight costs, improved quality, and lower indirect labor costs have been realized. Ownership of the materials allows Whirlpool Corporation to better control the variability of these cost elements. This paper has shown that additional opportunities for improvement exist for those who choose to be good stewards of every part of their material flow process. Therefore, with proper process ownership, option number three, as noted above, is the best future option for Whirlpool Corporation.
dc.contributor.degreeMaster of Science in Industrial Management
dc.typeThesis (M.S.I.M.)--University of Southern Indiana, 1994


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