GURPREET BEDI RUODI CHEN RANIA HASSAN

OUTLINE Background of the company Specific area of interest Specific problem/decision Conclusion

COMPANY OVERVIEW  Global Market leader  Comprises of many well-established companies  Companies specialize in developing, manufacturing, marketing, and servicing high-technology medical devices  Customers include hospitals, alternative care sites, laboratories, and private physicians

MISSION & VALUES  VIASYS Values (V2)  VIASYS strives for a culture that rewards a commitment to creativity, innovation, total quality, and integrity in all that they do.  VIASYS treats all employees with respect and dignity and rewards them when they exemplify their values.  V2 simply states that when they work as a team and adhere to these values the results will be far greater than the sum of the parts.

PRODUCTS OVERVIEW  A global leader in Respiratory Care  A global leader in Neurophysiology  Medical Supplies and Services  Orthopedic Implants  Global Operations in over 100 Countries  Customer care operations worldwide

SPECIAL AREA OF INTEREST  Manufacturers of global health-care technology, who is committed to a long- term, sustained investment in research and development.

TWO MAJOR AREAS OF INTEREST  Respiratory  Neurophysiology

KEY FACTS  Every supply chain is unique  Outsource for a minimum of two years within each country  Outsource more than 75% of the assembly of each of its product line

KEY FACTS (Cont’d)  Outsource parts, complete units, and assembly operations  Two biggest outsourcing facilities are China and Guadalajara

UK Germany Mexico China Italy Thailand Canada OUTSOURCING MAP

OUTSOURCING CRITERION MATRIX Geography Work Relationship Quality Cost Saving

OUTSOURCING FACILITY REQUIREMENTS  Compliance with ISO standards  Good manufacturing practices  Among Fortune 500 companies  Stable, legitimate, and profitable  Low turnover rate

WAYS TO MITIGATE RISK  Carry safety stock  Supplier segmentation  Tight communication  Frequent training  Weekly auditing and internal controls

SOCIAL RESPONSIBILTY  VIASYS ensure good working conditions for their workers - No child labor involved  Outsourcing facility provides dorm for employees and managers in China

SPECIFIC PROBLEM/DECISION  Products not delivered on time  Implications of the problem:  Six employees  Lack of communication

OUTCOME  Termination of service

LESSONS LEARNED  Closely following their facility requirements  Increased communication  To create local dedicated resources

IN ESSENCE… OUTSOURCING  Continuously evolves  Does not have a negative impact on the US economy  Only disadvantage is cultural differences…but it is overshadowed by the low cost, higher expertise, and greater profitability for Viasys

Thank You QUESTIONS…