Honeywell Case - Quality Management

Table of Contents

Introduction        2

SWOT ANALYSIS        3

Strengths:        3

Weakness:        3

Opportunity:        3

Threats:        3

Assumptions        4

Discussion        5

Question 1        5

Question 2        5

Question 3:        6

Conclusion        7

Introduction

Honeywell is the leading company which is inventing and manufacturing technology that make world better. Honeywell claims that it is building smarter, safer, and more sustainable world (Who We Are?). Honeywell is found in most of every house of USA as it’s thermostat control system for home heating is very famous in USA market (Foster, 2013). Honeywell is available in almost all fields starting from energy to military including construction, home, space, aviation, security.

SWOT ANALYSIS

Strengths:

• Largest company in the US in that particular area
• Diversity in the workforce
• Priority is customer satisfaction
• Strong brand name due to variety of products

Weakness:

• Environmental Issues
• It has high profile clients thus one bad move can affect it’s reputation

Opportunity:

• Continuous Global Expansion

Threats:

• Violation of Labor laws
• Foreign Countries Regulation Violation

Assumptions

• Honeywell is well recognized company which is found in every houses and offices of USA.
• Honeywell is global company which is manufacturing devices which can make people life easy.
• Honeywell is focusing on supply chain as much as manufacturing.

Discussion

Question 1

Why does Honeywell spend so much time dealing with supply chain management issues? Wouldn’t the company be better off focusing on its own manufacturing operations? Explain your answer.

Answer:

Honeywell works in a competitive environment which demands high quality products at affordable prices. The company is shifting their priority from price to total cost. So, they buy from the supplier who provides materials at the lowest cost in the long run. The Company is also requesting its suppliers to share business solutions. The company treats their suppliers as a business partners. Production is very important aspect in any company but at the same time it is equally important for the company to focus on its supply chain.

Question 2

What aspect or aspects of Honeywell’s approach to supply chain management appear to be particularly prudent? Can you suggest any additions to Honeywell’s supply chain management program?

Answer:

Few Prudent aspects of Honeywell’s approach to supply chain management are as following:

• Shifting focus to Total Cost from Focus on Price

• Honeywell buys products from the kind of suppliers which are providing products for long time at low cost. Honeywell is focusing on total cost instead of price.

• Company’s behavior to suppliers – Treating as Business Partners and Business Extensions

• Honeywell is focusing on long term relationship thus their vendors are also their business extensions. Suppliers will become intimate with Honeywell such as if suppliers have to go for couple of extra miles they will go.

• Involvement of Suppliers in Problem Solving – Asking Solution to Suppliers instead of Products

• Company is involving its suppliers in problem solving instead of asking products from them.

Suggestion to Honeywell’s Supply Chain Management Program:

• Honeywell can bring suppliers aware about customers’ needs.

Question 3:

Do you believe that Honeywell’s approach to supply chain management creates a win-win situation between the company and its suppliers? Why or why not?

Answer: