安达信咨询方法与工具资料库CAE.DOCVIP

PAGE 5 CASE STUDY: CREDIT CARD COMPANY, INC. (CCCI) While the names have been changed, this case study is about a real company, its challenges, and what was (and is being) done to meet those challenges. BACKGROUND CCCI makes and mails credit cards to consumers. CCCI’s largest customer segments are healthcare providers and telecommunications companies, of which one (MCI) represents approximately 20% of CCCI’s card volume. Other customers include stores and banks. Card volume has grown at a compounded annual rate of approximately 60% from 1992 through 1995, and is expected to be up 100% in 1996 to 80 million, making CCCI the largest company in the United States which solely makes credit cards. CCCI is very healthy financially, with solid earnings growth and substantial positive cash flow, but is experiencing quality and delivery commitment problems due to this rapid growth. On time delivery, once at 95%, has fallen to 21% in May 1996. Remakes and cards sent to the wrong consumer have reached an all time high. Customers are complaining about CCCI not knowing what inventory is on hand or how much should be ordered. MCI and the largest healthcare customer have both told the president that if something is not done to alleviate these problems, they will have to take their business elsewhere. CCCI’s president is a co-founder of the company and had a significant role in developing the company’s facility layout and operating methods. CCCI’s president contacted Arthur Andersen to ask if we might be able to assist him in alleviating the problems. He especially wanted to know if we could help in designing a new 75,000 to 100,000 sq. ft. facility, because CCCI has outgrown theirs. After discussing the inventory, quality and production problems over the phone, we agreed to go out to CCCI to meet with the executive team and customer service representatives and to walk through facility. Following is what we found during our initial trip to CCCI. SITUATION Note: Re