Jupiter Manufacturing

Glass containers for Laboratories (test tubes, graduated beakers, etc.) Jupiter Manufacturing produces glass containers used in laboratories for testing. They run several high-speed production lines that are fully automated using the latest technology. The production processes follow strict protocols to maintain compliance with North American Food and Drug laws.

A leading pharmaceutical company in Brazil has approached Jupiter with an opportunity to provide their products to a chain of laboratories across the country. Specification and compliance laws are different in Brazil and all containers would have to be pre-approved prior to shipment. The contract is valued in the US. $10 million with shipments starting later in the year.

Jupiter Manufacturing does not have the required testing facilities in-house, nor a local source which could comply. Qualification testing would have to be carried out in an approved facility in Brazil. This process could be quite costly as there were several prototypes, secured transportation, insurance, and other considerations to keep in mind. As an option, the managing directors at Jupiter Manufacturing considered partnering with a local glass production facility in South America. This also carried risk, as they had no prior relationships established.

The Quality Assurance Manager at Jupiter Manufacturing did not like the idea of an outside facility producing these containers. He could not oversee the production nuances and did not trust that this facility could meet the strict quality requirements. In addition, he was already overwhelmed with internal requirements for North America and did not have enough staff to take on the documentation review from a quality perspective. There was a great deal of pressure on him to support the opportunity and potential growth for the company.

Senior Management decided that partnering with a Brazilian production plant was a good idea to facilitate new markets and expand the business globally. During the ramp-up period they insisted on co-testing the glass vessels within their own quality department for 2^nd evaluation within North American standards. Additional lab technicians had to be hired to manage the workflow. Describe the production strategy for this operation and explain how the strategy lead-time for inventory affects this business.