1. GURPREET BEDI RUODI CHEN RANIA HASSAN

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

3. 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

4. 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.

5. 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

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

7. TWO MAJOR AREAS OF INTEREST  Respiratory  Neurophysiology

8. 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

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

10. UK Germany Mexico China Italy Thailand Canada OUTSOURCING MAP

11. OUTSOURCING CRITERION MATRIX Geography Work Relationship Quality Cost Saving

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

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

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

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

16. OUTCOME  Termination of service

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

18. 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

19. Thank You QUESTIONS…