...Challenges for a Tier 2 Supplier | The Indian Automotive Supply Chain Context | | | | | Contents Introduction 4 A Brief History of Indian Auto Sector 4 The Present Scenario 5 Indian Automotive Industry Supply Chain 6 Characteristics of the Auto Supply Chain 8 Tiered Structure 8 Linkage of Suppliers and OEMs 9 Supplier Power – An Industry Level Analysis 10 Clustered Development 11 Financial Position of the Suppliers 12 Supply Chain Challenges in the Auto Industry 13 SM Auto Stamping Pvt. Ltd – An Introduction 13 Products Manufactured 14 Quality Systems 14 Manufacturing Process 15 Challenges and Opportunities 15 Scheduling and Production 15 Variety and Performance 17 Procurement 18 Pricing and Costing 19 Cyclical Nature of the Industry 20 Solutions 20 Data Analysis 21 Conclusion - Creating a Win-Win Strategy 23 References 25 Appendix I 26 List of Figures Figure 1 – Automobile Market in India 6 Figure 2 – Global growth of the automobile market 7 Figure 3 – Turnover contribution of different components 7 Figure 4 – Automobile supply chain 9 Figure 5 – Automobile and auto component industry growth rates 10 Figure 6 – Strategic analysis of supplier industry 11 Figure 7 – Suppliers in India 12 Figure 8 – Margin trends 12 Figure 9 – Manufacturing flow process for SM Auto 15 Figure 10 – Scheduling Plan 16 Figure 11 – Various manufactured components 17 Figure 12 – Suppliers in India 19 ...
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...the Malaysian Automotive Industry: Proton’s Experience Supplier of Economics and Management 2(1): 29 – 58 (2008) ISSN 1823 - 836X Supplier Development Framework in the Malaysian Automotive Industry: Proton’s Experience RASHID ABDULLAHa*, MAHARJAN KESHAV LALLb AND KIMBARA TATSUOc a University Putra Malaysia b Hiroshima University c Hiroshima University ABSTRACT In a dynamic market, firms need to evolve from traditional to strategic purchasing which aims to reduce the cost of the purchase and that might imply standardization of components, delivery time and levels of inventory. This effort will usually include key suppliers as joint problem solvers and with these problem-solving models to work with; the firm’s attitude towards suppliers may change from confrontation to trust and partnership. From the buyer-supplier relationship perspective, the procurement practice of the buyer is critical and acts as a window to nurture the supplier development effort. This article presents the result of a study on supplier development in the Malaysian automotive industry, which focused on PROTON, and its role in developing the suppliers’ relationships and development. This study indicates that PROTON and its suppliers’ development program plays a crucial role in developing and extending comprehensive support to its supplier’s firm such as supplier selection and appointment, development, match making, and promoting continuous performance development and improvement...
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...to the recalls. Sticky gas pedals, pedal entrapment, and software glitches that affected braking in some models were some of the problem areas (Trudell, 2014). Over time, the safety related recalls continued growing. In fact, by May 2011, the automaker had recalled close to 20 million vehicles (Trudell, 2014). Naturally, the numerous recalls and lawsuits that ensued threatened to damage Toyota’s image; thus, to rectify this the company should organize its decision processes more efficiently. Keywords: organizational change, recall, total quality management Introduction For decades, Toyota set the standard for quality and reliability in the automotive industry. In fact, the Toyota brand has been touted as the pinnacle of automotive excellence by rating industries and industry consultants (Piotrowski & Gray, 2010). The automaker founded in 1937, has strived over the years to manufacture superior quality automobiles (Rajasekera, 2013). Toyota has built a global reputation for engineering affordable, quality vehicles, capitalizing on the principles of Just-In-Time (JIT), the Total Production System (TPS), and the Japanese concept of Kaizen, or continuous improvement (Rajasekera, 2013). Known...
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...EXECUTIVE SUMMARY As every business concern irrespective of its size, nature, and age needs an adequate concentration on its supply chain to carry out regular business operations and survive in the international competition. A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to the end customer. The project report titled “Consumer Buying Behavior of Volkswagen Cars For Shreekripa Automobiles Pvt. Ltd, Nashik” deals with this matter and is based on the in-house industrial training at Shreekripa Automobiles Pvt. Ltd, pertaining to the requirement for the Master of Business Administration from “Kautilya Institute of Management & Research, Wagholi, Pune”. Everest Industries Ltd formerly subsidiary of ACC Ltd, Founded in 1934, is engaged in building solutions like Roofing, Ceiling, Wall, Flooring, Cladding, Door and the Pre Engineered steel Buildings for the Industrial, Commercial & Residential sector. Holcim, world’s second largest cement producer gained control of Everest Industries after acquiring ACC by gaining majority stake in Ambuja cements India from Sekhsarias. In 2006 Holcim exited from Everest Industries after selling their stake back to Everest finvest (India) controlled by Sekhsarias for Rs 134 a share. Company is renowned enterprise...
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...Statements on Management Accounting BUSINESS PERFORMANCE MANAGEMENT TITLE Implementing Integrated Supply Chain Management for Competitive Advantage CREDITS This statement was approved for issuance as a Statement on Management Accounting by the Management Accounting Committee (MAC) of the Institute of Management Accountants (IMA® IMA ). appreciates the collaborative efforts of the Finance Business Solutions Group at Arthur Andersen LLP and the work of Dr. C.J. McNair, CMA, of Babson College, who drafted the manuscript. Published by Institute of Management Accountants 10 Paragon Drive Montvale, NJ 07645 www.imanet.org All rights reserved IMA Publication Number 00352 ISBN 0-86641-282-4 Special thanks go to Randolf Holst, CMA (Canadian), Manager of Knowledge Creation at Arthur Andersen, for his continuing oversight during the development of the Statement. IMA thanks the Consortium for Advanced Manufacturing-International (CAM-I) for their support in the development of this SMA. IMA is also grateful to the members of the Management Accounting Committee for their contributions to this effort. Copyright © 1999 in the United States of America by Institute of Management Accountants and Arthur Andersen LLP Statements on Management Accounting BUSINESS PERFORMANCE MANAGEMENT Implementing Integrated Supply Chain Management for Competitive Advantage TABLE OF CONTENTS I. Rationale . . . . . . . . . . . . . . . . . . . . . . . 1 ...
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...Statements on Management Accounting BUSINESS PERFORMANCE MANAGEMENT TITLE Implementing Integrated Supply Chain Management for Competitive Advantage CREDITS This statement was approved for issuance as a Statement on Management Accounting by the Management Accounting Committee (MAC) of the Institute of Management Accountants (IMA® IMA ). appreciates the collaborative efforts of the Finance Business Solutions Group at Arthur Andersen LLP and the work of Dr. C.J. McNair, CMA, of Babson College, who drafted the manuscript. Special thanks go to Randolf Holst, CMA (Canadian), Manager of Knowledge Creation at Arthur Andersen, for his continuing oversight during the development of the Statement. IMA thanks the Consortium for Advanced Manufacturing-International (CAM-I) for their support in the development of this SMA. IMA is also grateful to the members of the Management Accounting Committee for their contributions to this effort. Published by Institute of Management Accountants 10 Paragon Drive Montvale, NJ 07645 www.imanet.org IMA Publication Number 00352 Copyright © 1999 in the United States of America by Institute of Management Accountants and Arthur Andersen LLP All rights reserved ISBN 0-86641-282-4 Statements on Management Accounting BUSINESS PERFORMANCE MANAGEMENT Implementing Integrated Supply Chain Management for Competitive Advantage TABLE OF CONTENTS I. Rationale . . . . . . . . . . . . . . . . . . . . . . . 1 II. Scope . . . . . . . . . . . . . ...
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...Understanding supply chain management: critical research and a theoretical framework I. J. CHENy* and A. PAULRAJy Increasing global cooperation, vertical disintegration and a focus on core activities have led to the notion that firms are links in a networked supply chain. This strategic viewpoint has created the challenge of coordinating effectively the entire supply chain, from upstream to downstream activities. While supply chains have existed ever since businesses have been organized to bring products and services to customers, the notion of their competitive advantage, and consequently supply chain management (SCM), is a relatively recent thinking in management literature. Although research interests in and the importance of SCM are growing, scholarly materials remain scattered and disjointed, and no research has been directed towards a systematic identification of the core initiatives and constructs involved in SCM. Thus, the purpose of this study is to develop a research framework that improves understanding of SCM and stimulates and facilitates researchers to undertake both theoretical and empirical investigation on the critical constructs of SCM, and the exploration of their impacts on supply chain performance. To this end, we analyse over 400 articles and synthesize the large, fragmented body of work dispersed across many disciplines such as purchasing and supply, logistics and transportation, marketing, organizational dynamics, information management, strategic management, and...
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...Harley-Davidson Case Analysis MGMT 4290 Professor McGowan Keiven Cosgriff I. CORE PROBLEM Harley-Davidson has a strategy problem; the company’s core problem is its need to reexamine and alter its strategy to ensure continued success in the changing global environment. Harley-Davidson has a solid foundation and the potential for continued success and industry leading performance, however, times are changing and Harley must adapt. II. S.W.O.T. ANALYSIS Strengths Harley-Davidson is a strong company with several core strengths. First, Harley has unprecedented brand recognition and customer loyalty. For example, in 2004 42% of new Harley-Davidson purchasers owned a Harley previously. Richard Teerlink, retired Harley CEO stated, “There are very few products that are so exciting that people are willing to tattoo your logo on their body.”[1] Moreover, Harley-Davidson’s guiding concept is that its brand is more than a brand; it is an iconic image with an accompanying lifestyle and culture. Second, Harley differentiates itself from the Japanese by offering support to various enthusiasts and social groups. For example, the Harley-Davidson Owners Group (HOG), which has worldwide membership in excess of 900,000, helps cultivate a hard-core loyal customer base. Essentially, by owning a Harley you become a member of a special community of people who all share an interest in one product. Third, Harley derives strength from its strong market position, in 2004, Harley controlled...
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...of Purchasing and Supply Management focuses on decision making throughout the supply chain. Based on the conviction that supply managers, in concert with suppliers and distributors, have to contribute to organizational goals and strategies, this edition continues to focus on how to make that mission a reality. Fourteenth Edition Highlights of the Fourteenth Edition: More than 40 real-life supply chain cases afford the opportunity to apply of the acquisition process. Criteria for supply decisions have been organized into three categories: (1) strategic, (2) operational, and (3) additional. In this third category, new factors such as balance sheet and income statement considerations, dimensions of risk, and environmental and social considerations are considered. Visit the text’s Online Learning Center at www.mhhe.com/Johnson14e Michiel R. Leenders, D.B.A., PMAC Fellow Professor of Purchasing Management Emeritus Richard Ivey School of Business The University of Western Ontario Anna E. Flynn, Ph.D., C.P.M. Formerly Clinical Associate Professor Supply Chain Management Thunderbird School of Global Management Formerly Associate Professor Institute for Supply Management TM Johnson Leenders Flynn Purchasing and Supply Management Johnson Leenders Flynn MD DALIM #1093963 06/05/10 BLUE GREEN P. Fraser Johnson, Ph.D. Leenders Purchasing Management Association of Canada Chair Associate Professor, Operations Management Richard Ivey School...
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...of Purchasing and Supply Management focuses on decision making throughout the supply chain. Based on the conviction that supply managers, in concert with suppliers and distributors, have to contribute to organizational goals and strategies, this edition continues to focus on how to make that mission a reality. Fourteenth Edition Highlights of the Fourteenth Edition: More than 40 real-life supply chain cases afford the opportunity to apply of the acquisition process. Criteria for supply decisions have been organized into three categories: (1) strategic, (2) operational, and (3) additional. In this third category, new factors such as balance sheet and income statement considerations, dimensions of risk, and environmental and social considerations are considered. Visit the text’s Online Learning Center at www.mhhe.com/Johnson14e Michiel R. Leenders, D.B.A., PMAC Fellow Professor of Purchasing Management Emeritus Richard Ivey School of Business The University of Western Ontario Anna E. Flynn, Ph.D., C.P.M. Formerly Clinical Associate Professor Supply Chain Management Thunderbird School of Global Management Formerly Associate Professor Institute for Supply Management TM Johnson Leenders Flynn Purchasing and Supply Management Johnson Leenders Flynn MD DALIM #1093963 06/05/10 BLUE GREEN P. Fraser Johnson, Ph.D. Leenders Purchasing Management Association of Canada Chair Associate Professor, Operations Management Richard Ivey School...
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...Actes du GERPISA n°22 GLOBALIZATION STRATEGIES OF KOREAN MOTOR VEHICLE INDUSTRY: A CASE STUDY OF HYUNDAI Myeong-kee CHUNG The current issue in the world economy is characterized by globalization. Corporations have built up a world-wide network economy by promoting production and trade. An important cause for the globalizing trend of the world economy lies in relocation of production sites and management strategies of business. Firms need not only partnership with foreign companies in the form of direct investment and joint ventures, but they need also to develop cross-border buyersupplier relations. These trends also provide opportunities for the sharing of risks and costs in R&D and production. Globalization is driven by strategic alliances that reflect a shift of company strategies. Globalization is an increasingly important aspect of the automobile industry. In the past decades, the automobile industry has been one of the mains driving forces in globalization. The pattern of globalization followed by the major car makers can so far be split into three stages. The first stage is export. At this stage the goal is to create a car that fits into a worldwide car category. The second stage of globalization comes after the expansion of export. This is the setting up of transplant in major market regions. The last stage of globalization is complete localization of transplants on one hand and the establishment of a global business network on another hand. In the following...
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...| Analysis Of Indian Commercial Vehicles Industry | | | Abstract | | | This project analyzes the Indian Commercial Vehicles Industry using Porter’s Five Forces Analysis framework including the competitive positioning and RBV analysis of the different players. | PROJECT TEAM GROUP – 9 S.No. | Name | Roll Number | 1 | Ashish Kumar | 1514013 | 2 | Hari Sharma | 1514017 | 3 | Pranal Dongare | 1514033 | 4 | Souveek Bose | 1514053 | 5 | Sujatha Krishnamurthy | 1514057 | 6 | Vinod Vijayakumar | 1514070 | Industry Overview Performance of commercial vehicles industry in India is one of the most important indicators as well as enablers of economic activity. Commercial vehicles account for 3% of the total domestic market for automobiles in India1. The net sales turnover for this industry in FY2014-15 was 72,264 cr. and the number of units sold was 6.15 lakh units2. The industry is segmented into Goods and Passenger vehicles with each segment further divided into LCVs (Light Commercial Vehicles) and M&HCVs (Medium and Heavy Commercial Vehicles). A detailed classification of commercial vehicles can be found in Figure 1. Figure 1: CLASSIFICATION OF commercial vehicles Source: CRISIL Research, 14-Mar-2015 report Three major domestic players, namely Tata Motors, Mahindra and Mahindra and Ashok Leyland, dominate the industry. Strong positive outlook and space for growth has enticed foreign players, such as Volvo, Daimler and Isuzu Motors, to make...
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... An Example from the Manufacturing Industry | |Table of Contents |Page | |1. |Introduction to AGL |2 | |2. |Hiring |3 | |3. |Education and Training |4 | |4. |Job design and Decision making |6 | |5. |Temas and ICT |8 | |7. |Performance: Evaluation and Rewards |10 | |8 |Carrer-Based Incentives |11 | |9 |Conclusion |12 | 1. Introduction The automobile industry constitutes a significant part of the worldwide...
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...CHAPTER 3 The Competitive Environment Learning Objectives Upon completing this chapter, you should be able to: Identify the structural characteristics of the environment faced by the firm and how these drivers influence both competition and value creation Choose the appropriate level of specificity in environmental analysis, depending on the locus of the decision-making group Predict how changes occurring in the environment might influence future competition and value creation Incorporate understanding of environmental changes into the development of strategy Consider options for influencing changes in the firm’s environment so as to improve future value creation Analyze customers and competitors to develop a competitive advantage and strategy Appreciate that strategy is realized in the future: decisions are made now but their realization occurs in the future In late 2000, GE proposed to take over Honeywell. Both these firms are U.S.-based, and the value of the merger was $USB42. But a merger between two such large firms has global implications and ramifications. Although the U.S. Federal Trade Commission (FTC) had approved the merger, the European Union (EU) decided to oppose it on the grounds that it had the potential to reduce competition in Europe. Its concern was that GE’s strong position in the manufacture of jet engines and its ability to offer finance, if added to Honeywell’s aviation electronic business, would allow the merged entity to bundle their products together...
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...Global Automobile Industry: Changing with Times By Chithra Gopal R.S., M.Sc (Agri) Executive Summary From a humble origin as a ‘horseless carriage’ manufacturing industry dating back to 1890s, the global automobile industry of 2006 has come a long way emerging as market leader in manufacturing activity, providing employment to one in seven people, either directly or indirectly. Hailed as the ‘industry of industries’ by the Management Specialist, Peter Drucker, the automobile industry (US) set standards in manufacturing activity by contributing mass production techniques during early 1910s. The Japanese soon followed by offering lean production techniques in the 1970s. Riding high on economical revival in many developing countries in Asia and Europe, the industry’s global output touched 64.6 million vehicles in 2005. But with a downward slide in market share, the Big Three was fast losing their dominant position to Toyota, Honda, and Nissan, thereby setting the ground for the emergence of New Six. Meanwhile UK, served as the single largest customer for European auto-makers. Japanese players were the leaders in the light vehicle market and hybrid market. China and India attracted the attention of global auto-makers, vying for setting up a cost-effective export base for meeting the demand from Asian markets. Despite government controls, Chinese market boasted of sales of more than 2.7 million commercial vehicles in 2004. With reports of highest growth in mobility in the world at...
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