...Supply Chain A supply chain consists of all parties involved in receiving and filling a customer request. It requires transformation of components, natural resources and raw materials into a finished product that has to be delivered to the customer. Such activities begin when a customer has placed an order and end when the customer pays for his/her purchase. Most of the supply chains actually work as supply networks. There has to be a constant flow of information and funds between different stages. This makes the supply chains very dynamic in nature. A typical supply chain involves the following stages: * Customers- The primary purpose of any supply chain is to satisfy the customer needs, thus, a customer forms the most integral part of a supply chain. * Manufacturers- They are the producers of the products or goods. * Wholesalers- Wholesalers are persons or firms that purchase large quantities of goods or products from the producers, warehouse them and resell them to the retailers. Wholesalers that carry only non-competing goods are called as distributors. * Retailers- Retailers purchase goods from the wholesalers in large quantities and then sell the smaller quantities to the customers. They can purchase goods directly from the manufacturer. * Raw material/Component suppliers- They supply the primary components or raw materials that are used by the manufacturers for production process. The transformation process converts these into the finished products...
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...Collaboration In one automobile, it is typically features with 20,000-30,000 parts, which all of even the largest manufacturers cannot produce themselves. Therefore, the manufacturers have to either outsource the production or purchase finished products from suppliers (including 1st to 3rd tiers). In order to achieve effective supply chain integration, the use of collaboration and coordination among channel partners that share business information, to simplify core processes, streamline cross company operations and reduce consequent channel-wide costs are suggested (Lee & Whang, 2001), (Callioni & Billington, 2001) and (Hammer, 2001) Vertical SCC includes collaboration with customers, internally (across functions) and suppliers. Horizontal SCC includes collaboration with competitors, and non-competitors. In addition, SCC also can be divided into three levels; Strategic, Tactical, and Operational levels. the formation of SCC into 3 categories; Internal-organization factors, Inter-organization and External factors There are many supply chain processes that can be joined between the collaborative partners, for example; planning, scheduling, forecasting, sourcing, production process, delivery process, problem solving, selling, etc. Besides, collaboration can be made by sharing of resources, skill, or knowledge. The success of collaborative efforts cannot be assured unless performance is properly monitored and measured. The collaborative indexes and measurement should...
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...correcting) has enabled the company to pursue lean innovations. Lean manufacturing has enabled Toyota to successfully develop its production systems to include new types of designs. The principles enables Toyota to manage its value stream, identify customer value, implement a “pull” approach that ropes the flow of scarce materials in operations and the overall development of production capability. The success of this ingenious strategy has enabled the company to rise up to global success in the auto industry. While the company still maintains its impressive performance in the application of lean practices, less of its competitive edge can be traced to TPS, more comes from applying lean product development strategies. As a result, lean best practices provide synergy to Toyota Production System. Supply Chain Management Toyota’s Supply chain management is a perfect combination of Porter’s value chain strategy, Kierestsu strategy, and Eliyahu Goldratt’s theory of constraints. Supply chain involves all activities associated with the transformation of raw materials into finished products and flow of products to the consumers as well as the flow of information. Toyota modernized its supply chain management by using information management systems in the 1980’s; suppliers, dealers, body makers, and customers were all linked to the Toyota Network System (TNS). The overall goal of supply chains is to keep all the major components connected. For...
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...HIGHER NATIONAL DIPLOMA ------------------------------------------------- Assignment STUDENT NAME | : | | EDEXCEL REGISTRATION NO. | : | | PROGRAMME | : | HND | SEMESTER | : | 02 | UNIT NO./TITLE | : | 25 / Purchasing Management | ASSIGNMENT NO. | : | 01 of 07 | ASSIGNMENT TITLE | : | Supply Chain Management | UNIT OUTCOMES COVERED | : | | 1. Explain how the purchasing function contributes to the achievement of an organization’sobjectives 2. Use appropriate information sources and criteria to evaluate and select suppliers 3. Explain how an organization ensures that the regular quantities and quality of goods andservices are purchased 4. Explain the role of the major national and transnational organizations which influenceinternational purchasing. | ASSIGNMENT TYPE | : | Individual | DATE | : | | DUE DATE | : | | DATE SUBMITTED | : | | Final Grade | | GRADING OPPORTUNITIES AVAILABLE: OUTCOMES/GRADE DESCRIPTORS ACHIEVED (please tick when achieved) Outcomes/ Grade Descriptors | P15.1 | P15.2 | P15.3 | P15.4 | P15.5 | P15.6 | | | | | | | | Outcomes/ Grade Descriptors | M1 | M2 | M3 | D1 | D2 | D3 | | | | | | | | Assessor Comments: | | | | | | | | | | | | Assessor: | Signature: | Date:_____/_____/ ___________ | | | | Internal Verifier’s Comments: | | | | | | | | | | | | Internal Verifier: | Signature: | Date:_____/_____/ ___________ | | | | ...
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...Table of Contents Q1. Tata steel has taken various strategies in the SCM to improve the performance of the organization. With reference to the Internet based information, discuss various strategic actions taken by this organization with regards to SCM to improve the finance and non- finance performance. 3 Introduction 3 Basic component Supply Chain Management 3 Plan 4 Source 4 Make 4 Deliver 4 Return 4 Supply chain management for logistic 5 Supply chain management for downstream 6 Tata Steel Strategic 6 Tata Steel supply chain logistic strategy 7 Tata Steel Supply Chain downstream strategy 8 Tata Steel finance improvement 9 Tata Steel non-finance improvement 9 Conclusion 11 Q2. Discuss various Supply chain activities (in relation to Lean Management) in a Toyota company in Danish Industries can learn and use for improved performance. 12 Introduction 12 What is Lean 13 Lean supply chain 14 Lean supply chain for Toyota Production System in Denmark 14 Value stream mapping 16 The VSM process 17 Performance improvement with implementation of VSM 17 Conclusion 19 Q1. Tata steel has taken various strategies in the SCM to improve the performance of the organization. With reference to the Internet based information, discuss various strategic actions taken by this organization with regards to SCM to improve the finance and non- finance performance. Introduction The Tata Group...
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...FINAL REPORT SUPPLY CHAIN MANAGEMENT IN AUTOMOTIVE INDUSRTY MARCH 13, 2015 TABLE OF CONTENTS INTRODUCTION 2 OVERVIEW OF SUPPLY CHAIN STRATEGY: 3 FORD: LOGISTICS AND SUPPLY CHAIN STRATEGY 3 About the company 3 Features of Ford system of manufacturing 4 Supply chain Design 4 Push Pull Strategy 5 Best practices 6 TOYOTA: LOGISTICS AND SUPPLY CHAIN STRATEGY 6 About the Company 6 Supply chain design 7 Key features of Toyota business model 7 Drivers of supply chain 8 Parts Ordering 9 Parts and Supplier Master 9 Forecasting 9 Toyota distribution model 10 Best practices 10 COMPARISON 10 ISSUES 11 RECOMMENDATIONS 12 REFRENCES 13 INTRODUCTION The Indian automotive industry, comprising vehicle and component manufacturers, has grown steadily since the economic liberalization of the early 1990’s. The arrival of major global auto companies has galvanised the domestic sector into adopting Supply Chain best practices. The changing business conditions of the 21st century has led to companies facing issues ranging from globalisation, economic uncertainty to new technologies and increasing consumer demands. In the automobile industry, as manufacturers design and build vehicles globally, their supply chains become increasingly complex with challenges that often stand in the way of profitability and higher shareholder value such as long order-to-delivery lead times, unreliable production schedules, excess inventory...
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...Mkrtich Parparcén, Luis Felipe Salas, Ana Karina Solano, Pablo May 28th, 2011 INDEX Content Butterfly Effect of Japan´s Disaster on Global Production. 1- Japan Background a. The relevance of Japan in global production and supply chain b. Economical impact of the Japanese Disaster 2- Impact on global production in important industries a. Automobile Industry i. Toyota b. Electronics Industry 3- Collateral impacts of the disaster a. Increase in electricity costs b. Explanation of why the yen is so strong. i. Supply Chain ii. Cheap Investment iii. GDP Impact iv. Export Economy v. Currency vi. Monetary Policy 4- Innovation in supply Chain and the Disaster in Japan a. The Top 10 Supply Chain Innovations from 1880-1990 (1) b. Supply Chain Innovation c. Supply Chain Innovation - Environment d. Long-Term Disarray after Japan Disaster Conclusions Bibliography Butterfly Effect of Japan´s Disaster on Global Production. 1- Japan Background a. The relevance of Japan in global production and supply chain Japan is an island nation located at the East of Asia, in the Pacific Ocean. Its currency of legal course is the YEN (¥). Japan has the tenth largest populations in the world with over 127million people and a GDP of USD$ 5,068,996 million by 2009...
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...on global production Professor: XXXXXXX Prepared by: Team X May 28th, 2011 INDEX Content Butterfly Effect of Japan´s Disaster on Global Production. 1- Japan Background a. The relevance of Japan in global production and supply chain b. Economical impact of the Japanese Disaster 2- Impact on global production in important industries a. Automobile Industry i. Toyota b. Electronics Industry 3- Collateral impacts of the disaster a. Increase in electricity costs b. Explanation of why the yen is so strong. i. Supply Chain ii. Cheap Investment iii. GDP Impact iv. Export Economy v. Currency vi. Monetary Policy 4- Innovation in supply Chain and the Disaster in Japan a. The Top 10 Supply Chain Innovations from 1880-1990 (1) b. Supply Chain Innovation c. Supply Chain Innovation - Environment d. Long-Term Disarray after Japan Disaster Conclusions Bibliography Butterfly Effect of Japan´s Disaster on Global Production. 1- Japan Background a. The relevance of Japan in global production and supply chain Japan is an island nation located at the East of Asia, in the Pacific Ocean. Its currency of legal course is the YEN (¥). Japan has the tenth largest populations in the world with over 127million people and a GDP of USD$ 5,068,996 million by 2009...
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...Inventory Management Assignment 1, Question:- Recent events in the global scene have had a significant impact on supply chains especially JIT operations. Discuss what these events are and their impact on the role of warehousing in the supply chain. JIT or Just-In-Time has been defined as an inventory control whereby is to maintain or control just right quantity materials in just right place at the just right time for the just right amount of products or manufacturing (Lee White, 1985). JIT concept was originated in Japan in the 1950s when the Toyato Motor Company developed a system known as “Kanban” to meet customer demand for various models with minimum delivery delays. When we talk about JIT we cannot run away from warehousing as warehousing is part of a supply chain logistic network. Warehousing is used for store or house of inventory for all stages of a supply chain JIT is a demand pull system in which manufacturing planning begins with the final assembly line and works backwards, not only through the various manufacturing processes, but also to the vendors and subcontractors supplying materials and components. Therefore two things must happen in order for JIT to work: ➢ All parts/materials/components must arrive where they are needed, when they are needed and in the exact quantity needed ➢ All parts/materials/components that arrive must be usable parts Hence any natural disasters occurred it will certainly affect the impact on supply chains especially...
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...INTRODUCTION OF SUPPLY CHAIN MANAGEMENT A Supply chain is defined as a set of three or more companies directly linked by one or more of the upstream and downstream flows of services, products, finances and information from a source to a customer. It is the systematic and strategic coordination of the traditional business functions within a particular company and across businesses within the supply chain to impose the long-term performance of the individual companies and the supply chain. Supply Chain Management focuses on the management of relationships to achieve better results for all members of the supply chain including customers. The three concepts of Supply Chain Manangement consisting of the business processes, network structure and management in Supply Chain Management that are interconnected tightly. In short, SCM is a total system approach to managing the entire flow of information, materials, and services from raw-material suppliers through factories and warehouses to the end customer. QUESTION 1 YOU ARE DECIDING TO SET UP A RESTAURANT, DECIDE WHAT ARE THE FACTORS YOU WOULD CONSIDER TO DO THIS AS A SUCCESSFUL BUSINESS MODEL ------------------------------------------------- ------------------------------------------------- Top of Form Bottom of Form INTRODUCTION I ever passed a restaurant with the customers talking out of the front door and wondered, “Wow, how did this restaurant become so popular?!” A restaurant doesn’t miraculously get popular overnight...
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...http://www.studymode.com/essays/Inventory-Management-622640.html INVENTORY MANAGEMENT 1. INTRODUCTION DEFINATION AND MEANING Inventory is a list of goods and materials, or those goods and materials themselves, held available in stock by a business. Inventory are held in order to manage and hide from the customer the fact that manufacture/supply delay is longer than delivery delay, and also to ease the effect of imperfections in the manufacturing process that lower production efficiencies if production capacity stands idle for lack of materials. The reasons for keeping stock All these stock reasons can apply to any owner or product stage. Buffer stock is held in individual workstations against the possibility that the upstream workstation may be a little delayed in providing the next item for processing. Whilst some processes carry very large buffer stocks, Toyota moved to one (or a few items) and has now moved to eliminate this stock type. Safety stock is held against process or machine failure in the hope/belief that the failure can be repaired before the stock runs out. This type of stock can be eliminated by programmes like Total Productive Maintenance Overproduction is held because the forecast and the actual sales did not match. Making to order and JIT eliminates this stock type. Lot delay stock is held because a part of the process is designed to work on a batch basis whilst only processing items individually. Therefore each item of the lot must wait...
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...As a result of the tsunami, a nuclear meltdown occurred and the effect on supply chains for the automobile industry was felt worldwide. This impact was not only felt by the factories and suppliers located in Japan. The ending result of this natural disaster will effect their entire supply chain throughout the world. Specifically mentioned are the manufacturers and suppliers of Toyota and Nissan will feel a negative impact on their production. As a result of the tsunami and the nuclear meltdown in Fukushima, Toyota had to completely shut down all of its Japanese based plants. This caused a problem since their popular model the Prius is only built in Japan. Do to the perceived shortage, the dealerships increased the price of this model by $1800 within the first week after the tsunami and, within weeks, the dealers will be charging hundreds or thousands over sticker price to match demand. Nissan will look to find ways to continue production with a limited supply of parts. They will look to stop certain trim models and are will fly parts across the pacific instead of shipping them to help their supply of parts. This will enable them to keep factories working and production flowing, albeit at a higher cost. The customers are not the only ones who will feel the effect of the disruption in the supply chain, the factory workers that work for a companies such as Venture Express, who makes seats for Nissan automobiles, will have to slow production on their product until the rest...
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...it is possible to understand because Toyota almost used the same theoretical models and perspectives when seeking oversea market. As we know, car sales declined steadily after Asian financial crisis, which is why Toyota wanted to seek oversea market. How? Toyota decided to design the affordable cars rather than high quality cars, which can satisfy the market’s needs. Besides, Toyota has good supplier networks since it find many developing countries like Thailand and Indonesia as suppliers. It is helpful for the localization of component sourcing. IMV vehicles are five models with three body vehicles and those shared a common platform. It is a fast way to reduce costs and gain profits. 2. Toyota has hedged against disruption of the supply chain by building in a degree of inventory, which is in contrast to the norm of eliminating waste found in Toyota’s Japanese, North American and European facilities. What other risk factors are present with the management of a regionally constructed and globally linked production structure? First, all production does not have to rely on components sourced, which is expensive. Second, operating in emerging economies can also bring associated risks, particularly with regard to disruption of the supply chain. Moreover, Toyota’s in East Asia has emerged from the necessity of dealing with the complex nature of the regional division of labor and of a need for better coordination of supply chains and parts complementation under AFTA...
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...system in this case? Tombow uses in its supply chain management both in-house production and subcontractors. The exact share of in-house production and outsourced production is not known exactly. This ratio varies across product lines. As an example, Tombow’s supply chain set up used for Object EO can be analyzed. To produce it, Tombow coordinates six vendors. Two of them - Kantoh and Nagano - are the main suppliers. Kantoh produces components and Nagano, besides production of components, is also responsible for the assembly work. In practice, Nagano outsources assembly work to residents near Nagano´s factory. There are currently challenges with supply chain as lead-time for production is three months; still 30-40% of the deliveries are late. Advantages of utilization of external subcontractors in the supply chain are innumerous. In Tombow’s case, it is possible to see that there increases flexibility during demand peaks, since Tombow has seasonal demand and personalization brought demands with difficult planning profile; idle capacity reduction; implementation of new products (diversification) made simpler; quick response to customer needs; utilization of special knowledge from suppliers of certain components; transfer to subcontractors, through fixed price, of the risk in production cost; vendors and assembly financially independent of the company; ability for multi vendors as Tombow to switch sources in case of supply failure; market forces subcontractors to keep...
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...August, 2007 The Seven Deadly Wastes of Logistics: Applying Toyota Production System Principles to Create Logistics Value Joel Sutherland Managing Director Center for Value Chain Research Lehigh University, 621 Taylor Street, Bethlehem, PA 18015 E-mail: jos206@lehigh.edu Bob Bennett President Lean Consulting Associates, LLC, and Group Vice President (retired) Toyota Motor Sales USA, Inc. 16 Deerhill Drive Rolling Hills Estates, CA 90274 E-mail: bobben1@cox.net CVCR White Paper #0701 Abstract A business value chain is an end-to-end set of activities that can be applied to a product or service making it ready for the next activity. Most resources used in an activity add value—some do not. The resources consumed (such as people, time or equipment) that do not add value add cost and should be eliminated. This is the essence of the Toyota Production System, or Lean (the term used in the U.S. for what was originally known as the "Toyota Production System"). This article reviews the evolution of Lean principles from the beginning of Henry Ford’s revolutionary assembly line process for his Model T automobile in the early 1900’s, through Taiichi Ohno’s creation of the famous Toyota Production System in the mid-20th century, to adoption of these principles in addressing today’s logistics and transportation challenges. This paper presents real examples from executives who worked within the Toyota Production System and were effective in expanding these principles beyond...
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