Please read the following article (along with the others in the required readings) and learn how Cessna went through a very substantial and well-documented quality initiative program to improve its logistics systems.
Cessna aims to drive SCM to its very core,
Purchasing; Boston; Jun 6, 2002; James P Morgan.
When Michael R. Katzorke, vice president of supply management at Cessna Aircraft in Wichita, Kan., began working on the company's supply chain management system in 1998, Cessna was still a traditional aerospace firm. It had a functional orientation, was vertically integrated, had traditional processes and practices, and there was no provision for Total Quality Management or Six Sigma. To bring about the more fundamental and permanent changes they were seeking, Katzorke and his Cessna colleagues - both at the executive level and in supply management - have developed and deployed no fewer than twenty-one practices and tools aimed at: 1. driving the best possible supply-base rationalization decisions, 2. accelerating the supply-base rationalization process, 3. improving suppliers' performance, and 4. integrating key suppliers with Cessna's critical business, manufacturing, and design processes. Brief discussions of each of these steps are presented.
Research a different organization that has also gone through a major logistics quality initiative recently and review that process.
Quality Initiative in Logistics for Ford Motors
Existing Logistics Network
Ford is one of the leading automotive manufacturers in the world. It produces automobiles under several major brands: Ford, Lincoln, Mercury, Mazda, Land Rover, Aston Martin, and Volvo. As a result the company has to maintain one of the automotive industry's most complex manufacturing, transportation, and distribution networks. In the existing logistics network, suppliers made multiple trips to deliver same parts to different plants. This approach is called plant-centric approach, wherein suppliers pick up a small load of parts, deliver it to one plant, then go back and pick up another small load of same parts and deliver it to a different plant. Carriers with half empty load would often cross paths with each other while going to the same plant. This design apart from being highly inefficient, allowed for massive inventory build up at the plant.
Following were the other problems with Ford's assembly plants:
Each of Ford's 20 American assembly plants maintained their own logistics operations. Hence, the company had a decentralized approach of handling logistics which enabled total control of logistics at the plant level. However, at the company level it became complex activity to keep a track of logistics across the organization.
Decentralized logistics presented costly redundancies in materials handling and transportation
Ford Parts Supply ...
Quality management for Cessna Aircraft is examined.