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Supply Chain Operations

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Your boss has asked you to analyze the quality issues facing your supply chain operations. Include:

1) Benchmarking
Your discussion may include some of the following elements: Against which companies will you benchmark? What parameters will you attempt to benchmark? How will you obtain information on those (competitor) companies? Will you rely on public reports and documents such as Annual Reports and SEC filings, or will you need to enlist the services of a consulting/business intelligence organization? Will you attempt to benchmark against only companies in your industry or look at world-class companies in other industries? If you look at companies in other industries, how will you adjust/account for the difference in industries?

2) Change Management
Your discussion may include some of the following elements: Do you have the (internal) resources to lead/control the changes that will be needed? Do you have the right personnel now, or will you need to replace/reassign some people? Do you have the (internal) resources to conduct the training that will be required, or will you need to hire a training organization? If you hire, what are the characteristics of the organization that you will be looking for? Who will be responsible for managing the corporate/divisional change? What is the time frame for achieving the change? Who will define the change that needs to be made? Is there a budget for the process? If so, how much? Is the budget adequate for the anticipated man-hours that will be expended? How will your organization recognize when the change process is complete? What is your organization's definition of success?

3) Performance Measurement
Your discussion may include some of the following elements: What are the key performance measurements that best define/represent the current performance level? Inventory turns, cost per transaction/shipment, labor efficiency (dollars of output divided by man-hours), machine efficiency (dollars of input divided by hours of operation), equipment uptime, transportation costs, raw material costs, or overhead?

You should include comments and perspectives from both Juran and Deming.

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Supply Chain Operation is discussed very comprehensively in this explanation..

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Quality and system/process improvement
Your boss has asked you to analyze the quality issues facing your supply chain operations. Include:

1) Benchmarking

Your discussion may include some of the following elements: Against which companies will you benchmark? What parameters will you attempt to benchmark? How will you obtain information on those (competitor) companies? Will you rely on public reports and documents such as Annual Reports and SEC filings, or will you need to enlist the services of a consulting/business intelligence organization? Will you attempt to benchmark against only companies in your industry or look at world-class companies in other industries? If you look at companies in other industries, how will you adjust/account for the difference in industries?

I will attempt to benchmark the performance of my division against Ford Motor Company and Toyota. The parameters that I will attempt to benchmark against Ford and Toyota will be the average time inventory remained at the manufacturing facilities. The amount of time inventory remained at Ford and Toyota can be obtained from the published final accounts of the company. The reason I am benchmarking against these companies is that one of my objective is to reduce inventory levels for which I intend to adopt just-in-time. That apart, Ford has been one of the first American companies to seek help from Dr. W. E. Deming: I also need to improve the service provided to the customers. For this I shall benchmark the performance of my division's customer support system with that of computer systems maker HP. The parameters that I will compare will be the speed of response, availability of spares and competence of the customer service personnel. In case of HP these parameters have to be gathered through research as published sources will not have this information. I might also use business intelligence companies gather information about HP.

I have decided to go in for world-class companies because my ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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