Complex Supply Chain Networks and Supply Chain Drivers:
Abstract
The analyst in the Distribution, Engineering, Maintenance, and Productions Management Group of the Central Engineering Department for Canbide Corporation is in charge of analyzing various operations at all of Canbide’s facilities. The purpose of our group is to analyze operations, report our findings, and make recommendations for continued improvements and implementations of Operations Management (OM) tools.
The remainder of this report summarizes our findings and recommendations on three of our electronics facilities located in Oregon. It is a result of a collaborated effort by the entire group, research, analysis, observations, communications with management, and interviews with the production and inventory planning staffs at these facilities. In order to focus the report on the main findings rather than all the individual problems and associated recommendations, we’ve included a detailed outline as an appendix to this report.
Our initial visit to the facilities allowed us to gather general information such as locations and relation to each other, facilities and production layouts, and business/operations information. It was discovered that facilities T and P were located in the same building but run as separate businesses and that S facility was about seventy miles from them. They share common customers and are dependant on each other. The S facility produces parts and sub-assemblies for facilities T and P and the “accessory” parts for the S facility are purchased by and shipped from the P and T facilities.
This creates a complex intra-company and external supply chain consisting of all business processes and information used to provide our product to the customers; this includes everything from procurement of raw materials, through production, and to distribution. Because of the relationship of these facilities they are suppliers and distributers to one another, making the need for supply chain management even more critical.
Through the aforementioned methods, we were able to uncover many issues with the supply chain and management of it. These are outlined in the appendix. The main areas that need concentrated on are communication, material and inventory handling and procedures, order entry processes, supervision at the facilities, and problems in production flow.
There is an apparent lack of communication from all levels within each facility, among the three facilities, with this division and the parent company, and along all aspects of the supply chain. The majority of the problems with the supply chain are directly or indirectly related to this lack of communication.
Vonderembse, M.A. & White, G. P. (2013). Operations Management. San Diego, Ca: Bridgepoint Education, Inc.
...to deal with inbound and outbound logistics, one that is made up mostly of the personnel from outbound logistics. These professionals deal with the second core competency of Deere, logistics, separate from the manufacturing of tractors and lawnmowers. The creation of this team helps eliminate the risk Fedex’s poor performance (managers were not pleased with Fedex’s centralized transportation management service) and need to measure performance of a 3rd part continuously. As a result, performance is self-managed. We expect as the IT system is used to optimize and plan transportation routes amongst inbound and outbound trucks, cost savings will increase more rapidly. We believe internal continuous improvement, leaner logistics operations and synergies amongst all logistics activities will lead to the $69 million goal being met by the third year after implementation.
After recent entering into the new product line, electronic manufacturer Kuiper Leda, Inc. facing a big challenge. Being a smaller manufacturing firm for ten years, company was not expecting to get a large and urgent order from Midland Motors, an American Original Equipment Manufacturer. Executive management team concerns about Kuiper Leda approach to delivering products. Always working with smaller customers, company only has a minimum capacity for producing 1,500 ECU and RFID units, which is very low value for the order requirements.
Some of the bottleneck foremen come up with methods of streamlining their processes to increase throughput at their stations. And for a time, things seem to be improving and inventories are slowly shrinking and more backlog orders are being filled. Then Stacey reveals a proble...
Cover the issues involved with supply chain management such as placement of supply chain management within the organization and the relationship supply management holds with other departments, with an overview of management efforts in supply chain management.
Harland (1996) describes supply chain management as managing business activities and relationships (1) internally within an organization, (2) with immediate suppliers, (3) with first and second-tier suppliers and customers along the supply chain, and (4) with the entire supply chain.
Introduction Bytes Products Inc. is one of the largest suppliers of the production of electronics components in the Midwest. The annual sales of these products are at its records high and now it’s becoming hard for the company to keep up with the increased demand. James M Eliot is the CEO and chairman of the board, is trying to address the problem faced by the company to meet the demand of its product. Currently Bytes products dominate the market with a good 32% market share. Mr. Eliot is trying to solve the problem to constantly dominate the market by increase the number of plants they currently have, so they can meet the demand.
“Supply Chain Management encompasses the planning and management of all activities involved in sourcing and procurement, conversion and all logistic activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third parties service providers and customers. In essence, Supply Chain Management integrates supply and demand management within and across companies.’
In general terms, the organizational structure of the Electronic Products Division of Allentown follows the same structure of the other divisions. Under the General Manager there is a controller, a product development manager, a manufacturing manager (with three plants treated as three different profit centers), a sales manager and a marketing manager. The last two may be the major difference regarding the general structure of the company, since sales and marketing are usually combined in one single department. The breakdown in two departments has been made by the general manager, reasoning that the sales division should be concerned about short-term actions, while the marketing one should take care of pricing policies and strategic plan.
Another lesson of the game materialized gradually at first, but steadily became more and more evident with each round of play. This lesson was the demonstration of the overwhelming ineffectiveness and utter futility of approaching logistics from the position of total ignorance. With no forecast or sales history to serve as a guide or predictive tool, the participating supply elements simply had nothing to base their projected order quantities upon other than pure conjecture. Operating in a vacuum relative to the other players of the supply chain was nothing less than counterproductive. Closely related was the development of a subdued, but underlying, sense of hostility within the supply chain as orders were placed that didn’t correspond with anticipated amounts. When this type of communication breakdown exists in the real world, an irritation between supply elements invariably manifests itself. Additionally, the resulting waste of time, material, storing of inventory and other resources expenses further fuel the fires of frustration and discord between supply elements.
• Width: incorporates organizations that give gear, administrations, supplies and designing backing for configuration investigation, boring, refining and different operations
• The supply chain is getting divided. At one time vertical incorporation was the request of the day. Yet the present pattern is to focus on center fitness and outsource more exercises. Along these lines the supply chain is more divided now.
Slack, N., Johnston, R. and Brandon-Jones, A. (2011).Essentials of operations management. 1st ed. Harlow, England: Financial Times Prentice Hall.
Inventory management involves planning, coordinating, and controlling the acquisition, storage, handling, movement, distribution, and possible sale of raw materials, component parts and subassemblies, supplies and tools, replacement parts, and other assets that are needed to meet customer wants and needs (Collier & Evans, 2009). In order for business and supply chains to run smoothly, they must meet all the listed requirements for effective inventory management. Thus, inventory management must be managed wisely in order to be a successful an...
Woodman, Chester L., Kurt Kuster. ?Small shop, big decision.? American Machinest (Apr. 2001): 78 EBSCOhost. Online. Nov. 2002 .