...Process Design for Riordan Manufacturing The Riordan Manufacturing plant in Hangzhou, China operates its manufacturing unit to prepare the electric fan to provide the worldwide supply based on the production forecast sales extrapolated using the theory of moving averages for last three years. This paper includes an analysis of the material requirement planning, existing process design, application of supply-chain concepts including any available global opportunities. Additionally, this paper will include a production forecast and as well as an implementation plan for lean production and a just-in-time system to optimize the profit at Riordan and improve customer satisfaction with timely delivery of orders with appropriate inventory management system. Material Requirement Planning The material requirement planning of Riordan manufacturing is designed to supply the required material for creating the parts of electric fan in order to produce the components at each phase of assembly line production. The receiving department collects the raw material, which is processed in the molding department to make it suitable for generating parts of the fan after being polished and trimmed in the trimming department. These parts are further processed in the assembly department to make larger components such as fan blades or fan housings. The packaging departments puts each parts of the fan in right package with adequate labeling so that it can be delivered to distribution center...
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...focusing all our time on the logistics for the stores which is the main reason for escalation of high costs and continuing losses. We are not focusing on our core competencies of our business which is our software and service level. Four companies were reviewed for focusing on the logistics of the equipment for the stores. I would recommend going with Ingram Micro as their focus is on supply chain management. Easy Internet Café needs centralized warehousing where all equipment and furnishings are staged before forwarding onwards to the franchisees to reduce costs. With centralized warehousing it will reduce costs, especially if the location was more central to our customers for faster and easier shipping. This will also simplify Inventory management throughout the supply chain as there would be one management system instead of multiple. This is exactly what eIc requires in order to cut costs and to meet our goal of 10 stores per week over the next couple years. Issues Identified Immediate Issue: The immediate issue is that there is not a real operating plan for how eIc intends to supply, and open each new franchise which is an integral part of cutting costs to stem the...
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...increasingly turbulent commercial world, achieving an efficient and effective supply network is central to business success. Every single item in your view right now from the shirt you’re wearing to the screen of your computer came from somewhere. The world we live in depends on logistics and supply chain managers to make products available to us. These managers are the ultimate back-room power players moving millions of dollars of product every day. Logistics and supply chain managers are the air traffic controllers of the global market and can give a company the advantage it needs to surge ahead of its competition. If any part of the supply chain fails, then a business can find itself with a big problem. That's why good supply chain managers always understand the importance of efficient logistics in supply chain. DIFFERCENCE BETWEEN THE CONCEPTS:- Logistics Management: It is the management of the flow of goods, information and other resources, including energy and people, between the point of origin and the point of consumption in order to meet the requirements of consumers at the lowest cost possible. Supply chain management: It involves coordinating and integrating Logistics Management within and among companies. It is the management of a network of interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain. Supply chain management plans all movement and storage of raw materials, work-in-process inventory...
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...Supply chain management is the management and coordination of a product’s supply chain for the purpose of increasing efficiency and profitability. The term supply chain management was coined by a consultant named Keith Oliver of the strategy consulting firm Booz Allen Hamilton in 1982. It combines processes of planning, implementing, and controlling the operations of the supply chain with the purpose of satisfying the customer requirements as efficiently as possible. It attempts to control or link the production, shipment and distribution of a product. This is done by keeping tighter control of internal inventories, internal production, distribution, sales and the inventories of the company’s product purchasers. It integrates supply and demand management within and across companies. The inventory contains the raw materials, work-in-process goods and completely finished goods that are considered to be the portion of a business’s assets that are ready or will be ready for selling. Inventory represents one of the most important assets that most businesses possess because the turnover of inventory represents a primary source of revenue generation and subsequent earnings for the companies’ shareholders/owners. However, possessing a high amount of inventory for long periods of time is not usually good because there are inventory storage, obsolescence and spoilage costs. On the other hand, possessing not enough inventory isn’t good either, because the business runs the risk of losing...
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...Preparedness 5 2.2 Disaster Response 7 2.3 Collaboration during Disasters 10 3. Project Management and Humanitarian Logistics 10 4. Conclusion 12 Bibliography 13 Appendix 1 – List of figures 16 Service process design: Emergency Telecommunications Cluster during Humanitarian Disaster Relief Operations 1. Introduction On 8 November, 2013, Typhoon Haiyan struck the islands of the Philippines unleashing record sustained wind velocities of 315 km/h, (United Nations Office for the Coordination of Humanitarian Affairs , 2013). The storm which initially affected over 18 million people included the devastation of large urban population centres in Tacloban City and Roxas City. On November 9, the President of the Philippines appealed to the global community requesting international support. This request called for assistance in priority identified sectors including search and rescue, fuel, and telecommunications (Government of Philippines, 2013). Within 48 hours in response to the government request, the Emergency Telecommunications Cluster (ETC) activated, deploying staff and equipment to contribute to the Humanitarian Relief Operations (HRO) through provision of voice and data services as described in their ITIL based service catalogue (ETC, 2013). The provision of these harmonized and predictable services within common operational areas acts as an enabler for the humanitarian supply chain and related logistical requirements (World Food Programme, 2012). The ETC, led by...
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...Global Supply Chain Advantages Paper Lisa Agnew, Heidi Lankford, Renae Pace, Courtney Ray Strategic Supply Chain Management ISCOM 370 Adrian Crystal Martin January 31, 2010 University of Phoenix Online Riordan Manufacturing Supply Chain Riordan Manufacturing is a worldwide manufacturer of plastics. The organization employs 550 people and has projected annual earnings of $46 million. The company’s products include plastic fans and fan parts produced at its facilities in Hangzhou, China and custom plastic parts produced at its plant in Pontiac, Michigan. The company's major customers for its standard and customized fans are automotive parts manufacturers, aircraft manufacturers, the Department of Defense, and appliance manufacturers. Recently, the company has experienced some issues with its. On-time deliveries in the China plant have averaged only 93% over the past year, which is inadequate for a Six Sigma company focused on exceeding ISO 9000 manufacturing standards. The senior management team must examine all steps in the material requirements planning, supply chain management, and production and inventory processes to look for potential areas to eliminate waste and redundancies, gain efficiencies through automation or other process changes, and improve the process design and supply chain for the manufacturing of its electric fans. Production and Inventory Processes Change Recommendations After reviewing the production process of the plant in Hangzhou, China...
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...customers. Supply chain management, however, is about managing the flow of materials, components and information throughout the total pipeline from raw materials to end user, and is based on effective customer/supplier relationships to ensure quality, delivery, cost and flexibility can be improved throughout the supply chain. This integration will result in a reduction in the total cost of logistics rather than the cost of each activity. This is due to the improved flow of material and information, improved transport and warehouse asset utilisation and elimination of duplicated department efforts. Consequently this results in an improved capability to respond to customers ―Quick Response‖ needs. The goal is to improve customer service, save cost and increase revenues. to satisfy the end customer whilst achieving competitive advantage over any competitors through ensuring maximum efficiency and return. To respond more accurately to actual customer demand and keep inventory to a minimum (Pull System), leading companies have adopted a number of speed-to-market management techniques that help them to build a comprehensive supply chain structure, such as just in time (JIT), quick response (QR), efficient consumer response (ECR) and vendor managed inventory (VMI). There is a need to develop collaborative relationships with suppliers and customers to allow mutual understanding, closer working and hence enable quantum leaps in supply chain management. Since supply chains, not individual...
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...Study Guide for Chapter 6: 1. What is a spend analysis? 2. Describe the strategic sourcing process from start to finish. 3. Describe the portfolio analysis matrix tool and how it is used to develop supply management strategies. 4. What are the major types of supply management strategies? 5. Why must organizations develop suppliers? Is supplier development a long-term trend? Explain. 6. What do you think are the reasons why there are so few companies classified as Stage 4 companies? 7. What are the tools to conduct market research on suppliers? Briefly explain each. 8. A/An _____ refers to a specific family of products or services that is used in delivering value to the end customer. a. spend analysis b. decentralized structure c. category * d. centralized structure e. hybrid structure 9. A _____ is concerned with (1) the scope or boundaries of each business and the links with corporate strategy and (2) the basis on which the business unit will achieve and maintain a competitive advantage within an industry. a. commodity strategy b. corporate strategy c. business unit strategy * d. functional strategy e. supply management strategy 10. A/An _____ is an annual review of a firm’s entire set of purchases. a. cost analysis b. price analysis c. make-buy analysis d. technology roadmap e. spend analysis * 11. Which...
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...Business Report Managing Operations Tamera Fluaitt Western Governors University Business Report Supply Chain Strategy The strategy I recommend is the Few Suppliers Strategy. This strategy is based on forming long-term relationships with few suppliers and they more likely understand the end user. In using the few supplier strategy your company can create value by allowing economies of scale which can lower transaction and production cost. Long term suppliers also are more likely to understand what the acquiring firm and the end customer wants. If you can attain a few suppliers with a large commitment they may be willing to participate in the Just-in-Time (JIT) system. They also can help add to the design of the product by using their technological expertise. You may also have contracts with these suppliers that last through the products life cycle. The reason this strategy is recommended is because it can be difficult to deal with many suppliers. Your company needs to be assured that you can get the best product for the lowest price. When you are dealing with many suppliers you are using valuable time trying to get the supplies needed at the lowest price to produce your product. This can cause a lapse in production because of late raw material shipments which converts to loss of income. The few supplier strategy can eliminate the game playing. Your agreement with the supplier can help save money by negotiating the lowest price. As your relationship trust builds and...
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...exposed to numerous supply interruptions and have grown accustomed to rapidly fluctuating supply and demand patterns. Kraljic (1983) asserts that purchasing calls for a total change of perspective: from a mere operating function to a strategic management of supply. In an intricate supply environment, simple monitoring of current developments is inadequate for a growing organisation like, OMITTED. Rather, the risks and complexities associated with purchasing should undergo comprehensive pre-evaluation and be curbed under extensive management strategy. In 1983, Peter Kraljic delved deeper into this issue by devising a simple but effective technique in assessing supply conditions with the intention of formulating effective supply strategies. To this day, the method is widely regarded as one of the most powerful supply management tools and has acted as the backbone of many organisations, bringing long established success to large companies - most notably, Shell, Alcatel and Philips (Van Weele 2000). The two phase Kraljic approach The approach devised by Kraljic follows a simple two step procedure in formulating different supply strategies. First, all purchased items and services are classified in a matrix form with respect to their profit impact and supply risk as displayed in Figure 1 below. Second, purchasing strategies and action plans are developed according to the classifications. High Leverage Strategic Profit impact Non-critical Bottleneck Low Kraljic 1983 ...
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...What is “management”? * Plan * Implement * Control * Essential business functions * Marketing * Finance Operations * Important terminology * Tier, echelon * Customer versus consumer * Upstream versus downstream * Inbound versus outbound * Consumer demand versus derived demand All demand is derived from consumers * Demand originates from consumers (individual wants and needs) * It propagates as derived demand along the supply chain through retailers, wholesalers, manufacturers, raw materials suppliers. * If your customers can’t sell you can’t sell! * Why care about customers’ customers, etc? 2. Quality of distribution channel * Who has bought a product from Coca Cola? * The quality of a firm’s distribution channel can significantly impact its sales performance (revenue, profits, etc.) * Sales agreements, business relationships, competitors * Geographical coverage 3. Market orientation * Gathering, analyzing and disseminating customer information * Channel members provide important information about customers, markets, trends, changes, opportunities and challenges 4. Reverse logistics * Returns, repairs, unsold merchandize, etc. * Important for customer satisfaction, major concern for customers * Improve customer satisfaction, reduce unnecessary costs 5. Supply chain evolution ...
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...Supply Chain Management Running head: SUPPLY CHAIN MANAGEMENT AT DIMCO Supply Chain Management at Durham International Manufacturing Company (DIMCO) Revenia J. Smith Strayer University SUPPLY CHAIN MANAGEMENT AT DIMCO Abstract (not required) SUPPLY CHAIN MANAGEMENT AT DIMCO 1. Discuss the Current Supply Chain System at DIMCO In order to manufacture its product line, DIMCO uses approximately 1,350 raw materials and/or components purchased from approximately 375 different suppliers worldwide. At present, DIMCO ships finished products to a central warehouse that supplies 10 regional distribution centers (RDC) which are composed of six domestic and four foreign RDC’s. The RDC’s supply 120 local distributors. The local distributors supply 350 retailers. DIMCO does not use supply chain management program for manufacturing its worldwide product line of various consumer electronic items ranging from humidifiers to massagers. The CEO, Lucille Jenkins believes that implementing supply chain management would be profitable, and that DIMCO, having integrated its internal processes, is ready to integrate the suppliers or the distributions. Therein, lays the question of which to integrate first-the suppliers or the distributors. There exists a need and desire for including DIMCO’s suppliers and distributors into the supply chain system by implementing an efficient supply management system that will not alienate those suppliers and distributors. Lucille...
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...adapt the idea of virtual integration to improve its supply chain. By the use of technology; it wanted to reduce its working capital and increase profits. Moreover, the company was emphasizing more and more on shareholder value and customer responsiveness so they were looking into reengineering some of their processes which can help improve their current forecasting model and reduce OTD cycle times substantially. With new business models prevailing, Ford did not want to be left behind; they were looking at high-tech industry’s growth in the recent years and thought if they could implement some these ideas to their business. Ford has always been a forerunner in employing technology to overcome its constraints of information flow between its global manufacturing sites, they wanted to implement a similar I.T solution to get the better of its suppliers. But having such a large supplier base was making it difficult to manage; then they looked at high tech industry’s leading player DELL who was not only growing phenomenally every year but was also successful in building proximity to both its suppliers and customers. A comparative analysis of Ford and Dell’s SCM operation helps understand the differences in their organizational models and find strategies that could be applied for Ford’s success. Different areas like supplier management, sales, inventory management and customer experience have been compared to identify the bottlenecks in Ford’s operation. Like Dell, Ford can utilize IT...
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...SUPPLY CHAIN MANAGEMENT Supply Chain Management (SCM)" is to share information and management resources to eliminate the waste of business processes as much as possible, as one business process beyond the walls of companies, organizations, and divisions aiming for total optimization. Supply chain management synchronizes demand with a business unit as a whole by using materials/parts and resource capacity such as machines and workers and considering constraints (bottlenecks) to increase the flow from materials/parts supply to product selling, i.e. the cash flow speed called "throughput". PROBLEM:- It was identified that the major problems commonly faced by manufacturing firms were: • Supply disruption risk acts as a logistical impediment; • Inaccuracy and inconsistency of information breed inefficiency between SC entities; • Uncertainty in supply and demand jeopardises the decision making capabilities of manufacturing firms; and Regulatory compliance stagnates the dynamism of the SC. SOLUTION:- The most crucial of the above mentioned solutions to the manufacturing industry for effective supply chain management is the embracement of new technologies, specifically e-manufacturing and instilling a risk management culture with senior management acting as catalysts. PLANNING SUPPLY AND DEMAND * Forecasting and adapting to changes in demand and supply is applicable to the entire SC affecting upstream, manufacturing and downstream processes and arises from...
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...that for the supplier, the lead time is the time it takes to be paid while the customer lead time is the time it takes from placing the order to the delivery. Both concepts are extremely important to logistics management in that speed of delivery to customers and of payment to suppliers is an element that can place an organization in a competitive stance as order winners. Jones and Towill (1998) stress that organizations today share similar technology and similar work practices but that the distinguishing factor is the level of responsiveness they give and that consumers will respond in favour of the company that supplies what is needed ,at the time it is needed. THE IMPACT OF LEADTIME ON LOGISTICS MANAGEMENT . Logistics management is aimed at making available the right quantity and right quality of products to be supplied. This must be to the right place and at the right time in proper condition. All this being achieved in the most cost effective manner. Rushton et al (2010) For this to be successfully met, Lead time must be put into consideration to balance the demand time and time of supply. Kazaz et al (2012). The different stages that begin with the request of material and lead to the final order receipt is the order cycle. As stated by Christopher (2011) Bottlenecks , inefficient processes and fluctuations in order volume often lead to variations in the time...
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