...Quality Issues in a Global Supply Chain: Who is responsible? There is not one entity to blame solely for the faulty capacitor. A supply chain that involves a lot of different stakeholders makes it harder to keep control over the process. In a case like this, there is more than one factor to take into consideration; financial, ethical, and contractual burdens are to be placed on the responsible corresponding parties. All stakeholders share some responsibility for the supply chain fiasco. It seems that placing the blame on one party would be unfair, which is why it is better to evaluate each entity’s responsibility and fault in the issue. As the OEM and final user of the capacitor before reaching the customer, Ford should have been more involved in the supply chain and quality control. With more than two tier suppliers involved in the production of the actuator it is important for the customer to be closely involved in order to minimize margins of errors. With better and closer involvement in the production process, communication in the supply chain could have been enhanced, allowing for a more efficient and effective strategic coordination between suppliers. However, Ford failed to pay attention and guarantee final quality checks, to evaluate for better suppliers, and lacked the drive to ensure perfect working conditions in the production line and decisions made throughout the process. Even though they had hired Automek to manage the supply chain on their behalf, they were...
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...Thinking, viewed 5 September 2012, http://youtu.be/pEIXE9DI9e4.) System thinking is useful to global supply chains because it is an approach to problem solving, by viewing “problems” as parts of an overall system, rather than reacting to specific part, outcomes or events and potentially contributing to further development of unintended consequences. System thinking is not one thing but a set of habits or practices within a framework that is based on the belief that the component parts of a system can be best understood in the context of relationships with each other and with other systems, rather than in isolation.() The company that this analysis will focus on is Coca Cola company, in particular it will focus of the challenges they face in globalisation, industry specific challenges, some risk and failure points, system thinking and the product life cycle. The coca cola enterprise is a globalised company with an iconic brand name that is known around the world. It is a global business with “17 manufacturing facilities spread out around the world, it produces 11 million bottles and cans per year and employs over 13,500 employees”.(http://cokecce.com) The risk associated with globalisation can be broken down in four sections. Supply, demand, operational and security risks. (metzgar ) states “Supply risk which is the distribution of outcomes related to adverse events in inbound supply that effect the ability of the focal firm to meet customer demand ( in terms of both quantity and...
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...Xbox production to Flextronics? The strategic advantage to Microsoft of outsourcing Xbox is to manage manufacturing and logistic capabilities to make the Xbox itself and to manage a global supply change. Flextronics also sells computer hardware and the products represent a much smaller part of the company’s overall revenues. When taking into consideration whether to manufacture the Xbox in house or to outsource, the company chose the latter strategy. Microsoft was able to continue to focus on its core business while allowing another company, Flextronics, which has expertise in managing a global supply chain to control production. 2. What were the risks associated with outsourcing to Flextronics? Did Microsoft mitigate these risks? Do you think Microsoft would have been better off making the Xbox itself? The risk associated with outsourcing to Flextronics is the company makes the decision to outsource; it gives up control over the production process. Some of the risks also included a suitability, quality, and so on will become the responsibility of another company. Microsoft decided to outsource Xbox production; the company chose to work with Flextronics, which it had a long history with. Microsoft would not have been better off making the Xbox itself because in the long run the jobs can stimulate the economy and its easier to control a plant when you’re watching it grow. 3. How did Flextronics’ industrial park strategy enable the company to respond to national changes...
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...some countries than in others), does it have what it takes to succeed in India? Assuming that Wal-Mart has done the required research about the needs of the market in India (including cultural differences and economic factors) Wal-Mart has a great advantage that up to this day competitors are trying to imitate but had failed; the efficiency in its entire supply chain. Because of this reason it is likely that Wal-Mart will succeed in this new market, since currently about 35% to 40% of fruits and vegetables get rotten while in transit, the advantage of Wal-Mart super efficient supply chain would void that amount of losses that retailers face right now. 3. As an Indian government official, would you recommend the full-blown opening of the retail sector? I will recommend to the full opening for FDI in the retail sector because I think it will have great benefits for the population since the new businesses will create job opportunities directly and indirectly. Plus, companies such as Wal-Mart, that looks for efficiency, most likely would obtain its products from local suppliers in order to keep up with its great supply chain, which...
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...The Role of the Engineer in the Value Chain Executive Summary In the recent past, value chain management has undergone radical transformation through various stages of automation, optimization and integration. This is based on a variety of reasons such as shortened technology and product development lifecycles, globalization, and pressures of competitive forces. This has forced organizations to review their value chain systems in order to survive and grow in such dynamic economic environments. In the field of engineering, value chains have become vital aspects of operations management when it comes to the application of engineering systems to the industrial and commercial processes. The main purpose of this paper is to disentangle the role of the engineer in the value chain. In this context, it will go further in analyzing the key elements of value chain and any accrued benefits that come with use of engineers in the value chain management. Value Chain Analysis The inception of Value Chain is associated with Michael Porter. He gives his understanding to this concept using a model he referred to as; “Porter’s value chain model” (Sekhar, 2009: 115). This model evaluates the strategically vital activities in a firm that boost its competitive advantage. Such competitive advantage is usually achieved through the core competencies of the firm. According to Porter, a firm is defined by a set of processes and functions which he classified into five main activities; the inbound...
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...Our E-Commerce Initiative Eminentleather.com is the online retail store which will be initiated with its existing physical retail store. Eminent Leather proudly presents itself as one of the leading innovative and creative manufacturers of premium quality leather products. Through reflecting the latest trend and fashion, we have built our distinctive image among all the fashion conscious men and women of today. The most competitive price and optimum perfection of our products make us superior to the others operating in this sphere. Apart from our own creativity, we also design as per your specification. Eminent Leather is a leading specialty retailer of quality accessories and outerwear. Currently operating under two formats, we offer fashion and value for both men and women. Categories include handbags, briefcases and travel items. Our e-commerce site offers an extension of our store experience and is intended to increase brand awareness. Unique Features of the Business: Bricks-and-clicks is a business model by which Eminent Leather will integrate both offline (bricks) and online (clicks) presences. In our e-commerce initiative we have some unique features like- ubiquity, global reach, richness, interactivity, information density, personalization, and customization. Those unique features will bring a distinguish business opportunity to attract more consumers and ultimately sell the product to them. The features and how they will increase the business revenue are described...
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...Chapter 2 Case Study 1. Corporate Social Responsibility challenges that companies in the apparel industry face in its supply chains around the world: Corporate social responsibility (CSR) has become a subject of increasing significance. Companies are usually faced with the benefits versus harm created by their operations around the world. In spite of the benefits a company may enjoy in their business venture, there are several social downfalls that they need to take responsibility for. Such downfalls include but are not limited to, lack of equality, employee safety & welfare, both of the home countries and the host countries. The opening profile highlighted the subcontracting of child labor by Primark. The case study highlighted the issue of work treatment & conditions by Nike. In addition, workers were underpaid & punished for refusing overtime. At this level, the ethicality of the companies are being challenged, with varying legal and cultural limits across borders. The main question a company should answer is how should their ethical standard be based? Should it based on the home country or the host country or can it be reconciled? If the company ignores its ethical responsibility to workers, how will that affect production and sales? Association in unethical business operations can be quite disastrous to companies. Another ethically challenging aspect is that companies are also limited by jurisdiction. In the instance of the host country, legislations may...
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...comparative advantages than it is to produce the good internally. In the long-term outsourcing presents cheaper prices on consumer goods, allowing individuals as well as companies to spend money in other ways. Slide Three Many individuals are not aware of the benefits of outsourcing. As seen in this graph from publicagenda.org 69% of Americans believe that outsourcing is bad for the economy where as 17% believes it helps. Slide Four Lets look at the benefits of outsourcing. The first is Cost. In order for companies to remain competitive, they must find the easiest way to reduce costs. Lowering labor costs is just one way of doing this; also boosting efficiency will help cost reduction. “As a result of moving these support jobs oversees, a reduction in cost is seen for the company in the form of lower labor costs. This in turn will lower the cost of the goods and services to you, the consumer, and the company will remain competitive. This need for reduction in prices is consumer-driven.” Slide Five Continuing the discussion of benefits, free trade allows for any country involved to benefit because of comparative advantage. If a certain country can efficiently produce a good over another country than they have the comparative advantage. Each country should in fact work to...
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...(CISE/IIS). Any opinions, findings, and conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of the Sloan Foundation or the National Science Foundation. Abstract This article analyzes the distribution of value from innovation in the global supply chains of the Apple iPad and iPhone. We find that Apple continues to capture the largest share of value from these innovations. While these products, including most of their components, are manufactured in China, the primary benefits go to the U.S. economy as Apple continues to keep most of its product design, software development, product management, marketing and other high-wage functions in the U.S. China’s role is much smaller than most casual observers would think. A key finding for managers is that they need to beware of relying too heavily on single customers. With its control over the supply chain, Apple has the power to make and break the fortunes of many of its suppliers. A key finding for policymakers is that there is little value in electronics assembly. Bringing high-volume electronics assembly back to the U.S. is not the path to “good jobs” or economic growth. Capturing Value in Global Networks: Apple’s iPad and iPhone In an earlier article in Communications of the ACM [7], we conducted a micro-level economic analysis of Apple’s iPod as a way of better understanding who captures the value in global innovation networks in the information and...
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...decade. In the last 10 years, Wal-Mart has achieved strong and constant growth in sales and net income. It has maintained the leading position in the U.S. discount retail industry and has become the largest retailer in the world. With the maturity of the industry, coupled with the intense competition from rivalry companies, maintaining the current level of high performance becomes very challenging. The Porter’s Five Forces analysis reveals that the competition among rivals is the driving force of the industry, in which price is the most critical factor. The value chain analysis and resource based view analysis show that Wal-Mart has been very successful in implementing the strategy as the low-cost leader by inculcating cost efficiency in its corporate culture, management style, and operations. It has been the pioneer in adopting cutting edge technology to streamline its supply chain, and to understand and respond timely to customer demand. Wal-Mart has developed many strengths that help guard its leading position and open door to many opportunities for expanding the business. However, it also faces threats from growing too big and in many areas, which makes it vulnerable to losing control, weakened cooperation among stores and regions, and competition in multiple fronts. Wal-Mart should be caution in its growth strategy, especially in the expansion of its international presence. Although its financial strength, management skills, and operation efficiency...
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...Business as Usual is Not an Option Supply Chains and Sourcing after Rana Plaza Sarah Labowitz and Dorothée Baumann-Pauly April 2014 About the Center for Business and Human Rights at New York University Stern School of Business “At NYU Stern, we develop people and ideas that transform the challenges of the 21st century into opportunities to create value for business and society. Our Center for Business and Human Rights is the embodiment of that mission. By creating a safe haven for open dialogue and convening relevant voices for discussion around practical solutions to some of the world’s most pressing problems, the Center, and by extension this report, demonstrate that profit and principle can co-exist. ” –Peter Henry, Dean NYU Stern School of Business Dean Henry launched the Center for Business and Human Rights in March 2013 with a strong belief in the power of business to create positive change in society. In that spirit, the Center’s mission is to challenge and empower businesses to make practical progress on human rights in their own operations. It is the first center to focus on human rights as an integral part of a business school. We start from the premise that business can and does work for the good of society. We support the goal of business to create value while emphasizing high standards for human rights performance. Each year, we take on a major project around a set of human rights challenges in a sector that is of foremost concern for companies, consumers...
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...* News * Society * Equality and Human Rights Commission (EHRC) Violence and abuse rife in food factories Supermarket suppliers under fire as one-fifth of workers interviewed for inquiry report being pushed or hit * * Share * * * ------------------------------------------------- Karen McVeigh and Felicity Lawrence * ------------------------------------------------- The Guardian, Saturday 13 March 2010 * ------------------------------------------------- Article history Thousands of workers in Britain's lucrative food industry are being subjected to widespread mistreatment and exploitation, including physical and verbal abuse and degrading working conditions, according to an inquiry published today. The Equality and Human Rights Commission (EHRC) said it has uncovered significant evidence of abuse among producers supplying Britain's big supermarkets. The inquiry includes reports from meat factory workers who say they have had frozen burgers thrown at them by line managers, and accounts of pregnant women being forced to stand for long periods or perform heavy lifting under threat of the sack. It also contained reports from women with heavy periods and people with bladder problems on production lines being denied toilet breaks and forced to endure the humiliation of bleeding and urinating on themselves. One-fifth of workers interviewed, from across England and Wales, reported being pushed, kicked or having things thrown at them...
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...decision-making than information. D) Data and information are the same. Answer: B Page Ref: 4 Objective: Learning Objective 1 Difficulty : Easy AACSB: Analytic 2) Information is A) basically the same as data. B) raw facts about transactions. C) potentially useful facts when processed in a timely manner. D) data that has been organized and processed so that it's meaningful. Answer: D Page Ref: 4 Objective: Learning Objective 1 Difficulty : Easy AACSB: Analytic 3) The value of information can best be defined as A) how useful it is to decision makers. B) the benefits produced by possessing and using the information minus the cost of producing it. C) how relevant it is. D) the extent to which it maximizes the value chain. Answer: B Page Ref: 4 Objective: Learning Objective 1 Difficulty : Moderate AACSB: Analytic 4) An accounting information system (AIS) processes ________ to provide users with ________. A) data; information B) data; transactions C) information; data D) data; benefits Answer: A Page Ref: 10 Objective: Learning Objective 1 Difficulty : Easy AACSB: Analytic 5) Information that reduces uncertainty, improves decision makers' ability to make predictions, or confirms or corrects their prior expectations, is said to be A) complete. B) relevant. C) reliable. D) timely. Answer: B Page Ref: 5 Objective: Learning Objective 1 Difficulty : Easy AACSB: Analytic 6) Information that is free from error or bias and...
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...to the store, where they’re prepared in the open kitchen behind the cashiers. You’ll see a few folks eating at the restaurant’s tables or tucking into their food outdoors on patio benches, but most customers come in with a handful of cash—no credit or debit cards, thank you—and head back out with their meals. Four is In-N-Out Burger’s innovation fulcrum—the point at which the number of products strikes the right balance between customer satisfaction and operating complexity. Four means simple purchasing, simple production, and simple service. And, it turns out, in a world where fast-food restaurants are forever adding formats and menu items, simple means harvard business review • november 2005 profitable growth. With its chain of about 200 restaurants...
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...suggested by Giorgio Magialli, the Director of Logistics by resolving the issue of gaining control over the fluctuating demand. Barilla has a very complex distribution network including independent third party distributors and due to such a multi-echlon network, Barilla has been experiencing large amounts of variability in demand which are resulting in operational inefficiency and increased manufacturing, inventory and distribution costs. The proposed JITD system required the distributors to share their sales data with Barilla, who would then forecast and deliver appropriate amounts of products to the distributors at the right time in order to effectively meet demand. This was a radical change from the current and more traditional supply-chain setup where the distributors were not sharing any data and could place orders at will. Vitali's proposal came under severe criticism from not only the distributors but also Barilla's own Sales and Marketing department for an array of reasons. Main reasons for fluctuating demand: Promotions: The use of promotions in the form of price, transportation, and volume discounts was the main strategy to sell more products to the distriutors. Sales Reps: The compensation system in place at Barilla for Sales reps, made them to push more products into the pipeline during promotional periods and not able to sell sufficient quantities during non promotional periods created wide variation in demand patterns. SKU's: The huge range of SkU's in...
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