...The supply chain department (known as the production department of GXI) has played an integral role in achieving the goal of continuously providing the lowest cost and sufficient supply of quality medicines through the years of GX’s existence. Through the constant effort of the supply chain officer to reduce the costs of materials, GX was able to maintain the selling price of its products for 12 years, until a significant change in the members of the top management and their ideals took over. The supply chain department and the company itself is at the verge of being out-dated by other companies through technological advancements, and its failure to adhere and adopt to the global standards and methods of supply chain management is placing the fate of the company in a very alarming situation. PROJECT NAME: The Implementation and Practice of Global Supply Chain Standards and Methodologies for a Filipino Pharmaceutical Company. DESCRIPTION OF THE PROJECT: The lack of knowledge on the global standards and methodologies in supply chain management, procrastination, and the lack of interest of the management to develop and adopt a more suitable and stable supply chain practice and strategy are the key factors that hinder the growth of the company. The efforts to expand will all go to waste and will only add unnecessary expenditures. Though the past 20 years for GXI has been a “lucky and fruitful” journey, a drastic change must now take place by strengthening the supply chain...
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...advance the company’s procedures. The OM methods to be examined are as follows: Data-driven policymaking, linear programming, plus sustainable supply chain management. This report discovers data-driven conclusion creation contains the assembly, uniting plus chomping of statistics acknowledged thru numerous contacts entirely through the business. The procedure shall contribute to the enhancement of the company’s decision creation procedure entirely together. Acme collects figures from their patrons, dealers, associates, plus opponents. Merchants like Acme practice the gathering of statistics starting with the aforesaid sources to create alterations to its daily operations managing procedures. This report additionally discovers organizations remain dedicated to the sustainable supply chain administration pursue to bring into line its routine procedures plus management enterprises policies through its key principles. However, supply chain includes continuous altering marketplaces plus relations. There remain numerous causes why organizations initiated by the pathway of supply chain sustainability. The key causes remain to guarantee that obedience to rules plus guidelines in encouragement of global values for continuing everyday processes. I commend the combination plus practice of data-driven evaluation furthermore maintainable supply chain administration in the company’s everyday processes. Acme will display a advanced presentation through constructing usage of thorough examination...
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...Mattel Toy Recall Case 1) What were the primary causes of Mattel’s recall problems? Where these related to outsourcing? Mattel had two direct concerns that led to the August 2007 recalls of millions of toys worldwide. The first was the use of paint with excessive lead content on a variety of toys manufactured by Chinese firms contracted to Mattel. The second concern, which led to a vast majority of the recalls during this period, was due to a design defect that could result in magnets becoming dislodged and ingested by children. A highly placed Mattel official “confirmed that the vast majority of the recalled toys, 17.4 million, had been due to [defective design], while … 2.2 million were related to [lead paint].” Although the public outcry that resulted from these recalls centered on poor quality control in Chinese manufacturing operations, the statistics seem to indicate that the outsourcing to China may have not been the biggest problem in this particular set of recalls. That said, some of the recalls relating to the magnet design issue may have resulted from “excessive” caution, according to statements made by Mattel, therefore the true percentage of the recalls caused by lead content rather than significantly dangerous product design is difficult to determine. The proximate cause of the manufacturing recalls, however, was lax oversight of published policy and poor adherence to established guidelines. Chinese manufacturers have historically been extremely low...
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...SECTION A 1. INTRODUCTION (Policy:\Jan900-Guidelines for AO and Authorities, p1) Supply chain management is a set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses, and stores, so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time, in order to minimize system wide costs while satisfying service level requirements. While the Constitution of South Africa states that procurement practices must be fair, equitable, transparent, competitive and cost-effective, the present position is far from the ideal, for example: • Procurement and provisioning procedures are rule driven, and value for money is almost always equated to the lowest price tendered – the emphasis is on monitoring inputs; • Procurement and provisioning activities are not linked to budgetary planning; • Asset management is limited to control of inventory, rather than on ensuring a satisfactory return to the community for the funds invested; • Bid documentation are not uniform, causing uncertainty to bidders and practitioners; • The Preferential Procurement Policy Framework Act, No 5 of 2000 (PPPFA) and its associated Regulations are complex and difficult to implement correctly, and procurement practitioners are not adequately trained in their application; • The costs and outcomes of the PPPFA are not fully quantified, hence it is impossible to evaluate the merits of the system. (Government of the Republic...
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...MATTEL: A Case Study | October 22 2012 | Case study discussion taken from Stanford’s Graduate School of Business “Unsafe for Children: Mattel’s Toy Recalls and Supply Chain Management” | Rob Breakiron Wenyao Ma Alek Shnayder Jiajie Wang | Contents Introduction 2 Why do companies outsource? 2 What were the primary causes of Mattel’s recall problems? Where these the result of outsourcing? 4 What actions were taken by the principals in the case to address the recall problems? Were these the right actions? Why, or why not? 5 What should Mattel do now? What should governments do? 7 How can accountability be better managed in long, global supply chains? 12 Introduction Mattel, Inc. (NASDAQ: MAT), the world’s largest toy company with over $12.5 billion in revenue, has grown from the little toy company it once was and has certainly come a long way since it was founded in 1945. The exponential world-wide growth has not always come without a hitch. In the late 2000’s Mattel was at a crossroads due to a significant toy recall problem, reaching far beyond the bottom line. During this case write up we discuss what went wrong, whose fault it was, and what can and should be done to not only fix the problem, but eliminate the chance of similar problems for Mattel and other firms in the future. Our case study will tackle the following five questions through in depth discussion: 1) Why do companies outsource? 2) What were the primary causes of Mattel’s...
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...Value Chain Analysis The value chain analysis identifies all of the activities and strategies the organization must perform to conduct a successful business. (Potter) .The activities are classified into primary and support activities. Each of the activities performed will add value to the product and services provided by an organization. LEGO had incorporated various strategies to gain a competitive advantage. LEGO’s inbound logistics was not in proper shape. There was no control over the inbound logistics and management of inventory. The supply and demand of the goods was not in parity. In most situations, the forecasting was done dynamically without any evaluation of estimates. Later, LEGO management team synchronized the sales supply and demand by starting a sales and operations planning process (S&OP). This technique helped LEGO to optimize their demand planning, forecasting and inventory management. LEGO can accurately estimate their demand, supply and estimate customer demand for particular product during a given period. Using demand planning to develop accurate forecasts is critical for effective inventory management. Forecasts are compared to inventory levels to ensure that distribution centers have enough, but not too much, inventory to supply stores with a sufficient amount of product to meet demand. The optimal amount of raw materials was released to cater to the demand. This played a pivotal role in building an efficient supply chain management. VALUE CHAIN ANALYSIS...
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...discrepancies, eliminating unnecessary premium costs and reducing shipment overages. Plus, Penske implemented accountability procedures and advanced logistics management technologies to gain more visibility of its overall supply network. Six Sigma initiatives streamline operations Penske Logistics began its relationship with Ford as lead logistics provider (LLP) for Ford’s assembly plant in Norfolk, Va. At the time, each of Ford’s 20 North American assembly plants managed its own logistics operations. A decentralized approach provided total control of logistics at the plant level, but presented costly redundancies in materials handling and transportation. Ford conducted studies to determine the benefits of transitioning the company’s decentralized logistic operations to a centralized approach. The decision was quickly apparent – centralization of the company’s logistics operations would increase both velocity and visibility throughout the network, as well as reduce supply chain costs. Shortly thereafter, Ford selected Penske as its North American LLP. Under the contract, Penske would centralize and manage all inbound materials handling for 19 assembly plants and seven stamping plants. Challenges • To develop, implement and operate a centralized logistics network for Ford • To streamline supplier and carrier operations for improved performance and accountability • To provide Ford...
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...discrepancies, eliminating unnecessary premium costs and reducing shipment overages. Plus, Penske implemented accountability procedures and advanced logistics management technologies to gain more visibility of its overall supply network. Six Sigma initiatives streamline operations Penske Logistics began its relationship with Ford as lead logistics provider (LLP) for Ford’s assembly plant in Norfolk, Va. At the time, each of Ford’s 20 North American assembly plants managed its own logistics operations. A decentralized approach provided total control of logistics at the plant level, but presented costly redundancies in materials handling and transportation. Ford conducted studies to determine the benefits of transitioning the company’s decentralized logistic operations to a centralized approach. The decision was quickly apparent – centralization of the company’s logistics operations would increase both velocity and visibility throughout the network, as well as reduce supply chain costs. Shortly thereafter, Ford selected Penske as its North American LLP. Under the contract, Penske would centralize and manage all inbound materials handling for 19 assembly plants and seven stamping plants. Challenges • To develop, implement and operate a centralized logistics network for Ford • To streamline supplier and carrier operations for improved performance and accountability • To provide Ford...
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...ALIGNING INCENTIVES IN SUPPLY CHAINS AGENDA OVERVIEW OF ARTICLE MODEL OF ANALASYS (CLASS DISCUSSION) CONCLUSION QUESTION / ANSWER PERIOD CISCO (Mad Monday April 16, 2001) The world’s largest network equipment maker shocked investors when it warned them they would soon be scrapping $2.5 billion of raw surplus (almost 50% of quarterly sales) - which is one of the largest inventory write-offs in US history. How could Cisco misread demand by $2.5 billion, almost half as much as its sales in the quarter? Many experts believed it was due to forecasting errors, or forecasting software problems, or even mismanagement from top executives But were they right in their assumptions? CISCO (What really happened) The truth is Cisco ended up with much more inventory (subassembly boards and semiconductors) then demand required due to supply chain partner’s behaviour in the 18 months leading up to Mad Monday Cisco did not have a manufacturing plant and subcontracted out to multiple third parties who mass produced the components because demand for Cisco products usually exceeded supply Cisco compounded the problem by offering incentives to suppliers who delivered quickly, which gave the suppliers incentives to build buffer stocks. The suppliers also boosted profits by buying in bulk from component suppliers. This turned out to be a win/win situation for the subcontractors and the component suppliers alike. Demand began to...
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...Value Chain and Six Sigma Requirement Lanita Douglas Bus Strategy and Innovation for Competitive Advantage 13 May 2015 Supply chain management is defined as “the design and management of a supply chain network that delivers high-quality products to the right customers at the right time at minimum cost”. On the other hand, six sigma tools are powerful processes used by managers to identify and thus aid in solving the problems evidenced in the supply chain. Six sigma helps in continuous improvement to ensure variation and quality control while improving production and eliminating waste. This way, the six sigma helps in improving the efficiency of the supply chain. Using the six sigma, the supply chain managers have in mind what customers want. They ensure that the define value, deliver it, and maintain accountability for everything they do towards realizing the goals of the customers (Bentley & Davis, 2009). Six sigma ensure value for customers. Value for customers means what customers are willing to pay the company to deliver. Value is effectively measured through increasing quality while minimizing waste. Six sigma helps in “measuring the processes involved in increasing quality while decreasing waste, and establishing variation-reducing controls to ensure a consistent output” (Martin, 2014, p. 37). Using six sigma in the supply chain, supply chain managers ensure that they adhere to the established processes, comply to the requirements, which are based on customer’s...
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...BTEC Level 7 Extended Diploma in Strategic Management and Leadership Unit 14 : Strategic Supply Chain Management and Logistics Unit Code : D/602/2357 Assignment No : 1 Assignment Title : Strategic Supply Chain Management and Logistics in an organization of your choice Date Set : 18/06/2014 Due Date : 22/08/2014 Learning Outcome Covered: 1. Understand the relationship between supply chain management (SCM) and organizational business objectives 2. Be able to use information technology to optimize supplier relationships in an organization 3. Understand the role of information technology in supply chain Management 4. Understand the role of logistics and procurement in supply chain Management 5. Be able to plan a strategy to improve an organization’s supply chain Grading Opportunities Available: Outcomes/Grade Descriptors | P 1.1 | P 1.2 | P 1.3 | P 2.1 | P 2.2 | P 2.3 | P 3.1 | | | | | | | | | Outcomes/Grade Descriptors | P 3.2 | P 3.3 | P 4.1 | P 4.2 | P 4.3 | P 5.1 | P 5.2 | | | | | | | | | Outcomes/Grade Descriptors | P 5.3 | | | COMMENTS: P (PASS) – Learner should able to demonstrate the ability to explain each outcome as per to the Assessment information page of this assignment. Assessor: Afzal Sayed Munna Signature: Date: IV COMMENTS: IV: Signature Date: Case Study General Motors, the world’s largest vehicle manufacturer, drives its business results by rolling out innovative vehicles...
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...the Global Business Environment This paper summarizes Apple’s Supplier Code of Conduct and responsibility information. This paper describes Apple position on empowering workers, labor and human rights, health and safety, the environment and accountability related to Supplier Code of Conduct. Apple believes in making complex things simple and designs new products that enrich people’s lives. The company is one of the biggest supply chains in the world. Apple products such as iPhones, iPads, and Mac Books contribute to more than a million people lives in the world and employ the company and their hundreds of manufacturing partners. Apple’s Supplier Code of Conduct is one of the toughest in the electronics industry and the company’s made it even stronger through 633 audits at multiple levels of supply chains and trained more than 1.5 million suppliers on their rights (Apple Inc, 2015). Apple believes that each supplier or worker has the right to safe and ethical working conditions, so the company is audit deep into their supply chain and maintain their suppliers’ accountability to the strictest industry standards. Apple is committed to providing educational opportunities for workers by providing them educational resources in their supply chain. The company provides training to workers on their rights under the law to free college classes in technology, language and other subjects. The company also provides opportunities for workers to earn an associate’s or bachelor’s degree through...
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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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...Course Description Supply chain management is the design and management of a supply chain network that delivers high-quality products to the right customers at the right time at minimum cost. Six Sigma processes are powerful tools that managers can use to identify and solve supply chain problems. In this free online Six Sigma course you will be introduced to the basics of supply chain management and how supply chains are integrated and coordinated networks that deliver business processes to procure raw materials, transform them into final products or services and deliver the product/service to the customer. You will also learn how Six Sigma processes can be used to improve each step of the supply chain and identify and eliminate problems. This free online course will be of great interest to professionals in the areas of supply chain management, logistics, manufacturing and Six Sigma and quality management, and all learners who would like to learn more about the application of Six Sigma processes in supply chain management. Country Manager at AsiaInspection below are the key hardles what I faced to implement Lean Six Sigma in RMG Factories. - Top Management is not willing to break the traditional manufacturing process. - Not willing to encourage a New Method even Mid level & Bottom Line Management are keen to step in such an to unique process. - Not willing to sphre time to know more aabout a New Conecpt. - Think Peoples are there to take care and let them be responsible...
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...QDC1 STUDY QUESTIONS Quality Management: Ch. 9, 10, Operations Management; Ch. 2, 3, 5, 7, Quality and Performance Excellence Click for Skillsoft Module: The Who, What and Why of ISO 9000:2000 Click for Skillsoft Module: Six Sigma: Reducing Variation to Improve Quality 1. List the types of graphical charts used in operations management. 2. Which two charts are important in statistical process control (SPC)? 3. Describe the uses of functional flowcharts. 4. Describe the uses of histograms. 5. Describe the uses of run charts. 6. Describe the uses of control charts. How can this be used to determine if a process is acceptable or unacceptable? 7. Discuss some obstacles management faces when implementing quality and incorporating improvements into daily operations. 8. Discuss two methodologies of process improvement. Deming Cycle and Six Sigma. 9. What are some of the costs associated with quality? 10. What is the point at which costs associated with improvement are no longer warranted? 11. What is the costs of customer dissatisfaction? 12. List some of the losses resulting from process variation. 13. Describe the role of the International Organization for Standards (ISO). 14. Describe the practices employed by the International Organization for Standards (ISO). 15. List the steps to receive quality certification through the International Organization for Standards (ISO). 16. List the key elements of total quality management (TQM). 17. What are some of the...
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