Deloitte's Diagnosis Of Sks

During the game, I realized that wide gaps in orders of every role in the supply chain such as factory, distributor and retailer create inventory management challenges. For example, distributor records 0units between week1-week 4 compared to retailer within the same period. The retailer records 3units, 5units, 2units and 2units between weeks 1- week 4. The same applies to factory with 0units from weeks 2-4. Addressing inventory management problems requires developing an average unit level to avoid disappointing customers when demand

Company is facing a challenge of potentially higher inventory costs. Rising prices may further result in changes in customer behavior and preferences.

Recommendation:1. Improve Just-in-time systemSpartan Plastic Limited need to improve Just-in-time system, it is control aims to maintain inventory level at zero, with an immediate objective of reducing the capital tied to the inventories. It is an important principle that able to eliminating waste throughout the production system. The waste can occur, through excess inventories and overly large lot sizes, both of which can cause unnecessarily long customer lead times. Let's explain the role of the core JIT practices in enhancing manufacturing performance. JIT manufacturing requires the establishment of JIT supplier relationships with suppliers; Spartan in this case, that is able and willing to deliver the needed quantities of parts as the needs arise and without any defects.

Alignment and integration is a key issue that is causing turmoil at SKS Manufacturing as the firm is not able to have efficient cross-functionality. This is due to (1) a lack of technological integrations as a centralized information sharing system is not being effectively used within divisions, causing inaccurate data to reflect poor forecasting decisions. (1.1)This leads to the biggest driver of poor performance, which is inaccurate forecasting as information, is not being accurately analyzed, causing procurement and production to make poor business decisions. (2)The divisions are also not aligned as the sales division “dumps” orders before the end of the quarter without recognizing if production has capacity to manufacture or even if enough material is on hand to complete the order, causing delivery delays (A3). (2.1)This leads to incomplete orders and loss in revenue, which will affect the bottom line as fixed costs remain the same. This is a critical issue that needs to be addressed by Deloitte & Touche and SKS Manufacturing as all core functions of the business need to be integrated utilizing information control systems that share information. Additionally all of the business functions need to be aligned by understanding each other’s capabilities and needs so they do not create “last minute” problems for

Chabot needs to increase the flexibility in its supply chain. Chabot is an innovative product manufacturer trying to utilize an efficient supply chain. In order to be able to meet demand, the company needs to deploy excess buffer capacity. Lead time is not up to par so Chabot needs to increase its inventory if it plans to meet unpredictable demand. This will also help increase Chabot’s level of

Ingalls Shipbuilding does not have a strong stable future if current projections and no strategies are developed for the near future. According to the US Navy, over the next five years 10 units are in the budget for Ingalls’ market share and Bath Iron Works will certainly fabricate a portion of those products (“Navy Force Structure and Shipbuilding Plan,” 2014). Therefore, a strong strategy is required and implementation of the strategy is the only hope for Ingalls Shipbuilding to remain in business for another 75 years. Below is an implementation plan to be executed within the next year. The execution team is diverse

New Balance decided to improve their operations by implementing a “lean production system” in all of their domestic facilities. The lean production system was taken from Toyota’s manufacturing processes to, “deliver goods on demand, minimize inventory, maximize the use of multi-skilled employees, flatten management structure, and focus resources when and where they are needed” (Veleva, 2010). These improvements helped significantly improve vast processes across New Balance manufacturing, and in one example reduced the time to make a pair of shoes in the Lawrence facility from eight days down to three hours (Veleva, 2010).

Excellent customer service is a way to set the organization apart from its competitors. Differentiation can be achieved through fast and correct execution of product ordering. To improve on the order process it is important to have the correct information provided in a timely fashion to all divisions. For integration to be successful information must be available throughout the entire supply chain.

As director of Supply Chain Systems, Teri Takai recommends implementing virtual integration strategies from companies like Dell to portions of Ford’s supply chain strategy. Although there are several key differences between the companies, the restructuring plans of Ford 2000 have set a viable foundation to implement Dell’s virtual integration strategy in inventory management, customer service and support and suppliers’ management. The redesign of the process must include design not only of the supply chain but also of fulfillment, forecasting, purchasing, and a variety of other functions that historically been considered independently within the Ford hierarchy. Teri

These forecasts were critical to the success of the company's refocused financial strategy. To accomplish this, there was high priority and core interest to align the master production schedule through the improvement of the demand planning process. This included the Redesign Project which among other things focused on the implementation of a decision support system (DSS) to create a more accurate MPS that can be published more frequently.

This is something that must be addressed in supply chain management because if one area of the company is operating below capacity the other sectors will not be able to make up this lack of production. Another main component of supply chain management is how to handle damaged goods. It is a waste of money to send out defective products because it costs the organization large amounts of money to recall the damaged materials back to the factory and replace them, slowing production efficiency. There must be quality controls and regulations that enable Ford to minimize inventory defects and returns. The Ford Motor Company must have damage control operations to continue manufacturing the same amount of automobiles so that they do not lose any necessary inventory. There must also be procedures in place that deal with delivery systems and the delays and unsuitable materials that could easily occur. This paper will fully break down the previous issues associated with the Ford Motor Company 's supply chain management and operations. SUPPLY CHAIN MANAGEMENT OF FORD Synopsis of Supply Chain Management as it Applies to Ford The definition of supply chain management (SCM) involves taking a systems approach to the entire supply chain with the overall goal of reducing the level of risk and uncertainty throughout the supply chain. This will ultimately permit lower

An ideal SCM integrates all aspects of logistics in a rapid manner attempting to achieve the objectives by using who, what, when, where, and why (the 5Ws) for accuracy and success. The focus of this literature will cover the history, functions, modifications and future of SCM, while also considering the literature and preceding research that was conducted in each area. This paper will enhance the readers’ understanding of the SCM in general along with the process and concepts of the subject. It will also enable readers to apply aspects of SCM in their respective line of business. The literature for this review is relative, ranging from one to three years old. Organizations must understand that Supply Chain Management can increase the company’s EBITA (Earnings Before Interest Taxes Amortization) or decrease it if used properly. An additional benefit of an optimal SCM is optimizing time from production to customer, which can increase customer base when the industry notice speed of delivery to customers.

Supply Chain Management : The vertical integration in the supply chain led them to achieve shorter time frame of release and also helped them to

Some of Samsung's business practice approaches examined by Yang el at (2007) are: SMC, Six Sigma, DMAEV (define, measure, analyze, enable, and verify), SCOR (Supply Chain Operation Reference), Black belt, and advanced planning and scheduling (APS). The collaborative relationship concept of SCM need the integration of key business processes through which information sharing and group planning are provided within and across the supply chain network of suppliers, retailers, manufacturers, and consumers (Bowersox el al., 2010).The Global Supply Chain Forum, a supply chain management research group in USA, has identified eight key business processes of SCM (Corotox et al, 2001), Figure 1: customer relationship management, customer service management, demand management, order fulfillment, manufacturing relationship management, product development and commercialization, and returns management(SCM-Institute,

There are different ways through which a performance of a system can be assessed (order fill rate, production condition, accurate documentation among the most important), and the measure used by ALP seems to have some deficiencies in assessing the real impact of the operations undergone by the company and the final customer satisfaction. In fact can be said that such a measure doesn’t take in to consideration returned items, and considered the logistic process concluded in the moment in which the freight leaves the stocking point, in this way lacking an overall view of the process that can be seen as an old view of the logistic system. If customer service is defined as “the entire process of filling customer’s order […] handling the possible return of the goods” the current measurement system adopted by ALP is leaving out all the post-transaction elements which are vital to establish a good relationship with the customer and have to be planned for in advance. This is also one of the reasons why the service level is so strongly affected by stock availability. Focusing on the end-user side could give a more realistic picture of the performance of the company at a logistic level.