Академический Документы
Профессиональный Документы
Культура Документы
Angeerjeet Goswami - 09 Ankit Maheshwari - 10 Rajat Anand - 52 Raveesh Verma - 54 Richa Bidasaria - 56 Rishi Rathi - 57
one of the largest industries in the United States New and used automotive sales and repairs generates over $200 billion dollars of the GDP each year. New car and light weight truck sales generated $699 billion dollars in revenue in 2003.
have dominated the market in the United States. The top three domestic manufacturers include:
top domestic manufacturers have concentrated on the market for sport utility vehicles and light trucks. This narrow concentration has allowed foreign manufacturers, primarily Japanese manufacturers, to steal some of the market share for cars.
competitors, the Japanese market share of cars is growing. Consumers are choosing Japanese cars over domestic because of their competitive price, and high quality reputations. These advantages are results of a very organized and innovative way of doing business.
Honda
Hondas Operational practices show a
Operational Strategies
Careful site selection of their US manufacturing
plants Greenfield Manufacturing Plants In- depth supplier relationship Close and interactive, similar to a partnership Autonomic organizational structure Japanese/North American manager mix New entrants focus on more established products and processes
Honda Purchasing
Suppliers are involved with development
and design of new products Relationship is much like a partnership Requires an in-depth supplier selection process
working with their parts suppliers to order raw materials in large quantities.
Structural Characteristics
Also known as executional drivers that
Economy of Scale All purchasing done by Honda Trading America Corp. Technology Multipurpose machinery Capacity Utilization Honda operates facilities in every major market they enter
Market Characteristics
IT advancements
parts quality, controls availability, guarantees delivery, provides consistent materials pricing
External factors
Competitive Characteristics
Strategic and operational variables that
chain (marketing, sales, service) Supply chain (sourcing, manufacturing, logistics) Product development (R&D, design, engineering, development, and launch)
12 steps:
Initial
contact, preparation/investigation of Honda parts, quotations, initial plant visit, prototype development, testing and evaluation, mass production quotation, preparation for mass production, trial run, Quality Assurance Visit, agreement, purchase order
Will chose highest supplier in overall service (not just lowest price) Price table for parts If price cannot be met, Honda will work with supplier to get costs down
Target pricing
Q.C.D.D.M
Customer Satisfaction is top priority
Accomplished through suppliers competitiveness in quality, cost, delivery, development, and management (Q.C.D.D.M.) Most important factor Must be built into production process
Quality
Q.C.D.D.M contd
Cost
Suppliers are given target costs Cost reductions through own ideas, technology, improved productivity, along with joint efforts with Honda in value engineering, and value analysis
Delivery
Q.C.D.D.M contd
Development
Uniqueness in design and specifications Helps create identity for Honda Positive attitude Measured by Q.C.D.D Grade cards for suppliers
Management
Feedback
Provides more predictable demand schedule Allows for a stronger relationship with Suppliers
environment
Facilities Nissan- Supplier Parks Suppliers willing to do so because of Foreign Automakers Financial Health.
Postponement
The Suppliers have practiced
Foreign Sourcing
China: Wage Rate = 20-30 cents / hour
Assembly facility
Asian Suppliers
Warehouse
Mexican Suppliers
Forecasting Is Key
Demand for Suppliers is Derived
Better information
extremely important
for raw materials into payment for the finished product (1).
Many factors influence this, including inventory management, supplier
performance, and collection of accounts receivable. In accounting, C2C is a good measurement of liquidity of the firm.
For supply chain professionals, it measures the efficiency of the entire
cycle
Decrease average accounts receivable
Internal Structure
One organization that has successfully implemented a C2C system
is Japanese automaker Toyota. Its operational success is often attributed to the focus on reduction in inventory.
The term Toyota uses for their system is heijunka. Translated from
Japanese, it means make flat and level. In particular, it refers to eliminating spikes in demand, but also creating operational efficiency and reducing overall supply chain costs.
Toyotas lean operation focuses on the idea of buy one, sell one.
Toyota is able to manufacture vehicles in about the same order customers buy them . This adaptability to demand has given Toyota the advantage of carrying the least inventory in the field of Japanese auto manufacturers .
Japanese-owned automakers perform at higher levels than those working with U.S. automakers.
Toyota works with U.S. suppliers to teach them the lean manufacturing techniques used in Toyotas manufacturing facilities (4). These techniques ensure a short amount of time between when Toyota needs an item and when the supplier makes it.
Rather than running large batches and keeping excess inventory, plants quickly run a small batch and keep inventory low.
For Toyota, this translates to being able to better meet customers
demands because manufacturing facilities do not have to wait on a particular part before beginning production on a vehicle .
Benefits of Heijunka
Toyotas improvement in its supply chain benefits the
to reduce the C2C cycle, it not only requires efficient manufacturing, but also effective forecasting.
RV Toyota intro 29
Rajat - 30- 37 Angir 38 - 44
Rishi 45-50
Questions?