Professional Documents
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Group # 5 Janmey Patel ( 202 ) Nikhil Arora ( 206 ) Shashank Mohore ( 228 ) Aniket Gupta ( 229 ) Parandeep Chawla ( 231 )
Flow Of presentation
Automotive Industry today Toyota Motors 1.
2.
3.
Honda Motors 1. 2. 3.
Toyota , Honda , Nissan have shown a positive trend. While domestic manufacturers still dominate their foreign competitors,
doing business.
Company's Profile
Toyota is Japan's biggest car company and the second largest in
for raw materials into payment for the finished product (1).
supplier performance, and collection of accounts receivable. In accounting, C2C is a good measurement of liquidity of the firm.
Extend average accounts payable Reduce inventory by reducing the production 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.
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 .
This concept is one that Toyota uses internally and it also requires of
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
the C2C cycle, it not only requires efficient manufacturing, but also effective forecasting.
network of interconnected business involved in the provision of product and service packages required by the end customers in a supply chain.
Supply chain management spans all movement and storage
of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption
Inbound Logistics
Production
Outbound Logistics
Inbound Logistics
Network Design to analyze lacations of Suppliers Determine which cross dock is located neares to suppliers Transport parts to cros docs and stage them for coach assemply Transport to plants and containers travel in reverse route
Outbound Logistics
Vehicles at Marshalling Yard Accessories installation Final Quality Assurance Transport TO Dealers
Honda
Companys Profile
Honda is the number 2 car maker in Japan and the 5th largest
in the world.
Renowned for innovative ideas and engineering excellence,
form partnerships.
Hondas Operational practices show a great example of the
Operational Strategies
Careful site selection In- depth supplier relationship
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
Parts Supplier
Honda Trading Parts Supplier Parts Supplier
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
Structural Characteristics
Also known as exceptional drivers that reduce operating
Market Characteristics
IT advancements 3rdwave distribution software by Blinco Systems
Assures parts quality, controls availability, guarantees delivery, provides consistent materials pricing
Competitive Characteristics
Strategic and operational variables that must be
Will chose highest supplier in overall service (not just lowest price)
Target pricing Price table for parts If price cannot be met, Honda will work with supplier to get costs down
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.)
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 Suppliers must use just-in-time production system
Q.C.D.D.M contd
Development Uniqueness in design and specifications Helps create identity for Honda