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STUDENT ID 3946660
4053053
BRUNO RETHINA SWAMY RENISH FALEYE EMMANUEL 3936797
3384482
HAO NIE OUSMAN TOURAY 3581782
INTRODUCTION THEORIES IMPLEMENTATION CRITICAL CONCEPTS KEY LEARING POINTS CONCLUSION REFERENCES
Harley Davidson is a last surviving bike manufacturer in USA In 1970s Harley increase production with the aim of increasing profits Idea back-fired as they began to face quality problems and had a bigger inventory In 1980s market share rapidly decrease from 33% to 23% $24 million dollars inventory was turned over at 4.5 per year which was 1/3 of their target which was 12 turns per year
Introduced the idea of JUST IN TIME production and a proper supply chain management
Their focused shifted to Anticipating demand to Responding Orders i.e.(PUSH T0 PULL) They introduced Group problem solving exercises Harley came up with the idea of outsourcing jobs KSG manufactures parts to Harley and they call (just in time program as MAN-materials as needed) Approached with idea of quality and delivery are an absolute necessity Suppliers are required to have Statistical operator control & Employee involvement programs ULTRA TOOL is a major supply company that succeeded with the MAN idea
Suppliers are required to have Statistical operator control & Employee involvement programs
ULTRA TOOL is a major supply company that succeeded with the MAN idea
The company had a good relationship with Harley and they kept their prices the same for 4 years Harley got involved in branding goods like licensing its name to Logo as side business Other links they used in managing their supply chain are : Optimizing supplier base Understanding their capabilities Exchanging information Process improvement Sole sourcing Bench marking suppliers World class customer
The result is continuous improvement in quality and total cost of purchased parts
Push /pull : pull system supply as ordered Reduce Inventory : Inventory is reduced Stock is ordered as needed Ordering parts from the external suppliers Eg. ULTRA TOOL
Where a member of staff showed how passionate he was about his job. He said he manufactures the bikes the way he would want to have his own bike. He was a bike lover indeed
Quality is not negotiable Delivery is not negotiable
$
CASH OUT
Material processing
Raw Material Inventory
$
CASH IN
CUSTOMER
Supplier
3. INVENTORY MANAGEMENT
Subassembly
Assembly
In process inventory
In process inventory
MATERIALS
SCHEDULES INFORMATION
5.INFORMATION
INVOICES
Before
10% material 30% 60% labour&overheads profit 10%
Now
10%
80%
Major Focus
R.O.C.E = PROFIT CAPITAL EMPLOYED
Above all have a reputation, continuous improvement as a competitive edge over others.
In conclusion we would someday manage and even own an organisation and with the knowledge
gained from the case study, being applied in an organization would yield better results.
Harrison, A.(1992) just in time manufacturing in prospective, edn. Hemel Hempstead : prentice Hall International (UK) Ltd. Todd, J. (1994) World class manufacturing, edn. Maiden head : McGraw Hill. Phil. S (2011), Supply chain management : course notes. Coventry : Coventry University Nigel Slack, stuart chambers, Robert Johnston. (2010) operations management (6 th ed). Michael L. George, (2002) Lean Six Sigma, Mc Graw Hill Ghadge, A., Dani, S.and Kalawsky, R. (2010) A framework for managing risks in the serospace supply chain using systems thinking. 5 th International conference on system of systems engineering, 22-24june 2010. DOI: (Accessed : 21 june 2011) Lean manufacturing by Richard L. Nolan, Karen A Brown, Subodha Kumar. Source: Harvard Business School 23 pages. Publication date: May 03, 2006. Prod. #: 906417-PDF-ENG eHow (n.d.) Advantages & Disadvantages of lean production [online] available from <www.ehow.com/about 5418429 advantages-disadvantages-leanproduction.html >[30 Oct 2011}] 10.1109/SYSOSE.2010.5544082