Question

Case Study		815
Susan:	What are you talking about?
Kevin:	I spent a good part of the day over at Foster and learned some interesting things. For example, do either of you remember what we told Foster the monthly volume requirements for the product would be?
Bill:	I remember exactly. The volumes were projected to be 2,500 units a month. So what's the problem?
Kevin:	We need to talk with our production group more often. The monthly volumes are now over 4,000 units a month! And not only that, our production group now wants material within 10 days of a material release rather than two weeks. We have also been changing the final material release quantities right up to the last minute before delivery.
Bill:	Uh oh. I remember on our site visit that the most-their production system could handle was 3,500 units a month. And a two-week lead time was about as low as they could go.
Susan:	But why didn't they inform us that these changes were causing problems? They still have some explaining to do.
Kevin:	Apparently they tried. What did your team tell this supplier about communicating with us after you finished negotiating the contract?
Bill:	We said that any operational problems or issues have to go through our materials management people. The team was responsible for evaluating and selecting the supplier, and then negotiating the agreement.
Kevin:	Foster's production manager produced a log detailing seven memos and letters outlining the impact of our production and scheduling changes on their operation. He also called us several times with no response. Each of these inquiries received little attention on the part of our materials group. I'm not sure how fond Foster is of us as a customer. I think they are anxious for this contract to wind down so they can dump us!
Susan:	What do we do now?

ASSIGNMENT

I . What parts of the supply chain are most closely involved with the situation in this case? What is the responsibility of each part in order to maintain a smooth flow of material?

2. What initially appears to be the problem? I'Vhat really is the problem(s) in this case?

3. 	$9k=$

   
   How easy is it to switch suppliers? What could complicate a firm's ability to switch to a new supplier?
4. What does it mean to get to the root cause of a problem?
5. $2Q==$ What does it mean to be a good customer? Why does a buying firm want to be perceived by a supplier as a good customer? Provide specific examples of what a firm must do to be a good supply chain customer.

Explain the role of performance measurement in managing supply chain activities

Answer 1

Answer1:

There area unit 3 elements of the provision chain most closely concerned, together with procurance, production and materials management. procurance could be a useful cluster furthermore as a useful activity. It performs several activities to make sure it delivers the most prices to the organization. The assembly cluster is accountable for the product on time with the actual amount. And also the materials management during this case is accountable for evaluating and choosing the provider, then negotiating the agreement.

Answer2:

At first, Kevin and Susan, the procurance managers take into account that it's the supplier’s fault. Bill thinks that Foster Technologies lacks some depth at key producing engineering positions in order that the delays and quality issues become. Actually, it's the Avion opposition’s fault. The assembly cluster desires material among 10 days rather than a time period that is determined within the contract. And that they additionally amendment the ultimate material unharnessed quantities right up to the instant before delivery. Moreover, once the provider replicates the matter, nobody pays attention thereto.

Answer3:

It is rough to change suppliers. It takes months to perform another provider search with team visits and new tooling may very price.

Answer4:

It is of nice significance to work out why a drag comes up so as to unravel the matter. during this case, if Kevin didn’t speak with Foster’s production manager, Avion procurance managers would assume that it's the supplier's fault that cause the deteriorating performance in material quality and on-time delivery. Thus perhaps they're going to amendment the suppliers; cost accounting some months and plenty of human power. However, it's unable to unravel the matter. As a result of the foundation explanation for the matter is that the unhealthy communication between the production cluster and also the procurance managers.

Answer5:

To be a decent client suggests that patient, polite and honest to the sellers. Folks perpetually speak “Customer is God”. However, it's necessary and favorable to be a decent client by respecting the foundations, giving the corporate a chance to unravel the matter and seeking 1st to grasp then to be understood.

If the shopping for the firm was perceived by a provider as a decent client, it might profit each. Smart communication contributes to avoiding misunderstanding and delays in provide chain.

The good client ought to offer the corporate a chance to unravel the matter. During this case, the Avion opposition. Procurance manager ought to communicate the provider 1st, work out the explanation for the matter, and speak with the provider to unravel it. If this didn’t work, Avion Inc. will switch the provider. It’s lacking in thought by changing the provider as shortly as they notice the matter. Actually, all the companies ought to be a decent provide chain client. It does not solely advantage shopping for companies however additionally the suppliers. As an example, the producing plant ought to communicate with the suppliers often to allow them to apprehend the amendment of would like or one thing else to be paid attention that is totally different from the contract. During this manner, the producing plant is in a position to induce the materials on time with acceptable quality. And another specific example is that the industry, like grocery. It’s necessary to let the suppliers apprehend what and the way several products they have every day.

Answer6:

The role of performance measuring in managing to provide chain actives is measuring system style, implementation, managing through measuring and refreshing the measuring system.