BUDGE BUDGE INSTITUTE OF TECHNOLOGY

DEPARTMENT OF MECHANICAL ENGINEERING

-: PRESENTATION ON :- SUPPLY CHAIN MANAGEMENT IN AUTOMOBILE INDUSTRY

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SUBMITTED BY:Aditya Bhattacharjee- Roll No: 27600712006Akash Dutta- Roll No: 27600712008Debasish Basak- Roll No: 27600712025Monojit Chandra- Roll No: 27600712050Nitesh Khaitan- Roll No: 27600712055Prakash Sharma- Roll No: 27600712059Mustaba Nayej- Roll No: 27600712062

INDEX

INTRODUCTION SUPPLY CHAIN MANAGEMENT LEAN SUPPLY CHAIN MANAGEMENT AGILE SUPPLY CHAIN MANAGEMENT LEAGILE SUPPLY CHAIN MANAGEMENT CONCLUSION

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INTRODUCTION:Supply Chain Management encompasses every effort

involved in producing and delivering a final product or service, from the supplier’s supplier to the customer’s customer. Supply Chain Management includes managing supply and demand, sourcing raw materials and parts, manufacturing and assembly, warehousing and inventory tracking, order entry and order management, distribution across all channels, and delivery to the customer.

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4 Supplier

Supplier

Supplier

Storage

}Mfg. Dist. Retailer CustomerStorage

Supplier

Supplier

Storage} Service Customer

CHAIN MANAGEMENT:5

NECESSITY OF THE SUPPLY CHAIN MANAGEMENT: Strategic Advantage : It Can Drive Strategy Manufacturing is becoming more efficient. SCM offers opportunity for differentiation or cost reduction.  Globalization : It covers the world Requires greater coordination of production and distribution. Increased risk of supply chain interruption. Increases need for robust and flexible supply chains. At the company level, supply chain management impacts.  Cost : For many products, 20% to 40% of total product costs are controllable logistics costs.  Service : For many products, performance factors such as inventory availability and

speed of delivery are critical to customer satisfaction.

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OBJECTIVES OF SUPPLY CHAIN MANAGEMENT: Purchasing : Stable volume Requirements. Flexible delivery time. Little variation in mix. Large quantities.  Manufacturing : Long run production. High quality. High Productivity. Low production cost 

Warehousing : Low inventory. Reduced transportation costs. Quick Replenishment

capability.  Customers : Short order lead time. High in stock. Enormous variety of products. Low prices.

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CYCLE VIEW OF SUPPLY CHAIN:8

9CYCLE VIEW OF SUPPLY CHAIN:

CYCLE VIEW OF SUPPLY CHAIN:10 Customer order cycle:

Customer arrival Customer order entry Customer order fulfillment Customer order receiving Replenishment cycle: Retail order trigger Retail order entry Retail order fulfillment Retail order receiving Manufacturing cycle: Order arrival from the distributor, retailer, or customer Production scheduling Manufacturing and shipping Receiving at the distributor, retailer, or customer

Procurement,Manufacturing andReplenishment cycles

Customer OrderCycle

CustomerOrder Arrives

PUSH PROCESSES PULL PROCESSES

PUSH & PULL VIEW OF SUPPLY CHAIN:

Pull processes: execution is initiated in response to a customer order

  Push processes: execution is initiated in

anticipation of customer orders

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SUPPLY CHAIN DESIGN: Three Components:  Insourcing/OutSourcing: The Make/Buy or Vertical Integration Decision  Partner Selection: Choice of suppliers and partners for the chain  The Contractual Relationship: Arm's length, joint venture, long-term contract, strategic

alliance, equity participation, etc. .

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LEAN SUPPLY CHAIN MANAGEMENT:Lean Supply Chain Management Principles Derive from Basic Lean Principles Focus on the supplier network value stream Eliminate waste Synchronize flow Minimize both transaction and production costs Establish collaborative relationships while balancing cooperation and

competition Ensure visibility and transparency Develop quick response capability Manage uncertainty and risk Align core competencies and complementary capabilities Foster innovation and knowledge-sharing

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AGILE SUPPLY CHAIN MANAGEMENT :The importance of time as a competitive weapon has been recognized for some

time (1).The ability to be able to meet the demands of customers for ever-shorter delivery times and to ensure that supply can be synchronized to meet the peaks and troughs of demand is clearly of critical importance in this era of time-based competition (2).To become more responsive to the needs of the market requires more than speed, it also requires a high level of manoeuvrability that today has come to be termed agility.

WHAT IS AGILITY: 16 Agility is a business-wide capability that embraces organizational structures,

information systems, logistics processes and, in particular, mind-sets. A key characteristic of an agile organization is flexibility. Indeed the origins of agility as a business concept lies in flexible manufacturing systems (FMS). Initially it was thought that the route to manufacturing flexibility was through automation to enable rapid change (i.e. reduced set-up times) and thus a greater responsiveness to changes in product mix or volume.

Later this idea of manufacturing

flexibility was extended into the

wider business context and the

of agility as an organizational

orientation was born.

THE CONCEPT OF AGILITY:17

LEAGILE SUPPLY CHAIN MANAGEMENT Leagile is the combination of the lean and agile within a total

supply chain strategy by positioning the decoupling point. Combined to take the advantage of both in single unit Because there is always need to response to volatile demand in

downstream and provide level schedule in upstream from marketplace

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CONCLUSIONSupply chain management is an exciting and important area of study. Specialist companies like Exel are able to save the world’s leading businesses large amounts of money, time and effort by creating an effective supply chain. Next time you see a new VW Beetle you will be better able to appreciate that the high quality of the product and its value for money are not only a result of high quality design and engineering, but also a direct result of lean production, just-in-time methods and premium supply chain management.

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THANK YOU

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