Assignment: Supply Chain Management Systems

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ASSIGNMENTS: MANUFACTURING SYSTEMS (ME6001) Q1: SUPPLY CHAIN MANAGEMENT (SCM): “All we are doing is looking at the time line from the moment the customer gives us an order to the point when we collect the cash. And we reduce that time line by removing non-value-added wastes” - Taiichi Ohno (Father of Toyota Production System) The supply chain management technique is basically built upon the framework of creating a single plan for product and information flow through a business and thereby creating a link between customers, suppliers and the company itself. The effective handling of supply chain leads to reduction in the buffer caused by inventory in the company i.e. to maintain the demand and current stock levels. Coming…show more content…
Once again we can take the automobile industry for an illustration. A market leader can be classified either by cost or by quality. A low cost product will obviously have a larger share in terms of quantity, where as a high quality product have a lesser market share in terms of quantity but not necessarily in terms of profit. For instance Rolls-Royce is an automobile major which has a very low market share in terms of quantity but it is one of the most prestigious companies the history of automobile industry has ever seen and at the same time Hyundai motors enjoys a larger share of the number of cars in the world and is considered as a cost leader. Here plays the role of effective supply chain and increasing the…show more content…
Role of supply chain management in increasing the productivity of the company is majorly contributed by lead time management, which is nothing but the time taken for a process to get completed. Lead time management plays major role in each and every part of the company right from inventory of the raw materials to the final stage of the manufacturing of the product. The majority of the areas in which it is effectively used are inventory of raw materials and the production unit of the product and these both are subdivided into various stages that acts as the buffer between the production time and the product release time. Fig.4 strategic lead time management Courtesy: Martin Christopher, Logistics and Supply Chain Management, Fourth

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