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The Automotive Industry: T.Prabhaharan Anna University of Technology Coimbatore
The Automotive Industry: T.Prabhaharan Anna University of Technology Coimbatore
T.PRABHAHARAN
ANNA UNIVERSITY OF TECHNOLOGY COIMBATORE
The Automotive Industry
Parts Supplier
IT advancements
3rdwave distribution software by Blinco
Systems
Assures parts quality, controls availability,
guarantees delivery, provides consistent
materials pricing
External factors
Increasing oil prices effect transportation
costs for all markets
Competitive Characteristics
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 cont’d
Development
Uniqueness in design and specifications
Helps create identity for Honda
Management
Positive attitude
Measured by Q.C.D.D
Feedback
Grade cards for suppliers
Honda Quality and Efficiency
Local Plant
Assembly
Main Plant facility
Mexican Suppliers
Forecasting Is Key
C2C is generally the number of days it takes to convert the expenses for
raw materials into payment for the finished product (1).
The term Toyota uses for their system is “heijunka”. Translated 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.
Toyota’s 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 .
Working with suppliers
This concept is one that Toyota uses internally and it also requires of
its suppliers to improve the overall C2C cycle.