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School of Mechanical and Aerospace Engineering Nanyang Technological University Singapore

GROUP PROJECT MA6535 Management of Global Manufacturing


Analysing supply chain of automotive industry with the context of global manufacturing

COURSE COORDINATOR Associate Professor Sivakumar Appa Iyer TEAM MEMBERS

RAMANATHAN RAMANATHAN KANNAN SOMASUNDARAM MOORTHY ASHOKAN MUTHUKUMAR SG MAHESHWARAN MASILAMANI KANNADASAN NARESHKUMAR G1101248A G1101243E G1101249J G1102334J G1102357G M.Sc., Logistics (Full-Time) M.Sc., Logistics (Full-Time) M.Sc., Logistics (Full-Time) M.Sc., Logistics (Full-Time) M.Sc., precision (Full-Time)

DATE: 14-FEB-2012

Abstract: Ikeda Hoover Ltd (IHL) was established in 1986 to supply seating modules on a synchronous basis to Nissans UK plant located in Sunderland. The company undertakes cutting and sewing, injection moulding, welding and assembly activities within a single plant located within five minutes of the Nissan car plant. Output currently stands at around 6,000 seating modules per week divided between three models. At the moment, close on 80 percent of IHLs suppliers are UK-based although this sourcing policy is increasingly coming under pressure as the value of sterling erodes Nissans plant. In this case study the characteristics of synchronous manufacturing, supplier-buyer relationship, and modular supply model with an automobile content is examined. In a deeper extent the essential difference between the traditional just in time manufacturing and the synchronous manufacturing are examined taking the buyer supplier relationship in to account. Analyzing the buyer supplier relationship and the manufacturing strategies leads to the development of the modular supply model since the buyer supplier relationship may change. Moreover, the growth of modular supply model is likely to require a reappraisal of supply chain relationship as both the nature of buyer supplier change and a new tier-one position is established that moves the modular suppliers close to the buyers. The objective of our work is to further study the modular supply chain model with many parts outsourced to low cost manufacturing facilities, OEM setting up the plant in low cost manufacturing cities, mass customisation employed by the OEM to target niche customers with respect to the current globalised scenario. We would like to study the impact of ever increasing oil prices and labour wage increase in the traditional low cost manufacturing facilities which makes the manufacturers to study the impact of outsourcing rather than going to the low cost manufacturing facilities blindfolded. With

this context we would like to propose the future supply chain model on the basis parts divided as strategic and non strategic components.