PRO FISHING BOAT

CASE : PRO FISHING BOAT (1)

• A fi s h i n g b o at m a n u fa c t u re r, P ro F i s h i n g B o at s , i s h av i n g m a ny p ro b l e m s w i t h
c r i ti c a l g l o b a l l y s o u rc e d p a r t s
• T h e co m p o n e nt i s m a n u fa c t u re d o ve rs e a s i n C h i n a b y t h e T i e r I s u p p l i e r,
M a n u fa c t u r i n g I n c
• p ro d u c ti o n s c h e d u l e i s b a s e d o n o rd e rs s e nt v i a fax f ro m t h e P r o F i s h i n g
w a re h o u s e
• I t o p e rat e s o n a 9 0 - 6 0 - 3 0 – d ay fo re c a s t , a l o n g w i t h a w e e k l y o r d e r
• M a n u fa c t u r i n g I n c . s e n d s t h e c o m p o n e n t v i a t r u c k t o t h e S h a n g h a i Po r t ,
w h e re i t i s l o a d e d o nt o a s h i p h e a d i n g t o t h e U n i t e d S tat e s
• L o a d i n g at t h e p o r t ta ke s 1 w e e k , a n d t r u c k t ra n s p o r t ta ke s 3 d ay.
• M a n u fa c t u r i n g I n c . h o l d s a 9 - w e e k fi n i s h e d g o o d s b u ff e r i nve n t o r y
• M a n u fa c t u r i n g ti m e fo r e a c h c o m p o n e nt i s o n l y a b o u t 3 d ay s
CASE : PRO FISHING BOAT (2)
• T h e s h i p b o u n d t o t h e U n i t e d S t a t e s t a ke s a b o u t 1 4 d ay s t o t rav e l o v e r s e a s
• Upon arrival in the United States, the component is unloaded at the Los Angeles
port
• T h i s t a ke s a b o u t 5 d ay s a n d c u s t o m s i n s p e c t s t h e s h i p m e n t i n L o s A n g e l e s
• T h e g o o d s t ra v e l b y t ra i n t o C h i c a g o, w h i c h t a ke s a b o u t 7 d ay s .
• G o o d s a r e h e l d i n C h i c a g o fo r a b o u t h a l f a w e e k
• F r o m t h e r e , t h e c o m p o n e n t i s t r u c ke d t o a P r o F i s h i n g w a r e h o u s e w h e r e t h e 6 -
w e e k i n v e n t o r y b u ff e r
• S h i p m e n t t o t h e P r o F i s h i n g w a r e h o u s e t a ke s 2 d ay s
• F r o m t h e w a r e h o u s e , t h e c o m p o n e n t s a r e t r u c ke d t o p l a n t s i n t h e U n i t e d S t a t e s
trig gered by electronic orders from each of the Pro Fishing plants
QUESTION
1. C re at e a va l u e st re a m map (VSM) of this supply chain. W h at other
i n fo r m ati o n i s n e e d e d ?
2 . W h e re i s t h e re r i s k fo r s u p p l y c h a i n d i s r u p ti o n s o rs t o p p a g e s t o t h e fl o w o f
m at e r i a l s ?
3 . W h e re d o o p p o r t u n i ti e s re s i d e i n i m p r o v i n g s u p p l y c h a i n o p e rati o n s a n d h o w
h a s V S M h e l p e d re ve a l t h e s e ?
1 . Value stream map (VSM)
 Needed Additional Info :

a. S h i p p i n g ti m e f ro m t h e w a re h o u s e t o t h e p l a n t s .

b. C a p a c i t y p e r s h i p m e nt .

c. Q u a l i fi c ati o n re q u i re m e n t s fo r t h e s u p p l i e rs .

d. T h e n u m b e r o f m at e r i a l s t h at a re n e e d e d fo r t h e p ro d u c ti o n .
2. Where is there risk for supply chain disruptions or stoppages to the flow of materials?

 T h e i n t e r n a ti o n a l s h i p m e n t w o u l d t a ke a h u g e r i s k i n t h i s p ro c e s s d u e t o t h e
s e v e ra l s t a g e s o f t ra n s p o r t a ti o n a n d s t o ra g e , t h e ft a n d b a d w e a t h e r c o u l d b e
happened.

 T h e m u l ti s t o p s s t a g e s t h a t w e n e e d e d i n t h i s j o u r n ey, s u c h a s t h e r i s k t h a t
c o m e s f ro m t h e w o r k e nv i ro n m e n t t h a t c o u l d h a p p e n d u r i n g t h e t r u c k a n d s h i p
s t a g e s to S h a n g h a i p o r t , o r s h i p p i n g t o t h e U SA , o r b y t ra i n t o C h i c a g o, o r
t r u c k i n g a t t h e e n d t o t h e P ro F i s h i n g w a re h o u s e .

 T h e r u n o u t o f t h e ra w m a t e r i a l s a n d t h a t w o u l d i m p a c t o n t h e a l l o f t h e s u p p l y
c h a i n p ro c e s s .

 D i s r u p ti o n b e c a u s e a n o t h e r c o m p a ny w h o n e e d s t h e s e c o m p o n e n t s a s w e l l
o ff e rs a h i g h e r p r i c e fo r t h e s e c o m p o n e n t s .
3. Where do opportunities reside in improving supply chain operations and how has VSM
helped reveal these?

T i m e m a n a g e m e nt i s t h e m a i n o p p o r t u n i t y t h at w e n e e d . S i n c e , d e c re a s i n g t h e
ti m e w i l l i n c re a s e t h e p ro d u c ti v i t y a n d w o u l d i m p ro v e t h e i n co m e a s w e l l a s
c u st o m e r s ati s fa c ti o n i n t h e s u p p l y c h a i n . T h e a m o u nt o f ti m e t h at w e h a d
b e t w e e n t h e M a n u fa c t u r i n g I n c . t o t h e e n d st e p w h i c h i s P ro F i s h i n g P l a n t s
n e e d s t o b e m a n a g e d a n d m i n i m i ze d . A l s o w e n e e d t o a s s i g n t h e ti m e i n t h e
i nve n t o r y b u ff e rs . T i m e o f g o o d s f ro m o n e m o d e t o o t h e r i n t h e w h o l e o f t h e
t ra n s p o r tati o n . A s w e k n o w t h at a s e r i o u s t h re at w o u l d co m e f ro m p o t e n ti a l
r i s k o f t h e ra w m at e r i a l re s o u r c e s , fo r t h at w o u l d b e b e tt e r i f w e a p p l y t h e
p o w e r o f co m p e ti ti o n b e t w e e n t h e ra w m at e r i a l s u p p l i e rs t o i n c re a s e t h e
n u m b e r o f s u p p l i e rs w h at h e l p u s st o p e re l y i n g o n o n e s u p p l i e r.
CONCLUSION
V S M i s a va l u a b l e a p p ro a c h / t o o l t o re c o g n i s e s u c h p ro c e s s e s w h i c h h av e n o
v a l u e o rc a u s e d e l ay s a n d n e c e s s a r i l y re q u i re d t o i m p ro ve o r re m o ve fo r e ffi c i e nt
fl o w i n s u p p l y c h a i n . I n c u r re n t s c e n a r i o, a l l p o s s i b l e s o l u ti o n s h ave b e e n
p ro p o s e d i n a b o ve d i s c u s s i o n w h i c h P ro F i s h i n g B o at s ca n b e u s e d t o o ve r co m e
c o m m u n i ca ti o n p ro b l e m s a n d d e l ay s w h i c h a re c a u s i n g s u p p l y c h a i n d i s r u p ti o n s
a n d i n c u r r i n g h i g h e r c o st s .
THANK YOU