NAME AZUKA ONYEME

STUDENT ID 3946660

4053053
BRUNO RETHINA SWAMY RENISH FALEYE EMMANUEL 3936797

3384482
HAO NIE OUSMAN TOURAY 3581782

PRESENT BY FALEYE EMMANUEL

INTRODUCTION THEORIES IMPLEMENTATION CRITICAL CONCEPTS KEY LEARING POINTS CONCLUSION REFERENCES

 Harley Davidson is a last surviving bike manufacturer in USA  In 1970’s Harley increase production with the aim of increasing profits  Idea “back-fired” as they began to face quality problems and had a bigger inventory  In 1980’s market share rapidly decrease from 33% to 23%  $24 million dollars inventory was turned over at 4.5 per year which was 1/3 of their target which was 12 turns per year

 Introduced the idea of “JUST IN TIME” production and a proper supply chain management
 Their focused shifted to “Anticipating demand to Responding Orders” i.e.(“PUSH T0 PULL”)  They introduced “Group problem solving exercises”  Harley came up with the idea of “outsourcing jobs”  KSG manufactures parts to Harley and they call (“just in time program as MAN-materials as needed”)  Approached with idea of quality and delivery are an absolute necessity  Suppliers are required to have “ Statistical operator control & Employee involvement programs”  ULTRA TOOL is a major supply company that succeeded with the MAN idea

 Suppliers are required to have “ Statistical operator control & Employee involvement programs”

 ULTRA TOOL is a major supply company that succeeded with the MAN idea
 The company had a good relationship with Harley and they kept their prices the same for 4 years  Harley got involved in branding goods like licensing its name to Logo as side business  Other links they used in managing their supply chain are :       Optimizing supplier base Understanding their capabilities Exchanging information Process improvement Sole sourcing –Bench marking suppliers World class customer

The result is continuous improvement in quality and total cost of purchased parts

PRESENTED BY BRUNO RENISH

 Just in time  PUSH/PULL  REDUCE INVENTORY  Outsourcing

 M.A.N  Statistical Operator  Employee Involvement
 Quality & Delivery

PRESENTED BY OUSMAN TOURAY

 Push /pull : pull system supply as ordered  Reduce Inventory : Inventory is reduced Stock is ordered as needed  Ordering parts from the external suppliers Eg. ULTRA TOOL

Where a member of staff showed how passionate he was about his job. He said he manufactures the bikes the way he would want to have his own bike. He was a bike lover indeed
 Quality is not negotiable  Delivery is not negotiable

 Defective goods or parts  Cost of failure

 Additional training  Over time working  Additional expense

THE FIVE ELEMENTS OF SUPPLY CHAIN MANAGEMENT
1. TIME 2. MONEY FLOWS

PRESENTED BY HAO NIE

Order to Delivery Lead Time

$
CASH OUT
Material processing
Raw Material Inventory

Cash flow Cycle

$
CASH IN

CUSTOMER

Supplier
3. INVENTORY MANAGEMENT

Subassembly

Assembly

In process inventory

In process inventory

Finished Goods inventory

4. PHYSICAL MATERIAL FLOW

MATERIALS

SCHEDULES INFORMATION
5.INFORMATION

INVOICES

Reduce the cost of labour and overhead

Before
10% material 30% 60% labour&overheads profit 10%

Now
10%

80%

RETURN ON CAPITAL EMPLOYED
More Sales Higher Prices Lower Costs Lower Overheads

Major Focus
R.O.C.E = PROFIT CAPITAL EMPLOYED

%

Reduce Debtors Increase Creditors Reduce Inventories Reduce Fixed Assets

CONCLUSION Key points from the theory
 Introduce and Apply the right approach and programs  Manage supply chain networks effectively  Have a good customer, employee and supplier relationship  Aim at good quality, increased productivity at reduced cost  Customers satisfaction.  Bench Marking  create training programs and reward system for the employees  Seeing employees as assets  Being updated with new programs, create new ideas in order to make more profits

PRESENTED BY AZUKA ONYEME

 Above all have a reputation, continuous improvement as a competitive edge over others.

In conclusion we would someday manage and even own an organisation and with the knowledge
gained from the case study, being applied in an organization would yield better results.

 Harrison, A.(1992) just in time manufacturing in prospective, edn. Hemel Hempstead : prentice Hall International (UK) Ltd.  Todd, J. (1994) World class manufacturing, edn. Maiden head : McGraw Hill.  Phil. S (2011), Supply chain management : course notes. Coventry : Coventry University  Nigel Slack, stuart chambers, Robert Johnston. (2010) operations management (6 th ed).  Michael L. George, (2002) Lean Six Sigma, Mc Graw Hill  Ghadge, A., Dani, S.and Kalawsky, R. (2010) ‘A framework for managing risks in the serospace supply chain using systems thinking.’ 5 th International conference on system of systems engineering, 22-24june 2010. DOI: (Accessed : 21 june 2011)  Lean manufacturing by Richard L. Nolan, Karen A Brown, Subodha Kumar. Source: Harvard Business School 23 pages. Publication date: May 03, 2006. Prod. #: 906417-PDF-ENG  eHow (n.d.) Advantages & Disadvantages of lean production [online] available from <www.ehow.com/about 5418429 advantages-disadvantages-leanproduction.html >[30 Oct 2011}] 10.1109/SYSOSE.2010.5544082

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