BANGALORE AGRICULTURAL AND COMPLEX PARTS LTD.

 

BY:ANJU

ANIRUDDH TIWARIDEBTANU DEY

MEENAKSHI SRIMALISAI GANESH

SHASHANK M.A

Questions 1

Discuss the strengths and weaknesses of Bangalore Agriculture's AEP. Consider and discuss other criteria to include in the analysis.

Helps in providing competitive advantage to deliver worldwide equipment to customers

Can facilitate long-lasting supplier relationships through Supplier Evaluation process

Capability to recognize supplier performance

Ability to provide suppliers with Supplier performance summary

STRENGTHS

WEAKNESSES

Consideration of too many variables in Wavelength rating and Technical support

Challenges in evaluating a long-term supplier

Consensus approach to Wavelength rating and Technical support

OTHER CRITERIA FOR THE ANALYSIS

Technical competenceService rating (cooperation and readiness

to help during emergency) Speed of replacementSupport documents effectiveness and

completeness Management commitmentIndustry positionWarranties and claim policies

Do you think Complex Parts has performed adequately over the past year? Why or why not? Which of Bangalore Agricultural’s assessment classifications should be assigned to Complex Parts?

Question 2

COMPLEX PART’S PERFORMANCE

Complex part’s performance can be assessed based on 5 parameters :

1.QUALITY : Company achieved a quality rating of 666 which means that there were 0.6

rejects for 1000 parts supplied Complex Parts had done an excellent job internalizing the Bangalore

Agricultural’s Quality Plan elements

REMARK : Company scored well on quality parameter as rating was less than 1000 which is requisite for considering supplier as partner.

2.DELIVERY : Complex parts had achieved a delivery rating of 8,650 which is an

excellent score but off late ,in past quarter its rating was dismal 155000 which is way below the standards which is expected of suppliers who are given conditional approvals

Expediting had recently become a weekly requirement as a result of delayed deliveries

REMARK : Company although had a good track record of doing well in this parameter ,in last quarter its performance was very poor ,hence delivery is an area of concern

3.WAVELENGTH: Good performance in this parameter means improved

quality,attitude,responsiveness,attention to detail and communication performance

Complex Parts had done an excellent job internalizing the Bangalore Agricultural’s Quality Plan elements but was lagging behind in doing the same in its new plant

Delivery rating stood at 155000 which was not expected of a supplier partner like complex parts

Company was not responsive and expediting had become a weekly requirement

Price quotes not reaching on time suggests poor communication performance

Though company was proactive with its approach , in past quarter it failed to exhibit same performance

REMARK : Although historically Complex part’s has been a proactive supplier, in past quarter it scores low on this parameter

4.TECHNICAL SUPPORT: Assessment of the supplier in the areas of assembly line support, design

and process change information, manufacturing and design improvements, field problem resolution, test support, environmental responsibility, and supply management support

Complex Parts had taken an active role in keeping up with Bangalore Agricultural’s required specification changes

Complex Parts’ R&D department noting that several suggestions from the department had resulted in successful Bangalore Agricultural’s new product programs

But complex parts were not responsive for service demands of Bangalore agricultural

REMARK: Complex part did score well in technical support matter but need focus upon service

5.COST MANAGEMENT : Increase in cost due to late deliveries Not achieving target costs for number of items producedREMARK: Cost management is a concern

Although complex parts scores well in its performance over the year ,it has shown a poor performance on various parameters in past quarter.

SUPPLIER ASSESSMENT

In spite of Complex part’s poor performance in previous quarter, its excellent track record over the past years qualifies it to Partner status

However, Complex parts has to ensure that it improves on key performance parameters mentioned earlier

Question 3

If you were a member of the supplier evaluation team, what alternatives courses of action would you consider for Complex Parts? What recommendation should the team make to the project manager?

ALTERNATIVE ACTIONS FOR COMPLEX PARTS:

Problem: Late deliveries and price quote not reaching in time

Action needed: Implementing effective IT system to keep track of information and real time information exchange with the customer

Problem: Quality issues Action needed: Implement quality control process

similar to existing plant and demand quality products from tier1 and tier 2 suppliers

Problem: Not responding to service demands of Bangalore agriculture

Action needed: Depute a service engineer to Bangalore agriculture’s

plant to respond to change in service demands Train engineers at Bangalore agriculture

Problem: Unable to meet Cost targets Action needed: Reduce raw material costs through collaborative efforts

with vendors Focus on process improvements to reduce wastes Shift to vendor managed inventory.

RECOMMENDATIONS TO THE PROJECT MANAGER

Provide necessary training in the 1st quarter to Complex parts to improve on performance parameters

Reduce the order size by 20% in the consequent quarter, if desired performance levels are not met & in turn procure 20% from one of the other two suppliers

If the undesired performance continues consider moving Complex parts from existing “partner” status to “key” status

Question 4

What are the short-term and long-term implications of your recommendations?

SHORT TERM

Employing suitable & well experienced trainers Employing other suppliers who would meet the

specifications Will force Complex Parts to assess their performance on

key performance evaluators

LONG TERM

Improved performance of Complex Parts after getting trained in specific performance improvement areas

Develops long term supplier relationship with new suppliers Entry of new suppliers results in competition among

suppliers, forcing Complex Parts to perform better Extensive training in specific area will result in cost

reduction in long term

THANK YOU