final presentation of mosc1

8/14/2019 Final Presentation of Mosc1

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MANAGING OPERATIONS ANDMANAGING OPERATIONS AND

SUPPLY STRUCTURESSUPPLY STRUCTURES

Presented By:Presented By: Rajesh KumarRajesh Kumar

2104308421043084Donny Koei 21041045Donny Koei 21041045

Jeegar Merchant 20446183 Jeegar Merchant 20446183Bilal Nawaz Khan 21036361Bilal Nawaz Khan 21036361


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SELECTION OF INDUSTRYSELECTION OF INDUSTRY

CAR INDUSTRYCAR INDUSTRY COMPANIESCOMPANIES

1) SUZUKI MOTOR COMPANY LIMITED1) SUZUKI MOTOR COMPANY LIMITED[COUNTRY - PAKISTAN][COUNTRY - PAKISTAN]

2) BMW Group [COUNTRY - GERMANY]2) BMW Group [COUNTRY - GERMANY]

AREAS EXPLAINEDAREAS EXPLAINEDSUPPLY STRUCTURESUPPLY STRUCTUREMATERIALS MANAGEMENTMATERIALS MANAGEMENT


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Pak. SUZUKI MOTORPak. SUZUKI MOTORCOMPANYCOMPANY

Pak. Suzuki Motor Company Limited (PSMCL) was incorporated as a publicPak. Suzuki Motor Company Limited (PSMCL) was incorporated as a publiclimited company in August 1983limited company in August 1983

Joint Venture Agreement executed between Suzuki Motor Corporation of Joint Venture Agreement executed between Suzuki Motor Corporation of Japan (SMC) and Pakistan Automobile Corporation (PACO) Japan (SMC) and Pakistan Automobile Corporation (PACO)

In September 1992 the company was privatized and placed directly underIn September 1992 the company was privatized and placed directly underthe Japanese Management. At the time of privatization SMC increased itsthe Japanese Management. At the time of privatization SMC increased itsequity from 25% to 40% Subsequently it has increased its equity to 73.09%equity from 25% to 40% Subsequently it has increased its equity to 73.09%by December 31,2001.by December 31,2001.

The Bin Qasim Plants production capacity is 50,000 vehicles per year The Bin Qasim Plants production capacity is 50,000 vehicles per year(1992). The production capacity was further enhanced to 80,000 vehicles(1992). The production capacity was further enhanced to 80,000 vehiclesper year (2005), 120,000 vehicles (2006) and 150,000 vehicles per yearper year (2005), 120,000 vehicles (2006) and 150,000 vehicles per year(2007). In June 2008, 740,828 vehicles production was achieved.(2007). In June 2008, 740,828 vehicles production was achieved.

It is the most modern automobile manufacturing plant in the country.It is the most modern automobile manufacturing plant in the country.

Pak. Suzuki always endeavours to the development of society by increasingPak. Suzuki always endeavours to the development of society by increasingmotorization industrialisation, creating job opportunities thus improving themotorization industrialisation, creating job opportunities thus improving thepeoples living standards with the combined efforts of all the dealers,peoples living standards with the combined efforts of all the dealers,vendors and Pak Suzuki employees.vendors and Pak Suzuki employees.


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W

Bayerische Flugzeugwerke (BFW) is founded on 7th

March 1916 and incorporates Otto-Werke. BMWacquires the BFW plant in 1922, but BayerischeMotoren Werke continues to date its foundation fromthe founding of BFW. BMW (car) has sales total of 764,874 automobiles, in first half on 2008, which is themost successful sales in the history of BMW Group.BMW Manufacturing Corp. is a subsidiary of BMW Groupin Munich, Germany


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BMW Missionstatement

"To be the most successful premiummanufacturer in the industry.

To provide servicing, Maintenance and diagnosticservices exceeding our customers expectationsand requirements in both quality and level of service.

To specifically taylor our service to meet eachcustomers needs and budget.

To conduct our activities in an economicallyviable, safe and professional manner.


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PRODUCTION COMMITTEEPRODUCTION COMMITTEEMEETINGMEETING

In production committee meeting the directorsIn production committee meeting the directorsand the general managers decides how much toand the general managers decides how much topurchase materials from the importer analysingpurchase materials from the importer analysing

the market ,production capacity ,market forthe market ,production capacity ,market forcasting.casting.


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UPDATION OF THE SPSUPDATION OF THE SPSSHEETSHEET

SPS is the stock production sales sheet whichcalculates how much of the material should bepurchased from importers .This will bediscussed in materials management .


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PLACING OF TENTATIVEPLACING OF TENTATIVEORDERORDER Tentative order is regarded as initial order Tentative order is regarded as initial order

which is generated after productionwhich is generated after productioncommittee meeting just to check that is everycommittee meeting just to check that is every

department satisfied from the orderdepartment satisfied from the order


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PROFORMA INVOICEPROFORMA INVOICEBuyer request for PROFORMA INOVOICE from the supplierBuyer request for PROFORMA INOVOICE from the supplierPROFORMA INVOICE contains the details of the consignmentPROFORMA INVOICE contains the details of the consignment.The values are given in PROFORMA INVOICE.The values are given in PROFORMA INVOICE=NO OF PIECES X UNIT COST = COST=NO OF PIECES X UNIT COST = COST

++FREIGHTFREIGHT

= C&F= C&F


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RECEIVE SHIPMENTRECEIVE SHIPMENTSCHEDULE FROM SUPPLIERSCHEDULE FROM SUPPLIER

Shipment schedule contains the informationShipment schedule contains the informationabout consignment`s expected date of about consignment`s expected date of departure and expected date of arrival.departure and expected date of arrival.


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MODE OF PAYMENTMODE OF PAYMENTMode of payment is done through letter of Mode of payment is done through letter of credit in which the bank gives the guarantee.credit in which the bank gives the guarantee.


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NON NEGOTIABLENON NEGOTIABLE

DOCUMENTDOCUMENTNon negotiable documents are received fromNon negotiable documents are received fromthe supplier via post which contains bill of the supplier via post which contains bill of lading ( issued by supplier's shippinglading ( issued by supplier's shippingcompany) , invoices ,containers list ,lettercompany) , invoices ,containers list ,letterfrom the governments chambers of from the governments chambers of commerce. These documents are then givencommerce. These documents are then givento the clearing agent for custom purposes into the clearing agent for custom purposes inthe portthe port


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NEGOTIABLE DOCUMENTSNEGOTIABLE DOCUMENTSANOTHER SET OF DOCUMENTS FROM THEANOTHER SET OF DOCUMENTS FROM THESUPPLIER`S BANK IS RECEIVED BY BUYERSSUPPLIER`S BANK IS RECEIVED BY BUYERSBANK .THIS PROVES THAT THE PAYMENT ISBANK .THIS PROVES THAT THE PAYMENT ISDONE.DONE.


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CONSIGNMENT AT PLANTCONSIGNMENT AT PLANTAfter receiving the clearance from theAfter receiving the clearance from thegovernment with respect to the custom thengovernment with respect to the custom thenthe transport company pick`s thethe transport company pick`s theconsignment from the port and bring it to theconsignment from the port and bring it to theplantplant


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C u s t o m e r s

S u p p l i e r s

P1 Plan Supply StructurePlanPlan

P2 Plan Source P3 Plan Make P4 Plan Deliver

Source Make Deliver

S1 Source Stocked Products M1 Make-to-Stock

M2 Make-to-Order

M3 Engineer-to-Order

D1 Deliver Stocked Products

D2 Deliver MTO Products

D3 Deliver ETO Products

S2 Source MTO Products

S3 Source ETO Products

ReturnSource

P5 Plan Returns

ReturnDeliver

Enable

BMW Supply Structure Operation


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SUZUKI (Pak.) MATERIALSUZUKI (Pak.) MATERIAL

MANAGEMENTMANAGEMENTPURCHASING THE RIGHT PRODUCT FROM THE RELIABLEPURCHASING THE RIGHT PRODUCT FROM THE RELIABLESOURCE AT REASONABLE PRICE OF ACCEPTABLE QUALITY ATSOURCE AT REASONABLE PRICE OF ACCEPTABLE QUALITY ATRIGHT TIME CONSIDERING THE OPTIMUM INVENTORY LEVEL.RIGHT TIME CONSIDERING THE OPTIMUM INVENTORY LEVEL.

MATERIAL NEED ANALYSIS > SOURCE TRACKING>MATERIAL NEED ANALYSIS > SOURCE TRACKING>ORDERING > RECEIVING>PAYMENT>STORAGE>ISSUANCEORDERING > RECEIVING>PAYMENT>STORAGE>ISSUANCE


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MATERIALS MANAGEMENTMATERIALS MANAGEMENTCALCULATIONCALCULATION

PARTS JAN.08 FEB.08 MAR.08

SMC

Production 192 240 480

Shipment 192 192 480

Stock - 48 48

In-transit

PSMC

Received 144 96 384

Production 20 116 130

Sales - 19 114

PARTS172 152 406

- - -

Stocks CBU 20 117 133

Total : 192 269 539

PARTS Inventory Level 1.48 1.16 1.17

CARS Inventory Level 1.05 1.03 0.84


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MANAGEMENT

BMW uses SAP applications for logistics, financials, andhuman resources. It also uses mySAP Automotive tomonitor production status in real time.SAP TM Automotive receives custom-configuredmanufacturing orders from BMW's planning system andgenerates delivery schedules matching BMW'sassembly-line planning and sequencing directives,which are sent to suppliers.Larger suppliers receive the information via electronic

data interchange (EDI). Other suppliers access themySAP Automotive Supplier Portal Through an Internet browser, suppliers can view thisinformation in real time,When shipping parts, suppliers send BMW an advanceshipping notifications (ASNs) with information on parts


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MANAGEMENT

Parts arriving at the BMW dock are then received andtransferred directly to the line .mySAP Automotive registers production confirmationand parts consumption information every three

minutes.Parts consumed during assembly are removed from theinventory count, and costs are posted to calculate thevalue of work in process.mySAP Automotive gives BMW a standardized, scalableplatform that can be flexibly expanded and modified toembrace new functionality or changes in businessprocesses.mySAP Automotive provides the best-in-class Internet

functionality and the most frequently used businessprocesses from production planning and procurement


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MANAGEMENT

mySAP Automotive provides the best-in-class Internetfunctionality and the most frequently used businessprocesses from production planning and procurementto sales and distribution.

The seamless collaboration between business partnersacross the supply chain supports the engineering andhigh-volume production of highly customized products.

Advantages of mySAP:

BMW business processes are integrated with mySAPAutomotive so information can be easily accessed,including forecast requirements on a component level,sales orders, and vehicle bills of material.


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MANAGEMENT

The company has also developed Internet applicationsfor supplier quote creation and analysis for productionparts, which have been added to the mySAPAutomotive Supplier Portal, Workplace.Hans Nowak, program manager for BMW

Manufacturing Company in Spartanburg, says mySAPAutomotive helps us reduce order-to delivery time,strengthens our supply chain activities in the areas of demand planning and tracking and tracing of materialdeliveries and improves inventory accuracy across ourSpartanburg plant enabling us to significantly reducetime-to customer.


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COMPARISONCOMPARISON

SUZUKI VS BMWSUZUKI VS BMW Suzuki (Pak.) uses MS Excel for their database,Suzuki (Pak.) uses MS Excel for their database,ordering, material management calculations, whileordering, material management calculations, whileBMW uses latest software SAP which makes the wholeBMW uses latest software SAP which makes the whole

procedure time efficient.procedure time efficient. While BMW traces their shipment ETD and ETA onlineWhile BMW traces their shipment ETD and ETA onlinein real time, Suzuki (Pak.) corresponds their shipmentin real time, Suzuki (Pak.) corresponds their shipmentdetails by fax and other traditional methods.details by fax and other traditional methods.

This decision to do so depends greatly on the size and This decision to do so depends greatly on the size andscale of the operation.scale of the operation.

BMW also offers its customers the option to customizeBMW also offers its customers the option to customizetheir car on the website (degrees of customization).their car on the website (degrees of customization).


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Thank You! Any Questions? Thank You! Any Questions?

final presentation of mosc1

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