scm in motor vehicle industry.pptx

8/17/2019 Scm in Motor Vehicle Industry.pptx

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Supply Chain in

the MotorVehicle

Industry.

Presented by

Ananthu bharat


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Introduction


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• The motor vehicle industry isvery competitive.

• A competitive advantage isnecessary to remain in

activity.


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• There are two main strategies toget a competitive advantage:


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• M! has a di"erentiation strategy.


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• How can supply chainmanagement help attain asustainable competitive

advantage?

• The Mini assembly plant is

located in #$%ord.


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#utline

Part I: An Overview of the BMW Group

A) BMW AG

B) BMW in the United Kingdom

C) Mini

Part II: The Contribution of Supp!

Ch"in M"n"gement to the Competitive

Adv"nt"ge of the Motor #ehi$e

%ndu&tr!

A) Wh"t i& " &upp! $h"in'B) (voution&

C) Current i&&ue&

Part III: Mini the *rodu$tion Tri"nge A) A phio&oph! of produ$tion

B) *rodu$tion

Part IV: Mini the (+tended *rodu$tion,etwor-

A) .ogi&ti$&

B) *ur$h"&ing poi$ie&

C) The roe of &uppier&


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Part I:

An #verview o% the M!&roup


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A' M! A&

• Three brands o% cars.

/ 0123/4 $"r&

deivered in 0445

6421/ miion euro&

of revenue in 0445

52034 empo!ee&

,et revenue de$re"&ed b! 32789

/8th "rge&t $"r

m"nuf"$turer in

term& of produ$tion


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• The main mar(ets are&ermany) the *nited States)the *nited +ingdom and Asia.


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• ,- production and assemblyplants in / countries0


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• 0with most o% productionlocated in 1urope.


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• M! group2s strategy:increase sales by more than ,

million cars a year) throughmaterials cost reductions andbetter utilisation o% the capital

employed.

• Two pillars:

3 4ocus on premium segment.3 5etwor(ing and 6e$ibility in

production.


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' M! in the *nited+ingdom

3rd "rge&t m"r-et of the group

0nd bigge&t produ$tion

$ountr!

On! $ountr! where thethree br"nd& "re

m"nuf"$tured3rd "rge&t $"r

m"nuf"$turer in the UK

/7; biion worth of e+port& in0448 repre&enting "mo&t /9

of Briti&h e+port&7

1444 empo!ee&


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• 4our production plants in the *+:

Goodwood:

/444 empo!ee&

/0/0 $"r& in 0441

$!inder petro engine&

3;0444 engine& in 0441

Swindon:

/444 empo!ee&

*re&&ing& "nd &ub>"&&embie&

for the Mini

O+ford:

3;44 empo!ee&

*rodu$tion "nd "&&emb!

of the Mini

0/2444 $"r& &od in 0445


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C' Mini

7/ 4irst car produced in #$%ord) the ullnose Morris.

7/8s Morris %actory is established in its current location) in Cowley.

79- The Pressed Steel Company later Pressed Steel 4isher'

needs e$tra capacity outside its #$%ord %actory andestablishes a car panel production %acility in Swindon.

797 Creation o% Mini as a concept %or ritish Motor Corporation:Morris Mini Minor and Austin Seven.

7;9 Pressed Steel 4isher bought by eyland) to create ritish >eyland.7;7 Separation between Austin and Morris models is li%ted: all

Mini cars are branded MI5I.

7=; ritish >eyland renamed


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77- The M! &roup ac?uires the aunch o% the Mini Convertible.

,88; Second generation o% Mini.

,88 >aunch o% the Mini Clubman.

,88= The Mini 1 is unveiled.

,887 >aunch o% the new Convertible.

,88 >aunch o% the Mini Countryman.


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• Three body styles.


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• Si$ engine variants:

- petrol variants:

3 #ne: basic

3 Cooper: intermediary

3 Cooper S: turbocharged3 Bohn Cooper !or(s: the most

power%ul

, diesel variants:

3 #ne : basic

3 Cooper : intermediary


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Part II: The contribution o% Supply

Chain Management to theCompetitiveness o% the

Motor Vehicle Industry


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A' !hat is a supply chainD

First tier

supplier

Second tier

supplier

First tier

customer

Second tier

customer

End

customer

Demand sideSupply side

Purchasing andsupply management

Physical distributionmanagement

Logistics

Materialsmanagement

Supply chain management

Information

flow

Physical

flow


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' 1volution o% supply chainmanagement in the motor

vehicle industry.

• The environment has dramaticallychanged %rom the 78s.

• SCM has been an area o% growinginterest since that time.

• Competitiveness = internalefciency + good management oexternal relationships.


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• The main changes which occured:

The traditional way The new way• >ow prices privileged• >arge supply base• Adversarial relationshipswith suppliers• >imited communications• >arge stoc(s

• Involvement o% suppliers%rom development• Smaller supply base• >onger contracts

awarded• Interdependency• Smaller and more%re?uent deliveries.

• Strong integration o% organisatio• In6uence o% Bust3In3Time and Agili


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C' Current issues.

• Crucial decisions:


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• Capacity utilisation: e"ect onrevenues) speed o% response)dependability) ?uality) 6e$ibility.

• Planning) %orecasts: mismatchesbetween demand and production aree$pensive.

• >ead time: improvements in timeand consistency will beneEt thesupply chain at di"erent levels)giving more 6e$ibility.

• >ogistics and inventorymanagement: creates thesynchronisation o% material andin%ormation 6ows between the

organisations.


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Part III:Mini) the Production Triangle


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A' A philosophy o%production

• +#VP: Customer3#riented Sales and ProductionProcess:

3 Simple and rapid ordering process at the

dealers2.3 Immediate receipt o% binding conErmation order.

3 4le$ibility when altering customer2s order up to days be%ore production'.

3 In%ormation on the order status.

3 Fuic( and punctual delivery .

• Aim: o"er a customised car at a desired date.


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• Provides additional revenuesand builds the brand image.

• Attained through a 6e$ibleproduction system and aper%ormant IT environmentwhich enables visibility andcoordination along the supplychain.


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• @ow can M! gain more6e$ibility in the productionprocesses D

3 Postponement:


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3 uild3To3#rder:

>ow Enished goods inventory)customisable product) ?uic(delivery. GPullG triggers.


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' Production

(ngine&:

?eivered @u&t>in>

&euen$e7

Tr"$ed through

produ$tion7

BMW -nowedge7

Bod! pre&&ing& "nd "nd &ub>"&&embie&:

?eivered @u&t>in>&euen$e7

%n$re"&ed $"p"$it! "nd produ$tivit!7

149 of p"rt& of the bod! &he7

Bod! &he "nd "&&emb!:3;4 different interior trim& "nd 304

e+terior v"ri"nt&

=e+ibiit! of the f"$iit!

Modue&


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Part IV:

Mini) the 1$tendedProduction 5etwor(


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A' >ogistics

• >ogistics has a direct impact on thespeed and eHciency o% operations.

• Increased structural comple$ity o%

production and sales networ() togetherwith increased product comple$ity andchanging customer re?uirements:

challenge to design and manage.• #ptimisation: standardisation and

integration.


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• i"erent levels o% logistics networ(s:


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• Transport o% components andparts.

• Material handling.

• >ogistics %acilities.

• 1nterprise


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' Purchasing policies

• Suppliers have to be care%ully selected.

• Cost reductions

&l b li i


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• &lobalisation.


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C' The role o% suppliers

• 5umerous and important parts o% theMini are sourced locally: speed and6e$ibility.

• Suppliers choose to relocate near theplants: signiEcant integration.

• Suppliers are re?uested to deliver high?uality products and services. 1$amples

o% +aute$3*nipart and @P#.• Suppliers2 development can help attain

cooperation and per%ormance.


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Conclusion


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• Mini and M!2s competitive

advantage lies in their brandimage.

• The brand image is built onpremium) customised products.

• The +#VP is supported by supplychain operations.

• Supply chain management

provides ?uality) eHciency and6e$ibility.


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• #perations are managed to %ulElthese aims within the group) but

also all along the supply chain.• Cooperation with suppliers is

vital.

• 4ocus on core competencies.• rawbac(s: change in the

structure o% the supply mar(et.

• &ood supply chain managementpractices are an opportunity toreduce costs and increaseproEts.

scm in motor vehicle industry.pptx

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