MGSC 487 Gaffney
-Can be the most serious of the supply chain risk
because the loss of your reputation can wipe out a company
-Think Image and brand recognition
-You want people to positively associate with your brand name
Ex. Volkswagon recent scandal - ANS-Reputational Risk
-Clerical and tactical
-Availability of supply and cost management - ANS-Early 1900's supply chain
-confidence in a supplier's ability to deliver a good or service that will satisfy the customer's
needs
-Achieved through interactive relationships between customer and supplier, aims at ensuring
that product's fit to the customer's requirements with little or no adjustment or inspection -
ANS-Assurance of supply chain
-covers a variety of items
-used to buy maintenance repair and operations (MRO) items in production line requirements
used in volume and purchased repetitively over a period of months - ANS-Blanket purchase
orders
-high level of detail
-certifications
-supplier and subcontractors follow same guidelines
-ensures quality
-covers everything, extensive but effective to lock down good suppliers - ANS-Delphi Supplier
Guidelines
-internal failure costs (hidden factory)
-external failure
-prevention cost
-appraisal cost - ANS-Cost of Quality traditional 4 elements
-Invoice is a plain against the buying department
(document showing the order is placed and goods or services will be provided)
-progress payments are for large contracts spread over a long time i.e. construction
-regular payments are appropriate for ongoing services such as building maintenance or food
service - ANS-8)Invoice clearing and payment
-lowest price
-specification-driven
, -trouble avoidance
-little sharing of info
-short term, reacts to market - ANS-direct relationships
-someone in the org. recognizes that there is a need for something
-what, how much, when its needed - ANS-1)Recognition of need
-Specs. purchaser must do exactly what the internal customer wants
-description must be specific and clear to avoid confusion - ANS-2)description of need
-Strategic Orientation
-Global Supply Chains
-Security, Sustainability, Risk Management - ANS-Supply Chain Now
-suppliers bring employees and materials and work under same roof (VW facility)
-each supplier has their own station with their own materials and employees in the facility
Downside:
-VW's supplier shoulder more direct costs and risk
-Assembly-line workers are paid roughly a third as much as auto workers in San Paulo
Upsides:
-higher quality
-less responsibility and direct cost for VW
-cheaper labor - ANS-Volkswagon Brazil
-The main reason for strategy is to make sure everyone is speaking the same language
-both operational and strategic level - ANS-Why
-the trade-off may be whether the organization is willing to pay premium price for exceptional
service?
- or is the customer willing to sacrifice some quality on service to save on cost? - ANS-What
Price
-there may be a range of options between 100% make and 100% buy
- may be a useful area for testing and learning without having to make full commitment to make
or buy
-Ex: a trade-off in the automotive industry is the supplier who takes over design responsibility for
a component from the car manufacturer. In maintenance, some types of servicing can be done
by the purchaser of the equipment, other types by the equipment manufacturer - ANS-The Gray
Zone
-trend is to deliver smaller quantities as needed, as opposed to the former stance of buying
large quantities at a time to ensure better prices
-Can be the most serious of the supply chain risk
because the loss of your reputation can wipe out a company
-Think Image and brand recognition
-You want people to positively associate with your brand name
Ex. Volkswagon recent scandal - ANS-Reputational Risk
-Clerical and tactical
-Availability of supply and cost management - ANS-Early 1900's supply chain
-confidence in a supplier's ability to deliver a good or service that will satisfy the customer's
needs
-Achieved through interactive relationships between customer and supplier, aims at ensuring
that product's fit to the customer's requirements with little or no adjustment or inspection -
ANS-Assurance of supply chain
-covers a variety of items
-used to buy maintenance repair and operations (MRO) items in production line requirements
used in volume and purchased repetitively over a period of months - ANS-Blanket purchase
orders
-high level of detail
-certifications
-supplier and subcontractors follow same guidelines
-ensures quality
-covers everything, extensive but effective to lock down good suppliers - ANS-Delphi Supplier
Guidelines
-internal failure costs (hidden factory)
-external failure
-prevention cost
-appraisal cost - ANS-Cost of Quality traditional 4 elements
-Invoice is a plain against the buying department
(document showing the order is placed and goods or services will be provided)
-progress payments are for large contracts spread over a long time i.e. construction
-regular payments are appropriate for ongoing services such as building maintenance or food
service - ANS-8)Invoice clearing and payment
-lowest price
-specification-driven
, -trouble avoidance
-little sharing of info
-short term, reacts to market - ANS-direct relationships
-someone in the org. recognizes that there is a need for something
-what, how much, when its needed - ANS-1)Recognition of need
-Specs. purchaser must do exactly what the internal customer wants
-description must be specific and clear to avoid confusion - ANS-2)description of need
-Strategic Orientation
-Global Supply Chains
-Security, Sustainability, Risk Management - ANS-Supply Chain Now
-suppliers bring employees and materials and work under same roof (VW facility)
-each supplier has their own station with their own materials and employees in the facility
Downside:
-VW's supplier shoulder more direct costs and risk
-Assembly-line workers are paid roughly a third as much as auto workers in San Paulo
Upsides:
-higher quality
-less responsibility and direct cost for VW
-cheaper labor - ANS-Volkswagon Brazil
-The main reason for strategy is to make sure everyone is speaking the same language
-both operational and strategic level - ANS-Why
-the trade-off may be whether the organization is willing to pay premium price for exceptional
service?
- or is the customer willing to sacrifice some quality on service to save on cost? - ANS-What
Price
-there may be a range of options between 100% make and 100% buy
- may be a useful area for testing and learning without having to make full commitment to make
or buy
-Ex: a trade-off in the automotive industry is the supplier who takes over design responsibility for
a component from the car manufacturer. In maintenance, some types of servicing can be done
by the purchaser of the equipment, other types by the equipment manufacturer - ANS-The Gray
Zone
-trend is to deliver smaller quantities as needed, as opposed to the former stance of buying
large quantities at a time to ensure better prices
