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DRIVE
WINTER 2015
PROGRAM/SEMESTER
MBADS (SEM 3/SEM 5) MBAFLEX/ MBAN2 (SEM 3) PGDOMN (SEM 1)
SUBJECT
CODE & NAME OM0012 – SUPPLY CHAIN MANAGEMENT
BK
ID-B1542
CREDITS-4
MARKS-60
Q1
What are the different factors affecting transportation decisions? (unit 2)
(Description/outline
of different following factors and its sub factors in students own words
Carriers
·
Vehicle related cost
·
Fixed operating cost
·
Trip related cost
·
Quantity related cost
·
Overhead cost
Customers
·
Transportation cost
·
Inventory cost
·
Facility cost
·
Processing cost
·
Service level and fast delivery)
10 marks
Answer.
It is important to research the
local market to learn the different types of services provided by different
carriers, and then select the carrier that provides the best service.
This factor can be further
divided as follows:
Vehicle related cost
It is the cost involved in
maintaining the vehicle
Q2
Write short notes on risk pooling (unit 4)
(Description
of risk pooling, importance of risk pooling in SCM,
Listing
and summarization (along with suitable examples for each) of four, types of
risk pooling, Location pooling, Product pooling:
·
Lead time pooling
·
Capacity pooling) 10 marks
Answer.
Risk
pooling and its types
Risk pool is a term used in risk
management, mostly in insurance companies. Under this system, insurance
companies come together to form a pool, which can provide protection to
insurance companies against catastrophic risks such as floods, earthquakes,
etc.
There are several types of
3
Read the following case study and answer the questions given the end of the
case study Best Supplier Relationship Management: Jaguar Land Rover and Gobel
& Partner Jaguar Land Rover production line 8 October 2013 | CIPS Supply
Management Awards 2013 “Jaguar Land Rover (JLR) transformed its position in
customer satisfaction surveys and enhanced the quality of its products through
an innovative partnership with a key supplier.
By
re-evaluating the way it deals with quality control and suppliers, Jaguar took
top spot in the 2012 JD Power Survey for customer satisfaction and Land Rover
raced up the chart. In 2008, the survey put Jaguar at nine and Land Rover at 34
for quality, described by JLR as “clearly an unsatisfactory situation” for a
premium brand and stated that “something had to change”. Component quality was
identified as the key issue – for some suppliers the proportion of rejected
parts was as high as 65 per cent – and some finished vehicles were being put
into ‘containment’ due to faulty components. This had knock-on effects
including delayed customer shipments, production line stoppages that cost
£2,000 per minute and the risk that faulty parts could make their way into
completed vehicles. At the time, JLR was working with 16 different suppliers
across three factories to undertake parts rework and containment, resulting in
differing quality regimes and an inability to share data across the company. As
a result, there was no single view of any given supplier’s quality history,
which made preventative action impossible. A new
director
of quality was appointed who launched a review of quality across the supply
chain that identified potential improvements that could be made to the
inspection of incoming components from suppliers. The Inbound Materials Project
was established and the 16 suppliers dealing with quality control were reduced
to one – Gobel & Partner (G&P) – who saw it as an opportunity to
introduce innovations and boost investment in its Qtrak quality management
system, which totals £2 million to date.
This
evolved into a partnership between JLR and G&P. Both realised that
prevention was better than cure, and through Qtrak they could identify the
component suppliers causing the most problems. Those with a recurrent history
of reject parts were subject to a more rigorous inspection regime. G&P’s
aim is to ensure no faulty part ever arrives at JLR production facilities and
they now work on the premises of high-risk suppliers to review quality
processes. The firm is also working at JLR’s new plant in China to ensure the
right quality approach is in place from the beginning.
Over
six years, the relationship between the firms has evolved from a traditional
adversarial situation, where G&P were treated as one of a number of
commodity suppliers, to one where the two are working to the same goal of
“bringing premium quality to premium brands”.Wolfram Leidtke, JLR board quality
director, said: “JLR is a premium brand and accordingly needs to have premium
quality vehicles. Procurement has aligned with this objective. G&P has been
able to transfer their global knowledge and work with JLR to develop a new
approach to incoming material quality and the results are starting to speak for
themselves.’ ”
(Illustrate
the role quality played as criteria in JLR choosing its supplier Gobel &
Partner. Explain the importance of Gobel & Partner in the supply chain(unit
6)
A
Students should illustrate based on:
·
How critical is component quality
to JLR
·
What were the effects of bad
quality
·
What were the issues JLR had to
tackle to working with 16 suppliers
·
The steps taken by JLR to improve
quality
Importance
of the supplier) 10 marks
Answer.
The
role quality played as criteria in JLR choosing its supplier Gobel &
Partner
·
Quality
plays a very important role as criteria In JLR choosing its supplier. It is
critical component.
·
As
we see in the case study JLR was working with 16 different suppliers across
three factories to undertake parts rework and containment, resulting in
differing quality
·
Q4
“MTR Foods, the Bangalore-based food processing company, is planning to utilise
the services of a third party manufacturer for the first time. The contracted
plant in Mathura for producing vermicelli is expected to give it a push in the
northern and eastern markets where it is trying to expand its presence. The
company is also planning a capacity expansion in spices.
MTR
has nine plants in Bommasandra Industrial Area in Bangalore which caters to its
product categories like spices and masala, beverages, vermicelli and frozen
food. The company has so far produced its brands inhouse. ‘The plant in Mathura
would help us supply to the north and eastern parts of the country. It would
help us source wheat faster and also trim freight costs by 6-7 per cent,’ said Sanjay
Sharma, chief executive officer, MTR Foods.”
Which
according to you may then be distribution strategy used by MTR? Justify your answer
(unit 8)
·
(Explanation on the facts fitting
the strategy
·
Identification of the strategy
·
Rationale behind choosing the
strategy
·
Conclusion) 10 marks
Answer.
Explanation
on the facts fitting the strategy
MTR
Foods Ltd. is one of India's leading purveyors of packaged foods.The company is one of only a few
that sell packaged food nationwide. It pushed into more
Q5
Explain any four direct benefits of outsourcing with examples. (unit 10) A any
four of the following benefits(reason why this is a benefit , description of
the benefit and example)
·
Focusing on core competency
·
Reducing the expenses of manufacturing
and logistics services
·
Reducing the head count of hourly
employees and management
·
Improving the accuracy
·
Improving flexibility and wider
range of services
·
Getting access to global networks
and better technology
·
Improving services
·
Improving quality
·
Reducing capital investment and increasing
cash flow
10
(2.5 marks each) 10 marks
Answer.
Direct benefits of outsourcing in
detail are as :
Focusing on core
competency – When a company outsources manufacturing, logistics, or
both, then there is no requirement of resources to manufacture the product, to
store the product or to deliver it to the customers. The company can utilise
these resources for its core functions. For
Q6
Describe the supplier integration approach.(unit 12) Explanation of the stages
of supplier integration with suitable examples
·
None
·
White box
·
Gray box
·
Black box
10
(2.5 marks each) 10 marks
Answer.
Supplier integration at any stage
in the development process happens to be advantageous. But survey results have
revealed that suppliers integrated Supplier integration at any stage in the
development process happens to be advantageous. But survey results have
revealed that
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