Improving competitive advantage to the first‐tier echelon of automotive supply chains is enabled via the requirement for transparent information flows in both the…
Improving competitive advantage to the first‐tier echelon of automotive supply chains is enabled via the requirement for transparent information flows in both the order‐generating and order fulfilment channels. However, four generic areas are identified which are barriers to improving performance. These are cultural (is it in our interests?); organisational (does the supply chain have the right structure?); technological (what common format and standards are required?); and financial (who pays the bill?). How these barriers may be overcome to the benefit of all “players” in the chain is discussed, plus benchmarking of current best practice. Exemplar supply chains are identified as noteworthy for the emergence of supply chain “product champions”. These have the vision, authority, and drive to implement new systems and set in place mechanisms to minimise regression to old working practices.
Our total cycle time (TCT) compression strategy encompasses the whole system in the supply chain from consumer demand to customer satisfaction. TCT has two major…
Our total cycle time (TCT) compression strategy encompasses the whole system in the supply chain from consumer demand to customer satisfaction. TCT has two major components that are essential to meeting customer demand: information flow and material flow. Both are necessities and together make up the total supply chain lead‐time; the information activates the material pipeline. Therefore to optimise a time compression strategy TCT must include both the information and material flows. We show in the paper that a very effective way of achieving TCT is via access to EPoS data by all “players” in the supply chain. The tremendous benefits exhibited by TCT compression within the supply chain can be described as “squaring the dynamic response circle”. Not only are the stock dynamic responses improved via time compression, but the capacity dynamics are also radically improved. Therefore TCT compression avoids the dilemma frequently faced by companies when implementing change of having to trade off customer service level against capacity utilisation. Our results are verified using a simulation model of a common real‐world supply chain.
Notes the importance of new internal supply chains being properly interfaced with the marketplace. Suggests that the appropriate way forward is to design and implement a “leagile supply chain”. Whereas leanness may be achieved by eliminating non‐value added time, agility usually requires the additional reduction of value‐added time via production technology breakthroughs. Demonstrates how the “lean” and “agile” paradigms may be integrated. This requires evaluation of the total performance metric and development of a route map for integrating lean production and agile supply in the total chain. Presents results achieved in a re‐engineered real world supply chain serving the electronic products market.
Traditionally, the decoupling point methodology has been associated with the material flow pipeline. However, to maximize improvement in supply chain dynamics, information…
Traditionally, the decoupling point methodology has been associated with the material flow pipeline. However, to maximize improvement in supply chain dynamics, information flow is equally important. Many of the problems exhibited in the material flow pipeline are the result of the distortion of marketplace sales information as it is transferred upstream through the supply chain. This research expands on the traditional material decoupling point methodology and establishes the role of an information decoupling point within the supply chain. The authors demonstrate the business opportunities generated by first recognizing the existence of the supply chain information decoupling point and then learning how to utilize it to gain strategic advantage. In order to make sensible planning and delivery decisions, a business must be able to separate out contingency from real orders as they move upstream from the marketplace. It is the basis for supply chains moving towards continuous flow and away from point‐to‐point movements and ultimately, where appropriate, to holistic control.
The use of pipeline feedback to ensure good control of material flow systems has been developed over the years on a pragmatic basis. More recently, the mechanism by which…
The use of pipeline feedback to ensure good control of material flow systems has been developed over the years on a pragmatic basis. More recently, the mechanism by which the improved control is achieved has been the subject of theoretical analysis. In turn, this has led to recommendations for good parameter settings which may be used with confidence when applied to a particular generic decision support system (DDS) known as the “to make” model. One consequence of utilizing pipeline feedback is the enhanced damping capability of this system. In our experience, many supply chains may be represented by the coupling together of a series of To‐Make models. In this paper, we show that the use of supply chain feedback within each echelon greatly reduces the order amplification as it proceeds upstream from the market place. Using as an example a model of the Beer Game Supply chain, it is concluded that demand amplification is readily reduced by a factor of 2:1.
The automotive industry acts as a barometer and flagship of the national economy. First tier suppliers are essential enablers in the success of the sector. Here we…
The automotive industry acts as a barometer and flagship of the national economy. First tier suppliers are essential enablers in the success of the sector. Here we identify present practices concerning information flow as perceived by typical first tier suppliers. Observations are made via “top pain analysis” facing an individual supplier and “quick scan analysis” on a range of automotive value streams. Major information flow weaknesses encountered in real‐world value streams are highlighted. To conclude, we show the “well‐trodden path” established for performance improvement as enabled in real‐world supply chains.
The purpose of this paper is to outline the application of a Six Sigma (SS) methodology as a means of reducing supply chain risk in aerospace maintenance repair and…
The purpose of this paper is to outline the application of a Six Sigma (SS) methodology as a means of reducing supply chain risk in aerospace maintenance repair and overhaul (MRO) functions. In this contribution the LSS method is used to estimate the economic impact on the selection of the most appropriate maintenance strategy pertaining to aircraft display units (DUs) as well as providing a reduction in turn round time (TRT) variation of the DUs.
The paper develops a SS approach which includes the development of the Monte Carlo technique as a mechanism to identify the most cost effective MRO strategy whilst simultaneously reducing variability in TRT servicing of the DUs. This application enabled the authors to obtain further proof of concept and also to apply a number of focused quality improvement techniques to systematically reduce TRT variation.
An effective development of the SS approach is proposed and the effectiveness of the method is subsequently evaluated highlighting the benefits to the host organisation. The SS methodology demonstrates that it is possible to identify the most cost effective MRO strategy and thus suggests a suitable DU replacement policy which in turn allows engineers to develop the appropriate maintenance schedules for the company.
The design, development and implementation of this SS methodology offers an approach to achieving a more cost effective MRO strategy whilst reducing TRT variability which can lead to greater predictability of operations which in turn enables the company to effectively synchronise supply with demand. The paper offers practicing maintenance managers and engineers a practical example for increasing productive efficiency and output.
This SS strategy contributes to the existing knowledge base on maintenance systems and subsequently disseminates this information in order to provide impetus, guidance and support towards increasing the development companies in an attempt to move the UK manufacturing sector towards world class manufacturing performance.