The company previously manufactured gears and shafts for the transmissions they produced. They will now manufacture not only the gears and shafts that they have always produced but the re-organization will involve the introduction of a significant large number of parts not previously produced at the Manchester plant. The company will now move to a Cell Manufacturing Process Plant. The first step ABC took in this regard was the installation of monetary software. After that exemplary action several steps in the same track were taken gradually with more advance software modules as per their requirements and the progression is still going on. The main reason for the success of ABC is their implementation of the advance techniques of pricing and distribution in their business. A thorough analysis was transpiring for the re-engineering of obligatory business process and the preliminary efforts intense on essentials up to five years hallucination. But prior to endeavor of re-engineering processes by their trade allies, ABC, initially, wanted to improve their internal systems. To congregate the supply chain necessities ABC’s management decided to come up with two way solution, first they use radio frequency based data capture to support the on-line communication runs inside the company and then use the bar coding facility, to make it more authentic at their prime retail customers side. For combine podium of B2B communication, ABC and its trade cohorts were selected the Microsoft's Biztalk. To implement this facility, external experts were brought in with the stern idea of in-house development to stay autonomous on their leaving.
1. Identify the different strategies you will employ to each of the 4 categories of suppliers and material/equipment purchased. Discuss the body of knowledge that surrounds supply chain strategies. (15%)
A. Procurement of a New Plant Equipment
The purchasing of new plant equipment requires selection of qualified suppliers and preparation and evaluation of bids. Since the product is new and the supplier not pre-qualified in most of the cases, hence the due diligence step in the process has to be carried out. This process is timely and energy consuming since loads of insight has to be put into the process before ending with any commitment that might affect the long run operations of the company.
When procuring new plant equipment, the suppliers with relevant quality and technology should be selected. When the asset operator generates a purchase requisition and the maintenance management department in the firm the role of all support departments comes into play (Leeser)i. The process is very important because it is a capital expenditure and has huge and long run impacts on the firm's operations. In cases of weak or loose attitude in the process consequences such as missed milestones in scheduling, a poor equipment not attributed to the specifications required, and poor supplier relationships can doom to the cost overruns and future problems occurring in the production process.
When procuring a new plant equipment, the engineers mentions his or her needs and may ask potential vendors for the correct equipment to suit their needs. All specifications are then quoted in the definition document, which covers the throughput needs, material compatibility requirements, temperature variability and extremes, control mechanism, compatibility with the overall process (Greer, S.)ii. Once all specifications are put in place, tender documents are invited to choose the competitive supplier through an organized process. Once the process is all settled, purchase agreement is generated. It is important to check the post implementation quality and then release the