INDIAN SCHOOL OF MANAGEMENT

Sub: Supply Chain Management

Max Marks: 100

Masters Program in Business Administration (MBA S!e"ia#i$ations% & Su!!#' C(ain Management Note% & So#)e an' * +uestions A## "ase "arries e,ua# mar-s

INDIAN SCHOOL OF MANAGEMENT

Sub: Supply Chain Management

Max Marks: 100

+./. 0ead t(e 1o##o2ing "ase and ans2er t(e ,uestions gi)en at t(e end. Passenger Inter"(ange In most major cities the amount of congestion on the roads is increasing. Some of this is due to commercial ehicles! but by far the majority is due to pri ate cars. "here are se eral #ays of controlling the number of ehicles using certain areas. "hese include prohibition of cars in pedestrian areas! restricted entry! limits on parking! traffic calming schemes! and so on. $ relati ely ne# approach has road%user charging! #here cars pay fee to use a particular length of road! #ith the fee possibly changing #ith pre ailing traffic conditions. &enerally! the most effecti e approach to reducing traffic congestion is to impro e public transport. "hese ser ices must be attracti e to people #ho judge them by a range of factors! such as the comfort of seating! amount of cro#ding! handling of luggage! a ailability of food! toilets! safety! and facilities in #aiting areas. $ ailability of escalators! lifts! and so on. 'o#e er! the dominant considerations are cost! time and reliability. (uses are often the most flexible form of public transport! #ith the time for a journey consisting of four parts: joining time! #hich is the time needed to get to a bus stop #aiting time! until the bus arri es journey time! to carnally do the tra elling )ea ing time! to get from the bus to the final destination.

"ransport policies can reduce these times by combination of fre*uent ser ices! #ell%planned routes! and bus priority schemes. "hen con enient journeys unsubsidi+ed tra el makes buses an attracti e alternati e. ,ne problem! ho#e er! is that people ha e to change buses! or transfer bet#een buses and other types of transport! including cars! planes! trains! ferries and trams. "hen there are additional times for mo ing bet#een one type of transport and the next! and #aiting for the next part of the ser ice. "hese can be minimi+ed by an integrated transport system #ith fre*uent! connecting ser ices at -passenger interchanges-. .assenger interchanges seem a good idea! but they are not uni ersally popular. Most people prefer a straight%through journey bet#een t#o points! e en if this is less fre*uent than an integrated ser ice #ith interchanges. "he reason is probably because there are more opportunities for things to go #rong! and experiences suggests that e en starting a journey does not guarantee that it #ill successfully finish. In practice! most major cities such as )ondon and .aris ha e successful interchanges! and they are spreading into smaller to#ns! such as Montpellier in /rance. /or the ten years up to 0001! tube population of Montpellier gre# by more than 1.2 per cent! and it mo ed from

INDIAN SCHOOL OF MANAGEMENT

Sub: Supply Chain Management

Max Marks: 100

being the 00nd largest to#n in /rance to the eighth largest. It has good transport links #ith the porti of Sete! an airport! inland #ater#ays! main road net#orks and a fast rail link to .aris. In 0001! public transport #as enhanced #ith a 13 kilometer tramline connecting major sites in the to#n centre #ith other transport links. $t the same time! buses #ere rerouted to connect to the tram! cycling #as encouraged for short distances! park%and%ride ser ices #ere impro ed! and journeys #ere generally made easier! $s a result! there is been an increase in use of public transport! a reduction in the number of cars in the to#n centre! and impro ed air *uality. 4hen the tram opened in 0000! a third of the population tried it in the first #eekend! and it carried a million people #ithin se en #eeks of opening. In 0003! a second tramline #ill add 15 kilometers to the routes. +uestions% (a Are t(e !ro3#ems o1 mo)ing !eo!#e signi1i"ant#' di11erent 1rom t(e !ro3#ems o1 mo)ing goods or Ser)i"es4 (3 5(at are t(e 3ene1its o1 !u3#i" trans!ort o)er !ri)ate trans!ort4 S(ou#d !u3#i" trans!ort 3e en"ouraged and6 i1 so6 (o24 (" 5(at are t(e 3ene1its o1 integrated !u3#i" trans!ort s'stems4

INDIAN SCHOOL OF MANAGEMENT

Sub: Supply Chain Management

Max Marks: 100

+ 7. 0ead t(e 1o##o2ing "ase and ans2er t(e ,uestions gi)en at t(e end. 6o+mo! the online con enience store to shut do#n 7e# 8ork%based 6o+mo! the 9%year%old company announced that it #ould stop deli ery ser ice in all nine cities it operates. 7e# 8ork%based 6o+mo! #hich dispatched legions of orange%clad deli erymen to cart goods to customers- doors! is the latest dot.com dream to e aporate in the market do#nturn. $ma+on com! enture capital firm /latiron .artners and coffee giant Starbucks #ere among the in estors in 6o+mo. 6o+mo said in :ecember that in estors promised a total of ;90 million in pri ate funding. (ut last month the company learned that an in estor had backed out of a ;< million commitment. 6o+mo executi es had been #orking on a merger deal #ith )os $ngeles%based .:=uick! another online grocer! sources said. "he deal collapsed #hen funding that #as promised to .:=uick did not materiali+e. Sources said 6o+mo still has money but decided to close no# and li*uidate to ensure that employees ould recei e a se erance package. >ust last month! 6o+mo Chief ?xecuti e &erry (urdo #as upbeat about 6o+mo-s future! saying he #as looking to steer 6o+mo a#ay from its Internet%only business model and to#ard a @clicks and bricks@ approach. (ut some analysts say 6o+mo-s business model only made sense in the context of a densely packed city such as 7e# 8ork. Aern 6eenan! a financial analyst #ith 6eenan Aision! said the ser ice had a chance to #ork in only a fe# other cities around the #orld! such as )ondon! Stockholm or .aris. @"his seemed like a dumb idea from the beginning!@ 6eenan said. @"his gre# out of a 7e# 8ork City frame of mind and it simply didn-t translate.@ 6o+mo #as started by a pair of t#enty%something former college roommates. "hey got the idea for the company on a night #hen they cra ed ideos and snacks and #ished a business existed that #ould deli er it to them. 6o+mo offered free deli ery and charged competiti e prices #hen it launched in 7e# 8ork. "hough customers lo ed the ser ice! the costs of deli ery #ere high. $fter co%founder and former Chief ?xecuti e >oseph .ark stepped do#n! (urdo slashed 6o+mo-s o erhead! instituted a deli ery fee and o ersa# se eral rounds of layoffs. "he company also closed operations in San :iego and 'ouston. (urdo said last month that profitability #as not far a#ay. "he company had reached a milestone last :ecember #hen it reported profits at one of its operations for the first time. 6o+mo later sa# t#o more operations reach profitability as a result of brisk holiday business. ,nline deli ery companies ha e been among the most ra aged by the Internet shakeout. 6o+mo-s ri al in 7e# 8ork! Brbanfetch! shuttered its consumer operations last fall. ,nline grocers such as 4eb an and .eapod ha e also struggled! and smaller operations such as Streamline.com and Shop)ink.com ha e dosed do#n. .eapod #as days a#ay from closing last year #hen :utch grocer Coyal $hold agreed to take a majority stake.

INDIAN SCHOOL OF MANAGEMENT

Sub: Supply Chain Management

Max Marks: 100

/rom the ery beginning! supply chain management #as to be a core competency of 6o+mo. "he promising dot.com #ould deli er your order e erything from the latest ideo to electronics e*uipment in less than an hour. "he technology #as superior! the employees #ere enthusiastic! the customers #ere satisfied. (ut e entually! 6o+mo ran out of time and money. +uestions% (a 5(at6 in 'our o!inion6 is t(e ma8or reason 1or t(e 1ai#ure o1 9o$mo4 (3 Do 'ou t(in- t(at 9o$mo !romised 2(at its su!!#' "(ain "ou#d not 3ear4 5(at "ou#d (a)e !re)ented its s(ut&do2n4

INDIAN SCHOOL OF MANAGEMENT

Sub: Supply Chain Management

Max Marks: 100

+ : 0ead t(e 1o##o2ing "ase and ans2er t(e ,uestions gi)en at t(e end. Case Study: $() is one of the leading .roducers of medical instrumentation. It manufactures e*uipment for use in 'ospital. "his large! high tech machines cost significant amount. ?ach machine is tailored to hospital re*uirements and installed in a specially prepared space. "hese units are manufactured in $()Ds plant in B6 and shipped for installation to hospitals all around the #orld. $()Ds Supply chain manager has passion for integrated supply chain management. 'e and his team al#ays ha e multiple impro ement projects under#ay. "heir goals up are: (ring the order to deli ery cycle time do#n belo# three #eeks. 4hile impro ing *uality and lo#er cost. In ol ing product designer to change the design for easier manufacturing! installation and customi+ation. Ceducing supplier base so that 00 key supplier pro ide about 50 percent of supplier olume. ,btaining the same performance from the internal supplier that is expected of external. In ol ing suppliers in e aluation! design and analysis process. Bsing simple order transaction based on electronic media. ?nhance Customer Satisfaction. Measures monitor and impro e the same systematically.

Currently $() is using a state of the art ?C. soft#are couple #ith SCM functions. It has also de eloped information system for their suppliers. $() has also lined up #ith express#ay! a leading logistic company by #hich the deli ery times are monitored continuously. $() belie es in deli ering a perfect order. +uestions% a 3 " 5(at is ABLs strateg' 1or good su!!#' "(ain Management4 Gi)e an' t2o goa#s set u! 3' ABL and #ist t(eir im!#i"ations on ABL. 5(at is t(e so1t2are 3eing use at ABL4 A!!#' t(at so1t2are to t(eoreti"a# used and e;!#ain.

INDIAN SCHOOL OF MANAGEMENT

Sub: Supply Chain Management

Max Marks: 100

5(at is !er1e"t order in t(is "ase4

+ < 0ead t(e 1o##o2ing "ase and ans2er t(e ,uestions gi)en at t(e end. Case Study: /arm ?*uipment manufactured limited E/?M)F! established in 15<3. Is one of the #orldDs leading producers of agriculture e*uipmentsG /?M)Ds latest efforts on supplier relationship ha e their origins in the plant redefining its business strategies during the 1550s. $s a result of their redefinition! the factory #as focused on sheet steel stampings! #eddings! assembly and paint as core manufacturing process. 4ith this strategy purchased passed costs began to represent an increasing percentage of the /?MSDs manufactured costs. "his laid the first corner stone in /?M)Ds re%examination of supplier relations. "he second corner stone fell in place #hen! because of capacity constraints! steel stamping dept #as unable to fill the factoryDs total stamping re*uirements and this led to the de elopment of external stamping sources. 7o# the third corner stone #as laid: :iscussion began to arise as to #hether the internal stamping dept should be treated the same as external stamping suppliers #ith the implication that the internal stamping dept should compete for business and recei e the same le el of support at any other outside source. "ypically /?MCDs suppliers are small and medium si+ed manufacturers. Increasingly! such companies ha e been under industry #ide competiti e pressure to reduce o erhead and trim costs. Many of them ha e reduced their employees to minimum necessary to run daily operations. .lanning and implementation of ne# manufacturing strategies is beyond the capabilities of these companies because of lack of manufacturing strategies is beyond the capabilities of these companies because of lack of expertise. "his reali+ation led to the fourth and final corner stone. $ igorous debate began on H#hy donDt strategic outside sources recei e the le el of support pro ided to /?M)Ds internal sourcesIG In 1553! Mr. sona#ala! &M%scm at /?MCDs head*uarters! initiated a pilot supplies de elopment programme. "he aim #as to resol e the debate ia a pilot experiment to support 1< suppliers. $n agreement #as forged #ith the pilot suppliers that #ould entitle /?M) to share in any sa ings obtained from the impro ements o er next 11 months. /?M)Ds engineers #ere sent out to #ork #ith the suppliers #ho participated in the project. "he result sho#ed price reduction that resulted for /?M) enabled it to more than recoup the in estment it made.

INDIAN SCHOOL OF MANAGEMENT

Sub: Supply Chain Management

Max Marks: 100

(ased on these results! in 0001! the /?M) #orks formed a dedicated supplier de elopment group on pro iding resource to assist strategic supplies in implementing SCM. Cecent impro ement efforts ha e targeted lead J time reduction in supplierDs factories. In addition to pro iding personnel to #ork at the supplierDs facilities! /?M) has pro ided training and education for supplierDs staff. $s a result of these efforts! /?M) has seen reduction of more than 50 K in lead time at some supplierDs and resulting price reductions to /?M) Eafter pro iding suppliers shareF ha e been as much as 13 K +uestions% a 5(at s(ou#d 3e t(e 3asis 1or s(aring 3ene1its 3et2een FEML and its su!!#iers4 =Managing #ead time is more im!ortant t(an redu"ing t(e in)entor' in a su!!#' C(ain>. De1end t(e statement in t(e "onte;t o1 FEML. E;!#ain t(e 3rie1 !er1orman"e indi"ators at FEML and its su!!#iers end. List at #east 1our 1a"tors on 2(i"( su!!#iers o1 FEML need to 3e e)a#uated.

" d

+ *. ?T(ere are man' !ossi3#e stru"tures 1or su!!#' "(ain6 3ut t(e sim!#est )ie2 (as materia#s "on)erging on an organi$ation t(roug( tiers o1 su!!#iers and !rodu"ts di)erging t(roug( tiers o1 "ustomers.? E#a3orate. + @. E#a3orate "#ear#' t(e meaning o1 ?5or#d&C#ass? in 5or#d&C#ass Su!!#' C(ain Management (5CSCM . 5(at are t(e 1eatures o1 5or#d&C#ass Com!anies4 Gi)e 'our ans2er (ig(#ig(ting di11erent "(ara"teristi"s !ertaining to management #e)e#6 ,ua#it' "ontro#6 o!erationsA!rodu"tion and te"(no#ogi"a# ad)an"es. + B. 5(at are t(e essentia# di11eren"es in t(e Su!!#' C(ain Management o1 Produ"ts )s. Ser)i"es4 Dis"uss t(e a!!#i"ation o1 Su!!#' C(ain Management !rin"i!#es in Finan"ia# Ser)i"es.