MMFD 5023

SUPPLY CHAIN
MANAGEMENT
INSTRUCTIONS
• DESIGN AN OUTLINE SUPPLY CHAIN FOR:
(AUTOMOTIVE INDUSTRY)
• IDENTIFY AND DRAW THE SUPPLY CHAIN STRUCTURE
• WHAT ARE THE MAJOR MANAGEMENT ISSUES?
• HOW ARE THESE ISSUES DEALT WITH?
 OUTLINE FOR THIS SLIDE
INTRODUCTIONS INDUSTRIAL OF CHOICE MANAGEMENT ISSUES
AUTOMOTIVE
01 04

DESIGN SUPPLY CHAIN SOLUTIONS ISSUES

MANAGEMENT(SCM) FOR
AUTOMOTIVE INDUSTRY 02 05

DRIVERS FRAMEWORK FOR REFERENCES

AUTOMOTIVE INDUSTRY
03 06
INTRODUCTIONS

The automotive industry is a wide range of companies and organizations

involved in the design, development, manufacturing, marketing,
and selling of motor vehicles. It is one of the world's most important economic
sectors by revenue. The automotive industry does not include industries
dedicated to the maintenance of automobiles following delivery to the end-user,
such as automotive repair shops and motor fuel filling stations. The
term automotive was created from Greek autos (self), and Latin motivus (of
motion) to represent any form of self-powered vehicle. This term was proposed
by SAE member Elmer Sperry.
AUTOMOTIVE TIMELINE

AUTOMOTIVE START U.S. OVERTAKEN JAPAN 1ST

The automotive industry
began with hundreds of
manufactures that
pioneered the horseless
carriage. For many
1890
The United States was
overtaken by Japan
Meanwhile PROTON
(Perusahaan Otomobil
Japan narrowly passed
the U.S. in production
and held this rank until
2009, when China took
the top spot with 13.8

1980

2006
Nasional Sdn. Bhd) was
decades, The United established on 7 may
million units.
States led the world in 1983 with paid up
total automobile capital of 150 million
production. ringgit.
1929

1994

WHO LEAD
Before the Great
Depression, the world
had 32,028,500
automobiles in use, and
the U.S. automotive
industry produced over
90% of them. At that
time the U.S. had one
car per 4.87% person.
After world war 2, the
U.S. produced about
75% of world’s auto
2 4
production.
2012
JAPAN LEAD CHINA 1ST
Japan become world’s With 19.3 million units
leader in automotive manufacture , China
industry almost double the U.S.
production, with 10.3
million units, while
Japan was in third place
with 9.9 million units.
6
HOW THE AUTOMOBILE BE PRODUCED

http://www.team-bhp.com/forum/technical-stuff/115924-how-cars-made-materials.html
SAMPLE STRUCTURE
SCM AUTOMOTIVE

©2002 McGraw-Hill/Irwin
DESIGN(SCM) AUTOMOTIVE

INOVATION & PRODUCT LIFECYCLE

SUPPLY CHAIN MANAGEMENT
MANAGEMENT

SALES &
ODER
PLANING
QUALITY
MAINTENANCE
MARKETING
MANAGEMENT MANAGEMENT

SOURCING &
PURCHASING SUPPLY CHAIN OPERATION CUSTOMER

SUPPLIER PRODUCTION WARE HOUSE LOGISTICS DISTRIBUTOR SERVICE &

SPARE PARTS
MANAGEMENT

FINANCE & CONTROLING

DRIVERS FRAMEWORK
FOR AUTOMOTIVE
INDUSTRY
Efficiency Responsiveness
Supply chain structure

Inventory Transportation Facilities Information Sourcing Pricing

Drivers
Drivers of Supply Chain Performance
SCOR (SUPPLY CHAIN
OPERATION REFERENCE
MODEL)
SCOR is Based on Five Distinct Management processes
Plan

Plan Plan

Make
Source Source Make Deliver Source Deliver Source Make Deliver Deliver

Return Return Return

Return Return Return

Return Return
Suppliers’ Supplier Customer Customer’s
Supplier Customer
Internal or External Your Company Internal or External

. The integrated processes of Plan, Source, Make, Deliver and Return

. Spanning your suppliers, supplier to your customers and customers
. Aligned with Operational Strategy, Material, Work & Information Flows.
PROCESS LEVEL OF SCOR
Model

SCOR Contains Three Level Of Process Detail

Level Application Examples
Level 1 processes used to describe the scope and Plan, Source, Make, Deliver, and Return
1 high level configuration of a supply chain. SCOR
Applicable Across Industries

has five level 1 processes

level 2 processes differentiate the stratageies of theExamples
level 1 processes. Both the level 2 processes * Make-to-Sock
In Scope

2
themselves as well as theier positioning in the supply*Make-to-Oder
chain determine the supply chain strategy. SCOR *Engineer-to-Oder
Level 3 processes describe the steps performed to Example Make-to-Oder level 3 processes:
execute the level 2 processes. The sequence in *Schedule Production Activities
which these processes are executed influences the *Issue Product
3 perfomance of the level 2 processes and the overall *Package
supply chain. SCOR contains 185 level 3 proceses *Stage
*Dispose Waste
*Release Product
evel 4 processes describe the indusry specific Example Issue Product level 4 Proceses for
Not In Scope
Industry Specific

activites requied to perform level 3 processes. Level the electronics industry

4 processes describe the detailed implementatios of *Print Pick List
4 a proceses SCOR oe not detail leel 4 processes. *Pick Item (Bin)
Organizations and industries develop their own level *Deliver Bin to Producton Cell
4 processes. *Return Empty Bins t Pick Area
*Close Pick Oder
SUPPLY CHAIN PLANING
SUPPLY CHAIN PLANING -
STRATEGIC

At this level, you and your

partners make joint decision on
strategic issues such as he
following examples:

• Production capacities
• Product design
• Production facility and fulfilment network
expansion
• Portfolio joint marketing
• Pricing plans
SUPPLY CHAIN PLANING -
TACTICAL

This level involves sharing information with your

partners on topic as the following:

• Forecasts
• Production and transportation plan and capacities
• Bills of material (BOMs)
• Orders and ordering
• Product descriptions
• Prices and promotions
• Inventory
• Allocations
• Product and material availability
• Service level
• Contract terms, such as supply capacity, inventory,
and service
SUPPLY CHAIN PLANING -
EXCECUTION

At this level, you and your partners engage in an integrated

exchange of key transactional data such as the following
information:

• Purchase orders
• Production/work orders
• Sales orders
• POS information
• Invoices
• Credit notes
• Debit notes
• Payments
CONCLUSION

Base on this model and role, the automotive industry goes efficiency.
Why?, because supply chain efficiency is the inverse of the cost of
making and delivering product to the customer, wherein this industry
have the strategic planning must consider three factor. First from
beginning have tactical planning, operation planning and lastly
planning execution. This planning or design is necessary to obtain the
quality output.
REFFERENCES

Sunil Chopra and Peter Meindl. “Supply Chain

Management : Strategy, Planning, and Operation”,6th
Edition”. Person 2016

David Simchi-Levi, Philip Kaminsky and Edith Simchi-Levi.

“Designing and Managing the Supply Chain” 4th Edition.
Irwin/Mcgraw-Hill 2002

Rahul Guhathakurta, Founder, IndraStra Global. Retrived

https://www.linkedin.com/in/rahulguhathakurta