Humayun

SUPPLY CHAIN MAP – GEAR BOX PARTS MANUFACTURING PLANT (MEL)

SUPPLIER FINANCE / IT RM STORE R&D MANUFACTURING QUALITY ASSURANCE FG WAREHOUSE SALES CUSTOMER

Purchase Dept.

Purchase Dept.

Sales Planning

Sales Planning

Materials Management

Materials Management

PO / WO Purchasing Requirement Production Orders

Product Design

Product Design

Tier 2 Suppliers

Tier 2 Suppliers

Tier 1 Suppliers

Tier 1 Suppliers

Tier 1 Customers

Tier 1 Customers

Machining

Machining

Purchase Req

Purchase Req

Material Flow

Material Flow

BOM

BOM

Grinding

Grinding

Returns

Returns

Returns

Returns

Tier 2 Customers

Tier 2 Customers

Heat Treatment

Heat Treatment

Assembly

Assembly

Packing

Packing

Inventory

Inventory

Inspection

Inspection

Inventory

Inventory

Information Flow

Materials Flow

PURPOSE:

To enhance strategic planning process, ease distribution of information, facilitate supply chain redesign or modification, clarify channel dynamics, provide a common perspective, enhance communication, enable monitoring of supply chain strategy and provide a basis for supply chain analysis.

PROBLEMS IN SCM:

Supply side problem:

* Financial stability of suppliers

* Materials / Service price

* Longer Lead Time

* Credit / Debit Issues

* Uncertainty in Demand / Supplies

* Sharing transportation costs

* Unwillingness to share sensitive information

* Improper record keeping

Internal Manufacturing Issues:

* Replacing outdated technology

* Capacity limitation

* Labour issues

* Reducing Cycle times

* Integrating Information System with Suppliers / Customers

* Availability of Tools and Machine Parts due to old technology

Customer-side problems

* Rapid Changes in demand

* Pressure to reduce prices

* Cancellation of...