Metalcraft Analysis

Objective and Scope

Metalcraft is a tier 1 automotive parts supplier for large automakers. Metalcraft established in 1967. It is an international company that employs over 80,000 individuals in 84 different plants, located in 27 countries around the world. Annually Metalcraft's revenues surpass $12.8 billion and its net income tops $30 million. 80% of their total sale was recorded in North America. Among its operations tasks is the sources of production materials. Traditionally this decision was made simply based upon the cost of the item. This methodology was flawed in that it did not take into account quality, delivery issues and/or the past performance of the company. As a result in 2000, Metalcraft developed a comprehensive scorecard (see Appendix A for sample score card). The adoption of the scorecard led to a 44% decrease in defective parts per million. While this decrease cannot all be attributed to the adoption of the scorecard it can be said that the scorecard had the most significant impact on the decrease.

Currently Metalcraft is faced with a sourcing decision for a rubber vent hose. There are 3 prospective companies (AutoParts Inc, Electroparts and Caltek Inc) that different Metalcraft managers would like to use. There are advantages and disadvantages to using each. Using the scorecard system we must decide which of these companies Metalcraft should use to produce the rubber vent hose.

Recommendations

• Weighted scorecards that reflect importance of ranked area

• Standardized Procedures for use of scorecard

• Training for managers on scorecard use

• Methodology for dealing with 1 time problems

• Methodology for supplier to challenge rating given by Metalcraft

Analysis

• MetalCraft Supplier Scoreboard:

Currently Metalcraft is still using the scorecard system to evaluate sourcing decision but its degree of use varies from plant to plant and manager to manager. There are concerns by some managers that the scorecard does...