Posting 6



JIT SYSTEM IN DELL

For nearly three decades, Dell has been on an incredible journey, experiencing positive growth on a global scale. Through it all, it's our people(customers), business partners and team members (who keep us moving through the rapidly evolving world of technology).

Dell has also leveraged  JIT principles to make its manufacturing process a success. Dell’s approach to JIT is different in that they leverage their suppliers to achieve the JIT goal. They are also unique in that Dell is able to provide exceptionally short lead times to their customers, by forcing their suppliers to carry inventory instead of carrying it themselves and then demanding (and receiving) short lead times on components so that products can be simply assembled by Dell quickly and then shipped to the customer.

Dell pioneered a new way of making and selling computers. Dell re-engineered its supply chain so that it could produce computers with the exact features that customers ordered, ship them within 24 hours of taking the order, and ultimately invest almost no money in inventory. What does JIT Inventory mean? Small amounts of product are held in inventory. This means, at any given time, Dell would have little to no products wasting time in inventory. Essentially, products would be produced as they're demanded and to the customer's specifications. Dell thereby enabled customers to build almost completely custom-made computers. This increased customer satisfaction and loyalty.

Build to Order .

At Dell, the process is called "pull to order,”. It’s a critical element of our build-to-order manufacturing process,". The model contributes to increasing the accuracy of doing business, both from a customer and supplier standpoint. Once the parts are delivered, the assembly-line process can begin prepping components. Dell then begins manufacturing the actual computer.  Afterward, it tests and does custom integration work for the finished product.

After getting an order, Dell notifies its suppliers about what components are needed, and they're delivered within an hour and a half. With our pull-to-order system, we've been able to eliminate warehouses in our factories and have improved factory output by double by adding production lines where warehouses used to be. Dell generally fulfills customer demands within five days, and the firm plans to reduce that time by relying on more extensive Web-based collaborative technologies.

In addition to the manufacturing efficiency, there are other reasons why build-to-order is appealing. For instance, it helps prevent manufacturers from being stuck with inventory that may become obsolete as it sits gathering dust in a warehouse, says Burkett. Or if there's a design change to a manufactured product, a company can be stuck with useless inventory that it has to dispose of at a loss.

Process

Upon implementation of the world wide technology (WWT) solution, WWT became the single partner providing resources on the factory floor, reducing the overall number of resources required to maintain continuity of supply. WWT also built a dedicated team of material planners, vendor managers and process consultants to ensure end-to end management and efficiency of the solution. WWT brought several process and technical innovations to the Dell team. First, WWT developed a suite of forecast, inventory and demand planning applications calibrated to fluctuations in Dell's manufacturing process. Second, WWT opened distribution centers collocated with each Dell factory reducing lead times to 45 minutes or less. Finally, implementation of a RF based bar code scanning system used for product acceptance, replenishment requests and invoice reconciliation at the factory floor. These innovations while removing cost also provided much greater visibility and reliability relative to continuity of supply. 

Key to the WWT solution was working with each of the legacy suppliers.Management of 40 suppliers with 40 different processes and systems was a key challenge that the team faced. Leveraging technology, the WWT team was able to provide an integrated process for each supplier to receive orders, monitor forecast and reduce personnel cost. Also, by reducing entry barriers for suppliers wanting to work with Dell, WWT has been able to introduce a new level of free market competition further reducing stock keeping unit (SKU) prices for individual 

components managed by WWT. WWT successfully developed the needed systems, opened three initial facilities and put together a support team in just under three months. In addition, the project went live just prior to the holiday season, which is typically the most critical time of year for Dell's business. 

A member of Dell's supply chain management team noted, “Our new program with WWT has created new efficiency and simplicity in our supply chain. Consolidating supply chain management with a single entity has eliminated a lot of waste.” Dell has been able to acknowledge savings across multiple business areas recognize overall SKU price reductions and experience a scrabble process necessary to support Dell's overall growth. Since the program began in 2003, WWT has added three additional distribution centers, added more than 50 suppliers, built a team of more than 100 people to support Dell and is expanding into Dell's international manufacturing facilities.

(WWT) : World wide technology.

(SKU)   :Stock keeping unit.

Posting 5

MC DONALD JIT SYSTEM STRATEGY

Mc Donalds is one of the most popular fast food chains with a worldwide presence . It can be found in 119 countries and has about 31000 restaurants. It employs about 1.5 million people and is one of the largest fast food provider . It’s main line of business is the hamburger and others menu such as french fries soft drink and ice creams are the overhead menu. For this all of variety of product, Mc Donald must have an efficient and effective of suply chain management and a good manage on inventory to keeps the source and material are organize well. Mc Donald have implement the JIT system for the company in a worldwide . The just in time applied helped in reducing down on inventory levels and wastages.

 

Before this, Mc Donald’s strategy was to pre cook all the burger and place them under the lamps to keeps them hot . For example, we can saw this all the time before the fully implementation of JIT occur. Nowadays, the strategy wa totally to Just in Time approach. This method had been hired to quickly prepare all the menu and the employeers must had a good training. The strategy called “Made for You” . This approach to ensure to the first complete kitchen changeover, smooter, faster, amd more flexible kicthen system .

 

There are lots of advantages for the implementation of “Made for You” system . Firstly, improving the quality of the outputs which is the product. For example, the traditional approach just make keeps the burger under the lamps but the “Made for You” approach  make the burger condition are prepared freshly . This would increased the satisfaction of their customer with the good quality of product . The approach also make the product been in quality improvement compaired as before the implemantation of the “Made for You” method which is the meals arrive hotter, fresher and better every time to customer .

Another advantages of the new approach is increased the customer service relationship . Mc Donald company want to ensure the customer satisfaction is on a good level and miximize it to the higher level wheter as we know the Mc Donalds company had been a good fast food service provider and its have its own brand loyalty on the customer mind . The method has upgrade the product (meals) for the Mc Donald so more of the customer would choose Mc Donald for the fast food while rejected the other fast food provider. Cost Reduction occur which is reducing the wastages as uncooked materials has a higher shelf life because they can store the material in a good quality before order are make from customer.
  

Now we go on how the “Made for You”  works from the order are placed until the order are receive . First when you place an order, your food choice get transferred right away from the computer to the kitchen and the “Made for You” system begin . The order have been receive in a kitchen through the KITCHEN VIDEO SYSTEM (KVS) . The meals started to be process or cooked. For example, the buns of hamburger was place in a Vertical Rapid Toaster or Rapid Steamer. After the activities done, its send to the next trained professional in the chain .

Took an order

Vertical Rapid Toaster

The next station will place the bun on the heated prep table and add a quality ingredient and after its has been done they would put it on the heated landing zone . For the last stages, the burger collected from the heated landing zone and gather it with the drinks or other item that required from the customer .The lean production system of “Made for You” targeted under the 90 second from order to delivery to the customer . The “Made for You” system as as a tecnueqe that required the good technoloy , rapid respond and the good management of the production line that must ensure the product are deliver to customer as targeted . Nowadays, they have completed the system only on 4000 restaurants. 

Adding Ingredient

Collecting food

Posting 4

PANAMERA PORSCHE LOGISTIC & SUPPLY CHAIN MANAGEMENT

The 2013 Porsche Panamera ranks 3 out of 10 Super Luxury Cars. This ranking is based on our analysis of published Reviews and test drives of the Porsche Panamera, as well as reliability and safety data. Although it only seats four, critics say that the 2013 Porsche Panamera offers a spacious and luxurious interior, as well as dynamic performance that few super luxury cars can match. It has a efficient and effective production system . The logistic from the raw material recieved and operation at the assembly line and until deliver to customer have the good planing . It has three diffrent place or factory to manufature the different part of the panamera .The engines are first assembled in Stuttgart, and the car's body is built and painted at the Volkswogen Group facility in Hannover. The final assembly of the vehicle takes place in Leipzig, Germany, alongside the Cayenne. All the assembly line occur an affective and efficient management to make sure the quality are control .

The engines are assembled in Stuttgart , Germany . In the factory have a logistic area  which 46 times per day its recieved a delivery part . It has computer system to ensure right part on the right card to assembly line . The card is labelled on a one complete engine store together . After the checking complete , it takes 8 seconds the part living to engine plan . Its use the traveling transport system through computer database system . Its important to checking the complete set part of engine be prepare and each complete part are labelled . There are 190 parts are gathered together and its will labelled with the card . After all the part are ready complete assemble , its load on the truck in 2 minutes and 20 second and ready to send to the Leipzig .

The body part was assemble in Hannover , Germany also . The body must have a high lavel of quality control after the part are complete made through the staping machine . The body consist of 6 raw materials mix . After all the body was complete its move to the automatic warehouse . The warehouse is automatic which its coordinated the finish body part before its ready to be prepared  shipment to Leipzig . The shipment use of the railway modes transportation and monitor by the electronic nerve system which is to detect the every body part in the shipment freight .

The body part from Hannover had delivered by the rail and the engine is by the truck from Stuttgart . The recive system has the special lift system in the factory in Leipzig to arange the body , engine and all part . All the part are assemble completely to be finish goods which is the Panamera  in the factory  with the high efficient management system . All the inventory on each factory was manage by effectively to make sure the inventory control on thier production run smoothly.

The implemantation of JiT system on thier production helps the production to make the product on demand of customer , its had over 120 panamera in 1 day . The truck uses is on 150 untill 160 to move the inventory to each place to make sure the component arrived on schedule .

The management of the logistics must ensure over 20 000 part each days to move less then 24 hours . The logistic system and assembly system flow are connected to each other . Every factory have a customize place to allocate ientory so no inventory will lost and in a right quantity .

Posting 3

How to Create a World-Class Supply Chain ???

Lenovo's direct ship enablement program allows the company to integrate new partners quickly to meet new demand.

Whether they are consumers or businesses, customers today have unlimited access to information, which can be shared instantly around the world. As a result, they want transparency and simplicity in how they order. They’re using social networks, mobile devices, websites and influencers to make buying decisions. And they’re using social media to broadcast their opinions.All this makes it very tough on manufacturers. In particular, these raised expectations have significant implications for how manufacturers should run their supply chains.

Recognizing this, Lenovo recently worked with IBM Corp. to revamp key end-to-end supply chain processes. It recognized that an outstanding customer experience is more than just making ordering easier; it requires a fully aligned supply chain to ensure complete satisfaction from the order to fulfillment to invoicing and post-sales service. Lenovo leveraging IBM’s Smarter Commerce as an important element in our drive to create a world-class supply chain. Under that strategy, they using IBM’s unified integration platform to improve significantly the way Lenovo does business with its various trading partners and customers, resulting in a more highly synchronized supply chain.This has enabled to transform three parts of business:

1.      Implemented a new direct ship enablement program that allows to integrate new partners quickly to meet new demand.
2.      Added a new capability that call “sell on the water,” which allows to allocate product to customers while a ship is in transit.
3.      And finally, going forward, end-point vision to leverage the platform to go fully “touch-less” in order processing. In this vision, there would be no scenarios requiring manual intervention, regardless of how a customer places an order.

 

Direct Ship Strategy vs. the Perfect Order

Lenovo’s supply chain strategy uses a carefully balanced mix of in-house production facilities and outsourcing partners, such as original design manufacturers (ODMs) and electronic manufacturing services (EMS) providers. This approach gives Lenovo optimal supply chain flexibility, agility and cost-competitiveness, while mitigating risk associated with market volatility.

Direct shipping is an important part of our supply chain process. It make  more customer-focused, improves order visibility and lowers costs. However, execution can be challenging, particularly on orders for products built by outsourcing partners.This is a key decision for any OEM: Should they receive finished goods from the ODM or EMS supplier, and then ship to its customers? Or should they ship directly from the outsourcing partner to the customer?Unless the OEM is doing some final assembly or packaging, it usually makes sense to do direct shipments rather than introduce an intermediate stocking point that may lead to increased inventories, costs and lead times. Within our mixed supply strategy, the large majority of customer orders today are direct shipped.

As part of new direct ship enablement program, developed a highly standardized methodology for on-boarding ODMs and EMS providers, both for those using electronic data interchange (EDI) connections and those using the web portal. The results have been impressive, with a more efficient process that enables us to start up and integrate a new ODM or EMS in an average of 12 weeks.Found that the key benefits of the direct ship program were reductions in three categories: cost, cycle time and inventory. The result has been higher margins, higher perfect order attainment and leaner inventories (higher turns).

Managing the Outsourcers

As deployed the new platform, the studied a sample group of new ODM partners to assess the benefits of the solution. Found an annual cost savings in 2011 of nearly $1 million, and order cycle time reduction of two work days compared to the legacy process.Further, one ODM that produces Lenovo notebook PCs and uses the EDI Direct Ship enablement solution cut its cost per box by 1%, reduced its order cycle time by five working days and improved quality by avoiding a second touch.

A major challenge, however, is carefully managing the outsourcing relationships to ensure good performance. The customer’s perspective on perfect order attainment is largely in the hands of these partners, but Lenovo’s brand and sales suffer if things don’t go smoothly. Once an order is sent to an ODM, it normally takes three days for the ODM to ship. Although there is some lack of visibility during this period, Lenovo still can monitor this time window to measure fulfillment rates within the cycle time. They looking to expand analysis capabilities in this performance area in the future.

With the help of automatically generated reports and purchasing information updated daily by ODMs, Lenovo greatly improved visibility to customer order status. Once Lenovo receives the dispatch advice (ASN) from the ODM, it immediately sends this electronic information to the carrier, along with the routing guide and consolidation instructions. The latter two are fairly static, and are selected when the ASN is sent. From this point, Lenovo has visibility of the shipment all the way through to delivery at the customer’s dock.

Lenovo controls suppliers for both its own internal production and ODMs. Like most OEMs that rely on outsourcing partners, Lenovo employs processes to maintain confidentiality of negotiated volume pricing agreements with parts suppliers while they produce finished products through ODMs. These partners have visibility to approved suppliers, but not pricing, in many cases initiating replenishment orders to the suppliers on behalf of the OEM. This gives us better control of both spend and quality of sourcing.

Lenovo currently has about 100 customers that place orders electronically via EDI. All e-commerce orders flow electronically via business-to-business (B2B) links from a web portal to the Lenovo fulfillment system. Other customers place orders via the call center or fax, but use EDI to report inventory positions and usage. This process tends to cover very-low-volume customers.With retailers, now use a modified “pseudo” EDI process, but migrating to IBM’s B2B platform. The next step is to use a portal for smaller customers. With this change, Lenovo expect on-boarding times to drop dramatically and this improvement will make it possible for Lenovo to shift more of the order mix to an automated B2B environment such as EDI/XML.

Opmizing the Customer Order

One of Lenovo’s objectives in creating the optimal customer experience with its supply chain is to enable “touch-less” ordering. Regardless of how a customer places an order – EDI, web, portal, mobile device, etc. -- there should be zero exceptions that require manual intervention.

In general, the level of touch-less ordering is much higher in mature markets than emerging markets, which is to be expected. As Lenovo further expands our use of EDI, portals and the web to do business with customers, they expect the percentage of touch-less orders to increase over time.By establishing a unified, global integration platform, Lenovo eliminated some “information black holes” that limited they  abtility to serve customers. And in fact, this improvement has enabled them to implement a new process, called “sell on the water,” that gets product in the hands of customers faster. With this process, a ship can be loaded at the point of origin with product based on forecasted demand, and then can be seen as a “virtual warehouse,” through which can begin allocating product to customers while the ship is in transit.

Previously, this was not possible because Lenovo didn’t have a complete view of inventory. Now when a shipment is loaded on board a vessel, this event triggers a receipt into a virtual warehouse location in the U.S. This allows allocation of customer orders against the expected stock up to six weekssooner than actual physical receipt of the goods in the warehouse.The bottom line? With advanced, stable collaboration platform implemented with IBM, they literally have millions of transactions flowing through the system each month with multiple trading partners. They have visibility into the entire supply chain, which means can now work smarter and make the data work for them in a way that wasn’t possible before. This will be a significant leap forward in drive to be a leading supply chain and provide the ultimate customer experience.

Posting 2

 Reverse Logistics Barriers 

Reverse logistics is a poorly-understood concept in business, and what is even more poorly understood is the role that technology has in facilitating this important process.

Reverse logistics gets its name because it is the opposite of forward logistics. As a business sells products, they can have the products moved from a warehouse directly to the consumer or to distributors. Reverse logistics, as the name implies, is exactly the opposite. It is a nuanced and complex process that presents a manufacturer with a number of problems that fortunately can be solved by the correct application of business software. These problems include:

Problem 1: Tracking Value 

– One major challenge is determining and tracking the value of the unit. So let’s think of an easy example – a registration system for a flexographic press. Let’s say a technician is dispatched to replace a system at a customer site.

A brand new system might have a value of $5,000. In forward logistics, cost is a simple number. But what happens when the engineer in the field swaps out the good assembly for the defective one? Now, he is supposed to send the defective one back so that it can be repaired. But the defective system doesn’t have full value. It is not worth $5,000, because it doesn’t work. But it is not worth $0 either because the company might be able to change one little sub-component and make it a useful unit for the repair pool.

Software that handles reverse logistics has to take into account the useable status of the item and track the unit on a basis that is valued at less than full cost but more than zero cost.  And so that is just one small example of some of the interesting characteristics of a reverse logistics operation that really isn’t the same as forward logistics.

Problem 2: Tracking warranty and routing status 

– Things get even more complex when a reverse logistics value chain includes third party repair by an OEM or items under warranty.

Sometimes a part may be under warranty from your supplier that is either in force for a longer or shorter period than the one that you yourself offer. Reverse logistics software is able to track those secondary warranties back to the OEM and generate the appropriate claims for warranty service provided. Using the right software, a company involved in reverse logistics can claim millions of dollars in warranty reimbursements back from their supplier that they weren’t able to track otherwise just by being able to say  units that were acquired on a particular day are still within the two year warranty. Here is the evidence. Please make an adjustment in financial consideration.

Reverse logistics software can also handle automated routing of items within a repair facility and to other repair facilities, whether they are third Party providers or not.

Problem 3: Handling dealers and contractors 

–Complexity increases further when it extends beyond a company’s own service organizations to third parties like contractors, subcontractors or distributors that participate in aftermarket support. 

As the distributor buys a particular subassembly, they might build it into their own product assembly, or they might sell it directly to their customers. They might send boxes of 10 of these repairable components back to the manufacturer’s repair facility. Software for reverse logistics needs to take into account the nature and quality of that business relationship. When there is a good business relationship with that outside entity, rules can be set up in the software to advance replacement parts to them when they simply notify us that they are sending the repairable units through a return material authorization.

When the replacement parts are advanced to the dealer or contractor, the system still needs to keep track of whether they did in fact send their 10 defective units back. So it is equally important to create another business rule that specifies that the distributor gets, for instance, up to 10 days to send the defective subassemblies back. And then when that date is at risk of passing, send a notification to the right individuals to ensure the parts come back into inventory.

Keeping track of this level of reverse logistics interaction between trading parties on a manual basis or even in some computerized systems not specifically designed for the task is impossible. The ability to avoid losing track of products in a reverse logistics value chain, even when they are out at a third party, is a very important financial consideration and must be a consideration in selecting software to handle these functions.

Problem 4: Driving efficiency in repair processes 

– Software used for reverse logistics can also streamline work in the depot repair environment through the use of visualization – videos or drawings that demonstrate to the repair technician how the work is to be performed. 

Software can provide a short video or tutorial to the engineer on the bench. We can illustrate how a given component is disassembled, how you would do a preventive maintenance cleaning, or make a required adjustment.  So we are able to take someone who is perhaps not as skilled on a product and let them, through the use of these visualization tools, get a quick tutorial so that they can actually work on products even as they are getting over their learning curve.

Reverse logistics software can include video tutorials for bench techs, compressing the learning curve for specific repair processes.

When software accommodates the reverse logistics process to this extent, a company can get much more productivity out of their engineers then they could before. 

TOYOTA STRATEGIC MANAGEMENT OF SUPPLY CHAIN

Posting 1

The Toyota company had established the strategic plan of the management of supply chain to ensure their production system are operating in a effective and efficiently . The company try to implement and seeking the best way to control the flow of material in the physical supply to make sure their can manage all the supplier provide the raw material and component on schedule through the Toyota Production System which is the just in time concept (kanban) and (Jidoka) .

Just-in-Time

"Just-in-Time" means making "only what is needed, when it is needed, and in the amount needed." For example, to efficiently produce a large number of automobiles, which can consist of around 30,000 parts, it is necessary to create a detailed production plan that includes parts procurement. Supplying "what is needed, when it is needed, and in the amount needed" according to this production plan can eliminate waste, inconsistencies, and unreasonable requirements, resulting in improved productivity.

Kanban System

In the TPS (Toyota Production System), a unique production control method called the "kanban system" plays an integral role. The kanban system has also been called the "Supermarket method" because the idea behind it was borrowed from supermarkets. Such mass merchandising stores use product control cards upon which product-related information, such as a product's name, code and storage location, are entered. Because Toyota employed kanban signs for use in their production processes, the method came to be called the "kanban system." The “kanban system” is introduced by Taiichi Ohno . At Toyota, when a process refers to a preceding process to retrieve parts, it uses a kanban to communicate which parts have been used.

Evolution of the kanban through daily improveme

Through continuous technological improvements, the kanban system has evolved into the "e-kanban," which is managed using IT methodologies and has increased productivity even further.

 Why use a supermarket concept?

A supermarket stocks the items needed by its customers when they are needed in the quantity needed, and has all of these items available for sale at any given time.

Taiichi Ohno (a former Toyota vice president), who promoted the idea of Just-in-Time, applied this concept, equating the supermarket and the customer with the preceding process and the next process, respectively. By having the next process (the customer) go to the preceding process (the supermarket) to retrieve the necessary parts when they are needed and in the amount needed, it was possible to improve upon the existing inefficient production system. No longer were the preceding processes making excess parts and delivering them to the next process.

Jidoka (Manufacturing high-quality products)

Automation with a human touch

The term jidoka used in the TPS (Toyota Production System) can be defined as "automation with a human touch." The word jidoka traces its roots to the invention of the automatic loom by Sakichi Toyoda, Founder of the Toyota Group. The automatic loom is a machine that spins thread for cloth and weaves textiles automatically.

Before automated devices were commonplace, back-strap looms, ground looms, and high-warp looms were used to manually weave cloth. In 1896, Sakichi Toyoda invented Japan's first self-powered loom called the "Toyoda Power Loom." Subsequently, he incorporated numerous revolutionary inventions into his looms, including the weft-breakage automatic stopping device (which automatically stopped the loom when a thread breakage was detected), the warp supply device and the automatic shuttle changer. Then, in 1924, Sakichi invented the world's first automatic loom, called the "Type-G Toyoda Automatic Loom (with non-stop shuttle-change motion)" which could change shuttles without stopping operation.

The Toyota term "jido" is applied to a machine with a built-in device for making judgments, whereas the regular Japanese term "jido" (automation) is simply applied to a machine that moves on its own. Jidoka refers to "automation with a human touch," as opposed to a machine that simply moves under the monitoring and supervision of an operator.

Since the loom stopped when a problem arose, no defective products were produced. This meant that a single operator could be put in charge of numerous looms, resulting in a tremendous improvement in productivity.

Type-G Toyoda Automatic Loom, the origin of jidoka

The Type-G Toyoda Automatic Loom, the world's first automatic loom with a non-stop shuttle-change motion, was invented by Sakichi Toyoda in 1924. This loom automatic

Jidoka and Visual Control

Since equipment stops when a problem arises, a single operator can visually monitor and efficiently control many machines. As an important tool for this "visual control" or "problem visualization," Toyota plants use a problem display board system called "andon" that allows operators to identify problems in the production line with only a glance.

Nowdays, the Toyota company is a sucses company where their not keeps any inventory and storage to operate in the assembly line . The assembly line for Toyota operate the the assembly line after all the material and component arrived and delivered by all their suppliers . The organization manage all the suppliers effectively and suported by the system that implemented by the Toyota . Toyota had been a successfully company in vehicles production and manufacturer in the world .

Al- Muqadimmah ( Pembuka Bicara )

Assalamualaikum to all class members and bloggers. Especially to our lecturer Sir Muzani Bin Zainon. Firstly, thank you to Sir Muzani because giving us an interesting assignment which is can help us to improve our view about logistic supply chain and all information that related to purchasing. We are from DLM 3B and our group members are Khairulamirin, Muhamad Hafifi, Muhamad Firdaus, Muhammad Hisyam and Mohamad Rozaini. We are happy to sharing the information as required