Metalcraft’s scorecard was developed to address control issues in the supply-chain. The scorecard was a tool that provided Melalcraft a single reference point on supplier performance over a period of time along three dimensions: quality, timing and delivery. There were several business functions that utilized the scorecard; buyers, plant engineers, supplier development engineers, suppliers and various other users within the Metalcraft organization. The scorecard was also used to evaluate supplier performance at both the individual plant level as well as the aggregate supplier level. The scorecard classified supplier performance metrics with color recommendations indicating the degree in which Metalcraft would base future sourcing based on their “color” quality rating.
There are several goals that Metalcraft was looking to achieve with the supplier scorecard, all having to do with the quality, timing and delivery of its suppliers. The scorecard’s goal was to ultimately rank its suppliers in an order that best described the quality of the products (the goal was to have minimum defect rates), timing (for their suppliers to meet production time restraints) as well as the delivery of the product (having suppliers delivery products in an acceptable timeframe). We feel that the scorecard is meeting its goal because it provides supplier ratings on a continuous basis rather than a single-audit, allowing the buyers to have a constant eye on the aforementioned areas. In addition, the scorecard not only provides the buyers critical information but it also travels through the system allowing for Metalcraft’s management team to view its suppliers as well.
Q: What are the strengths and weaknesses of the supplier scorecard?
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...would have to fill out the same form but from their point of view and in result it would be a point of comparison. Once this was completed the buyers could compare the two scores to understand different points of view. It would help with transparency, honesty, and ultimately provide trust in the buyer – supplier relationship. Certainly a supplier could favor themselves but if they did this drastically, and without reason, it would be evident that they altered the survey. However, if they were honest they might be able to communicate an improvement area or shed light on previous issues the buyer might not be taking into account. This would help overcome the negative views suppliers have of the scorecard. Ultimately, the buyer’s score would be the most important but certainly this would be another piece to help with making the right decisions on suppliers.
Any time the company is looking into software project, there are areas associated with risk such as cost, time and relationship with suppliers. However, for Harley-Davidson, “collocation of suppliers with production facilities and their integration into company’s development process was the essential part of long-term relationship development”. Through a continued focus on collaboration and strong supplier relationships, the company could position itself to achieve strategic objectives and deliver cost and quality improvement over the long-term. Since, at that time company had no centralized system in place to handle relationship with suppliers and consequently, most of company’s time was spent on supplier management activities. For example, reviewing inventory, expediting and data entry. Furthermore, each supplier had different information systems for “Maintenance, Repair, and Operations (MRO), Original Equipment (OE), Parts and Accessories (P&A), and General Merchandising (GM) purchasing activities”. The systems, already provided by supplier, had to be further modified to meet individual need at each location, such as “the OE system at Harley-Davidson’s York, Pennsylvania site was different from the OE system in Kansas City”. However, due to long-standing tradition of gradual change implementation and focus on quality, quick transitions were unwelcome and did not come easy for the company. The size of the project determined how much risk was involved in terms of cost, time, and supplier relationships. The idea of switching to global purchasing system was seen as a threat not only in supplies and production flow interruption, but also in damaged dealer/customer relationships and lost sales. Furthermore, failure of the sy...
Metallix Scotland Limited is a traditional manufacturing company based in Edinburgh. Employing 270 staff, the company mechanizes components for the automotive and aerospace industry. In order to ensure the quality of its products, MSL has relied upon customer Quality Assurance audits. However, it has been decided that the company will gain ISO 9001 accreditation and the customer base have supported this decision and agreed to the move. On the other hand, gaining ISO 9001 requires a lot of commitment and highly trained staff.
W.C. Benton, Jr., 3rd Edition, “Purchasing and Supply Chain Management.” (2010). Text. 2.
Suppliers must also have technical expertise and product innovation, be proactive in reducing costs, maintain the highest quality standards, and be willing to build long-term relationships (Volvo Group, 2014). This trust is an integral part of the supply chain since Prevost relies on consistent on-time deliveries of quality parts from its suppliers so that it is able to complete its chassis and shell builds.... ... middle of paper ... ... a.
Lockheed Martin’s supply chain is responsible for approximately $11.2 billion annually with nearly 1,500 production suppliers and 900 non-production suppliers all over the world (Lockheed Martin, 2014). Lockheed Martin designed their supply chain using lessons learned from preceding programs, that addressed on-time delivery, and quality assurance. Once a contract is signed with a supplier, Lockheed Martin issues a Material Resource Planning requirement to initiate the procurement process. Engineers travel to each of the sub-contractors and perform quality and reliability testing on their components. ALIS has increased the overall effectiveness of the supply chain by automating tracking of parts. Lockheed Martin has also increased
The company whose supply chain that I chose to evaluate was Lockheed Martin. Lockheed Martin is a company that is headquartered in Bethesda, Maryland, and they specialize in global security and aerospace. They employ approximately 97,000 people around the world and to a large extent are engaged in the research, design, development, manufacture, integration and sustainment of various advanced technology systems, products and services. Their mission specifically involves solving complex challenges, advancing scientific discovery and delivering innovative solutions to help their customers keep people safe. The vision Lockheed Martin has is to be the global leader in supporting their customers' missions, strengthening security and advancing scientific discovery, while their values include doing what's right, respecting others, and performing with excellence. As a global security, innovation, and aerospace company, a vast majority of Lockheed Martin's business is with the U.S. Department of Defense and U.S. federal government agencies. In addition, Sikorsky (a Lockheed Martin Company) dispenses military and rotary-wing aircraft to all five branches of the
In the mid 1980s, and into the 1990s, business leaders realized that a renewed focus on quality was required to continue to compete in an expanding global market. (NIST, 2010) Consequently, several strategic frameworks were developed for managing, and measuring organizational performance. Among them were the Malcomb Baldrige National Quality Award, which was created by and act of congress and signed into law by the President in 1987, and The Balanced Scorecard, which is a performance management tool that was born out of research conducted in the late 1980s and early 1990s by Robert S. Kaplan, and David P. Norton published in 1996 (Kaplan, 1996). Initially the renewed emphasis on quality management systems was a reaction to the LEAN approach
However, it is important to note that even with fewer vendors, WM’s purchasing policies and procedures will differ based on the size and sophistication of the supplier involved in the transaction. For larger suppliers like GM, WM will want to rely more heavily on detailed contracts that clearly stipulate the expectations of the company and the implications that will result from unfulfilled expectations. For smaller suppliers, the company will want to soften the dialog used in its contracts to avoid scaring potential vendors away. By using less threatening language, the company will be able to build trust with these smaller vendors and ensure their future cooperation in the timely delivery of quality
The furniture company Somerset needs to retain its customer service record and remedy any of its global supply chain issues before it has an adverse effect on the brand and start losing customers. With a frequent change in the product catalog, keeping an excessive inventory will cut its profit and some of the product may become obsolete even before the furniture hits the retail outlet stores. In order to achieve profit and success, business employee many strategies and the supply chain strategy are one of the operational management techniques that use analytical decision making process to achieve the company goals and provide tools to effectively compete in the market (Taylor and Russell, 2014).
As displayed in Exhibit-1, the five factors John Deere has based their measurements on are quality, delivery, wavelength, technical, and cost. While each of the five factors is necessary, some are quantitative measurements, meaning these involve statistical numbers that can be tracked and standardized, others are based on perception and can be left to the interpretation of the team member conducting the analysis. The composite rating scales appear to be subjective with rating scales that are muddled. Another area for improvement is the delivery rating, while an extremely important area to measure a look at the in-depth reasons why a supplier would be short on deliveries or delayed delivery time should also be looked at, this could give insight as to whether the supplier can meet certain demands. The John Deere team must also look at suppliers from an ethical and sustainable look, this should involve a look at who is supplying the suppliers, where the raw materials originate (Arrington, 2017).
The Balanced Scorecard has emerged in recent years as a performance measurement system in various organizations. This paper will discuss the origin and concept of the balanced scorecard and how it was first implemented. We will then review the criticisms on the balanced scorecard methodology as well as analyse the strengths and weaknesses of this performance measurement tool.
Supply chain management has been defined as that process that involves the management of information, materials, and all the finances that are handled within and across the entire supply chain process (Christopher, 2016). The management is usually done through out the entire supply chain management from that moment when the suppliers are involved through all the manufacturing activities, different distribution activities, and the way that the products are served to the final product consumer (Turban, et al., 2002). The process also includes all the activities that different organizations offers to their customers as after sale services for purposes perfecting their services and products towards their highly valued customers (Christopher,
This is the activity carried out by organizations that own production sites, and their performance has a major impact on product cost, quality, speed of delivery and delivery reliability, and flexibility [8]. As it is quite an important part of the supply chain, production needs to be measured and continuously improved. Suitable metrics for the production level are as follows. Order lead-time, the total order cycle time, called order to delivery cycle time, refers to the time elapsed in between the receipt of customer order until the delivery of finished goods to the customer. The reduction in order cycle time leads to reduction in supply chain response time, and as such is an important performance measure and source of competitive advantage [9]. It directly interacts with customer service in determining competitiveness. Range of product and services: According to [8] a plant that manufactures a broad product range is likely to introduce new products more slowly than plants with a narrow product range. Plants that can manufacture a wide range of products are likely to perform less well in the areas of value added per employee, speed and delivery reliability. This clearly suggests that product range affects supply chain performance. Effectiveness of scheduling techniques is another important measure of supply chain effectiveness. Scheduling refers to the time or date on or by which
A company’s relationship with key suppliers is a vital part of any company’s success. A good supplier relation means better price, meeting company standards and a better service level. That 's why when Honda started working with Modine, Honda made sure that its relationship with Modine was
...ement systems which combines both financial and non-financial measures which are considered more appropriate with the growing market. For instance, the two well-known performance measurements used by wide range of companies: Balanced Scorecard (BSC) and Performance Prism.