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Standardization of the longest lead-time parts and those with the highest variable costs are essential for manufacturers to stay profitable. Standardization also needs to be dictated by the implications for suppliers of key parts and subassemblies. Standardizing on long lead-time items that also have little demand variability would be the best decision.
Based on your knowledge and/or experience of Total Cost of Ownership (TOC), discuss what you think are the two most critical components of TOC.
Total Cost of Ownership's most critical areas are the recurring costs over the lifetime of an asset and the services strategies to minimize these costs. The second most critical component is the planning prior to development or manufacture to ensure that maintenance for the asset or system is as high in terms of reliability as possible (Heilala, Montonen, Helin, 2007). It is also critical on this second point to engineer in a low time to repair (MTTR) and very low cost to repair using off-the-shelf parts to minimize supply chain fluctuations as well.
References
Jeffrey H. Dyer, & Kentaro Nobeoka. (2000). Creating...
Strategic Management Journal: Special Issue: Strategic Networks, 21(3), 345-367.
Juhani Heilala, Jari Montonen, & Kaj Helin. (2007). Selecting the right system - assembly system comparison with total cost of ownership methodology. Assembly Automation, 27(1), 44-54.
Kondo, Yoshio. (1987). Quality Motivation in Japan. Human Systems Management, 7(2), 93.
Leung, K. (2010). An integrated production-inventory system in a multi-stage multi-firm supply chain. Transportation Research. Part E, Logistics & Transportation Review, 46(1), 32.
Miller, Robert D.. (1987). Achieving CIM Through Mastery of the Basics. The Journal of Information Systems Management, 4(3), 74.
Ouyang, Y., & Li, X.. (2010). The bullwhip effect in supply chain networks.
European Journal of Operational Research, 201(3), 799.
Potocan, V.. (2009). Does Trust influence Supply Chain Management? Journal of American Academy of Business, Cambridge, 15(1), 118-124.
Shukla, V., Naim, M., & Yaseen, E.. (2009).…
References
Jeffrey H. Dyer, & Kentaro Nobeoka. (2000). Creating and managing a high-performance knowledge-sharing network: The Toyota case. Strategic Management Journal: Special Issue: Strategic Networks, 21(3), 345-367.
Juhani Heilala, Jari Montonen, & Kaj Helin. (2007). Selecting the right system - assembly system comparison with total cost of ownership methodology. Assembly Automation, 27(1), 44-54.
Kondo, Yoshio. (1987). Quality Motivation in Japan. Human Systems Management, 7(2), 93.
Leung, K. (2010). An integrated production-inventory system in a multi-stage multi-firm supply chain. Transportation Research. Part E, Logistics & Transportation Review, 46(1), 32.
Thanks to this new online bidding system, procurement decisions that took months earlier can now be arrived at within an hour. For its procurement process, the company uses an electronic tool called Ariba, which not only replaces the paper work but also eliminates the chances of misuse of purchase cards and other frauds. This automated ordering process reduced the use of purchasing cards from around $18 million in 2001
(Reza, 2009) This information is building off of the findings from Uthayakumar. This is illustrating how the two tier system can help to streamline operations. However, as time goes by these ideas will become obsolete. The reason why is because they are focusing on particular aspect of supply chain management (i.e. during emergencies and backlogs). Where is it is failing, is through understanding how this strategy could be used when
Supply chain management in FMCG sector Fast Moving Consumer Goods (FMCG) Managing supply of FMCGs Demand and Supply Distribution Channel Traditional channel of FMCGs distribution National Vs Global Presence Products and Services Supply chain opportunities Usage of Supply Chain Management Business development Business performance Cost reduction Revenue Increase Inventory management Overall Business Performance Competitive advantage Future trends Issues in global supply chain management: FMCG sector Multi-channel Supply Chain Management Individual Tagging The FMCG sector is represented as manufacturers and distributors of packaged products. They are also coupled with mega retail brands
Supply Chain Management at DIMCO The supply chain relates to the entire cycle and process through which raw materials are purchased, processed and developed in to goods and services which can be traded in the market. The management of such a process would involve creating improvements in the supply chain itself to make it more profitable and efficient for the company (Davis, 1993). Therefore the supply chain encompasses not only raw
Supply Chain Management Hypothesis defined Concepts of SCM and the evolution to its present day form Critical factors that affect SCM Trust Information sharing and Knowledge management Culture and Belief -- impact on SCM Global environment and Supply Chain management "Social" and "soft" parameter required for SCM Uncertainties This chapter aims to give an outline and scope of the study that will be undertaken in this work. The study lays out the issues faced by manufacturing organizations when it comes
Supply Chain Ann Supply Chain Management Annotated Bibliography Chopra, S., & Meindl, P. (2010). Supply chain management: Strategy, planning and operation (4th ed.).Upper Saddle River, NJ: Prentice Hall The text by Chopra & Meindl (2010) is an excellent starting point for this discussion, primarily because it serves as a rather exhaustive introductory reading on the subject. Providing academic explanation of the basic premise of supply chain management and an extensive investigation of the