Difference between revisions of "Automotive Case Study"

• Using Supply Chain Operation Reference Model (SCOR): Auto Inc requires the usage of the SCOR model for building supply chains. This has been developed by the Supply Chain Council and provides the best-in-class blueprints and guidelines verified and approved from a large number of enterprises.

• Using RosettaNet Partner Interface Protocols (PIP) as the business protocol: RosettaNet PIPs have been jointly developed by several vertical large enterprises as an agreed business protocols for doing business in an unambiguous way. In our scenario, all participants within Auto Inc, the suppliers and customers agree on using RosettaNet PIPs as the common protocols.

• Planning: it aligns resources to meet expected demand requirements. In the supply chain we distinguish between 3 kinds of planning processes, the sales and operations plans, the tactical plans, and the scheduling plan. These are detailed in the following scenario.

• Source-to-stock: it aims at the execution of all concrete operations that are needed to acquire and stock parts and materials.

• Make-To-Stock: it produces the final good and stocks it.

• Deliver-Stocked-Products: it delivers the produced good to the customer.

In order to perform these operations, the above steps rely on the business services.

should be produced more for the near future. The result of this process is a new production plan that should be scheduled in the M1 process (Make-to-Stock). Last but not least in the planning phase, the P3 process must compensate the materials it consumed for the previous productions, by means of passing the material requirements to the Plan Source (P2) process. The P2 process considers these material equisitions with the already ordered material amounts, and then decides the volume of materials that should be sourced and stocked. The P2 process results in a scheduled material requisitions that will be fulfilled by the Source-To-Stock (S1) process.

For other automobile parts and accessories, Auto Inc can place orders at the regional suppliers. The order placement is defined with the PIP3A4 and the acknowledgement should be sent back to Auto Inc with PIP3A4 as well. As soon as the products are ready for shipment, the suppliers will send an ASN (PIP3B2) to the Auto Inc. Pointing out at the role of some external business services, the interaction with them is needed for data management, performance measurement, and performance assessment. In particular, records of purchase and replenishment orders are used to analyze the statistical performance, or to keep track and detect the risks of the current orders. Some typical KPIs such as Order-To-Acknowledgement, Order-To-ASN, etc. are measured with the records. In particular, if the Order-To-Acknowledgement and Order-To-ASN are not received or returned too late, the process will schedule new material demand and place new supply order in order to ensure the amount of source materials in stock for future production. We assume that there is no need to cancel the old order in this case. Sources will still be imported excessively. Only the reputation of supplier will be deducted. The business services also provide the information needed to select the best suppliers to place purchase orders. The selection criteria are based on the following elements:

• Prices and Availability: which suppliers offer cheaper prices and larger availability will have more chance for collaborating. The

Suppliers Management subprocess (ES10) maintains information about the current product catalogue (including prices and availability) of all suppliers, and hence can provide an ordered list based on price and availability.

• Reputation (based on statistical data of previous transactions): the performance, reliability, and quality are also important selection

criteria. The Suppliers Management subpreocess (ES10) also maintains the statistical information about the suppliers and can provide a ranking list of the suppliers, based on performance, reliability and quality.

• Influences of compliance rules, risks: In case Auto Inc must follow some external and internal compliance rules that some suppliers

cannot hold, or the suppliers seem to yield too many risks, Auto Inc might have to choose other suppliers, even though they could be less efficient.

The Risk Management subprocess (ES9) estimates the risk of importing goods from each supplier and provides also the ranking list of the suppliers.