SEM 3 OM SUMMER 2014 ASSIGNMENTS

1. ASSIGNMENT
DRIVE SUMMER 2014
PROGRAM MBADS (SEM 3/SEM 5)
MBAFLEX/ MBA (SEM 3)
PGDOMN (SEM 1)
SUBJECT CODE & NAME OM0012 SUPPLY CHAIN MANAGEMENT
BK ID B1542
CREDITS AND MARKS 4 CREDITS AND 60 MARKS
Q.No Criteria Marks Total Marks
1 What are the different factors affecting transportation decisions?
A Description/outline of different factors and its
sub factors in students own words
10(5 marks for each
factor – any 2)
10
2 Write short notes on risk pooling.
A description of risk pooling
importance of risk pooling in SCM
listing and summarization(along with
suitable examples for each) of four
types of risk pooling
1
1
8(2 marks each)
10
3 Read the following case study and answer the questions given the end of the case
study
Best Supplier Relationship Management: Jaguar Land Rover and Gobel & Partner
Jaguar Land Rover production line
8 October 2013 | CIPS Supply Management Awards 2013
“Jaguar Land Rover (JLR) transformed its position in customer satisfaction surveys and
enhanced the quality of its products through an innovative partnership with a key
supplier.
By re-evaluating the way it deals with quality control and suppliers, Jaguar took top spot
in the 2012 JD Power Survey for customer satisfaction and Land Rover raced up the
chart. In 2008, the survey put Jaguar at nine and Land Rover at 34 for quality,
described by JLR as “clearly an unsatisfactory situation” for a premium brand and stated
that “something had to change”.
Component quality was identified as the key issue – for some suppliers the proportion of
rejected parts was as high as 65 per cent – and some finished vehicles were being put
into ‘containment’ due to faulty components. This had knock-on effects including
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2. delayed customer shipments, production line stoppages that cost £2,000 per minute and
the risk that faulty parts could make their way into completed vehicles.
At the time, JLR was working with 16 different suppliers across three factories to
undertake parts rework and containment, resulting in differing quality regimes and an
inability to share data across the company. As a result, there was no single view of any
given supplier’s quality history, which made preventative action impossible. A new
director of quality was appointed who launched a review of quality across the supply
chain that identified potential improvements that could be made to the inspection of
incoming components from suppliers. The Inbound Materials Project was established
and the 16 suppliers dealing with quality control were reduced to one – Gobel & Partner
(G&P) – who saw it as an opportunity to introduce innovations and boost investment in
its Qtrak quality management system, which totals £2 million to date.
This evolved into a partnership between JLR and G&P. Both realised that prevention
was better than cure, and through Qtrak they could identify the component suppliers
causing the most problems. Those with a recurrent history of reject parts were subject to
a more rigorous inspection regime. G&P’s aim is to ensure no faulty part ever arrives at
JLR production facilities and they now work on the premises of high-risk suppliers to
review quality processes. The firm is also working at JLR’s new plant in China to ensure
the right quality approach is in place from the beginning.
Over six years, the relationship between the firms has evolved from a traditional
adversarial situation, where G&P were treated as one of a number of commodity
suppliers, to one where the two are working to the same goal of “bringing premium
quality to premium brands”.Wolfram Leidtke, JLR board quality director, said: “JLR is a
premium brand and accordingly needs to have premium quality vehicles. Procurement
has aligned with this objective. G&P has been able to transfer their global knowledge
and work with JLR to develop a new approach to incoming material quality and the
results are starting to speak for themselves.’ ”
Source : http://www.supplymanagement.com/analysis/features/2013/best-supplier-relationship-
management-jaguar-land-rover-and-gobel-partner/
Question:
Illustrate the role quality played as criteria in JLR choosing its supplier Gobel & Partner.
Explain the importance of Gobel & Partner in the supply chain
A Students should illustrate based on:
How critical is component quality to JLR
What were the effects of bad quality
What were the issues JLR had to tackle
to working with 16 suppliers
The steps taken by JLR to improve
quality
Importance of the supplier
8 (2 marks each)
2
10

3. 4 “MTR Foods, the Bangalore-based food processing company, is planning to utilise the
services of a third party manufacturer for the first time. The contracted plant in Mathura
for producing vermicelli is expected to give it a push in the northern and eastern markets
where it is trying to expand its presence. The company is also planning a capacity
expansion in spices.
MTR has nine plants in Bommasandra Industrial Area in Bangalore which caters to its
product categories like spices and masala, beverages, vermicelli and frozen food. The
company has so far produced its brands inhouse.
‘The plant in Mathura would help us supply to the north and eastern parts of the country.
It would help us source wheat faster and also trim freight costs by 6-7 per cent,’ said
Sanjay Sharma, chief executive officer, MTR Foods.”
Source: http://www.business-standard.com/article/companies/mtr-foods-to-outsource-
manufacturing-110041200084_1.html
Which according to you may then be distribution strategy used by MTR? Justify your
answer
A Explanation on the facts fitting the
strategy
Identification of the strategy
Rationale behind choosing the strategy
Conclusion
3
2
3
2
10
5 Write short notes on:
Intercompany - interfunctional strategic scope: The maximise supply chain
surplus view
Capacitated plant location model
A Intercompany - interfunctional strategic
scope: The maximise supply chain
surplus view
Capacitated plant location model
10 (5 marks each) 10
6 Briefly explain how information helps in resolving the important trade-offs involved in a
supply chain.
A
Explanation of how information helps in
resolving the important trade-offs
10 (2 marks for each
trade-off)
10
*A-Answer

4. Note –Answer all questions. Kindly note that answers for 10 marks questions should be
approximately of 400 words. Each question is followed by evaluation scheme.
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