Automotive industry's value chain is highly dependent on the level of quality management achieved in each phase of supplier validation, sourcing, procurement and demand management, to ensure each customer gets the highest quality vehicle possible (Ro, Liker, Fixson, 2007). The intent of this paper is to compare a domestic manufacturer, Chrysler, with a globally-based one, Toyota on how each manages the quote-to-order process for customized vehicles. While both companies take a unique approach to this process area, both share a common attribute or characteristic of using quality management, demand management, forecasting and pricing data to optimize their performance in production, services and customer management (Breyfogle III, 2010). For purposes of this analysis the quote-to-order process these auto manufacturers and others like them also use to translate customer demand into high quality vehicles is used (Selladurai, 2004).
Describing the Quote-to-Order Process between Chrysler and Toyota
The purpose of the quote-to-order process is to streamline the capturing of customer needs, preferences and requirements and translate them into the highest quality vehicle possible (Bilek, 2010). The way this process works is as follows. First, a member of the auto manufacturer's selling organization will meet with a representative of a fleet buying group or buyer who is going to place an order for up to a hundred units or more which is often how rental care companies buy vehicles (Chow, Choy, Lee, 2007). In the past several years, Chrysler and Toyota have led auto manufacturers with the development of online product configurators which guide potential customers through the series of vehicle options and alternatives, allowing them to build their own preferred car and then order it (Roehrich, Parry, Graves, 2011). This aspect of the build-to-order process...
4). 2.4 Effects of Environment: Concerns related to carbon emission were heightened in mid-2000s and in 2007 Al-Gore in his book 'An inconvenient Truth' condemned the big three saying "They keep trying to sell large, inefficient gas-guzzlers even though fewer and fewer people are buying them." In comparison to other developed countries in Europe and Asia, American standard for distance covered in one U.S. gallon was only 25 mpg (miles per gallon).
(Das; Puri, 2003) Innovation Management systems are also able to generate structured processes for evaluation and sharing ideas, such that decision makers are able to target those who possess the maximum potential. Nevertheless from the perspective of a manufacturing industry, the two costs which are important are material cost and processing costs which together accounts for 60% to 70% of the cost of goods sold. Material cost reduction in this
Sony's Supply Chain Management Strategies: Best Practices in High Tech Supply Chains The strategic series of systems, processes and programs that enable any company to exceed customer expectations on a consistent basis and be profitable is the performance of their supply chains. The synchronization of supply chains ensures that customers will have a consistent positive experience when purchasing from a company, and this holds true for both Business-to-Business (B2B) and Business-to-Consumer (B2C)
falling into a functional rut. This is exemplified in the approach Kuiper Leda also takes with regard to optimizing lead times throughout the productions scheduling and fulfillment processes as well. In summary, Kuiper Leda has many of the foundational processes, systems and roles in place to enable an efficient demand-driven supply chain network (Barrett, 2007), including the ability to synchronize suppliers, inbound quality management and inspection, production scheduling, manufacturing, and
A large body of literature has treated many different aspects of these influences on Asia, Europe and the United States (Busser & Sadoi, 2003). The importance of the study relates to the current trends taking place in Libya where aggressive steps have been taken in recent years to normalize relations with the international community. For example, Libya opened up its programs to develop weapons of mass destruction to international
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
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