Redesign Of Service Modes For Remanufactured Products And Its Financial Benefits Essay

If the cost system reported sales volume and/or price we would be able to conduct an activity analysis to determine an appropriate cost function to determine the best cost driver for each product.

Based on the 3 types of quality costs that have been discussed and reviewed above, I recommend that we look at doing more appraisals and inspections during the manufacturing process, this will limit the number of design changes that happen early in the process but it should help in cutting down our external failure costs and help limit

Normally, the large automakers demand 0 defects from their suppliers. However, it is challenging for Metalcraft to achieve extremely low defect rate and succeed among rivals. Therefore, to solve the problem of control during the supply chain

After profitability and lifetime values are determined, these measures are included for determining customer decisions for -

This is something that must be addressed in supply chain management because if one area of the company is operating below capacity the other sectors will not be able to make up this lack of production. Another main component of supply chain management is how to handle damaged goods. It is a waste of money to send out defective products because it costs the organization large amounts of money to recall the damaged materials back to the factory and replace them, slowing production efficiency. There must be quality controls and regulations that enable Ford to minimize inventory defects and returns. The Ford Motor Company must have damage control operations to continue manufacturing the same amount of automobiles so that they do not lose any necessary inventory. There must also be procedures in place that deal with delivery systems and the delays and unsuitable materials that could easily occur. This paper will fully break down the previous issues associated with the Ford Motor Company 's supply chain management and operations. SUPPLY CHAIN MANAGEMENT OF FORD Synopsis of Supply Chain Management as it Applies to Ford The definition of supply chain management (SCM) involves taking a systems approach to the entire supply chain with the overall goal of reducing the level of risk and uncertainty throughout the supply chain. This will ultimately permit lower

Ford Motor Company is America's one of the largest car manufacturer and seller. In year 1987 it faces an external business environment change in the form of new warranty policy announcement by its major competitors General Motor, which changes the current philosophy of warranty in U.S car market. This policy change may have implications not only on Ford’s sales and market share but also on various departments within organization (such as manufacturing, quality assurance, parts and service, and extended service plans) and their dealer network. In answer, Ford executives have to respond through a best suitable course of action by carefully analyzing the current market variables.

The automotive component & Fabrication Plant, ACF, was the original plant site for Bridgeton Industries, a major supplier of components for the domestic automotive industry. All of the ACF’s production was sold to the Big-Three domestic automobile manufactures. Its main competitors were local suppliers and other Bridgeton plants. This company did very well but recently it became less effective when foreign competition and scarce, expensive gasoline caused domestic loss of market share. For boost its selling, it made four criteria, quality, customer service, technical capability, and competitive cost position to evaluate three classifications of products.

However, as a new member with a new product, electronic product in North American market, the reputation is also an important attribute. Especially, quick delivery time is a key attribute for this company, due to the demand of quick delivery in all markets. Moreover, the manufacturing process of the new product, electronic product, on which our company will definitely focus, has a lot demands. Such as, technology, innovation and quick delivery time even the ability to make the product be the first one appearing in the market (other company, which is developing the same product, may become our competitive opponents). Especially, technology is predicted to play the most important role in the manufacturing process. On the other hand, the traditional cost system has a lot of limitations. Traditional costing system focuses on the cost reduction and the efficiency, particular the products with relatively few standardized components; Clifton, however, produces a wide range of airplane components. In addition, nonfinancial aspects of

Ideas introduced in the article assist in understanding Ford’s current situation. Ford reported sharp falls in U.S. auto sales in May 2008. Sales of its most profitable pickups and SUVs suffered the most (“US Auto Sales Slide”). Some of the main

The following case study documents descriptive statistics done after surveys were done by a consumer research organization on the performance of automobiles produced by a Detroit manufacturer. These surveys were designed to evaluate a wide variety of products and services that were available to consumers in order to take a look at consumer satisfaction with the performance of the automobiles. The goal of this study is to identify ways to avoid early transmission problems and to gain full customer satisfaction.

Automotive Builders, Inc. (ABI) is a company that consistently changed its production lines and strategic goals relative to the needs of the times, starting out producing diesel engine parts for tractors in the 1940’s, switching over to the production of parts for military vehicles during World War II, and then, after the war, settling into its current placement in both the automobile and tractor industry. Due to the downturn in the economy and stiff and superior competition in both quality and price rising up from the Japanese who had recently entered into the industry, ABI is trying to find productive and innovative ways to improve sales and guarantee placement as the number one company in its

The main features which must be considered while designing a product or component for remanufacturing are:

Service operations often face more difficulty in planning than their manufacturing counterparts. This is because services, unlike physical manufactured products which are tangible and can be seen is that services are intangible and so they can only be experienced but can not be seen at all, although one must realize also that must consider that does have certain advantages that manufacturing often does not. While both of these components are interested in distribution to customers (the service component), the service component does not need to be as concerned with physical resource and logistical calculations. The marketer for each component can use different channels of distribution to distribute their products. The marketer in the manufacturing component can inspect the products and only deliver what is needed due to modern software that closely controls inventory and resource calculation online and in real time in coordination with central databases. While a service organization also requires some equipment and supplies, its key planning decisions usually surround processing times. The primary input to the majority of the service processes is labor stream. Value stream mapping is a method of visually representing the flow of a process from beginning to end, and separating the parts of the process that add value from those which do not. Both service and manufacturing companies have value streams, although they look much different (Taylor, 2012).

Remanufacturing has various definitions as found in literature, but what is common among all is the idea of product rebuilding [1]. A combination of these definitions for

The cost incurred by the function should be compared with the results accomplished e.g. sales volume achieved, gross margins achieved and net realization made.