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Assignment : Supply Chain, J. Griffiths Ltd.

2542 words - 10 pages

J. Griffiths Ltd is an old British traditional bike factory, which was a major manufacturer in UK. They have a wide range of bicycle for different kinds of customers. Today the profits are declining rapidly and there is an increase of the competition from South East Asia. Those factories are more competitive and have a higher line of product, a better quality, a shorter lead time... which is very attractive for the customer.The company has two sites : Perry Barr, which is the biggest one, but does not have place for extension and there is a waste of space because there is 5 weeks stock of work in progress ; and the other site has the Plastic moulding company which is in Wolverhampton. The factory has the opportunity to sell the site of Wolverhampton, but there is the problem to know how they can organise itself to put all the machines in the main site, what they should change ... which explain the first question.For the second question we have to consider a purchasing strategy, which induce the partnership with the suppliers ; we have to choose if we want to try to have few suppliers, a dual sourcing, tiering, a local sourcing, ... and which kind of problem we can anticipate.The company can buy an Italian bicycles firm, which is a gears supplier, is located in Europe so give to the factory one door for the European market, new suppliers (maybe cheaper), but it gives some problem too, like the language and the understanding, the currencies, the culture, ... It is therefore more difficult to have good relation with the supplier and to transfer to him our knowledge. The relational problem the factory can have with the Italian company can justify the second question.The factory Perry Barr site knows some problems. It is a lot of all kind of wastes. But the one which are the most important for using just one site and having the machine of the two sites in the same is the waste of time on hand, processing itself and unnecessary stoke on hand. Indeed, there are more than 30% of the acreage which is use for the work in progress materiel and the raw material store takes up 20%... So we have more than 50% of the Perry Barr site which is not use for machines (there is less than 40% for it). That is why we can try to move to a Just In Time (JIT) process, which will try to reduce the wip's stock of 5 weeks to 1 day of stock.If we do that, we will have some space to put some machines, the Plastic Moulding Company for example, because we will win around 20% of space and we have 10% free, we just need 25% to have enough space. We can believe that we will have some raw material in common, so we will put it in the same location and we will use less space.That is why we have to understand why we have so many stock of wip. In the case study it is say that we make big quantity of components because the set-up time is big (from 15 to 90 minutes). We should evaluate how many bikes we can do in a day and try to organise ourselves to have at worst two days of wip's...

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