While Trimco is QS 9000 certified, its quality control procedure varies. Please find online how QS9000 certification is conducted, and develop a plan for Navistar to audit the performance of Trimco by itself (hint: you may determine whether you want to audit an area which has already been audited by QS 9000).
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QS 9000 certification begins by monitoring the standards embraced by manufacturers of different automobile supplies. The first section of the standard is the automotive requirements. The supplies and materials should meet the minimal requirement for the intended automobile. The second section is the additional requirements and focuses on the expectations of the automaker. The third section is the customer specific requirement. The supplies and materials should be unique depending on the targeted truck manufacturer (Chopra and Meindl 38). Although Trimco is QS 9000 certified, it is agreeable that most of its supplies have been defective or inappropriate. Navistar can use a powerful plan to audit the performance of Trimco. The first step is monitoring the aspects or sections already audited by QS 9000. This approach will ensure the unique gaps affecting the quality of ordered parts are clearly understood. The firm will go further to audit Trimco’s business model, operations, and ability to meet the outlined requirements. Logistical operations undertaken by the supplier should also be audited in order to establish the main cause of the trim part shortages.
Trimco and Navistar use JIT between them. Do you think JIT is appropriate in this case, given the quality and delivery problem? Can you recommend some ways to improve the JIT delivery?
The use of a Just in Time (JIT) system is appropriate between Navistar and Trimco. This is the case because the system ensures that the required trim parts are delivered in a timely manner. This process makes it easier for Navistar to install the parts in a timely manner and deliver the products to the targeted customers. Unfortunately, the system has led to numerous quality and delivery challenges. The two companies can go ahead to revise the JIT system in order to deal with the problems. The first recommendation is improving the nature of communication. This approach will ensure Trimco is informed about the needed materials and their specifications in a timely manner. The second strategy is for Trimco to use the presented data and information from Navistar to produce the required materials. The third stage is ensuring that the packaged materials are checked and counterchecked before being shipped (Simon et al. 29). Inappropriate or poor-quality trim parts should be replaced immediately. Trimco’s warehouse should also keep inventory and countercheck the trim parts. These measures will ensure the JIT approach is sustainable and supports the manufacturing process.
Trimco has labor related issue such as high turnover. What should the Navistar do to address this issue?
It is clearly indicated that Navistar monitors the practices undertaken by Trimco in order to ensure quality materials and trim parts are delivered in a timely manner. The case study shows conclusively that Trimco has been a reliable business partner despite the few challenges affecting the delivery process. The high turnover at Trimco must also be contributing to the current problem. Navistar should go a step further to address the labor related issues at Trimco. The firm should begin by encouraging Trimco to develop a new organizational culture (Ross 47). The new culture will ensure the workers are empowered and guided in order to improve the quality of materials supplied to Navistar. The firm can support and guide Trimco to implement a powerful change. The new change will focus on the best approaches to empower the workers, increase remunerations, and promote the concept of work-life balance. Some measures will reduce the level of turnover and ensure quality materials are produced. This move will definitely result in a win-win situation (Chopra and Meindl 62).
Trimco may delivery incomplete kit to Navistar. Is there any way that the two parties can improve the procedure on either side to handle missing and defective parts, thereby reducing potential delay?
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The case indicates clearly that Navistar has been receiving incomplete kits for the trim parts. Several reasons explain why such incomplete kits are delivered. For example, the lack of coordination, emerging labor concerns at Trimco, and improper warehousing management have contributed to the problem. These companies have the potential to address this problem. They can do so by streamlining the supply chain process. The use of effective supply chain management will ensure Trimco is willing to improve its practices. The company will be guided to monitor the produced trim parts and detect defects.
Navistar should ensure every new design or layout change is communicated to Trimco in a timely manner. Trim parts should be matched with the specifications presented by Navistar. Trimco’s warehouse manager should go a step further to ensure the specifications and requirements are met. Proper labeling and matching will ensure incomplete kits are identified and corrected (McDaniel 321). At Navistar, the kits should be checked once again before installing the trim parts. Constant collaboration and communication with Trimco will ensure the number of defective and missing parts is reduced (Simon et al. 33). Robbing of parts from different kits should be avoided in order to reduce delays at Navistar.
Develop a plan for Trimco and Navistar to improve their communication. Be specific about what information should be exchanged and how they should be exchanged.
More often than not, the layout changes made at Navistar are not communicated to Trimco. This malpractice has led to delays and delivery of inappropriate trim parts. Effective communication between these companies can streamline the process and improve efficiency. The current nature of communication can be improved through the use of modern technologies. Information should be relayed and exchanged between the companies in a timely manner (McDaniel 319). Navistar should lead the way by creating a communication department. The role of this department will be to link key stakeholders involved throughout the process. The assembly department will be required to give timely updates depending on the changes and progresses made. The information to Trimco should then “be relayed real time” (Mensah et al. 68). The managers at Trimco should Navistar is informed about the contents of every kit. Although the move is complicated, the agreeable fact is that it will address the major challenges affecting the level of performance. The use of modern technologies, videoconferencing techniques, and social media platforms can ensure images are exchanged in a timely manner. The move will minimize confusions, reduce delays, and ensure every kit is perfect. The level of communication will eventually support the firms’ business models.
How should Navistar improve its supply chain strategy?
Navistar can improve its supply chain strategy in an attempt to drive business performance. The first idea to consider is the establishment of a supply chain department. This department will have a manager to oversee every supply chain process. The department will monitor the performance of different suppliers such as Trimco. The manager will ensure there is constant collaboration and coordination between the company and the supplier (Ross 39). The company can go a step further to come up with its own warehouse. The warehouse will be characterized by the use of modern technology to match trim parts and kits with the targeted trucks. The manager should also consider the unique needs and specifications of different customers. This move will ensure every new kit has the right trim parts for the intended truck. The workers in the company should also be involved throughout the supply chain process (Boyens et al. 57). The approach will make it easier for them to report errors before they can affect the assembly process. A strategic relationship between Trimco and Navistar will streamline the supply chain process, improve inventory, and reduce delays.
Boyens, Jon, et al. “Supply Chain Risk Management Practices for Federal Information Systems and Organizations.” NIST, vol. 1, no. 1, 2015, pp. 1-282.
Chopra, Sunil, and Peter Meindl. Supply Chain Management: Strategy, Planning, and Operation. Pearson Education, 2015.
McDaniel, Elizabeth. “Securing the Information and Communications Technology Global Supply Chain from Exploitation: Developing a Strategy for Education, Training, and Awareness.” Issues in Information Science and Information Technology, vol. 10, no. 1, 2013, pp. 313-324.
Mensah, Peter, et al. “Developing a Resilient Supply Chain Strategy by Exploiting ICT.” Procedia Computer Science, vol. 77, no. 1, 2015, pp. 65-71.
Ross, David. Competing Through Supply Chain Management. Springer Shop, 2013.
Simon, Alexandre, et al. “Evaluating Supply Chain Management: A Methodology Based on a Theoretical Model.” RAC, vol. 19, no. 1, 2015, pp. 26-44.