Operational Restructuring at Harley Davidson

Presented By- Group No. -03

Indu kumari

Manoranjan Paul

Nalinaksh Tripathi

Ranjt kumar Nayak

Renu Sharma

Saurabh Kumar Soni

Case Study

History The problems of plenty A Bike, A Culture, A Legend Restructuring The Operations Suppliers Relationship Management Use of IT in Supply Management MRO Management Logistics Management

INTRODUCTION

H.D. succeed in leaving behind most of its competitor due to great depression of the 1930.

H.D.’s popularity and sales grew rapidly in late 1950 and 1960 as it launched a new range of super bikes.

Which became symbol of a counter culture in the US.

It was appreciated by freedom loving and carefree attitude people.

It gave birth to biker culture.It became a fashion and lifestyle statement in

the last 1950 and 1960.

ANSWER-01

MISTAKES DONE-To meet the expansion cost company increased the

price which made many customers unhappy.Quality of H.D. motorcycle began declining as AMF

kept pressing the company to increase sales volume.Quality had to be scarified for the quantity.

Problem occurred when Japanese company entered in to the market with high quality and low price.

By 1980 H.D. was on the brink of bankruptcy.

CONT…

H.D. regain its leadership status due to the U.S. gov.

Company keeps close relationship with customers by building personal relation with them.

Cut down the production to focus on the quality aspects as required.

Began expanding its operating outside from U.S. by selling its motorcycle in U.K. and Japan.

Launched so many new motor cycles.

RECOVERY FROM BANKRUPTCY

In the mid 1990 H-D restructured its operation related to the supply chain to focus on three elements-

Cycle time managementRelationship managementsustainability

ANSWER-02

INVOLVEMENT OF PURCHASING IN DESIGN

The engineers themselves dealt with the suppliers.Handled logistical needs and managed routine

personnel function

CONT….

TYPES OF INTEGRATIONVERTICAL INTEGRATION-The degree to which a

firm owners its upstream suppliers and its downstream buyers referred to as V.I.

HORIZONTAL INTEGRATION-The acquisition of additional business activates at the some level of the value chain is referred to as horizontal integration.

ANSWER-03

Purchasing executives were more capable to meeting the design according to requirement.

H.D. purchasing division performed two different function-

Operation and DevelopmentNew position was created purchasing engineer.

INTEGRATION OF PURCHASING DIVISION

Reduce number of suppliers.H.D. establish product development center.Reducing cost and improve quality.Set up SAC(supplier advisory committee).Created master suppliers agreement.Built relationship strategy, helped it procure better

technology, innovation of product and achieve the objective.

INTEGRATION OF SUPPLIERS

ADVANTAGES AND DISADVANTAGES OF INTEGRATION Benefits of IntegrationReduce transportation costs Improve supply chain

coordination.Provide more opportunities to

differentiate Capture upstream or downstream

profit margins. Increase entry barriers to potential

competitors.Facilitate investment in highly

specialized assets in which upstream or downstream players may be reluctant to invest.

Drawbacks of IntegrationCapacity balancing issues. Potentially higher costs due to

low efficiencies resulting from lack of supplier competition.

Decreased flexibility due to previous upstream or downstream investments.

Decreased ability to increase product variety.

Developing new core competencies .

Technology used by H.D. for supply chain management operations-

Manugistics’ supply chain software.Pro-E computer aided design and

manufacturing software.Product data management software.

ANSWER-04

Harley-Davidson supplier network

(H-dsn.com).Data mirror transformation server.Supply information link (SiL’k)

Cont…

ANSWER-05H-D restructuring operation are

1.)Involvement of purchasing in design

Performed two different function- Operational purchasingDevelopment purchasing

BENEFITS:-

-Cost reduce

-Time save

2.)Supplier Relationship Management

Product Development Center Continuous Improvement Team

BENEFITS:-

-Improvement in manufacturing skills

-Face to face talk

IT tools used in supply chain by H-D

Extranet:-H-d.netH-D supplier network(H-dsn.com)

BENEFITS:- -Encouraged dealers to interact with the

company -Helped supplier to review their own

accounts.

Imbalance between its supply and demand

Distribution system was antiquated.Demand is more than the supply.

SUGGESTION:-I. They should handle all the list of parts

threw latest technology.II. They should reduce the order time.

HARLEY-DAVIDSON TO LAUNCH IN INDIA BY 2010-11

The company would launch bikes whose price tag would range from Rs 4 – 14 lakhs.

Sportster 883

THANK YOU