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BANGALORE AGRICULTURAL AND COMPLEX PARTS LTD.
BY:ANJU
ANIRUDDH TIWARIDEBTANU DEY
MEENAKSHI SRIMALISAI GANESH
SHASHANK M.A
Questions 1
Discuss the strengths and weaknesses of Bangalore Agriculture's AEP. Consider and discuss other criteria to include in the analysis.
Helps in providing competitive advantage to deliver worldwide equipment to customers
Can facilitate long-lasting supplier relationships through Supplier Evaluation process
Capability to recognize supplier performance
Ability to provide suppliers with Supplier performance summary
STRENGTHS
WEAKNESSES
Consideration of too many variables in Wavelength rating and Technical support
Challenges in evaluating a long-term supplier
Consensus approach to Wavelength rating and Technical support
OTHER CRITERIA FOR THE ANALYSIS
Technical competenceService rating (cooperation and readiness
to help during emergency) Speed of replacementSupport documents effectiveness and
completeness Management commitmentIndustry positionWarranties and claim policies
Do you think Complex Parts has performed adequately over the past year? Why or why not? Which of Bangalore Agricultural’s assessment classifications should be assigned to Complex Parts?
Question 2
COMPLEX PART’S PERFORMANCE
Complex part’s performance can be assessed based on 5 parameters :
1.QUALITY : Company achieved a quality rating of 666 which means that there were 0.6
rejects for 1000 parts supplied Complex Parts had done an excellent job internalizing the Bangalore
Agricultural’s Quality Plan elements
REMARK : Company scored well on quality parameter as rating was less than 1000 which is requisite for considering supplier as partner.
2.DELIVERY : Complex parts had achieved a delivery rating of 8,650 which is an
excellent score but off late ,in past quarter its rating was dismal 155000 which is way below the standards which is expected of suppliers who are given conditional approvals
Expediting had recently become a weekly requirement as a result of delayed deliveries
REMARK : Company although had a good track record of doing well in this parameter ,in last quarter its performance was very poor ,hence delivery is an area of concern
3.WAVELENGTH: Good performance in this parameter means improved
quality,attitude,responsiveness,attention to detail and communication performance
Complex Parts had done an excellent job internalizing the Bangalore Agricultural’s Quality Plan elements but was lagging behind in doing the same in its new plant
Delivery rating stood at 155000 which was not expected of a supplier partner like complex parts
Company was not responsive and expediting had become a weekly requirement
Price quotes not reaching on time suggests poor communication performance
Though company was proactive with its approach , in past quarter it failed to exhibit same performance
REMARK : Although historically Complex part’s has been a proactive supplier, in past quarter it scores low on this parameter
4.TECHNICAL SUPPORT: Assessment of the supplier in the areas of assembly line support, design
and process change information, manufacturing and design improvements, field problem resolution, test support, environmental responsibility, and supply management support
Complex Parts had taken an active role in keeping up with Bangalore Agricultural’s required specification changes
Complex Parts’ R&D department noting that several suggestions from the department had resulted in successful Bangalore Agricultural’s new product programs
But complex parts were not responsive for service demands of Bangalore agricultural
REMARK: Complex part did score well in technical support matter but need focus upon service
5.COST MANAGEMENT : Increase in cost due to late deliveries Not achieving target costs for number of items producedREMARK: Cost management is a concern
Although complex parts scores well in its performance over the year ,it has shown a poor performance on various parameters in past quarter.
SUPPLIER ASSESSMENT
In spite of Complex part’s poor performance in previous quarter, its excellent track record over the past years qualifies it to Partner status
However, Complex parts has to ensure that it improves on key performance parameters mentioned earlier
Question 3
If you were a member of the supplier evaluation team, what alternatives courses of action would you consider for Complex Parts? What recommendation should the team make to the project manager?
ALTERNATIVE ACTIONS FOR COMPLEX PARTS:
Problem: Late deliveries and price quote not reaching in time
Action needed: Implementing effective IT system to keep track of information and real time information exchange with the customer
Problem: Quality issues Action needed: Implement quality control process
similar to existing plant and demand quality products from tier1 and tier 2 suppliers
Problem: Not responding to service demands of Bangalore agriculture
Action needed: Depute a service engineer to Bangalore agriculture’s
plant to respond to change in service demands Train engineers at Bangalore agriculture
Problem: Unable to meet Cost targets Action needed: Reduce raw material costs through collaborative efforts
with vendors Focus on process improvements to reduce wastes Shift to vendor managed inventory.
RECOMMENDATIONS TO THE PROJECT MANAGER
Provide necessary training in the 1st quarter to Complex parts to improve on performance parameters
Reduce the order size by 20% in the consequent quarter, if desired performance levels are not met & in turn procure 20% from one of the other two suppliers
If the undesired performance continues consider moving Complex parts from existing “partner” status to “key” status
Question 4
What are the short-term and long-term implications of your recommendations?
SHORT TERM
Employing suitable & well experienced trainers Employing other suppliers who would meet the
specifications Will force Complex Parts to assess their performance on
key performance evaluators
LONG TERM
Improved performance of Complex Parts after getting trained in specific performance improvement areas
Develops long term supplier relationship with new suppliers Entry of new suppliers results in competition among
suppliers, forcing Complex Parts to perform better Extensive training in specific area will result in cost
reduction in long term
THANK YOU