ASSIGNMENT

DRIVE
PROGRAM

WINTER 2015
MBADS (SEM 3/SEM 5)
MBAFLEX/ MBA (SEM 3)

SUBJECT CODE & NAME

BK ID
CREDITS & MARKS

OM0012 SUPPLY CHAIN MANAGEMENT

B1542
4 CREDITS AND 60 MARKS

Criteria
Marks
Q.No
1
What are the different factors affecting transportation decisions?
Description/outline of different following factors
and its sub factors in students own words
5 (1 mark each)
Carriers

Vehicle related cost

Fixed operating cost

Trip related cost

Quantity related cost

Overhead cost

Customers
o

Transportation cost

Inventory cost

Facility cost

Processing cost

Service level and fast delivery

Write short notes on risk pooling

description of risk pooling

importance of risk pooling in SCM

types of risk pooling

Location pooling

Product pooling

10

5 (1 mark each)

1
listing and summarization(along with 8(2 marks each)
suitable examples for each) of four

Total Marks

10

Lead time pooling

Capacity pooling

Read the following case study and answer the questions given the end of the case
study
Best Supplier Relationship Management: Jaguar Land Rover and Gobel & Partner
Jaguar Land Rover production line
8 October 2013 | CIPS Supply Management Awards 2013
Jaguar Land Rover (JLR) transformed its position in customer satisfaction surveys and
enhanced the quality of its products through an innovative partnership with a key
supplier.
By re-evaluating the way it deals with quality control and suppliers, Jaguar took top spot
in the 2012 JD Power Survey for customer satisfaction and Land Rover raced up the
chart. In 2008, the survey put Jaguar at nine and Land Rover at 34 for quality,
described by JLR as clearly an unsatisfactory situation for a premium brand and stated
that something had to change.
Component quality was identified as the key issue for some suppliers the proportion of
rejected parts was as high as 65 per cent and some finished vehicles were being put
into containment due to faulty components. This had knock-on effects including
delayed customer shipments, production line stoppages that cost 2,000 per minute and
the risk that faulty parts could make their way into completed vehicles.
At the time, JLR was working with 16 different suppliers across three factories to
undertake parts rework and containment, resulting in differing quality regimes and an
inability to share data across the company. As a result, there was no single view of any
given suppliers quality history, which made preventative action impossible. A new
director of quality was appointed who launched a review of quality across the supply
chain that identified potential improvements that could be made to the inspection of
incoming components from suppliers. The Inbound Materials Project was established
and the 16 suppliers dealing with quality control were reduced to one Gobel & Partner
(G&P) who saw it as an opportunity to introduce innovations and boost investment in
its Qtrak quality management system, which totals 2 million to date.
This evolved into a partnership between JLR and G&P. Both realized that prevention
was better than cure, and through Qtrak they could identify the component suppliers
causing the most problems. Those with a recurrent history of reject parts were subject to
a more rigorous inspection regime. G&Ps aim is to ensure no faulty part ever arrives at
JLR production facilities and they now work on the premises of high-risk suppliers to
review quality processes. The firm is also working at JLRs new plant in China to ensure
the right quality approach is in place from the beginning.
Over six years, the relationship between the firms has evolved from a traditional
adversarial situation, where G&P were treated as one of a number of commodity
suppliers, to one where the two are working to the same goal of bringing premium
quality to premium brands. Wolfram Leidtke, JLR board quality director, said: JLR is a

premium brand and accordingly needs to have premium quality vehicles. Procurement
has aligned with this objective. G&P has been able to transfer their global knowledge
and work with JLR to develop a new approach to incoming material quality and the
results are starting to speak for themselves.
Source : http://www.supplymanagement.com/analysis/features/2013/best-supplier-relationshipmanagement-jaguar-land-rover-and-gobel-partner/

Question:
Illustrate the role quality played as criteria in JLR choosing its supplier Gobel & Partner.
Explain the importance of Gobel & Partner in the supply chain
Students should illustrate based on:
8 (2 marks each)
10
How critical is component quality to JLR

What were the effects of bad quality

What were the issues JLR had to tackle

to working with 16 suppliers

The steps taken by JLR to improve

quality

Importance of the supplier

4

2
MTR Foods, the Bangalore-based food processing company, is planning to utilise the
services of a third party manufacturer for the first time. The contracted plant in Mathura
for producing vermicelli is expected to give it a push in the northern and eastern markets
where it is trying to expand its presence. The company is also planning a capacity
expansion in spices.
MTR has nine plants in Bommasandra Industrial Area in Bangalore which caters to its
product categories like spices and masala, beverages, vermicelli and frozen food. The
company has so far produced its brands in house.
The plant in Mathura would help us supply to the north and eastern parts of the country.
It would help us source wheat faster and also trim freight costs by 6-7 per cent, said
Sanjay Sharma, chief executive officer, MTR Foods.
Source: http://www.business-standard.com/article/companies/mtr-foods-to-outsourcemanufacturing-110041200084_1.html
Which according to you may then be distribution strategy used by MTR? Justify your
answer

Explanation on the facts fitting the 3

strategy

Identification of the strategy

Rationale behind choosing the strategy

Conclusion

10

Explain any four direct benefits of outsourcing with examples.

any four of the following benefits(reason why
10 (2.5 marks
this is a benefit , description of the benefit and
each)
example)
Focusing on core competency

Reducing

the

expenses

10

of

manufacturing and logistics services

Reducing the head count of hourly

employees and management

Improving the accuracy

Improving flexibility and wider range of

services

Getting access to global networks and

better technology

Improving services

Improving quality

Reducing

capital

investment

and

increasing cash flow

6

Describe the supplier integration approach.

Explanation of the stages of supplier integration 10 (2.5 marks
with suitable examples
each)
None

White box

Gray box

Black box

10

Note Please provide keywords, short answer, specific terms, specific examples and marks
break - up (wherever necessary)
Note Answer all questions. Kindly note that answers for 10 marks questions should be
approximately of 400 words. Each question is followed by evaluation scheme.

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