Professional Documents
Culture Documents
Assignment - A
Q1: (A) Define logistics. Discuss and elaborate various components of logistics
management.
(B) Describe the concept of total cost analysis and logistics.
Q2: (A) What is supply chain management? What are the various flows in a supply
chain?
(B) What are the functions and contributions of supply chain management?
Q3: (A) What is meant by customer service? What are its futures?
(B) What are different elements of customer service costs? Explain its
fundamental trade-offs.
Q4: (A) Discuss the role of information in overall performance of logistics and
supply chain management.
(B) What are various components of logistics information system
architecture? How does LIS facilitate improvement in logistics decision making?
Assignment - B
Q1: (A) Discuss the nature and scope of storage, warehouse and distribution
centers.
(B) Discuss the various functions of a warehouse from the logistics and
supply chain perspective.
Q2: (A) Describe the role of transportation in the success of logistics and
supply chain.
(B) What are the issues that should be considered by a logistics manager
in selecting a mode of transport?
Case Study
Maruti Udyog Ltd (MUL) the leading manufacturer of cars in India is a leader in
supplier relationship management. Its turnover was Rs. 12481 Cr. And its profit
before tax, was 1750 Cr. In 2005 - 06. It sold 561822 vehicles in 2005 - 06 and
captured a market share of over 55%. It deals with about 7100 components for its
11 major models. 70% of its suppliers buy numbers are located within 100 km
radius of its Gurgaon plant. They meet more than 80% of Maruti's requirement by
value.
Maruti has 220 approved vendors who supply the major component. The top 80
vendors supply 86% by value of their purchases. The rest of the vendors supplie
only 14%. It has also signed joint ventures with a large number of its vendors.
Of the 86% components supplied by vendors, joint ventures supply only 34%; the
rest of the 52 % by value is supplied by other vendors. These 80 vendors are
considered strategic partners. Only 20 to 30 of them are Maruti joint ventures.
Gemba means taking a look to see what is happening at the site. Gembutsu means
examine the affected piece to understand what exactly the defect is. Genjitsu
means discussing under what conditions this has happened - something like a
brainstorming session. Typically a team from Meerut along with the supplier team
visit the supplier's shop floor has look around noting down points. They then
have brainstorming sessions at the Meerut office. At the end of the
brainstorming they come out with various points relating to improvements in
productivity, quality and cost.
Meerut also has constituted a group called Maruti center for excellence. This is
a team which continuously goes to suppliers to upgrade team. It audits the
workings of its suppliers and comes out with a spider chart. The spider chart
has 22 points. Each vendor is evaluated in these 22 points. Additional business
is promised on the next new model to vendor who scores over 605 on the spider
chart. Every vendor really tries to make sure that he goes above this mark.
Apart from this it has also started second tier improvement in a very big way.
This was the latest initiative it took up a year ago. The result has been that
the second tier vendors quality has also gone up. It has also started "green
initiatives" accordingly all packing has been converted into reusable packing.
It recently introduced a practice to check the pollution levels of all the
trucks getting into Maruti; if pollution levels were not right, then the trucks
were sent back. This made its vendors understand that Maruti cared about the
environment.
Further, it follows the Kaizen theme which means to make it smaller, fewer
lighter shorter and beautiful. It follows this theme in its plant and has been
continuously teaching this practice to its vendors. It conserves the usage of
material of yield improvement. Moreover along with CII and USAID it has started
a program to help its suppliers get ISO 14000 certification. It has also started
a program on ELV compliance. Though this is not required in India, the idea is
that by the time the requirement comes to india, Maruti's vendors will all be
sufficiently equipped to take care of it. It also has a vendor finance cost
reduction program. It has lined up with banks to see that the loans of its
suppliers are transferred to lower interest rates. Through these initiatives
Maruti has become more agile and leaner.
In 2005 - 06, Maruti trained around 16 vendors and ultimately the savings of man
hours per day come to 1580 man hours which has resulted in a saving of over 1cr.
Rupees per annum. It was able to reduse component costs by 29% on the alto alone
from 2001 to 2005.
Questions:
Q-3: Discuss the kind of relationship Maruti adopted with its vendors.
Q-4: What are the methods adopted by Maruti to achieve supplier relastionship?
Assignment - C
8. All of the following are post transactional customer service elements except:
(a) Installation, warranty, repairs, etc.
(b) Customer claim, complaints and returns
(c) Stock out level
(d) Temporary replacement of products
13. supply chain conflicts can be reduced by all of the following except;
(a) Use of power by the dominant partner
(b) Involvement by investment
(c) Information sharing
(d) Transfer of technology and skills
14. which of the following is not a key output of the logistic system?
(a) Creating competitive advantage
(b) Time and place utility
(c) Creating proprietary asset
(d) Increased cash flow
20. The internal web of an organization that allows only the internal users to
access and share data is called:
(a) Intranet
(b) EDI
(c) Extranet
(d) Internet
29. Mode of economic surface transportation for bulk solid material over a long
distance is:
(a) Rail
(b) Road
(c) Ropeways
(d) Conveyors
30. Inter model transportation system arising out of the coordination between
roadways and railways are known as:
(a) Piggyback
(b) Fishy back
(c) Train - ship
(d) Express cargo
32. Which of the following is not true for Air Way Bill?
(a) Receipt of goods
(b) Contract for affreightment
(c) Negotiable document
(d) Issued by carrier
36. Penalty charged by a carrier for not clearing a consignment from their
warehouse during the allowable time limit is known as:
(a) Damage
(b) Demurrage
(c) Liquidated damages
(d) Penal charges