NAVISTAR SUPPLY MANAGEMENT

2137 WordsAug 29, 20159 Pages
Executive Summary Our Chatham factory is a part of Navistar International and producing Navistar’s world famous premium conventional heavy trucks. As an assembly supervisor I have observed that our Just in Time (JIT) assembly procedure were frequently disrupted due to incomplete supply of “Kits” by our key supplier Trimco Industries which contains interior trim parts. Our company is facing challenges to uphold our company strategy “do it right first time”, production of quality trucks and meet delivery schedule. My studies on 1555 short supply cases revealed that 95% of them could be avoided by Trimco which did not have experienced employees, efficient quality control measures and proper supply management system. We also failed to…show more content…
Root Cause Analysis Our Chatham factory is manufacturing trucks for its customers ranged from no-frill models to highly customized units for last 17 years. Customers were designing their won trucks which represent 50-80 percent of production volumes. Our technical department spent months to decide manufacturing procedure and accessories. Customers were intolerant of delays, quality problems or other factors that failed to meet their expectations. Our company gave priority to the quality which came before costs. Top management supported all of our initiatives that improve quality, production process and delivery. Our QS9000 certified key supplier Trimco were supplying parts with incorrect specification, defective and damaged parts including frequent short supply of those parts required for interior trim of the trucks. Those resulted reordering of parts, additional material handling, over time for post-assembly installation and the delay in the delivery of the finished truck to the customer. Our company is facing challenge to uphold our company strategy “do it right first time”, production of quality trucks and maintain delivery schedule. To find out possible causes of interior trim supply problem, I have observed the long production line, supply chain operations, shipping and receiving, monitoring and control in place of Trimco as well as our own company for last seven months. My analysis of collected data reveals following causes behind 1555 particular cases of

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