HARLEY-DAVIDSON
Introduction:
In the business market there are many different organizations, but those people who have good quality, design, and processing process with low priced and meet market requirement they wins like Harley-Davidson.
The main purpose of Harley- Davidson was to concentrate on Just In Time manufacturing, Supply String Management and Total Quality Management in order to contend with other organizations. In this case examine the emphasis is about how they developed the Supply Chain Management, Distributor Marriage, timed delivery and Quality. How writing of information help them to apply just in time at supplier end, its quick record, problems it got faced in mid 70's, the remedies, the steps used to overcome the downfall, with emphasis on Supply String Management, and last but not least it concludes with the conclusions and learning's from the entire case study
Brief Background:-
Harley Davidson is an American manufacturing motor cycle company that was built-in 1903 by William Harley and publisher Davidson. In year 1970 your choice taking power was at the hands of cooperate parent or guardian company North american machine and foundry at that time Harley Davidson was singular surviving company who were making heavy weight bike in united states. AMF wanted to take the benefit of the marketplace so opt to increase the development neglecting the value of supply string which made the product quality walk out control. In 1981 new management was appointed by Harley Davidson to escape this problem. Better procedures towards better Bikes was their goal.
Problems encountered by Harley Davidson:-
In the middle 1970's H-D acquired tough times, the marketplace share was lowering because of the low quality of the product. After an in depth analysing it became noticeable that overproduction has led to a defocus from the Resource Chain Management. The quality of the H-D product which was the basis because of their success did no more exist. The reduced amount of the Inventory Converts led to a top level of Securities. While using demand decreasing and the high stocks and options the company was cash ridden. The recession also had its effect on low results of the company. Another problem was they had no control over the suppliers and supplier quality was unstable which put into customer dissatisfaction.
Remedial Measures Utilized:-
In 1980 Harley Davidson really got bad time therefore the management decided to do something by organizing there company with new start, management launched production plan which increased inventory changes. Inventory Changes is define as the ratio of cost of goods and average inventory.
The inventory dropped to 4 million Dollars, with high level of productions. Inventory converts increased from 16 to 28 million per year.
Supplier base was reduced from 320 to 120 it leads to focus on company and better romantic relationship with dealer.
Set up times were reduced significantly, it made smaller lifesize feasible which increased the creation.
Harley Davidson unveiled SUPPLY String MANAGEMET and JUST IN TIME MANAGEMENT that assist to achieve constant improvement in quality and delivery services, so there was drop in warrantee cost also helped to remove inventory.
Shift of development focus from Force (anticipating demand) to Move (giving an answer to orders).
Supplier participation program was improved to improve the product development efficiencies and effectiveness which lead to development cost and reduced amount of developed time and decrease the cost and increase product value. Suppliers must install JIT, Statistical Operator Control, and should work for continuous improvements. Provider development must raise the performance and capability to meet the long term resource need.
Rewards and Outcome:-
The main accomplishment of Harley Davidson is Quality and Delivery, it experienced established its foundation in the market. Release of just in time management helped these to work relating to customer needs which resulted in customer satisfaction. Ongoing improvement and bench marking the dealer helped those to improve the quality of the product.
Analysis:
Supply string management:-It can be an activity which is defined as planning of procedures, implementing the functions and controlling the procedure of the supply chain to gratify customer need as efficiently as possible. It includes production scheduling; Order processing, inventory management and customer services.
Just in Time or Man: Just in time helped Harley Davidson by eliminating misuse by using quality of uncooked materials, producing right quality of product in right place at right time. It also improves the merchandise quality, boost the productivity and reduce the cost. Harley Davidson called just in time as man (materials as needed). just in time help Harley Davidson to develop trust between suppliers, it also helped to increase inventory converts which generate the cash flow.
Principles and Strategy of just in time employed by Harley Davidson
Total quality control:-The purpose of total quality management is to give attention to client satisfaction by bettering process, high quality of product and services. Total quality may be accomplished by Employee participation program and stastical operator control.
Reducing batch size production:-small batch size creation helps to reduce inventory, reduce controlling cost, smooth development flow and improves quality of the product.
Reduce create time:-Reduction of setup time helps to make smaller and greater size doable. In addition, it increases the output and quality. Reduces inventory, space and time.
Pull system (kanban):-pull system is a way where we can control the movement production based on customer demand. In this system production is performed in small batches in case when there is any problem at any point of operation the whole production line will begin to come to avoid. Implementation of take system can help you to eliminate waste materials in handling, improve the shop living area usage and enhances on time delivery to customer.
Supplier development:-supplier development is long term relationship between customer and supplier that objective to gain both. Supplier should not be treated as exterior source but part of resource chain management. Supplier development is actually developing distributor in same way the workplace are developed, providing arranging information about product and relating supplier in design stage can improve the quality of product. Darren docemsolo trim supply string mgnt
Total employee involvement:-Each and every worker should be committed and dedicated to their work. employeer should be engaged in quality group with in the organization in order to go over and develop management concern. Quality group to encourage employee to have responsibility of their work which really helps to improve quality and eradication of throw away.
Supplier selection: The very best decision taken by the management of the Harley Davidson was proper collection of supplier. Before there were whole lot of suppliers so quality of the product was unpredictable solitary sourcing helped them to check on the defect. selection was done by better interviewing the provider and understanding dealer capability.
Supplier romantic relationship: Another important step taken by Harley Davidson was improvement of provider relationship. Their previous romance with suppliers was not that good which lead to quality and delivery problem, weak connection with supplier make a difference the business and entire supply chain. Posting information and doing problem handling programs like statically procedure control and employee engagement program helped Harley Davidson to increase the long term romance. Working with the supplier in a variety of forms improves effectiveness and efficiency of functions in an organization. Good use of relationship with the company can enhance the resource and capacity for the company and therefore it can improve market effectiveness. Harley Davidson would carry out meeting twice per annum and viewed for continuous improvement process.
Continuous improvement:-
continuous improvement is a management insurance plan that sees quality improvement as an on-going process, and increasing improvement rather than once and for all improvement efforts. It can help to enhance the supply chain all together.
Future Developments:-
Harley Davidson has varied futuristic plans. Apart from being a head in the Motorcycle manufacturing, they can be into Branding of their logos. Distributor trainings, with a detailed study of these previous strategies, problems and the way they have approached the solutions. The innovative Supply Chain Management systems that they inculcated in the organization. Also their goal is to be.
Being top notch customer
Make worlds profitable engine cycle
To have best distributor in the world
To be recognised by customer for quality, value of product, services
Key point:-
Key points that people could study from this structure are
Quality
cost
Delivery and demand
Development
Management
Quality is the main objective of the group but is should also be cost effective. The useful logistics must ensure that the delivery is on time, which in turn escalates the demand. Continual improvement of the merchandise is attained by development of research, training and dealer marriage. Management must be actively involved in strategically managing the businesses of Supply string.
Conclusion:-
From the above analysis we can conclude that how Harley Davidson regained their reputation on the market by applying Source Chain Management, just with time program and also good relation with the company helped them to improve their quality and standard of the product. Supplier quality was unpredictable in past, posting information, good arranging and educating their dealer to adjust just in time program upgraded Harley Davidson's quality, delivery and sevices. Thus applying supply chain management firm can improve their product range and make a better method for their future.
