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Supply Chain Planning and Management in Assembly Line Automobile Industry

Karam Singh, Jagmail Singh

Abstract


Yamaha Motors Faridabad has changed the world with their production system. By removing activities in the manufacturing process which were not adding any value to the product, the company could become agile and offer products to the customer with short lead time as well as to a low cost. Companies in other countries needed to change their manufacturing processes in order to stay competitive, and a western variant of the production system used by Yamaha Motors was developed. It was named lean manufacturing. Supply chain management is based on the same concepts as the Yamaha Motors Faridabad and focuses a lot on eliminating non-value adding activities, so-called waste. Waste could come in many different shapes but could, for example, be transportation, overproduction, assembly line management and inventory. Previously, the company has not been exposed to a lot of waste in their manufacturing processes. Besides performing a comprehensive analysis of the current state, the study also includes developing suggestions of a future state with new layout, material carriers and concepts on how to signal for material between different areas. The scope of the study is the operations inside the plant and is kept on a high-level perspective. The research approach to this study has been a deductive approach with a focus on collecting quantitative data and the strategy has been to conduct a single case study with a holistic design. Furthermore, much of the collected data have been primary data and this is one of the reasons why the quality of this study is considered to be high. With the help of supply chain tools such as new assembly design, several improvement areas could be identified. The new state has been several benefits to the company.

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