BJMP 5023 OPERATIONS AND TECHNOLOGY MANAGEMENT

LECTURER : DR PM Dr.Norlena Hasnan

GROUP PROJECT : CASE STUDY ON LOCAL CAR

MANUFACTURER
1. Liau Wei Xiong (SEAN)
822046
2. Rajeswary Ganajoo
821443
3. TAN YEE LEE (ELLY)
822052
One morning in Mr Kamal office…
Afternoon in each department after received
notification of urgent meeting…..
Supply Chain Management & Production Planning department
 Mr. Hashim was briefed by his team that it is impossible to increase the production from 300 units
to 1880 units…
 Short of spare parts as the spare parts are delivered from overseas.
Sales department
 Started to receive complaint from dealers and customer on the delay in delivering Sept’16 Order.
Demand planning department
 Ms. Su reviewing the documents & the inputs she got from her staff…
Purchasing department
 Mr. Marul struggling due to suppliers could not react immediately… It usually takes 3 – 4 months
to get spare parts since it is from overseas manufacturers.
During the Evening Progress Meeting….
 Production Forecast of New Persona (Sept 16 – Dec 16)

New Persona Sept' 16 Oct'16 Nov’16 Dec’16

(Domestic) Is Var Was Is Var Was Is Var Was Is Var
Was

200 200 0 260 220 -40 60 60 0 140 50 -90

1.6 Standard MT
(8%) (8%) (0%) (10%) (6%) (-15%) (2%) (2%) (0%) (4%) (1%) (-64%)

1,650 1500 -150 1400 1100 -300 820 840 20 910 1100 190
1.6 Standard CVT
(66%) (61%) (-9%) (55% (30%) (-21%) (26%) (25% (2%) (27%) (30%) (21%)

500 450 -50 600 450 -150 360 360 0 490 500 10
1.6 Executive CVT
(20%) (18%) (-10%) (23%) (12%) (-25%) (11%) (11%) (0%) (15%) (14%) (2%)

150 300 150 300 1880 -1580 1940 2160 220 1820 2000 180
1.6 Premium CVT
(6%) (12%) (100%) (12%) (52%) (527%) (61%) (63%) (11%) (54%) (55%) (10%)

Sub total New -50 1090 240 290

Persona ) 2500 2450 2560 3650 3180 3420 3360 3650
(-2%) (43% (6%) (7%)
Graph Production Forecast of New PROTON Persona (Sep 16 – Dec 16)

2500

2160

2000
2000 1940
1880
1820

1650

1500
1500
1400

1100 1100

1000 910
820 840

600
500 490 500
500 450 450
360 360
300 300
260
200 200 220
150 140
60 60 50
0
Was Is Was Is Was Is Was Is
Sept' 16 Oct'16 Nov’16 Dec’16

1.6 Standard MT 1.6 Standard CVT 1.6 Executive CVT 1.6 Premium CVT
 SCM & Production Planning Challenges

 To accommodate on the order delivery to the level that the system (supply chain network)
can take up
 To recover timely the shortfall quantity (raw materials/ child parts so customer do not
cancel order
 Over demand at the end of financial year to meet KPIs. Challenging to beef up production
due to capacity constraint
Demand Planning Department

 forecast demand was carried out based on market survey

 market survey was carried out to understand the market’s
preference.
 The market survey usually in questionnaire form or interview
session and the market survey group from their existing customers
 The demand forecast is just an estimation figure and not necessary
to be accuracy
 PURCHASING TEAM

PROBLEM STATEMENT WHAT CAUSE THE ISSUE

Increase in Demand and requiring Inaccurate Forecast demand provided by
increase in request for spare part to demand planning department.
manufacture more cars

HIGHLIGHTS

• Procurement process based on company’s procedure to select suitable and

capable vendors. Agreement has been signed with all spare part vendors and
SLA indicates delivery time is within 3 – 4 months to get spare parts since most
of it comes from overseas manufacturers.
• Suppliers will cut down the forecast order as forecast order provided always
much higher than the actual order based on their previous experience.
• Supplier will demand additional charges to speed the delivery
After a short break …
 Current issue …

 Send out a proper communication to existing buyers

 Ensure front liners aware of the issue
 Convert THREAT to OPPORTUNITY
 Monitor vendors closely to ensure they keep buffer
stocks
 Talk to head of finance
 Precaution
…

 Appointed 3rd party to conduct market

survey

 Maintain the good relationship with

vendors
 Questions:-
1. What are the factors that contribute to the main problem (long
waiting time by customer) facing by the local car manufacturer?

2. Do you think Proton has good relationship/communication

with vendor?
3. Do you think the solution or strategies above provided
can be success? Why?