Avion, Inc. Case Essay

What parts of the bring cooking stove are most closely involved with the situation in this mooring? What is the responsibility of each part in order to fight back a smooth mix of material?They are Foster Technologies as the supplier, and Avion, Inc. as the buyer. To maintain a smooth flow of material, it is the suppliers responsibility to comply with the buyers requirements and standards, and provide the correct prime(prenominal) and quantity of product and service in a timely manner. On the buyers end, responsibilities include to consummation internally within institution to determine organizational necessarily, to develop requirements and standards for the supplier, to select the right supplier, to comply with the suppliers requirements (making on-time recompense etc.), and to overlook the suppliers execution. What initially appears to be the paradox? What really is the task(s) in this case?The problem initially appears to be lacking of material quality and delayed delivery caused by the unworthy performance and communication from the supplier, Foster Technologies. The real problem in this case is caused by extremely poor patternning, ineffective communication, lack of alternative supplier sources and unsuitable organizational structure within Avion, Inc. How well-to-do is it to switch suppliers? What could flummox a firms ability to with to a new supplier? It is not easy to switch supplier at all, especially when a firm has never prepared either alternatives/ washbasindidate suppliers.Depending on the flake and quantity of products needed, and required delivery time, it might be less easy for a firm to switch. For example, time constraint and/or large play get out signifi grasstly narrow down possible suppliers to switch to and a special product that requires customized machinery or tools in the issue process, will alike complicate the switch. What does it mean to get to the root cause of a problem?It agency to not only to fix t he problem at the moment, still also to develop a solution and strategy to prevent the problem in a long run. For this case in particular, it could mean a redesign of the organizational structure of Avion, Inc., changing prudence and consolidating procurement, production and materials management teams. What does it mean to be a adept customer? Why does a buying firm want to be perceived by a supplier as a goodcustomer? Provide particular proposition examples of what a firm must do to be a good generate chain customer. I think a good customer gives clear and consistent instructions and expectations of the products and service receiving, is active in communication with the supplier to ensure accurate delivery of the instructions, and comply with the suppliers requirements.Between suppliers and buyers, credibility goes both ways. Like discussed in class, it is not buyers earth anymore. There is no longer only competition between suppliers, and also between buyers as well. To be a good tack on chain customer, a firm must be making payment on-time and meet any other requirements of the supplier, convey the firms wants and needs clearly and consistently to the supplier, and perform measuring sticks on suppliers performance and maintain an open and consistent communication. Explain the role of performance measurement in managing supply chain activities. Performance measurement in managing supply chain activities is extremely important.1. The results are fact-based rather than subjective. They are clear and quantifiable, which means they are easy to follow, to evaluate upon, to communicate, and to support an objective decision making. 2. When suppliers whop that they are monitored, and what they are monitored upon, it can help them to make better performance. 3. The results can easily be used to compare performance of suppliers. Why can changes within a supply chain disrupt the normal flow of goods and services within a supply chain? Organizations within a supply chain are linked together, and a supply chain is composed of interrelated activities. Goods and service, finance, and information flow in a find direction and sequence. Each step is necessary for the next step to happen. Therefore, any change within a supply chain can reach the normal flow of goods and services.Why might Avion want to reduce the lead times on its purchased materials and components? I think one reason is to rock-bottom the time of gold invested in purchased materials and components, hence to increase Avions cash flow. Just as they are a customer to Foster Technologies, thither must be customers on the other end of Avion, Inc. that might be demanding after delivery. Why do firms single-source contracts?Single-source contracts can be cost effective. It will be lower cost tosource a high gaudiness of supply from one vendor, rather than source less volume from several(prenominal) vendors. Another benefit of single-source is that, it is easier and requires les s resources in maintaining a relationship with a vendor. I assume firms that choose to single-source contracts are usually smaller in size, and they use this way to be conserve resources. Develop an action plan for Avion that addresses the issues presented in this case. Be prepared to fully explain your recommendations.1. Susan Dey should work with Avions production group regarding monthly projected volumes, delivery time frame, and requirements to the highest degree altering final material release quantities. 2. Bill Mifflin should begin identifying alternative suppliers, in case contract with Foster does not continue. 3. Kevin ODonnell should work with Fosters production manager, firstly, to establish a sincere communication secondly, address issues written in the memos and letters from the production manager and adjudicate solutions thirdly, discuss about next step to take and future production volume. 4. Avion, Inc. should redesign management and structure within its organizat ion, to prevent similar problems in the future.