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Research on Supply Process Improvement of FAW-VW Spare Parts

Author: WangJian
Tutor: SunWei;HeGuoAn
School: Jilin University
Course: Industrial Engineering
Keywords: Automotive spare parts Spare parts dismantled degree Approval process of localization Spare parts ordering process
CLC: F426.471
Type: Master's thesis
Year: 2007
Downloads: 229
Quote: 1
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This paper mainly studies the supply process and improvement of FAW-Volkswagen’s spare parts. Discussion is carried out from the followingfive aspects:Present situation and exist problemsAnalysis of the main causesDesign of the solutionsPlan implementation and effect analysisQuestions from the implementationFrom five aspects above we completed the entire project with the knowledge of project management. By improving the supply process and supply ratio, we guarantee our company’s profit of 2006, meanwhile, our professional ability are enhanced.In the underside it will do detail explaination about spare parts and their causes, their solutions, their effects are as follows:1)shortage of several kinds of supply parts, including CKD part、self-made part、local part.The shortage of CKD parts is always there, although not serious. The main reason is the long supply period (around 3 months), so the key solution is how to shorten the supply period and makes a feasible storage plan.The supply of self-made parts are quite sufficient before 2006, and the current problems results from the instability of auto production plan. With its stability, this question isn’t a question any longer.The shortage of self-made parts are the vital causes of the current situation, with the increasing of product varieties and output, it may becoming worse and worse, and also has negative effect to the company’s whole profit. So as the only purchasing management department of the company, purchasing department should spend more time on it. Avoiding urging them everyday, they should choose the supplier with adequate spare parts supply ability at the very beginning. After all, giving them press after shortage is no use to the problem.2)1824 kinds out-cooperation part、33 kinds self-made parts, there is no price in system now..This problem source comes from lies in related section can’t control OTS approbation time point and the information can’t spread to supply department and spare parts.The item communicate with business section after discuss, finally found out the accurate time under the IT system PL@T help, and attaining information share,saving information flow time,this problem almost do not happen again. .3)The extent of part breaking up could not reach the requestThis problem mainly from the contradictory between expectation of customer and actual performance standard .The spare parts breaks up to have certain standard, this can be solved at reasonable premise. What did the Spare parts section do is attaining to break up degree to maximize under the possible premise to as far as possible .4)the spare parts(the EOP, technique change, year type) of stop production providing has difficulty.This problem the main difficulty puzzling the spare parts for many years. There is no good solution to deal with this problem .Many lacking of goods due to stop- production parts can not find the suppliers ,and it will affect the sale of complete automobile for long time ,After the item and related department making great efforts for half year, they tidy up every spare parts in stop production catalogue, and all find out solution path, but do not take out a essential solution. According to the beach mark between the same industry, Shanghai VW also have no good solution, too. But in the German VW spare parts center, through the operation for several decades, this problem has already been solved through the establishment EOP spare parts production factory, there is important use for reference value to us.5)The special request of the spare parts state(packing, to spare parts of special processing, deliver goods) can’t be satisfied.Through questionnaire investigation,.According investigating questionnaire we know that even raise the purchase price(plus special packing expense) of spare parts and the supplier also doesn’t wish to provide the spare parts the special packing, it is mainly for trouble .After seriously discussing with spare parts section ,they decide to solve it by themselves ,and this problem is basically solved.6) The suppliers have the behavior of personally export toward the market, but don’t promise the spare parts supply7) Some supplier have the behavior of personally purchasing, they gain sudden huge profits as saying that the spare parts sale is not good and sell fake parts.The two problems above are all drove by benefits to and belong to severity to breach contract behavior .All these behavior make the host factory suffer a huge benefits damaged lose with image. The item make report to company leaders to suggest strengthen the audit toward the supplier and the dealer, and strictly keep a by rule performance punishment .These two problems all include alleviate of certain degree, but audit currently of the work should grow to grasp unremittingly ,and can’t become impractical.8)Present procedure document and related workflow performance badly. This problem can be analysed from three aspects, on the other hand procedure document can the performance degree be bad and rule complicated, the link is much more heavy;On the other hand, related the section do not pay enough attention, don’t carry it out at all; at last, the related procedure document lack, in the work root have no the chapter can be followed, and result is in disorder.when the project is completed, there are two document modificated,and rewrite one document. Next step is document implement.9) after-sales process of outside collaboration parts need optimization and transparencyBecause the process opaque, supplier will feels unfair, they make reprisals by stopping spare parts supply .it will break the cooperation relation between company and supplier .First of all,after investigation, moderate related section and leadership agree to return all counterclaim parts to the supplier (this is the big problem in the last years suppliers has been complaining ) and secondly drafted to complete《Process of domestic outside collaboration parts after sell claim》, making this work can be according to law.10)The strength of investigating to supply goods spare parts is not enough The power which investigates the index sign related production livings too greatly, the power of related spare parts is heavy too small, the supplier doesn’t value at all .Under effort of the item set and the purchase supplier, 2007 is provided to have already increased to correspond spare parts item in the goods contract, and enlargement in investigate the index sign the power of spare parts, from 4% enlarge to 10%.11)the spare parts plan establish of tool and means falls behind and influencing the plan implementThe plan of want the goods establishes to without professional system support, there is no science and sometimes make the supplier hard to accept. Spare parts section has been appeal this problem, the opportunity to lend this subitem solved spare parts order first to issue to ask for help of to produce order platform a problem. carry out PHACT again currently, IDIS etc. professional spare parts system, believe along with the continuously extend of the spare parts business, the IT support and influence will also continuously rise.12)individual spare parts price establishment is not reasonable, compare with market ,it has no competition abilityPractice a simple price markup rate a method, the management like a knife slices. The price draw up not scientific, the market competition is placed in bad situation. Just in the establish of PHACT and spare parts list price set of implement be exclusively work out this problem of, it can see some result currently.Gathering the spare parts supply process problem above, reason analysis, project implement and effect of summary review, we will emphases about some thought from this item derivation of some to spare parts workFirstly,whether the organization constitution of spare parts and management’s method can satisfy in the future develop demandIn the beginning of year , spare parts management realize managing according to brand, so far still in the implement, the purpose is to promote the brand image of AUDI. Secondly, the terminal solution of spare parts of EOPThirdly,how can it be more science about the calculating spare parts supply ability.Fourth, the extent of the company paying attention to spare parts business value top and bottom.Fifth, the whole level of pare parts management need an exaltationThe exaltation includes to use the exaltation of the tool and the exaltation of the business level of manager, the two the exaltation speed decides the spare parts business development speed.

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CLC: > Economic > Industrial economy > China Industrial Economy > Industrial sector economy
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