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Research on the Improvement of the Management Mode of Supply Chain for HTL Aerospace Enterprise

Author: LiLi
Tutor: ZhangJinShan
School: Jilin University
Course: Business Administration
Keywords: Aerospace enterprise Supply chain management Team organization
CLC: F407.5
Type: Master's thesis
Year: 2010
Downloads: 109
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Abstract

In nature, the supply chain management is a kind of integration work for resource, by virtue of the compound forces of the different organizations inside the supply chain , to improve the management achievement. The supply chain management can immediately respond market needs by fully taking advantage of enterprise outside resources, at the same time, the management can prevent from some problems due to self-investment, such as long construction period, high risk, etc., to make product gain advantages in cost, quality and market response, therefore, to increase the profit and market share. Furthermore, the aim of the supply chain management is a prospect of multilateral win, not only can the core enterprise of the supply chain benefit, but also the member organizations inside the supply can profit.As my information retrieval, at present, the supply chain research for aerospace enterprise is not much. But in view of the industry characteristics of aerospace enterprises, there are some special requirements for the supply chain management , which has to meet the requirements such as high integrated accordance, high reliable control and good secret keeping. By now, the domestic supply chain management can not meet the practical needs of the supply chain development of aerospace enterprises. So reinforcing the supply chain research for the aerospace enterprises has significant value. Through the research and analysis to HTL Company, combining with the practical situation of the company, the detailed measures and implementation plan are presented, in order to construct the company accordance supply chain, then to enhance the development of the HTL Company, and then to contribute to the development of the aerospace industry, which is the purpose of writing this article. As to the supply chain of HTL Company, setting up an accordance supply chain and conducting supply chain management, the company can increase the core competitive force, and can make the company develop more stably. For the present, the construction of the material distribution supply chain has gained some achievements, but also has some problems. The existence of these problems makes the material distribution supply chain of the company not be able to fully bring the function of resource integration into play, then gradually not be able to meet the development of aerospace industry under new situation. So deeply researching the material distribution supply chain for this company has great significance for the development of the company.HTL Company, a traditional military industry enterprise, established in the year 1956, is the earliest manufacturer for aerospace product, affiliated to China Aerospace Science and Technology Group. In 2000, through reorganizing, Group A divided itself into military manufacturer part and civilian manufacturer part. From that time on, HTL Company became a limited company specialized in military product development, research and production. In the many years of research and production practice, the company forms a complete system of design, manufacture and service for the portable ground-to-air short-range missile and military shelter cabin, and forms a manufacture and service system for the autopilot, gyro, etc. of the coast-defense short-range missile. Now, the company has grown up to be a core aerospace enterprise for the missile final assembly and general design. The company takes the research and manufacture of the low-altitude short-range air defense missile weapon system as the principle work, insisting on self development and scale production , and keeping the development strategy of“batch-producing one generation, researching one generation and researching one generation in advance”. Meanwhile, the company deepens and widens the application of its main product. The business of the company involves many fields, such as development, research and manufacture of aerospace products, manufacture of mechanical equipments, computer development, reparation of instruments and apparatuses, physical and chemical inspections and tests, technical consultation, etc.At present, HTL Company adopts the management mode of multi-department purchasing. This mode is beneficial in the aspects such as bringing the specialty standard of the functional departments into play, monitoring departments each other, guaranteeing the transparency of purchasing work, and eliminating corruption activities, so purchasing cost is really reduced. But under the influence of the purchasing pattern of traditional enterprises, some problems emerges from the mutual purchasing, the followings are the matters:1. The managing by different departments appears in multi-department purchasing , causing the functions of the departments to be not clear. The multi-department managing brings the redundancy in purchasing link and the waste of time, increasing the purchasing cost.2. The multi-department purchasing is liable to cause the conflict among different departments. Because the emphases of achievement checking are not same in different purchasing departments, the benefit focuses of different departments are not same, so the viewing angles of different departments are different, causing role conflict. It’s apt to result in a situation that different functional departments emphasize their own aims but ignore the general aim of the whole enterprise. In order to protect individual benefit, it is liable to see that the different departments evade and dispute each other, and it is hard to please all, so the purchasing decision is difficult to settle.3. The procedure for approval of multi-department purchasing is complicated, influencing the purchasing progress, so the good purchasing opportunity will be lost, even causing serious consequences such as the delivery time can not be ensured.From the above we can see that the disadvantages under traditional purchasing mode have impacted the purchasing directly and negatively.Comprehensively surveying the present state of the supply chain management of HTL Company, we can see the following disadvantages:The consciousness of supply chain management comes late into being. The statistical work continues adopting traditional manual operation. The supply chain management system inside the company has not been established yet.Frequently, the representations of material demands are of special purpose. The ratio of special protocol orders is much, while the ratio of universal material demand is low.The hardware such as infrastructural supporting facilities is poor. The idea and method of management remains to be improved.Let us analyze from the main link of supply chain activities—purchasing. The problem existing in purchasing work can be concluded that the purchasing organization setting and the policy regulating are not reasonable, causing the purchasing information to be not symmetric and the evaluation for purchasing work to be difficult, so it can not adapt to the need of modern supply chain management. In order to change the current status, it is necessary to quest for a new organization mode, namely team organization construction. The members in the team are from different related operation departments; the members in the team generally use the method of collective participation and parallel work for finishing the work which would be finished by the method of separate and serial mode by different departments and during different periods in the past. In fact, the team is a unified organization on a higher level of self-determination and cooperation, being able to eliminate the disadvantages of traditional section organizations , such as communication among different departments, too trivial work divisions, slow decisions, poor flexibilities, etc., able to effectively correct the information dissymmetry in business management, and able to benefit for shaping the work atmosphere of self-determination, innovation and cooperation. The organization pattern has become the preferred internal organization form for supply chain management of many enterprises. In addition, the enterprises establish information center, to strengthen the collection and management for the information of supply chain management, sale management, etc. In order to provide reliable interior and exterior market information to high-level directors in the enterprises, the supply chain management center is established, for researching market, collecting material supply and demand and price information of market and the manufacturer of similar products , comparing the material information to that provided by purchase department, and providing information basis to enterprises in regard to the managing to suppliers, purchase decision, achievement estimation of purchase department, etc.At the same time, the management procedure flow for purchasing should be optimized and the examination for purchase management should be strengthened. Based on the above reasons, in order to change the situation of lagged supply chain management, considering software and hardware environments, the near term plan for supply chain management for HTL Company is presented.To integrate inner resource, optimize flow and purchase organization structure, simplify purchase examination and approval flow, constitute reasonable and effective purchase examination system, and establish internal harmony system for negotiating and treating all kinds of problems during purchaseTo establish tactic cooperation relationship between the enterprises of supply chain and enhance the core competitive force of the enterprisesTo conduct an overall layout for the information construction of HTL Company, establish and perfect the idea that information system is the necessary condition for the sustaining development of the company, accelerate information infrastructure construction, and make the information construction of the company reach the level on which the information construction will be able to adapt the accordance supply chain management of China Aerospace Science and Technology Group.

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