Avion, Inc. Case Essay

What parts of the proviso cooking stove are most closely involved with the situation in this model? What is the responsibility of each part in order to maintain a smooth combine of material?They are Foster Technologies as the provider, and Avion, Inc. as the buyer. To maintain a smooth flow of material, it is the providers responsibility to comply with the buyers requirements and standards, and provide the correct quality and quantity of harvesting and service in a mly manner. On the buyers end, responsibilities include to work internally at bottom organization to determine organizational needs, to develop requirements and standards for the supplier, to select the right supplier, to comply with the suppliers requirements (making on-time payment etc.), and to overlook the suppliers performance. What initially appears to be the problem? What really is the problem(s) in this persona?The problem initially appears to be lacking of material quality and delayed delivery caused by t he scant(p) performance and communication from the supplier, Foster Technologies. The real problem in this case is caused by extremely sorry planning, ineffective communication, lack of alternative supplier sources and unsuitable organizational structure within Avion, Inc. How lenient is it to work shift suppliers? What could complicate a firms ability to with to a new supplier? It is non easy to switch supplier at all, especially when a firm has never vigilant any alternatives/ aspect suppliers.Depending on the type 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 demand will significantly narrow round off possible suppliers to switch to and a special product that requires customized machinery or tools in the production process, will likewise complicate the switch. What does it mean to get to the root cause of a problem?It means to not except to fix the problem at the moment, but also to develop a solution and strategy to continue the problem in a long run. For this case in particular, it could mean a redesign of the organizational structure of Avion, Inc., changing management and consolidating procurement, production and materials management teams. What does it mean to be a good node? Why does a buying firm want to be perceived by a supplier as a good customer? Provide specific examples of what a firm must do to be a good provision chain customer. I think a good customer gives clear and consistent instructions and expectations of the products and service receiving, is active in communicating with the supplier to ensure spotless delivery of the instructions, and comply with the suppliers requirements.Between suppliers and buyers, credibility goes both ways. Like handleed in class, it is not buyers world anymore. There is no longer only competition between suppliers, but also between buyers as well. To be a good supply chain customer, a firm must be m aking payment on-time and meet any other requirements of the supplier, convey the firms wants and needs clear and consistently to the supplier, and perform measurements on suppliers performance and maintain an open and consistent communication. apologise 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 measure upon, to communicate, and to support an objective decision making. 2. When suppliers know that they are monitored, and what they are monitored upon, it can help them to make die 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 imperturbable of interrelated activities. Goods and service, finance, and information flow in a set direction and sequence. Each step is needful for the next step to happen. Therefore, any change within a supply chain can hit 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 reduced the time of cash invested in purchased materials and components, hence to increase Avions cash flow. Just as they are a customer to Foster Technologies, there 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 volume of supply from one vendor, rather than source less volume from several vendors. Another benefit of single-source is that, it is easier and requires less resources in maintaining a relationship with a vendor. I assume firms that c hoose 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 about 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 seek solutions thirdly, discuss about next step to take and future production volume. 4. Avion, Inc. should redesign management and structure within its organization, to prevent similar problems in the future.