感觉到速度的设计简洁微立体摩托赛车产品市场分析报告模板49

1、managing a lean supply chainCASE STUDY on JENNYS CYCLE COMPONENTS Team Number1234567890imaTiresWheelsFront ForkHandlebarsPowerSteel Tubing1.Several-Tire Slowdown on Income2.JIT Strategy3.Special Order4.Limited Profitability5. Product Quality？1/ Why shall we use several-tier suppliers?2/ What about J

2、IT strategy?3/ Shall we accept the new orders?11Several Tires SupplierJIT StrategySpecial Order1/ OEM Advantages2/ JCC Challenge1/ Benefit2/ Limitation1/ Financial Impact2/ Non-financial ImpactSTATUS ANALYSISQ11/ Why shall we use several-tier suppliers?STATUS ANALYSIS01020304Keep core competitivenes

3、s Reduce CostTransfer risks to JCCIncrease efficiencyFocus on manufacturing processKeep variety and innovation of productPay the loss of unpunctual deliveryOEM only controls the first-tier-JCCVariable cost Lower cost by the scale productionFixed cost Reduce inventory administration costWe should con

4、tinue to keep this method1/ STATUS ANALYSIS1.1 / Several-Tire SupplierBenefits of several-tire-supplier0102Affected by the upper and lower SuppliersAn aexclusive contractAn error of any tire will affect JCCJCC only has one customer-OEMWe should seizetheopportunity1/ STATUS ANALYSIS1.1 / Several-Tire

5、 SupplierChallenge of several-tire supplierQ22/ What about JIT strategy?1/ STATUS ANALYSISLess setup timeStrong supplier relationshipsObvious production priorities Lower inventory cost and fixed costHigh efficiencyZero inventoryHigher revenues based on the lower price and flexibility for satisfying

6、incremental ordersNo buffer inventoryHighly rely on the supply chainPotential stock outs at suppliersPotential overtime expenses from unanticipated ordersGeneral BenefitLimitationJITJCCBenefits that JCC cannot All of these cannot be avoid by JCC! Advantagesoutweighthedisadvantages，we should continue

7、1/ STATUS ANALYSIS1.2 / JIT StrategyQ33/ Shall we accept the new orders?Financial ImpactNon-financial Impact1/ STATUS ANALYSISAlthough the profitability still declines, the pace of decrease slows down.Net Profit MarginReturn on AssetsBenchmark1/ STATUS ANALYSIS1.3 / Special Order Financial Aspects1.

8、 ProfitabilityAccepting the order can turn the falling trend of JCCs operating capacityOperating CapacityInventory TurnoverBenchmark1/ STATUS ANALYSIS1.3 / Special Order Financial Aspects2. Operating Capacity202120212021Special orderExpand production can continue to keep our good debt paying ability

9、From financial aspect, we suppose that accepting is sensibleShort Term Solvency-Current RatioLong Term Solvency-Debt to Assets Ratio1/ STATUS ANALYSIS1.3 / Special Order Financial Aspects2. Debt Paying AbilityLong-term and stable cooperation with OEMEnhance JCCs bargain power with OEMA new opportuni

10、ty of expanding production and turning the difficult business dilemmaMitigate shareholders concern over JCCs declining profitabilityNonFinancialFrom non-financial aspect, we suppose that accepting is sensible1/ STATUS ANALYSIS1.3 / Special Order - Non-financial AspectsYellow 2021White 2021ROE57.24%8

11、5.31%Return on assets10.51%14.63%Equity multiplier5.44675.8312Assets80,475,00075,000Long term liabilities31,000,00031,000,000Current liabilities34,700,00031,250,000Liabilities65,700,00062,250,000Sales111,000,000113,100,000Total assets turnover1.37931.5053Current assets44,965,00038,125,000Assets80,47

12、5,00075,000Long term assets35,510,00037,010,000Cash and cash equivalents15,000,00013,900,000Trade receivables, net13,500,0009,300,000Others6,765,0007,725,000Inventory9,700,0007,200,000Net Income8,454,22510,988,825Net profit margin on sales7.62%9.72%Sales111,000,000113,100,000Cost of goods sold81,025

13、,00079,025,000Freight-out4,900,0004,500,000Other operating expenses11,300,00012,000,000Provision for income taxes4,220,7755,486,175Non-operating expenses interest1,100,0001,100,000Cost & Expenses102,545,775102,111,175Cost & Expenses102,545,775102,111,175Inventory9,700,0007,200,0001/ STATUS ANALYSIS1

14、.4 / Financial Analysis DuPont Analysis22IMPROVEMENTTiresWheelsFront ForkHandlebarsPowerSteel TubingSupplyingDeliveringManufacturing2.1 Quality Management2.2 Supplier Evolution System2.3 Transfer price2.4 Bargain 2.5 JIT Information Sharing Platform2.6 Manufacturing Process Re-engineeringTiresWheels

15、Front ForkHandlebarsPowerSteel Tubing2/IMPROVEMENTOverview of Further Actions TiresWheelsFront ForkHandlebarsPowerSteel TubingProblem 1: Unbalanced wheel/tire combination1/ Tire Supplier:Afford Testing machine Bill $700/ Unqualified unit2/ Wheel Manufacturers:Balance testCurrent solutionsTesting mac

16、hine cost Direct labor Outcomes3:00 min Balance Test $2,000/min punishment3/ Long-term Development: Open tendering Supplier evolution system If not, This would certainly solve current2/IMPROVEMENT2.1 / Quality ManagementSupply ChainEntry PolicyQuality ControlProcessProductQuality Evaluation Quality

17、ControlFeedbackSuppliersJCCDBCA2/IMPROVEMENT2.1 / Supplier Management- Long-term Supplying Evaluation SystemPerformances &Reputation (50%)Service (30%)Financial Position (20%)After-sale serviceTechnical support timeThe main technical personnelsThe financial statements (nearly three years)Bank credit

18、Product quality (nearly 2 years)Delivery timeSupply priceMarket position and reputation2/IMPROVEMENT2.1 / Supplier Management- Long-term Supplying Evaluation SystemRank D-70Rank C-70 x80Rank B-80 x90Rank A-90Result of evaluationgrade suppliersreward and punishment .This would certainly solve current

19、2/IMPROVEMENT2.1 / Supplier Management- Long-term Supplying Evaluation SystemWheelsFront ForkHandlebarsPowerSteel TubingProductsProductsProductsProductsProductsQualifiedQualifiedQualifiedQualifiedQualifiedEvaluationEvaluationEvaluationEvaluationEvaluationTiresEvaluationUnqualifiedNONONONONOUnqualifi

20、ed2/IMPROVEMENT2.2 / Quality Management- Long-term Total Quality Control-3 Sigma3 SigmaThose data beyond the line of 3 Sigma are unqualified and need to be eliminated.6 Sigma Model 2/IMPROVEMENT2.2 / Quality Management- Long-term Take measurementDefine the problemAnalyse the reasonMaking solutionMak

21、e conclusion Adjust planning Control the process Check the result PLANCHECKACTIONDO2/IMPROVEMENT2.2 / Quality Management- Long-term PDCA CirculationTiresWheelsFront ForkHandlebarsPowerSteel Tubing2/IMPROVEMENT2.3 / Transfer PriceProblem 2:Missed scheduled deliveries due to the filled orders If the e

22、xternal orders + JCCs order doesnt excess handlebars capacity: If orders from external part and JCC excess handlebars capacity within 1,000 units:If orders from external part and JCC excess handlebars capacity within 2,000 unitsNumbers of orders excess handlebars capacityTransfer PriceLowest priceHi

23、ghest price0801250100089.51251000200089.25125Transfer Price External Market Price$80+$0/33750 $80+($125-$80)*100033750Transfer Price$80+($125-$80)*200033750Transfer Price External Market Price External Market PriceHANDLEBARS UNIT COST INFORMATION2015 (Estimated)Selling price to outside customers*$13

24、5Variable Cost*80Contribution Margin $45Based on the industry average level2/IMPROVEMENT2.3 / Transfer Price2/IMPROVEMENT2.3 / Transfer PriceProblem 3: Price concessions of $200 per unitFeasibilityScale effect of one type product easy to bargainTransfer price within reasonable rangeJCCS UNIT COST IN

25、FORMATION（2015）Materials Steel tubing 200.00 Front fork 650.00 Wheel set (front and rear) 700.00 Tires 350.00 Handlebars 125.00 2,025.00 Direct labor 13.33 Overhead 112.50 Depreciation (Generally fixed in total) 550.00 Total unit cost 2,700.83 190.00600.00700.00350.00120.001920.00 After bargaining:

26、Steel tubing: $190 = 200 * ( 1 - 5.4% )Front fork: $600 = 650 * ( 1 - 5.4% )OutcomesRange of unit cost Normally $15/ unit (0.56%)Bargain $65/unit (2.4%)2/IMPROVEMENT2.4 / BargainTiresWheelsFront ForkHandlebarsPowerSteel TubingEDILogistics flowElectronic dataOverall EDI systemEDIEDIEDIEDI2/IMPROVEMEN

27、T2.5 / JIT Sharing SystemOEMJCCSECOND TIRE SUPPLIERTHIRD TIRE SUPPLIERLogistics CompanyJIT Information Sharing PlatformThree types of information1. Estimated order numbers for each season2/IMPROVEMENT2.5 / JIT Sharing SystemJCCS Planned Order ScheduleSeason 1/2/3/4Type of frame geometriesPlannedOrde

28、rsSteel TubingFront ForkHandlebar TypeWheel TypeTire SpecificationsSport bikes380093759375380038001500/2000/300Cruising bikes2775277527751075/700/1000Retro bikes2800280028001200/700/7002/IMPROVEMENT2.5 / JIT Sharing SystemOEMJCCSECOND TIRE SUPPLIERTHIRD TIRE SUPPLIERLogistics Company2. Inventory Lev

29、el for each products3. OEMs Actual order number and delivery time2/IMPROVEMENT2.5 / JIT Sharing SystemPurchase plan achievedPlanned purchase orders for each seasonInventory management system for each productsActual purchase orders JIT Delivery-in-timeSafety inventoryPurchase order achievedCustomer s

30、atisfactionInformation Synchronization2/IMPROVEMENT2.5 / JIT Sharing SystemBenefits of such solution:Time Efficiency Cost (Inventory+ Equipment)Missed schedule unpunctual delivery Mistakes Limitation of JIT No buffer inventoryHighly rely on the supply chainPotential stock outs at suppliersFlexibilit

31、y for satisfying incremental ordersSolveSolveSolveGetThis would certainly solve current2/IMPROVEMENT2.5 / JIT Sharing SystemInvestment in PPEFailure in current years.Inefficiency！Working OvertimeFinancial:Be paid at 150%Direct labor/unit $0.74 Net income 15.56%Non-financial:Workload + Pressure Impro

32、vement of product line Capacity?Two Stage:1/ Reduce TIRE BALANCING TIME2/ Combine STEP4 and STEP 5 202130,000 units202133,750 unitsThis would certainly solve current2/IMPROVEMENT2.5 / JIT Sharing SystemThree ApproachesCUT TUBING0:30WEIDING SETUP TIME0:15WEIDING PROCESS TIME3:15WELD CLEAN UP2:00DEGRE

33、ASE & POWDER COAT PREP0:30POWDER COATING PRECESS TIME3:00FORK ASSEMBLY PROCESS TIME1:45TIRE BALANCING PROCESS TIME3:00HANDLABAR MOUNTING PROCESS TIME - 1:30TRANSPORT TO LOADING QUEUEFOR JIT JIS DELIVERYWHEEL ASSEMBLY PROCESS TIME2:150102030405060708CUT TUBING0:30WEIDING SETUP TIME0:15WEIDING PROCESS

34、 TIME3:15TIRE BALANCING PROCESS TIME3:00FORK ASSEMBLY PROCESS TIME& WHEEL ASSEMBLY PROCESS TIME2:152/IMPROVEMENT2.6 / Manufacturing Process Re-engineeringStepProcessTime （minutes）1Cut and assemble the tubes.4:002Clean up the welds, degrease, and prepare for powder coat.2:303Perform powder coating.3:

35、004Assemble the fork.1:455Balance the tires.3:006Attach the wheels/tires.2:157Mount the handlebars.1:308Load the frames for transport.OUTCOMES: Processing Time: 4:45 minMinimized the decreasing profits2/IMPROVEMENT2.6 / Manufacturing Process Re-engineering2.deliveringOverall EDI:2.2 JIT Information

36、Sharing Platform3.manufacturing2.3 Product Line Reorganization1.Supply Chain1/ Quality Problem2/ Missed Schedule2/ Increasing Inventory1/ Unpunctual Delivery 2.1-1 Supplier Evaluation System2.1-2 Total Quality Control (TQC)Six Sigma + PDCA Circulation2.1-3 Transfer PriceOther issues:Appendix: Cost C

37、ontrolIncreased Cost2/ Declining profitability1/ Limited productivityRecommendationProblemsSourcesTire/WheelHandlebarSecond-tire SupplierSteel Tubing, Front FrockCapacity2/IMPROVEMENT33The Unit Cost SituationFinancial Factors ImprovementsFinancial StatementsF I N A L RESULTBalanced Score CardJCCS UN

38、IT COST INFORMATION（2015）Materials20142015 After Improvement Steel tubing 200.00 190.00 Front fork 650.00 600.00 Wheel set (front and rear) 700.00 700.00 Tires 350.00 350.00 Handlebars 125.00 120.00 2,025.00 1960.00Direct labor 13.33 9.78Overhead 112.50 112.50Depreciation (Generally fixed in total)

39、550.00 488.89Total unit cost 2,700.83 2571.17 $10 $50 $5 $3.55 $129.66The unit cost would reduce, indicating a lower cost of goods sold and a higher profit.3/ FINAL RESULT3.1 / Unit Cost Information2021 before improvementThe profits would stop the downward trend3/ FINAL RESULT3.2 / Financial Factors

40、-Profitability202120212021Special orderShort Term Solvency-Current RatioLong Term Solvency-Debt to Assets Ratio2021Creditors would be satisfied with the results3/ FINAL RESULT3.2 / Financial Factors-Debt Paying AbilityJCCS INCOME STATEMENT（Years Ended Dec. 31）2014(In millions)2015(In millions)Sales1

41、11118.1Cost of goods sold81 86.7 Gross margin 29.9 31.4 Operating expenses:Freight-out4.9 5.9Research and development2.8 2.8 General and administrative8.58.5Total operating expenses16.217.2Operating income13.814.2Non-operating expenses interest1.11.1Income before taxes12.713.1Provision for income ta

42、xes4.24.3 Net income8.48.8 4.7% 6.1% 4.8%3/ FINAL RESULT3.3 / Financial StatementsJCCs Statement of Financial Position（Years Ended December 31）Increase (Decrease)ASSETS2014 (In Millions)2015 (In Millions)Percentage%Current Assets Cash and cash equivalents152567% Trade receivables, net13.518.436% Inv

43、entory9.72.0-79% Prepaid expenses0.50.57% Deferred tax assets6.36.76% Total current assets44.952.617%Property and Equipment Land and buildings12120% Property and equipment57.557.50% Less: Accumulate depreciation3955.542%Goodwill550%Total Assets80.471.6-11%LIBILITIES AND OWNERS EQUITYCurrent Liabilit

44、ies Accounts payable97.3-19% Accrued expenses2516.6-34% Income taxes payable0.70.746% Total current liabilities34.724.7-29% Notes payable31310%Total Liabilities65.755.7-15%Shareholders Equity Common stock110% Retained earnings13.715.915%Total Shareholders Equity14.817.114%3/ FINAL RESULT3.3 / Financ

45、ial StatementsJCCs Statement of Financial Position（Years Ended December 31）Increase (Decrease)ASSETS2014 (In Millions)2015 (In Millions)Percentage%Current Assets Cash and cash equivalents152567% Trade receivables, net13.518.436% Inventory9.72.0-79%2014 (In Millions)2015 (In Millions)Percentage%Shareholders Equity C