Coordination of Supply Chains.

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Coordination of Supply Chains. Understanding Production network Connections. Motivation. North American Car Industry Car Industry Activity Bunch Chrysler Company Inventory network activities U of M Study Opportunities Territories for dialog Future examination headings High effect regions .
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Coordination of Supply Chains Understanding Supply Chain Relationships

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Agenda North American Automotive Industry Automotive Industry Action Group Chrysler Corporation Supply Chain activities U of M Study Opportunities Areas for dialog Future examination headings High effect zones

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Combined North American Automotive Market Share Chrysler, Ford, General Motors Automotive Mergers European Competition Improved Quality Lower Costs Oil Shocks Asian Competition

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The Auto Industry Worldwide business sector is 48 million vehicles 5,500 vehicles manufactured each hour of ordinary Potential for 60 million vehicles by 2001 630 plants in 63 nations delivering vehicles 12 million units, over limit

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Excel/Atwood Douglas & Lomason Collins & Aikman Specialty Screw Textileather Canadian Fab A Typical Seating Supply Chain General Motors Chrysler Ford Johnson Controls Hardware Suppliers Soft Trim Suppliers Lear Favesa R. R. Spring Rockford Spring Dudek & Bock Spring Milliken & Company Technotrim

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Automotive Industry Action Group

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An utomotive I ndustry A ction G roup Automotive exchange affiliation - almost 1400 part organizations Association shaped in 1982 Forum to address car industry issues Focus on enhancing efficiency Educate and illuminate

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Member Company Diversity Software Vendors Computer Hardware Vendors Communication Vendors Training Vendors Registrar Suppliers Construction Companies Packaging Companies Aftermarket Suppliers GM, Ford, Chrysler Heavy Truck Manufacturers European Transplant OEMs Japanese Transplant OEM’s Financial Institutions Transportation Suppliers Production Part Suppliers Non-Production Part Suppliers

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Legacy: Proprietary, One-To-One Connectivity Chrysler Ford GM Chrysler Telecom Network Ford Telecom Network GM Telecom Network Supplier

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ANX: “Open”, Any-To-Any Connectivity Chrysler Ford GM Chrysler Telecom Network Ford Telecom Network GM Telecom Network ANX Supplier

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The Year 2000 Challenge!

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Program History Chrysler, Ford, and GM started this exertion through the AIAG to give: basic procedure to suppliers autonomy/secretly to producers and suppliers nonpartisan offices & bolster administrations USA administrative approbation

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0.0 1.0 2.0 3.0 4.0 8.0 5.0 6.0 7.0 8.0 2.0 Develop Tools Awareness Seminar Self-Assessment Web-based Tool Kit Tips and Techniques Plant-Floor-Equipment Knowledge Database Evaluation Methodology Assessor Training Information Center

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Company Background: Chrysler Manufacture of Cars and Trucks 126,000 representatives overall 42 Assembly and Manufacturing areas 3.1 million units sold in 1997 1996 Forbes ‘Company of the Year’ Close the books perpetually, November 1998

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Cost in the Average New Vehicle? 70% Supply Chain 30% Chrysler

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What it is The Extended Enterprise™ A Chrysler-composed, objective driven procedure that brings together and develops the business connections of suppliers and supplier levels to decrease process duration, minimize frameworks cost and accomplish immaculate quality.

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The Extended Enterprise Supply Chain Subassembly Supplier Assembly Plant Delighted Customer Raw Material Supplier Component Supplier Dealer Maximized worth at minimized expense

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Quality Cost Cycle-Time Technology Enablers of the Extended Enterprise Supplier Relations Supply Concept Commodity Strategies Supplier Development Supplier Development Cost Management Technology Leverage

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Partner Information Network Tools Computer Aided Design (CAD/CAM) Electronic Data Interchange ( EDI ) Supplier Partner Information Network ( SPIN ) Electronic Funds Transfer ( EFT ) Electronic Mail ( E-MAIL )

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Electronic Commerce Roadmaps

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ANX Tier 2 Tier 3 Tier 1 Chrysler EDI 830, 856, 862/866 EDI Transactions EDI Transactions TM Empowering the Extended Enterprise With Continuous Improvement S upply C hain O rder-section P rocess E mpowerment $ . C. O. P. E.

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Extended Enterprise In Action: Dealerships Working together towards process change Communication Flow (Supply Chain EDI) Chrysler Great Cars & Trucks (Tier 1) Dana Corp . Axles (Tier 2) Impact Forge Forgings Material Flow (On-Time Delivery) (Tier 3) Mac Steel Northstar Steel Best practice suppliers, who are driving the Supply-Chain EDI Initiative Supply Chain Example

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Chrysler Communications Verbal gatherings, townhalls, recompenses Written Supplier Newsletter, PASS report Video Chrysler Employee Network bolster Electronic Commerce

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Understanding Supply Chain Relationships Open business connections Communications assembles trust Establish associations Empower Reward

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Trust of the OEM Very Great Extent Very Little Extent

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Communication with OEM Very Great Extent Very Little Extent

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Extent OEM Shares Savings Very Great Extent Very Little Extent

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Willingness to Share New Technology Very Great Extent Very Little Extent

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Good Overall Relationship Very Great Extent Very Little Extent

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Activity in Supply Chain Management Very Great Extent Very Little Extent

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Greatest Long Term Benefits of Extended Enterprise™ Percent Selecting This Item Most Important Improved Communications/Coordination Lower Total System Costs Improved Margins Improved Quality Reduced Cycle Time Better Human Resource Utilization

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Areas for Dialog Track and record ‘Role Model’ Methods for joint effort How to gauge achievement Obtaining trust of client and exactness of data

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Future Research Where are the open doors? What are the social influences? In what manner can innovation help? Build up a ‘Step-by-Step’ Roadmap What can the U.S. Government and Universities offer business?

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High Impact Areas Examples of advantages expenses opportunities IT framework as all levels of Supply-tie Open correspondences here and there the chain

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John Kay Phone: +248-512-1438 E-mail: jvk@chrysle

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