STRATEGY, PROJECT MANAGEMENT & SUPPLY CHAIN - Case Study Example

It is difficult to manage a project in the energy sector where there is friction with the government and, in this case, issues with the extension of the PSA have made it difficult for companies to achieve profit estimates. Failure by some companies, in this case Agip KCO, to respect the production schedule and compliance with environmental regulations have resulted in friction between international consortiums and the government (Esty & Bitsch, 2013: p4). Scharffen Berger is rapidly expanding and the most important issue at such a point is to decide on how to increase its capacity across its production system, as well as the technologies to use (Snow et al, 2010: p9).

In such a situation, a company like Scharffen Berger should consider marketing requirements, effects of reputation and quality, and alternative approaches aimed at increasing output both in the long and short term. This issue is exacerbated by Toyota’s use of offline systems to address these problems, which is a deviation from the Toyota production System’s procedures and policies (Mishina & Takeda, 1995: p2). Sinopec’s implementation of the vendor-managed inventory system provides important insight into potential challenges facing the implementation of such supply chain strategies, including poor integration of information systems.

In implementing the VMI strategy, such challenges could lead to an increase in inventory stored by the supplier, especially if there is lack of mutual trust in the chain of supply (Zhao et al, 2006: