Supply Chain System Instated by Audi - Essay Example

Work Related Project Analysis, Part Work Related Project Analysis, Part I have chosen to analyze the Supply Chain System of the German car manufacturing company, Audi. I am using a combination of a case study, official Audi press release and an article published in an automobile magazine. These sources provide me with secondary data and information that is useful for conducting this work related project analysis. This research and analysis is based on the logistics and supply chain structure of Audi. This paper will analyze the productions and operations at Audi as they are aided by its system of supply chain and logistics. It will also assess the work flow at the automobile manufacturing facilities operated by Audi. This systems analysis includes a research into the supply chain system instated by Audi. The research methodology is primarily based upon a secondary research or more specifically a literature review of magazine article, press release, case study, and a textbook. The research design follows an empirical analysis based on qualitative sources that aims to analyze the working of its supply chain as the chosen system or project. Information is gathered from these sources as mentioned which will form the theoretical base in analyzing, assessing, and evaluating the efficiency, effectiveness, and performance of its supply chain system in delivery value to its consumers. The supply chain operations are important to any company for delivering its outputs and meeting its goals. Hence, this work related project analysis is to follow a literature review of secondary sources so as to gather the relevant information and knowledge regarding the system in place. The research design specifically involves use of germane sources so as to allow a rigorous analysis. Audi has now merged with the German based auto company Volkswagen AG after the company acquired 99 percent of its shares (Diaz, 2006). Having its head offices in Germany, Audi is a highly renowned automobile manufacturing company that produces high quality cars. The company’s supply chain system is a very important component of the supply chain which helps in delivering customer satisfaction and value to consumers. The production of its cars and the assembling of the various car components require seamless functioning of the supply chain. Production is aided by inbound and outbound logistics that helps to connect the transported raw materials with the production line. For many other car manufacturing firms, the supply chain department serves an important line function. Hence, I have chosen to base this research on the supply chain project of Audi by using secondary sources to gather information. An analysis will follow that will assess the supply chain system from a critical thinking perspective to evaluate the effectiveness of the system as a success of failure. The logistics plays a significantly important role in the automobile manufacturing industry where Audi operates because it is composed of a system of processes and operations. Development of logistics strategy is critical in the running of the automobile production processes as pointed out by Waters (2007). The press release by official Audi sources provides useful information regarding the car loading program installed by Audi after it recognized the need through its Logistics department (Audi Media Services, 2014). In around the mid 1980s Audi had a moving platform that was 30 meters long and 11 meters wide which was considered as pioneering and the most advanced car loading apparatus in the whole of Europe. The system has transformed the way cars are loaded in the auto industry. By doing so the transportation of manufactured cars has become easier and more efficient in terms of time saving. Till October 1984 employees had to load cars onto the railway wagons applying the line loading method which meant that the employees had to drive cars one by one onto the trains that were around 800 meters long. The system was basically changed by an idea of a creative employee at Audi. This enabled the loading of two double-decker wagons on both the levels simultaneously. Firstly, an automated robot pushes an empty wagon on the moving platform as far away as the loading ramp. Similarly another wagon is loaded by the same robot but half full. After the railway wagon is finally completely pulled in the platform shifts so that the wagon which is still half loaded is now located right in front of the loading bay. Finally when a wagon is fully loaded and connected to the train a robot pulls the next wagon which was on the side track and onto the moving platform so that it could be loaded. This change in the loading system has basically caused a lot of change in the working style of the people employed in the transport logistics department. This not only due to the fact that the driving and returning times have considerably decreased. Recently the system has improved and advanced so much that it barely take six minutes to load a railway wagon with up to twelve cars on both the levels. According to Herbert Zehnder one of the current employees at Audi who also experienced the change in the system of loading cars 30 years ago, the car loading system now is not only faster but also more user friendly and safer. Since last year, a new cockpit which provides an advanced comprehensive view as well as a safety relay that will switch off the platform automatically when required. Today around 1800 cars are now loaded on 180 railway wagons everyday by the Audi team at their working site in Ingolstadt. These figures represent around 70 percent of the entire plant’s production (Audi Media Services, 2014). Audi is generally a good site to initiate new production and logistics concepts because of its modern infrastructure at its German plants. The plants have outstanding transportation links along with superb logistics centers and supplier park that are next to the plant. Audi’s brand image is also dependant on its order accuracy, flexibility and delivery targets and mostly because the consumer expectations for superior cars are high when it comes to the process of ordering and the capability to make modifications. Audi’s order to delivery program has concentrated on associating customers personally to the logistics pipeline of Audi till the car has been supplied to the customer. Audi’s smart production system decreases the distance that a worker has to move in order to retrieve components on the assembly line. The user friendly advancements and better component handling machinery are used to manage the components that are supplied from outside which sometimes have to be arranged or sometimes are pre-assembled. Audi is now implicating this improvement to its suppliers. The suppliers will have to match up with Audi by producing small batches and by delivering them to the Audi plant frequently. This improvement will help decrease stocking up of components and will help avoid needless production and this will result in the suppliers to respond quickly to the production scheme and will also enable later manufacturing alterations (Ludwig, 2010). The systematic production method and demand of small batches of components from its suppliers that is used by Audi is really very impressive and innovative. As this will enable the consumers to modify their cars even in the middle of production and Audi will still be able to inform its component supplier about the needed change and it will not be hard for the suppliers to adapt to the required change. It is a very smart and systematic method which will help Audi to reduce the inventory that is being stored in its production house and will enable it to continue its production in a flow. The car loading and transportation method is really magnificent as it has allowed a lot of reduction in the time that was being consumed in just loading cars on railway wagons. The new car loading method is automated, safer, more user friendly and has enough safety precautions that will be able to take control over the platform when it is needed. Such logistics and Supply Chain Systems are very impressive and successful and are one of the many reasons of the fame of the famous car manufacturing company Audi. Such supply chain methods have enabled the implementation of alterations, modifications and changes in the cars according to the consumers’ demands even during the process of production. The fame of the Audi’s alteration and modification policy also serves as a prove of the success of the supply chain systems that Audi employs while manufacturing its cars. References Audi-mediaservices.com,. (2014). Audi Logistics: 30 years of the car loading platform. Retrieved 15 October 2014, from https://www.audi-mediaservices.com/publish/ms/content/en/public/pressemitteilungen/2014/10/08/audi_logistics__30.html Diaz, L. (2006). The Supply Chain of the Audi A8 V8 4.0l Diesel Engine. Evaluation Of Cooperative Planning In Supply Chains, 97-157. doi:10.1007/3-8350-5714-6_4 Ludwig, C. (2010). Audi: leading the pack for logistics again. Automotivelogisticsmagazine.com. Retrieved 15 October 2014, from http://www.automotivelogisticsmagazine.com/intelligence/audi-leading-the-pack-for-logistics-again Waters, C. (2010). Global logistics (1st ed.). London: Kogan Page. Read More