Complete An Analysis Of The Purchasing Function Within A Manufacturing ✓ Solved
Complete an analysis of the purchasing function within a manufacturing or services firm of your choice. As an alternative option, students may complete an analysis of the purchasing function at Honda Motor Company Ltd. (the case study can be found in the textbook’s companion student website). This analysis needs to determine what functions are working well and identify those that need further improvement and development. Based on the information from the analysis, appropriate research and the materials provided in this course, the student will develop a Procurement and Sourcing Analysis Report to Management. The in-depth analysis will involve extensive outside research and a written improvement plan.
The written project should be should be a minimum of 5 pages in length, not including charts, graphs and /or financial models, cover page, table of contents or references page. Students should adhere to proper inclusion of research information within the body of their projects. APA style citation with a minimum of 3 sources must be used. Specific Requirements for Paper: The procurement analysis must be typed containing the following segments in the order noted: 1. *Title Page Include name, course name/number, instructor name and date. 1. *Table of Contents 1.
Introduction (inform the reader what the paper is all about). 1. Company Background (a brief overview of what the company does including industry and customers served). 1. Product or Services Provided (use sub-headings).
1. Description of Procurement Operation Area Analysed (explain procurement functions as they operate currently, provide work-flow charts, diagrams, etc. if appropriate). 1. Assessment of procurement methods and policies 1. Assessment of technologies used (hard and software) 1.
Assessment of supplier quality management 1. Procurement Analysis Summary and Improvement Recommendations Assignment constraints: 1. APA format must be used (cover page, references page, in-text citations etc.) 1. 5 page minimum excluding the cover page and references. 1.
Include a minimum of 3 outside sources. Complete an analysis of the purchasing function within a manufacturing or services firm of your choice. As an alternative option, students may complete an analysis of the purcha sing function at Honda Motor Company Ltd. (the case study can be found in the textbook’s companion student website). This analysis needs to determine what functions are working well and identify those that need further improvement and development. Based on the information from the analysis, appropriate research and the materials provided in this course, the student will develop a Procurement and Sourcing Analysis Report to Management.
The in - depth analysis will involve extensive outside research and a writt en improvement plan. The written project should be should be a minimum of 5 pages in length, not including charts, graphs and /or financial models, cover inf ormation within the body of their projects. APA style citation with a minimum of 3 sources must be used. Specific Requirements for Paper: The procurement analysis must be typed containing the following segments in the order noted: · *Title Page Include name, course name/number, instructor name and date. · *Table of Contents · Introduction (inform the reader what the paper is all about). · Company Background (a brief overview of what the company does including industry and custome rs served). · Product or Services Provided (use sub - headings). · Description of Procurement Operation Area Analysed (explain procurement functions as they operate currently, provide work - flow charts, diagrams, etc. if appropriate). · Assessment of procurement me thods and policies · Assessment of technologies used (hard and software) · Assessment of supplier quality management · Procurement Analysis Summary and Improvement Recommendations Assignment constraints: · APA format must be used (cover page, references page, in - t ext citations etc.) · 5 page minimum excluding the cover page and references. · Include a minimum of 3 outside sources.
Complete an analysis of the purchasing function within a manufacturing or services firm of your choice. As an alternative option, students may complete an analysis of the purchasing function at Honda Motor Company Ltd. (the case study can be found in the textbook’s companion student website). This analysis needs to determine what functions are working well and identify those that need further improvement and development. Based on the information from the analysis, appropriate research and the materials provided in this course, the student will develop a Procurement and Sourcing Analysis Report to Management. The in-depth analysis will involve extensive outside research and a written improvement plan.
The written project should be should be a minimum of 5 pages in length, not including charts, graphs and /or financial models, cover information within the body of their projects. APA style citation with a minimum of 3 sources must be used. Specific Requirements for Paper: The procurement analysis must be typed containing the following segments in the order noted: ï‚· *Title Page Include name, course name/number, instructor name and date. ï‚· *Table of Contents ï‚· Introduction (inform the reader what the paper is all about). ï‚· Company Background (a brief overview of what the company does including industry and customers served). ï‚· Product or Services Provided (use sub-headings). ï‚· Description of Procurement Operation Area Analysed (explain procurement functions as they operate currently, provide work-flow charts, diagrams, etc. if appropriate). ï‚· Assessment of procurement methods and policies ï‚· Assessment of technologies used (hard and software) ï‚· Assessment of supplier quality management ï‚· Procurement Analysis Summary and Improvement Recommendations Assignment constraints: ï‚· APA format must be used (cover page, references page, in-text citations etc.) ï‚· 5 page minimum excluding the cover page and references. ï‚· Include a minimum of 3 outside sources.
Paper for above instructions
Title Page
Student Name
Course Name/Number
Instructor Name
Date
Table of Contents
1. Introduction
2. Company Background
- 2.1 Industry Overview
- 2.2 Customer Base
3. Products and Services Provided
- 3.1 Automobiles
- 3.2 Motorcycles
- 3.3 Power Products
4. Description of Procurement Operation Area Analyzed
5. Assessment of Procurement Methods and Policies
6. Assessment of Technologies Used
7. Assessment of Supplier Quality Management
8. Procurement Analysis Summary and Improvement Recommendations
1. Introduction
In any manufacturing organization, the procurement function is a critical component that influences efficiency, cost-effectiveness, and overall organizational competitiveness. This analysis explores the procurement function of Honda Motor Company Ltd., a global automotive giant known for its innovative engineering and extensive product portfolio. The goal is to identify strengths and weaknesses in Honda's purchasing operations and provide actionable improvement recommendations.
2. Company Background
2.1 Industry Overview
Honda Motor Company Ltd. operates within the automotive and motorcycle manufacturing industry. Founded in 1948 and headquartered in Tokyo, Japan, Honda is renowned for combining innovative technology with user-centric design (Honda, 2023). The company has a significant market presence in various regions worldwide, including North America, Europe, and Asia.
2.2 Customer Base
Honda serves a diverse customer base, ranging from individual consumers looking for personal vehicles to commercial clients requiring robust transportation solutions. The company’s mission is to offer products that deliver value and enjoyment to customers while maintaining environmental consciousness.
3. Products and Services Provided
3.1 Automobiles
Honda is a leading player in the automobile segment, with a wide array of models including sedans, SUVs, and hybrids. The Civic and Accord lines are particularly well-received for their reliability and efficiency.
3.2 Motorcycles
In addition to automobiles, Honda is one of the largest motorcycle manufacturers globally. The company has a strong portfolio of models catering to various riding styles and customer segments.
3.3 Power Products
Honda also manufactures power products such as generators and lawn equipment, leveraging its engine technology to provide reliable and efficient solutions for consumers (Honda, 2023).
4. Description of Procurement Operation Area Analyzed
The procurement function at Honda encompasses the entire supply chain—from purchasing raw materials to sourcing components and even managing supplier relationships. Currently, procurement processes are structured as follows:
1. Supplier Identification and Evaluation: Honda assesses potential suppliers based on quality, cost, reliability, and proximity.
2. Negotiation: Procurement teams negotiate contracts outlining costs, delivery schedules, and service terms.
3. Order Management: Purchase orders are issued based on production forecasts, with a focus on just-in-time (JIT) delivery to reduce holding costs (Fry, 2020).
4. Supplier Management: Honda maintains ongoing communication with suppliers to ensure compliance with quality standards and performance metrics.
A workflow diagram of Honda's procurement process can further illustrate these steps:
![Workflow Diagram] (Insert Workflow Diagram Here)
5. Assessment of Procurement Methods and Policies
Honda employs various procurement methods, including centralized and decentralized approaches. Centralized procurement is focused on high-cost items, while decentralized procurement is typically used for items with lower value. This dual approach facilitates flexibility while ensuring cost control (Kumar & Rahman, 2018).
However, areas for improvement include:
- Increased Supplier Diversity: Expanding the supplier base could mitigate risks associated with supply chain disruptions.
- Sustainability Initiatives: Implementing environmentally responsible procurement practices aligns with global sustainability goals.
6. Assessment of Technologies Used
6.1 Hardware
Honda uses sophisticated inventory management systems integrated with procurement software to streamline operations. RFID technology is employed for tracking components in real-time, fostering greater transparency and efficiency in the supply chain.
6.2 Software
Honda utilizes advanced ERP systems to facilitate seamless communication across departments. These systems help in forecasting demand, managing orders, and coordinating with suppliers. However, the integration of newer technologies, such as artificial intelligence, could enhance predictive analytics and risk management (Choi, 2021).
7. Assessment of Supplier Quality Management
Supplier quality management holds paramount importance in Honda’s procurement strategy. Honda implements rigorous supplier selection criteria, periodic audits, and performance reviews to ensure that suppliers meet industry and company standards. The use of Total Quality Management (TQM) principles helps in continuously improving supplier performance (Jiang et al., 2020).
Nonetheless, there is an opportunity for improvement in fostering collaborative relationships with suppliers. Focusing on partnership rather than merely transactional relationships could lead to enhanced innovation and mutual benefits.
8. Procurement Analysis Summary and Improvement Recommendations
Summary
The procurement function at Honda Motor Company Ltd. demonstrates a robust framework that effectively facilitates its diverse production needs. Its strategies emphasize quality, cost-effectiveness, and operational efficiency. However, certain areas require attention for further enhancement.
Improvement Recommendations
1. Supplier Diversity Initiatives: Actively seek suppliers from varied backgrounds and capabilities to enhance resilience against disruptions.
2. Sustainability Practices: Embrace sustainable procurement practices, focusing on reducing the overall carbon footprint and waste in the supply chain (McCarthy, 2021).
3. Technological Advancement: Invest in AI and machine learning solutions to improve predictive capabilities, enabling better demand forecasting and supplier evaluations.
4. Collaborative Supplier Relationships: Transition from transactional to collaborative partnerships with key suppliers to foster innovation and continuous improvement.
By implementing these recommendations, Honda can further strengthen its procurement function and ensure sustainability and competitiveness in an ever-evolving market landscape.
References
Choi, T. M. (2021). Information Technology in Supply Chain Management: A Review of the Current State of Research and Future Directions. International Journal of Production Research, 59(23), 7203-7225.
Fry, D. J. (2020). World Class Purchasing and Supply Chain Management. Harlow, England: Financial Times Prentice Hall.
Honda. (2023). Company Overview. Retrieved from https://global.honda/about
Jiang, Z., Zhou, D., & Ma, L. (2020). The Practice of Total Quality Management in Supply Chains: A Leaning Approach. International Journal of Lean Six Sigma, 11(1), 147-167.
Kumar, R., & Rahman, Z. (2018). Sustainable Supply Chain Management Practices: A Review of Literature and Future Directions. Journal of Cleaner Production, 194, 377-393.
McCarthy, M. (2021). Sustainable Procurement Practices in the Automotive Sector: A Systematic Literature Review. Journal of Purchasing and Supply Management, 27(6), 100709.