Cycles in the squirrel cage : a research into CODP positioning and standardization at the Dutch market leader of electric squirrel cage motors

Beek, H.G.J. (2009) Cycles in the squirrel cage : a research into CODP positioning and standardization at the Dutch market leader of electric squirrel cage motors.

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Abstract:Scope This research is carried out within the frame of the Master Assignment for Industrial Engineering and Management at the University of Twente. The scope of this research is the supply chain of Rotor B.V., a producer of electric squirrel cage motors in Eibergen. The different departments within Rotor are observed as well as direct customers and suppliers. The main focus is on the processes sales, purchasing and logistics. Goal The research goal is to determine the best position of the customer order decoupling point for Rotor in combination with standardization of stock in order for the company to be able to combine flexibility and short delivery times with less risk in stock and easier determination of stock motors. Additionally, this research also tries to bring to light rules of thumb used by the purchase and logistics managers in their daily routine and the possibilities for these rules to be embedded in a system and so to capture implicit, local knowledge, reduce the dependability on persons and develop the business processes towards lean. Conclusions The customer order decoupling point should be situated at the sales department of Rotor. At this point in the supply chain the customer order is received and it can be determined whether an order can be fulfilled by direct delivery from stock, by reconfiguration of a motor at the competence centre in Eibergen or by purchasing the specific motor from a supplier. With the standardization of stock and the reduction of the number of configurations held on stock by 58%, Rotor is able to retain its flexibility while at the same time reducing the risk in stock. With the suggested standard stock list of 546 motors, Rotor is able to cover 96% of all configurations sold in 2008 from Eibergen, by using the reconfigurations possibilities of the competence centre. The use of Configure Bases lets the employees of Rotor easily select the appropriate motor for reconfiguration purposes and is a simple way of analyzing motors sold based on their unique elements. The rules of thumb unearthed in this research and the suggested implementation of these rules enables Rotor to capture implicit and local knowledge and embed this in a system. Dependability on persons is this way reduced and a step is taken in the direction of lean business processes, especially for purchasing. Recommendations The first recommendation is the periodic evaluation of the Configure Bases and standard stock motors, to assure the correct motors are kept on stock and the flexibility and short delivery times will also in the future be maintained. Secondly we recommend to roll out the standardization downstream of the customer order decoupling point. The total stock in this part of the supply chain can be lowered and more risk can be eliminated. For the alignment with the UK branch of Rotor further research is recommended. ii The implementation of performance measurement throughout the organization is recommended. This will enable the management team to analyse the performance of the departments and in case performance is inadequate, appropriate steering can be deployed to improve performance. For this to succeed a revision of the company’s mission, vision, strategy and organizational goals is necessary. Consequences The implementation plan for the standardization of Rotor’s stock describes the steps to be taken by Rotor in order to reap the benefits of the conclusions of this research. Support by the Board of Directors and the Management Team is essential. Moreover, the cooperation of the purchasing and logistic managers and the software developer is necessary for this implementation plan to succeed.
Item Type:Essay (Master)
Clients:
Rotor B.V.
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Industrial Engineering and Management MSc (60029)
Link to this item:http://purl.utwente.nl/essays/60531
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