Supply Chain Management at Mercedes

SUPPLY CHAIN 11 11 SUPPLY CHAIN Supply Chain Name of the Student Name of the University Authors Note Course ID Introduction: 2 New Product Development at Mercedes: 2 Quality Management at Mercedes: 7 Conclusion: 9 References: 10 Introduction: The “supply chain management” is considered vital for business in upholding the supply of exterior inputs into the procedure, in order to obtain the desired results during the desired point of time. The supply chain management was previously identified by the procurement department for the procurement of both

Running head: SUPPLY CHAIN
Supply Chain
Name of the Student
Name of the University
Authors Note
Course ID

1
SUPPLY CHAIN
Table of Contents
Introduction:...............................................................................................................................2
New Product Development at Mercedes:...................................................................................2
Quality Management at Mercedes:............................................................................................7
Conclusion:................................................................................................................................9
References:...............................................................................................................................10

2
SUPPLY CHAIN
Introduction:
The “supply chain management” is considered vital for business in upholding the
supply of exterior inputs into the procedure, in order to obtain the desired results during the
desired point of time. The supply chain management was previously identified by the
procurement department for the procurement of both the materials and consumables based on
the quantity required during a particular point of time to make sure that work continues
unabated (Novillo, Villegas and Haasis 2017). The supply chain management assures that
work does not end when the procedure runs out of a specific thing irrespective of whether it
is raw materials or the machinery and the procedure is not overdue.
The present essay is based on understanding the “Mercedes Benz” which is one of the
renowned car manufacturer. As the expanding international footprint needs an ever-more
efficient supply chain, the luxury automobile maker Mercedes-Benz is in the procedure of
reorganizing the network of supply chain so that it can attain its goal.
New Product Development at Mercedes:
“Mercedes Benz” car division has recently opened a new merging centre in Speyer
located in “New South West of Germany” as the part of its “multi-million-euro venture” in
the worldwide logistics organization (Mukadam 2015). Recently the company has made an
investment of around €90 million that combines the production resources from the European
contractors and recruits the transportation to its manufacturing plant which is located in
China, the US and South Africa.
Innovative drive and loving attention towards the details are regarded as the hallmark
of every designer’s work. The procedure involved in the development from the preliminary
impression to the final approval of finished model consumes a number of years that is
designed to team jointly by creating an ultimate vehicle through step by step (Graham et al.,

3
SUPPLY CHAIN
2015). The team gradually and steadily transforms numerous, originally competing design
studies in the next generation of a Mercedes-Benz vehicle. The design procedure is regarded
as the important part of development procedure. The engineers work together with the
research closely. The area of collaboration also includes progress and manufacture areas,
organizing and fine tuning of the vehicle dimensions, material conceptions and construction
procedure to make sure that the predictability is maintained in the procedure.
At Mercedes innovative drive and loving attention towards the detail is considered as
the hallmarks in its designer’s work. The procedure involved in development of new product
at Mercedes Benz is clearly dependent on the preliminary idea of obtaining final approval of
the finished model which covers the period of years under the team of design jointly creates
the final vehicle step by step (Hugos 2018). The team at gradual pace transforms numerous,
initially competing design studies to the next generation of Mercedes Benz vehicle. The
design process forms the integral portion of process development. The designers collaborate
closely with the research, development and areas of production, material concept and
manufacturing procedure in order to assure smooth production of process.
At Mercedes Benz the process of design regularly commences with the idea that
results in drawing. On the sketch pad or computer screen, ideas that existed previously in the
designer’s mind turns visible. The best and the most promising sketches is selected from the
initial diverse offering. The vital foundation for every design is based on the packaging. It is
better known as the overall total of all the geometrical specifications. At Mercedes Benz
based on this packaging, the sketches are created in such a proportions, dimensions and lines
to manufacture a coherent whole (Mangan and Lalwani 2016). To better evaluate the actual
three-dimensional effect, selected designs is generated in authentic detailed clay model and
on virtual data model. The virtual model of cars is visualised by using multimedia projection
screen based on which the designers can view and assess their designs from numerous

4
SUPPLY CHAIN
perspectives. The car can be envisioned in right size and features particularly the geometry,
colour and texture can be changed on one click. After this both the clay models and the data
models carry their own respective advantages and the virtual model cannot be considered
substitute for real models that is produced to scale.
As the part of new product development, the clay models of each variant of new
automobile are produced alongside the virtual models in the subsequent course of produce
development procedure. Only after this the designers are able to judge whether their designs
are produced in the desired effect of three dimensions. All the details relating to the new
models are later hand-crafted to produce a deceptively real-looking model (Stadtler 2015). As
a result, all the characteristics features of the new car turns apparent. Optical measuring tools
as well as milling machines are implemented to produce the first full-scale prototype. The
highly promising options are then chosen from several variants and modelled in the scale of
1:1.
At Mercedes Benz the new product development also involves interior sketches. The
first step involved in the process of interior design is producing drawings and renderings. The
numerous equipment packages or the lines are formed in interior where the drivers while
driving the car feels at home (Copacino 2019). The development of the design is best
revealed to the designer on the clay model that is formed inside out as it were. All the details
are later modelled until an aesthetically accomplished sense of space is attained in the car.
Several alternative interiors are then modelled as the rule so that decisions of which concept
will be pursued. The exterior as well as the interior along with their respective features are
then combined by hand to make a deceptively actual-looking final model (Coyle et al. 2016).
As a result of this, all the characteristics features of the new car becomes apparent. The
exterior form of future Mercedes-Benz models turns tangible for all the related disciplines.

5
SUPPLY CHAIN
In the final stage of the production procedure, the final design model that has been
approved by the management board is then described in the 3D data. All the tools that are
needed for manufacturing the vehicle is subsequently produced with reference to those data.
Higher importance is placed in the precisely designed joints, harmonious surfaces and ideal
mirror lines. In order to assess the data of class A in the actual life scenario and in order to
define the form in the highly precise manner, it is precious cut on the data control model. The
data of the new model is then subsequently revised in order to take into the consideration any
modification that proves to be necessary on the aesthetic and technical grounds. In respect of
surface quality, the model necessarily constitutes the first manufactured vehicle and serves as
the basis for series of production.
Mercedes-Benz provides the guarantees regarding the quality of the new wheel
models that based on the comprehensive development program. As the part of its new
product development program, the examinations and reviews that are performed goes further
than the constitutional requirements (Delgado and Mills 2017). Even though it comes to the
development of wheel, a basic principles is implement in the process of development and
testing phases. Mercedes Benz has based its work on the actual profile load that contains light
alloy wheels within its real operating conditions and also coordinates its program
consequently. Because of this, Mercedes car that bear light alloy wheels are considered
among the safest, top performing and highly resilient product in the overall automobile
market. Similarly, it is also irrelevant whether one talks about the when from the regular or
elective ranges or from the wide variety of equipment that is available from the Mercedes
Benz Accessories, the procedure is regularly established on the highest standards.
Previously during the developmental phase of new “light-alloy wheel”, engineers
generally stipulate the uneven outline conditions inside which it works. Presently in
Mercedes Benz the new wheel for car models is ascertained inside the closed cooperation

6
SUPPLY CHAIN
with those that are accountable for the designing the model series of Mercedes Benz vehicle.
While the wheel specialist at Mercedes Benz assess the market trends of wheel (Öberg and
Graham 2016). These parameters are then taken into consideration to outline the required
wheel proportions. The following basic steps is then implemented such as data “gross axle
weight”, wheel size or any other required brake clearance which provides installation space
based on which the creators have the free space for their designs, all are in agreement with
the exact “Mercedes Benz design” requirements. Following the technical feasibility study,
the final design of the wheel is then ascertained.
The “three-dimensional volume model” of a Mercedes Benz car is later produced by
using the modern 3D computer programs (Chavez et al. 2016). For the purpose of
visualisation and conversation purpose with the developing team, the designers can make use
of the model to form the “three-dimensional drawings” in order to identify the module
properties namely, weight, machining options and succeeding process of production, material
distribution or at times natural resonances and inactive moments. Based on the records of
data, the wheel is later optimised with the “virtual test data” which makes the use of finite
element analysis.
The Mercedes Benz products in future would become more quick, motorized friend
which identifies the moods, needs and preference of driver as well as travelers and can
proactively project the operational steps (Christopher 2016). Progress in connectivity, urban
mobility and autonomous driving is fundamental changing the relation among the driver and
vehicle. The progressively multifaceted vehicle technologies calls for human and intuitive
operation. The developers are regularly working to make an automobile as fuel-efficient as
conceivable while at each time it confirms to Mercedes Benz values of safety, product
quality, design and performance.

7
SUPPLY CHAIN
Preceding from the explanation in the above given paragraph, the manufacturer of
when is later accountable for manufacturing, setting up the required modules, construction
tools and procedures, following which the first sample wheels are created. In this “prototype
phase”, the wheel producer carries out a thorough assessment in collaboration with the
“Mercedes-Benz” to examine the wheels and the overall process of production (Monczka et
al. 2015). The main purpose is to optimize the production at higher quality level. On reaching
the desired objectives, a true trial awaits for the new wheels that will be considered from the
finely-tuned large scale manufacturing test run.
In agreement with the vehicle development division, the aspects of aerodynamic can
be further unified in the design procedure. The flow simulation at Mercedes Benz have
presented that smoothly optimized “light alloy-wheels and tyres” can enhance the general
aerodynamics of the wheel. The tyres can further advance the aerodynamics of the car which
in actual driving conditions would help in reducing the consumption of fuel and may result in
reduction of CO2 by one gram per kilometre.
Quality Management at Mercedes:
Apart from the logistics and supply chain, Mercedes Benz also applies the total
quality management technique at its unit to assure the quality of its product. The definition of
quality is mainly reliant on the role of people. Majority of the consumers faces difficult time
in defining the quality, but they also know it when they see it (Fredendall and Hill 2016). At
Mercedes Benz conformation to specifications measures how efficient the product or service
meets the targets and level of tolerance is ascertained by its designers. For instance at
Mercedes Benz the dimension of car parts is specified by its design engineers based on 3.05
inches. This implies that the target dimension is 3 inches however the dimensions can vary
among 2.95 and 3.05 inches.

8
SUPPLY CHAIN
Under the TQM Mercedes Benz makes use of the fitness for use which focuses on
how better the product performs based on its proposed function or usage. At Mercedes Benz
it meets the appropriateness for use definition if one takes into the account the transportation
as the intended functions (Stadtler 2015). Nevertheless, the definition becomes highly
specific and take on that the projected use of the car is for transportation on mountain roads
and carrying the finishing gear, Mercedes Benz has greater fitness for usage.
At Mercedes Benz the value for price paid is another definition which the consumers
regularly uses for product or service usefulness. This is regarded as the only definition which
combines the economics with the consumer criteria, it presumes that the definition of quality
is very much price sensitive. The support services provided at Mercedes Benz is regularly
how the quality of product or the service is judged (Copacino 2019). Quality is not only
applied to the product or service of Mercedes Benz, it is also applicable to the people,
procedure and organizational environment which is related to the product.
Although organizations like Mercedes Benz might comprise of several different
functional specialities is regularly organized in departments that are vertically structured. At
Mercedes Benz it is the horizontal procedure which interconnects the functions forms the
focus of Total Quality Management. At Mercedes Benz micro-procedures are added up to the
larger procedure and all the procedure are aggregated into the required business procedure for
defining and applying the strategy. Each person is required to understand the vision,
supervisory principles and assignment along with the quality policies, objectives and critical
procedure of the business. The business performance at Mercedes Benz is monitored and
communicated on a constant basis.
Another critical part at Mercedes Benz quality management is the planned and
methodical approach in accomplishing the vision, mission and goals of the company. This

9
SUPPLY CHAIN
mainly involves strategic arrangement or management and includes preparation of strategic
plan which integrates quality as the central constituent (Monczka et al. 2015). Constant
improvement is viewed as the major thrust in the quality management process at Mercedes
Benz. Constant improvement simply drives the organization towards both systematic and
innovative finding its ways to be highly competitive and highly effective in meeting the
stakeholder’s anticipation.
At Mercedes Benz fact-based decision making is followed and implemented. In order
to ascertain how well Mercedes Benz is performing, data on the performance is considered
necessary measures. By using the Total Quality Management, Mercedes Benz constantly
collects data and analyses the data in order to improve the accuracy of decision making,
attaining consensus and allowing prediction on the basis of past history.
The digital testing completely covers all the areas of vehicle development (Coyle et
al. 2016). It ranges from simulation and validation of construction to the feasibility, crash
performance, aerodynamics, ride & handling and weight with the help of consumption and
range.
Conclusion:
On a conclusive note, the total quality management does not have any specific
destination and its varying limit is also considered endless. Mercedes Benz constantly makes
an effort of improving as well as different methods and tools which is developed parallel to
the customer anticipations. Hence, at Mercedes Benz the definition of quality is very much
changing. With intense competition and placing the concept of total quality in practice, it is
apparent that Mercedes Benz functions based on the concept of acceptable quality level and
does not has any choice but to adopt the zero defect policy.

10
SUPPLY CHAIN
References:
Chavez, R., Yu, W., Feng, M. and Wiengarten, F., 2016. The effect of customer‐centric green
supply chain management on operational performance and customer satisfaction. Business
Strategy and the Environment, 25(3), pp.205-220.
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Copacino, W.C., 2019. Supply chain management: The basics and beyond. Routledge.
Coyle, J.J., Langley, C.J., Novack, R.A. and Gibson, B., 2016. Supply chain management: a
logistics perspective. Nelson Education.
Delgado, M. and Mills, K.G., 2017. The Supply Chain Economy: A New Framework for
Understanding Innovation and Services. Harvard Business School.
Fredendall, L.D. and Hill, E., 2016. Basics of supply chain management. CRC Press.
Graham, G., Tachizawa, E.M., Alvarez-Gil, M.J. and Montes-Sancho, M.J., 2015. How
“smart cities” will change supply chain management. Supply Chain Management: An
International Journal.
Hugos, M.H., 2018. Essentials of supply chain management. John Wiley & Sons.
Mangan, J. and Lalwani, C.L., 2016. Global logistics and supply chain management. John
Wiley & Sons.
Monczka, R.M., Handfield, R.B., Giunipero, L.C. and Patterson, J.L., 2015. Purchasing and
supply chain management. Cengage Learning.
Mukadam, T., 2015. Improving supply chain visibility at Mercedes-Benz Bus (Doctoral
dissertation, University of Pretoria. Faculty of Engineering, Built Environment and
Information Technology. Dept. of Industrial and Systems Engineering).

11
SUPPLY CHAIN
Novillo Villegas, S.M. and Haasis, H.D., 2017. Supply chain flexibility and SMEs
internationalization: A conceptual framework. In Digitalization in Supply Chain
Management and Logistics: Smart and Digital Solutions for an Industry 4.0 Environment.
Proceedings of the Hamburg International Conference of Logistics (HICL), Vol. 23 (pp. 195-
212). Berlin: epubli GmbH.
Öberg, C. and Graham, G., 2016. How smart cities will change supply chain management: a
technical viewpoint. Production Planning & Control, 27(6), pp.529-538.
Stadtler, H., 2015. Supply chain management: An overview. In Supply chain management
and advanced planning (pp. 3-28). Springer, Berlin, Heidelberg.