Analysis of Operations, Logistics, and Supply Chain at AVP Automotive

This report provides a comprehensive analysis of AVP Automotive's operations, logistics, and supply chain management. It begins with an introduction to supply chain management (SCM) and its importance in maximizing profit and meeting customer demands in the automotive industry. The report then presents a critical review of relevant operations and logistics, covering topics such as quality management, managing people, incentive schemes, and job design. An analytical discussion follows, examining market analysis, customer participation, ISO quality standards, benchmarking, and logistics, including transportation, distribution channels, and inventory management. The report further explores the Economic Order Quantity (EOQ), factors of channel selection, strategic decisions, and customer expectations. Finally, it concludes with recommendations for AVP Automotive to improve its operations and supply chain, ensuring its competitiveness in the global market. The report emphasizes the importance of quality products, customer satisfaction, and efficient management practices.

UNDERSTANDING OPERATIONS, LOGISTICS AND SUPPLY
CHAIN MANAGEMENT OF AVP AUTOMOTIVE
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Table of Contents
Introduction......................................................................................................................................3
Critical Review of relevant operations and logistics.......................................................................3
Analytical discussion.......................................................................................................................5
Conclusion and Recommendations................................................................................................10
Reference list.................................................................................................................................11
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Introduction
Supply chain management (SCM) is the most active management which help the enterprise to
maximise its profit margin and their product demand in modern market. It helps the organisation
to run their activity in recent market in an effective way. SCM covers all the effective activities
of the enterprise which include sourcing, product development, logistics, production, and
technology. Advanced technologies increase the interaction with their stakeholders and modify
their strategy in order to meet their current trends of their target customers. Logistics deal with
the detailed activities along with implementation of perfect strategy in the enterprise. A car
manufacturing company like AVP Automotive has to consider many aspects while managing
supply and logistics in that concern, most of the important aspects is managing people in
operation and supply chains and logistics mix along with product quality management. The
thesis statement of the study is to analyse all of these aspects along with searching for some
recommendations.
Critical Review of relevant operations and logistics
Proficient coordination administration is progressively turning into a survival factor for the car
area. In states of post-emergency effects to car industry and exceptionally focused weight of
automakers in worldwide market, the adaptability to administration of materials and data stream
in vehicle gathering plants is proclaimed as the key determination to future development. The
fracture and division of vehicle models like hatchbacks, cars, vans, and get are derivates to
minivans, traverse cars, roadsters, two-seaters vehicles, SUV and so on are developing. The
unpredictability of modified models and variations is on the expansion, particularly with respect
to how singular vehicles are prepared. Vehicle maker must timetable the supply at couple of
thousand sub-congregations and segments in vehicle, with billions of conceivable mixes to auto
furnish.
Managing quality and operations: Operation helps the enterprise to manage the activities of
the operation management. Logistics focuses on complex activities of the enterprise. The
management team monitors the activities of the employee along with their equipment in the
company. SCM manages the materials, finances and information in the enterprise and it increase
the coordination and integration among the organisation.
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Barratt (2014, p.30) stated that production integrates the input and output of the company in
order to raise the customer satisfaction. It deals with the training of the workers, equipments in
the company.
On the other hand, productivity increases the output from each unit of the production procedure.
It increases the output, profit margin of the business.
Assessment strategy in brief
AVP Automotive performance increases the satisfaction of using a vehicle and profit margin of
the enterprise. Expert manufacturers give proper training to casual worker groups in order to
increase their execution on level and creativity in order to enhance vehicle quality. This enhances
the productivity of it and meets the current needs of the customers. Strategy and product is
created by the management team in such a way that the enterprise can easily prevent the chaos
from it, meet the current demands of user, interaction with stakeholder and modification of
product enhance the satisfaction level of them. This enterprise follows the SCM which help it to
increase their production level and recognition in global market. Lee and Billington (2013, p.65)
opined that quality product with reasonable price and perfect service enhance the user
satisfaction and identification of the enterprise in global market.
Product life cycle focuses on the different stages of the product which enhance the product
quality, execution level of the workers and profit margin of the enterprise. The stages of the life
cycle include:
Introduction: researching, developing along with launching of product
Growth: this step focuses on the sale.
Maturity: saturation of businesses due to competitors.
Decline: sale begins to decrease.
Quality measures the products positive and negative factors in the enterprise. Time quality
management (TQM) focuses on the management approach and help the enterprise to bring the
long term success. All the members participate in order to improve the process, products, culture
and services of the organisation.
Managing People: Training is given to the workers which help them to enhance their execution
level by following the rules and policies of the enterprise. Perfect training helps the worker to
perform optimum use of resources. This decreases the waste cost and enhance the product
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quality and service. The process designed need to be performed in such a way that the input cost
is lower and output gives more profit to the cafe.
Issues of job design
The management team need to follow the government rules related to business law and political
parties policies. This will prevent the conflicts and government penalties from the enterprise.
Internal environment need to be well disciplined and every employee respect each other which
help the enterprise to diminish the ego and grudges from internal environment.
Incentive scheme
As per motivation theory, it is important to provide sufficient remuneration or incentives to
maintain optimum dedication of employee groups. Therefore, AVP Automotive can easily
increase production rate by providing incentives. Attractive incentives can better increase
expertise and better implementations of training and development.
Different ways that establish the labour standards
Training is given to the labours in order to enhance their skill and study material is provided to
the so that they can improve their skills by self dependent method. Gunasekaran et al. (2016,
p.87) demonstrated that Reward and deduction of salary is performed by the management team
which improve their execution skills.
Analytical discussion
The management team of AVP Automotive perform market analysis in order to mitigate the
negative issues of their product. Kannan and Tan (2015, p.162) commented that the customers
can easily give their feedback to the enterprise by the help of technology. Thus, the higher
hierarchy takes all the suggestion of their stakeholders to raise their satisfaction level and
increase their product demand in recent market. The modification of strategy is performed
depend on the macro and micro factors of the company. This helps the enterprise to diminish
their negative issues and chaotic attitude from the organization.
Quality product with perfect service and reasonable price help the enterprise to raise their
product demand and increase their identification in global market. Systematic strategy and
perfect product quality help the enterprise to easily compete with their competitors in recent
market.
Operation management focuses on the input and output of the enterprise that help the company
to increase their recognition in global market. Mentzer et al. (2016, p.25) mentioned that input
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includes the raw material, equipments, worker energy and performance level. The output deals
with the services and goods quality. Perfect product quality with perfect price and services meet
the current demands of the customers. This product quality helps the enterprise to easily compete
with their competitors present in the global market.
Customer participation related to product designing and services
In order to maintain sustainability and regular availability of car products in the market, it is
important to have expectations of customers. Therefore, AVP Automotive should consider all of
the efforts to have customer grievances. A car product should be attractive as well as it should
convey the best design to beat market competition having attention of optimum customer groups.
Four strategies
New product launching and metrics:
The management team launch their product by performing the market research and analysis.
Higher officials monitor the product demand and profit margin in recent market.
Product development and market understanding:
Chen and Paulraj (2014, p.163) commented that feedback of the user and other stakeholders help
the management team to modify their product and enhance enterprise recognition in present
market.
ISO quality standards in Ritz-Carlton hotel company and Arnold Palmer hospital
Stank et al. (2014, p.40) commented that ISO is the international standards which are composed
of many representatives from national standards enterprises. It improves the security of the
enterprise related to their products and services to target customers. ISO help to reduce the cost
and decreases the waste along with increment of productivity. The respective car manufacturing
company is ISO certified and their services are quite secure in nature and enhance their
recognition among service users.
Benchmarking TQM
It helps to compare the performances of a respective business with best performances industry.
Thus, the management team of the AVM Automotive raise their performances by modifying
their strategy; adequate training is given to the workers to enhance their performance and so on.
Seven tools related to TQM
Horvath (2015, p.206) stated that cause and the effect diagram, check sheet, control charts,
histogram, parent chart, scatter diagram, stratification are the seven tool that advanced business
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organisations should follow. Continuous improvement and change management strategies help
improve products along with dynamic requirements of customers.
Logistics
Stewart (2017, p.62) stated that it help to meet the users demand of the enterprise by
implementation of effective planning, control and storage related information services and goods
from the origin to ultimate destination. For a car manufacturing company, it is important to have
better convenience of transportation. Without having the same a global logistics cannot managed.
On the other hand, there is a possibility that distant customers may not find a service support
regarding car repairing and regular services. In that aspect, it is important to have a better
logistics and transportation support.
Figure 2: Transportation mode
(Source: Stewart 2017, p.62)
Distribution channel
Wider and extensive transport increases the efficiency of the communication and service quality
of product according to user's expectation. Manufacturers maintain the balance between the
government and terminal operators to avoid conflict in the enterprise. Croxton et al. (2014, p.13)
commented that this management monitors the planning effectiveness and company's output and
sale in recent market.
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Transportationmodewaterairroadrail

Reasons related to holding inventory
Effective inventory management help the AVM to calculate their input and output. Thus, the
management team can easily take essential steps to reduce the negative issues of their enterprise.
Inventory impact related to ROI
ROI help the enterprise to determine their present profit related to their total assets. The
enterprise can easily determine their current assets by the help of ROI.
Economic Order Quality (EOQ)
Seuring and Müller (2015, p.1710) demonstrated that it help the car business to reduce their total
cost of inventory which includes order costs, holding costs and shortage costs.
Factors of channel selection and evaluation
It creates a relationship between the producer and the user. AVM takes the user’s feedback in
order to meet the current demands of the present users.
Tactical, strategic and operational decisions
This decision helps the enterprise to create a perfect planning and enhance the recognition of it in
modern market.
Logistics mix
It helps the organisation to create effective planning that meet the current demand of the users. It
increases the communication level with the enterprise and its stakeholders. Logistics mix focus
in the activities of the communication channel of AVM Automotive.
Customer’s expectation
Good product quality with perfect service and reasonable price of it enhance the product demand
of the customers. Modification of product depend on the feedback of the customers help the
enterprise to maintain their identification in global market.
Supplier’s criteria in order to rank the buyers and purchasing
Lambert and Cooper (2014, p.65) mentioned that criteria includes cost, quality, safety, service,
social responsibility, risk and agility. Reasonable price and good quality product enhance the
demand of it in recent market. A car manufacturing company should be well established along
with supplier’s support. The reason is that without having quality raw materials such a
automobile product cannot maintain quality standard in the market.
Principles of AVM production System
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The management team performs adequate research in order to diminish the negative issues of the
strategy. The research includes the internal and external factors of the enterprise. Good
communication with lower and higher hierarchy gives a clear idea of the worker task. Thus, the
worker can easily perform the task and the trainer gives training to increase the conduct level of
them.
Seven waste and 5S’s
Carter and Rogers (2015, p.387) stated that the seven waste includes the waste of transport,
motion, inventory, over processing, overproduction and defects. 5S includes the space and
standard quality of working environment in the enterprise. 5S includes sort, shine, set in order,
standardise and sustain.
Lean operations and Sustainability
It reduces the negative issues of the production in the enterprise without affecting its
manufacturing system.
Figure 1: Product life cycle
(Source: Kannan and Tan, 2015, p.162)
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ProductlifecycleIntroductionGrowthMaturityDecline

Jüttner (2015, p.120) illustrated that right location is the main ingredient which can enhance the
business in global market. The layout needs to be performed by the help of macro analysis
procedure which includes linear programming, factor rating process and gravitational factor.
Different types of layout:
There are four types of layout which include product, process, fixed and cellular. Product layout
focuses on the product quality of the enterprise. Cox (2017, p.175) opined that process layout
depend on the procedure of the product along with raw material, labour and equipments. Fixed
and cellular layout focuses on the material movement and promotes product quality. It helps to
modify the strategy related to product design, production volume and product mix of a product
manufacturing company.
Conclusion and Recommendations
SCM help the different organisation to monitors their activities and take all the necessary steps in
order to decrease their negative issues. Perfect planning in production, service enhances the
recognition of the company in global market. Good interaction and feedback of the customers are
taken into account by the management team to create the strategy. Higher hierarchy perform
adequate research on market so that the enterprise can easily maintain identification in recent
market. Based on the above scenario of supply chain and logistics, the following
recommendations can be made:
 AVM Automotive can engage more professionals to increase logistics operations.
 Secondly, management can operate scheduled training support for the employees that
productivity of professionals can raise.
 Finally, it will be better to make regular surveillance on issues and barriers so that issues
and hazards can be detected.
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Reference list
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