Logistics, Operation and Supply Chain Management Report

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LOGISTICS, OPERATION AND
SUPPLY CHAIN MANAGEMENT
COPY 1

Table of Contents
About Vauxhall Motors...................................................................................................................3
Theories and techniques regarding Managing Quality....................................................................3
Total Quality Management..........................................................................................................3
Six Sigma.....................................................................................................................................4
Cost of Quality.............................................................................................................................4
Logistics Mix...................................................................................................................................5
References........................................................................................................................................6

About Vauxhall Motors
Vauxhall Motors is an automobile company which is in the service of manufacturing cars since
1903. It was founded in the year 1857 by Alexander Wilson. With the successful selling of the
cars, vans, buses and trucks, Vauxhall is the second-largest brand for selling cars in the United
Kingdom. Vauxhall sell cars and commercial vehicles under their brand’s name and sell trucks,
buses and vans under the name Bedford Vehicles (Vauxhall, 2019).
As this brand was introduced at the time before second-world war, it became extremely famous
after the war. The production of cars in Vauxhall began in the year 1903. The production output
of the vehicles is 118,182. There are around 4,000 employees in Vauxhall. The staff is extremely
trained and qualified. The revenue generated by Vauxhall is around 3837 Euros (Vauxhall,
2019).
The cars produced by Vauxhall are under the names of Victor, Viva, Cavalier and Chevette.
These cars are manufactured by Opel and are rebranded by Vauxhall. Their main goal is to
reduce the carbon footprint and to contribute in the environmental sustainability. The customer
service provided by this organization is commendable. The staff is highly trained and has the
knowledge of automobiles. Clear and timely communication is done by the staff members so as
to avoid the communication gap (Vauxhall, 2019).
Theories and techniques regarding Managing Quality
Total Quality Management
Total Quality Management is the management approach for long-term success through
satisfaction of the customers. The members of the organization put all their efforts and energies
into the production, processes, services and the culture in which they job (Asq, 2019).
The total quality management system defines the working of the customer-based organization.
The plans and strategies are used in order to satisfy the customers in the best possible way. This
also helps the organization maintaining the sales and profit. Following are some of the principles
of total quality management:-
 Customer-focused- this defines that an organization is working to satisfy the customers.
The customer decides whether the efforts and training of the staff was worthwhile or not
(Honarpour, et.al, 2012).
 Total employee involvement- employees are properly trained for management of the
organization. Proper management will provide a better environment to the customers as
well as the employees (Honarpour, et.al 2012).
 Process-Centered- the internal and external environment of the organization is properly
managed and organized. The internal environment means production and manufacturing

of the goods and services. The external environment is the distribution
of the goods and services (Honarpour, et.al, 2012).
 Communications- soft and smooth communication is promoted between the company
and the supplier. This communication is mandatory to track the delivery of the products.
Six Sigma
Six sigma is defined as the statistical data which is used in order to eliminate the defects from a
good and service. It was developed by Bill Smith. In this methodology, the sigma is referred to
the standard deviation of population. It is calculated as the by calculating the mean of the six
standard deviations from the nearest condition (Fursule, 2012).
For Example- in order to satisfy the consumer, the thickness of the fabric of a particular cloth
should be from 10-14 inches, then the calculated mean will be less than 0.0005 assuming a
normal distribution.
Following are the advantages of Six sigma:-
 Customer satisfaction- after the use of six sigma, new methodologies and techniques
will be introduced and applied by the company in order to make a better product. This
will not only increase the customer satisfaction but also the name of the organization
((Graves, 2012)).
 Customer loyalty- once your customer is satisfied with your services, he won’t look for
an option. This will help in maintaining the loyalty of the consumer. The customer wants
quality and reasonable price for the goods. If a company is successful in doing this, they
will get more consumers (Graves, 2012).
Source- (Graves, 2012)

Cost of Quality
Cost of Quality is defined as the extra cost paid to ensure that the consumer receives a quality
product. The cost of quality includes the repairing defects, prevention, appraisal, etc. Cost of
quality observes the cost of control and the cost of failure of control. In other words, we can say
that cost of quality is calculated as:-
Cost of Quality= Cost of Control+ Cost of failure of control
Where, the cost of control is the sum of appraisal cost and prevention cost and cost of failure of
control is the sum of internal failure cost and external failure cost.
Appraisal cost is defined as the money invested in the efforts to detect the defects in the product.
Prevention Cost is defined as the cost which is being invested in preventing the defects from the
products (Sailaja, 2015).
Internal Failure Cost is defined as the cost spent on the goods and services to detect the internal
defects and the efforts installed to correct them. On the other hand, the external failure cost is the
money invested in detecting the external defects in a product, goods and services and the efforts
used to correct the defects (Sailaja, 2015).
Node of a distribution networks
A node of a distribution network is defined as the supply of the goods and services from the
company to the retail stores. For a company to grow the consumers, it is important to deal with
the retailers. A good amount of retailers always help in making a company. This is because good
retailers have more access to the stores, and the more distribution of goods and services, the
more is the growth (Stanson, 2019).
Source- (Stanson, 2019)

This image defines the distribution of goods and services from a factory to the retailers. This
explains that the raw materials are brought into the factory. The factory then produces the
products and goods for the customers. The produced goods and products are then sent to the
distribution centre. Physical transportation is done by the company itself. The distribution centers
then inform the dealers and brokers for the pick-up. The dealers and brokers then take these
products and goods to the retail shops. The transportation from dealers to retail shops is done by
the dealer himself. Company does not pay the dealer for delivering the goods and services. The
products and goods manufactured are then bought by the consumer (Stanson, 2019).
For a company, it is important to make links and nods. It helps in making them aware of the
consumer’s changing tastes and preferences. Also, with the help of links and nods, the company
will be able to distribute the goods and services more to the consumer. These links helps in the
expansion of organization in the eyes of the public. A company’s goal should be delivering
maximum output at lowest cost. Automatically, the company will grow, if the consumer’s are
satisfied with the services provided by the company.
Logistics Mix
Logistics mix is also known as the logistics management. It is defined as the management of the
distribution of the physical goods and services. The products and services which are
manufactured by the company is given to the retailers and dealers for further distribution. These
products are then sold to the consumer. Following are the functions of logistics-
Order processing
Under this function, the order from the consumer is accepted by the company. The company then
gives order to the warehouse. If the customer has already paid for the products, then an entry is
being made in the company’s book and the warehouse manager is also told to deliver the product
as soon as possible (Kersten, et.al, 2012).
Material handling
It is defined as the movement of produced goods and services to the warehouses. The main
objective is to move the goods and services in a way that the warehouse is able to process the
orders. Smooth and organized placing is done (Kersten, et.al, 2012).

Warehousing
A company should make sure that the warehouses are near to the dealers and brokers. This way a
dealer would easily communicate to the warehouse in need of the products and services. Also, it
will be easy for the dealers to give the products to the consumers (Kersten, et.al, 2012).
Transportation
On an average, a company lakh of rupees in the transportation of the goods and services to the
dealers. In order to avoid these overspending of the money, companies physically transport the
goods and services to the dealers. The dealers then with their own convenience, supplies the
goods to the shops and markets (Kersten, et.al, 2012).

References
Vauxhall, 2019. About Vauxhell. [Online]. Vauxhell. Available at- https://www.vauxhall.co.uk/
[Accessed on 13th July, 2019].
Asq, 2019. What is Total Quality Management? [Online]. Asq. Available at-
https://asq.org/quality-resources/total-quality-management [Accessed on 13th July,2019].
Honarpour, A., Jusoh, A., Nor, K.M. 2012. Knowledge Management, Total Quality Management
and Innovation: A New Look. Journal of Technology Management and Innovation. 1(1). Pp. 22-
31.
Graves, A. 2012. Benefits of Six Sigma Certification. [Online]. Sixsigmadaily. Available at-
https://www.sixsigmadaily.com/what-are-the-benefits-of-six-sigma-certification/ [Accessed on
13th July, 2019].
Sailaja A., Basak, P.,Viswanadhan, K.G. 2015. Hidden Costs: Measurement and Analysis.
International Journal of Managing Value and Supply Chains. 6(2). Pp. 13-25.
Stanson, D. 2019. Designing your Supply Chain Network. [Online]. Dummies. Available at-
https://www.dummies.com/business/management/designing-supply-chain-network/ [Accessed
on 13th July, 2019].
Kersten, W., Blecker, T., Ringle, C,M. 2012. Innovations and Strategies of Logistics Supply
Chains. Proceedings of the Hamburg International Conference of Logistics. 1(1). Pp. 1-587.
Fursule, N.V., Bansod, S.V., Fursule, S.N. 2012. Understanding the Limitations and Benefits of
Six Sigma Methodology. International Journal of Scientific and Research Publications. 2(1). Pp.
1-9.