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SCMA 311

SPECIAL TOPICS IN SUPPLY CHAIN MANAGEMENT

SYNDICATE ASSIGNMENT

DUE DATE: 28th AUGUST 2013

All assignments are to be typed, printed and delivered to the office of Setjhaba Mokeki on the due date. Late assignments will be penalized by 10% SCMA 311 - SPECIAL TOPICS IN SUPPLY CHAIN MANAGEMENT

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SYNDICATE ASSIGNMENT

Assignment Brief
In your study syndicates, you are expected to read, analyse and interpret the key underlying issues of the following case-study titled "The Privileged Fly". Five (5) questions have to be answered and these questions can be found at the end of the case study.

Your answers to the questions must relate to the issues in the case, however you are expected to support your responses with appropriate and relevant literature from the prescribed text: Monczka et al, 2009. You may also reference internet sources if you wish to do so. The Harvard method of referencing applies to this assignment.

The assignment will be assessed according to the following rubric items: Style and structure Introduction to the Topic Data Analysis Grammar & Language Literature Review Conclusion & Recommendations 20% 10% 40% 10% 10% 10%

Fritz Hillen (Senior Lecturer)

SCMA 311 - SPECIAL TOPICS IN SUPPLY CHAIN MANAGEMENT

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SYNDICATE ASSIGNMENT

THE PRIVILEGED FLY

You are a privileged fly: You are allowed to be on the wall of a corporate boardroom during a High-powered discussion. The corporation is an engineering firm whose sales total approximately R140 million a year. Up to now, things appear to have been going well. Production does an efficient job, and inventories have been reduced. But danger signs are cropping up. Although no orders have been lost yet, several shipments have missed their deadlines. Customers are beginning to complain. In addition, transportation costs on incoming and outbound freight shipments are mushrooming. It is 9 a.m., and several people are nervously sitting at the conference table. A stern-looking individual enters.

The Cast • Production manager: Heinrich Holtz, former blue-collar worker. Loves his machines and hates to see them idle. However, beneath his “good of the corporation” exterior lies the soul of a power maniac who seeks control over traffic and supply management. • Marketing manager: Harold Levi, a stereotype. Is afraid of losing sales because of late deliveries. Generally, echoes presidential statements. Appears ready to support Heinrich Holtz‟s power play • President: Joe Gish, old-line type. Gish is an extremely successful man. Has just attended a National Industrial Conference Board (NICB) seminar and is throwing a lot of new buzzwords and thoughts around. From his subordinates‟ point of view, he is dangerous. • Traffic manager: Harold Tracks, another old-liner, but much less successful. Not good at verbalizing, except to quote percentage increases. His freight bills are going up, and he is being made to look bad by comparison. • Supply manager: Joan Glass, much younger than her associates. Does her best. Understands president Gish‟s words and tries to put some of them into action. Extremely inventory conscious. • Director of finance: Sol Stein, dedicated to cost reduction.

SCMA 311 - SPECIAL TOPICS IN SUPPLY CHAIN MANAGEMENT

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SYNDICATE ASSIGNMENT

Action (This is what the privileged fly observes and hears.) President Gish brings the meeting to order. “Look at these air freight bills! Here‟s one for R955—more than the damn part is worth! I know, I checked! These things are murdering us. You must realize that in our business today, transportation has great cost-cutting potential!” The Traffic manager‟s response: “I know that freight bills have risen 30 percent in the last six months, but what can I do? Miss Glass here is cutting inventories so hard that she never has anything in stock. Her short lead times force me to use airfreight. And the way she spreads small orders, I almost never find a way to consolidate them to get...
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