John Deere and Complex Parts Inc.

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John Deere and Complex Parts Inc.

Question 1:
Discuss the strengths and weaknesses of John Deere’s Achieving Excellence Program. Consider and discuss other criteria to include in the analysis.

Strengths of Achieving Excellence Program

1) Win/Win Situation

One of the strength offered by this program is a promised Quality product, which is equally important and beneficial for both parties, Deere & Complex Parts Inc.

2) Performance based volumes

This compliance system yields a bench mark for the suppliers and they are supposed to follow it. This ensures that the supplier performing best will get more volumes thus creating an environment of competence to achieve the excellence.

3) Improved Relationship between Buyer and Vendor

In order to implement this program a good deal of communication and coordination is required. Which in turns become a strength of this program to boost up the good relationship between Buyer and Vendor.

4)Further benefit

Suppliers can use the benefits of successful implementation of this program with their other clients as well.

5) Comprehensiveness

AEP is designed keeping in view all the aspects of Supply Chain Management. Its comprehensiveness to cover all the areas is one of its Strength.

6) Dynamic System

Its property of being dynamic and absorbent to new changes, ideas and improvements is also one of its major strength.

Weaknesses of Achieving Excellence Program

1) Absolute Qualitative & Quantitative

Few of the areas such as Cost Management, Wavelength and Technical Support are totally qualitative while areas like Delivery and Quality are absolutely quantitative. This makes it as one of the weakness of this program. Specially absolute qualitative measure can be at times influence by perception and inaccuracy, thus effecting the judgment. We think a mix of both attributes can be assigned to each area.

2) Suppliers short or under-deliveries are not considered in Delivery measurement...
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