Sunwind Ab Case
2) Draw the schematic flow diagram for Sunwind and all Volvo plants. (Draw at abstract level not detailed level). Provides detail of distances and demand (quantity based on 1987 forecast) flow.
Ans) Demand of Sunwind is 1250/week = 1250*45 = 56250 units
The following table gives us the demand of each plant yearly for the year 1985 Plant | | Torslando | Kalmar | Ghent | Total | Year | 1985 | 17050 | 4525 | 12090 | 33665 | | % | 50.65% | 13.44% | 35.91% | 100% | Year | 1987 | 32919.947 | 8736.819 | 23343.23 | 65000 |
Depending on the percentage of share of each plant of the total in 1985, the same percentage is used to calculate the demand of each plant in 1987, as we know the total production of Volvo from all the plants put together in 1987.
3) What are the challenges facing Sunwind? Do they need a change in strategy by Sunwind? Why?
Ans The challenges faced by SUNWIND are as follows : * The main problem is to meet the increase in the demand from Volvo which is around 650 per week in 1985 to 1200 per week in 1986 * There is also a problem of meeting the quality of the finished products supplied by them, some of the machines like gluing machine had proved particularly troublesome and has increased rejects. * Some other bothering issues would be the off-spec plywood blanks received from Finnish supplier. * The rejection of the batches by Volvo as they haven’t met the quality constraints imposed by them. * The demand for the finished goods is around 1400 units/week while the ideal capacity of plant excluding wastages is only 1250 units/week; this mismatch is of a greatest concern for the Sunwind in the present scenario. * The trend of the major manufacturers like Toyota who are working on “Less” suppliers’ model to increase the efficiency is of a big threat as Volvo might even persuade it. * The system of JIT which is being implemented recently by the Volvo group, the Belgian manufacturer is
Ans) Demand of Sunwind is 1250/week = 1250*45 = 56250 units
The following table gives us the demand of each plant yearly for the year 1985 Plant | | Torslando | Kalmar | Ghent | Total | Year | 1985 | 17050 | 4525 | 12090 | 33665 | | % | 50.65% | 13.44% | 35.91% | 100% | Year | 1987 | 32919.947 | 8736.819 | 23343.23 | 65000 |
Depending on the percentage of share of each plant of the total in 1985, the same percentage is used to calculate the demand of each plant in 1987, as we know the total production of Volvo from all the plants put together in 1987.
3) What are the challenges facing Sunwind? Do they need a change in strategy by Sunwind? Why?
Ans The challenges faced by SUNWIND are as follows : * The main problem is to meet the increase in the demand from Volvo which is around 650 per week in 1985 to 1200 per week in 1986 * There is also a problem of meeting the quality of the finished products supplied by them, some of the machines like gluing machine had proved particularly troublesome and has increased rejects. * Some other bothering issues would be the off-spec plywood blanks received from Finnish supplier. * The rejection of the batches by Volvo as they haven’t met the quality constraints imposed by them. * The demand for the finished goods is around 1400 units/week while the ideal capacity of plant excluding wastages is only 1250 units/week; this mismatch is of a greatest concern for the Sunwind in the present scenario. * The trend of the major manufacturers like Toyota who are working on “Less” suppliers’ model to increase the efficiency is of a big threat as Volvo might even persuade it. * The system of JIT which is being implemented recently by the Volvo group, the Belgian manufacturer is