Robust Supplier Management - Mapping and Improving the supplier management and purchasing process of Tier-1 automotive supplier

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Examensarbete för masterexamen
Program
Quality and operations management (MPQOM), MSc
Publicerad
2021
Författare
Badri Narayanan, Desikan
Tharayil, Vighnesh
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The increased competitiveness in the market pushes companies to improve their business processes to achieve efficiency and effectiveness. This thesis work is carried out on a Tier-1 supplier of automotive components aimed at improving the supplier management of the company in the purchasing process. The theoretical framework engraved a variety of topics which supported the authors during the data collection, analysis and improvement parts of this thesis work. The thesis work employed qualitative research strategy with the inductive research approach followed by the case study research design. The data collection tools used for this thesis work includes Process and Enterprise Maturity Model (PEMM) questionnaire to assess the organizations and purchasing function’s maturity, organizational documents consisting of business processes activities and interviews with the stakeholders from the purchasing function. The empirical data from the organizational documents have been categorized into supplier management, project purchasing and supplier management in serial production processes and they have been transformed into process flow charts based on the “Spiral of knowledge”. The interview findings were categorized into direct and indirect purchasing based on the organizational process documents. The gaps in the “As-is” process of the supplier management, project purchasing and supplier management in serial production in direct and indirect purchasing have been determined based on the interview data. The escalation model for quality deviations is a sub process of supplier management in serial production identified as a critical opportunity for improvement in the company based on the “Gap analysis”. The PEMM questionnaire captured the current maturity level of the purchasing function and the company. The results of this thesis work includes both minor and major improvements in the supplier management and purchasing processes. The minor improvements consist of responsibility changes and the major improvements consist of redesign of the escalation model for quality deviations. The supplier management, project purchasing and supplier management in serial production processes have been improved based on the theoretical framework and IATF 16949 standard. The “To-be” supplier management in the serial production process was designed based on the data integrated from the three sub processes. The knowledge management areas of the direct and indirect purchasing were addressed and improved. Further, the thesis concluded that the change agents and liaison personnel will play a key role in implementing the improvement processes. By incorporating the improvements, the maturity of the company and purchasing function would improve in the future.
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