From These standards include that suppliers have the

From perspective of suppliers, Trumpf
sets high performance standards when it is selecting its suppliers so that it
could maintain and expand the position as a provider who could offer high
quality and innovative products and services (Trumpf Inc.). These standards
include that suppliers have the ability to provide high-quality, competitive
price, low replacement times and highly flexible products and services (Trumpf Inc.). These standards are
the fountain for Trumpf to produce its products at high quality degree. Furthermore,
Trumpf also requires suppliers’ technical experts to make sure that key
components and services fulfill the requirements (Trumpf Inc.). As a leader in the
industry, Trumpf also sets agreements with suppliers to avoid misunderstanding
or conflicts in further collaboration (Trumpf Inc.). These agreements
are named Conditions of Purchase and Goods
delivery guideline (Trumpf Inc.). Moreover, orders
will be awarded when the total costs, supplier status and any available
supplier evaluations are at a high performance level (Trumpf Inc.). The effect of the
action is not only to motivate suppliers but also employees from Trumpf.

Before introducing
how Trump increases its efficiency and responsiveness, one point has to be
mentioned. Efficiency and responsiveness cannot be improved at the same time, and
they have to be trade off by the company. Since efficiency stands for less
inventory and making customers willing to pay, and responsiveness represents
more inventory and customer’s priority is cost or price.

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Generally, based
on the case study, Trumpf’s supply chain strategy was not mentioned. In addition,
the supply chain strategy is implemented to organize the material procurement, transportation
of material, manufacture of products and distribution of products. As a result,
methods that undertook by Trumpf in order to improve its efficiency and
responsiveness will be explained from the perspective of the supply chain. Generally
speaking, the supply chain can be divided into three phases. The first phase is
the supply process, which enables a company to organize the relationship with
the suppliers, also the transportation of goods (Dawei, 2011). The second phase is
the manufacturing phase, which requires products to reach goals (Dawei, 2011). The third phase is
the customer phase, which needs a company to deliver the product to customers
followed by specific requirements, and put efforts on the after sale service (Dawei, 2011). In this chapter,
how Trumpf utilizes its supply chain strategy to increase its efficiency and
responsiveness will be introduced.

3.     
Supply
chain strategies’ impacts on Trumpf

 

Generally speaking, Trumpf is a company
that applies the ‘lean’ system in every step of its running process. From the
first step of setting goals, to the very last step of a work shop event, Trumpf
keeps seeking the opportunity to realize the chance, set a measureable and long
term goal, highly efficient and non-error working process, and continuous
improvement of each operation. This is the main reason why Trumpf could
utilized the lean system as much as possible.

The other lean tool has been applied by
Trumpf is called CI workshops, which is the abbreviation of continuous
improvement workshops. Basically, the CI workshop focuses on the press brake
operation in the sheet metal department since it’s a bottleneck operation. To
improve the performance of the sheet metal department, Trumpf invites the AME
group to visit the work area and express their ideas. After a presentation
based on the workshop’s working process, AME participants use a brainstorming
exercise and to develop a number of initiatives and prioritize these
initiatives. Based on the prioritization, AME participants are able to give
their suggestions about how to improve the performance of the working process. At
the same time, they could also bring back ideas on how to improve their own
production plants. The implementation of CI workshop not only offers a chance
for certain bottleneck operations to improve their performance but also enables
AME participants to learn from other workshop in order to improve their own
production plant.

Trumpf implements a typical kaizen in
the process of conducting workshop events. Via Trumpf’s daily published
newspaper, one-point lessons are frequently updated in the newspaper. Through
one-point lesson, ideas for improvement or a before and after picture about the
result of a new idea could be illustrated, which is a method that enables
employees to update the process of the production plan and to be more creative
toward the working process.

The other lean tool is kaizen, which has
been introduced in the beginning of this chapter. Kaizen is a lean tool that
focuses on using the team power to make improvements (Breyfogle, 2007). A kaizen will be undertaken if an
analysis indicates that it is the most efficient approach to improve a project’s
performance (Breyfogle, 2007). It is a continuous
improvement process that allows people to use their team power to fix specific
errors, workflow issues or to catch the opportunity of improving a business’
performance.

Synchro provides the framework for the
entire Trumpf to manage the relationship among its employees, external
specialists, production lines and products in order to make sure that ideas
will be brought out and communicated in a more effective way. From the
perspective of setting up goals for each workshop of, Trumpf applies other lean
tools like value stream mapping (VSM), 5S and audits. With these lean tools,
each product plant could develop their own lean initiatives, which offer a
roadmap to develop plans and goals.

Moreover, Trumpf also hires additional
Synchro team members that have different views toward the working process, and
the selection is called the standard work team selection. This selection
enables that each workshop of Trumpf has the ability to balance the people and
skill in order to create a more efficient and productive process. In other
words, to shorten the time of noticing and solving problems, increase capacity
utilization and productivity, reduce throughput times, accelerate the material
flow, and cope with errors openly (Trumpf Inc.).

However, the existence of several production plants could
lead to conflicts among different production plants (Schaller). To avoid this,
Trumpf maintains its employees’ responsibilities by learning about the product
and documenting the working process. In addition, it is part of Synchro
managers’ job to make sure that workshops have measurable goals that support
company goals (Schaller). The
openness of each production plant’s information further enhances employees’
personal responsibility, provides orientation, and helps to prevent errors (Trumpf Inc.). Furthermore, to
ensure working processes could be done at a higher efficient level, Trumpf also
hires external experts to give superior suggestions for their working
processes. Generally speaking, the core Synchro team’s involvement in both
production and administrative departments of each facility, which makes ‘lean’
happen in every part of the company (Schaller).

First of all, as it was mentioned above,
the Synchro has been used on all of Trumpf’s business
processes, which provides a well structured working process framework for
Trumpf. Trumpf owns several production plants, each of them have their own core
teams. Each core team contains the manager, specialists, and external and
internal shop consultants who could report to the executive leadership at each
production plant so that information could be as transparent as possible. Thus,
the leadership skill for these core tea members is extremely important for
increasing Trumpf’s efficiency. Trumpf has strict requirements on selecting
core team members. Core team members are required to have good communication
and people skill so that they could express their suggestions to direct labors
and senior managers properly, and encourage direct labors in an appropriate
way. Moreover, core team members are also required to have experience in the
Synchro process so that they could supervise the working process from a professional
point of view (Schaller).

According to the case study, key points
of the Synchro lean operating system are the Synchro organization, the
improvement drivers, Synchro team responsibilities, pre-Synchro workshop steps,
and the steps for successfully conducting a workshop (Schaller).

Synchro is Trumpf’s value creation system that has been
introduced in 1998 (Schaller). Synchro has been
used on all of Trumpf’s business processes, which allows employees, production
lines and products connected in order to achieve information transparency (Trumpf Inc.). At the same time,
the Synchro lean operating systems increase the utilization of materials by manufacturing
products with as little waste as possible (Trumpf Inc.). Before explaining
how Trumpf’s Synchro system increase its efficiency, principles rely in Synchro
have to be introduced in the first place in order to understand motivations
behind its actions. The principles for Synchro are excellence and transparency (Trumpf Inc.). According to Trumpf’s
explanation about its Sychro, it states that: We
want to be and remain exemplary in terms of efficiency, technology, and people.

Lean manufacturing basically means cost reduction through waste elimination, for example, short throughput
times instead of high stock levels (Breyfogle, 2007). Generally, according
to the case study, Trumpf applies three types of lean tools mainly, the first
one is its own created lean operating system called Synchro, the second type of
its lean tools is the well-known kaizen process, and the third lean tool is CI
workshop. Also, some other lean tools have been mentioned in the case study,
which are value stream mapping (VSM), 5S, and audits (Schaller).

2.     
Lean
tools’ impacts on Trumpf (950)

In the first
part, the introduction about lean tools that have been used by Trump will be
explained. Then details about how Trumpf enhances its efficiency by using lean
tools. In the second part, Trumpf’s supply chain strategy will be also
introduced in the first place, and followed by discussing Trumpf’s
implementation on its supply chain strategy. In the final part of the paper, a
conclusion will be drawn in order to end this paper.

This paper
mainly focuses on discussing how Trumpf can increase its overall efficiency and
responsiveness by applying lean tools and supply chain strategies.

Trumpf was
founded in 1923, is a family-owned business. Trumpf is the leading company in
the industry that manufactures machine tools, laser technology, and electronics
for industrial applications. With 12,000 employees and highly efficient working
performance, Trumpf achieved high revenue and reputation in the industry.

1.     
Introduction

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