The process of production at Goodyear has undergone various process
modifications and changes over the year. Goodyear has been always
encouraged changes and improvements in the material procurement and tire
manufacturing process. This paper will discuss the improvement in the
downstream supply management of the tires to the company dealers and
private tire dealers. At present, the feedback procedures utilized between
dealers of the product is as shown below.
The process that is set in place at this point appears to be
adequate. There are however, concerns about the long -term robustness of
the IT system that has been in place. Most IT systems get obsolete very
fast. And ensuring the compatibility of systems is often a major
consideration. Any replenishment operation has a set of processes and a
pre-defined methodology for completion of a task. OEMs have defined and
set limits of the safety stock for the tires. They need to complete their
processes within the allotted time. There is no value addition while a
product is kept in inventory. The cost of holding products in inventory
and shrinkage cost also increase the cost of tires. The stage at which the
tires are introduced in the car manufacturing process is generally the
final stage. By this time, most of the value addition has already been
undertaken for the manufacturing process. If there is a shortage of tires,
maximum costs for these car manufacturers would be held up. The idea of
balancing flow (and not the capacity) throughout the plant is important for
the car industry. There are a wide variety of tools within TQM that can be
effectively used in the tire industry. Many of these tools such as JIT and
MRP are already effectively implemented within the processes of the tire
The main items that need t...