Agile Electric-Quality Issues in a Global Supply Chain.Pdf
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AGILE ELECTRIC: QUALITY ISSUES IN A GLOBAL SUPPLY CHAIN
Dhruv Dar, Sanjay Kumar and Vijay Aggarwal wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or transmission without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Richard Ivey School of …show more content…
As it was in Automekâ€™s interest to see that the product was developed successfully, it deputed its engineers to work with Agile engineers for the development. The teams worked together to set up the manufacturing line to produce the product as per Automekâ€™s requirements. The product was successfully launched and Agile continued to supply with zero defects or delivery defaults. Based on the track record, Automek increased its sourcing from Agile by giving it more business. To ensure success, Automek continued to support the development at Agile by deputing its engineers to offer support in setting up Agileâ€™s manufacturing lines. Due to Agileâ€™s attractive pricing, more and more Automek plants in different countries started buying these parts from Agile. It eventually became a preferred supplier of Automek for electrical parts, was often quoted as an example of a low-cost high-quality sourcing model by the Automek global procurement organization and was showcased as an example of Indiaâ€™s manufacturing capabilities by Automekâ€™s India-based procurement team.
Automek buyers were planning to source an actuator assembly from Agile. The supplies were to start in 2008, with the projected requirements being 50,000 units for the first year and increasing to 100,000 and 220,000 units in 2009 and 2010, respectively.
Development of Actuator Assembly at Agile
Automekâ€™s Sourcing Decision Tom Smith, Supplier