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Joint Student Project Global Supply Chain Management in the Automotive
Industry |
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As we close in on a decade of internet-based market globalization, international experience is now no longer just an advantage. It is a core necessity for recognition as a high-quality, well-paid employee. To obtain the needed international exposure before employment, students are encouraged to work overseas during their semester break, spend a semester or a year studying at a university abroad, and, as done in this assignment, collaborate electronically across the oceans via the internet.
The faculty at Morehead State University (Prof. Dr. George Kelley) and Munich University of Applied Sciences (Prof. Dr. Georg Peters) have agreed to integrate an international globalization component in their course work. They have set up a joint student project in the field of Business Administration and Information Systems. Each university student team will play the role of representatives for their employers, two global companies in the automotive industry. The Morehead University team will represent a global automotive assembly plant with an innovative product line. The Munich University team will take the role of a global supplier of high-performance automobile engines. The overall objective of the teams is to establish a basic understanding of how the two companies could collaborate and conduct business electronically via the internet. The specific tasks to be completed by the teams are given below. The two teams must each complete a set of tasks a week. The project runs for 5 weeks, from October 20, 2003 to November 21, 2003.
MoreCar, a global manufacturer of high-technology specialty cars, will celebrate its 50th anniversary in the year 2004. To recognize this milestone, MoreCar is planning to launch a highly innovative car code-named TechnoLux™ The new car will have a new 8.5 liter, 12 cylinder engine than runs on a mixture of coal ash, water, and Bavarian pretzels. The engine outputs an incredible 1035 horsepower (DIN) at only 350 rpm, and offers an astounding 1637 lb-ft of torque (SAE) at 9100 rpm. This revolutionary engine is produced by M3 AG, a renowned global supplier of high-performance car engines.
Company
Profiles
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MoreCar - Morehead Cars Inc. o
Global Automotive Mfg o
SIC 3711 o
Established in 1954 o
Employees: 50,000 o
Revenues: US$ 10 billion |
M3 - Münchener Motoren Manufaktur AG. o
Global Tier 1 Automotive
Supplier o
SIC 3519 o
Established in 1983 o
Employees: 5,000 o
Revenues: US$ 1 billion |
Because this is the first
commercial cooperation between the two companies, they have each set up a carefully
selected team tasked with the goal to standardize the electronic processes and
interfaces between the companies. You are a member of this prestigious team,
and are excited about the visibility and related promotion opportunities it
makes available to you. The new car will be announced to the world at Hofbräuhaus in Munich and on Times Square in New
York at midnight on January 1, 2004.
This deadline makes the
timeline for the project very tight. So
far the virtual CEOs of MoreCar and M3, Kelley and Peters, have
spared no effort to see the project started.
They have played lots of golf and had several expensive dinners in fancy
restaurants. They have agreed on every
strategic design issue: the color of the car, the layout of the interior, the
size of the alloy wheels, and last but not least on the next golf course to
play. Only some "details" remain unsolved for the project teams to
address. These "details" all
relate to how the two teams are to collaborate at the operational level. The one key instruction given by the CEOs is
to structure the project deliverables according to a two layer architecture:
o A Business Layer
o An IT Layer
Any "details"
related to design of these layers are the responsibility of the project
teams. The steering committee, led by
Kelley and Peters, has also already agreed on a firm timetable, the core tasks,
and the key deliverables of the collaborative project between their companies.
These requirements as shown in the next section are not negotiable. They must be delivered by the project team in
a timely manner.
3. Project Deliverables and
Timetable
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Pre-Project |
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# |
Deliverables
MoreCar and M3 |
Deadline |
Status |
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1 |
Find
and read some background literature on SCM
and SCM
terminology. |
17.Oct.2003 |
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2 |
Develop
a Project Team Profile: ·
Write a 1-page Project Team Mission Statement. ·
Identify project roles and responsibilities. ·
Inventory the educational, technical, and professional background of
your team. ·
Write a Personal Profile (would be nice but is voluntary). |
17.Oct.2003 |
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3 |
Communicate
with your team members to identify pre-project tasks and preliminary project
team roles and responsibilities. |
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# |
Deliverables
M3 |
Deadline |
Status |
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4 |
Write
an abbreviated, 1-2 page "how-to" manual in
English for the "IT Forum"
collaborative groupware internet software. |
17.Oct.2003 |
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Week
One: Setting up the Project |
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# |
Deliverables
- MoreCar and M3 |
Deadline |
Status |
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5 |
Become
familiar with the "IT Forum" collaborative
groupware internet software. |
24.Oct.2003 |
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6 |
Exchange
the information developed in the pre-project phase. |
24.Oct.2003 |
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7 |
Exchange
information on the specific business processes and necessary technologies and
data formats to be supported |
24.Oct.2003 |
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8 |
Start
to negotiate a Letter of Understanding for the project. |
24.Oct.2003 |
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9 |
Survey 1 due - Project Team
Profile Survey Survey 1 will be made
available on 24.Oct.2003. |
24.Oct.2003 |
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Week
Two: Letter of Understanding |
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# |
Deliverables
MoreCar and M3 |
Deadline |
Status |
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10 |
Agree
on a Letter of Understanding for the project. |
31.Oct.2003 |
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11 |
Start
the details of the inter-company business processes. |
31.Oct.2003 |
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12 |
Survey 2 due – Letter of
Understanding Survey Survey 2 will be made
available on 31.Oct.2003. |
31.Oct.2003 |
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Week
Three: Business Layer |
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# |
Deliverables
MoreCar and M3 |
Deadline |
Status |
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13 |
Agree
on the details of the inter-company business processes. |
07.Nov.2003 |
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14 |
Develop
the details for the data to be exchanged. |
07.Nov.2003 |
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15 |
Start
initial concept for a technical exchange platform |
07.Nov.2003 |
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16 |
Survey 3 due – Business Layer
Survey Survey 3 will be made
available on 07.Nov.2003. |
07.Nov.2003 |
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Week
Four: IT Layer |
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# |
Deliverables
MoreCar and M3 |
Deadline |
Status |
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17 |
Agree
on a concept for the data to be exchanged. |
14.Nov.2003 |
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18 |
Agree
on a concept for a technical exchange platform |
14.Nov.2003 |
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19 |
Start
Joint Final Project Report & Presentation |
14.Nov.2003 |
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20 |
Survey 4 due – Technical Layer
Survey Survey 4 will be made
available on 14.Nov.2003. |
14.Nov.2003 |
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Week
Five: Final Project Report |
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# |
Deliverables
MoreCar and M3 |
Deadline |
Status |
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21 |
Agree
on a Joint Final Project Report and Presentation |
21.Nov.2003 |
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22 |
Survey 5 due – Overall
Project Survey Survey 5 will be made
available on 21.Nov.2003. Final Project Report and
Survey Results |
21.Nov.2003 |
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Week
Six: Post Project Report |
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# |
Deliverables
MoreCar and M3 |
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23 |
Because the companies have to reduce costs, the project team has to be very effective in its collaboration efforts. The mode, depth, and frequency of the collaboration is the greatest challenge and risk of the project. To make it easy for the two teams, allowed and forbidden communication means are specified below. Always keep in mind that it is six hours later in the day in Germany than on the East Coast of the US.
Allowed:
o
Email.
o
IT Forum postings - http://www.it-forum.fhm.edu/
o
Internet chat, VoIP, or videoIP.
Forbidden:
o
Use of university phones.
o
Travel for personal meetings and workshops, e.g. in airport lounges or
anywhere else (Hawaii, Dominican Republic, Sri Lanka, etc.).
5. Conclusion
As your virtual CEOs, we want you to be successful. So, work hard, learn, have fun, and help raise the stock price of our companies (and incidentally help vest of our luxurious stock options and ensure our comfortable retirement!). Good Luck!
/s/ George
Kelley and Georg Peters