Research On On-time Delivery Rate Improvement Of Automotive Products For SK Company

With the aggravation of market competition and the increasing of labor cost and material cost,companies are facing more and more challenges,most of companies gain more profits by increasing sales,reducing production costs and operating costs,On-time delivery is one effective way to increase sales,timely delivery can ensure stable capital income and it helps to increase sales as well.Except for price,quality and service,on-time delivery is also an important indicator to measure the performance of company operation,on-time delivery is conducive to establishing a good customer relationship,so as to enhance the market share of the enterprise.In the supply chain of automotive industry,customers usually evaluate the supplier performance,and the supplier performance will impact the future sales,On-time delivery is one important part of supplier performance evaluation.Based on the requirements of customers and the performance data of On-time delivery rate of automotive products of SK company in 2018,this paper analyzes the On-time delivery rate:First of all,this paper introduces SK company's basic information,product overview and operation status,this paper analyzes the problem of On-time delivery rate of automotive products in SK company based on the requirement of On-time delivery rate in customer agreement,SK company's order fulfillment process includes order review,raw material purchasing,production management and transportation delivery,the average on-time delivery rate of automotive products was 80.1% in 2018,and the on-time delivery rate should be no less than 98% according to signed customer agreement,this paper puts forward the problem of low On-time delivery rate of automotive products in SK company.Then,organize all departments of the company to analyze the problem of low rate of On-time delivery by using Fish bone diagram,and identify three main factors affecting the rate of On-time delivery: order review accuracy,raw material shortage and abnormal production.Next,the management theory is used to optimize the problems,and the countermeasures to improve the On-time delivery rate of SK company's automotive products are put forward.The accuracy of order review is improved by optimizing the changeover process and cycle time measurement,the shortage rate of raw materials is reduced by improving the purchase process and raw material inventory management,and the abnormalities in the production are reduced by optimizing the equipment failure management and Andon method.Finally,the paper defines the implementation steps of the countermeasure plan: establish project team,define improvement objectives and activities,establish performance evaluation method as well.After the implementation of the countermeasures,this paper evaluates the implementation effect of the countermeasures based on the improved data,it includes the optimization effect of order review management,raw material purchase management and production management,the factors were improved significantly and the improved On-time delivery rate can reach the customer requirement.On-time delivery rate is one of the key operation indicators,the countermeasures in this paper effectively improve the factors that affect the On-time delivery rate of SK company's automotive products,but still need to be further tracked and optimized,hoping that this paper can provide a reference for the small and medium-sized enterprises that "make to the order".