There was a lot of material supply issue to run the line production at Peenya facility of Volvo
CE. After checking Supplier Delivery Precision we came to know that it was just 4.66% only for
January 2012. It was noticed that the problem was not only with the suppliers, it was also within
the company. The delay in supplies due to problems at suppliers’ end was around 42% while
the balance was due to Back Order Existence, Delay in Goods Receipt, Delivery Planned on
Holidays, Old Orders Existence in System, Missing Shipping Notification etc. Thus, the internal
issues were contributing 47% in delay of supplies. It was thus decided to take a call on this
issue and do a project to improve the Delivery Precision at Volvo CE.