Problem 1. Transportation
The place of production is too far away and the transportation is not convenient in those areas. This leads to the cost of transportation will increase and the risk of the process of transportation will also higher than ever.
(数据图)
2. Quality Control
There are three issues that Michelin has to improve in the process of quality control.
First of all, the level of quality sometimes cannot meet the demand of market in some areas. The production of products is based on certain criteria to decide which leads to some products’ quality meets business requirements, but didn’t meet the demand of market due to other specifically reasons such as geographic, culture or religion.
For instance, the general type of Michelin didn’t have drawbacks in most countries. But in tropical areas, high temperature and extremely hot weather may make such a tyre easily soften while types is also not so anti-skidding in Russia because of the roads of Russia always freezes in winter.
Secondly, modern industrial products are mostly made up of thousands of parts and components, its production is based on the conduct of extensive cooperation. The outsourcing parts of products will have a significant impact on product quality and economic efficiency. But Michelin didn’t pay attention to it and only use conscious production guidance supply outsourcing of parts, or with a high quality level requirements and spare parts.
These two ways optional external cooperation will seriously affect economic efficiency of Michelin. If the selection of high-quality self-made parts than outsourcing parts, although the products will bring a high level of quality, but its high cost will affect the market competitiveness of products. If the optional lower quality than the self-made parts and spare parts, will reduce the quality of the machine, to bring harm to business reputation for quality, it will also affect the amount of market share. These two approaches, not impose economic benefits.
Last but not least, the unstable levels of quality also hamper the quality control. In Michelin, due to its performance and appraisal system, lots of employees just concentrate on the quantity and finish the job. They didn’t realize the quality is more important than the quantity. This phenomena will result in the unstable situation of quality.
3. Warehousing
Firstly, the structure of warehousing is not clearly in Michelin. It leads to the division of labor is not clear and the control of warehousing will be difficult.
Secondly, the plan of purchasing is not reasonable and the forecast in anticipation is not precise. Such as the IPD purchased some useless components or over-purchasing that result in the accumulation of material. And those materials will take up space and increase the cost of warehousing control.
Thirdly,
The place of production is too far away and the transportation is not convenient in those areas. This leads to the cost of transportation will increase and the risk of the process of transportation will also higher than ever.
(数据图)
2. Quality Control
There are three issues that Michelin has to improve in the process of quality control.
First of all, the level of quality sometimes cannot meet the demand of market in some areas. The production of products is based on certain criteria to decide which leads to some products’ quality meets business requirements, but didn’t meet the demand of market due to other specifically reasons such as geographic, culture or religion.
For instance, the general type of Michelin didn’t have drawbacks in most countries. But in tropical areas, high temperature and extremely hot weather may make such a tyre easily soften while types is also not so anti-skidding in Russia because of the roads of Russia always freezes in winter.
Secondly, modern industrial products are mostly made up of thousands of parts and components, its production is based on the conduct of extensive cooperation. The outsourcing parts of products will have a significant impact on product quality and economic efficiency. But Michelin didn’t pay attention to it and only use conscious production guidance supply outsourcing of parts, or with a high quality level requirements and spare parts.
These two ways optional external cooperation will seriously affect economic efficiency of Michelin. If the selection of high-quality self-made parts than outsourcing parts, although the products will bring a high level of quality, but its high cost will affect the market competitiveness of products. If the optional lower quality than the self-made parts and spare parts, will reduce the quality of the machine, to bring harm to business reputation for quality, it will also affect the amount of market share. These two approaches, not impose economic benefits.
Last but not least, the unstable levels of quality also hamper the quality control. In Michelin, due to its performance and appraisal system, lots of employees just concentrate on the quantity and finish the job. They didn’t realize the quality is more important than the quantity. This phenomena will result in the unstable situation of quality.
3. Warehousing
Firstly, the structure of warehousing is not clearly in Michelin. It leads to the division of labor is not clear and the control of warehousing will be difficult.
Secondly, the plan of purchasing is not reasonable and the forecast in anticipation is not precise. Such as the IPD purchased some useless components or over-purchasing that result in the accumulation of material. And those materials will take up space and increase the cost of warehousing control.
Thirdly,
