Internal supply chain performance evaluation in make-to-order manufacturing environment

Abstract

Complete supply chain is a necessity for a product to reach it customers, and the more efficient the supply chain is and the less disruptions it has, the better the customer satisfaction, productivity, and business success are. Supply chain disruptions accumulate, so when something unexpected happens, for example, in the external supply chain, regular disruptions in internal supply chain only make the situation worse. It is challenging or almost impossible to prepare for disruptions caused by unexpected issues, but the development of company’s own internal activities is not impossible and does not always require major measures, as this study will show. The study examines the internal supply chain performance in MTO product at case factory. The aim of the study is to describe the internal supply chain and its timing by using qualitative and quantitative research methods, to find areas for development in the operations and the flow in between them in order to achieve better internal supply chain performance and meet customer promises. Quantitative method was used to measure possible cause-and-effect relationships of the timing of internal operations and the low production punctuality. The study found that the delayed timing of production has a negative effect on the punctuality of production. Qualitative methods were used to find out the level of communication and transparency between operations which are found to be low, claimed to be influenced by management, and has effect on internal supply chain performance. Value stream maps were used to describe the process in order to describe the value and waste creating activities, and areas for development. This study has limitations, such as purchasing, sales, external supply chain and risk management, nor can research results be generalized without careful consideration of all the factors.