Welcome to the second Case Assignment for this course. Please read the following article (along with the others in the required readings) and learn how Cessna went through a very substantial and well-documented quality initiative program to improve its logistics systems.
Morgan, J. P., (2002, June 6). Cessna aims to drive SCM to its very core. Purchasing, 131(10), 31-35. Retrieved on December 12, 2014, from ProQuest in the Trident Online Library.
When Michael R. Katzorke, vice president of supply management at Cessna Aircraft in Wichita, Kan., began working on the company’s supply chain management system in 1998, Cessna was still a traditional aerospace firm. It had a functional orientation, was vertically integrated, had traditional processes and practices, and there was no provision for Total Quality Management or Six Sigma. To bring about the more fundamental and permanent changes they were seeking, Katzorke and his Cessna colleagues—both at the executive level and in supply management—have developed and deployed no fewer than twenty-one practices and tools aimed at: 1. driving the best possible supply-base rationalization decisions, 2. accelerating the supply-base rationalization process, 3. improving suppliers’ performance, and 4. integrating key suppliers with Cessna’s critical business, manufacturing, and design processes. Brief discussions of each of these steps are presented.