Case authors: Marie koulif-Souviron, Alan Harrison and jaques Colin
Introduction:
This case is based on two US owned chemical corporations and both industry leader in their chosen activities with equal size. Also it is mentioned in case both have similar organizational cultures and goals. In 1991, results of their partnership they have established Two unit plants in UK. They comprise large wheatco plant with 700 employees and Small chemco plant with 70 employees.
Key Issues:
- Quality issues relating to additive A1
-Issues in information sharing in operational, tactical, strategic levels
-Communication in shop level
-high degree of interdependence
- Unreliability in upper stream and downstream of chemco
Indicative question
1. Map and (Using diagrams) describe the supply chain management process, indicating physical product flow within the companies.
Case study boundary
Physical Flow Information Flow
Fig1. Supply Chain Map (Physical flow, Information Flow within companies) - Marie koulif-Souviron
The supply chain relation involve in this case study are about a chemco facility and two wheatco units namely basic chemical SBU and Specialities SBU. The two units are belonging to two different strategic units. The chemco facilities dedicated to produce chemical additive called ‘A1’ which is used in production of rubbers. B150 is part of basic chemical unit of wheatco is for sole purpose of supplying Feedstock 1 , feed stock 2 and a gas ‘B2’ to which are raw material of chemical additive ‘A1’ to chemco . A1 manufacturing process produces a gas B3 as a by product. This is recycling to the Wheatco Basic. The one only customer of wheatco basics is chemco, while more than half of A1 produced in chemco are supplied to wheatco rubber B88 it is specialities SBU specialized in manufacturing rubbers. Rest of chemco customers are in Europe and USA.
The Chemco UK plant was built in