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Surviving Supply Chain Integration: Strategies for Small Manufacturers
APPENDIXES
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Surviving Supply Chain Integration: Strategies for Small Manufacturers
This page in the original is blank.
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Surviving Supply Chain Integration: Strategies for Small Manufacturers
APPENDIX A
Survey: Characteristics of Small Manufacturers
Appendix A contains a copy of the survey the committee sent to small and medium-sized manufacturing enterprises and a summary of the results.
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Surviving Supply Chain Integration: Strategies for Small Manufacturers
NATIONAL RESEARCH COUNCIL
COMMISSION ON ENGINEERING AND TECHNICAL SYSTEMS
BOARD ON MANUFACTURING AND ENGINEERING DESIGN
Office Location:
Harris Building, Room 262 2001 Wisconsin Avenue, N.W. Phone: (202) 334-3129 FAX: (202) 334-3718 rrusnak@nas.edu
Mailing Address:
2101 Constitution Avenue, NW Washington, DC 20418
June 16, 1998
Dear Survey Participant:
On behalf of the National Research Council, I want to thank you for your participation. The objective of this survey is to determine what you think is important to satisfy your customers and to be a supplier for companies using modern supply chain management methods. This information will be used in conjunction with inputs from large companies to determine the most important attributes of good suppliers. Based on this analysis, the strategies will be developed for helping you to obtain needed capabilities.
We are not asking for your identity in the survey so you can be assured that your input is anonymous. In addition, we will only be using compiled data in our analysis, so individual results will not be revealed.
Inputs should be sent directly back to this office. Electronic response is strongly preferred (RRusnak@NAS.edu).
Again I want to thank you for your contribution. We anticipate that the ultimate results of this study will be used to assist you in becoming a first rate supplier and expanding your business.
Sincerely,
Robert M. Rusnak
Study Director
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Surviving Supply Chain Integration: Strategies for Small Manufacturers
SURVEY
FACTORS FOR SUCCESS IN SUPPLY CHAINS
NATIONAL RESEARCH COUNCIL
Characteristics of Respondent
Industry
________ ________ (SIC)
Sales
________
No. of employees
Primary product(s)
________
________
Build-to-print or other
________
% of sales from top three customers
________
________
________
List the SIC codes of top three customers
________
________
Questions:
1. What percentage of your business transactions with your customer is done electronically?
2. To what extent do your top three customers share their future product and technology plans with you?
Insert number to reflect level:
1
2
3
4
5
never
always
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Surviving Supply Chain Integration: Strategies for Small Manufacturers
Customer 1 ____
Customer 2 ____
Customer 3 ____
3. Do you have the following capabilities?
(Now)
(Near Future)
SPC
________
________
CAD
________
________
CAM
________
________
MRP
________
________
ISO/QS
________
________
HAZMAT
________
________
4. How would you characterize your relationship with your top three customers?
Insert number to reflect level:
Insert number to reflect level:
1
2
3
4
5
adversarial
full partner
Customer 1 ____
Customer 2 ____
Customer 3 ____
5. What critical factors or new capabilities would improve your success as a supplier?
Insert number to reflect level:
1
2
3
4
5
not important
very important
Payment terms ____
Customer recognition program ____
Sharing of cost data ____
Sharing of objective performance data ____
Early involvement in customer product development ____
Production forecast ____
Financing ____
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Surviving Supply Chain Integration: Strategies for Small Manufacturers
Others
_________________
_________________
_________________
_________________
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Surviving Supply Chain Integration: Strategies for Small Manufacturers
SURVEY RESULTS
There were 99 completed questionnaires, one of which was from a very small enterprise whose owners and employees only participate in the company on a part-time basis. The data from this company was not included in the database. Hence, the total sample size is 98.
TABLE A-1 General Characteristics
Question
Number of Responses
Mean
Median
Standard Deviation
Annual sales ($ million)
82
34.9
7.7
111.3
Number of employees
95
226.7
75.0
514.8
Sales to top three customers as a percentage of total sales
86
42.4
34.3
25.8
Percentage of transactions with customers performed electronically
96
11.4
2.0
17.4
Extent to which customers share product and technology plans (1 [low] to 5 [high])
97
2.8
3.0
1.1
TABLE A-2 Capabilities of SMEs
Capability
Number of Respondents
Percentage with Capability Now
Percentage Planning to Develop Capability
Total (Percent)
SPC
98
55
12
67
CAD
98
74
1
75
CAM
98
47
11
58
MRP
98
43
16
59
ISO/QS
98
41
35
76
HAZMAT
98
48
7
55
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Surviving Supply Chain Integration: Strategies for Small Manufacturers
TABLE A-3 Relations with Top Three Customers
Number of Responses
Mean
Median
Standard Deviation
98
3.7
3.7
0.6
Scale: 1= adversarial; 5 = full partner
TABLE A-4 Factors That Would Improve Probability of Supplier Success
Factors
Number of Responses
Mean
Median
Standard Deviation
Improved payment terms
96
2.8
3.0
1.3
Better customer recognition programs
94
2.6
3.0
1.1
More extensive sharing of cost data
96
2.4
2.0
1.2
More extensive sharing of performance data
95
3.5
4.0
1.2
Earlier involvement in product development
95
4.1
5.0
1.1
More extensive sharing of production forecasts
94
3.8
4.0
1.2
Better financing
93
2.4
2.0
1.3
Scale: 1 = not important; 5 = important
TABLE A-5 General Characteristics of Subsamples
Question (averages)
Large SMEs
Small SMEs
Dispersed Customer Base
Concentrated Customer Base
Number of respondents
41
41
43
43
Annual sales (millions of dollars)
65.4
3.5
47.5
14.5
Number of employees
390.5
40.7
300.1
121.5
Sales from top three customers as a percentage of total sales
34.8
42.3
19.5
65.6
Percentage of transactions with customers performed electronically
10.9
13.2
7.5
15.4
Extent to which customers share product and technology plans (1 [no] to 5 [yes])
3.1
2.4
2.8
2.7
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Surviving Supply Chain Integration: Strategies for Small Manufacturers
TABLE A-6 Capabilities of Large and Small SMEs
Percentage with Capability Now
Percentage Planning to Develop Capability
Capability
Large SMEs
Small SMEs
Large SMEs
Small SMEs
Number in sample
41
41
41
41
66
44
10
12
SPC
88
59
0
0
CAD
56
37
10
7
CAM
59
22
15
17
MRP
54
22
27
44
ISO/QS
59
39
7
5
HAZMAT
TABLE A-7 Capabilities of SMEs with Dispersed and Concentrated Customer Bases
Percentage with Capability Now
Percentage Planning to Develop Capability
Capability
Dispersed Customer Base
Concentrated Customer Base
Dispersed Customer Base
Concentrated Customer Base
Number in sample
43
43
43
43
SPC
44
63
14
9
CAD
72
70
0
2
CAM
49
47
12
7
MRP
42
47
19
14
ISO/QS
35
44
49
21
HAZMAT
47
49
5
9
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Surviving Supply Chain Integration: Strategies for Small Manufacturers
TABLE A-8 Success Factors in Subsamples
Average importance of factors (based on scale of 1 to 5)
Large SMEs
Small SMEs
Dispersed Customer Base
Concentrated Customer Base
Number of respondents
41
41
43
43
Average relationship with top three customers
3.7
3.7
3.6
3.7
Payment terms
2.5
2.9
2.4
3.0
Customer recognition programs
2.4
2.6
2.5
2.5
Sharing of cost data
2.4
2.3
2.2
2.6
Sharing of performance data
3.4
3.3
3.3
3.3
Early involvement in product development
4.0
3.9
4.0
4.0
Sharing of production forecast
3.9
3.5
3.4
3.9
Financing
2.0
2.4
2.2
2.4
Representative terms from entire chapter:
cost data