Subject : Supply Chain Improvement helps to improve

Manufacturing Cost Performance

BACKGROUNDCompany Background• Company history and growth up

Change Economic Environment causes Increasing Production Cost Problem. Therefore, company needs to solve the problem by finding out solutions such as:-

• Efficient control of the flow of production.• Improve the production cost.• Most of the toys manufacturers located in China – lot of

labor supply, low wages ..etc.• Create a seamless logistics supply chain management.

RESEARCH PROBLEM

• Safety issues – recall occurred recently, it will increase the production cost;

• Increase in costing – land cost, high crude oil high production cost & transportation cost.

• Long production time - increases the transportation cost, labor cost (overtime payment), & etc…

RESEARCH OBJECTIVE

• To maintain JIT (just in time) inventory to satisfy customer’s requirements in a “Reasonable / Limited Costing”.

• Apply the Supply Chain Management in order to find effective strategies to improve supply chain network performance to reduce the transportation cost as well as production cost.

• Highlighting the potential strategies for cost reduction.