...period, Japanese companies developed the concept of lean production. Lean production was regarded as the third step in the historical progression, which took industry from the age of the craftsman through the methods of mass production and into an era that combined the best of both (The Economist 2009). Lean production was designed to combine the flexibility and quality of craftsmanship with the low costs of mass production. And due to its unique characteristics bringing an underdog company in its industry to the market leader, this idea of lean thinking has been adopted by many other industries. Today ‘lean’ may no longer be fashionable but its core principles (flow, value, pull, minimizing waste etc.) have become the paradigm for many manufacturing (and service) operations (Lewis 2000). In this essay, my main argument is that although success of lean production and its positive impacts on corporate competitiveness is undeniable, nevertheless, from the workers’ point of view, lean production has also increased the pressures of work and the degree of exploitation wherever it exists. In the first part of my essay I will present a brief history of lean production. This will be followed by the demonstration of main characteristics and the analysis of how lean production has impacted corporate competitiveness by utilizing Toyota as an example, which is the birthplace of lean production. Part three will spell out the limits of lean production as it dramatically increases the pressures...
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...Results of research: Literature Review Customer relationship management has become very popular now days due to increase in competition among all type of business. Customer relationship management always demands from the companies to create the values for the customers by delivering them the products and should expect the profitable returns in exchange. Customer relationship management is mainly focusing on how the business can retain its existing customers in this competitive environment. Customer relationship management means that managing and fulfilling the expectations of the customers via delivering them best product and services than its competitors in that industry. Effective CRM brings profits in the company and helps in improvements of overall financial position of the business via continuous profits. Any organization of the world can easily manage the customer relationship management by delivering their customers the business products at the low prices with the best possible quality than its competitors can deliver. The organizations customer relationship management can be measured that how much company has brand loyal customers and is it retaining its customers or not. Customer relationship management always demands from the companies to create the values for the customers by delivering them the products and should expect the profitable returns in exchange. Customer relationship management is mainly focusing on how the business can retain its existing customers...
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...Identification and Improvement Plan will begin with a summary of the Toyota Motor Corporation and core commitment to safety, quality and volume. It will also refer to the case study review titled “Toyota: The Accelerator Crisis (2010), by Greto, Schotter, and Teagarden for a synopsis of the accelerator and automobile recall crisis that affected the company’s reputation, image and near financial collapse. It also identifies two distinct process areas have been targeted for improvement, Toyota’s HR management systems and TPS/Lean Production System which need to be integrated. Furthermore, this plan will further discuss areas of development, positive impact and benefits to the company— and demonstrate how if a process change does occur how it will negatively impact this particular industry/ areas for improvement or innovation and then discussing the specific opportunities including impact and benefits. Introduction Toyota Summary: According to Greto, (2010), in 1933, Toyota Motor Corporation was originally founded as a division of Toyoda Automatic Loom Works; which was dedicated to the production of vehicles under the guidance of Kiichiro Toyoda. The company’s first automobiles were the A1 passenger cars and the G1 in 1935. By the year 1937, it was established as an independent business that focused specifically on the production of trucks for the Imperial Japanese Army during World War II. After the war, the company recommenced the production of passenger cars. (Greto, M., Schotter...
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...are called as distributors. * Retailers- Retailers purchase goods from the wholesalers in large quantities and then sell the smaller quantities to the customers. They can purchase goods directly from the manufacturer. * Raw material/Component suppliers- They supply the primary components or raw materials that are used by the manufacturers for production process. The transformation process converts these into the finished products which are finally delivered to the end customers. It’s not necessary that all these stages have to be present in a supply chain system. There are firms like Dell that do not have a distributor, wholesaler or a retailer in their supply chain. Some Industries where SCM plays an important role: * Automobile industry * Mining industry * Retail industry Executive Summary In...
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... Chery Automobile Company Chery Automobile Co. Ltd. (奇瑞汽车股份有限公司) is one of the most important of Chinese automobile manufacturers. Though it remains owned by the local government of Wuhu, and is by no means the very largest of China’s car companies, Chery has been able to compete effectively in a very crowded domestic market and has established a significant position in international markets. This is rather remarkable for a firm founded in 1997 in a very poor province not known for economic innovation. Historical Development By Western standards, Chery is an unusual firm. It is the result of the hybrid nature of many Chinese businesses, combining government ownership and effective and competitive management. Quite simply, Chery exists because of the entrepreneurial efforts of government officials – known as the “Eight Guardians” - in a relatively small Chinese city looking to expand the economic base of their area and spurred on by the dramatic economic growth happening all around them. By the mid-1990s economic reform had led to fifteen years of rapid growth concentrated along the eastern coat of China. A second stage of growth extending these opportunities across the entire nation began in 1993. The Wuhu government, with support from the Anhui provincial government, was in the best position to define a new economic direction for the area and establish firms able to operate in the new market economy. The municipal officials purchased an automobile engine assembly...
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...Individual Written Case Study Report in Strategic Management IHS-3-422 London South Bank University 17/12/2003 Table of Contents List of Figures................................................................................. i Introduction ................................................................................... 1 1. The changing world automobile industry .............................. 1 2. Reasons for mergers and acquisitions .................................. 3 2.1. 2.2. Daimler-Benzs’ motives..................................................................... 3 Chryslers’ motives ............................................................................. 5 3. The Post-Merger Integration Structure................................... 7 3.1. 3.2. 3.3. Preparations for the merger .............................................................. 7 Integration Structure of DaimlerChrysler......................................... 7 Expected Synergies ........................................................................... 8 4. Cultural Issues ......................................................................... 9 4.1. 4.2. 4.3. Daimler-Benz’s Culture...................................................................... 9 Chrysler’s Culture ............................................................................ 10 Key Integration Problems and Post-Merger Business Culture .... 11 5. Used Management Approaches to solve the problems ...... 13 Recommendations...
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... Promotional and Advertising Strategies Abstract The automotive industry is a multi-billion industry. The dawn of the twentieth century witnessed the beginning of the automobile industry.entrpernuers in the United States and Europe made the first prototypes of vehicles by the end of the nineteenth century. Since then entrepreneurial activities has been booming in the industry that has been motivated by competition among car manufacturers. Competition in the automotive industry inspired the introduction of innovative promotional strategies, marketing strategies, pricing and consumer-oriented promotional strategies. This paper researches on the automotive industry, taking note of leading companies in their respective product category, their marketing strategy, consumer-oriented promotional strategies, their pricing and the leading companies within the product group. This paper also recommends ways in which companies I the automotive industry could use marketing information to gain competitive advantage and to differentiate itself in the marketplace. Effective advertising strategies for automotive companies will also be mentioned. Introduction Automotive industry started in the 1890’s as a result of the domestic market and the introduction of mass production in the automotive industry that rapidly revolutionized the industry into the largest in the world (McAlinden, Sean & Bernard 2005). The industry began in the United States but was quickly overtaken by Japan that emerged...
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...FINAL REPORT SUPPLY CHAIN MANAGEMENT IN AUTOMOTIVE INDUSRTY MARCH 13, 2015 TABLE OF CONTENTS INTRODUCTION 2 OVERVIEW OF SUPPLY CHAIN STRATEGY: 3 FORD: LOGISTICS AND SUPPLY CHAIN STRATEGY 3 About the company 3 Features of Ford system of manufacturing 4 Supply chain Design 4 Push Pull Strategy 5 Best practices 6 TOYOTA: LOGISTICS AND SUPPLY CHAIN STRATEGY 6 About the Company 6 Supply chain design 7 Key features of Toyota business model 7 Drivers of supply chain 8 Parts Ordering 9 Parts and Supplier Master 9 Forecasting 9 Toyota distribution model 10 Best practices 10 COMPARISON 10 ISSUES 11 RECOMMENDATIONS 12 REFRENCES 13 INTRODUCTION The Indian automotive industry, comprising vehicle and component manufacturers, has grown steadily since the economic liberalization of the early 1990’s. The arrival of major global auto companies has galvanised the domestic sector into adopting Supply Chain best practices. The changing business conditions of the 21st century has led to companies facing issues ranging from globalisation, economic uncertainty to new technologies and increasing consumer demands. In the automobile industry, as manufacturers design and build vehicles globally, their supply chains become increasingly complex with challenges that often stand in the way of profitability and higher shareholder value such as long order-to-delivery lead times, unreliable production schedules, excess inventory...
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...advice and help which has always been source of inspiration for us. Above all, we owe everything to the Almighty and well-wishers for their valuable contribution and insights. However, we have taken utmost care in preparing this project report, mistakes would have crept though. (12010121196) Ms. N AMULYA REDDY (12010121213) Ms. NIKITA SINGHANIA (12010121276) Mr. REUBEN JOSEPH (12010121032) Mr. AMIT KUMAR JENA (12010121057) Ms. ARPITA DEB (12010121316) Ms. SAYONEE DATTA 1 Topic. Case Summary Q1: Toyota's revolutionary lean production Q2: Compare and contrast the arm's length relationships Q3: Development of Toyota's revolutionary "lean production system" Q4: Toyota enter into the NUMMI Q5: Toyota's subsequent expansion Q6: Role of national culture in shaping Toyota's lean production system Q7: Toyota is becoming more of a global corporation Page No. 03 05 07 08 09 10 12 13 2 SUMMARY Background Toyota is a multinational automobile manufacturing corporation headquartered in Japan. The company was founded by Kiichiro Toyoda in 1937 as a spin-off from...
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...Operation Management Assignment Declaration of Plagiarism Table of contents:||||| 1.0| Introduction||||| 2.0| Operations Management||||| 3.0| Toyota Production System (TPS c ) |||| | 4.0| Just in Time Inventory Management||||| 5.0| Lean Manufacturing||||| 6.0| Supply Chain Management||||| 7.0| Conclusion||||| References||||| 1.0 Introduction The success of Toyota Motor Company is due to the unique reduction systems that focus on continuous improvement and just in time management. Toyota has created a decentralised structure that encourages employee participation and team working. Toyota incorporated concepts just as supply chain management and inventory management to create high quality automobiles and gain a competitive edge in the highly competitive global automobile market. Toyota’s success and its lean manufacturing philosophy have been widely studied. The Toyota manufacturing system is centred on achieving a high level of productivity. The company has a unique approach to problem solving and it continuously trains its employees. The Toyota Production Systems is based on the lean manufacturing philosophy that seeks to minimize wastages and centres on cost reduction. The Toyota manufacturing philosophy emphasises on quality management through a process of continuous improvement. This report looks at how Toyota created its manufacturing system and the role of operation management techniques...
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...A STUDY ON SUPPLY CHAIN MANAGEMENT IN AUTOMOBILE INDUSTRY DR. Anu Maheshwari DR. Sanjay Shankar Mishra Guest Lecturer, Prof. & Hod of Commerce Dept. Govt. T.R.S.College, Rewa (MP) Govt. T.R.S.College, Rewa (MP) The changing business conditions of the 21st century has led to companies facing issues ranging from globalization, economic uncertainty to new technologies and increasing consumer demands. In the automobile industry, as manufacturers design and build vehicles globally, their supply chains become increasingly complex with challenges that often stand in the way of profitability and higher shareholder value such as long order-to-delivery lead times, unreliable production schedules, excess inventory across the supply chain, lengthy demand planning cycles and lack of visibility of suppliers. The effect of the global economic meltdown increased the pressure on automotive executives to make right decisions about their supply chain for better performance. In a highly challenging and competitive environment such as today, where supply chain is a popular tool for improving the organizational competitiveness. OVERVIEW OF SUPPLY CHAIN MANAGEMENT IN AUTO-INDUSTRY [pic] The Auto Ancillary Industry can be Further Divided into Six Main Segments: ❖ Engine Parts - Engine assembly, fall into 3 broad categories: core engine parts; fuel delivery system; and others. ❖ Electrical Parts - The main products in this category include starter motors, generators...
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..." Benefits of Implementing Lean Methodologies: • Reduces process lead time to better service customers • Greatly improves throughput and asset utilization • Opens capacity for future growth opportunities • Reduces work-in-process inventory • Reduces set-up times • Avoids unnecessary equipment expense • Increases the number of inventory turns per year • Improves cash flow • Impacts your bottom line The Machine That Changed the World is a book based on the Massachusetts Institute of Technology's $5 million, five-year study on the future of the automobile, written by James P. Womack,Daniel T. Jones (scientist), and Daniel Roos. When The Machine That Changed the World was first published in 1990, Toyota was half the size of General Motors. Today Toyota is passing GM as the world's largest auto maker and is the most consistently successful global enterprise of the past fifty years. This management classic was the first book to reveal Toyota's lean production system that is the basis for its enduring success. Now reissued with a new Foreword and Afterword, Machine contrasts two fundamentally different business systems -- lean versus mass, two very different ways of thinking about how humans work together to create value. Based on the largest and most thorough study ever undertaken of any industry -- MIT's five-year, fourteen-country International Motor Vehicle Program -- this book describes the entire managerial system of lean production. Nearly twenty...
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...Global Automobile Industry: Changing with Times By Chithra Gopal R.S., M.Sc (Agri) Executive Summary From a humble origin as a ‘horseless carriage’ manufacturing industry dating back to 1890s, the global automobile industry of 2006 has come a long way emerging as market leader in manufacturing activity, providing employment to one in seven people, either directly or indirectly. Hailed as the ‘industry of industries’ by the Management Specialist, Peter Drucker, the automobile industry (US) set standards in manufacturing activity by contributing mass production techniques during early 1910s. The Japanese soon followed by offering lean production techniques in the 1970s. Riding high on economical revival in many developing countries in Asia and Europe, the industry’s global output touched 64.6 million vehicles in 2005. But with a downward slide in market share, the Big Three was fast losing their dominant position to Toyota, Honda, and Nissan, thereby setting the ground for the emergence of New Six. Meanwhile UK, served as the single largest customer for European auto-makers. Japanese players were the leaders in the light vehicle market and hybrid market. China and India attracted the attention of global auto-makers, vying for setting up a cost-effective export base for meeting the demand from Asian markets. Despite government controls, Chinese market boasted of sales of more than 2.7 million commercial vehicles in 2004. With reports of highest growth in mobility in the world at...
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...General Motors Student Name Wilmington University Case 3.4 Survival of GM Study of Case 3.4 Financial Survival of General Motors General Motors (GM) is struggling strategically with its meager financial position in the automobile industry. Alternatives solutions to address the financial trepidation include restructuring, reducing debt, and the most favorable alternative, focusing on products to satisfy customers. By using strategic management to implement better products at GM, the company can rein, once again, as a top competitor in the highly competitive automobile industry. Primary Issue 2 The primary issue is whether GM is capability of increasing its value to be financially solvent in the automobile industry. Langlois and Goldstein (2012) reflect on an announcement by auditors from Deloitte & Touche, “that GM's recurring losses from operations, stockholders' deficit and inability to generate sufficient cash flow to meet its obligations and sustain its operations raise substantial doubt about its ability to continue” (para. 7). If GM does not address its financial position it may cease to exist in the automobile industry. Analysis of GM Including Financials Despite changing times, for more than 70 years, GM was the leader of the automobile industry. Columnist Costantini (2012) depicts GM as follows. The world’s largest car maker from 1931 to 2008, when it was surpassed by Toyota. By the time it lost that distinction, such figures were the least of its worries —...
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...Lean is the concept which starts from removing waste [1]. Lean Production is the practice of mass production in which work is completed in minimum time, in a smaller space, with very few workers, with less equipment, and yet achieves highest level of quality in final product [2]. Since the evolution of Toyota Production System in 1950s [2], the lean movement has been widely accepted in automobile industry. However, acceptance of lean technology in the process industries (steel sector) have been much slower [3]-[4]. For removing the obstacles like resource complexity, the idea of the point of discretization for the process industry has been explained by Abdulmalek et al. (2006). This notion is based on the fact that in production flow route...
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