Agile Electric-Quality Issues in a Global Supply Chain.Pdf

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S w W12056 AGILE ELECTRIC: QUALITY ISSUES IN A GLOBAL SUPPLY CHAIN Dhruv Dar, Sanjay Kumar and Vijay Aggarwal wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or transmission without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Richard Ivey School of…show more content…
Its plant was located in Chennai in the Southern part of India and supplied parts to both domestic and overseas automotive customers. The company had gradually expanded to have a number of divisions for making electrical, sheet metal and plastic parts. The plant was certified to QS 9000 standards, which were the global standards mandated by automotive OEMs for their tiered suppliers (see Exhibit 2). These standards were composed of International Organization for Standardization (ISO) 9000 standards plus automotive industry-specific requirements. Being certified as QS 9000 compliant implied that the company would have a certain minimum level of quality systems. Further, Agile had implemented a few of the best practices in manufacturing in its operations, such as workplace organization, dashboards and visual management, which were incorporated on the lines of Toyota Production Systems. Its sales turnover had reached US$56.2 million in 2007, and was expected to grow at five per cent annually for the next two years. DEVELOPMENT AT AGILE Development of Agile as a Supplier In 1998, after due diligence, Agile received an order from Automek for the supply of electric motors to its North American operations. As electric motors were a running product for Agile and it was supplying a number of automotive multinational corporations, it had no problems in supplying these products to Automek. In 2002, since Agile’s quality and delivery performance

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