Gm Gravatai Plant

735 Words Aug 14th, 2014 3 Pages
MAKE-TO-ORDER AUTOMOBILES AT GM’S GRAVATAI PLANT
Case Study Analysis

Executive Summary:

This case study emphasizes GM’s Gravatai plant and the Brazilian Auto Industry to sell cars that were made-to-order for customers and connect assembly line and the internet-based sales system. Its purpose is to help bring a revolution to the automotive industry and the establishment of a new production model.
The GMBG case study looks at the “Blue Macaw” Gravatai Plant in Brazil. This plant has revolutionized the auto industry in Brazil by becoming the first plant to sell cars directly from the customer. The plant uses an online ordering system to facilitate sales directly to consumers at a lower cost than before. The plant utilizes a make to
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The simplicity of the product is an important feature to meet this target. This was going to prove to be a daunting task, because the lead time in a traditional plan to deliver a customized car is about 5 to 6 weeks because GM cars are built to order in Brazil.

Efficiency of Production
 Three different logistics were used and
 Management helped ensure communication and quick solutions to problems

Changes in Distribution and Future Plans for GM’s Gravatai Plant
 Reducing inventories and reducing space taken up in dealerships.
 This created a higher efficient distribution of all make-to-order vehicles

Problems with Auto Purchasing
 Loss of buyers experience
 Product does not meet the expectation of customer
 Lack of guidance from sales representatives who are experts
 Huge expense on returns and
 Lack of personal customer service

Possible Dealership Reaction Dealers will consider this as a threat because:
 Losing control of commissions
 Less chance to connect with customers
 Less chance to track the customers’ consumption process.

Alternative Courses of Action/ Recommendation

Just-In-Time Facility
 Manufacturing only takes place on a made-to-order basis by the customer,
 Supplies are received only as they are needed and eventually will be used for the car being made and
 Low inventory cost

Advantages of Having Each Supplier on Site
 Supplier is an active partner
 Reduce cost
 Increase

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