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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