Industrie Pininfarina

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INDUSTRIE PININFARINA: THE NEW CUSTOMER DECISION Question 1: Should Bertrandi accept the order from Mitsubishi? What are the challenges involved?
Studying from the foresighted point of view, Bertrandi should accept the prestigious contract from Mitsubishi of producing Pajero.
This would not only provide opportunities to Pininfarina (a niche manufacturer) for further modernizing the production facilities but will also provide learning in productivity improvement, increased quality, better inventory control and space utilization, reduce waste – and all in Japanese way (considered to be the best and meticulous in automobile industry).
Heavy revenues for Pininfarina were estimated to be around 900 billion/year over the life of the
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* Equipment/Tooling changes – Use of Japanese design and production tools - refined jigs & fixtures, tools, work methods would be in place prior to commencement of production.

* Mitsubishi Pajero will be painted in the paint shop located at main production facility (Grugliasco). Many changes and new systems will have to be made as following:

a) Since BIW will be transported from Pajero production facility to paint shop in main production facility (at Grugliasco) and back, additional logistics would have to be organized.

b) Paint shop would have to run for additional shift to cater to the demand. Presently, it is running at full capacity.

c) Due to frequent changing of paint color, cleaning of painting system will have to be changed from solvent based to water based as there are restrictions from Italian pollution control regulations.

d) Two-tone painted model of Pajero will require additional space to dry and store vehicles during interval between two stages.

* More human resources will be required to meet the demands of new contract.

a) About 150 suppliers will be added to Pininfarina’s list. More staff will be required to control new suppliers.

b) Even more staff will be required to handle complex outgoing logistics.

c) Estimated 600 additional direct workers and 200-240 additional indirect workers would be required for factory production.

d) Moreover, to recruit these
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