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 project.…show more content…
d) High lead time of 46 days for parts required Pininfarina to forecast sales in advance. e) Outgoing logistics would also be more complex than usual since Pininfarina would be shipping greater volumes to dealers in major European markets. * Heavy recruitment would be required for raising workforce over a period of time. 2. OPPORTUNITIES * Mitsubishi contract for Pajero production will present many learning opportunities to Pininfarina like - productivity improvement, lesser material handling, increased quality, better inventory control & logistics and space utilization, reduce/eliminate waste. * It was anticipated that work methods, jigs & fixtures, tools would be refined from Japan before beginning production. The same can be implemented by Pininfarina in production of other models also. * Prospect of being able to compare with world-class volume manufacturers since Japanese designs and production tools & processes will be used. * Exposure to many new quality suppliers for different parts which again can be used/developed by Pininfarina for other model manufacture. Since they are Mitsubishi approved vendors, they are expected to follow Japanese production methods and quality standards. Question 4: Comment on the fundamental & far-reaching changes adopted by Pininfarina to improve its manufacturing performance, when it faced a crisis in 1992. IMPROVEMENTS IN 1992 * Pininfarina conducted rigorous
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