Information Technology in Automobile Industry

1858 Words Dec 18th, 2009 8 Pages
INTRODUCTION
In recent years, information technology and an increasingly transparent financial sector have become key driving forces in business -- operations, strategies, structures, ownership, and performance. These forces cut across many industries to force changes that, in turn, have had significant economic and social impacts in rural communities. Structurally, the emerging lithium-ion battery technology industry is uncharacteristic of typical agricultural processing. The lithium-ion battery technology industry grows out of its developmental stage into a more embedded role. The ability of traditional firms to achieve competitive advantage is predicated, in part, on their capacity to develop efficient, internalized information systems
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The concept originated in the 1950s as a means of achieving mass-production efficiencies with small production volumes. At that time Mitsubishi's annual production volume was only a few thousand vehicles. Today the company claims to be the world's fifth-largest automaker with global sales of 5.4 million units in 1999. The company has seven vehicle manufacturing facilities in five countries, Japan, Netherlands, Philippines, Thailand, United States, and around 20 plants co-owned in partnership with others. It also has three further engine and transmission manufacturing plants.
It is easy to miss the significance of the production system as Mitsubishi's standard fact sheets that simply say "the Mitsubishi Production System has become the basis for highly efficient 'lean' manufacturing in industries worldwide." While true, there is a corporate modesty in that statement that doesn't fully explain the company's competitive success. As one auto analyst puts it: "Mitsubishi's success is led by unusual quality delivered at very competitive prices -- sometimes despite the styling." Last year, J. D. Power and Associates announced the results of its initial Quality Survey. Mitsubishi was able to dominate the top three plant awards and capture the No. 1
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