Navistar Case Study

1833 Words Nov 4th, 2015 8 Pages
Executive Summary
Navistar was a worldwide leader in the manufacturing medium and heavy trucks for 17 consecutive years in the North American market. Navistar’s premium conventional trucks were produced at the Chatham assembly plant, which had almost 14 years experience in producing Navistar’s premium line since 1983. Navistar had forecasted increased industry demand for heavy and medium trucks in 1998. Especially, the Chatham assembly plant’s customers had strict requirements to the truck’s quality and delivery date. As the assembly supervisor in Chatham, Andy Ramsz encountered the interior trim quality and delivery problem for the truck. Andy had begun to gather data on the interior trim supply problem and he got the crucial reasons
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Environment and Root Cause Analysis Navistar considered quality and on-time delivery as a priority that came before costs; therefore, top management as well as initiatives to improve processes and on-time delivery supported various improvement initiatives to quality programs. Andy is an assembly supervisor but had very broad job responsibilities. Andy’s time was taken up in areas such as supplier quality evaluations, internal process documentation, process improvement, and much more. His focus was very widespread and his day was drawn away from scheduled and unscheduled meetings; this position required long hours and weekend work. In addition to the quality issues, truck interior trim shortages was another challenge, which resulted in reordering of trim parts leading to additional material handling, and post-assembly installation. These delayed parts required overtime that increased cost and delayed delivery of the finished truck of the customer. Issues came from both Navistar and their supplier Trimco. Navistar had design changes such as different sizes, repositioning of mechanisms and other various designer and material changes; however, these changes to the truck interiors were not communicated to Trimco before production runs were completed. As a result, parts were shipped with different specifications than those needed for proper fit during assembly. Due to the lack of coordination and communication,

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