4th International Quality Conference May 19th 2010 Center for Quality, Faculty of Mechanical Engineering, University of Kragujevac
World Class Manufacturing in Automotive Industry
Milan Djordjevic1) Milan Milovanovic1) Maja Djordjevic1) 1) Zastava automobili Kragujevac Abstract: Every major manufacturer today is evaluating its strategy as the industry faces challenges brought on by a financial meltdown. Models such as mass production, global manufacturing, very low cost, niche manufacturing, and lean production have all shown successes and weaknesses in the past. The competition to reduce manufacturing cost today has never been greater. Brought on principally by global competition, the requirements for manufacturing performance are
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Djordjevic, M. Milovanovic, M. Djordjevic
4. PILLARS
10 technical pillars are responsible for: 1. 2. 3. 4. 5. 6. Safety Cost deployment Focus improvement Autonomous activities (AM & WO) Professional maintenance Quality control
Logistics/customer services Early product/Equipment Management 9. People development 10. Environment. All pillars use methodology and standard tools so obtain major targets – Zero waste, Zero defects, Zero faults, Zero stocks (fig. 2).
7. 8.
Figure 2 – WCM targets
Figure 3 – The approach to problems: reactive, preventive, proactive The path towards excellence is characterized by an increasing level of complexity: experience is gradually accumulated and successful cases are implemented, more difficult problems are addressed and involvement of the plant is extended. Problems are addressed at three levels. First is reactive – Once the problem has emerged, corrective measures are adopted. Second is
The automotive component & Fabrication Plant, ACF, was the original plant site for Bridgeton Industries, a major supplier of components for the domestic automotive industry. All of the ACF’s production was sold to the Big-Three domestic automobile manufactures. Its main competitors were local suppliers and other Bridgeton plants. This company did very well but recently it became less effective when foreign competition and scarce, expensive gasoline caused domestic loss of market share. For boost its selling, it made four criteria, quality, customer service, technical capability, and competitive cost position to evaluate three classifications of products.
Toyota is one the most storied companies in the world today, an aspect that has led to it drawing the attention of researchers, journalists and executives who are seeking to benchmark its production system that is extremely famous across the world. This is influenced by the company’s ability to outperform its competitors in terms of cost reduction, reliability, quality and market capitalization. This was exhibited by the company’s ability to replace Daimler Chyrsler as the third largest car company in North America in 2005 in terms of both sales and production.
While car manufacturing is a global industry, automotive companies such as JLR operate in broader regions such as Europe and Asia. Three major trends were identified affecting car production in mature markets, the first was the fragmentation of mature markets, customers were demanding more choice, and this has made it difficult for manufacturers to obtain economies of scale, so cost had to be reduced and with the general
Continual improvements are essential for businesses to attain a competitive advantage in their industry and remain profitable. Riordan Manufacturing must apply Total Quality Management (TQM) to their organizational processes to eliminate waste, reduce costs, increase productivity, and focus on customer satisfaction. This paper identifies an improvement plan by outlining the steps of Riordan Manufacturing’s developed quality management process and required actions. The quality team defines variation in relationship to the selected process and explains how decreasing variation is integral to TQM. The team examines quality tools for identifying and monitoring process variability and
The makers of auto component are facing the problem of slowdown. Due to the less growth in passenger car segments and commercial vehicle, the supplies of the makers of the components fell as well. The fall is a combination of low local demand and the declining exports. Operational excellence, management of risk and planning of scenario are assured to become the key range for success. The components of auto industry, world-wide has faced economic restructuring. The deceleration of sales in many markets in the industry of auto component s was not a long-term challenge, but a considerable market share loss in increasing competition in the local
The automotive industry is characterised by high levels of uncertainty, creating difficulties for companies to follow prescriptive strategies. Many factors contribute to this unpredictability. Pertinently, the financial crisis created instability: between 2008-2009 the Western automobile market worth fell by $300billion. Damaging profitability and cash flows, creating excess supply. In 2007 worldwide production capacity of cars was over 70million although demand was less than 60million (De Moraes, 2016).
Thru manufacturing comes the quality control standards, quality control is “the degree of excellence and that level of quality creates its equal of reliability in the product” (Lifetime Reliability Solutions | World Class Asset Reliability, 2017). Managing the production flow of the quality control processes are exceedingly important with the stages being fit, specification sheet, technical pack and sampling processes. Quality must have the suitability for use
Being a global automotive manufacturing company it requires high-end manufacturing capabilities and innovation to make its mark in the market felt Temsa and its management. Further analysis of the report available with the company shows that it was part of Temsa futuristic outlook towards its operational expertise. The company since 2009 has been in the right course of strategic formulation to make its presence on a global arena. (Temsa Global , 2009 )
The on-going slowdown in the OEM business in automotive and UPS sectors is expected to work as a boon as it will help the company in maintaining its market share in the aftermarket sectors. Since the company is spending major portion of its capex in expansion of existing facilities as a result there is a threat of losing out to aggressive competitors.
Our recommended strategy will allow for us to sell goods on a global market with little to none local adjustments to the end product. Therefore, our products will be produced in full prior to embarkation, then to key locations for distribution; all production will take place in one central location. A global strategy in the auto industry drives markets in a uniform fashion; the production of automobiles from region to region is effectively allowing managers to achieve optimal effectiveness and profitable gains within a global market. One of many key objectives is to see the world as one large diverse market; furthermore, our goals are to implement an extreme cost reduction in production while champing a robust and solid design. 3D printing technology has only been recently available to us with the onset of new development skills and production methods. This sharp reduction in cost of production will allow Ford Motor Company to sell its vehicles at a lower cost than can be obtained in any other parts of the world.
Lean manufacturing originated long before Toyota and Ford, however the thought that it originated with Toyota is flattering since they are the ones who perfected it. By creating the Toyota Production System (TPS), Toyota found a better way to produce large quantities of product efficiently with eliminating the waste factor and while cutting down cost. Taiichi Ohno a former Toyota vice president promoted the idea of JIT (Just-in-Time) which means “producing the necessary units in the necessary quantities at the necessary time.” (Monden) Which leads to Toyota’s ultimate goal in the TPS is to improve productivity for better return in investment. To have continuous flow in a production system Toyota sought out to achieve the concept of JIT and autonomation . Since the TPS is what creates the parts who monitors the JIT system? The kanban system which is an informational system that controls quantities being produce in each process. As the discussion carries on throughout this paper about Toyota and their use of the kanban system the topic
As a lean manufacturing consultant at BSE Partners Ltd, I’m writing this report for Hrvoje “Hervie” Cukeric, chief executive officer (CEO) of Tesu SZZ (Tesu), and the management of Euro Manufacturing Technologies (EMT). Tesu Szz is a welding equipment manufacturing company which originated in 1856 in a shipyard in the port city of Pula, Croatia. It is a small privatized company with its 70 employees as shareholders. It manufactures welding equipment for use in the shipbuilding industry. Tesu is facing financial crisis due to low production capacity and undelivered manufacturing parts. Mr. Cukeric, Tesu’s CEO, is responsible for deciding how to prioritize and solve the unpaid payroll taxes problem, the overdue orders problem, and the unpaid wages problem. This report will provide a microeconomic and macroeconomic analysis to identify potential strengths, and weaknesses, and thereby assessing the opportunities, and threats faced by Tesu. The microeconomic analysis will cover the two influential forces from the porter’s five forces, while the macroeconomic analysis will look at political, economic, and technological factors to analyze the impact on the company’s decisions.
A worldwide manufacturing facility of quality bodgets have had a change in management and directorship. The new owners are investing into IT infrastructure of their organizations which will be the first part of an organizational modernization of plant and equipment. A Bodgets Incorporated are now moving into their deployment phase of their IT expansion. Bodgets Company is located at 441, Queen Street, K Road-Auckland city.
This work is done to study the improvement of the quality in automobile industry. This chapter consists three sections named as “Problem definition”, “Objectives” and “Methodology of the study” respectively. The section 3.1 named as “Problem definition” describes the challenge or difficulty that is to be solved. The solution may be achieved after fulfilling the objective by using some sub-objectives that are described in section 3.2 named as “Objectives”. The methodology described in section 3.3 in details. This methodology has been devised keeping in mind the view of “Problem definition” and the “Objectives” that are suggested for the fulfilment of the solution for the problem.
In the following pages, a definition and specification of quality is presented and why it is important for the company. It is also mention the main causes of the problems in the case of study, the measure of quality in the stages during the manufacturing process and finally the recommendations of steps for implementing quality improvements.