Automobile Industry

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Automobile Industry

Managing supply to achieve quality and customer satisfaction

EXECUTIVE SUMMARY

This case study examines the issue of managing supply in the automobile industry to achieve quality and customer satisfaction. Four production strategies are discussed: (1) “level capacity” strategy; (2) “chase” strategy; (3) “demand” strategy and; (4) “mixed” strategy. The benefits and costs of each of these strategies are assessed and the best strategy is chosen. The recommended strategy is the “mixed” strategy as the contingency model suggests that there is no one best method to manage the production level. The optimal level of production is contingent upon the internal and external organisational environment. Therefore, instead of the other three “pure” strategies, it is recommended that the best alternative is the “mixed” strategy, which allows for contingencies. In addition, the technological aspect is vital in the improvement of product quality and the enhancement of customer satisfaction. Thus, the types of software applications within the inbound logistics and the types of computerised assistance within the marketing and sales function are examined. Lastly, the distinctions between the service organisation and the manufacturing organisation are identified. It is important to note that the production strategies for the service organisation differ from the manufacturing organisation.

TABLE OF CONTENTS

Executive Summary....................................................................................................................................................... 2 The Definition of Automobile .......................................................................................................................................4 The History of the Automobile (Bellis, n.d.) .................................................................................................................4 Economic Situation in the...