Itt Auto

ITT Automotive: Global Manufacturing Strategy 1994

1. What are your recommendations regarding the issue of standardizing process technology across all plants?  Are there motives behind this proposal, other than those stated in the case?

Recommendations:

1. As per the product-process matrix, high volume with few major products would need a connected line flow. Mass customization (postponement) strategy to be adopted for higher efficiency and utilization of equipment and resources.

2. To implement in phases starting with Frankfurt. Then bring the other plant managers to witness the operation improvements of full automation and benefits of standardizing process technology and get their buy-in.

3. Work on supplier terms to provide input material with high quality similar/identical to that in Europe and engage in continuous improvement with the supplier. Procurement standardization to be adopted to leverage equipment commonality and avoid quality related issues.

4. Match the output of each process step, module level and product characteristics with the R&D parameters to ensure quality. Regular audits may be required to ensure this.

Motive factors:

* The time to development and market provided by customers are shrinking with newer generations of ABS systems. By standardizing process technology across all plants both manufacturers and customers can reduce time to market.

* New process and products can be introduced to production in minimum time with equivalent yields and without introduction of product quality issues

* To enable manufacturing improvement systems to be agile and flexible, requiring multiple factories running the same process and have the products matched.

* Enables centralized decision making and control due to replication.

* Risk pooling in terms of inventory of raw materials, semi/fully finished goods due to demand and inventory aggregation.

2. In general, when should `copy exactly’ be used?...