Popular Searches
Useful Links
Operations and Project Management Case Study
Case Title:
Chrysler's Product-mix Challenges: Is Flexible Manufacturing the Answer?
Publication Year : 2006
Authors: Chiradeep Chatterjee, Sauvik Dhar
Industry: Automobiles
Region:USA
Case Code: OPM0008
Teaching Note: Available
Structured Assignment: Available
Abstract:
American automobile industry represented by the Big Three - GM, Ford and Chrysler (DaimlerChrysler) had enjoyed a monopolistic environment in North America and their inclination to innovate had been rather limited because of lack of competition. These companies, therefore, maintained production facilities that were suitable for mass production of any single model, which ensured economies of scale and plant profitability. Absence of competition also meant that new model launches were few and far between ensuring full-scale utilisation of plant machinery. However, the Big Three were challenged not only across the product lines n their home turf, but also across the globe. The competition came in the form of formidable Asian players - Toyota, Honda, Nissan and Mitsubishi from Japan, and Hyundai from South Korea. As a result, the choice of car models available to the US consumers increased and the US manufacturers found their market share decreasing. Shorter longevity of car models made it imperative for the US manufacturers to repeatedly invest in expensive modification of their production facilities, decreasing the profitability of their products. Chrysler Corporation found an answer to address this problem in Flexible Manufacturing System (FMS). It is hoped that this system would help Chrysler to not only improve its profitability but also ensure market leadership.
Pedagogical Objectives:
- To discuss the changing competitive dynamics of the US automobile industry
- To discuss the reasons behind the decline in the market shares of the US car manufacturers
- To discuss the concept of Flexible Manufacturing System
- To discuss how Chrysler Corporation implemented Flexible Manufacturing System and improved its profitability
- To discuss how Chrysler integrated its suppliers into its new system of production
- To discuss human resource problems associated with the change in system of production.
Keywords : Flexible Manufacturing System (FMS); North America automobile industry; Overseas competition; Flexible robotics; Operating Strategies Case Study; The Big Three; Chrysler Corporation; Build-to-order; Automated guided vehicle; Plant profitability; Product mix challenges
Contents:
- The North American Automobile Industry
- Chrysler's Product-mix Challenges
- Is Flexible Manufacturing the Answer?
Related Case Studies
- »FedEx: The Cutting Edge
- »RFID in Wal-Mart: Willy Nilly Compliance by its Suppliers
- »Cyberabad Police’s ISO 9001:2000 Certification Programme: A Model of Success?
- »Reliance Communications: The Technology Dilemma
- »Eurotunnel – In Troubled Waters
- View all Operations and Project Management case studies »
Case Studies on Chrysler
- » DaimlerChrysler: Time for a Spin-off?
- » Why Daimler Sold Chrysler?
- » DaimlerChrysler's New Challenge: Saving the Merger
- » Daimler-Chrysler to DaimlerChrysler: Dieter Zetsche's (the New CEO) Restructuring Strategies
- » DaimlerChrysler`s Compass SUV: Softening The Tough Jeep
- View all Chrysler case studies »
Recently Bought Case Studies
- Global Banking Industry: The New Horizons
Price: $25
Hardcover edition
ISBN 978-81-314-2414-8 - Fast Food Retailing Industry - Vol. I
Price: $25
Hardcover edition
ISBN 978-81-314-2456-8 - Decision Making
Price: $50
Hardcover edition
ISBN 978-81-314-1571-9 - View all Casebooks »
Case Studies On
- Course Case Mapping For Operations Management
Price: $Course Case Mapping For Operations Management
Hardcover edition - Course Case Mapping For Quantitative Methods
Price: $Course Case Mapping For Quantitative Methods
Hardcover edition - Course Case Mapping For Business Research Methods
Price: $Course Case Mapping For Business Research Methods
Hardcover edition - View All Course Casemaps»
Course Case Mapping For
- An Interview with Personnel of Vaatsalya Group
Price: $Vaatsalya Hospitals (B): The Operational Model - An interview with Dr. Ashwin Naik & Dr. Veerendra Hiremath
Price: $Vaatsalya Hospitals (A): The Business Model - An Interview with Dr.Rajiv Malhotra & (Prof)Dr.M.P.Sharma
Price: $Managing a World-Class Hospital: The Rockland Story - View all Video Interviews»
Video Interviews
- Training and Development
Executive Brief with Anjali Mukherjee
Highly Recommended for Human Resource Management / Training and Development Course - You Can't Play by Rules, Always
Executive Brief with R.D. Prasad, Product Manager.
Highly Recommended for Organizational Behavior Course - New Recruit MBAs Attitudes
Executive Brief with Lopamudra Ray, Keya Gupta and Deepika Lingala.
Highly Recommended for Organizational Behavior Course - View all Executive Briefs»
Executive Brief
- David Conklin
David Conklin, is a professor at the Richard Ivey School of Business
Speaks on Government and Business - Lord Meghnad Desai
Lord Meghnad Desai, is an Indian-born British economist and Labor politician
Speaks on Government and Business - Vijay Govindarajan
Vijay Govindarajan, is widely regarded as one of the world’s leading experts on strategy and innovation
Speaks on Reverse Innovation - View All Executive Interviews»