Operations Strategy for Maintaining Competitiveness in a European Automotive Company

Christian Koch, David Bennett, Thomas Markussen

    Research output: Chapter in Book/Report/Conference proceedingConference contribution

    Abstract

    The automotive industry is mostly known for its large concentration on a few global players. However the industry also encompasses a series of small and medium-sized enterprises, either as suppliers or as value adders, focused on smaller submarkets. This paper focuses on the specific situation in the automotive industry of a medium-sized manufacturer of tankers for trucks in the road transport industry. The company delivers design, manufacturing and service of high quality products to its customers within an engineer-to-order and manufacture-to-order market. The company faces a range of conflicting demands. The company operates in Northern Europe and benefits from proximity to its customers, yet experiences pressure from low cost, volume manufacturer competitors. Its operations strategy focuses on improving efficiency while maintaining the high value adding element to meet the needs of its identified market. The paper provides a case analysis aimed at evaluating the company’s operation strategy, and more specifically its efforts to improve layout, and synchronizing material flows and bills of materials, where the use of kits, bundles of materials and location of stocks, are prominent aspects of production. An operations management theoretical framework is adopted including material handling and layout concepts. The contribution builds on interviews with key informants within the company as well as document analysis and the presence of one author within the company over a longer period. The paper evaluates the development of the company’s operations strategy. It describes the analysis made of internal logistics and the bills of material as well as the role of business strategy, market and fluctuations in personnel numbers, together with the operations strategy steps taken subsequently.
    Original languageEnglish
    Title of host publicationProceedings of 24th International Conference of the International Association for Management of Technology
    EditorsLeon Pretorius, George Thopil
    PublisherIAMOT & University of Pretoria
    Pages2522
    Number of pages2532
    ISBN (Print)978-1-77592-111-0
    DOIs
    Publication statusPublished - 2015
    Event24th International Conference of the International Association for Management of Technology (IAMOT 2015) - Cape Town, South Africa
    Duration: 8 Jun 201511 Jun 2015

    Conference

    Conference24th International Conference of the International Association for Management of Technology (IAMOT 2015)
    CountrySouth Africa
    CityCape Town
    Period8/06/1511/06/15

    Fingerprint

    Competitiveness
    Operations strategy
    Layout
    Bill of material
    Automotive industry
    Customer experience
    Case analysis
    Costs
    Business strategy
    Road transport
    Manufacturing
    Competitors
    Engineers
    Theoretical framework
    Small and medium-sized enterprises
    Transport industry
    Logistics
    Proximity
    Product quality
    Trucks

    Keywords

    • operations strategy; shop floor layout; kitting; automotive industry.

    Cite this

    Koch, C., Bennett, D., & Markussen, T. (2015). Operations Strategy for Maintaining Competitiveness in a European Automotive Company. In L. Pretorius, & G. Thopil (Eds.), Proceedings of 24th International Conference of the International Association for Management of Technology (pp. 2522). IAMOT & University of Pretoria. https://doi.org/10.13140/RG.2.1.4874.5126
    Koch, Christian ; Bennett, David ; Markussen, Thomas. / Operations Strategy for Maintaining Competitiveness in a European Automotive Company. Proceedings of 24th International Conference of the International Association for Management of Technology. editor / Leon Pretorius ; George Thopil . IAMOT & University of Pretoria, 2015. pp. 2522
    @inproceedings{4a9f82f9f91c46ab8c4c0ed289f49a8f,
    title = "Operations Strategy for Maintaining Competitiveness in a European Automotive Company",
    abstract = "The automotive industry is mostly known for its large concentration on a few global players. However the industry also encompasses a series of small and medium-sized enterprises, either as suppliers or as value adders, focused on smaller submarkets. This paper focuses on the specific situation in the automotive industry of a medium-sized manufacturer of tankers for trucks in the road transport industry. The company delivers design, manufacturing and service of high quality products to its customers within an engineer-to-order and manufacture-to-order market. The company faces a range of conflicting demands. The company operates in Northern Europe and benefits from proximity to its customers, yet experiences pressure from low cost, volume manufacturer competitors. Its operations strategy focuses on improving efficiency while maintaining the high value adding element to meet the needs of its identified market. The paper provides a case analysis aimed at evaluating the company’s operation strategy, and more specifically its efforts to improve layout, and synchronizing material flows and bills of materials, where the use of kits, bundles of materials and location of stocks, are prominent aspects of production. An operations management theoretical framework is adopted including material handling and layout concepts. The contribution builds on interviews with key informants within the company as well as document analysis and the presence of one author within the company over a longer period. The paper evaluates the development of the company’s operations strategy. It describes the analysis made of internal logistics and the bills of material as well as the role of business strategy, market and fluctuations in personnel numbers, together with the operations strategy steps taken subsequently.",
    keywords = "operations strategy; shop floor layout; kitting; automotive industry.",
    author = "Christian Koch and David Bennett and Thomas Markussen",
    year = "2015",
    doi = "10.13140/RG.2.1.4874.5126",
    language = "English",
    isbn = "978-1-77592-111-0",
    pages = "2522",
    editor = "Leon Pretorius and {Thopil }, George",
    booktitle = "Proceedings of 24th International Conference of the International Association for Management of Technology",
    publisher = "IAMOT & University of Pretoria",

    }

    Koch, C, Bennett, D & Markussen, T 2015, Operations Strategy for Maintaining Competitiveness in a European Automotive Company. in L Pretorius & G Thopil (eds), Proceedings of 24th International Conference of the International Association for Management of Technology. IAMOT & University of Pretoria, pp. 2522, 24th International Conference of the International Association for Management of Technology (IAMOT 2015), Cape Town, South Africa, 8/06/15. https://doi.org/10.13140/RG.2.1.4874.5126

    Operations Strategy for Maintaining Competitiveness in a European Automotive Company. / Koch, Christian; Bennett, David; Markussen, Thomas.

    Proceedings of 24th International Conference of the International Association for Management of Technology. ed. / Leon Pretorius; George Thopil . IAMOT & University of Pretoria, 2015. p. 2522.

    Research output: Chapter in Book/Report/Conference proceedingConference contribution

    TY - GEN

    T1 - Operations Strategy for Maintaining Competitiveness in a European Automotive Company

    AU - Koch, Christian

    AU - Bennett, David

    AU - Markussen, Thomas

    PY - 2015

    Y1 - 2015

    N2 - The automotive industry is mostly known for its large concentration on a few global players. However the industry also encompasses a series of small and medium-sized enterprises, either as suppliers or as value adders, focused on smaller submarkets. This paper focuses on the specific situation in the automotive industry of a medium-sized manufacturer of tankers for trucks in the road transport industry. The company delivers design, manufacturing and service of high quality products to its customers within an engineer-to-order and manufacture-to-order market. The company faces a range of conflicting demands. The company operates in Northern Europe and benefits from proximity to its customers, yet experiences pressure from low cost, volume manufacturer competitors. Its operations strategy focuses on improving efficiency while maintaining the high value adding element to meet the needs of its identified market. The paper provides a case analysis aimed at evaluating the company’s operation strategy, and more specifically its efforts to improve layout, and synchronizing material flows and bills of materials, where the use of kits, bundles of materials and location of stocks, are prominent aspects of production. An operations management theoretical framework is adopted including material handling and layout concepts. The contribution builds on interviews with key informants within the company as well as document analysis and the presence of one author within the company over a longer period. The paper evaluates the development of the company’s operations strategy. It describes the analysis made of internal logistics and the bills of material as well as the role of business strategy, market and fluctuations in personnel numbers, together with the operations strategy steps taken subsequently.

    AB - The automotive industry is mostly known for its large concentration on a few global players. However the industry also encompasses a series of small and medium-sized enterprises, either as suppliers or as value adders, focused on smaller submarkets. This paper focuses on the specific situation in the automotive industry of a medium-sized manufacturer of tankers for trucks in the road transport industry. The company delivers design, manufacturing and service of high quality products to its customers within an engineer-to-order and manufacture-to-order market. The company faces a range of conflicting demands. The company operates in Northern Europe and benefits from proximity to its customers, yet experiences pressure from low cost, volume manufacturer competitors. Its operations strategy focuses on improving efficiency while maintaining the high value adding element to meet the needs of its identified market. The paper provides a case analysis aimed at evaluating the company’s operation strategy, and more specifically its efforts to improve layout, and synchronizing material flows and bills of materials, where the use of kits, bundles of materials and location of stocks, are prominent aspects of production. An operations management theoretical framework is adopted including material handling and layout concepts. The contribution builds on interviews with key informants within the company as well as document analysis and the presence of one author within the company over a longer period. The paper evaluates the development of the company’s operations strategy. It describes the analysis made of internal logistics and the bills of material as well as the role of business strategy, market and fluctuations in personnel numbers, together with the operations strategy steps taken subsequently.

    KW - operations strategy; shop floor layout; kitting; automotive industry.

    UR - http://www.proceedings.com/34665.html

    U2 - 10.13140/RG.2.1.4874.5126

    DO - 10.13140/RG.2.1.4874.5126

    M3 - Conference contribution

    SN - 978-1-77592-111-0

    SP - 2522

    BT - Proceedings of 24th International Conference of the International Association for Management of Technology

    A2 - Pretorius, Leon

    A2 - Thopil , George

    PB - IAMOT & University of Pretoria

    ER -

    Koch C, Bennett D, Markussen T. Operations Strategy for Maintaining Competitiveness in a European Automotive Company. In Pretorius L, Thopil G, editors, Proceedings of 24th International Conference of the International Association for Management of Technology. IAMOT & University of Pretoria. 2015. p. 2522 https://doi.org/10.13140/RG.2.1.4874.5126