Research on automotive industry dynamics from assembly to the extended enterprise, from e-business to sustainability https://hdl.handle.net/1721.1/1782 2026-04-10T16:13:08Z 2026-04-10T16:13:08Z Helper, Susan Levine, David https://hdl.handle.net/1721.1/1795 2019-04-10T12:16:33Z 1995-01-01T00:00:00Z

A Quality Policy for America Helper, Susan; Levine, David

1995-01-01T00:00:00Z Graves, Andrew https://hdl.handle.net/1721.1/1668 2019-04-12T08:09:53Z 1994-01-01T00:00:00Z

Fuel, Environment and the Economy: Automobiles and the Voice of Society Graves, Andrew

1994-01-01T00:00:00Z Ellison, David J. Clark, Kim B. Fujimoto, Takahiro Hyun, Young-Suk https://hdl.handle.net/1721.1/1667 2019-04-12T07:58:23Z 2002-09-16T19:12:08Z

Product Development Performance in the Auto Industry: 1990s Update Ellison, David J.; Clark, Kim B.; Fujimoto, Takahiro; Hyun, Young-Suk Over the past decade, firms in auto industry have focused much of their attention on new auto product development performance. This paper reports on a follow-up study to Clark and Fujimoto's research on product development performance in the 1980s. We find that U.S. and European firms have made significant strides in meeting Japanese levels of product development performance. Driving this improvement have been changes in the use of suppliers, in overlapping phases of the development process, and in the type of project management system used. We also find that Korean auto makers are relatively efficient in terms of lead time and engineering productivity, although final design quality is lower. The narrowing of the competitive gap in the management of individual projects may point to product line performance as a future driver of competitive advantage. 1995 Working Paper

2002-09-16T19:12:08Z Ellison, David J. Clark, Kim B. Takahiro, Fujimoto Young-suk, Hyun https://hdl.handle.net/1721.1/1649 2019-04-12T08:09:57Z 1995-01-01T00:00:00Z

Product Development Performance in the Auto Industry: 1990s Update Ellison, David J.; Clark, Kim B.; Takahiro, Fujimoto; Young-suk, Hyun Over the past decade, firms in the auto industry have focused much of their attention on new product development performance. This paper reports on a follow-up study to Clark and Fujimoto's research on product development performance in the 1980s. We find that US and European firms have made significant strides in meeting Japanese product development performance. Driving this improvement have been changes in the use of suppliers, in overlapping phases of the development process, and in the type of project management system used. We also find that Korean auto makers are relatively efficient in terms of lead time and engineering productivity, although final design quality is lower. The narrowing of the competitive gap in the management of individual projects may point to product line performance as a future driver of competitive advantage. Draft

1995-01-01T00:00:00Z Hyun, Young-suk https://hdl.handle.net/1721.1/1648 2019-04-10T16:28:19Z 2002-09-11T15:01:22Z

The Road to the Self-Reliance New Product Development of Hyundai Motor Company Hyun, Young-suk This paper traces the new product development of Hyundai Motor Company, Korea, which, since its foundation in 1967, has maintained the self reliance strategy, particularly in new product development. Business strategy of Hyundai contrasts sharply with other auto makers in developing countries as well as to other Korean makers. In spite of a late entrance to the auto business, this unique strategy has led Hyundai to becoming a market leader in Korea and to becoming the thirteenth producer in the world -- recording an output of over one million in 1994. Hyundai Motor has a aggressive plan with a goal to be within the 10 top auto makers by 2000 (Global Top-10 plan) but the process of accumulating the technological resources the company needs is not yet well established. The intent of this paper is to provide readers with a basic understanding of Hyundai's approach in new product development under internationally oligopolistic markets and how it has accumulated technological resource capability in relation with foreign alliances. The research method consists of literature reviews of published sources on firm's activities--including company history and interviews with development and management personnel. The work will first overview the history and development of Hyundai, then will produce case studies on Sonata (1988), New Grandeur (1992), Accent (1994) and the Alpha engine (1991). June 1995

2002-09-11T15:01:22Z Harbour, Malcolm https://hdl.handle.net/1721.1/1647 2019-04-12T08:09:57Z 2002-09-11T14:30:51Z

The International Car Distribution Programme: Project Evolution, Activities, and Research Summary Harbour, Malcolm The International Car Distribution Programme (ICDP) is the world’s largest research study into car distribution. Supported by 29 companies and organisations, ICDP will complete its first 2 year investigation into all aspects of franchised car retailing and after-sales in March 1996. Plans are already being made for a further 2 years of study. ICDP’s objectives are to help all participants in car distribution plan for the future by developing new ideas for improving the present system or for introducing entirely new distribution formats. These solutions will be based on a deep understanding of the present system, using independent data collection and research. International comparisons between distribution system performance - in many cases, aggregating commercially confidential data previously unavailable to researchers - is revealing a range of best practices and benchmarks around which new policies can be built. ICDP’s principal data collection and analysis is being carried out by a European research network of academics and independent researchers, supported by US and Japanese research activities. Research topics are focused on two main streams - franchised dealer operations, their profitability and organisation, and manufacturer topics, including supply and stocking systems and franchised standards. Evaluation of consumer issues will form part of both streams. ICDP is a highly participative programme and its meetings provide a unique forum for sponsor members to debate issues facing car distribution. The involvement of all players in the sector - manufacturers, dealer groups, dealer associations, finance companies, logistics companies, after market suppliers - makes these ICDP discussion sessions unique. There is an opportunity to debate contentious issues in an independent framework supported by research-based information.

2002-09-11T14:30:51Z Fine, Charles Gilboy, George Oye, Kenneth Parker, Geoffrey https://hdl.handle.net/1721.1/1646 2019-04-12T07:58:23Z 2002-09-11T14:01:05Z

The Role Of Proximity In Automotive Technology Supply Chain Fine, Charles; Gilboy, George; Oye, Kenneth; Parker, Geoffrey This essay is divided into the following sections: in section 1.1, we briefly argue that the auto industry is a compelling case for studying regional economic development and economic geography precisely because it generates large numbers of high-quality jobs, and forges tight linkages to production and jobs in upstream and downstream sectors. In section 2, we present the issues of production and place more systematically. Having established the importance of the issue of production and place in this introduction, we move on to frame the debate by defining two types of “space” over which public and private authorities have jurisdiction, and across which production and its attendant jobs are (re)located. We further define four types of proximity: geographic, organizational, cultural, and electronic, that plausibly contribute to the success of economic development. These kinds of proximity offer varied incentives and disincentives for industrial agglomeration, and therefore inspire competition between nations, states and regions for the location of production and jobs. Also in section 2, we introduce two issues that have remained largely unexplored in the literature on regional economic development and economic geography: the strategic interaction between and among firms and public authorities, and the question of production technology development and sourcing. Working Draft, 1995

2002-09-11T14:01:05Z Fine, Charles H. Gilboy, George Parker, Geoffrey G. https://hdl.handle.net/1721.1/1645 2019-04-12T08:09:54Z 2002-09-11T13:55:33Z

Technology Suuply Chains: An Introductory Essay Fine, Charles H.; Gilboy, George; Parker, Geoffrey G. This essay addresses strategic technology sourcing -- the determination of what technologies are strategic to a firm (or nation) and the management of the policy options that follow from this determination. This work is certainly not the first word on this subject, nor will it be the last. In fact, we hope that it will stimulate significant discussion about strategic technology sourcing especially in those organizations where such discussion has been absent, naive, or just shouted down by the manage-by-the-numbers types. In the business press today, outsourcing is the rage. "Restructure and downsize your organization; outsource as many functions as possible" seems to be the message from many of the world's most profitable corporations -- large and small -- as well as their consultant-armies.

2002-09-11T13:55:33Z Anderson Jr., E.G. Fine, C.H. Gilboy, G.J. Parker, G.G. https://hdl.handle.net/1721.1/1644 2019-04-12T08:09:52Z 2002-09-11T13:31:08Z

Upstream Volatility in the Supply Chain: The Machine Tool Industry as a Case Study Anderson Jr., E.G.; Fine, C.H.; Gilboy, G.J.; Parker, G.G. Cyclicality is a well known and accepted fact of life in market-driven economies. Less well known or understood, however, is the phenomenon of amplification as one looks "upstream" in the industrial supply chain. This paper discusses and explains the amplification phenomenon and its implications through the lens of one "upstream" industry that is notorious for the intensity of the business cycles it faces: the machine tool industry. Using a sparse simulation model, we have replicated much of the behavior seen in the industrial world in which machine tool companies operate. This model has allowed us to test and confirm many of our hypotheses. Two results stand out. Even though machine tool builders can do little to reduce their production volatility through choice of forecast rule, a longer view of the future leads companies to retain more of their skilled workforce. This is often cited as one of the advantages that European and Japanese companies have enjoyed: lower skilled employee turnover. The second, and most important result is that machine tool customers can do a great deal to reduce the volatility for machine tool builders through their choice of order forecast rule. Companies which use a longer horizon over which to forecast orders tend to impose less of their own volatility upon their supply base. Working Draft, May 1995

2002-09-11T13:31:08Z Lieberman, Marvin B. Demeester, Lieven https://hdl.handle.net/1721.1/1643 2019-04-12T08:09:56Z 2002-09-10T19:04:18Z

Inventory Reduction and Productivity Growth: Evidence from the Japanese Automotive Sector Lieberman, Marvin B.; Demeester, Lieven The literature on JIT production suggests a causal link between work-in-process inventory and manufacturing productivity. Such a connection has been described in numerous case studies but never tested statistically. This paper uses historical data for 52 Japanese automotive companies to evaluate the inventory-productivity relationship. We find that inventory reductions stimulated gains in productivity, rather than vice versa. On average, each 10% reduction in inventory led to about a 1% gain in labor productivity, with a lag of about one year. Significant differences are found among company groups: Toyota affiliates had a shorter lag; while Nissan affiliates demonstrated no productivity effect. Firms that made inventory reductions typically saw an increase in their productivity rank.

2002-09-10T19:04:18Z Lee, Daechang https://hdl.handle.net/1721.1/1642 2019-04-12T08:09:56Z 1995-06-01T00:00:00Z

Incentive Effects of Promotions on Employee Participation: The Case of Korean Auto Workers Lee, Daechang In the tournament games only the winner can advance to the next rounds of competition. The important feature of tournament is that the reward is based on the rank order among competitors rather than absolute level of their performances. This type of reward system can be widely found in competition for promotion in business organizations. For example, many hourly workers in manufacturing plants compete for a limited number of supervisory positions; a number of vice presidents in a firm strive for one coveted position of president. The employee participation in improvement activities have been thought of as one of the best practices taken in many auto plants around the world. So we can find auto firms often evaluating their workers on the basis of how good performances they show in off-line activities such as suggestions and QC circles. Or at least it is one of many evaluating items. Since the opportunity of promotions is limited but often known to production workers in advance, it may be regarded as prizes open to candidates. Tournament theory shows that compensation based on relative order can give participants an incentive to provide an optimal level of efforts under certain a set of assumptions. It is often argued that the optimal level of efforts depend positively on the price differential for winning the game. There has been many studies to analyze the benefits and costs that employee participation activities can give individual workers [Cooke (1990)]. However, few attempts have been made to test if promotion tournaments can induce workers to involve more actively in employee participation. In this study I seek to test the incentive effects of promotion using data from a survey of Korean auto plants.

1995-06-01T00:00:00Z Kochan, Tom Lansbury, Russell https://hdl.handle.net/1721.1/1641 2019-04-12T08:09:56Z 1995-05-31T00:00:00Z

Employee Relations in the International Automotive Industry in an Era of Global Change Kochan, Tom; Lansbury, Russell

1995-05-31T00:00:00Z Helper, Susan R. Hochfelder, David https://hdl.handle.net/1721.1/1640 2019-04-12T08:09:55Z 1995-01-01T00:00:00Z

Japanese-Style Relationships in the Early Years of the US Auto Industry Helper, Susan R.; Hochfelder, David

1995-01-01T00:00:00Z Parkin, Richard J. Helper, Susan R. https://hdl.handle.net/1721.1/1639 2019-04-12T08:09:54Z 1995-07-09T00:00:00Z

Layoffs and Worker Effort Theory and Evidence from the North American Automotive Supplier Industry Parkin, Richard J.; Helper, Susan R. In this paper, we examine the effect of layoffs and layoff policies on three measures of worker effort. More specifically, we use data on first-tier automotive suppliers in the U.S. and Canada to test the proposition that greater employment security interacts with other human resources policies to increase worker effort.

1995-07-09T00:00:00Z Lieberman, Marvin B. Demeester, Lieven Rivas, Ronald https://hdl.handle.net/1721.1/1638 2019-04-12T07:58:22Z 2002-09-10T18:17:33Z

Inventory Reduction in the Japanese Automotive Sector, 1965-1991 Lieberman, Marvin B.; Demeester, Lieven; Rivas, Ronald This paper traces the diffusion of “just-in-time” production in the Japanese automotive sector, as reflected by inventory reductions in a sample of 52 suppliers and assemblers. We show that most inventory reductions occurred during a remarkable burst of activity starting in the late 1960s. Companies affiliated with Toyota were the early adopters but were followed very quickly by others in Japan. By the late 1970s nearly all of the firms in the sample had made drastic reductions in inventory. Work-in-process and suppliers’ finished goods fell by nearly two thirds on average.

2002-09-10T18:17:33Z Anderson, Shannon W. https://hdl.handle.net/1721.1/1637 2019-04-12T07:58:22Z 2002-09-10T18:08:57Z

A Framework for Assessing Cost Management System Changes: The Case of Activity-Based Costing Implementation at General Motors, 1986-1993 Anderson, Shannon W. An opportunity to study the technical and organizational impact of management accounting system changes has emerged with companies' adoption of activity-based costing (ABC). This paper provides a structured account of experimentation with, and adoption and adaptation of ABC in General Motors Corporation, from 1986 to 1993. From this case, the paper develops a framework for evaluating ABC implementation and hypotheses about factors that influence implementation. The search for factors that ABC implementation success is guided by information technology and organizational change literature, as well as anecdotal evidence of factors that influence ABC implementation success. Data is gathered from interviews, archival records, and direct observation and the primary method of analysis is with-in case comparison of data sources. The theory of ABC implementation that emerges is one of an evolutionary sequence of implentation stages that are influenced by socio-technical factors.

2002-09-10T18:08:57Z Ferro, Jose Roberto https://hdl.handle.net/1721.1/1636 2019-04-12T08:09:52Z 1995-01-01T00:00:00Z

Current developments of the Brazilian automotive industry Ferro, Jose Roberto In the context of the stabilization and economic growth that has followed the Real plan introduced in mid 1994, the latest effort to curb dramatically high inflation, the Brazilian automotive industry has continued to grow following a series of policy changes occurred throughout the 90s. The industry has "boomed" for two consecutive years, achieving record production and sales levels. In 1994 production volume reached 1.5 million units, domestic sales of 1.3 million and 380.000 units exported. And a record volume of 150.000 units of imported vehicles penetrated the Brazilian market. After more than a decade of stagnation and with a poor technological and efficiency performance, this partial success crowns a restructuring process that has implemented lean manufacturing principles as the new industry paradigm and a new set of industrial policies that has liberalized the Brazilian economy and has stimulated the cooperation among the major stakeholders - government, companies, labor. This paper will focus on the most recent economic performance and policy changes in the Brazilian automotive industry, which faces the formidable challenge of being competitive internationally as new investments of US$ 10 billion expected until the year 2.000 to raise the production volume of 2.5 to 3 million.

1995-01-01T00:00:00Z Amsden, Alice H. Kang, Jong-Yeol https://hdl.handle.net/1721.1/1635 2019-04-09T19:07:07Z 1995-06-01T00:00:00Z

Learning to be Lean in an Emerging Economy: The Case of South Korea Amsden, Alice H.; Kang, Jong-Yeol Balance of payments considerations have driven the automobile industry strategies of many late-industrializing countries such as Thailand, Mexico, and Malaysia. These countries do not intend to become leading suppliers in the world automobile industry but rather, have designed (if only by default) their assembly and parts operations with a view towards protecting their balance of payments. Because an automobile is a high-value import, and because demand for automobiles rises steeply as per capita income rises, free importation of automobiles often hurts a young economy's balance of payments. Therefore, virtually all lateindustrializing countries have some intention of developing a production capability in autos in order to protect the supply of and demand for foreign exchange. First draft

1995-06-01T00:00:00Z Rubinstein, Saul Kochan, Thomas https://hdl.handle.net/1721.1/1634 2019-04-10T12:16:40Z 2002-09-04T17:31:01Z

The Effects of the GM/UAW Saturn Partnership on Quality Performance: A Brief Overview of Preliminary Findings Rubinstein, Saul; Kochan, Thomas This project analyzes the effects of the co-management arrangements built into the first line of supervision (module advisors) at the Saturn Corporation on first time quality (FTQ) performance and improvements in first time quality. This is a very unique organizational arrangement wherein represented (i.e., unionized) and non-represented (i.e., managers) partners share responsibilities for co-managing production work teams. The purpose of this portion of our work is to test whether this co-management arrangement contributes to the performance of these work units and thereby adds value to Saturn as a whole. We focus on first time quality as the performance measure. In order to analyze the value-added to quality performance by Saturn's system of comanagement, represented and non-represented operations department-level middle managers were studied. A detailed analysis of the supervisory system at the department or module level across Saturn's three plants (called business units) allowed us to test whether the variations in the comanagement system and quality performance are systematically related. We analyzed the relationship between the behavior patterns and supervisory methods of both union and non-union middle managers, attributes of their individual union-management partnerships, differences in the patterns of communication and coordination of each group, and performance outcomes, in particular first-time-quality improvement. We also studied time use and the dynamics of partnerships, including the balancing of social and economic tasks, as well as the division of labor between represented and non-represented management. Specifically, we examined: 1) Whether represented managers were indeed managing people and technical aspects of the production process (called resources); 2) If represented managers were managing, did they manage their time, priorities, and communications differently than did their non-represented partners. 3) Whether the behaviors of represented managers added value to quality performance. 4) Whether the nature of the individual represented and non-represented manager partnerships at the department level had an impact on quality performance. These questions are important because some industry observers believe that while over half of the middle management positions at Saturn were indeed being filled by union members, Saturn had simply bought labor peace at a high price. They contended that only the non-represented managers were truly functioning in that role while the union members were either free riders or acting as grievance committeemen focusing exclusively on people issues. Another explanation for Saturn's remarkable quality performance is that a new 'effort bargain' was struck between GM and the UAW (i.e. workers simply work harder). We test our alternative hypothesis that this system of partnership and co-management systematically adds value by increasing the rate of first-time-quality improvement. These data allow us to test which, if any, of the specific attributes of the partnership (i.e. task balancing, represented and non-represented relationships, communication density, problem solving, etc.) predict quality performance. Data were collected via surveys from 150 managers across the three business units. Multiple regression techniques were used to analyze these data, and to test for the relationship of these specific aspects of the co-management system to first-time-quality improvement. Managers provided data on how they used their time during the day, how they thought they should allocate their time, and on their communications with others in the Saturn operations. The communications data were collected over a two week time period. The differences in the level and nature of communications were then analyzed to see if they affected quality performance outcomes. Two measures of quality serve as the performance outcomes to assess the impact of the Saturn partnership arrangements: 1) first time quality; and 2) quality improvement.

2002-09-04T17:31:01Z Mukherjee, Avinandan Sastry, Trilochan https://hdl.handle.net/1721.1/1633 2019-04-12T08:09:23Z 2002-09-04T17:27:34Z

Recent Developments and Future Prospects in the Indian Automotive Industry Mukherjee, Avinandan; Sastry, Trilochan The automobile market is growing at about 25% for the last three years. The number of persons per car is 200, which is very large compared to other emerging markets like Korea and Brazil which have about 12 persons per car. There is therefore a very huge untapped market. Uncertainty exists about the extent of growth, but a minimum growth rate of 20% is expected until the year 2000. Sales are expected to rise to anywhere between 850,000 to 1.5 million vehicles by the year 2000. Markets are highly price sensitive since a car is about 18 to 24 months salary for the average middle class buyer. However, incomes are rising and the economy has been growing steadily at nearly 6%. Import duties on CKDs and components is 50%. Reduction of prices because of lower duties and taxes and progressive indigenization, and rising middle class incomes are likely to further increase industry growth rates. Penetration in rural and semi urban areas is extremely low and could provide fresh markets. New entrants will have to deal with uncertainty of demand, different and evolving customer needs, a relatively poor supplier base, a market crowded with competition and industry wide capacity shortages. However, if there is a shake out as many analysts expect, further opportunities for survivors will open up. Another implication is that India could emerge as a significant manufacturing base for exports. The supplier industry is also going through massive growth, although from a small initial base. Except for Telco, indigenous product development capabilities are very low, and the industry has some way to go before it becomes world class.

2002-09-04T17:27:34Z Sastry, Trilochan Mukherjee, Avinandan https://hdl.handle.net/1721.1/1632 2019-04-10T12:16:40Z 2002-09-04T17:25:37Z

The Automotive Industry in Emerging Economies: A Comparison of Korea, Brazil, China and India Sastry, Trilochan; Mukherjee, Avinandan The automotive industry in Korea, Brazil, China and India is currently going through impressive growth. Governments have played a key role in the evolution of the industry in all these countries. The Korean industry has made the most significant progress, and is now exporting cars to developed markets. It is the only country that invested in R&D for product development, retained management control in joint ventures with multinational companies (MNCs), and had ambitious export targets. The industry in Brazil is controlled entirely by MNCs. Although this has led to growth and adoption of lean production, indigenous product development is lacking. Tariff barriers have come down, forcing domestic production to become more market responsive. Fluctuating tariffs and taxes, and cyclical demand have characterized the industry. Indian industry is experiencing a revolution with rapid growth and the entry of 9 MNCs and plans for 3 more to enter in the next two years. The Chinese industry is also growing very rapidly although it is still highly fragmented. Passenger cars are only 15% of total vehicle production in China. Demand in Brazil, India and China is highly price sensitive and growth is led by the demand for a small car. Higher taxes on mid and large size cars give the small car a big price advantage. Import duties for components imply that the supplier base in these countries needs to develop fast. The supplier industry could become a bottleneck for growth.

2002-09-04T17:25:37Z Sastry, Trilochan Mukherjee, Avinandan https://hdl.handle.net/1721.1/1631 2019-04-12T08:09:23Z 2002-09-04T17:23:13Z

Entry Strategies in Emerging Economies: The Case of the Indian Automobile Industry Sastry, Trilochan; Mukherjee, Avinandan In anticipation of rapid growth, the passenger car market in India is crowded with 18 companies trying to establish themselves. Most companies have joint ventures with Indian partners and have entered the market in the last two years. The number of new entrants over a narrow time window of two years is unprecedented. Demand forecasts vary and analysts expect anywhere between 2 and 3.5 million cars to be sold in the next five years. Equity holding for the international partner is usually over 50% and they retain significant managerial control. Most of them have introduced cars in the $13,500 to $33,000 price range, which is viewed as a luxury segment in India. Automobile companies have also chosen to establish exclusive dealerships. Initially, companies have chosen to import completely knocked down (CKD) kits and assemble them in India. However, this strategy is not effective in the long run since such imports attract 50% duty. The major implications are that a shake out is likely and that companies would need to have alternate plans, including introduction of cars in other market segments, lower prices, and exports from India if they cannot establish themselves in the domestic market. The supplier industry is very small and needs to develop simultaneously on all fronts including rapid capacity expansion, acquisition of technology, improvement in manufacturing practices, quality and productivity, adoption of lean manufacturing, and developing product design capabilities to meet the needs of assemblers. Therefore, a critical requirement for rapid growth of the industry is adequate assembler involvement in the suppler industry.

2002-09-04T17:23:13Z Okano, Hiroshi https://hdl.handle.net/1721.1/1630 2019-04-09T15:27:38Z 1996-01-01T00:00:00Z

Target Cost Management Strategy Okano, Hiroshi Target cost management (TCM) is an innovation of Japanese management accounting system and by common sense has been considered with great interest by practitioners. Nowadays, TCM related dissertations, papers, articles are widely being published in special journals both in North America and Europe; this may explain why seminars and workshops about TCM are so frequent. Even in the academicians' seminars and other meetings of research organizations, TCM related articles have a high probability to be accepted and reported. Last year for example, the American Accounting Association's seminar held in Boston about "Japanese cost management" was focused on the formulation of TCM (Okano-Shimizu, 1994; Kato, 1995). The above situation shows that the attention put on TCM is very different from that one put on JIT - "Japanese production system" - in the 1980s. So far, there were debates concerning the a priori that "The competitiveness of Japanese industries" is the outcome of the management system excellence. With many problems facing Japanese industries recently, the originality in the research and development system prior to the introduction of a new product becomes a point of great importance. Nowadays' fiery competition is likely to speed up the TCM system. Nevertheless, many of the published cases about TCM system have been made in special journals. Academic journal publications are few in comparison. Academic researches about TCM are now in the embryonic stage. In the light of that situation, this paper seeks to examine the importance of the relationship between strategy, organization, and TCM. Three directions of TCM are also presented, as well as the intertwines between Product Manager Allowance, ABC/ABM. Then future TCM research orientation is made.

1996-01-01T00:00:00Z Nobeoka, Kentaro https://hdl.handle.net/1721.1/1629 2019-04-10T12:16:40Z 2002-09-04T17:09:16Z

The Influence of Customer Scope on Supplier's Performance in the Japanese Automobile Industry Nobeoka, Kentaro Outline

2002-09-04T17:09:16Z Nobeoka, Kentaro https://hdl.handle.net/1721.1/1628 2019-04-12T08:09:22Z 2002-09-04T17:06:14Z

Alternative Component Sourcing Strategies within the Manufacturer-Supplier Network: Benefits of Quasi-Market Strategy in the Japanese Automobile Industry Nobeoka, Kentaro This study examines the component sourcing strategy of the Japanese automobile manufacturers, focusing on the sourcing concentration and the sharing common suppliers with competitors. We have analyzed sourcing strategy of six Japanese car assemblers (Toyota, Nissan, Honda, Mitsubishi, Mazda, and Suzuki) regarding 95 components. We have found that firms using a broad manufacturer-supplier network tend to be more profitable. In other words, firms with a low sourcing concentration and a high supplier sharing, which are the characteristics of quasi-market strategy, tend to perform better than the other firms. Among the six manufacturers, Toyota, Mitsubishi, and Suzuki were categolized as firms that followed quasi-market strategy. We believe that this finding is interesting because this relationship has been found in the context of the Japanese supplier-assembler relationship. The Japanese cooperative inter-firm relationship is supposed to be beneficial to suppliers, as well as to assemblers. It is commonly considered that a relatively exclusive keiretsu system facilitates these close inter-firm ties. However, the results in this study imply that a few leading Japanese automobile manufacturers may have management capabilities in benefiting from both a relatively broad supplier base and cooperative relationship with individual suppliers.

2002-09-04T17:06:14Z Nishiguchi, Toshihiro Oue, Shingo https://hdl.handle.net/1721.1/1627 2019-04-10T12:16:40Z 2002-09-04T17:02:00Z

Does the Regional Myth Still Hold? An Interim Report Nishiguchi, Toshihiro; Oue, Shingo This paper introduces our ongoing analysis of auto component development data obtained from Nishiguchi's research sponsored by MIT's International Motor Vehicle Program (IMVP). The main results of this paper can be found in the section of Research Results where a regression analysis of auto component development productivity is conducted. There are three major findings: 1. Contrary to the general perception, neither component type nor generally accepted project characteristic governs variations of productivity among auto component projects in our study. 2. Even after correcting for component type and differences in project characteristics, there still remains a strong regional gap in productivity between Japanese and Western samples (North America and Europe). 3. Among Japanese suppliers, a counterintuitive relationship between person hours and unique parts ratio was revealed: There is a tendency that person hours decreases as unique parts ratio increases. This relationship should not occur without continuous accumulation of knowledge on the auto components. Nor is it explained solely by a cross-functional feature of organizations.

2002-09-04T17:02:00Z Fine, Charles H. Whitney, Daniel E. https://hdl.handle.net/1721.1/1626 2019-04-10T07:15:36Z 2002-09-04T16:43:04Z

Is the Make-Buy Decision Process a Core Competence? Fine, Charles H.; Whitney, Daniel E. Many of today's products are so complex that no single company has all the necessary knowledge about either the product or the required processes to completely design and manufacture them in-house. As a result, most companies are dependent on others for crucial elements of their corporate well-being. Typically, however, companies have some choice as to whom they become dependent upon and for what sorts of skills and competences. That is, although few companies can "do it all," most have significant influence over the strategic choice of corporate identity and what businesses to be in. What is the range of choices they face? How are different companies making those choices? Can we make sense of the variety of decisions we can observe now in different industries or different parts of the world? What are the skills that companies must retain? In this paper we address the challenge of making these choices rationally. We give examples in which similar companies, facing similar choices, select make/buy patterns in very different ways, resulting in very different patterns of interdependencies along companies' supply chains. These choices are not restricted to skills related to the product, but include choices related to key design and manufacturing issues. To make sense of these differences, we propose a framework that ties together the following engineering and management concepts into one coherent view: 1) core competencies 2) the product development process 3) systems engineering 4) product architecture and modularity, and 5) supply chain design.

2002-09-04T16:43:04Z MacDuffie, John Paul https://hdl.handle.net/1721.1/1625 2019-04-12T08:09:22Z 1995-09-01T00:00:00Z

International Trends in Work Organization in the Auto Industry: National-Level vs. Company-Level Perspectives MacDuffie, John Paul Changes in shop-floor work organization are a central part of broader changes in industrial relations in many industries around the world. In the automotive industry, the focus of this paper, international competition, new technological capabilities, and production system innovations have prompted many companies to move away from the dominant mass production model and to adopt new, flexible principles for organizing work that have demonstrable advantages in terms of economic performance. It is clear that these principles are often adopted selectively (and incompletely) and modified as they diffuse. What is less clear is how much variation in adoption occurs (and how extensive the modifications), whether the patterns of diffusion are driven more by national-level or company-level factors, and how closely work organization changes are related to the overall industrial relations system, which does vary considerably at the national level. I will argue in this paper that the emergence of a new set of dominant organizing principles in the auto industry has created the conditions for more convergence across countries and divergence within countries in work organization. These conditions affect the organization of work far more directly than they affect the broader industrial relations system, with the latter more likely to retain many country-specific characteristics despite the pressures for decentralization and responsiveness to local circumstances (Katz, 1993; Locke, 1992). But whereas national differences in industrial relations were likely, in the past, to dominate changes in work organization and create clear national patterns, I will argue that the forces for convergence across and divergence within countries are now more likely to overwhelm national differences. Draft Version for 1996 IMVP Sponsors Meeting. Some tables not included.

1995-09-01T00:00:00Z MacDuffie, John Paul Doucet, Lorna Hunter, Larry W. https://hdl.handle.net/1721.1/1624 2019-04-10T12:16:39Z 2002-09-04T16:29:44Z

What Does Transformation Mean to Workers? The Effects of the "New Industrial Relations" on Union Employees' Attitudes MacDuffie, John Paul; Doucet, Lorna; Hunter, Larry W. The Chrysler-UAW Modern Operating Agreement (MOA) is a prototype for the "new industrial relations," establishing (through collective bargaining) reduced job classifications, shopfloor work teams, a pay-for-skills compensation plan, extensive training, and decentralization of various production and quality responsibilities to teams -- all under a joint union-management governance structure. We use a 1993 survey of worker attitudes at six MOA plants (two to five years after MOA was implemented) to predict which workers are likely to express approval of the MOA and the team concept. The survey measured individual, group, and organization-level (i.e. establishment) characteristics in order to capture the full context surrounding the implementation of the MOA, including plant-level variation in worker attitudes. Variables at each of these levels of analysis are statistically significant predictors of favorable attitudes towards MOA and towards the team concept, indicating the value of such a cross-level analysis for understanding worker attitudes towards workplace transformation. We also analyze plant-level differences in attitudinal outcomes and find that some of the variation is explained by factors that are not idiosyncratic to individual plants.

2002-09-04T16:29:44Z MacDuffie, John Paul Pil, Frits K. https://hdl.handle.net/1721.1/1623 2019-04-10T12:16:39Z 1996-01-01T00:00:00Z

From Fixed to Flexible: Automation and Work Organization Trends from the International Assembly Plant Survey MacDuffie, John Paul; Pil, Frits K. The paper is organized into seven sections. First, we define how we measure automation in the assembly plant study. Second, we describe the overall regional trends in the use of automation from 1989 to 1993/94. Third, we explore the patterns of usage for robotic equipment across regions, emphasizing in particular the significant move by many companies towards the replacement of fixed or "hard" automation with flexible, programmable automation. Fourth, we explore departmental differences in the use of automation, emphasizing the evolution in thinking about the most effective way to automate various tasks in the body, paint, and assembly shops. While automation levels continue to rise in the body and paint shops, a different approach is being taken in the assembly department, the most labor-intensive area of the plant and yet the place where total automation solutions have been most elusive. Fifth, we describe how trends in the adoption of flexible automation are linked to the adoption of flexible work practices that seek to boost worker involvement in production-related problem-solving. Sixth, we summarize what we have learned about the performance implications (in terms of productivity and quality) of the automation trends described here. The seventh section presents our conclusions from these analyses and our speculation about future trends in automotive manufacturing automation.

1996-01-01T00:00:00Z MacDuffie, John Paul Pil, Frits K. https://hdl.handle.net/1721.1/1622 2019-04-12T08:09:21Z 2002-09-04T15:26:23Z

Performance Findings of the International Assembly Plant Study MacDuffie, John Paul; Pil, Frits K. We recently undertook the largest in-depth evaluation ever of automobile assembly plants around the world. In the Second Round of the International Assembly Plant Study, we surveyed 88 automobile assembly plants representing 20 companies and as many nations (see figure 1 for a distribution of plants by region of the world). We collected data on a host of different issues ranging from production processes and design choices to labor relations and organization of work. Here we report on our performance findings. In addition to reporting on our most recent findings, reflecting performance in 1993/4, we will compare those with the performance findings of the First Round of the International Assembly Plant Study which took place in 19892. European plants have shown the greatest percentage improvement in productivity of any region, but Korean plants, and plants in North America have also shown considerable gain. Given the minimal improvement in the average performance of Japanese-owned assembly plants in Japan, the performance gap between US and Japanese plants has closed significantly, although a differential still remains. In the area of quality, the European and US producers have shown tremendous improvement, and are approaching Japanese quality levels. However, our quality data only reflects vehicles sold in the United States, and as such, may overstate the average quality level of the European producers. The quality level of new entrant plants (particularly Korea) has not followed the world-wide trend in improvement in quality. One of our most important observations from this round is that there are tremendous performance differentials within each region of the world. This reflects different capabilities of companies operating in those regions. We are currently undertaking extensive analyses to understand the drivers of these intra-regional performance differences.

2002-09-04T15:26:23Z Lieberman, Marvin B. Demeester, Lieven Helper, Susan https://hdl.handle.net/1721.1/1621 2019-04-10T10:36:31Z 1996-02-06T00:00:00Z

The Empirical Determinants of Inventory Levels in High-Volume Manufacturing Lieberman, Marvin B.; Demeester, Lieven; Helper, Susan This study uses survey data on several hundred automotive suppliers in North America to evaluate the determinants of inventory levels in high-volume discrete parts manufacturing. We assess the magnitude of raw materials, work-in-process, and finished goods inventories, as well as production lot sizes and through-put times. Results are broadly consistent with the EOQ formula and related models of optimal inventory holding. Inventories are shown to be jointly determined by technological factors and managerial practices. Several categories of managerial practices are found to be important. Low inventories are linked to employee training and problem solving activities and frequent communication with customers. More unexpected findings show the absence of inventory differences between USowned and Japanese-owned plants operating in the United States. This suggests that Japanese transplant parts makers have not been completely successful in adapting Japanese manufacturing methods to the US environment.

1996-02-06T00:00:00Z Lieberman, Marvin B. Asaba, Shigeru https://hdl.handle.net/1721.1/1620 2019-04-12T08:09:21Z 1996-04-25T00:00:00Z

Inventory Reduction and Productivity Growth: A Comparison of Japanese and US Automotive Sectors Lieberman, Marvin B.; Asaba, Shigeru This study assesses the inventory and productivity performance of the Japanese and US automotive industries in recent decades. Within each country we distinguish between vehicle assemblers and parts suppliers. In Japan, assemblers and suppliers made dramatic inventory reductions and productivity gains, particularly during the 1970s. By comparison, we find an unbalanced pattern for the United States: American assembly plants have been streamlined, but parts suppliers have stagnated. In both countries our findings suggest a strong association between inventory reduction and productivity growth. Revised: June 30, 1996

1996-04-25T00:00:00Z Krishnan, Viswanathan https://hdl.handle.net/1721.1/1619 2019-04-10T12:16:41Z 2002-09-04T15:14:20Z

Indian Automotive Industry: Opportunities and Challenges Posed By Recent Developments Krishnan, Viswanathan The Indian automobile industry is currently experiencing an unprecedented boom in demand for all types of vehicles. This boom has been triggered primarily by two factors: (1) increase in disposable incomes and standards of living of middle class Indian families estimated to be as many as four million in number; and (2) the Indian government's liberalization measures such as relaxation of the foreign exchange and equity regulations, reduction of tariffs on imports, and banking liberalization that has fueled financing-driven purchases. Industry observers predict that passenger vehicle sales will triple in five years to about one million, and as the market grows and customer's purchasing abilities rise, there will be greater demand for higher-end models which currently constitute only a tiny fraction of the market. These trends have encouraged many multinational automakers from Japan, U. S. A., and Europe to enter the Indian market mainly through joint ventures with Indian firms. This paper presents an introduction to the key players in the Indian automotive industry, a summary of the recent developments, and an analysis of the opportunities and challenges facing the various players (Indian and multi-national assemblers and component makers) in the areas of product development, production, and distribution.

2002-09-04T15:14:20Z Kochan, Thomas A Lansbury, Russell D https://hdl.handle.net/1721.1/1618 2019-04-12T07:58:21Z 1996-06-01T00:00:00Z

Changing Employment Relations and Governance in the International Auto Industry Kochan, Thomas A; Lansbury, Russell D In recent years, considerable debate has surrounded the issue of whether a fundamental transformation of employment relations is underway in both the industrialised and industrialising countries. Comparative studies at the national or macro-level of employment relations have been conducted within both an OECD group of countries (see Locke et al 1995) and newly industrialising economies (see Verma et al 1995). To these have been added complementary studies at the industry-level: in steel, telecommunications, banking and automobile manufacturing. These studies have adopted a broader similar analytical framework that focus on five sets of employment practices or issues, as follows: (1) the way work is organised (2) the process of skills acquisition and development (3) the structures and processes of pay and compensation (4) staffing and employment security arrangements (5) enterprise governance and labour-management relations issues. The analytical framework adopted for these studies argues that employment practices are shaped by features of the external environment and the choices of firms, unions and governments, as well as by the broader institutional context at the industry and firm levels. The issue of enterprise governance occupies an ambiguous position in that it may be viewed both as a feature of the external environment (especially where governments have legislated for certain arrangements) as well as an element in employment relations practice.

1996-06-01T00:00:00Z Chu, Wujin Desai, Preyas S. https://hdl.handle.net/1721.1/1617 2019-04-12T08:09:23Z 1995-01-01T00:00:00Z

Channel Coordination Mechanisms for Customer Satisfaction Chu, Wujin; Desai, Preyas S. We consider two broad categories of incentives by which a manufacturer can motivate its retailers to provide high customer satisfaction: 1) manufacturer assistance that reduces the retailer's cost of providing customer satisfaction (CS assistance); and 2) customer satisfaction index (CSI) bonus. We show that if a retailer has a long-term orientation, CS assistance is a more effective coordination mechanism that induces the retailer to expend more effort at customer satisfaction. However if the retailer has a short-term orientation, CSI bonus is a more effective coordination mechanism. We then show that a long-term retailed is more valuable to a manufacturer than a short-term oriented one. Finally, we show that the use of CSI incentives results in greater profits for both the manufacturer and the retailer.

1995-01-01T00:00:00Z Harbour, Malcolm https://hdl.handle.net/1721.1/1616 2019-04-10T12:16:39Z 1995-06-01T00:00:00Z

Project Evolution, Activities and Research Summary Harbour, Malcolm Project Evolution, Activities and Research Summary Presented at the IMVP Annual Sponsors Meeting, June 1995

1995-06-01T00:00:00Z Rothenberg, Sandra Maxwell, James https://hdl.handle.net/1721.1/1615 2019-04-09T16:12:56Z 2002-09-03T20:41:46Z

Extending the Umbrella of Social Concern: Volvo's Strategic Approach to Environmental Management Rothenberg, Sandra; Maxwell, James The name Volvo is considered by many to be synonymous with safety. In recent years, the company has undertaken a coordinated effort to expand that image to improve environmental performance as a strong point for their products. This case details the motivation behind that effort, outlines the steps taken to improve Volvo's environmental management, and evaluates its success to date.

2002-09-03T20:41:46Z Freeman, Steven https://hdl.handle.net/1721.1/1614 2019-04-10T12:16:38Z 2002-09-03T20:33:12Z

Identity Maintenance and Adaptation: A Multilevel Analysis Of Response to Loss Freeman, Steven Similarities between individual and organizational response to loss are documented through literature analysis and case studies in the automobile industry. An identity maintenance and adaptation thesis is developed to explain this similarity and provide a logic for a stage theory of loss. Risk-seeking behavior under loss is also explained. Draft Date: July 28, 1996

2002-09-03T20:33:12Z Freeman, Steve https://hdl.handle.net/1721.1/1613 2019-04-12T08:09:21Z 2002-09-03T20:27:13Z

Organizational Loss Freeman, Steve Similarity between individual and organizational response to loss is documented through literature analysis and case studies in the automobile industry. An identity maintenance and adaptation thesis is developed to explain this similarity and provide a logic for a stage theory of loss. Risk-seeking behavior under loss is also explained. In this paper, I summarize the concept of (individual) response to loss, present auto industry data that provides support for this model at the organizational level, and explain why I think it holds at all social levels.

2002-09-03T20:27:13Z Freeman, Steven A. https://hdl.handle.net/1721.1/1612 2019-04-10T12:16:37Z 2002-09-03T20:23:50Z

Effects of Environmental Change On Executive Attention & Initiatives: Analysis of Auto Industry Letters To Shareholders 1963-1987 Freeman, Steven A. The ability of organizations to adapt to environmental change has been a central question of organization theory since the origins of the field, but fundamental theoretical confusion remains: Organizational scholars see widely divergent patterns, running the gamut from neo-classical economists who see efficient diffusion of adaptive practices to organizational ecologists who view organizations as unchanging even in the face of environmental change. These and several other apparently contradictory schools of thought -- contingency theory, problemistic search, threat ridigity, and strategic choice theories -- are supported by extensive bodies of theory and empirical findings. In this project I explore the possibility that contradictory findings may be reconciled by focus on the timing of response. The project, a three-decade study of the automobile industry in periods of both relative calm and severe environmental change, is motivated in part by McKinley's lament "of the static quality of research in this area," and his call "to move toward more dynamic models." (1993:6). I attempt to document the effect of severe environmental change upon various outcomes: executive attention and intention, presented here, and organizational actions and products, to be presented elsewhere. Draft Date: April 1, 1996

2002-09-03T20:23:50Z Fine, Charles H. Novak, Sharon (Economist) https://hdl.handle.net/1721.1/1611 2019-04-11T09:55:43Z 2002-09-03T20:16:01Z

Fitting Teams to the Task: Product Development Vs. Operations Improvement at Saturn and Nummi Fine, Charles H.; Novak, Sharon (Economist) In the automotive industry, Saturn and NUMMI are often touted as exemplars of successful implementation of manufacturing employee involvement. Building on data and extended on-site interviews, this paper explores the differences between the approaches taken at each plant and the relationship between worker involvement and plant performance. Based on this comparison, we offer a model to assess the fit between employee involvement activity emphasis (product development vs. operations improvement) and timescale of the involvement process.

2002-09-03T20:16:01Z Fine, Charles H. Novak, Sharon (Economist) https://hdl.handle.net/1721.1/1610 2019-04-12T16:33:46Z 2002-09-03T20:12:17Z

Culture Clash: The Corporate Socialization Process Meets Non-Congruent Organization Subcultures Fine, Charles H.; Novak, Sharon (Economist) The literature on organization socialization suggests characteristics associated with strong organization culture. Key among these is a socialization process that emphasizes well-defined roles, rules, routines, and values; reinforcement with intrinsic and extrinsic reward systems; and conditioning experiences. That literature also suggests that an organization exhibiting a strong culture and socialization process will likely elicit participant behavior that is highly congruent with the espoused values and objectives stated by the organization. This paper uses a case study of General Motors' Saturn Corporation to suggest an enrichment of this theory. We argue that Saturn fulfills all the requirements of a strong culture and socialization process yet we find patterns of behavior seemingly at odds with the espoused values and objectives articulated in the environment. Co-existing with and within the strong corporate culture at Saturn, we found work group subcultures whose socialization processes can be just as strong as those at the corporate level but whose values suggest individual behaviors that conflict with those espoused at the corporate level. These observations lead us to suggest a model of culture-influenced behavior that explicitly addresses the existence of distinct subgroup cultures. Interestingly, the workgroup subcultures that generated behaviors at odds with the outcomes desired at the corporate level were encouraged by exactly those reward systems designed by Saturn to reinforce the espoused values of consensus decision-making at the workgroup level. Such observations underscore the complexity and subtlety involved in designing coherent organization-wide cultures and reinforcing mechanisms.

2002-09-03T20:12:17Z Whitney, Daniel Peschard, Guillermo https://hdl.handle.net/1721.1/1609 2019-04-12T08:09:20Z 2002-09-03T19:49:58Z

Manufacturing Performance in Automotive Engine Plants Whitney, Daniel; Peschard, Guillermo In 1994, the International Motor Vehicle Program launched the Engine Plant Study with the goal of analyzing the drivers of performance in engine manufacturing. We have collected data from 18 plants worldwide and have found that there is a very large variation in performance across plants. Half of the variation seems to be attributable to factors that do not fall under the direct control of the plant such as the characteristics of the engine, the level of product variety, or the level of capacity utilization. Moreover, we found some statistically significant relations among workers, investment, and efficiency, which reinforces the idea that automotive companies should not put so much emphasis on labor productivity, and that these tradeoffs should be taken into account when making decisions about plant design. The results presented in this paper are preliminary. Please do not cite or quote. All comments and suggestions are greatly appreciated.

2002-09-03T19:49:58Z Dyer, Jeffrey H. Chu, Wujin https://hdl.handle.net/1721.1/1608 2019-04-12T08:09:23Z 1996-03-12T00:00:00Z

The Determinants of Interfirm Trust: Evidence from Supplier Automaker Relationships in the U.S., Japan and Korea Dyer, Jeffrey H.; Chu, Wujin The determinants of interfirm trust are examined in 453 supplier automaker relationships in the U.S., Japan, and Korea. The findings indicate high supplier trust emerges when (1) suppliers receive assistance from the automaker, (2) the automaker has a track record of maintaining a continuing (repeated) exchange relationship with the supplier. Although there were some differences across institutional environments, notably higher trust in Japan, the findings are robust across the three institutional environments. Indeed, in a sample of U.S. suppliers that worked with both U.S. and Japanese automakers in the United States, we found that Japanese automakers were more effective than U.S. automakers at building trusting relations with U.S. suppliers. Thus, firm level practices appear to be more important than the institutional environment in the development of interfirm trust. A central issue in the literature on strategic alliances and interfirm cooperation is how firms create trust and control opportunism, particularly when the transactors have made investments in transaction specific assets. Under these conditions, trust has been described as an important antecedent to interorganizational cooperation and economic efficiency (Sako, 1991; Smith, Carroll, and Ashford, 1995). In fact, recent research suggests that trust in supplier buyer relations may be an important source of competitive advantage because it: (1) lowers transaction costs and allows for greater flexibility to respond to changing market conditions (Dore, 1983; Sako, 1991; Barney & Hansen, 1995; Dyer, forthcoming), (2) facilitates investments in special purpose assets and technologies which enhance productivity (Asanuma, 1989; Lorenz, 1988; Dyer, 1994), and (3) leads to superior information sharing routines which improve coordination and joint efforts to minimize inefficiencies (Fruin, 1992; Clark & Fujimoto, 1991; Nishiguchi, 1994). Moreover, some scholars claim that national economic efficiency is highly correlated with the existence of a high trust institutional environment (North, 1990; Casson, 1991; Hill, 1995; Fukuyama, 1995). For example, Fukuyama (1995:7) argues that the economic success of a nation, "as well as its ability to compete, is conditioned by the level of trust inherent in the society." The findings from these, and other, studies have increased our attention on the important role of trust in economic exchanges. A natural response to these studies has been to exhort companies to build trust with their trading partners (Business Week, 1986, 1992) and to call for increased research on the role of trust in coordinating economic activity (Smith, Carroll, and Ashford, 1995). However, before an explicit strategy for developing trust can be developed, or considered feasible, the determinants of trust must be identified. Despite considerable academic and managerial interest in trust between trading partners, to date there has been little empirical research on the antecedents or determinants of interorganizational trust (i.e. between supplier buyer). Further, there has been little research on whether the determinants of trust differ in different institutional (i.e. country) environments. The purpose of this paper is to examine the determinants of supplier trust in a sample of supplier/automaker relationships in the United States, Japan, and Korea. Given the recent attention on the importance of trust in exchange relationships, an examination of the determinants of trust is, by itself, a valuable undertaking. However, due to the globalization of industries and a dramatic increase in international joint ventures, a study of the determinants of trust in different institutional environments is particularly valuable. Such a study is useful because it allows for an examination of those factors that are important determinants of trust both within, as well as across, countries. This paper has been accepted for presentation at the Academy of Management Meetings, Cincinnati, 1996.

1996-03-12T00:00:00Z Fujimoto, Takahiro Lee, Chunli Chen, Jin https://hdl.handle.net/1721.1/1607 2019-04-10T12:16:40Z 1996-06-09T00:00:00Z

Different Strategies of Localization in the Chinese Auto Industry: The Cases of Shanghai Volkswagen and Tianjin Daihatsu Fujimoto, Takahiro; Lee, Chunli; Chen, Jin Since it is impossible to discuss the diversity of Chinese economy and draw the overall picture of Chinese auto industry, this paper will focus on the character of China's car market, system of car manufacturing, and outline of localization policies. Based on the field surveys, the paper will compare and examine the differences in their localization strategies and production systems between Shanghai-VW and Tianjin Daihatsu. By doing so, we intend to establish a base for further research and survey on the future Chinese auto industry. Working Paper for the MIT 1996 IMVP Sponsors Meeting Sao Paulo, Brazil 9-12 June 1996

1996-06-09T00:00:00Z Fine, Charles H. https://hdl.handle.net/1721.1/1606 2019-04-12T08:09:23Z 1996-06-24T00:00:00Z

Industry Clockspeed and Competency Chain Design: An Introductory Essay Fine, Charles H. This paper introduces the notion of industry clockspeed to classify industries by an aspect of their dynamic characteristics. The clockspeed framework suggests a dynamic theory of the firm where the "inner core" competency of an organization is the ability to continually design and assemble of chains of competencies to deliver value to the marketplace. Appeared in proceedings of the 1996 Manufacturing and Service Operations Management Conference, Dartmouth College, Hanover, New Hampshire June 24-25, 1996, pp. TBA.

1996-06-24T00:00:00Z Appel Molot, Maureen Eden, Lorraine Husbands, Kaye https://hdl.handle.net/1721.1/1605 2019-04-12T08:09:22Z 1996-04-16T00:00:00Z

Competing in a Lean World: Responding to the Pressures of Free Trade and Lean Production Appel Molot, Maureen; Eden, Lorraine; Husbands, Kaye Much of the literature on free trade in North America as dealt with two issues: first, the details of the Canada-US Free Trade Agreement(CAFTA) and the North American Free Trade Agreement (NAFTA) and the processes through which they were negotiated, and second, their likely microeconomic, macroeconomic and social impacts. Similarly, work on the shift from mass production to lean production has dealt with the components of lean production and how firms are affected by the shift to just-in-time production, zero defect quality, simultaneous engineering, etc. A less studied topic has been how North American firms and industries will respond, and are responding, to the opportunities and threats represented by free trade. Similarly, little work has been done on how firms in North America are responding to the pressures and opportunities of lean production. What work has been done tends to focus on US multinationals, such as the Big Three auto assemblers, firms that already are diversified into the three NAFTA countries. Our work shifts this focus to look at auto parts suppliers -- firms who sell to the Big Three -- in Canada and Mexico. These firms tend to be smaller firms, domestic rather than foreign owned, and less engaged in trade or investment outside of their own country. As such, these firms face different opportunities and threats from regional integration than do US multinationals. In addition, auto parts suppliers tend to be reactive to the pressures, rather than initiators, of lean production techniques, as they respond to demands placed on them by downstream auto assemblers. Therefore this paper attempts to examine firm responses to the pressures of the 1990s (free trade and lean production) through a nontraditional lens; that is, not through the lens of the responses of veteran multinationals such as the Big Three US auto multinationals, but through the lens of the responses of their upstream smaller suppliers, in the host countries, Canada and Mexico. Presented in the Fri-C-24 session, "Integrating in a Regionalized World: Adding Cohesion to NAFTA and Beyond," at the annual convention of the International Studies Association, San Diego, April 16-21, 1996.

1996-04-16T00:00:00Z Young-Suk, Hyun https://hdl.handle.net/1721.1/1477 2019-04-12T08:09:31Z 2002-07-18T19:06:32Z

New Product Development Series: Daewoo Motor; From Joint Venture to Multi-Project Developer Young-Suk, Hyun

2002-07-18T19:06:32Z Fine, Charles https://hdl.handle.net/1721.1/1476 2019-04-12T08:09:31Z 2002-07-18T16:37:40Z

Power Diffusion in Automobile Supply Chains Fine, Charles No Abstract Provided

2002-07-18T16:37:40Z Chu, Wujin https://hdl.handle.net/1721.1/1475 2019-04-12T08:09:30Z 2002-07-18T16:34:36Z

Globalization of the Korean Automobile Industry Chu, Wujin No Abstract Provided

2002-07-18T16:34:36Z Kang, Jong-Yeol https://hdl.handle.net/1721.1/1474 2019-04-11T09:46:30Z 2002-07-18T16:30:11Z

The Production System of Korean Automobile Industry Kang, Jong-Yeol No Abstract Provided

2002-07-18T16:30:11Z Nobeoka, Kentaro Dyer, Jeffrey https://hdl.handle.net/1721.1/1473 2019-04-10T20:16:52Z 2002-07-18T16:27:08Z

The Influence of Customer Scope on Supplier Learning and Performance in the Japanese Automobile Industry Nobeoka, Kentaro; Dyer, Jeffrey Most studies on Japanese supplier-automaker relationships have focused on the nature of the dyadic inter-firm relationship and the performance of the assembler. We examine the relationship between a Japanese supplier's "customer scope strategy" (i.e. number of customers) and the supplier's performance. By analyzing data on 125 suppliers, we found that a supplier with broad automotive customer scope tends to be more profitable and is better off with less exclusive ties. This relationship held even after controlling for supplier size, product type, and the underlying competitiveness/efficiency of each supplier. We argue that a broad customer scope strategy Ieads to superior performance primarily due to learning opportunities. This finding highlights a key liability of vertical integration since integration of inputs often limits the ability of in-house divisions to access new customers. However, there is a limit to the advantages of a broad customer base, since sales to 'unrelated customers' (e.g., non-automotive) did not have a significant impact on performance. In short, there appear to be diminishing returns to customer scope as suppliers add 'dissimilar' customers with requirements farther from their core knowledge domain. Thus, these findings offer empirical support for the knowledge based view of the firm which suggests that the efficient boundaries of firms are driven by knowledge domains/considerations. Our findings also suggest that studies that focus only on the advantages of long-term cooperative relationships may be misleading if interpreted to mean that an exclusive supplier-assembler relationship is the optimal solution for the supplier.

2002-07-18T16:27:08Z Gupta, Saurabh Krishnan, Viswanathan https://hdl.handle.net/1721.1/1472 2019-04-11T09:46:29Z 2002-07-18T16:21:19Z

Product Family-Based Assembly Sequence Design Methodology Gupta, Saurabh; Krishnan, Viswanathan Efforts taken by manufacturing companies to meet the increasing demand for product variety often lead to a proliferation of subassemblies. In this paper, we show that careful design of product assembly sequence helps create generic subassemblies that reduce subassembly proliferation and the cost of offering product variety. This approach of designing the assembly sequence to maximize the benefit from commonality of components and assembly operations, referred to as product family-based assembly sequence design, is the focus of this paper. After introducing the approach with a simple example, we formalize the notion of generic subassemblies, and present an algorithmic approach to identify generic subassemblies. We illustrate the algorithm with an example from the literature of an assembly from industry, and provide computational test results of the complexity and benefits of product family-based assembly sequence design.

2002-07-18T16:21:19Z Chu, Wujin Dyer, Jeffrey https://hdl.handle.net/1721.1/1471 2019-04-10T19:36:59Z 1996-08-12T00:00:00Z

The Determinants and Economic Outcomes of Trust in Supplier-Buyer Relations Chu, Wujin; Dyer, Jeffrey In this paper we examine the antecedents and outcomes of supplier trust in 453 supplier-automaker relationships in the U.S., Japan and Korea. Our findings indicate that high supplier trust emerges when (1) automakers have developed assistance-giving routines to help suppliers improve, and (2) automakers maintain a continuing (repeated) exchange relationship with the supplier. We also found that trust reduces transaction costs and increases information sharing in supplier-buyer relationships. Moreover, the findings suggest that the economic value created for tmnsactors may be substantial as evidenced by the fact that the automaker with the least trusting supplier relations had five times the procurement costs and spent tice as much of its face-to-face interaction time with suppliers on ex ante contracting and ex post haggling when compared to the most trusted automakers. Thus, our findings suggest that trust in supplier-buyer relations can create economic value and may be an important source of competitive advantage.

1996-08-12T00:00:00Z Cho, Dong Sung Dyer, Jeffrey Chu, Wujin https://hdl.handle.net/1721.1/1470 2019-04-11T09:46:29Z 2002-07-18T16:07:21Z

Strategic Supplier Segmentation: The Next "Best Practice" In Supply Chain Management Cho, Dong Sung; Dyer, Jeffrey; Chu, Wujin No Abstract Provided

2002-07-18T16:07:21Z Asaba, Shigeru Lieberman, Marvin B. https://hdl.handle.net/1721.1/1469 2019-04-12T08:09:29Z 2002-07-18T15:57:26Z

Inventory Reduction and Productivity Growth: A Comparison of Japanese and US Automotive Sectors Asaba, Shigeru; Lieberman, Marvin B. This study asseses the inventory and productivity performance of the Japanese and US automotive industries in recent decades. Within each country we distinguish between vehicle assemblers and parts suppliers. In Japan, assemblers and suppliers made dramatic inventory reductions and productivity gains, particularly during the 1970s. By comparison, we find an unbalanced pattern for the United States: American assembly plants have been streamlined but parts suppliers have stagnated. In both countries our findings suggest a strong association between inventory reduction and productivity growth.

2002-07-18T15:57:26Z Sturgeon, Timothy Florida, Richard https://hdl.handle.net/1721.1/1468 2019-04-10T12:16:46Z 2002-07-18T15:47:31Z

Research Note: The Globalization of Automobile Production Sturgeon, Timothy; Florida, Richard No Abstract Provided

2002-07-18T15:47:31Z Lieberman, Marvin B. Demeester, Lieven https://hdl.handle.net/1721.1/1467 2019-04-12T08:09:29Z 2002-07-18T15:40:43Z

Inventory Reduction and Productivity Growth: Linkages in the Japanese Automotive Industry Lieberman, Marvin B.; Demeester, Lieven The literature on JIT production suggests a causal link between work-in-process inventory and manufacturing productivity. Such a connection has been described in numerous case studies but never tested statistically. This paper uses historical data for 52 Japanese automotive companies to evaluate the inventory-productivity relationship. We find that firms increased their productivity rank during periods of substantial inventory reduction. More detailed tests suggest that inventory reductions stimulated gains in productivity: on average, each 10% reduction in inventory led to about a 10% gain in labor productivity, with a lag of about one year. Such effects were more immediate for Toyota affiliates but undetectable for close suppliers of Nissan. These findings imply that inventory reduction served as an important driver of process improvement for many Japanese automotive companies, although some firms emphasized other methods.

2002-07-18T15:40:43Z Whitney, Daniel Peschard, Guillermo Artzner, Denis https://hdl.handle.net/1721.1/1466 2019-04-12T08:09:28Z 2002-07-18T15:31:43Z

Cost Performance of Automobile Engine Plants Whitney, Daniel; Peschard, Guillermo; Artzner, Denis This paper analyzes the basic performance of 27 automobile engine lines operated by 18 companies on three continents, based on questionnaire data gathered in the Spring and Fall of 1995. Engine plants differ from assembly plants in being very capital-intensive. Thus a traditional "hours/engine" metric of performance is inappropriate. Here a composite cost comprising labor and amortization of capital, accounting for downtime, is used to compare plant performance. We find that performance varies widely, even for similar engines. Cost drivers comprise number of workers, capital invested, and efficiency (fraction of scheduled time actually used for production). The drivers are in turn driven by external factors out of the plant?s control and internal factors that are under its control to some degree. We find that about half the variance in cost is due to the external factors, such as number of cylinders, utilization of scheduled time, and number of variants of engine made (the last loosely related to age of the engine family). Internal factors such as work in process inventory (strongly) and age of the workers (somewhat) drive cost. Downtime, the reverse of efficiency, is itself divided into scheduled and unscheduled downtime; the former is driven largely by number of variants while the latter is driven to some degree by the age of the family. The results of this study include a methodology to estimate the cost of variety. Statistical analyses are used to calculate the additional cost of machining blocks ($4.92 more per block, $15 million extra investment, 9 additional workers and -4.40 operating efficiency associated with one additional square root of number of variants). This methodology can be extended to create a cost of variety for an entire engine.

2002-07-18T15:31:43Z Scott, Gregory https://hdl.handle.net/1721.1/1465 2019-04-10T12:16:45Z 2002-07-18T15:25:21Z

Special Vehicle Operations: An Activity-Based Plan for Improving the Automotive Vehicle Development Process Scott, Gregory This brief paper considers the New Product Development (NPD) strategies and practices recently employed by the Ford Motor Company as a base for a substantial, near-term improvement in automotive vehicle development performance. The recognition of current industry "best practices" in lean design and manufacturing coupled with consumer desires for niche vehicles provides an opportunity to significantly reduce the time-to-market for new vehicle designs. This paper proposes that a Special Vehicle Operations plant be established as an ongoing facility to develop and manufacture technology demonstration vehicles for corporate research use and public sale. Such a facility, a manufacturing "proving ground" akin to vehicle test facilities, would support the more rapid introduction of advanced vehicle technologies by routinizing design experiments in a quasi-mass production setting. The expected result would be a steadier and more continuous introduction of advanced processes into mainstream products. The scheduling, technical, financial, and quality risks inherent to such introductions would be lessened as well. The research foundation of this paper is an International Motor Vehicle Program-sponsored report supervised by Professor Michael Cusumano of MIT on the NPD practices under implementation by the Ford Motor Company. Other primary source materials include articles on advanced product development initiatives taking place in the automobile industry.

2002-07-18T15:25:21Z Sako, Mari https://hdl.handle.net/1721.1/1464 2019-04-12T08:09:27Z 2002-07-18T15:21:13Z

Synergy between Direct and Representative Forms of Employee Voice: Evidence from the European Car Components Industry Sako, Mari This paper analyses the implications of combining direct and representative forms of worker participation for business performance. Direct participation refers to such things as quality control circles, continuous improvement teams and other problem-solving groups, while representatwe participation refers to joint consultation committees,including those between works councils and management. Using a 1994 survey of first-tier automotive parts plants in Europe, this paper finds evidence that better quality and information sharing result born having both forms of worker participation than having one or the other. The survey also shows that in the fist half of the 1990s, there has been a rapid diffusion of direct participation (together with a commitment to employment security) and a moderate diffusion of indirect participation mechanisms in the UK. While not ruling out legislation, the paper concludes by drawing implications of this finding for a further discussion of these practices through voluntary means.

2002-07-18T15:21:13Z Sako, Mari https://hdl.handle.net/1721.1/1463 2019-04-10T12:16:44Z 2002-07-18T15:14:42Z

Emergent Dualism in the UK Automotive Industry: Should we be Concerned? Sako, Mari Are car assembly plants which have adopted 'lean production' trading with 'lean' parts suppliers? Or are they using suppliers as buffers and as sources of low cost labour? This paper examines these questions empirically by using official statistics in the UK, US, Germany and Japan. In the UK, there is evidence of parallel reduction in inventories at suppliers and assemblers in the 1980s, but also of growing productivity and wage gaps between the two groups. It is argued that management, unions and policy-makers should all be concerned about this emergent dualism in the UK automotive industry, and that attention should be paid to the mechanisms for diffusing innovative practices from assemblers to suppliers.

2002-07-18T15:14:42Z Sako, Mari https://hdl.handle.net/1721.1/1462 2019-04-12T08:09:27Z 2002-07-18T15:08:41Z

Does Trust Improve Business Performance? Sako, Mari No Abstract Provided

2002-07-18T15:08:41Z Pilorusso, F. https://hdl.handle.net/1721.1/1461 2019-04-12T08:09:24Z 2002-07-18T14:57:52Z

Finding a Place in the Automotive Supplier Hierarchy In the Year 2000 and Beyond Pilorusso, F. The global automotive supplier industry is undergoing a major restructuring and consolidation. The defining characteristics of the industry in the year 2000 and beyond will be fewer suppliers at all levels of the supply chain, but especially among the ranks of direct suppliers to the motor vehicle manufacturers. Direct suppliers will consist primarily of systems integrators that are capable of designing, manufacturing and delivering complete modules to motor vehicle assembly plants. Many of the systems integrators will have global reach. Since there will be relatively few systems integrators, suppliers that do not become an integral part of a systems integrator must either carve out a position as an indirect supplier in the supplier hierarchy that evolves or leave the business. In order to remain part of the automotive supplier base in the long term all suppliers must decide where they will best fit in the supplier hierarchy and determine what they must do to survive the transition and position themselves to thrive after the restructuring and consolidation of the supply base is complete. In this paper the options available to Canadian suppliers and the strategies that some of them are following to position themselves in the year 2000 and beyond are explored. The objective of the research is to identify some of the elements of successful strategies for suppliers at various levels in the supplier hierarchy.

2002-07-18T14:57:52Z Kioke, Ami Maxwell, James Oye, Kenneth Rothenberg, Sandra Briscoe, Forrest https://hdl.handle.net/1721.1/1460 2019-04-10T12:16:41Z 2002-07-18T14:52:53Z

International Motor Vehicle Program: Environmental Practice Survey Results Kioke, Ami; Maxwell, James; Oye, Kenneth; Rothenberg, Sandra; Briscoe, Forrest

2002-07-18T14:52:53Z Okano, Hiroshi Bonzemba, Ekutu https://hdl.handle.net/1721.1/1459 2019-04-12T08:09:52Z 2002-07-18T14:48:32Z

Information Sharing Between Automakers and Suppliers in the Process of Target Cost Management Okano, Hiroshi; Bonzemba, Ekutu In order to survive in today's business environment characterized by strong competition, it is no longer enough to be an efficient company. The efficiency in the entire value chain of a company is necessary to satisfy today's demanding customer in term of quality-cost-time. One of the tools used by many Japanese companies since the 1960s to satisfy the quality-cost-time requirements is the proactive cost management approach, widely known as Target Cost Management (TCM). While many researches related to TCM have been conducted during this last decade, they are more focused on the TCM process of top companies in a value chain. The importance of suppliers' involvement into the TCM process of their customers is recognized, but it is still under-explored. In this paper, an attempt is made to explore how suppliers in the Japanese automobile industry contribute to the effectiveness of TCM process of the auto-makers through information sharing between the two parties.

2002-07-18T14:48:32Z Okano, Hiroshi https://hdl.handle.net/1721.1/1458 2019-04-09T19:03:34Z 2002-07-18T14:36:52Z

Transfering Target Excellence Overseas: Toward a Conceptual Framework of Global Target Cost Management Okano, Hiroshi Target cost management(TCM) has become a significant issue in off-shore bases of Japanese corporation in line with globalization of product development functions in recent years. This article, instead of discussing " whether it is transferable or not", discussions will mainly focus on the perspective "under what system shall the implementation of TCM activities be done effectively in carrying out joint developments and designing. The followings are discussions to review furtherance of global cooperation, the need to consider the shift from "transfer to overseas" to "overseas expansion" , overseas development of co-design, and also rules of TCM in categories of philosophy, principles, and implementation rules. Also, it includes a preparatory trial to establish a conceptual framework by focusing at the person responsible for TCM as a coordinator ( a "hinge"). In performing global cooperation of product development between a corporate headquarters in Japan and overseas bases, its success will depend on who takes charge of functions as a coordinator or a "hinge" . A product manager plays a key role as a hinge among local corporations, but a cost engineer also plays an important role. Whereas in Europeart and US corporations, the role of a hinge is assigned to an individual, under whose responsibility and authority the function of coordination is performed.

2002-07-18T14:36:52Z Beaudet, Alexandre Nishiguchi, Toshihiro https://hdl.handle.net/1721.1/1457 2019-04-12T07:58:20Z 2002-07-18T14:23:53Z

Self-Organization and Clustered Control in the Toyota Group: Lessons from the Aisin Fire Beaudet, Alexandre; Nishiguchi, Toshihiro Japanese supplier management practices have in past years attracted much attention in the US and Europe. Several aspects of these practices still remain relatively neglected, however, such as collaborative relationships between suppliers themselves. In this paper we argue that a recent incident involving Toyota and its supplier network reveals the importance of these relationships and their implications for firm competitiveness. We describe how Toyota suppliers effectively and rapidly organized a group-wide effort to restore production of a key brake-related part, whose supply was suddenly interrupted as a result of a fire at a supplier's plant. We conclude that this remarkable group-wide effort was a function of shared capabilities within Toyota's supplier network. These capabilities lead to effective responses to major crises like this one, and in normal times to decentralized and group-wide problemsolving permitting continuous improvements in firm and group performance, under the omnipresent yet largely invisible leadership of Toyota.

2002-07-18T14:23:53Z Maxwell, James Rothenberg, Sandra Briscoe, Forrest Marcus, Alfred https://hdl.handle.net/1721.1/1456 2019-04-11T09:46:37Z 2002-07-18T14:14:41Z

Green Schemes: Corporate Environmental Strategies and their Implementation Maxwell, James; Rothenberg, Sandra; Briscoe, Forrest; Marcus, Alfred

2002-07-18T14:14:41Z MacDuffie, John Paul Helper, Susan https://hdl.handle.net/1721.1/1455 2019-04-12T08:09:32Z 2002-07-18T14:11:18Z

Creating Lean Suppliers: Diffusing Lean Production Through the Supply Chain MacDuffie, John Paul; Helper, Susan Honda of America has developed a comprehensive approach to teaching the principles of lean production to its suppliers. The centerpiece of these efforts is a program called BP (for "Best process", "Best Performance", "Bs Practice"), in which a crossfunctional team of personel born Honda and the supplier work intensively for week or even months on narrowly-targeted improvement projects in the supplier's plant. BP has been quite successfid in enhancing supplier performance; suppliers participating in the program in 1994 average productivity gains of 50% on lines reengineered by BP. However, Honda found there was high variation in the extent to which suppliers were able to transfer the lessons taught beyond the line or plant where the BP intervention occurred. We explore the reasons for this variation touching on how the BP process interacts with the broader relationship between customer and supplier, organizational learning, technology transfer, and the transplantation of Japanese management practices to the U.S. The case studies we present of three of Honda's U.S. suppliers illustrate the dynamics of the learning process and the complex relationship that emerged between "teacher" and "student". We found that achieving self sufficiency with the lean production techniques taught by BP is more likely when the supplier has a moderate degree of identification with and dependency on the customer. If these are too high the supplier will be tempted to continue to rely on the customer for assistance; if they are too low, the learning relationship may break down. It appears that Honda has achieved the most supplier self reliance with larger U.S.-owned companies, who have an identity as strong, competent actors, and thus try to reduce dependence on Honda by mastering the new knowledge quickly. Yet these larger suppliers may be less responsive to Honda's needs that small-to-medium suppliers whose capabilities can be boosted through Honda's supplier development activities.

2002-07-18T14:11:18Z Lieberman, Marvin B. Chacar, Aya https://hdl.handle.net/1721.1/1454 2019-04-12T08:16:44Z 1997-01-23T00:00:00Z

Measuring the Distribution of Returns Among Stakeholders: Method and Application to US and Japanese Auto Companies Lieberman, Marvin B.; Chacar, Aya No Abstract Provided

1997-01-23T00:00:00Z Daechang, Lee https://hdl.handle.net/1721.1/1453 2019-04-12T08:09:29Z 2002-07-18T13:58:33Z

Korean Automotive Industry in Transition Daechang, Lee Korean automotive industry drew world's attention as it grew to be the 5th largest producing country in two decades as a later comer. Now it faces a transitory period as domestic mmket growth drops to less than 5% despite more rapidly increasing overcapacity and it has to cope with greater competition pressure in both domestic and overseas markets. Change in domestic market directs Korean manufacturers in two ways: to develop more of larger cars and various types of vehicles like RVS to meet customers' preferences and to raise their competitiveness in price and quality to survive unprecedented power struggle among new and incumbent players. It also has to pay more heed to social voices. Energy waste, air pollution, and traffic congestion are getting more chronic in Korea. To alleviate these problems Korea imposes the heaviest taxes on automobiles and gasoline among major automobile producing countries. Entering the '90s, exports of Korean-made cars rose rapidly for several reasons. Among these were redoubled efforts to control quality, expansion of after sales service networks, production of a wider range of export models, and more aggressive marketing efforts. Perhaps most importantly of all, however, the rapid rise was also due to aggressive efforts by Korean manufacturers to explore overseas markets. Korean-made cars are now being exported to a greater number of countries than ever as a result, especially to developing countries. The volume of exports did in fact rise substantially as export markets became diversified, but the growth rates between regions has varied far too greatly. This indicates that Korean manufacturers have not yet secured competitiveness overseas. The rise in exports of Korean-made cars was greatly influenced by external factors such as the appreciation of the Japanese Yen. The trade imbalance of Korean auto industry drew attention from advanced countries. After successive reductions, the tariff rates on imported cars in Korea now stand at 8%, which is an even lower level than in the EU. In the wake of the trade negotiations between Korea and the US in 1995, foreign auto manufacturers were given wider access to the Korean market. Korean auto manufacturers have been aggressive in recent years in expanding their overseas operations. Each manufacturer is pursuing different strategies to advance overseas to build local production operations.

2002-07-18T13:58:33Z Kochan, Thomas Rubinstein, Saul https://hdl.handle.net/1721.1/1452 2019-04-10T12:16:41Z 2002-07-11T19:13:42Z

Toward a Stakeholder Theory of the Firm: The Case of the Saturn Partnership Kochan, Thomas; Rubinstein, Saul This paper seeks to engage the organization theory community in contemporary debates over the role of the corporation in American society by building a stakeholder theory of the firm. We develop a set of normative premises and positivist propositions derived from these debates, from a combination of organization and industrial relations theories, and by using data from the Saturn Corporation. Three questions are posed for a stakeholder theory: (1) Under what conditions is a stakeholder firm likely to emerge, (2) what are the critical determinants of performance in a stakeholder firm, and (3) what will determine the sustainability and diffusion of this organizational form in the American environment? The history, design features, and dynamics of the labormanagement partnership at Saturn are used to illustrate and interpret a specific case of employees as stakeholders. Saturn's governance structure, work organization, and internal processes fit the characteristics of a stakeholder firm. Employees establish themselves as critical stakeholders by using their knowledge to improve organizational performance. The local union likewise contributes to firm performance by organizing workers into a dense social network that contributes to problem solving, conflict resolution, and quality improvement. However, the legal and political environment in which the firm operates produces considerable uncertainty over the sustainability and diffusion of Saturn's features in particular, and the stakeholder organizational form in general. Additional hypotheses and research questions are proposed to continue theory building around the more general model of the stakeholder firm. Organization theorists are encouraged to take up the analysis of stakeholder models and thereby contribute to the contemporary and future debates over the role the corporation in American society.

2002-07-11T19:13:42Z Kochan, Thomas Rubinstein, Saul https://hdl.handle.net/1721.1/1451 2019-04-12T08:09:26Z 2002-07-11T16:19:58Z

Saturn, The GM/UAW Partnership: The Impact of Co-Management and Joint Governance on Firm and Local Union Performance Kochan, Thomas; Rubinstein, Saul Designed and implemented as a partnership between GM and the UAW, Saturn breaks new ground in firm governance, management and industrial relations. Through detailed study of Saturn's partnership arrangements we have found that the local management and union leaders have not only implemented the contractual joint governance institutions which involve labor in business strategy, product development, supplier and retailer selection, and manufacturing policy, but have also created a system of co-management which gives hundreds of jointly selected union operations management. members the In order to responsibilities of understand the impact of the involvement of union members as management, we analyzed the relationship between the behaviors of both represented and non-represented middle managers, the dynanics of their individual union-management partnership relations, differences in their patterns of communication and coordination, and Saturn's quality performance. We also examined each partner's use of time to explore the balancing of social and economic tasks between represented and nonrepresented partners. These data were combined with analyses of the tensions within the union between its traditional role in membership representation, and its new role in management and governance. Finally, we raise questions regarding the learning from and diffusion of Saturn to the rest of the GM and the UAW organizations. The key findings from our work to date are summarized in Figure 1 and our research methods, detailed findings, the implications we draw from these results, and suggested next steps for our research are discussed in more detail in the following sections.

2002-07-11T16:19:58Z Rozwadowski, Helen Helper, Susan Clifford, Patricia Gorman https://hdl.handle.net/1721.1/1450 2019-04-12T07:58:21Z 2002-07-11T16:14:01Z

Can Green Be Lean? Rozwadowski, Helen; Helper, Susan; Clifford, Patricia Gorman Introduction: In the past, efforts to improve the environment almost always led to increased production costs. In fact, some economists have attributed a significant part of the slowdown in productivity growth of the 1970s to increased attention to environmental issues (Gray, 1987; Conrad and Morrison, 1989). This result is in accordance with neoclassical economic theory, which holds that firms maximize profits subject to given constraints. If a constraint (such as keeping emissions below a certain level) is added, then profits cannot be higher than they were before. However, in practice there are numerous examples of firms which have both reduced their emissions and increased their profits and/or their efficiency. (See for example Porter and van der Linde, 1995.) Concomitantly, a central tenet of strategic management theory is that firms need to focus on only a few distinctive competencies if they wish to be profitable (Hamel and Prahalad, 1990). However, Florida (forthcoming) has found a significant number of firms that are leaders in adopting new forms of both production management and environmental management. This paper explores these paradoxes: how firms can be both profitable and environmentally conscious, how they can be both innovators in manufacturing and leaders in emissions reduction. The contribution of this paper is to present detailed examples of conditions under which these types of superior performance go together, and to begin to develop a theoretical framework which explains the examples. The theoretical framework is based on Nathan Rosenberg's (1976) concept of 'focussing devices'. His argument is that because managers are only boundedly rational, they cannot explore all possible sources of efficiency improvement at once. Instead, they develop worldviews which give them ideas about where might be fruitful places to look. In Rosenberg?s example, nineteenth-century US firms developed many labor-saving innovations because of the salience of high labor costs in this country. Many of these practices increased efficiency and profitability in Europe as well, and were adopted there; however, they were not thought of there because labor costs did not stand out so clearly as a key element of costs. This paper argues that the recent diffusion of the principles behind the Toyota Production System gives managers a new focusing device, one which allows them to be simultaneously 'lean' and 'green'.

2002-07-11T16:14:01Z Helper, Susan Hochfelder, David https://hdl.handle.net/1721.1/1449 2019-04-11T09:46:37Z 2002-07-11T16:08:31Z

Suppliers and Product Development In the Early American Automobile Industry Helper, Susan; Hochfelder, David

2002-07-11T16:08:31Z Sako, Mari Helper, Susan https://hdl.handle.net/1721.1/1448 2019-04-09T15:43:07Z 2002-07-11T16:04:50Z

Determinants of Trust in Supplier Relations: Evidence from the Automotive Industry in Japan and the United States Sako, Mari; Helper, Susan This study examines the determinants of inter-organizational trust by using survey data from just over 1000 suppliers in the automotive industry. We define trust and derive a model of its determinants from transaction cost economics, game theory and sociological exchange theory. Regression analysis results indicate that determinants of trust are different from determinants of opportunism. US-Japanese differences are found in three respects: (i) the way trust is conceptualised by suppliers is richer in Japan than in the US; (ii) the level of trust is higher in Japan than in the US; and (iii) the factors facilitating trust and those attenuating opportunism differ in the US and Japan.

2002-07-11T16:04:50Z Helper, Susan https://hdl.handle.net/1721.1/1447 2019-04-11T09:46:35Z 2002-07-11T16:00:46Z

Complementary and Cost Reduction: Evidence from the Auto Supply Industry Helper, Susan Over the last 20 years, the success of Japanese manufacturing firms has brought renewed attention to the importance of cost reduction on existing products as a source of productivity growth. This paper uses survey data and field interviews from the auto supply industry to explore the determinants of average-cost reduction for a sample of 171 plants in the United States and Canada between 1988 and 1992. The main result is that the determinants of cost reduction differ markedly between firms which had employee involvement programs in 1988 and firms that did not. The two groups of firms achieved equal amounts of cost reduction. but did so in very different ways. Firms with employee involvement saw their costs fall more if they also had "voice" relationships with customers and workers. Firms without such involvement gained no cost-reduction benefit fkom these programs; instead, their cost reduction success was largely a fiction of increases in volume. These results provide support for Milgrom and Roberts's concept that certain production practices exhibit complementary.

2002-07-11T16:00:46Z Allen, Michael Rozwadowski, Helen Hochfelder, David Henderson, William Clifford, Patricia Helper, Susan https://hdl.handle.net/1721.1/1446 2019-04-12T08:09:24Z 1997-03-01T00:00:00Z

Pollution Prevention Assistance in the Automotive Supply Chain: A Study of Northeast Ohio Allen, Michael; Rozwadowski, Helen; Hochfelder, David; Henderson, William; Clifford, Patricia; Helper, Susan No Abstract Provided, see paper for executive summary

1997-03-01T00:00:00Z Helper, Susan https://hdl.handle.net/1721.1/1445 2019-04-10T12:16:45Z 2002-07-11T13:50:35Z

Supplier Relations and Adoption of New Technology: Results of Survey Research in the Auto Industry Helper, Susan Using an original data source, this paper investigates the circumstances under which fmns adopt computer numerical control (cNC), an important type of flexible automation which can significantly increase production product variety and quality. The paper shows that arms'-length supplier/customer relationships are a significant barrier to CNC adoption, even where CNC would improve efficiency. For firms where CNC would be efficient. but who currently receive little commitment through their customers,an increase in contract length of one year would increase the adoption rate by 30%. These results have theoretical implications in two areas. First the paper integrates questions of appropriability into the technical change literature by adding supplier relations as a determinant of technology adoption. Second, the paper extends transaction-cost analysis, by relaxing the assumption that agents' private maximizing behavior will always produce organizational forms that may social efficiency.

2002-07-11T13:50:35Z Gakenheimer, Ralph https://hdl.handle.net/1721.1/1444 2019-04-09T18:34:23Z 2002-07-11T13:39:03Z

Mobility Issues in the Developing World Gakenheimer, Ralph

2002-07-11T13:39:03Z Freeman, Steve https://hdl.handle.net/1721.1/1443 2019-04-10T12:16:44Z 2002-07-10T20:06:02Z

Effects of Environmental Change on Executive Attention: Analysis of Auto Industry Letters to Shareholders 1963-1987 Freeman, Steve Introduction: Much debate in management theory concerns the degree to which organizations can adapt to environmental change and the role of leadership in facilitating such change. Many firms today face the situation Americam auto makers faced in the 1970s: an unexpectedly strong challenge from an unexpected corner of the globe. Japanese preeminence in design and manufacturing, and sociopolitical changes that threaten their viability - the Arab oil embargoes which quadrupled the price of gasoline. In the wake of globalization and unstable interdependencies, past competencies can quickly become obsolete and a firm's position in market and society can abruptly deteriorate. In the aftermath of these events in the late 1970s and early 80s, the continued viability of American automating was in doubt, and the industry came under a barrage of criticism from all corners, politicians left (Brown 1980, Commoner 1980) and right (Clark 1980, Stockman 1986), academics (Ackoff 1978), public interest groups (Nader 1965, 1970, 1973), financial analysts (Keller 1989), journalists (Halberstam 1985, Yates 1983) and even from within (DeLorean 1988) for a failure to foresee and respond effectively to these events. But did they fail? And, if so, why? A study of attention can illuminate the first step or lack thereof in organizational adaptation, but also complicates the notion of adaptation implicit in the debate. In this project, I develop a construct of executive attention which I use to analyze change in the auto industry over three decades, including periods of relative environmental calm and upheaval. The principal findings which obtain and which I discuss in this article are: 1. A long lag between the central event of the period - the emergence of Japanese preeminence in design and manufacturing and executive attention (an extremely long lag in the case of GM). 2. A pattern of executive attention that is difficult to reconcile as part of a rigorous attempt to maximize profit. Rather, it can be can be more readily understood as part of an attempt to address concerns from relevant publics. 3. Which publics are relevant is better understood in terms of organizational identity and executive appropriateness than economic rationality, managerial vision, or socioeconomic constraints.

2002-07-10T20:06:02Z Dyer, Jeffrey https://hdl.handle.net/1721.1/1442 2019-04-12T08:09:32Z 2002-07-10T19:23:17Z

Effective Interfirm Collaboration: How Firms Minimize Transaction Costs and Maximize Transaction Value Dyer, Jeffrey This study of automotive transaction relationships in the U.S.A. and Japan offers data which indicate that transaction costs do not necessarily increase with an increase in relationship-specific investments. We empirically examine the conditions under which transactors can simultaneously achieve the twin benefits of high asset specificity and low transaction costs. This is possible because the different safeguards which can be employed to control opportunism have different set-up costs and result in different transaction costs over different time horizons. We examine in detail the practices of Japanese firms which result in effective interfirm collaboration.

2002-07-10T19:23:17Z Dyer, Jeffrey Nobeoka, Kentaro https://hdl.handle.net/1721.1/1441 2019-04-11T09:46:36Z 2002-07-10T18:30:00Z

Creating and Managing a High Performance Knowledge-Sharing Network: The Toyota Case Dyer, Jeffrey; Nobeoka, Kentaro This study offers a detailed case study of how Toyota facilitates interorganizational knowledge transfers among within its production network. In particular, we identiify and examine six key institutionalized knowledge sharing routines developed by Toyota and its suppliers. By examining how Toyota facilitates knowledge-sharing with, and among, suppliers we are able to identify the key variables which influence interorganizational and network learning. Moreover, since Toyota is early in the process of creating a learning network with U.S. suppliers, we explore the creation and evolution of Toyota?s new learning "network" in the United States. We attempt to extrapolate from Toyota?s experience by developing a series of propositions regarding creating and designing a high performance knowledge-sharing network. We believe our analysis provides at least a partial explanation for why Toyota has been able to maintain its productivity and quality advantages long after the principles of the Toyota Production system have diffised throughout the industry (Knowledge Sharing, Interorganizational Learning, Competitive Advantage).

2002-07-10T18:30:00Z Dyer, Jeffrey Chu, Wujin https://hdl.handle.net/1721.1/1440 2019-04-11T09:46:34Z 1997-12-17T00:00:00Z

The Determinants of Inter-Firm trust in Supplier-Automaker Relationships In the U.S., Japan, and Korea Dyer, Jeffrey; Chu, Wujin In this paper we examine the determinants of supplier trust in the buyer in 453supplier-automaker relationships in the U. S., Japan, and Korea. We define trust and derive a model of its determinants drawing upon (1) an embeddedness (relationship-based) perspective, (2) a processbased perspective, and an (3) economic (hostage-based) perspective. Our findings indicate strong support for the process-based perspective in all countries; embeddedness (e.g., length of relationship) was only important as a determinant of trust in Japan, and the hostage-based variable (stock ownership) was not important in any country. More specifically, we found that high supplier trust emerges when (1) automakers have developed supplier-selection routines that favor incumbents and which maintain a continuing (repeated) exchange relationship with the supplier, and (2) automakers have developed assistance-giving routines to help suppliers solve problems and improve. Although there were some differences across institutional environments, notably higher trust in Japan, the findings are quite robust across the institutional environments. Indeed, in a sample of U.S. suppliers selling to both U.S. and Japanese automakers in the United States, we found that Japanese automakers were more effective than U.S. automakers at building trusting relations with U.S. suppliers. The ability of Japanese automakers to build high levels of trust with suppliers in the United States suggests that the institutional environment may be less important than firm-level practices in the production of inter-organizational trust.

1997-12-17T00:00:00Z Dyer, Jeffrey Chu, Wujin https://hdl.handle.net/1721.1/1439 2019-04-10T12:16:46Z 1997-11-03T00:00:00Z

The Economic Value of Trust in Supplier-Buyer Relationships Dyer, Jeffrey; Chu, Wujin In this paper we investigate the relationship between supplier trust in the buyer and transaction costs, information sharing, and re[ation-specific investments in a sample of 453 supplier automaker exchange relationships in the U. S., Japan, and Korea. Our findings indicate that trust reduces transaction costs and increases information sharing in supplier-buyer relationships. Moreover, the findings suggest that the economic value created for transactors, in terms of lower transaction costs, may be substantial. In particular, we found that the automaker with the least trusting supplier relations spent twice as much of its face-to-face interaction time with suppliers on ex ante contracting and ex post haggling when compared to the most trusted automakers. This translated into procurement (transaction) costs which were as much as five times higher for the least trusted automaker compared to the most trusted automaker. Finally, we argue that trust is unique as a governance mechanism because it not only minimizes transaction costs, but also has a mutually causal relationship with other behaviors (i.e. information sharing. buyer technical assistance) that create value in the exchange relationship. Other governance mechanisms (e. g.. contracts. financial hostages) are necessary costs incurred to prevent opportunistic behavior but do not create value beyond transaction cost minimization. Thus, our findings indicate that trust in supplier-buyer relations can create economic value and may be an important source of competitive advantage.

1997-11-03T00:00:00Z Chu, Wujin Dyer, Jeffrey Cho, Dong Sung https://hdl.handle.net/1721.1/1438 2019-04-12T08:09:28Z 1996-12-01T00:00:00Z

Strategic Supplier Segmentation: A model for managing suppliers in the 21st Century Chu, Wujin; Dyer, Jeffrey; Cho, Dong Sung This study of 453 supplier-automaker relationships in the U. S., Japan, and Korea examines the extent to which automakers manage their "arms-length" and "partner" suppliers differently. The findings indicate that U.S. automakers have historically managed all of their suppliers in an arms-length fhshion, Korean automakers have managed all suppliers as partners, and Japanese automakers have segmented their suppliers and have somewhat different relationships depending on the nature of the component. Only Japanese automakers (Toyota and Nissan) have strategically segmented suppliers in such a way as to realize the benefits of both the arms-length and partner models of supplier management. We argue that firms should think strategically about supplier management, and perhaps should not have a "one size fits all" strategy for supplier management.

1996-12-01T00:00:00Z Artzner, Denis Whitney, Daniel https://hdl.handle.net/1721.1/1437 2019-04-10T12:16:34Z 2002-07-10T14:59:53Z

Description Of Procedures In Automotive Engine Plants (ABSTRACT) Artzner, Denis; Whitney, Daniel ABSTRACT 1. Human resources - For automakers, the total cost of paying average workers is around $40000 per year (mean value); the numbers range from $30000 to $60000 (except for a Central European facility where it is much lower). On average, direct pay is three times the amount of benefits. In general, worker qualification does not affect the benefits policy within an automobile engine plant. - Overall, the average age of workers in engine plants is slightly above 40 years old. There is no difference by geographic region. In older engine plants, workers do tend to be older. Annual turnover rates are around 5%. Mean values for unionization levels are 7990 for hourly workers, 45% for salaried workers. It is common for production workers to be assigned different tasks; the engine plants where the union contract restricts the kind of activities are located in North America. - A majority of engine plants surveyed have work teams, and they are deployed in all departments. In most cases, work teams were introduced about five years ago. Sometimes, work team leaders are not elected. The average training received is 41 hours per employee per year. Fluctuations in the values are large. European facilities tend to have more training. Respondents felt that inspecting one's work, being well trained, designing one?s workplace and having suggestions accepted are factors which can help workers make high quality engines. Workers and management interact via meetings and surveys. There are usually fewer than 2 suggestions per worker per year. The more training people get, the more likely they are to make suggestions. 2. Logistics - Delivery of parts to the assembly department of engine plants: the Japanese-owned facilities get a much higher fraction of these components delivered more than once per shift, compared to other plants. There are more instances of "just-in-time" practice for castings and parts delivered to the machining departments. - Engine and vehicle assembly plants: for half of our sample, the average delivery pace of finished engines to the car assembly plant is once per shift or more frequently. Engine plants which deliver engines very frequently no matter how far their customer vehicle assembly plants are located. The average value of the average delivery size of finished engines is 273 units (the results are very variable, but in general, the more engines are produced per unit time, the larger the batch size). For one out of two engine plants, the average transit time to the customer vehicle assembly plant is less than half a day; however, there are many cases where finished engines are delivered to vehicle assembly plants located very far away. 3. Maintenance policies - Total Productive Maintenance (TPM) is in place in all of the plants surveyed, but this is quite recent (implementation started between 1990 and 1994). In two out of three cases, it is based on a centralized planning and information system. All of the key maintenance items mentioned in the questionnaire are taken care of by all engine plants; however, the frequency at which maintenance is done varies a lot from plant to plant (average: one and a half times per week). ProceduresinEnginePlants(ABSTRACT) MIT /IMVP --Oct.1997 Page2 - Throughout all departments of engine plants, breakdowns are caused on average mostly by mechanical problems and then by electrical problems although there is a lot of variation between plants. For those types of failures, there is no link with any downtime statistics. Hydraulic failures occur more frequently in those plants which are older. 4. Production technologies - Several of the engine plants surveyed are currently undergoing major changes. For a new engine variant, most engine plants can deal with the adaptation by using much more than half of the existing machines. In engine plants, a ?minor upgrade? can stop lines anywhere between less than 24 hours to more than a week. Currently, assembly lines in engine plants can handle more flexibility than machining lines. When different engines are built in sequence, the pattern used most often is 1-1- 1-2-2-2 (batch sizes range from 6 to 100?s of engines). - Current and future design and acquisition processes for equipment do not differ. There is one policy for the whole plant. For a majority of engine plants, the methodology is as follows: the automobile company takes care of defining the requirements, it has a large influence (along with an affiliate or sister company sometimes) for the planning process, but the design and building of equipment is done by an outside equipment or system supplier. Two areas where answers differ a lot concern the system integration and the actual installation of equipment in engine plants: in some cases, the automobile company is in charge, while in other cases, an outside firm does the job. 5. Quality - Engines made in European plants have more complaints per 1000 than the North American or Japanese ones (caution: we have rather few of these data points from non-European plants). Engine quality as measured by complaints per 1000 units after engines are delivered: 3-month quality data are quite good predictors of 12-month data. - In almost all engine plants, Statistical Process Control (SPC) data are collected and displayed at the line or work station. Engine plants also get back some engine performance and warranty data. - In most instances, communication of engine design information is done via fax or hardcopy. Sometimes, CAD systems (mostly 2-D) are used to exchange design dat~ however, whether CAD systems are used or not, is not a function of the age of the engine plant or of the lines. In a majority of cases, the exchange of information between the plant and the engine design department take place weekly, with actual design changes happening monthly. On average, half of the design changes are due to the engine engineering department, in order to improve the engine and to fix design or performance problems. Other causes for design changes are the meeting market needs, fixing production problems, and responding to the evolution of regulations. - All plants conduct hot testing of engines; in two facilities, only some of the engines are hottested. The test can last from 45 seconds to 18 minutes. The (few) all-aluminum engines of our survey are among those which undergo longer periods of hot testing. Less than 7% of the engines fail the hot test the first time. By looking simultaneously at the engine quality data and at the hot testing results, we did not find any correlation: hot test duration does not uncover problems which cause quality complaints 3 or 12 months after the engines are delivered to customers. Proceduresin EnginePlants(ABSTRACT) MIT /IMVP --Oct.1997 Page 3 - According toourrespondents, production technologies thatcan becritical formanufacturing high quality automotive engines concern machining operations more than the sub-assembly and final dressing ofengines; interestingly, these technologies are most often supplied by outside vendors. In addition, organizational factors are seen as much more effective than automatization, in order to produce high-quality engines. 6. Information systems - Information systems are in place in engine plants, and they are used quite extensively. - While centralized systems tend to be used mainly for planning purposes, non-centralized computer systems can help compile some statistical data and tell about equipment problems. Rarely are information systems actually used to give work assignments to employees. 7. Accounting procedures and investment decisions - For a series of recent major installations of equipment in engine plants, it took around two years between the approval of the plan and the moment when the first part was produced, and from there on, an extra three to six months for full production levels to be reached. - The top financial indicator used by car firms for measuring the "performance" of engine plants is clearly variance from budget. Some financial ratios like return on equity or return on assets are not used at all. For non-financial indicators, the quality of engines is most important, followed by safety and environment concerns, logistical issues, and labor productivity. - Product quality and internal rate of return are the two most important factors involved in engine plant investment decisions. - Most common practice is that indirect cost allocation uses standard or actual labor hours. - Activity-based costing systems were in place in 30% of the engine plants surveyed ( 1995 data). 8. Plant improvement efforts - The persons surveyed do not think that more automation will be the key for progress in engine manufacturing. For the future, a strong desire is the ability to improve the flexibility of the factory, of the machines, and of the material flow. Interestingly, the respondents most interested by flexibility improvements are based in engine plants which currently deal with rather low levels of engine variety. - On the list of factors which can help improve operations in engine plants, is the need to establish better contacts with people in the engine design department and with the suppliers of machinery. Also, being able to build more engines in less space is an important goal for several respondents; actually, those most interested by this issue are from engine plants where the utilization of space is already more efficient than on average.

2002-07-10T14:59:53Z Wu, Anne Chow, Chee Shields, Michael https://hdl.handle.net/1721.1/1436 2019-04-10T12:16:34Z 2002-07-10T14:43:16Z

The Importance of National Culture in the Design of and Preference for Management Controls for Multi-National Operations Wu, Anne; Chow, Chee; Shields, Michael This study investigates the effects of national culture on firms' design of and employees' preference for management controls. Data for testing two hypotheses are collected from 159 Taiwanese managers working in six each of Japanese, Taiwanese, and U.S.owned, size-matched, computers/electronics firms in Taiwan. Overall, the results are consistent with national culture affecting these firms' design of and employees' preference for seven management controls, though there also are anomalies. These findings are combined with prior research for identifying desirable improvements in research design and method, variable measurement and selection, and, most important, the theoretical foundation for culture-based research on management controls.

2002-07-10T14:43:16Z Shields, Michael Chow, Chee Kato, Yutaka https://hdl.handle.net/1721.1/1435 2019-04-10T19:22:02Z 2002-07-10T14:34:40Z

National Culture and the Preference for Management Controls: An exploratory Study of the Firm- Labor Market Interface Shields, Michael; Chow, Chee; Kato, Yutaka Abstract This study uses Hofstede's taxonomy of work-related national cultural dimensions to analyze preferences for specific management controls at the interface between the organization and the external labor market. Four experiments were conducted with samples of last-semester Japanese and U.S. MBA students. Most of the results did not provide support for the four hypotheses. These findings used as the basis for suggesting potential directions for future empirical refinements and theory construction.

2002-07-10T14:34:40Z Yoke, Chan Chow, Chee Shields, Michael https://hdl.handle.net/1721.1/1434 2019-04-09T16:34:41Z 2002-07-10T14:22:31Z

The Effects of Management Controls and National Culture on Manufacturing Performance: an Experimental Investigation Yoke, Chan; Chow, Chee; Shields, Michael The increasing dominance of Asian manufacturing firms in the global economy has raised an important issue: whether these firms' superior manufacturing performance is caused by their management control systems, the national culture of their employees, or the interaction of these two factors. This experimental study provides a direct test of the effects of national culture and management control system on manufacturing performance. The dimension of national culture studied was individualism ( vs collectivism )because this work-related attribute has been noted as a major difference between Asian and Western cultures. In turn, the focus on cultural individualism motivated a study of two aspects of management controls: work flow interdependence and pay interdependence. The results are consistent with cultural individualism and management controls having independent, but not interactive, effects on manufacturing performance. The potential implications of these findings and suggestions for future research are discussed.

2002-07-10T14:22:31Z Chow, Chee Shields, Michael Nakagawa, Yu Kato, Yutaka https://hdl.handle.net/1721.1/1433 2019-04-11T09:46:35Z 1990-10-10T00:00:00Z

Management and Accounting Practices in the U.S. and Japan: Comparative Survey Findings and Research Implications Chow, Chee; Shields, Michael; Nakagawa, Yu; Kato, Yutaka In recent years, the success of Japanese firms in the global market has prompted efforts to understand the sources of their competitive advantage. It has been suggested that one such source is the Japanese firms' management accounting systems, and a number of articles have claimed that important differences do exist between U.S. and Japanese firms in this area. However, the claims have tended to be supported by anecdotal rather than systematic, evidence. The objective of this article is to contribute further insights into similarities and differences between U.S. and Japanese firms' management accounting practice. Exhaustive search of published surveys in the U.S. and Japanese literatures (much of which is in Japanese) provided the basis for U.S. - Japan comparisons on six aspects of management accounting practices. In turn, these comparisons were used for deriving implications for future research. Two major limitations of extant research and, thus, directions for future research are identified. First, future research needs to go beyond the simple use or non-use of techniques to investigate more detailed aspects of technique use. Second, since management accounting is only one component of a firm's total management system, attention also needs to be devoted to the organization's context, process, and goals of a firm's management accoutning practices.

1990-10-10T00:00:00Z Anderson, Shannon W. Lanen, William https://hdl.handle.net/1721.1/1432 2019-04-10T12:16:37Z 2002-07-10T14:02:08Z

Economic Transition, Strategy and the Evolution of Management Accounting Practices: The Case of India Anderson, Shannon W.; Lanen, William Liberalization of the Indian economy in 199I increased the intensity of international competition and changed the internal information needs of Indian managers. This paper explores the evolution of a broad range of management accounting practices in 14 firms using a contingency theory framework. Differences in management accounting practices in 1996 are examined in relation to firms' experience and exposure to world markets prior to liberalization and as a function of contemporaneous differences in competitive strategy. We find evidence of changes associated with shifts in the external environment.

2002-07-10T14:02:08Z Anderson, Martin https://hdl.handle.net/1721.1/1431 2019-04-10T12:16:36Z 1995-10-01T00:00:00Z

Electronic New Media and the auto industry: New Dimension in "Market facing" Systems Anderson, Martin Revolutions often start well before the first shots are fired. Deep social trends develop over time, waiting for some precipitating event, a new set of leaders, or a technology that allows organizations to behave differently. The precipitating event usually catches our attention, or seems surprising --- but the direction of the revolution is typically evident well beforehand, This manuscript is about converging trends in three major industries , autos, information technologies, and 'media' (including advertising and the broader media) trends that almost certainly presage a revolution in "market facing" systems that link these industries to their markets, and to each other. Each industry has created revolutions in the past, and has demonstrated the 'early warning' phenomenon. The first 'auto-mobiles' were invented about a century before the Ford and Daimlers commonly thought to be the early prototypes of today's cars. Early steam engines on oxcarts really started the revolution that seemed to take off with the Ford assembly line decades later. "Computers" were invented decades ago. And while they were 'revolutionary' in the 1940?s and 1950?s, those developments were merely early hints at the significant upheaval we now experience In computation and communications industries. The broadcast industries, seeded in the last half of the 1800?s through telegraphy and telephony, have revolutionized the way the modem world communicates, develops culture, and conducts commerce. Advertising bonds the media industry to the broadcast media industries. While it is impossible to predict the future, it is possible --- when one steps back from the daily battle for the bottom line --- to reflect on social trends that are waiting for precipitating events. Then, when Precipitating events really do happen; it is easier to understand at least the basic directions the revolution will take. As of the mid- 1990?s we see merging trends in three major industries:

1995-10-01T00:00:00Z https://hdl.handle.net/1721.1/1429 2019-04-10T12:16:35Z 2002-06-26T16:35:28Z

Will the European Industry ever build a 3 Day car?

2002-06-26T16:35:28Z Takeishi, Akira https://hdl.handle.net/1721.1/1425 2019-04-10T20:23:39Z 1999-07-23T00:00:00Z

Knowledge Partitioning in the Inter-firm Dividsion of Labor: the case of Automotive product Development Takeishi, Akira This paper demonstrates the importance of knowledge for effective management of outsourcing. Drawing on an empirical study on automakers? management of supplier involvement in product development in Japan, this paper shows that the level of own knowledge is critical for automakers to gain better outcome from engineering outsourcing. While the actual tasks of designing and manufacturing components could be outsourced, automakers should retain the relevant knowledge to obtain better quality of component design. Knowledge partitioning should be distinguished from task partitioning. Furthermore, the results indicate that effective pattern of knowledge partitioning differs by the nature of component development project in terms of technological newness. For regular projects, it is more important for automakers to have a higher level of architectural knowledge (how to coordinate various components for a vehicle) than of component-specific knowledge, which is supposed to be provided by suppliers. However, when the project involves new technology for the supplier, it is important for the automaker to have a higher level of component-specific knowledge to solve unexplored engineering problems together with the supplier. In innovative projects effective knowledge partitioning seems to demand some overlaps between an automaker and a supplier, rather than efficient and clear-cut boundaries. This paper further reveals that some automakers manage knowledge better than others by combining various organizational mechanisms, including career development policies, extensive documentation of technological information, internal training programs, and incentive schemes. Difficulty of implementing those mechanisms in a consistent and complementary manner seems to explain why there is a significant variance among automakers in knowledge level.

1999-07-23T00:00:00Z Takeishi, Akira https://hdl.handle.net/1721.1/1423 2019-04-12T08:09:19Z 1999-11-01T00:00:00Z

Bridging Inter- and Intra-firm Boundaries: Management of Supplier Involvement in Automobile Product Development Takeishi, Akira Outsourcing has become an important strategy for many firms. Yet, firms need to compete with their competitors who also outsource and may share the same suppliers. This article explores how a firm could outperform others in managing the division of labor with a supplier in product development. Drawing on the empirical data collected from the Japanese auto industry, this paper shows that an automaker needs capabilities to coordinate various activities both externally with a supplier and internally within its own organization, in order to gain better component development performance. Overall, the results imply that outsourcing does not work effectively without extensive internal effort.

1999-11-01T00:00:00Z Fujimoto, Taka Sugiyama, Yasuo https://hdl.handle.net/1721.1/1421 2019-04-10T12:16:35Z 1999-10-05T00:00:00Z

Product Development for Country Specific Vehicles in Asia: Fujimoto, Taka; Sugiyama, Yasuo Purpose ? To explore dynamic aspects of strategy in global product development ? To describe product design and organizational choices for Asian Car, particularly for Indonesia

1999-10-05T00:00:00Z Sturgeon, Tim https://hdl.handle.net/1721.1/1419 2019-04-10T07:21:35Z 1999-10-05T00:00:00Z

IMVP?s Globalization Research Program Sturgeon, Tim No Abstract Provided

1999-10-05T00:00:00Z Shimokawa, Koichi https://hdl.handle.net/1721.1/1417 2019-04-10T12:16:34Z 2002-06-26T16:10:34Z

Reorganization of the Global Automobile Industry and Structural Change of the Automobile Component Industry Shimokawa, Koichi INTRODUCTION: The world automobile industry is witnessing an unprecedented scale of change in the 1990?s. The end of Cold War structure, the rapid spread of the information revolution and the international economic globalization. The wave of globalization has directly affected the international automobile industry and has accelerated the global reorganization of it. First, the impact of globalization emerged in the financial and securities industries, which experienced the Big Bang in the 1980?s. Then it spread to the fast growing information and communication?s industries. Now the automobile industry is no exception. The automobile industry was, especially in advanced countries, primarily a national industry, no matter how internationalized its business content developed. It has been a representation of a nation?s manufacturing industry serving the best interests of the nation. Take trade disputes concerning automobiles for instance. It has been discussed as being related to the arguments of what should be the correct way to handle automobile trade, the balance of trade, and the job security for a countries labor force. The automobile industry also has a wide range of related industries such as the component or material industries, on which it has had a great impact at an entire national level. In this sense, the industry was the national industry. Because of this background, automobile manufacturers in advanced nations constructed their management strategies that centered on their own country. And their overseas strategies tightly connected to the domestic strategies and had a strong tendency to compliment them, no matter how heavily they depended on their overseas business and exports. Therefore car manufacturers? competitiveness was closely related to how superior their competitiveness is in their domestic markets.

2002-06-26T16:10:34Z Warburton, Max Sako, Mari https://hdl.handle.net/1721.1/1415 2019-04-12T08:09:20Z 1999-12-01T00:00:00Z

MIT International Motor Vehicle Programme Modularization and Outsorcing Project Interim of European Research Team (Revised) Warburton, Max; Sako, Mari Revised paper from October 6, 1999

1999-12-01T00:00:00Z Sako, Mari Murray, Fiona https://hdl.handle.net/1721.1/1413 2019-04-11T09:46:35Z 1999-06-09T00:00:00Z

Modular strategies in cars and computers Sako, Mari; Murray, Fiona Summary The focus of many European and American companies is currently on "modular" strategies in product design and production. A modular product has individual elements which are designed independently but function together as a seamless whole. In this article Mari Sako and Fiona Murray compare the experiences of the computer industry - where modularity was consumer led - with that of the automobile industry where the impetus for adoption has come from cost and complexity reduction. They discuss the strategic choice between integration and modularisation for original equipment manufacturers, note the changing role of suppliers, and conclude by describing recent research which highlights regional differences. The automobile industry has been the source of major strategic thinking throughout this century. Ford's moving assembly line, for example, first standardised work, while Taiichi Ohno's Toyota Production System and, more recently, lean production techniques were important managerial innovations. The design, manufacture and distribution of the automobile capture the key strategic challenges associated with a complex and technologically sophisticated product with the result that companies in other sectors have sought inspiration and lessons. Now the focus of many European and American manufacturers is on so-called modular strategies in product design and production. This article assesses the success of this new development and its value as a strategic weapon in the search for new sources of competitive advantage in manufacturing industries.

1999-06-09T00:00:00Z Warburton, Max Sako, Mari https://hdl.handle.net/1721.1/1409 2019-04-12T08:09:20Z 1999-10-06T00:00:00Z

MIT International Motor Vehicle Programme Modularization and Outsourcing Project Preliminary Report of European Research Team Warburton, Max; Sako, Mari No Abstract Provided

1999-10-06T00:00:00Z Warburton, Max Helper, Susan MacDuffie, John Paul Pil, Frits Sako, Mari Takeishi, Akira https://hdl.handle.net/1721.1/1407 2019-04-12T08:09:25Z 2002-06-26T14:24:13Z

Modularization and Outsourcing: Implications for the Future of Automotive Assembly "Management of the Extended Enterprise" Research Team Warburton, Max; Helper, Susan; MacDuffie, John Paul; Pil, Frits; Sako, Mari; Takeishi, Akira Overview Twice in this century, automotive assembly has been the setting for dramatic innovations in production organization that have transformed the basis of competition in the auto industry. Henry Ford's mass production and Taiichi Ohno's lean production are both systems of interrelated practices held together by a core "logic" - powerful ideas shaping how we think about "making things". As we approach the second century of the car, there are important debates about whether, once again, auto manufacturing will strike off in a new direction -- commonly described as "modular assembly." Our IMVP research team aims to contribute to this debate through the research project described below. Deverticalization through the outsourcing of production from the large automakers to their suppliers has been a dominant trend during the 1990s, including the transfer of component design responsibility as well as manufacturing. A related trend is the effort to develop more modular designs, i.e. self-contained functional units with standardized interfaces that can serve as building blocks for a variety of different products. These trends have been visible in other industries for some time, but they are relatively recent in the auto industry; as a result, the implications are still not clear. In industries such as consumer electronics and personal computers, the ultimate consequence of extensive outsourcing is often that the final customer, i.e. the Original Equipment Manufacturer (OEM), manufactures very little in-house. When extensive outsourcing is combined with more modular designs, the outcome can be a dramatic reshaping of the value chain. We want to investigate the extent of these trends in the auto industry and evaluate the implications for the role of automotive assembly and the structure of the entire industry, by doing case studies of specific modules.2

2002-06-26T14:24:13Z Kirchain, Randy https://hdl.handle.net/1721.1/1405 2019-04-10T12:16:43Z 2002-06-26T14:18:12Z

Fleet-Based LCA: Comparative CO2 Emission Burden of Aluminum and Steel Fleets Kirchain, Randy No Abstract Provided

2002-06-26T14:18:12Z Sturgeon, Tim https://hdl.handle.net/1721.1/1403 2019-04-10T12:16:43Z 1999-09-28T00:00:00Z

International Motor Vehicle Program Globalization Research Program Fiscal Year 1999 Summary Report Sturgeon, Tim Program Summary: One of the key drivers of change in the automotive industry can be summed up by the word "globalization." Globalization is driving industry consolidation, the expanding role of suppliers, underbody commonalization, product diversification, and efforts to reduce minimum scale economies in final assembly plants. Automakers, along with their largest suppliers, are in the process of creating enterprise and supply-base structures that function at a truly global scale. Because globalization connects activities occurring in an extremely diverse set of locations, it is an inherently complex process, one that cannot call for a static set of strategic responses or result in a single societal or competitive outcome. Accordingly, IMVP's Globalization Research Program (GRP) is relying on a series on inter-linked research projects that seek to understand the process of globalization in terms if corporate strategy, industry organization, and social impacts for both "home" and "host" countries.

1999-09-28T00:00:00Z Lung, Yannick Freyssenet, Michel https://hdl.handle.net/1721.1/1401 2019-04-12T08:09:19Z 1999-01-01T00:00:00Z

Between Globalization and Regionalization: What is the Future of the Automobile Industry? Lung, Yannick; Freyssenet, Michel Introduction: If the challenge facing automobile producers in the 1980s was how to change their industrial model, that of the 1990s has been how to reorganize internationally. Of course, internationalization has been one of the industry's characteristics since its inception, and international trade has accounted for a higher proportion of sales than it does today at several periods in the past (Bardou, Chanaron, Fridenson and Laux, 1982). Globalization has neither been achieved nor is it irreversible and unavoidable. Yet the current tendency towards internationalization differs from previous phases, and in particular, it differs from the situation in the 1970s and 1980s analyzed by GERPISA in one of its initial research projects (Gerpisa, 1984). In part, this is due to the global context of deregulation and the emergence of new growth poles, but above all because of its origins. The clash between the industrial models used by companies and between national growth models seen over the last twenty years has destabilized the wage-labour nexus and, in turn, the markets of many mature countries, including countries that have benefited from this confrontation. Companies can no longer rely upon markets that are relatively predictable in terms of the level and type of demand....

1999-01-01T00:00:00Z Boyer, Robert Freyssenet, Michel https://hdl.handle.net/1721.1/1399 2019-04-10T12:16:43Z 1999-10-05T00:00:00Z

Different Paths for Automakers at the Turn of the Century Boyer, Robert; Freyssenet, Michel Introduction: Are lean production and globalization the necessary conditions for future success of car industry firms, as affirm numerous commentators and experts, or is it possible to discern several paths possible? To answer this question, it would be fitting to look back upon the history of automobile firms since the beginning of the 1970s.

1999-10-05T00:00:00Z Field, Frank https://hdl.handle.net/1721.1/1397 2019-04-12T08:09:25Z 2002-06-26T14:02:22Z

Recycling Infrastructure Stability: Transfer Pricing Anaysis Field, Frank

2002-06-26T14:02:22Z Steinemann, Patrick https://hdl.handle.net/1721.1/1395 2019-04-10T12:16:42Z 1999-11-14T00:00:00Z

R&D Strategies for New Automotive Technologies: Insight from fuel cells Steinemann, Patrick ABSTRACT This study analyzes how the automobile industry is pursuing the development of fuel cells as a new propulsion technology for automobiles. Fuel cells represent a fundamentally different powertrain technology that competes technically with the internal combustion engine, which has traditionally been a core competence of automobile manufacturers. The emergence of fuel cells provides a threat to automakers? competence in internal combustion engines, but also presents an opportunity for establishing a competitive position and gaining competence in a new technology. The study gives insights into strategic issues that automakers face through fundamentally new technologies. The key questions analyzed in this study are how new technology such as fuel cells can be identified by automakers, how automakers develop and acquire competence in such a technology that has not been part of the traditional technology portfolio of automakers, and how automakers can keep control over this new technology and derive value as it moves closer to commercialization. Fuel cells were historically first applied in the aerospace industry, and have only been developed for use in automobiles after a technological breakthrough resulted in significant increase of power density and cost reduction. Automakers with ties to the aerospace industry were among the first to recognize the potential of the breakthrough technology, and such early identification gave these companies a lead in R&D investment and patenting. This example of technology dynamics of fuel cells supports the importance of early identification of new technologies and links to related industries as a source of such technologies for the automobile industry. The next phase of fuel cell developments is characterized by an attempt of automakers to acquire competence in fuel cells. Three different organizational approaches are observed among the automakers: internal development of fuel cells, collaborative research, and a wait-and-see approach that favors licensing of the technology. The design of collaborative research alliances, such as the partnership between DaimlerChrysler, Ford and Ballard, suggests that technology that is new to the automobile industry needs to be viewed from a systems perspective. While early research activity focused on the fuel cell only, the establishment of an alliance provided an effective way of combining technical competence on all components of a fuel cell powertrain system. The research alliance also broadens the coverage of intellectual property with patents, but this also limits the control of automakers over the technology. The last part of the report discusses implications for automakers regarding the ability to control and derive value in the case the technology is successfully commercialized. It is argued that new suppliers are likely to participate in a future market for fuel cell powertrains, according to their technical competence and role as early participants in the development of fuel cell components. Automakers can keep control over the technology and participate in a potential market for fuel cells by becoming system integrators, and through continued development of key fuel cell components.

1999-11-14T00:00:00Z Fixson, Sebastian https://hdl.handle.net/1721.1/1393 2019-04-12T08:09:25Z 1999-10-07T00:00:00Z

Economics of Materials Competition -Effects of Product Architecture Changes and the Level of Analysis Fixson, Sebastian Introduction Current state of materials competition In the past materials competition has often compared similar designs made from different materials. Problem This standard approach often results in a part-by-part comparison omits specific advantages of various materials, both primary and secondary Research questions: What is necessary to allow a more comprehensive analysis of the competitive position of alternative materials? What role can changes of the product architecture play? How to think about future design/materials choices?

1999-10-07T00:00:00Z Elicia, Maine https://hdl.handle.net/1721.1/1391 2019-04-10T12:16:42Z 2002-06-25T16:23:20Z

R&D Selection Methods: for New Materials and Processes Elicia, Maine

2002-06-25T16:23:20Z Field, Frank Kirchain, Randolph Clark, Joel https://hdl.handle.net/1721.1/1389 2019-04-12T08:09:25Z 2002-06-25T16:15:04Z

Life Cycle Analysis and Temporal Distributions of Emissions: Limitations of Product-Centered Emission Analyses Field, Frank; Kirchain, Randolph; Clark, Joel Abstract Although the product-centered focus of life cycle analysis has been one of its strengths, this analytical perspective embeds assumptions that may conflict with the realities of the problems to which it is applied. This paper demonstrates, through a series of mathematical derivations, that all the products in use, rather than a single product, frequently should be the appropriate unit of analysis. Such a "fleet-centered" approach supplies a richer perspective on the comparative emissions burdens generated by alternative products, as well as eliminating certain simplifying assumptions imposed upon the analyst by a product-centered approach. A sample numerical case, examining the comparative emissions of steel-intensive and aluminum intensive automobiles, is presented to contrast the results of the two approaches. The fleet-centered analysis shows that the "crossover time" (i.e., the time required before the fuel economy benefits of the lighter aluminum vehicle offset the energy-intensity of the processes used to manufacture the aluminum in the first place) can be dramatically longer than that predicted by conventional life cycle analyses. The fleet-centered perspective explicitly introduces the notion of time as a critical element of comparative life cycle analyses and raises important questions about the role of the analyst in selecting the appropriate time horizon for analysis. Moreover, with the introduction of time as an appropriate dimension to life cycle analysis, the influences of effects distributed over time can be more naturally and consistently treated.

2002-06-25T16:15:04Z MacDuffie, John Paul Chu, Wujin Pil, Frits Nobeoka, Kentaro https://hdl.handle.net/1721.1/751 2019-04-10T16:32:02Z 2002-06-19T20:05:19Z

Project Report to International Motor Vehicle Program (IMVP), M.I.T.International Assembly Plant Study MacDuffie, John Paul; Chu, Wujin; Pil, Frits; Nobeoka, Kentaro INTRODUCTION: During the past fiscal year, we have worked closely with a number of researchers from around the world to develop a questionnaire that will provide us with a fuller understanding of the value-chain issues that surround current automobile manufacturing. While centered on the assembly plant, we are also looking at the interface between the plants and their suppliers, as well as the plants and their distributors. We will summarize these efforts, as well as our timetable for data collection. In this writeup we are focusing only on the work undertaken in relation to assembly plants. We have also done extensive work in the Modularization/Outsourcing project that is helping to pave the way for some of the assembly plant work; please refer to the separate report on that project.

2002-06-19T20:05:19Z Chu, Wujin MacDuffie, John Nobeoka, Kentaro Pil, Frits https://hdl.handle.net/1721.1/747 2019-04-12T08:09:26Z 2002-06-13T13:22:12Z

International Assembly Plant Study: " Management of the Extended Enterprise" Research Team Chu, Wujin; MacDuffie, John; Nobeoka, Kentaro; Pil, Frits During the past fiscal year, we have worked closely with a number of researchers from around the world to develop a questionnaire that will provide us with a fuller understanding of the value-chain issues that surround current automobile manufacturing. While centered on the assembly plant, we are also looking at the interface between the plants and their suppliers, as well as the plants and their distributors. We will summarize these efforts, as well as our timetable for data collection. In this writeup we are focusing only on the work undertaken in relation to assembly plants. We have also done extensive work in the Modularization/Outsourcing project that is helping to pave the way for some of the assembly plant work; please refer to the separate report on that project.

2002-06-13T13:22:12Z Volpato, Giuseppe Stocchetti, Andrea https://hdl.handle.net/1721.1/745 2019-04-10T12:16:43Z 2002-06-12T20:36:57Z

Managing Information Flows in Supplier-Customer Relationships: Issues, Methods and Emerging Problems Volpato, Giuseppe; Stocchetti, Andrea

2002-06-12T20:36:57Z Volpato, Giuseppe https://hdl.handle.net/1721.1/743 2019-04-12T08:09:26Z 2002-06-12T20:33:32Z

Fiat Auto: Toward Globalization Volpato, Giuseppe

2002-06-12T20:33:32Z Takeishi, Akira https://hdl.handle.net/1721.1/741 2019-04-10T12:16:37Z 2001-02-28T00:00:00Z

Modularization in the Auto Industry: Interlinked Multiple Hierarchies of Product, Production, and Supplier Systems Takeishi, Akira This paper analyzes the modularization in the world auto industry. The modularization in the industry has involved architectural changes in product, production, and supplier systems with each region (Japan, Europe and the U.S.A.) emphasizing different purposes and aspects. As an attempt to understand such multi-faceted, complex processes coherently, this paper proposes a conceptual framework that sees development / production activities as interlinked, multiple hierarchies of products, processes, and inter-firm boundaries. With this framework, drawing on case studies and questionnaire survey data, the paper examines the on-going processes of modularization in the industry. It is argued that tensions exist among the three hierarchies, and such tensions may lead to further changes in product, production and supplier-system architectures in the auto industry, in a dynamic and path-dependent manner.

2001-02-28T00:00:00Z Takeishi, Akira https://hdl.handle.net/1721.1/739 2019-04-10T12:16:37Z 2001-03-31T00:00:00Z

Knowledge Partitioning in the Inter-firm Division of Labor: the case of Automotive Product Development Takeishi, Akira Drawing on an empirical study on automakers? management of supplier involvement in product development in Japan, this paper shows that when the design of a component is outsourced to a supplier, how much and what automakers know about the component matters for them to gain a better outcome. While the actual tasks of designing and manufacturing components could be outsourced, automakers should retain the relevant knowledge to obtain better component design quality. The paper argues that knowledge partitioning should be distinguished from task partitioning, and provides some implications for the knowledge-based theory of the firm. The results indicate that effective pattern of knowledge partitioning differs by the nature of component development project in terms of technological newness. For regular projects, it is more important for the automaker to have a higher level of architectural knowledge (how to coordinate various components for a vehicle) than of component-specific knowledge, which is supposed to be provided by the supplier. However, when the project involves new technology for the supplier, it is important for the automaker to have a higher level of component-specific knowledge to solve unexplored engineering problems together with the supplier. In innovative projects, effective knowledge partitioning seems to demand some overlap between an automaker and a supplier, rather than efficient and clear-cut boundaries, which are optimal for regular projects. Such ?fluid? nature of knowledge boundaries contingent on the project types poses a challenge for firms seeking both technological leadership as well as efficiency in established products. Developing and maintaining knowledge about an outsourced component is by no means easy. When the actual design tasks are outsourced, automakers miss substantial opportunities to gain relevant knowledge through learning by doing. Also, obtained knowledge may be diffused among competitors through shared suppliers. Another problem for automakers is that component-specific knowledge is important for only limited cases (innovative projects). Even worse, component-specific knowledge has a trade-off relationship with architectural knowledge. Such an inherent dilemma of managing knowledge, however, may provide some automakers with the opportunity to achieve sustainable competitive advantage. Additional analysis shows that one automaker managed both types of knowledge better than others in a manner that deals effectively with the dilemma. Its organizational mechanisms include career development policies, extensive documentation of technological information, internal training programs, and incentive schemes. The difficulty in implementing those mechanisms in a consistent and complementary manner seems to explain why there was a significant variance among automakers in knowledge level, even when the actual tasks were carried out by a shared supplier. (414 words)

2001-03-31T00:00:00Z Sako, Mari https://hdl.handle.net/1721.1/737 2019-04-12T07:58:21Z 2002-06-12T20:03:30Z

Auto Industry Sako, Mari Peter Drucker christened the automobile industry ?the industry of industries? in 1946, and there are good enduring reasons for this label. In short, it has been at the forefront of thinking about how things are made and how we work. Automobile manufacturing is the world?s largest manufacturing activity, with just over 50 million new vehicles produced each year. One in every seven people is employed through the industry, either directly or indirectly. The indirect part is due to the need for a retail distribution network and the generation of demand for intermediate inputs (in the form of components and raw materials like steel and rubber). Governments have therefore looked to the industry as a major opportunity for national economic development, international trade and foreign direct investment. The automobile is also the second largest expenditure item for households after housing. Many own a car, visit dealers, and are aware of the variety that exist in car models and options that reflect consumer preferences and lifestyles. The technological advances associated with the automobile transformed our idea about mobility, and will continue to do so with the advent of telematics and the Internet. Throughout the twentieth century, the automobile industry has also been a significant source of innovative management thinking, transforming ideas about how best to make things. In the 1910s, Ford Motor Company?s moving assembly line and standardised work replaced craft production. In the 1970s, Taiichi Ohno?s Toyota Production System, and later, lean production techniques, were important managerial innovations with significance well beyond the automobile sector. This entry will start by tracking the fundamental changes in manufacturing methods that enabled the automobile industry to become a massive generator of economic wealth. It will then provide explanations of changes in industry structure over time. Lastly, the future shape of the industry will be discussed with reference to telematics, e-business, and other technological developments.

2002-06-12T20:03:30Z Muffatto, Moreno Roveda, Marco https://hdl.handle.net/1721.1/735 2019-04-12T07:58:21Z 1999-12-08T00:00:00Z

Developing product platforms:analysis of the development process Muffatto, Moreno; Roveda, Marco Several authors have highlighted the importance of companies enhancing their new product development process through a multiproduct strategy. This means planning the development of a product family upon a platform, which allows shorter lead times in developing new derivative models. The platform itself has proven to be more flexible when given a modular architecture, so this shifts attention onto evaluating product platform architecture. This paper analyses three industrial cases in order to draw conclusions on the implementation of platforms and modularisation, and in particular on how they deal with this issue. First of all, an interpretation framework is proposed which defines the element taking into account managing with platforms. Secondly, the achieved results in terms of platform flexibility are studied. The paper measures them through analysing the way in which the trade-off between distinctiveness and commonality is dealt with. Finally, since the ability of firms to develop robust product platforms resides in NPD process management and organisation, organisational settings and process flows are examined. ? 2000 Elsevier Science Ltd. All rights reserved.

1999-12-08T00:00:00Z Takeishi, Akira Fujimoto, Takahiro https://hdl.handle.net/1721.1/733 2019-04-10T12:16:36Z 2001-06-18T00:00:00Z

Automobiles:Strategy-based Lean Production System Takeishi, Akira; Fujimoto, Takahiro The present situations and future prospects of the Japanese automobile industry are discussed. Selected topics in this paper include the following: analyses of the basic product-industry characteristics of the automobile (e.g., product architecture); the mature of the dynamic competition in the world auto industry; competitive performance (e.g., productivity) of the Japanese auto makers; organizational capabilities of better Japanese firms in production, development and procurement; overall environments in the 1990s; the concept of ?balanced lean? system and its adaptation to environmental changes; new flexible production systems that cope with volume fluctuation; architectural strategies of the auto firms; modularization of parts; M&A and alliance; future of the automobile technologies and architectures; future of the capability-building competition.

2001-06-18T00:00:00Z Raff, Daniel Fine, Charles https://hdl.handle.net/1721.1/731 2019-04-12T08:09:52Z 2001-08-02T00:00:00Z

Innovation and Economic Performance in the Automobile Industry Over the Long Twentieth Century Raff, Daniel; Fine, Charles

2001-08-02T00:00:00Z Volpato, Giuseppe Camuffo, Arnaldo https://hdl.handle.net/1721.1/729 2019-04-09T17:16:19Z 2002-06-12T19:25:59Z

Global sourcing in the automotive supply chain: The case of Fiat Auto "project 178" world car Volpato, Giuseppe; Camuffo, Arnaldo Objective of this paper is to present how Fiat Auto has developed a peculiar and innovative global sourcing model in conjunction with the rolling out of its "world car" project ?178?. Differently from other OEMs, that have designed vehicles with common "global" underbody platforms adapting body, trim levels and ride characteristics to local conditions, Fiat Auto "world car" concept and globalization strategy is more ambitious and complex, since the standardization of the 5 models stemming from the 178 platform involves absolute cross-country identity not only of interior/exterior design and contents but also of quality levels, robustness and compliance with European rules in terms of safety and pollution. The international supply chain supporting this globalization process can be interpreted as a double network of operations and transactions: the ?internal? supply chain, where "makes" are exchanged between Fiat Auto plants; the ?external? supply chain where ?buys? are purchased by Fiat Auto plants from suppliers. In the "external" supply chain, Fiat Auto manages, in a global sourcing perspective, a relatively stable group of suppliers, though in a competitive perspective, in order to guarantee cross-plant and cross-market component uniformity and worldwide efficiency. After depicting Fiat Auto global sourcing policies and the related organizational structures and processes, the paper highlights achievements and challenges of the model. The paper argues that Fiat's global sourcing, while putting competitive pressure on suppliers by means of worldwide information transparency on prices, quality and service, works as a performance improvement stimulator within OEM-first tier suppliers partnership relationships ("voice" mechanism), rather than a pure and simple supplierswitching device ("exit" mechanism).

2002-06-12T19:25:59Z Bendoly, Elliot Helper, Susan Levine, David https://hdl.handle.net/1721.1/727 2019-04-11T09:46:33Z 2001-01-21T00:00:00Z

Employee Involvement and Pay at U.S. and Canadian Auto Suppliers Bendoly, Elliot; Helper, Susan; Levine, David We use survey data and field research to investigate the effects of employee involvement practices on outcomes for blue-collar workers in the auto supply industry. We find these practices raise wages by 3-5%. The causal mechanism linking involvement and wages appears to be most consistent with efficiency wage theories, and least consistent with compensating differences. We find no evidence that employee involvement affects plants? survival or employment growth.

2001-01-21T00:00:00Z Camuffo, Arnaldo https://hdl.handle.net/1721.1/719 2019-04-12T08:09:26Z 2002-06-11T14:35:31Z

Rolling Out a "World Car": Globalization, Outsourcing and Modularity Camuffo, Arnaldo This article presents a case study of the ?roll-out? of a "world car" (the Fiat Palio). Based on original fieldwork carried on by the author in 6 countries (Italy, Brazil, Poland, Turkey, Argentina, India), it describes one of the most diverse international strategies in the recent history of the auto industry and represents an interesting terrain for analyzing how, in relationship with globalization, outsourcing and modularity play an increasing role in auto design and manufacturing. The article addresses the following research questions: 1) Does the "world car" approach represent a sustainable and robust strategy? 2) Is there a relationship between globalization, modularization and outsourcing in the auto industry? 3) Can these concepts be used to map out future developments and transformations in the contracting structure of the auto industry? This field study shows that producing and selling in many different places a car that involves absolute cross-country identity of interior/exterior design, parts, and quality standards (a "world car") represents an innovative and sustainable strategy. It also highlights that the robustness of this strategy decreases as the international scope and time span of the ?global? project increase. The Fiat Palio story also represents the first in depth analysis of what are, at the firm level, the dynamics that link globalization, outsourcing and modularization in the auto industry. The article confirms that modularization a) is a vaguely defined and ambiguously used term in the auto industry; b) is a broad concept, applicable and applied to a number of systems (product design, manufacturing, work organization, etc.); c) has only recently moved its first steps in auto design and manufacturing. The embryonic applications of modularity in design, manufacturing and organization reported in this study are used to map out future developments and transformations in the product architectures and organizational architectures of the auto industry. The article also suggests that, within a global strategy, modularization and outsourcing, though remaining conceptually distinct, tend to become, in practice, increasingly inseparable. The modularization of design, production and organization is intimately related to how, while trying to save costs, reduce risky investment, and manage the institutional constraints deriving from globalization, OEMs and suppliers partition their tasks, defining a new international division of labor.

2002-06-11T14:35:31Z Sturgeon, Timothy Florida, Richard https://hdl.handle.net/1721.1/685 2019-04-12T08:09:19Z 2002-06-06T18:27:08Z

The Globalization of Automobile Production Sturgeon, Timothy; Florida, Richard This paper is based on research from an in-progress project on the effect of globalization on competition and jobs in the automotive industry.3 Its purpose is to gain a clearer picture of the emerging economic geography of automobile production. The project has found that automakers and their Tier 1suppliers are aggressively internationalizing their operations in search of new markets and lower production CONS. At the same time, the largest automakers are attempting to centralize the product development and corporate control functions of their organizations in their home locations, where they are wor~ng more closely than ever with Tier 1 suppliers. we believe that both the centrifugal and centripetal aspects of the ?globalization? prwess will have important long-term effects on the character of competition; and the quantity, quality, and location of jobs in the sector. Moreover, many analysts who watch the automotive industry closely wam that the ag=mssive offshore investment that we are seeing today wiil create conditions of severe excess capacity in the near- and medium-term. A major ?post-globalization shakeout? could permanently alter the competitive landscape of the industry and have disastrous consequences for the employees of the f- that lose. This paper provides a discussion the issues that have been raised by the project?s research so far. The fmt phase of the field research has consisted of a series of on-site interviews at automaker and Tier 1supplier headquarters in Europe, Japan, Kore%and the United States. The headquarters interviews have focused on four themes: 1)new market identilcation and facility planning 2) automaker-supplier relations both at home and abroad; 3) the commonWon of vehicle, componen~ and process design; and 4) geographic variations in methods of worker recruitmen~ training, and work organization. A second phase of the research, to be completed in 1998, will involve visits to selected onand off-shore production sites. At the time of this writing, we have completed the first phase of the research in the United States and Europe. Since the headquarters interviews in Japan and Korea have not yet been conducted, the following discussion will inevitably be canted toward the perspective of American and European firms. Futiemnore, some of the data that we will provide are not yet complete, and are presented in draft form. The paper is organized in four sections. Section One presents the typology of locations that the project has developed as a way to make sense of the data we collect. Section Two presents the empirical case: the geographic spread of automobile production. Section Three discusses some of the factors that are driving the new investment, especially slow growth and increased competition in established markets. Section Four outlines the strategic responses of automakers to the increased risk and operational complexity caused by the globalization process itself.

2002-06-06T18:27:08Z Artzner, Denis Peschard, Guillermo Whitney, Daniel https://hdl.handle.net/1721.1/683 2019-04-12T08:09:19Z 2002-06-06T18:22:52Z

Cost Performance of Automobile Engine Plants Artzner, Denis; Peschard, Guillermo; Whitney, Daniel This paper analyzes the basic performance of 27 automobile engine lines operated by 18 companies on three continents, based on questionnaire data gathered in the Spring and Fall of 1995. Engine plants differ from assembly plants in being very capital-intensive. Thus a traditional ?hours/engine? metric of performance is inappropriate. Here a composite cost comprising labor and amortization of capital, accounting for downtime, is used to compare plant performance. We find that performance varies widely, even for similar engines. Cost drivers comprise number of workers, capital invested, and efficiency (fraction of scheduled time actually used for production). The drivers are in turn driven by external factors out of the plant?s control and internal factors that are under its control to some degree. We find that about half the variance in cost is due to the external factors, such as number of cylinders, utilization of scheduled time, and number of variants of engine made (the last loosely related to age of the engine family). Internal factors such as work in process inventory (strongly) and age of the workers (somewhat) drive cost. Downtime, the reverse of efficiency, is itself divided into scheduled and unscheduled downtime; the former is driven largely by number of variants while the latter is driven to some degree by the age of the family. The results of this study include a methodology to estimate the cost of variety. Statistical analyses are used to calculate the additional cost of machining blocks ($4.92 more per block, $15 million extra investment, 9 additional workers and -4?40 operating efficiency associated with one additional square root of number of variants). This methodology can be extended to create a cost of variety for an entire engine.

2002-06-06T18:22:52Z Maxwell, James Koike, Ami Briscoe, Forrest Rothenberg, Sandra Oye, Kenneth https://hdl.handle.net/1721.1/681 2019-04-12T08:09:20Z 2002-06-06T18:19:45Z

Environmental Practice Survey Results Maxwell, James; Koike, Ami; Briscoe, Forrest; Rothenberg, Sandra; Oye, Kenneth The following report outlines some of the initial findings from the preliminary data. Please note that this report is based on data collected so far. Additional surveys and continued analysis will lead to more thorough analysis in the future. Our analysis of the survey is organized in the following mannec General Environment Management, Air Emissions, Paintshop Management, Utility Management, Solid Waste, and Water Pollution. At the end of the document you will find a summary of the major variables, as they average across North American and Japanese plants, along with the performance of your own company. The data on individual company and plant performance is being held strictly confidential.

2002-06-06T18:19:45Z Helper, Susan MacDuffie, John Paul https://hdl.handle.net/1721.1/679 2019-04-12T08:09:18Z 2002-06-06T18:16:17Z

Creating Lean Suppliers: Diffusing Lean Production Through the Supply Chain Helper, Susan; MacDuffie, John Paul Hon& of America has developed a comprehensive approach to teaching the principles of lean production to its suppliers. The centerpiece of these efforts is a program called BP (for ?Best process?, ?Best Performance ?, ?Bs Practice?), in which a crossfunctional team of persomel born Honda and the supplier work intensively for week or even months on narrowly-targeted improvement projects in the supplier?s plant. BP has been quite successfid in enhancing supplier performance; suppliers participating in the program in 1994 avmge~ productiviw gains of 50?/0 on lines reengineered by BP. However, Honda found there was high variation in the extent to which suppliers were able to transfer the lessons taught beyond the line or plant where the BP intervention occurred. We explore the reasons for this variatio~ touching on how the BP process interacts with the broader relationship between customer and supplier, organizational learning, technology transfer, and the transplantation of Japanese management practices to the U.S. The case studies we present of three of Honda?s U.S. suppliers illustrate the dynamics of the learning process and the complex relationship that emerged between ?teacher? and ?student?. We found that achieving self sufficiency with the lean production techniques taught by BP is more likely when the supplier has a moderate degree of identification with and dependency on the customer. If these are too hi~ the supplier will be tempted to continue to rely on the customer for assistance; if they are too low, the learning relationship may break down. It appears that Honda has achieved the most supplier self reliance with larger U.S.-owned companies, who have an identity as strong, competent actors, and thus try to reduce dependence on Honda by mastering the new knowledge quickly. Yet these larger suppliers may be less responsive to Honda?s needs that small-to-medium suppliers whose capabilities can be boosted through Honda?s supplier development activities.

2002-06-06T18:16:17Z Rubinstein, Saul Kochan, Thomas https://hdl.handle.net/1721.1/677 2019-04-12T08:09:18Z 2002-06-06T16:15:29Z

Toward a Stakeholder Theory of the Firm: The Case of the Saturn Partnership Rubinstein, Saul; Kochan, Thomas This paper seeks to engage the organization theory community in contemporary debates over the role of the cxxporation in American society by building a stakeholder theory of the t%n. We develop a set of normative premises and positivist propositions derived from these debates, from a combination of organization and industrial relations theories, and by using data from the Saturn Corporation. Three questions are posed for a stakeholder theory: (1) Under what conditions is a stakeholder firm likely to emerge, (2) what are the critical determinants of performance in a stakeholder firm, and (3) what will determine the sustainability and diffusion of this organizational form in the American environment? The history, design features, and dynamics of the labormanagement partnership at Saturn are used to illustrate and interpret a specific case of employees as stakeholders. Saturn?s governance structure, work organization, and internal processes fit the characteristics of a stakeholder firm. Employees establish themselves as critical stakeholders by using their knowledge to improve organizational performance. The local union likewise contributes to firm performance by organizing workers into a dense social network that contributes to problem solving, conflict resolution, and quality improvement. However, the legal and political environment in which the firm operates produces considerable uncertainty over the sustainability and diffusion of Saturn?s features in particular, and the stakeholder organizational form in general. Additional hypotheses and research questions are proposed to continue theory building around the more general model of the stakeholder firm. Organization theorists are encouraged to take up the analysis of stakeholder models and thereby contribute to the contemporary and future debates over the role the corporation in American society.

2002-06-06T16:15:29Z Rubinstein, Saul Kochan, Thomas https://hdl.handle.net/1721.1/675 2019-04-10T12:16:35Z 2002-06-06T16:12:04Z

Saturn, The GM/UAW Partnership Rubinstein, Saul; Kochan, Thomas Designed and implemented as a partnership between GM and the UAW, Saturn breaks new ground in firm governance,management and industrial relations. Through detailed study of Saturn?s partnership arrangements we have found that thelocal management and union leaders have not only implementedthe contractual joint governance institutions which involvelabor in business strategy, product development, supplier andretailer selection, and manufacturing policy, but have also created a system of co-management which gives hundreds ofjointly selected unionoperations management.1members theIn order toresponsibilities ofunderstand the impact ofthe involvement of union members as management, we analyzedthe relationship between the behaviors of both representedand non-represented middle managers, the dynanics of theirindividual union-management partnership relations,differences in their patterns of communication andcoordination, and Saturn?s quality performance. We alsoexamined each partner?s use of time to explore the balancingof social and economic tasks between represented and nonrepresentedpartners. These data were combined with analysesof the tensions within the union between its traditional rolein membership representation, and its new role in managementand governance. Finally, we raise questions regarding thelearning from and diffusion of Saturn to the rest of the GMand the UAW organizations. The Impact of Co-Management and Joint Governance on Firm and Local Union Performance

2002-06-06T16:12:04Z Gakenheimer, Ralph https://hdl.handle.net/1721.1/673 2019-04-09T19:18:37Z 2002-06-06T16:04:31Z

Mobility Issues in the Developing World Gakenheimer, Ralph In the large cities of the developing world, travel times are generally high and increasing, destinations accessible within limited time are decreasing. The average one-way commute in Rio de Janeiro is 90 minutes. In Bogota it is 60 minutes. The average vehicle speed in Manila is 7 miles per hour. The average car in Bangkok is stationary in traffic for the equivalent of 44 days a year. This is happening because vehicle registrations are growing fast on the basis of increased populations, increased wealth, increased commercial penetration, and probably an increasingly persuasive picture in the developing world of international lifestyle in which a car is an essential element. Accordingly, in much of the developing world the number of motor vehicles is increasing at more than 10 percent a year-the number of vehicles doubling in 7 years. The countries include China (15 percent), Chile, Mexico, Korea, Thailand, Costa Rica, Syria Taiwan, and many more. What is the shape of increasing congestion and declining mobility? There are no widespread measures available for comparative purposes because decline in mobility is complicated. Congestion is always localized in time and space. A few things are nonetheless evident.

2002-06-06T16:04:31Z Artzner, Denis Whitney, Dr. Daniel https://hdl.handle.net/1721.1/671 2019-04-12T08:09:17Z 2002-06-06T15:59:02Z

Description Of Procedures In Automotive Engine Plants Artzner, Denis; Whitney, Dr. Daniel 1. Human resources - For automakers, the total cost of paying average workers is around $40000 per year (mean value); the numbers range from $30000 to $60000 (except for a Central European facility where it is much lower). On average, direct pay is three times the amount of benefits. In general, worker qualification does not affect the benefits policy within an automobile engine plant. - Overall, the average age of workers in engine plants is slightly above 40 years old. There is no difference by geographic region. In older engine plants, workers do tend to be older. Annual turnover rates are around 5%. Mean values for unionization levels are 7990 for hourly workers, 45% for salaried workers. It is common for production workers to be assigned different tasks; the engine plants where the union contract restricts the kind of activities are located in North America. - A majority of engine plants surveyed have work teams, and they are deployed in all departments. In most cases, work teams were introduced about five years ago. Sometimes, work team leaders are not elected. The average training received is 41 hours per employee per year. Fluctuations in the values are large. European facilities tend to have more training. Respondents felt that inspecting one?s work, being well trained, designing one?s workplace and having suggestions accepted are factors which can help workers make high quality engines. Workers and management interact via meetings and surveys. There are usually fewer than 2 suggestions per worker per year. The more training people get, the more likely they are to make suggestions. 2. Logistics - Delivery of parts to the assembly department of engine plants: the Japanese-owned facilities get a much higher fraction of these components delivered more than once per shift, compared to other plants. There are more instances of ?just-in-time? practice for castings and parts delivered to the machining departments. - Engine and vehicle assembly plants: for half of our sample, the average delivery pace of finished engines to the car assembly plant is once per shift or more frequently. Engine plants which deliver engines very frequently no matter how far their customer vehicle assembly plants are located. The average value of the average delivery size of finished engines is 273 units (the results are very variable, but in general, the more engines are produced per unit time, the larger the batch size). For one out of two engine plants, the average transit time to the customer vehicle assembly plant is less than half a day; however, there are many cases where finished engines are delivered to vehicle assembly plants located very far away. 3. Maintenance policies - Total Productive Maintenance (TPM) is in place in all of the plants surveyed, but this is quite recent (implementation started between 1990 and 1994). In two out of three cases, it is based on a centralized planning and information system. All of the key maintenance items mentioned in the questionnaire are taken care of by all engine plants; however, the frequency at which maintenance is done varies a lot from plant to plant (average: one and a half times per week). ProceduresinEnginePlants(ABSTRACT) MIT /IMVP --Oct.1997 Page2 - Throughout all departments of engine plants, breakdowns are caused on average mostly by mechanical problems and then by electrical problems although there is a lot of variation between plants. For those types of failures, there is no link with any downtime statistics. Hydraulic failures occur more frequently in those plants which are older. 4. Production technologies - Several of the engine plants surveyed are currently undergoing major changes. For a new engine variant, most engine plants can deal with the adaptation by using much more than half of the existing machines. In engine plants, a ?minor upgrade? can stop lines anywhere between less than 24 hours to more than a week. Currently, assembly lines in engine plants can handle more flexibility than machining lines. When different engines are built in sequence, the pattern used most often is 1-1- 1-2-2-2 (batch sizes range from 6 to 100?s of engines). - Current and future design and acquisition processes for equipment do not differ. There is one policy for the whole plant. For a majority of engine plants, the methodology is as follows: the automobile company takes care of defining the requirements, it has a large influence (along with an affiliate or sister company sometimes) for the planning process, but the design and building of equipment is done by an outside equipment or system supplier. Two areas where answers differ a lot concern the system integration and the actual installation of equipment in engine plants: in some cases, the automobile company is in charge, while in other cases, an outside firm does the job. 5. Quality - Engines made in European plants have more complaints per 1000 than the North American or Japanese ones (caution: we have rather few of these data points from non-European plants). Engine quality as measured by complaints per 1000 units after engines are delivered: 3-month quality data are quite good predictors of 12-month data. - In almost all engine plants, Statistical Process Control (SPC) data are collected and displayed at the line or work station. Engine plants also get back some engine performance and warranty data. - In most instances, communication of engine design information is done via fax or hardcopy. Sometimes, CAD systems (mostly 2-D) are used to exchange design dat~ however, whether CAD systems are used or not, is not a function of the age of the engine plant or of the lines. In a majority of cases, the exchange of information between the plant and the engine design department take place weekly, with actual design changes happening monthly. On average, half of the design changes are due to the engine engineering department, in order to improve the engine and to fix design or performance problems. Other causes for design changes are the meeting market needs, fixing production problems, and responding to the evolution of regulations. - All plants conduct hot testing of engines; in two facilities, only some of the engines are hottested. The test can last from 45 seconds to 18 minutes. The (few) all-aluminum engines of our survey are among those which undergo longer periods of hot testing. Less than 7% of the engines fail the hot test the first time. By looking simultaneously at the engine quality data and at the hot testing results, we did not find any correlation: hot test duration does not uncover problems which cause quality complaints 3 or 12 months after the engines are delivered to customers. Proceduresin EnginePlants(ABSTRACT) MIT /IMVP --Oct.1997 Page 3 - According toourrespondents, production technologies thatcan becritical formanufacturing high quality automotive engines concern machining operations more than the sub-assembly and final dressing ofengines; interestingly, these technologies are most often supplied by outside vendors. In addition, organizational factors are seen as much more effective than automatization, in order to produce high-quality engines. 6. Information systems - Information systems are in place in engine plants, and they are used quite extensively. - While centralized systems tend to be used mainly for planning purposes, non-centralized computer systems can help compile some statistical data and tell about equipment problems. Rarely are information systems actually used to give work assignments to employees. 7. Accounting procedures and investment decisions - For a series of recent major installations of equipment in engine plants, it took around two years between the approval of the plan and the moment when the first part was produced, and from there on, an extra three to six months for full production levels to be reached. - The top financial indicator used by car firms for measuring the ?performance? of engine plants is clearly variance from budget. Some financial ratios like return on equity or return on assets are not used at all. For non-financial indicators, the quality of engines is most important, followed by safety and environment concerns, logistical issues, and labor productivity. - Product quality and internal rate of return are the two most important factors involved in engine plant investment decisions. - Most common practice is that indirect cost allocation uses standard or actual labor hours. - Activity-based costing systems were in place in 30% of the engine plants surveyed ( 1995 data). 8. Plant improvement efforts - The persons surveyed do not think that more automation will be the key for progress in engine manufacturing. For the future, a strong desire is the ability to improve the flexibility of the factory, of the machines, and of the material flow. Interestingly, the respondents most interested by flexibility improvements are based in engine plants which currently deal with rather low levels of engine variety. - On the list of factors which can help improve operations in engine plants, is the need to establish better contacts with people in the engine design department and with the suppliers of machinery. Also, being able to build more engines in less space is an important goal for several respondents; actually, those most interested by this issue are from engine plants where the utilization of space is already more efficient than on average. This study was sponsored by the International Motor Vehicie Program. The authors gratejidly acknowledge its support.

2002-06-06T15:59:02Z Volpato, Giuseppe Camuffo, Arnaldo https://hdl.handle.net/1721.1/661 2019-04-11T03:49:30Z 2002-05-09T20:41:59Z

Global sourcing in the automotive supply chain:The case of Fiat Auto Volpato, Giuseppe; Camuffo, Arnaldo Objective of this paper is to present how Fiat Auto has developed a peculiar and innovative global sourcing model in conjunction with the rolling out of its "world car" project "178". Differently from other OEMs, that have designed vehicles with common "global" underbody platforms adapting body, trim levels and ride characteristics to local conditions, Fiat Auto "world car" concept and globalization strategy is more ambitious and complex, since the standardization of the 5 models stemming from the 178 platform involves absolute cross-country identity not only of interior/exterior design and contents but also of quality levels, robustness and compliance with European rules in terms of safety and pollution. The international supply chain supporting this globalization process can be interpreted as a double network of operations and transactions: the "internal" supply chain, where "makes" are exchanged between Fiat Auto plants; the "external" supply chain where "buys" are purchased by Fiat Auto plants from suppliers. In the "external" supply chain, Fiat Auto manages, in a global sourcing perspective, a relatively stable group of suppliers, though in a competitive perspective, in order to guarantee cross-plant and cross-market component uniformity and worldwide efficiency. After depicting Fiat Auto global sourcing policies and the related organizational structures and processes, the paper highlights achievements and challenges of the model. The paper argues that Fiat's global sourcing, while putting competitive pressure on suppliers by means of worldwide information transparency on prices, quality and service, works as a performance improvement stimulator within OEM-first tier suppliers partnership relationships ("voice" mechanism), rather than a pure and simple supplierswitching device ("exit" mechanism).

2002-05-09T20:41:59Z