Splitting or sharing resources at the process level: An automotive industry case study

Abstract

Original equipment suppliers (OES) supplying the automotive industry are in a business characterized by fierce competition and long contracts. Fulfilling these contracts often implies producing serial parts while an automotive is in serial production and an obligation to provide spare parts after the serial phase. The first period is characterized by large volumes and production based on stable forecasts. The second period implies production for the spare parts marked and this period is characterized by sporadic orders and small volumes. Focused factories theory suggests that production of products with different market and product characteristics should be carried out in separate focus factories. This paper discusses the feasibility of focused factory theory using an OES as an illustrative case, and presents relevant questions to address in order to achieve focus at the process level. © IFIP International Federation for Information Processing 2013.