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Article
Publication date: 12 February 2020

Saumyaranjan Sahoo

The purpose of this paper is to investigate the status of lean manufacturing in Indian automotive sector, component manufacturing industries in terms of lean adoption…

Abstract

Purpose

The purpose of this paper is to investigate the status of lean manufacturing in Indian automotive sector, component manufacturing industries in terms of lean adoption, benefits, motivation, and challenges of implementing lean manufacturing practices.

Design/methodology/approach

The research objectives were achieved by conducting a qualitative multicase study approach. Fourteen Indian automotive component manufacturing small and medium-sized enterprises (SMEs) were chosen based on their different product offerings as well as differing approaches to the introduction and implementation of lean initiatives. Data were collected through in-depth, semistructured interviews supported by shop-floor observations.

Findings

The findings from the present study suggest that some of the participating automotive component manufacturing SMEs have a relatively good understanding of lean concepts and philosophy. However, there is room for further improvement for most SMEs. Major top five lean practices being implemented were found to be cellular manufacturing, total productive maintenance, 5S, work standardization, and quality management practices. Also, leadership and organizational culture were found to be crucial factors for the success of lean manufacturing.

Research limitations/implications

The fact that the data collected for the research study is based on subjective business evidence obtained from company representatives comprises the main limitation of the present study. So, the results should be considered with caution, as far as the lean adoption in Indian automotive component manufacturing sector is concerned.

Practical implications

Based on the present study, suggestions can be made regarding the successful adoption of lean principles, not only for the participating SMEs but also for the whole of the automotive component manufacturing sector. More specifically, by determining the strength and weakness of automotive component manufacturing SME's effort to adopt lean, suitable managerial initiatives can be undertaken by these companies as well as the whole sector to fully adopt lean and derive the respective benefits.

Originality/value

This paper explores the status of lean adoption in Indian automotive component manufacturing SMEs. Considering the unique characteristics of the automotive component manufacturing industry, the present research would be helpful for making strategies to implement lean in automotive component manufacturing industry setups.

Details

Benchmarking: An International Journal, vol. 27 no. 3
Type: Research Article
ISSN: 1463-5771

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Article
Publication date: 1 February 1992

Ray Hudson and David Sadler

The market and political conditions facing Japanese investment inautomobile assembly in Western Europe are wholly different from those inNorth America. Argues in…

Abstract

The market and political conditions facing Japanese investment in automobile assembly in Western Europe are wholly different from those in North America. Argues in consequence that a distinctive set of questions is necessary in order to evaluate the likely consequences of such investment for the components sector. Within Western Europe, the “indigenous” automotive components industry has begun a process of restructuring, enabling it to face new demands of production and delivery characterized as “Just‐in‐Time”. Rather than relocate close to new vehicle assembly plants, creating spatially‐clustered production complexes, as some have suggested, a favoured solution has instead typically involved changes to logistical operations, enabling JIT delivery from existing Europe‐wide production systems. Outlines the reasons for this response and assesses some of its implications.

Details

International Journal of Physical Distribution & Logistics Management, vol. 22 no. 2
Type: Research Article
ISSN: 0960-0035

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Article
Publication date: 14 November 2008

Rajesh K. Pillania

New knowledge creation has gained currency in the global knowledge economy. It is important not only for big firms, but for small and medium size enterprises (SMEs) also…

Abstract

Purpose

New knowledge creation has gained currency in the global knowledge economy. It is important not only for big firms, but for small and medium size enterprises (SMEs) also. Indian automotive components sector is one of the fastest growing sectors of Indian economy and is dominated by SMEs. This research work aims to study the knowledge creation and categorization in SMEs in Indian automotive components sector.

Design/methodology/approach

This paper uses a survey method to collect primary data to study knowledge creation and categorization in automotive components manufacturers.

Findings

Among various kinds of knowledge, knowledge about customers is given most importance. Though new knowledge creation is gaining importance, research and development spending as percentage of turnover are very low. International automotive components manufacturers have a better perception about knowledge creation compared to the prevalent view in Indian firms. In terms of relevance, latest and timeliness, Indian and international automotive components manufacturers pay little credence to the knowledge available through government institutions and industry associations. Industry associations and governments need to have a re‐appraisal of their practices and make their working more useful, fast and updated.

Practical implications

This work has policy implications for government and industry associations. Corrective measures are suggested for industry associations and government bodies for contributing to knowledge creation and implementing knowledge management in organizations.

Originality/value

First of its kind study in SMEs, particularly automotive components sector in India. It studies the current state of knowledge creation and categorization and suggests guidelines for improving knowledge creation in SMEs.

Details

Management Decision, vol. 46 no. 10
Type: Research Article
ISSN: 0025-1747

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Article
Publication date: 1 December 1996

David Mackay and Malcolm Rosier

Draws on recent research on the impact of electronic data interchange (EDI) on the Australian automotive industry. The often considerable efforts by large corporations…

Abstract

Draws on recent research on the impact of electronic data interchange (EDI) on the Australian automotive industry. The often considerable efforts by large corporations towards the globalization of production and distribution has led such firms (typically multi‐national corporations) to invest in technologies designed to improve the efficiency and effectiveness of their global operations. In this context, one such technology is EDI. Much has been written about EDI and, in particular, the benefits that adopters can expect from using this comparatively simple, facilitating technology. While many authors are quick to extol the virtues of EDI, rarely have they documented the actual benefits and costs to an organization from adoption. Examines the impact of EDI on trading partners in the Australian automotive industry. Research consisted of a longitudinal study (between 1992 and 1994) of all component manufacturers which were supplying components to the large locally‐based multi‐national vehicle assemblers (Ford, General Motors‐Holden (GMH), Mitsubishi and Toyota). It is the component manufacturers who have felt the major impact of their larger customer’s requirements to become EDI capable.The alternative was to cease supplying the automotive industry. Following the establishment of a conceptual model, path analysis was used to analyse support for a number of hypotheses in measuring the extent of benefits to the organization from using EDI. Conclusions so far drawn support the hypothesis that benefits were being achieved depending on the degree of commitment of the organization to issues such as system integration, and level of senior management involvement. A number of suppliers found that despite being forced into EDI adoption, they were obtaining some competitive advantage, and having received new business (e.g. international contracts) partly as a result of being EDI capable.

Details

International Journal of Physical Distribution & Logistics Management, vol. 26 no. 10
Type: Research Article
ISSN: 0960-0035

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Article
Publication date: 24 May 2011

Tapan Sahoo, D.K. Banwet and K. Momaya

The automobile industry in India is one of the sunrise industries and is poised to enhance its contribution from 5 percent of GDP in 2006 to 10 percent by 2016. The auto…

Abstract

Purpose

The automobile industry in India is one of the sunrise industries and is poised to enhance its contribution from 5 percent of GDP in 2006 to 10 percent by 2016. The auto component industry in India has grown hand in hand with the industry and is in the process of transforming itself from being a “Job order fulfiller” to being an “Integrated organization”. With the liberalization process having started in 1991, most auto component manufacturers in India have chosen the easy path of attempting to progress on operational or manufacturing capabilities. For advancing on technology capability dimension, they mostly relied on international collaborations. The purpose of this paper is to study the strategic technology management (STM) practices in select case organizations in the auto component industry in India.

Design/methodology/approach

The methodology employed for this study is a combination of literature survey, expert opinion, comparative case study and a flexible systems methodology, situation‐actor‐process‐learning‐action‐performance analysis. Longitudinal studies of technology development at the two case organizations have been done and the case analysis and synthesis has been developed based on valuable inputs and insights shared by key personnel in the case organizations.

Findings

The study finds that two different organizations have adopted different technology strategies. While both case organizations have strong linkage between business and technology strategy, the approach has been reasonably different for technology acquisition and development. The findings suggest that an effective STM can contribute to faster technology absorption and overall business performance. Organizations in India need to develop the in‐house capabilities along with suitable technology acquisitions, wherever required.

Originality/value

The two cases provide valuable insights into STM practices in two organizations and highlight the methodology adopted by the companies in their evolutions toward becoming world‐class integrated organizations. The learning can provide the way forward for capable firms in the auto component industry in India.

Details

Journal of Advances in Management Research, vol. 8 no. 1
Type: Research Article
ISSN: 0972-7981

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Case study
Publication date: 10 October 2013

Zizah Che Senik, Adlin Masood, Khairul Akmaliah Adham, Noreha Halid, Rosmah Mat Isa and Norrana Khidil

– UMW Holdings: sustaining a centennial corporation.

Abstract

Title

UMW Holdings: sustaining a centennial corporation.

Subject area

Strategic Management and Organization Theory and Design.

Study level/applicability

Advanced undergraduate and MBA students taking courses in Strategic Management and Organization Theory and Design.

Case overview

By the end of 2011, five years short of its centennial anniversary, UMW Holdings was one of the biggest corporations in Malaysia, registering revenues of RM13.5 billion (US$4.5 billion), and net profit after tax of RM1 billion (US$0.33 billion). By that time, it had 110 subsidiaries, operating in four core businesses of automotive assembly and distribution of Toyota lines of products, automotive components and lubricants original equipment manufacturing (OEM) and replacement equipment manufacturing (REM), heavy equipment, and oil and gas drilling service. In September 2011, the company had targeted its Toyota automotive business to contribute to 50 percent of its revenues, while the other 50 percent would come from its other three businesses, by the year 2015. However, as of the first quarter of 2012, Datuk Syed Hisham Syed Wazir, the Group CEO and his management team realized that, at 72 percent, the automotive business was still the main contributor to the Group ' s revenues. As the company ' s Toyota assembly operation was limited exclusively to the Malaysian market, plus in the face of greater competition within the automotive industries, the company needed to set strategies to achieve its 50:50 plan. The case stimulates discussion on strategy formulation of a mature corporation, involved in diversified business portfolio.

Expected learning outcomes

Understanding the process of industry analysis, as well as the formulation and implementation of business-level and corporate strategies, enables case analysts to extend the concepts to many business situations.

Supplementary materials

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

Details

Emerald Emerging Markets Case Studies, vol. 3 no. 4
Type: Case Study
ISSN: 2045-0621

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Article
Publication date: 1 April 2019

Hemantkumar Tambade, Rohit Kr Singh and Sachin Modgil

The purpose of this paper is to identify dimensions of competitiveness, factors affecting the competitiveness and building the framework of competitiveness for the Indian…

Abstract

Purpose

The purpose of this paper is to identify dimensions of competitiveness, factors affecting the competitiveness and building the framework of competitiveness for the Indian auto-component industry and further develop and validate a survey instrument based on the identified factors.

Design/methodology/approach

Dimensions of competitiveness and factors affecting it are extracted out after extensive literature review. A theoretical framework is developed using these factors. A survey instrument is developed based on the theoretical framework and validated through a pilot survey.

Findings

In total, 30 variables are found to be reliable in establishing the potential indicators of competitiveness. There are three significant contributions to the theory of competitiveness. It provides a theoretical framework of competitiveness to address the current market conditions of volatility. Second, it incorporates the dimensions like supply chain management, presence of global value chains and employee empowerment. Third, it clearly identifies the dimensions of competitiveness relevant in current context, like ethical behavior of firms, protection of intellectual property and innovation.

Practical implications

The proposed approach provides a good basis for assessing the competitive performance of the companies. This can help researchers and practitioners in deciding how to improve the competitiveness of a company.

Originality/value

The research proposes a theoretical framework for measuring the competitiveness of firms from a specific industry. This study indicates the factors affecting the competitiveness of Indian auto-component industry. The findings can be useful for both researchers and practitioners.

Details

Benchmarking: An International Journal, vol. 26 no. 3
Type: Research Article
ISSN: 1463-5771

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Article
Publication date: 1 July 2006

Kyung‐Hee Jung and Sang‐Kyu Lee

To provide new roles of steel mills with desirable business strategies in the supply chain of automotive steel sheets.

Abstract

Purpose

To provide new roles of steel mills with desirable business strategies in the supply chain of automotive steel sheets.

Design/methodology/approach

The characteristics of the relationship between automakers and steel mills, which aim to provide different patterns according to regional markets, are classified into the customer‐supplier relations in the regions of North America and Japan. Extended roles of steel mills with expected responsibilities are considered in the automotive supply chain, not just raw material suppliers.

Findings

Provides new procurement programs of automakers, indicating what can be found there for new paradigm of steel suppliers and how new procurement programs can change. Emphasizes the necessity of developing more updated and functional business models of steel mills in the value chain.

Practical implications

Steel mills have to extend their conventional roles to downstream processing in the automotive steel supply chain, in order to maintain cooperative and interdependent relations with OEMs.

Originality/value

This paper fulfils extended roles of automotive steel suppliers in supply chain management and offers collaborative partnerships to steel mills and automakers.

Details

Supply Chain Management: An International Journal, vol. 11 no. 4
Type: Research Article
ISSN: 1359-8546

Keywords

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Article
Publication date: 25 February 2020

Luz María Valdez-de la Rosa, Luis Alberto Villarreal-Villarreal and Gustavo Alarcón-Martínez

The purpose of this paper is to identify the causal relationship between the independent variables such as process quality and product innovation in regard to the…

Abstract

Purpose

The purpose of this paper is to identify the causal relationship between the independent variables such as process quality and product innovation in regard to the dependent variable of competitiveness, in the manufacturing sector of the automotive industry, specifically for Tier 1 auto parts manufacturing companies in the state of Nuevo León, México.

Design/methodology/approach

Based on a thorough review of the literature, an instrument was designed to measure the competitiveness of automotive industry manufacturing; it was applied to Tier 1 suppliers of automotive parts in the state of Nuevo León, México. Various statistical analysis tests were applied to the results; first, Cronbach's alpha to determine the reliability of the instrument, and next, a factor analysis to measure construct validity. In addition, a multiple linear regression analysis was carried out to identify the causal relationships between the variables analysed.

Findings

This study found that process quality as well as product innovation have independent and positive causal relationships with respect to competitiveness in automotive manufacturing.

Research limitations/implications

The limitations of this paper are its focus on a single manufacturing sector, application in a single country and small sample size.

Practical implications

Companies that supply automotive parts will be able to invest in the key elements of quality and innovation while focusing their efforts on reinforcing their competitiveness.

Originality/value

Auto parts suppliers will be able to perform specific actions to improve their quality processes through lean manufacturing and quality assurance practices and by designing new and innovative products that will enhance their competitiveness.

Details

The TQM Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1754-2731

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Article
Publication date: 7 August 2017

Chandra Mouli V.V. Kotturu and Biswajit Mahanty

In recent years, due to intense competition, small and medium-sized enterprises (SMEs) are unable to meet performance expectations and find difficulty in fulfilling the…

Abstract

Purpose

In recent years, due to intense competition, small and medium-sized enterprises (SMEs) are unable to meet performance expectations and find difficulty in fulfilling the needs of the original equipment manufacturers (OEMs). Consequently, the growth of the SMEs has slowed down considerably. Constrained by their infrastructural resources, SMEs’ participation in global value chains (GVCs) has the potential to bring significant benefits, such as enhancing technological learning and innovation and generating positive contributions to the development of the SMEs. The purpose of this paper is to explore competitive priorities, key factors, and causal relationships influencing SMEs to enter GVCs.

Design/methodology/approach

In this paper, the GVC framework is adopted and qualitative feedback loop analysis is used to identify the key factors influencing the competitive factors. A questionnaire survey was carried out with the automotive component manufacturers of a transnational corporation in India.

Findings

The survey in the automotive component manufacturing industry reveals product quality standards as the most important priority for joining global production networks, followed by price competitiveness, timely delivery, innovativeness, manufacturing flexibility, service, and dependability. The qualitative findings reveal continuous personnel training, capacity expansion, research development, and others as key factors influencing competitiveness.

Practical implications

To retain SMEs’ role in economic development and to accelerate the growth of global production networks in India, thereby realizing opportunities from the emerging GVCs, support is needed for SMEs regarding the aspects identified in this study.

Originality/value

The study explores the dynamics of each competitive priority of SMEs in Indian automotive component manufacturing industry to enter the GVCs. No study has explored the dynamics of SMEs competitiveness to enter GVCs in the automotive manufacturing industry.

Details

Journal of Advances in Management Research, vol. 14 no. 3
Type: Research Article
ISSN: 0972-7981

Keywords

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