OM Case Draft

Manufacturing and Logistics issue in Car Manufacturing

Submitted to

Dr. Peeyush Pandey

Submitted by

Swadheen Jain PGP09241

Neha Khedkar PGP09209
Rahul Arora PGP09221
Ritu Singh PGP09225
Shray Yadav PGP09236
Shubham Divyanshu PGP09238
Neha Singh PGP09212
 Case: Manufacturing and Logistics issue in Car Manufacturing
In the beginning of the year 1998, people at Marc realized that there is market for a new kind
of car that is eco-friendly and will cater to the needs of the increasing population and issues
of parking. In an attempt to provide solution to this problem and to revamp its position in the
industry, it developed a new mobility concept that relieves the heavy environmental pressure
caused by present traffic while still ensuring continuous individual mobility. The company
designed and launched a new car-“Smart” with a hope of providing an upper edge to the
company among its competitors.
Marc
Marc is a leading car manufacturer company in Europe and has been catering to its customers
for the past 20 years. It is a wholly owned subsidiary of a giant car company and is focused
on designing and delivering compact and price efficient cars to its customers. It has been
launched as a new brand and due to its innovative and customer-centric approach; it is
gaining high popularity among the masses.
Smart
Smart is the car launched by the company. It is a two-seater car that is primarily modeled on
the theme of being an eco-friendly product. It is just 2.5metre in length,1.5 in width and 1.53
metre in height, and due to its small size, it can be easily parked. Two Smart can be parked in
a slot of one car. Due to its smaller size and supposedly smaller engines, it reduces emissions
and shows care for the environment. Moreover, all the components of the car are recyclable
after use.
Main problems to be catered
The car comprised of many small components which are shipped by different suppliers.
These components include Body panels, Front modules, Seatbelts, Rear lights, Locking
system, Carpet, Audio System, Doors, Headlights, Window etc. to name a few.
The problem arises in delivering of these components to the manufacturing plant at times. A
delay in the shipment of any of the component can delay the whole manufacturing process,
making the assembly line idle, thereby decreasing the production and increase overhead cost
for the company.
As the car is focused to be highly innovative and customizable, time required for the
customization of the components should be reduced.
The lead time for the production should be low so as to cater to the need of the customers
within the stipulated time period and eliminating the waiting time for the delivery of the car
to the customers
Objective
To provide solution to the company Marc, so that they can focus on their product by focusing
on design and technology, satisfy higher levels of customer choice and care for environment
at a reduced cost by improvising and reducing the logistical and manufacturing expenses
incurred by the company.