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What is difference between assembly plant compared to more typical auto assembly plants? - Why do you think there are no robots or other automation needed in the plant to do the production?

What is difference between assembly plant compared to more typical auto assembly plants? - Why do you think there are no robots or other automation needed in the plant to do the production?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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  1. What is difference between assembly plant compared to more typical auto assembly plants?
    -
  2. Why do you think there are no robots or other automation needed in the plant to do the production?
6:11 PM ENG 4/8/2021 File Tools View Ivan Case Study ^N1 - Word X UPLOAD BLOCKED We ran into a problem with this file and can't save any new changes. Please save a copy to avoid losing your work. Save a Copy it all," says Andrew Stokes, a UAW craftsman who works in underbody When the board-games company Bob Moog created in 1985 sought and heavy repair. "I'm one of the first 12 to work on the Prowler," he growth through global expansion 2 years later, Moog faced the usual two added. "The Prowler is a little easier to assemble but a little harder to re- options: export the product or manufacture it overseas for local distribu- pair. The Viper seems to be a lot more open than the Prowler is-the car tion. Moog chose the latter. "We decided for a number of reasons to seems to be built around the engine and trans and that makes it a little manufacture our board game, '20 Questions,' in Holland for distribution harder to work on." Thanks to such an interest from car buyers in this throughout Europe," said Moog, president of University Games Corp. of plant, Daimler Chrysler allows Viper customers to pick up their car as it Burlingame, CA. R ecently the company expanded into Australia. Unlike comes out of the final assembly, to meet the employees who built it, and the European ventures, however, Moog decided that it was more eco- to drive it home from the plant instead of from the dealership. nomical to import its products into Australia from the U.S. manufacturing facility because "anticipated initial sales in Australia just did not warrant a manufacturing operation there at this juncture," Moog said. "If sales Questions: pick up down the line, we may then examine local manufacturing." 1. What is difference between assembly plant compared to more typi- Moog's dual strategy is not unique. One of the toughest questions a com- cal auto assembly plants? pany confronts when pondering an international sales strategy is: to ex- port, or not to export? While exporting is often the least risky method of 2. Why do you think there are no robots or other automation needed selling overseas, it frequently involves significant transportation, logis- in the plant to do the production? tics, and tax-related costs that may make it uneconomical when com- pared with foreign manufacturing. On the other hand, foreign manufac- turing, while potentially a more competitive way of entering an overseas market, has its own bugaboos. Political instability, fluctuating market CASE STUDY (LOCATION PLANNING ANALYSIS) conditions, and the huge capital costs to set up an overseas Screens 5-6 of 16 130%
Transcribed Image Text:6:11 PM ENG 4/8/2021 File Tools View Ivan Case Study ^N1 - Word X UPLOAD BLOCKED We ran into a problem with this file and can't save any new changes. Please save a copy to avoid losing your work. Save a Copy it all," says Andrew Stokes, a UAW craftsman who works in underbody When the board-games company Bob Moog created in 1985 sought and heavy repair. "I'm one of the first 12 to work on the Prowler," he growth through global expansion 2 years later, Moog faced the usual two added. "The Prowler is a little easier to assemble but a little harder to re- options: export the product or manufacture it overseas for local distribu- pair. The Viper seems to be a lot more open than the Prowler is-the car tion. Moog chose the latter. "We decided for a number of reasons to seems to be built around the engine and trans and that makes it a little manufacture our board game, '20 Questions,' in Holland for distribution harder to work on." Thanks to such an interest from car buyers in this throughout Europe," said Moog, president of University Games Corp. of plant, Daimler Chrysler allows Viper customers to pick up their car as it Burlingame, CA. R ecently the company expanded into Australia. Unlike comes out of the final assembly, to meet the employees who built it, and the European ventures, however, Moog decided that it was more eco- to drive it home from the plant instead of from the dealership. nomical to import its products into Australia from the U.S. manufacturing facility because "anticipated initial sales in Australia just did not warrant a manufacturing operation there at this juncture," Moog said. "If sales Questions: pick up down the line, we may then examine local manufacturing." 1. What is difference between assembly plant compared to more typi- Moog's dual strategy is not unique. One of the toughest questions a com- cal auto assembly plants? pany confronts when pondering an international sales strategy is: to ex- port, or not to export? While exporting is often the least risky method of 2. Why do you think there are no robots or other automation needed selling overseas, it frequently involves significant transportation, logis- in the plant to do the production? tics, and tax-related costs that may make it uneconomical when com- pared with foreign manufacturing. On the other hand, foreign manufac- turing, while potentially a more competitive way of entering an overseas market, has its own bugaboos. Political instability, fluctuating market CASE STUDY (LOCATION PLANNING ANALYSIS) conditions, and the huge capital costs to set up an overseas Screens 5-6 of 16 130%
6:11 PM ENG 4/8/2021 File Tools View Ivan Case Study ^N1 - Word X UPLOAD BLOCKED We ran into a problem with this file and can't save any new changes. Please save a copy to avoid losing your work. Save a Copy we've just added another 10,000 square feet to improve our process flow and improve our quality. And it provides a little more space since we CASE STUDY (PROCESS SELECTION) added the Prowler. "It will allow us to do a better job of reaching the Prowler's ultimate capacity. It's about a $1 million expansion-for other large plants, that's nothing but for a facility this size it's a lot of money. Daimler Chrysler's plant that builds Viper and Prowler is the Motor City's "hottest ticket." The Viper-Prowler plant is not your typical Detroit as- sembly operation. Instead of mass production techniques using robots, "For me it's a dream job. I've been a 'hot rodder' all my life and build it's "craftsman-style" production for hand-building Vipers and Prowlers. race cars and racing engines, and how many hot rodders get to lead the With mass production, Daimler Chrysler can produce up to 75 cars per team that runs the only hot-rod plant in the world?" Conner Avenue is a hour. With late shifts, Daimler Chrysler's nearby Jefferson North Assem- throwback to early 20th Century, pre-mass assembly techniques. Vipers bly Plant can crank out 1,114 Jeep Grand Cherokees in a 24-hour work- and Prowlers are built on parallel 720foot assembly lines, each with a day. By comparison, the Viper plant produces 13 Vipers a day and has a dozen or so workstations, where the cars are hand-assembled. In a rarity, capacity for 20 Prowlers. At 392,000 square feet, the Viper plant is a there are no robots in this plant. When each workstation completes its boutique compared to most massive auto plants, such as Saturn Corp.'s task, the entire line advances to the next station. So in those 45-minute Spring Hill, Tenn., manufacturing complex, which is 5 million square feet. stops, the employees are relatively free to grab a cup of coffee or talk to The Jefferson North plant has 2.4 million square feet. " We're not the tour groups, something they could never do in a plant cranking out 73 biggest plant in the area, but we've got the best workforce and build the units per hour. The automaker's flexible labor agreement with UAW Lo- most exciting products-the Plymouth Prowler and Dodge Viper," said cal 212 means everybody working in the plant is a "craftsman" and can Hinckley, who has spent 33 years working in various Detroit auto plants solve any problem anywhere on the line-in most plants, job categories for General Motors and Chrysler and is known for building and driving are sharply defined and protected. Most large auto assembly plants still "kit car" racers. "We're expanding our plant, too. We also are part of the require 2,000 or more workers, while the Viper plant needs only 260. revitalization of Detroit. "Our plant was about 380,000 square feet and "We do everything from forklift driving to mopping and sweeping, we do Screens 3-4 of 16 130%
Transcribed Image Text:6:11 PM ENG 4/8/2021 File Tools View Ivan Case Study ^N1 - Word X UPLOAD BLOCKED We ran into a problem with this file and can't save any new changes. Please save a copy to avoid losing your work. Save a Copy we've just added another 10,000 square feet to improve our process flow and improve our quality. And it provides a little more space since we CASE STUDY (PROCESS SELECTION) added the Prowler. "It will allow us to do a better job of reaching the Prowler's ultimate capacity. It's about a $1 million expansion-for other large plants, that's nothing but for a facility this size it's a lot of money. Daimler Chrysler's plant that builds Viper and Prowler is the Motor City's "hottest ticket." The Viper-Prowler plant is not your typical Detroit as- sembly operation. Instead of mass production techniques using robots, "For me it's a dream job. I've been a 'hot rodder' all my life and build it's "craftsman-style" production for hand-building Vipers and Prowlers. race cars and racing engines, and how many hot rodders get to lead the With mass production, Daimler Chrysler can produce up to 75 cars per team that runs the only hot-rod plant in the world?" Conner Avenue is a hour. With late shifts, Daimler Chrysler's nearby Jefferson North Assem- throwback to early 20th Century, pre-mass assembly techniques. Vipers bly Plant can crank out 1,114 Jeep Grand Cherokees in a 24-hour work- and Prowlers are built on parallel 720foot assembly lines, each with a day. By comparison, the Viper plant produces 13 Vipers a day and has a dozen or so workstations, where the cars are hand-assembled. In a rarity, capacity for 20 Prowlers. At 392,000 square feet, the Viper plant is a there are no robots in this plant. When each workstation completes its boutique compared to most massive auto plants, such as Saturn Corp.'s task, the entire line advances to the next station. So in those 45-minute Spring Hill, Tenn., manufacturing complex, which is 5 million square feet. stops, the employees are relatively free to grab a cup of coffee or talk to The Jefferson North plant has 2.4 million square feet. " We're not the tour groups, something they could never do in a plant cranking out 73 biggest plant in the area, but we've got the best workforce and build the units per hour. The automaker's flexible labor agreement with UAW Lo- most exciting products-the Plymouth Prowler and Dodge Viper," said cal 212 means everybody working in the plant is a "craftsman" and can Hinckley, who has spent 33 years working in various Detroit auto plants solve any problem anywhere on the line-in most plants, job categories for General Motors and Chrysler and is known for building and driving are sharply defined and protected. Most large auto assembly plants still "kit car" racers. "We're expanding our plant, too. We also are part of the require 2,000 or more workers, while the Viper plant needs only 260. revitalization of Detroit. "Our plant was about 380,000 square feet and "We do everything from forklift driving to mopping and sweeping, we do Screens 3-4 of 16 130%
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