Implementation of best organizational practices: Case of Mexican tier one supplier

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Type de publication:

Conference Paper

Source:

Gerpisa colloquium, Kyoto (2014)

Résumé:

Implementation of best organizational practices: Case of Mexican tier one supplier

This article is based on the case of a tier one company dedicated to the production of leather for automotive seats. The objective of the study was to analyze the best organizational practices that the company had implemented. The methodology source used was from a case study of a Mexican company that was acquired by a company with Japanese capital in 2005, with corporate headquarters in Detroit, United States. The analysis was conducted through interviews and a survey among the company’s personnel.
One of the most important effects, resulting from the merger, was the suppliers company’s production growth, due to the addition of the new clients. Currently, their main client is Toyota (40 to 60 percent of their total production) and among their important clients they consider Honda, Nissan, General Motors and Volkswagen. The use of the Toyota Production System was the main detonator for the growth. The requirements of the Japanese company had a positive impact on the supplier company. It started to grow within a structured frame, to work with continuous improvements, and to promote vocational training growth. “Standardized work” and “Kaizen”, or continuous improvement, were among the most important practices implemented. This latter philosophy is associated with the use of engineering tools to promote productivity, such as the “seven wastes” concept that allows the identification and elimination of faults in the processes.
Regarding employment and their practices, the supplier company established a Development Program that focused on technical as well as human aspects, with the purpose of promoting vocational training among employees.
It is important to mention that throughout the productive process, and in certain key production phases, the company established “Poka-yokes” in order to avoid human errors or accidents. The company employs the JD Edwards system, in which the orders generated and the processes the orders follow until shipment to clients are feed into the system.
The company also implemented reverse auction, a technique that Toyota employs on suppliers worldwide, in which it annually requests suppliers to reduce their price for the product they provide.
Although the majority of the processes are considered traditional, the company operates with methods that contribute to problem solving through organizational standards focused on excellence and complete quality.

Keywords: best practices, suppliers, tier one, Mexico

Texte complet:

Implementation of best organizational practices: Case of Mexican tier one supplier

This article is based on the case of a tier one company dedicated to the production of leather for automotive seats. The objective of the study was to analyze the best organizational practices that the company had implemented. The methodology source used was from a case study of a Mexican company that was acquired by a company with Japanese capital in 2005, with corporate headquarters in Detroit, United States. The analysis was conducted through interviews and a survey among the company’s personnel.
One of the most important effects, resulting from the merger, was the suppliers company’s production growth, due to the addition of the new clients. Currently, their main client is Toyota (40 to 60 percent of their total production) and among their important clients they consider Honda, Nissan, General Motors and Volkswagen. The use of the Toyota Production System was the main detonator for the growth. The requirements of the Japanese company had a positive impact on the supplier company. It started to grow within a structured frame, to work with continuous improvements, and to promote vocational training growth. “Standardized work” and “Kaizen”, or continuous improvement, were among the most important practices implemented. This latter philosophy is associated with the use of engineering tools to promote productivity, such as the “seven wastes” concept that allows the identification and elimination of faults in the processes.
Regarding employment and their practices, the supplier company established a Development Program that focused on technical as well as human aspects, with the purpose of promoting vocational training among employees.
It is important to mention that throughout the productive process, and in certain key production phases, the company established “Poka-yokes” in order to avoid human errors or accidents. The company employs the JD Edwards system, in which the orders generated and the processes the orders follow until shipment to clients are feed into the system.
The company also implemented reverse auction, a technique that Toyota employs on suppliers worldwide, in which it annually requests suppliers to reduce their price for the product they provide.
Although the majority of the processes are considered traditional, the company operates with methods that contribute to problem solving through organizational standards focused on excellence and complete quality.

Keywords: best practices, suppliers, tier one, Mexico

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