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<ul><li> 1. An Operations ManagementAnalysis and Audit Case ofMitsubishi Motors PhilippinesCorporationAlvarado Ang Tinio - Pinpin</li></ul> <p> 2. in theQuality andExcellenceautomotive industryOnly one picture comes to mind.Logo of three diamonds 3. Mitsubishi motorsPhilippinescorporation 4. CompanyProfile 5. SHORT HISTORY Established: February 20, 1963 Chrysler Philippines CorporationState of theart technology in automotive manufacturing painting technologyToday Hikasaburo Shibata Supplier of world class products and services 6. Mitsubishi Motors Sojitz Corporation 7. A = L E153,305 50,299 104,836These are all In millions of dollars 8. 857EMPLOYEESOrtigas Avenue Extension,Cainta, RizalLuzon, visayas, MindanaoSta. Rosa, Laguna, Naga, Davao 9. IndustryBackground 10. GDP31.5% of the GDP is the Industrial SectorOutput:P368 billion(3.8% of total gdp)26% growth in sales!(July 2014)* Major companies in the industry areindependent 11. Development Trends96,5881. High demand of commercial vehicles and light trucks44,5822. Increasing every year1,07935,85157,796108,32448,3281,50040,23164,261120,000100,00080,00060,00040,00020,0000CommercialVehicle (CV)PassengerVehicleTrucks andBusesAsian UtilityVehicleLight Trucks2011 Sales (in units) 2012 Sales (in units) 12. Development TrendsToyota MotorsPhilippinesIsuzuPhilippinesCorporation7%Ford MotorsPhilippines9%Mitsubishi 52%MotorsPhilippinesCorporation26%Honda CarsPhilippinesInc.6%Value Share of Total SalesMitsubishi Motors capture 26%of the TotalShares! 13. CoreStrategiesand KeyPrograms 14. 1) 50, 000 unitsproduced in the year20142) 20% market share3) PLANT expansion4) Miragegoals 15. Objectives Shoki hoko (corporate responsibility) Shoji Komei (Integrity) Ritsugo Boeki (Global Perspective) Driving pleasure and safety 16. CurrentPerformance 17. BalancedDriving Pleasure and Safety forCustomersFinancialCustomer InternalProcessLearningAnd Growthscorecard 18. Products 19. CarsSUV and UV 20. mitsubishiProductsCustomer FriendlyCompetitiveHandled Well 21. Process 22. Knock down and local partswarehouseMETALFINISHINGPaint shop FinalassemblyBodyWelding 23. TesterlineQualityAuditDealer 24. Assembly process of L300 Chassis,Trim, Final Line Main assembly of vehicle: 6minutes per station Observation: 4 minutes, 18seconds.NoteEngine: assembled on the chassis on aseparate line(3 minutes, 3 seconds)focus 25. Spray Bot8-DipPaint ProcessSpot Welding Robot 26. CapacityPlanning 27. DemandForecasting Annual Management Plan Target 10-20% back up for allowances Production of vehicles done 3 months in advance 28. ProposedMethodologyL o n g r a n g eforecastingEconomicSee how the economy will affect thecompanyTechnologicalBeing updated can help speed up the processes 29. CapacityAnalysisL300 and AdventureProduction13, 500 vehicles pershift per vehicleTotal: 54, 000 unitsLancerProduction4,000 vehicles pershift per vehicleTotal: 8, 000 units 30. CapacityAnalysis Produce 62,000 vehicles per year Design Capacity: 100, 000 vehicles Utilization: 62% Bottleneck: Vehicle Assembly of 70 units(30 units of L300, 30 units of Adventure, 10 units of Lancer) 31. FacilitiesLayout 32. The Compound layout of the MMPC PlantBU St ockSer vi ceTr ainingPar t sCenterTotal Land Area 190,295 sq.m.Plant 1(Bldg Area: 40,013 sq.m.)Plant 2(Bldg Area: 42,111 sq.m.)BUSt ock 33. Floor Plan of the Vehicle assemblyflow 34. Work Systems 35. monoHaving the state of mind in creating QUALITY PRODUCTS and HAVING THEPASSION to improve it even moreZukuri 36. Kaizennewapproach 37. Murairregularity of movementMuridifficulty of taskImportance of MINIMAL bodymovementsutilizemovementsMuDaidleness of the worker 38. Rawmaterialssuppliers Wip inventory Jit FIFOinventoryBureau ofCustoms 39. Recommendations 40. KEYFINDINGS1 Plant62% utilizationDemandforecasting basedon volume targetsInventory in Bureauof CustomsBottleneck at VehicleAssembly with 70 unitsLocal suppliers inCavite and Laguna 41. PrioritizationOperations Management Areas:(1) Utilization and Scheduling(2) Layout Design(3) InventoryFinalRankingInsufficien1t Raw Materials2 Capacity utilization anddemand forecasting3One plant4 Longer delivery time 42. Pareto Analysis 43. RecommendationsSOLUTION #1Find local suppliersSOLUTION #2Purchase rawmaterials earlier thanusual 44. Find localsuppliersStrengthsLess idle time,shipping costs,more carsproducedWeaknessesDifficult to findlocal supplierswith same qualityOpportunitiesIncreasecompetitivenessThreatsRelocation toother ASEANcountries 45. PurchaseRaw MaterialsearlierStrengthsDelay isavoidedWeaknessesForecastingand holdingcostsOpportunitiesRaw materialsreadily available;higherproductivityThreatsMore vulnerableto suddenchanges 46. Main recommendationPurchase raw materialsin advance 47. Justifications No investment required May increase Holding Costs Raw Materials helD up at the bureau of customs Forecasting changes Costs can be handed by the company 48. Monitoring Plan Effectiveness Changes needed Holding and inventory costs Forecasting techniques </p>