Logistics

Paper Summary:

This paper discusses an important example of how proper logistics planning saved an icon of the automotive industry, Porsche Automobiles. In particular, the paper discusses logistics at Porsche in 1992, and the accession of Wendelin Wiedeking, who continues as Porsche's chairman to this day. The paper notes that at the time of Wiedeking's accession from his position as manufacturing manager, Porsche's stunning success depended on logistics within its plant and in its relationships with its parts suppliers.

Outline:
Executive Summary
Introduction
Background Information on Moving and Storing Specific Materials and Products
Projecting Modern Logistics Thinking
Description of Current Methods in the Industry
Trends in the Industry and how these might Affect the Organization
Challenges and Issues with Moving and Storage
Conclusion

From the Paper:

"Porsche faces some difficulty in performing the same feat in Zuffenhausen for two reasons: (1) it is still a niche manufacturer, with fewer than 100,000 total units (even counting production in Leipzig and Bratislava), and (2) the Zuffenhausen plant is difficult to expand, and to automate further.While Porsche's short-term strategies of sharing manufacturing facilities has helped, it may be due for a consolidation in the future. At present, final assembly takes place in four places (including Valmet in Finland for Boxsters). With the addition of a fifth line and concomitant increases in expected production, Porsche may want to consider a consolidation at a "Greenfield" plant, in which it can consolidate some of its assembly."

Sample of Sources Used:

• Bennet, S. "Porsche Boxster." PistonHeads. November 29, 2004. http://www.pistonheads.com/doc.asp?c=105&i=9542 (accessed October 18, 2007).
• Clanton, B. "DaimlerChrysler aims to make Jeeps faster, better at Toledo facility." Detroit News, February 22, 2004: n.p.
• Clarke, C. "The history of production systems in the automotive industry." In Automotive Production Systems and Standardisation, by WA and Bihn, M Muller, n.p. Heidelberg: Physica-Verlag HD, 2005.
• IBM. "Parts and service management sollution from IBM." IBM. 2007. http://www-03.ibm.com/industries/automotive/doc/content/solution/2853600108.html (accessed October 18, 2007).
• Lewis, A. "Smart lesson in quality: carbuilders and suppliers strive together in Smartville Nation." Automotive Industries, 2004: n.p.

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