Premium Essay

Make to Order Gravatai

In: Business and Management

Submitted By felipepony
Words 4737
Pages 19
Make-to-Order Automobiles at GM’s Gravataí Plant1
Introduction
In December 2007, 7 years after the launching of the Chevrolet Celta, Roberto Tinoco, the plant director, proudly recalls the inauguration of the Gravataí plant in mid-July 2000, an event that caught the eye of professionals and the academia both in Brazil and abroad. The core notion was: To sell cars made to order for final consumers. The project, known internally by the handle “blue macaw,” is considered to be a true landmark for the world’s automotive industry.
The Gravataí plant brought about a true revolution in how cars are made, from its concept to the direct-sale model, through its production management system. The lessons learned during the experiment are relevant because they contribute to the establishment of a new production model, helping put the world’s automotive industry on a new path.
The plant was working at full capacity especially during the first years, and the production during this period is shown in the following table. The extraordinary increase in production in the last 7 years is evident. The idea was to deliver a car assembled as per the consumer’s own specifications in the shortest possible time, at a cost lower than that of the traditional make-to-stock mass-production system.
2000
Year
Production 24,007

2001
91,407

2002
2003
2004
2005
2006
2007
109,916 115,304 136,114 135,097 140,994 192,272

The Background of the Brazilian Automotive Industry
In the 90s, three big experiments were done in Brazil: The Gravataí GM complex
(GMBG), the Ford Camaçari complex, and Volkswagen plant in Resende, each with specific characteristics. The Ford and GM plants manufactured passenger cars and Volkswagen made light trucks, also built-to-order like Gravataí plant. In this case, Volkswagen put all the suppliers responsible for the assembly of their…...

Similar Documents

Free Essay

Order

...OPORD 01 (DEATH OF A GENTELMAN) References: a) Operation Order (OPORD) 01-10 ALC-RAID b) Map Series: Fort Benning, 1:50,000 c) TIMEZONE: Romeo (Local) TASK ORGANIZATION1/A/3-15 MECH | | | | | 1/1/A | 2/1/A | 3/1/A | HQ/1/A | Bradley 1 | Bradley 2 | PSG | PL | | | Bradley 7 | FO TEAM | | | | Bradley 6 | 1. SITUATION. Recent HUMINT sources have indicated that there is a large Insurgent’s Cell operating in the town of McKenna. The insurgents are conducting disruption operations in our AO by planting IEDs and conducting sniper operations to harass and kill Coalition Forces as they conduct their daily operations. The 3rd Battalion 11th Infantry Regiment will conduct a Raid on the suspected insurgent cell in the town of McKenna to prevent further disruption of daily operations, to seize any bomb making material, capture or kill insurgents, and collect any intelligence information that could lead to further elimination of the insurgent threat in our AO. B.A. ENEMY. 2.2.1. DISPOSITION: Insurgents appear to have established a base of operation in the town of McKenna IOT disrupt the freedom of movement of Coalition Forces responsible for providing security, training, and operational support to the ANA in the AO. The insurgents are currently occupying two buildings on the eastern side of the town, grid GL06528372.They are using one building as a safe house and the other to produce IEDs. This group of insurgents is focused on...

Words: 3660 - Pages: 15

Free Essay

Make

...system for following household rules. Staff and client talked about her losing her temper and decreased impulsiveness and inattentiveness. Staff encourages the caretaker to allow the client to use a time out intervention in which she is able to settle down to think about behavioral alternatives. Staff encourage client to always use the proper way to express her feelings. Staff and client develop behavioral modification program. Staff assist client develop a plan with the caregiver that will begin to implement the behaviors of a responsible parent. Staff observes client communication with caretaker and provides prompts, anticipatory guidance redirection and positive reinforcement. Staff communication with the client and her family in order to monitor incidents of dishonesty and then discuss with the family. Staff encourages client and caretaker in how to have an open communication between them and educate them in effective ways in which they can communicate without displaying negative behaviors. Staff assist caretaker in how to positive reinforcement properly instructing the client. Staff and client, caretaker discussed an appropriate ways to show respect towards one another through modeling and role playing. Staff assist client in identifying behaviors that demonstrate low self-esteem and ways to change negative behaviors. Staff and client participate in community integrated activities to practice ways in which client will be able to improve her level low......

Words: 1306 - Pages: 6

Premium Essay

Order Winning and Order Qualifying

...Order Winners & Order Qualifiers According to Slack & Lewis (2011, p.56), “order qualifiers” are the factors that enable the products or services to enter the market. However, “order qualifiers” do not assure the competitiveness, the products or services provided must contain the “order winners” characters in order to win from the competition. Professor Hill from London Business School described (cited by Helms, 2006) that “order qualifiers” and “order winners” as: the previous one keeps the business running while the latter one wins more or new business. Simply, my understanding is that “order qualifiers” are the keys to open the door of the market, and “order winners” are the vital elements to improve the market position and continuous success. Slack & Lewis (2011, p.47-52) explained the concepts of “the five generic performance objectives”. They are:  “quality”, “speed”, “dependability”, “flexibility” and “cost”. Some of the performance objectives play more important roles in the impact of the organization’s market position (the “external effect”) than the others. There are several reasons why it is significant that when mangers establish the relative important performance objectives, regarding to external effect, should base on the “order qualifiers” and “order winners” concept. First of all, defining “order qualifiers”, managers are able to understand the minimum standard their products or services should meet in order to keep the company stay in the market,......

Words: 491 - Pages: 2

Premium Essay

Warning: Contents May Make You Want to Order a Pizza

...WARNING: CONTENTS MAY MAKE YOU WANT TO ORDER A PIZZA Scene One: Once Upon a Dinnertime Mary is hanging out with a few friends and her brother. She wants to order pizza tonight, but can’t afford to do so all by herself. She won’t be able to get what she wants unless she can convince all of the others to chip in for pizza, but she has her skills from English class to help her in her mission! Our story begins… Mary: (writes on whiteboard) “Thesis: We should order a couple of pizzas for dinner tonight.” Mary: (looks over at the people watching TV) Guys? What do you think? Chris: Maybe. What do the rest of you… hmm, maybe we’d better wait for a commercial. Well, I’m paying attention. Why pizza? Mary: Uh… hmm. Chris: Also, since when do you have a whiteboard in your living room? Mary: (writes) “Pizza was a regular dinner in my family, growing up. My brother and I were always happy when our parents said, ‘Pizza night!’ Both our parents worked, which meant that there was often no one with much time to cook. They enjoyed the break from cooking, and we all enjoyed the pizza (and the break from washing dishes). We’d only have it once every couple of weeks, though, so we never got tired of it. Basically, pizza is great.” Chris: o_O What was that? Mary: I was showing that pizza is delicious! …And time-saving and stuff! Chris: …Where did you talk about pizza being delicious? I just saw a story. Mary: In the middle! I said we all enjoyed......

Words: 1768 - Pages: 8

Premium Essay

Make

...product undergoes physical -chemical transformations and lacks assembly operations, therefore raw materials cant easily be obtained from the final product, examples include: paper, cement and nylon. * Part production (ex: cars and ovens) comprises both manufacturing systems and assembly systems. In the first category we find job shops, manufacturing cells, flexible manufacturing systems and transfer lines, in the assembly category we have fixed position systems, assembly lines and assembly shops (both manual and/or automated operations) Another possible classification[12] is one based on Lead Time (manufacturing lead time vs delivery lead time): Engineer to Order, Purchase to Order, Make to Order, Assemble to Order and Make to Stock. According to this classification different kinds of systems will have different customer order decoupling points (CODP), meaning that Work in Progress cycle stock levels are practically nonexistent regarding operations located after the CODP (except for WIP due to queues). The concept of production systems can be expanded to the service sector world keeping in mind that services have some fundamental differences in respect to material goods: intangibility, client always present during transformation processes, no stocks for "finished goods". Services can be classified according to a service process matrix: degree of labor intensity (volume) vs degree of customization (variety). For high degree of labor intensity we have Mass Services......

Words: 1955 - Pages: 8

Premium Essay

Production System Make to Order Process Design

...Production System Make to Order process design The important objective of Toyota production System is to not manufacture in excessiveness and to avoid lack of uniformity in production (Toyota Production System, 2013). Toyota production System tries to eliminate waste of over production, eliminate waste of waiting time and to avoid waiting time of already manufactured products. Toyota production System uses "Make to Order" process design. All the manufactured inventory is stored in Toyota 'Store Shelf'. Any Toyota work center which needs any particular parts for its assembling station would go to the inventory storage point and pick up the required quantity off the shelf. The inventory storage point or the 'store shelf' regularly stocks the shelf just with limited quantity of parts (Toyota Production System, 2013). Once the work center withdraws the quantity from store shelf, Toyota production System manufactures same quantity of those particular parts and restocks the Store-Shelf. Manufacturing for a particular product starts at Toyota units only after order is received from a store shelf and only enough quantity is manufactured to fulfil the current order. That means the store shelf is always stocked to satisfy any new order and at the same time manufacture enough quantity to fill the store shelf. Toyota follows a pull-type operation for manufacturing. That is, Toyota production System manufacturing is being pulled by demand (Make to Order, 2013). In Toyota manufacturing,......

Words: 275 - Pages: 2

Premium Essay

Gm Gravatai Plant

...MAKE-TO-ORDER AUTOMOBILES AT GM’S GRAVATAI PLANT Case Study Analysis Executive Summary: This case study emphasizes GM’s Gravatai plant and the Brazilian Auto Industry to sell cars that were made-to-order for customers and connect assembly line and the internet-based sales system. Its purpose is to help bring a revolution to the automotive industry and the establishment of a new production model. The GMBG case study looks at the “Blue Macaw” Gravatai Plant in Brazil. This plant has revolutionized the auto industry in Brazil by becoming the first plant to sell cars directly from the customer. The plant uses an online ordering system to facilitate sales directly to consumers at a lower cost than before. The plant utilizes a make to order system and has all of its suppliers housed at the GMBG plant working together to produce the vehicles. The case study highlights the history of the Brazilian automotive industry, the GMBG plant itself, the production strategy/manufacturing process as well as the distribution strategy of this revolutionary and profitable division of GM South America. Introduction: The core notion was: to sell cars made-to-order for final consumer. This project was considered to be a true landmark for the world’s automotive industry. The Gravatai Plant brought about a true revolution in how cars were made, from its concept to the direct-sale model, through its production management system. The lessons learned during the experiment were relevant......

Words: 750 - Pages: 3

Free Essay

Order of Pride

...secure the safety of the prepares in doing this project. To our parents who always guide and give words of wisdom to inspire us in doing our best in preparing the feasibility study as well as giving their both financial and emotional support To our beloved intelligent instructress and business plan Professor, Sandy Minez, who has greatly shared her knowledge to us with patience and diligence in helping us meet the necessary works for the completion of our feasibility Study. To Ms. Alona Doce our class adviser,for giving her support and some formulas used in the said study and also to our Department Head Mrs. Agnes D. Buday. And to all the Herccor Family. To the preparers, they who have given a lot of efforts and consumed so much time to make the completion of the feasibility study possible and successful within the given time. Together, we sincerely acknowledge and give thanks the person/s mentioned above who have brought the success of doing this Feasibility Study. We are very grateful for this wonderful accomplishment. TABLE OF CONTENTS * EXECUTIVE SUMMARY..................................................6 * Name of Principals * Business Name * Location * Business Description and Goals * INTRODUCTION...........................................................8 * Marketing Aspects.......................................................10 * Demand * Supply * Existing Market Situation * Projected......

Words: 5708 - Pages: 23

Premium Essay

How Far Sociologists Agree That Shared Norms and Values Make Social Order Possible

...How far sociologists agree that shared norms and values make social order possible Social norms are group-held beliefs about how members should behave in a given context.Sociologists describe norms as informal understandings that govern society’s behaviors. Social values are what we consider to be important in social interactions between people. Functionalist theory assumes that a certain degree of order and stability is essential for the survival of social systems. Without it, society may expose to chaos and disorder.Functionalists believe that social order exists in the concept of value consensus to a large extent. Functionalists believe that without collective conscience/ shared values and beliefs, achieving social order is impossible and social order is crucial for the well-being of society. They believe that value consensus forms the basic integrating principle in society. And if members of society have shared values they therefore also have similar identities, this helps cooperation and avoids conflict. Marx's theories of what he believes is a capitalist society were that of two separate classes - The rich ruling class and the working class or in layman's term the bosses and the workers. The bosses are seen as the ruling class as they exploit the workers by forcing them to over produce supplies, which when after paying the workers a menial wage, they sell off the overstocks to make a profit. This can and always will cause conflict between the two classes because......

Words: 377 - Pages: 2

Premium Essay

Therefore in Order to Make Sure That They Are the Highest Competitor in the Market, or to Match the Other Strong Competitors, a Significant Amount of Money Will Need to Be Spent, Using a Marketing Budget, for Effective

...reposition itself, it needs to create awareness of its new strategy, which undoubtedly will involve a lot of expenses. This could be done through promotion, involving the media, such as a television campaign which would be expensive and therefore involve a significant budget. Not only will it need to promote its new strategy in order to gain more customers, but the case study informs us that Sound and Vision are up against a lot of competition, from both online retailers and supermarkets.    Therefore in order to make sure that they are the highest competitor in the market, or to match the other strong competitors, a significant amount of money will need to be spent, using a marketing budget, for effective and persuasive advertising and promotions, in order for customers to visit the shop and spend money there, rather than elsewhere. Sound and Vision’s target market is the 15-24 year old, however at the moment they are most popular with the 25-34 year old market. Amina wants to recruit younger staff in the stores to emphasise the focus on the 15-24 year old target market- however this will come at a cost. A significant marketing budget would be helpful in order to recruit new staff, however the business will be relying on the staffs customer service and knowledge which is not dependant on a marketing strategy....

Words: 340 - Pages: 2

Premium Essay

The Order of Things

...Essay about ’The Order of Things’ Love can hit you like a tornado. Both create an aftermath in which you can often find yourself totally reset, with new ground rules to play by. The short story ‘The Order of Things´, written by Judy Troy investigates themes such as the resetting of a mindset, the value of our short lives, but most of all: love. This essay seeks to focus on the setting, the two main characters, their relationship and symbols to underline certain points of the text. The setting in this short story takes us to the small town Worland, which is located in the state of Wyoming, USA. As with most small towns in the United States, we get the feeling that it is a town where people have close relations with one another. For instance, the first line of the story mentions “…the first inning of the Worland Lutheran softball game…” as the place where our characters Lucy and Carl meet. The fact that it is a Lutheran softball game points towards Worland being a religious town as well. The story takes place over about half a year, from August to around February. This makes for some interesting use of the weather, which is used to underline certain points and moods: “Then in bed, with the sound of rain on the thin roof, they talked about their marriages.” (p. 8 l. 60) Everyone knows the sound of rain dazzling on a thin roof. It screams intimacy. Intimacy is something Carl has never really been used to dealing with. He is the result of a rushed marriage without intimacy:......

Words: 817 - Pages: 4

Free Essay

First Order and Second Order Cybernetic

...Introduction The purpose of this essay paper is to critically compare the epistemology governing the first and second order cybernetic approaches. (Epistemology is defined by Becvar and Becvar (2013), as the study of how we know what we know, and how we can make valid knowledge claims based on a particular theoretical framework. It focuses on the assumption that underline a particular framework and whether the knowledge claim made by that theory is logically consistent with its own assumption). In doing so, the student will answer the following questions: 1. Name and define the first-order cybernetic principles as described in the book The first order cybernetic is also known as simple cybernetic. Becvar and Becvar (2013), describe the first order cybernetic metaphorically by using the black box. They stated that it is a system whose operation we attempt to understand by observing what goes into and what comes out of it, analysis of inputs and outputs. In addition, we place ourselves outside the system as observers of what is going on inside the system. We are more interested in understanding the interaction and relationships within the system. The observer stays outside of the system being observed and views him/herself as being in a position to facilitate adjustment in the system without taking into consideration his/her participation. The following are the principles of this approach as stated in Becvar and Becvar (2013): * Recursion: this principle......

Words: 3307 - Pages: 14

Premium Essay

Sap Make to Order

...Make-To-Order Production Implementation Considerations Make-to-order production is a process in which a product is individually manufactured for a particular customer. In contrast to mass production for an unspecified market where a material is manufactured many times, in make-to-order production a material is created only once though the same or a similar production process might be repeated at a later time. You can use make-to-order production: For branches of industry or products where a small quantity of products with a large number of different characteristics are manufactured When a product has to be assembled particularly for a sales order Stockkeeping is not usually carried out for products that are made to order. In companies using make-to-order production, the demand program only determines the production area, in which various variant types are produced. Depending on how you track the costs associated with make-to-order production, there are two ways to process make-to-order items during sales order processing: Make-to-Order Production: Cost Management Using the Sales Order Make-to-Order Production: Cost Management Using the Project System Using Assembly Orders You can also use a sales order to create an assembly order for a make-to-order item. The assembly order triggers the automatic creation of a production order, planned order, or network and provides you with an accurate delivery schedule. The schedule is based on the availability and the......

Words: 259 - Pages: 2

Premium Essay

Https: //Prezi.Com/-3aqd87pwmpu/Make-to-Order-Automobiles-at-Gms-Gravatai-Plant/

...a factory of 15,000 workers can yield Flextronics 1 up to US $310,000 in annual savings. Suppliers may also 1 Based on turnover and replacement costs per worker from “Corporate Social Responsibility in China’s Information and Communications Technology (ICT) Sector,” July 12, 2007, by Business for Social Responsibility. http://www.eicc.info/downloads/FIAS_ICT_Report_ENG.PDF Business Benefits to HP Suppliers from SER Practices – A China Case Study Page 2 see long-term business benefits from certain environmental process or technology investments. Resource reduction can reduce costs, and ―designing for the environment‖ can help create differentiated products, which can enhance revenues through price premiums, increased orders, or both. While continuous improvement of conformance should remain a primary goal, suppliers should implement practices such as the ones mentioned — those that are simply ―good for business.‖ To better understand business success stories going forward, consistent evaluation is needed. Certain standard SER metrics and potentially related business benefits should be measured over time, either in absolute values or percentage change. This will enable suppliers to focus resources on high-impact projects. To incentivize suppliers to execute high-return SER projects and improve overall compliance, customers should establish cooperative mechanisms to reward all of these efforts. For example, customers and suppliers can consider some......

Words: 7770 - Pages: 32

Free Essay

Order

...Iraq for 28 days in support of Task Force 6-30 • Downgraded 17 reports in order to increase Iraqi Police collaboration in the process to sentence criminals • Proof-read 5+ documents after being translated to ensure it made sense Mar 2010 through Oct 2010 United States Air Force Bagram, Afghanistan All-Source Production Section Combined Joint Special Operations Task Force (CJSOTF-A) • Deployed 202 days in support of CJSOTF-A mission, accomplished key objectives and assisted in the neutralization of over 600 combatants • Delivered over 50 current intelligence briefings for CJSOTF-A Senior leadership therefore aiding in key Commander decisions • Cross-coordinated with diverse analysts contributing to the production of 200+ reports in order to prepare the Operation Enduring Freedom (OEF) warfighters • Answered time-critical warfighter requirements and supported 30+ targets disrupting current and future enemy operations and Relayed 90+ requirements to the mission managers • Analyzed enemy atmospherics and performed daily trend analysis ensuring the success of the Village Stability Operations (VSO) Jan 2008 through Mar 2010 United States Air Force Wright Patterson AFB, Ohio Operational Intelligence Analyst Space and Missiles Group • Provided analysis of 50 countries/entities space programs as a member of the Defense Intelligence Space Order of Battle (DISOB) Rest of World Team • Processed status and development......

Words: 842 - Pages: 4