Product variety and manufacturing performance: evidence from the international automotive assembly plant study
Article Abstract:
The impact of the increased variety of product lines on the manufacturing performance of automobile assembly plants is examined. Product variety in the automotive sector is being fuelled by a number of factors, including changes in trade structures and energy prices, increasing customer sophistication, and the globalization of the marketplace. Data on 70 car factories from all over the world generated by the Massachusetts Institute of Technology's International Motor Vehicle Program are used to investigate how product variety affects manufacturing performance. Manufacturing performance is measured by consumer-perceived product quality and total labor productivity. Findings indicate that these two variables are not negatively affected by most of the product complexity measures.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1996
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Configurations of interorganizational relationships: a comparison between U.S. and Japanese automakers
Article Abstract:
The dominant configurations of interorganizational relationships within the automotive industry in the US and Japan are investigated. A conceptual model of such relationships based on the fit between information processing requirements and information processing capabilities is formulated by combining three theoretical perspectives: organization theory, political economy and transaction cost economics. The model is used to collect data on 447 customer-supplier relationships in the US and Japan. Findings reveal five naturally occurring configurations of interorganizational relationships: remote relationships, electronic control, electronic interdependence, structural relationships and mutual adjustment. Implications for further research are discussed.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1995
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The impact of product variety on automobile assembly operations: empirical evidence and simulation analysis
Article Abstract:
An empirical and simulation analysis was conducted on General Motor's production facility in Wilmington, DE, in an attempt to assess the impact of product variety on production efficiency and assembly line. Results suggest that option variability creates an adverse impact on corporate productivity. The concept of option variability may only yield robust results when applied as an indicator of product variety in mixed model assembly operations. Despite these disadvantages, option variability has been proven to significantly increase excess labor capacity while optimizing overhead hours, rework and inventory operations. Simulation results further revealed that the adoption of direct labor slack is an efficient alternative to option variability.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1999
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