...Business Benefits to Hewlett-Packard Suppliers from Socially and Environmentally Responsible (SER) Practices in China A Case Study November 2008 By: Sonali Rammohan Socially and Environmentally Responsible Supply Chains Program Global Supply Chain Management Forum Stanford Graduate School of Business Business Benefits to Hewlett-Packard Suppliers from Socially and Environmentally Responsible (SER) Practices in China Executive Summary In recent years, the electronics industry has made important improvements in social and environmental responsibility (SER) conformance among first-tier suppliers, due in part to the standardization of SER practices set forth in the Electronics Industry Code of Conduct (EICC). Hewlett-Packard (HP), the first company in the industry to implement a Supplier Code of Conduct, has taken a comprehensive approach Delta Electronics Delta Electronics by educating suppliers on how to achieve compliance, conducting individual audits and third-party joint audits, and emphasizing continuous improvement. This approach is being disseminated now to sub-tier suppliers, which should improve standards throughout HP’s supply chain. What should motivate suppliers to achieve full SER compliance? Are there business benefits to meeting and exceeding minimum standards? This paper explores the business case for SER by looking at the operations of three HP suppliers with significant operations in China — Flextronics, AU Optronics (AUO), and Delta...
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...19 Make-To-Order Automobiles at GM’s Gravataí Plant 1 Introduction In December 2007, seven years after the launching of the Chevrolet Celta, Roberto Tinoco, the plant director, proudly recalled the inauguration of the Gravataí plant in mid-July 2000, an event that caught the eye of professionals and 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,” was considered to be a true landmark for the world’s automotive industry. The Gravataí 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 because they contributed 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 table below. The extraordinary increase in production in the last seven 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. Year 2000 2001 2002 2003 2004 2005 2006 2007 Production 24,007 91,407 109,916 115,304 136,114 135,097 140,994 192,272 The Background of the Brazilian Automotive Industry In the ’90s...
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...19 Make-To-Order Automobiles 1 at GM’s Gravataí Plant Introduction In December 2007, seven years after the launching of the Chevrolet Celta, Roberto Tinoco, the plant director, proudly recalled the inauguration of the Gravataí plant in mid-July 2000, an event that caught the eye of professionals and 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,” was considered to be a true landmark for the world’s automotive industry. The Gravataí 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 because they contributed 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 table below. The extraordinary increase in production in the last seven 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. Year Production 2000 2001 2002 2003 2004 2005 2006 2007 24,007 91,407 109,916 115,304 136,114 135,097 140,994 192,272 The Background...
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...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...
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...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. I thought that this was a very interesting and informative case study. I personally love the idea that is used at the GMBG plant in Brazil. The system works perfectly for the type of environment GM is selling their car and for the customer they are selling to. This system has a very significant impact on the supply chain. Not only does the customers ability to order directly from the customer affect the broad supply chain between the focal company and its suppliers, but also this system creates a unique internal supply chain at the manufacturing site itself. From a broad prospective, it has eliminated some of the points along the customer side of the supply chain. GMBG CASE STUDY 1. Having suppliers at the GMBG facility allows GM to improve their production of the Celta. It allows for GM to bring in suppliers...
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...Table of Contents Executive Summary………………………………………………….2 History of General Motors…………………………………………...3 General Motors Exports to Argentina………………………………3 General Motors Exports to Brazil…………………………………...4 Trade Agreement between South America………………………...5 General Motors and WW II…………………………………………...6 General Motors in South Africa………………………………………7 General Motors in China………………………………………………7 The Chevrolet Brand…………………………………………………..8 Conclusion………………………………………………………………9 Works Cited……………………………………………………………..10 Executive Summary General Motors (GM) is one of the big three auto makers in the world and they have built some of the most famous vehicles on the road which have met all different types of consumer’s needs. General Motors has taken an unexpected turn in the past several years for the worse due to the changing economy that is affecting the world. Many economists claim that the United States has been pressed into a recession that started with the housing crisis in 2008. From this crisis restricted a major banking crisis that has led to financial institutions implementing tighter lending guidelines for businesses. This has greatly affected General Motors since the company relies heavily on short term returns. Out of all the auto making companies during the crisis of falling sales and crashing returns, General Motors was hit the hardest and filed bankruptcy. The fact that General Motors has such a large portfolio is working directly against...
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...OPERATIONS MANAGEMENT REPORT ON 1 INDEX * Introduction ………………………………………………………………………………3 * 2 INTRODUCTION COMPANY PROFILE Volkswagen is a manufacturer of passenger and commercial vehicles. The company markets its cars under the following Brands: Volkswagen, Skoda, Bentley, Bugatti, Audi, Seat and Lamborghini. The company is headquartered in Wolfsburg, Germany and employs about 300,100 people. The Group operates 106 production plants in 19 European countries and a further eight countries in the Americas, Asia and Africa. Every weekday, 572,800 employees contribute to produce cars, to keep continuous relationships with customers, suppliers and partners in 153 countries. Volkswagen is a manufacturer of passenger and commercial vehicles. The company’s key products and services include the following: Products: Passenger cars Vans Light trucks Buses Pick ups Campers Brands: Volkswagen Audi SEAT Lamborghini Skoda Bentley Bugatti Some of the company’s data are given below: (* this data is for Volkswagen AG only) Revenues by Geography: Europe, Volkswagen’s largest geographical market, accounted for 44.1% of the total revenues in the fiscal year 2006. Revenues from Europe reached €46,211 million in 2006, an increase of 9.4% over 2005. Germany accounted for 27.2% of the total revenues in the fiscal year 2006. Revenues from Germany reached €28,544 million in 2006, an increase of 10.5% over 2005. North America accounted for...
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