An Operations Management
Analysis and Audit Case of
Mitsubishi Motors Philippines
Corporation
Alvarado – Ang – Tinio -...
in the
Quality and
Excellence
automotive industry
Only one picture comes to mind.
Logo of three diamonds
Mitsubishi motors
Philippines
corporation
Company
Profile
SHORT HISTORY
• Established: February 20, 1963
• Chrysler Philippines Corporation
State of the
art
• technology in au...
Mitsubishi Motors Sojitz Corporation
A = L E
153,305 50,299 104,836
These are all In millions of dollars
857
EMPLOYEES
Ortigas Avenue Extension,
Cainta, Rizal
Luzon, visayas, Mindanao
Sta. Rosa, Laguna, Naga, Davao
Industry
Background
GDP
31.5% of the GDP is the Industrial Sector
Output:
P368 billion
(3.8% of total gdp)
26% growth in sales!
(July 20...
Development Trends
96,588
1. High demand of commercial vehicles and light trucks
44,582
2. Increasing every year
1,07...
Development Trends
Toyota Motors
Philippines
Isuzu
Philippines
Corporation
7%
Ford Motors
Philippines
9%
Mitsubi...
Core
Strategies
and Key
Programs
1) 50, 000 units
produced in the year
2014
2) 20% market share
3) PLANT expansion
4) Mirage
goals
Objectives
• Shoki hoko (corporate responsibility)
• Shoji Komei (Integrity)
• Ritsugo Boeki (Global Perspective)
• Dr...
Current
Performance
Balance
d
Driving Pleasure and Safety for
Customers
Financial
Customer Internal
Process
Learning
And Growth
score...
Products
Cars
SUV and UV
mitsubishi
Products
Customer Friendly
Competitive
Handled Well
Process
Knock down and local parts
warehouse
METAL
FINISHING
Paint shop Final
assembly
Body
Welding
Tester
line
Quality
Audit
Dealer
• Assembly process of L300
• Chassis,Trim, Final Line
• Main assembly of vehicle: 6
minutes per station
• Observation:...
Spray Bot
8-Dip
Paint Process
Spot Welding Robot
Capacity
Planning
Demand
Forecasting
• Annual Management Plan Target
• 10-20% back up for allowances
• Production of vehicles done 3 mon...
Proposed
Methodology
L o n g r a n g e
forecasting
Economic
See how the economy will affect the
company
Technologic...
Capacity
Analysis
L300 and Adventure
Production
13, 500 vehicles per
shift per vehicle
Total: 54, 000 units
Lancer ...
Capacity
Analysis
• Produce 62,000 vehicles per year
• Design Capacity: 100, 000 vehicles
• Utilization: 62%
• Bottle...
Facilities
Layout
The Compound layout of the MMPC Plant
BU St ock
Ser vi ce
Tr aining
Par t s
Center
Total Land Area 190,295 sq.m.
Pl...
Floor Plan of the Vehicle assembly
flow
Work Systems
mono
Having the state of mind in creating QUALITY PRODUCTS and HAVING THE
PASSION to improve it even more
Zukuri
Kaizen
new
approach
Mura
irregularity of movement
Muri
difficulty of task
Importance of MINIMAL body
movements
utilize
movements
MuDa ...
Raw
materials
suppliers
• Wip inventory
• Jit
• FIFO
inventory
Bureau of
Customs
Recommendatio
ns
KEY
FINDINGS
1 Plant
62% utilization
Demand
forecasting based
on volume targets
Inventory in Bureau
of Customs
Bo...
Prioritization
Operations Management Areas:
(1) Utilization and Scheduling
(2) Layout Design
(3) Inventory
Final
Ran...
Pareto Analysis
Recommendations
SOLUTION #1
Find local suppliers
SOLUTION #2
Purchase raw
materials earlier than
usual
Find local
suppliers
Strengths
Less idle time,
shipping costs,
more cars
produced
Weaknesses
Difficult to find
lo...
Purchase
Raw Materials
earlier
Strengths
Delay is
avoided
Weaknesses
Forecasting
and holding
costs
Opportunities...
Main recommendation
Purchase raw materials
in advance
Justifications
• No investment required
• May increase Holding Costs
• Raw Materials helD up at the bureau of customs
...
Monitoring Plan
 Effectiveness
 Changes needed
 Holding and inventory costs
 Forecasting techniques
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Pom project defense presentation

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Published on: Mar 4, 2016
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Transcripts - Pom project defense presentation

  • 1. An Operations Management Analysis and Audit Case of Mitsubishi Motors Philippines Corporation Alvarado – Ang – Tinio - Pinpin
  • 2. in the Quality and Excellence automotive industry Only one picture comes to mind. Logo of three diamonds
  • 3. Mitsubishi motors Philippines corporation
  • 4. Company Profile
  • 5. SHORT HISTORY • Established: February 20, 1963 • Chrysler Philippines Corporation State of the art • technology in automotive manufacturing • painting technology Today • Hikasaburo Shibata • Supplier of world class products and services
  • 6. Mitsubishi Motors Sojitz Corporation
  • 7. A = L E 153,305 50,299 104,836 These are all In millions of dollars
  • 8. 857 EMPLOYEES Ortigas Avenue Extension, Cainta, Rizal Luzon, visayas, Mindanao Sta. Rosa, Laguna, Naga, Davao
  • 9. Industry Background
  • 10. GDP 31.5% of the GDP is the Industrial Sector Output: P368 billion (3.8% of total gdp) 26% growth in sales! (July 2014) * Major companies in the industry are independent
  • 11. Development Trends 96,588 1. High demand of commercial vehicles and light trucks 44,582 2. Increasing every year 1,079 35,851 57,796 108,324 48,328 1,500 40,231 64,261 120,000 100,000 80,000 60,000 40,000 20,000 0 Commercial Vehicle (CV) Passenger Vehicle Trucks and Buses Asian Utility Vehicle Light Trucks 2011 Sales (in units) 2012 Sales (in units)
  • 12. Development Trends Toyota Motors Philippines Isuzu Philippines Corporation 7% Ford Motors Philippines 9% Mitsubishi 52% Motors Philippines Corporation 26% Honda Cars Philippines Inc. 6% Value Share of Total Sales Mitsubishi Motors capture 26%of the Total Shares!
  • 13. Core Strategies and Key Programs
  • 14. 1) 50, 000 units produced in the year 2014 2) 20% market share 3) PLANT expansion 4) Mirage goals
  • 15. Objectives • Shoki hoko (corporate responsibility) • Shoji Komei (Integrity) • Ritsugo Boeki (Global Perspective) • Driving pleasure and safety
  • 16. Current Performance
  • 17. Balance d Driving Pleasure and Safety for Customers Financial Customer Internal Process Learning And Growth scorecar d
  • 18. Products
  • 19. Cars SUV and UV
  • 20. mitsubishi Products Customer Friendly Competitive Handled Well
  • 21. Process
  • 22. Knock down and local parts warehouse METAL FINISHING Paint shop Final assembly Body Welding
  • 23. Tester line Quality Audit Dealer
  • 24. • Assembly process of L300 • Chassis,Trim, Final Line • Main assembly of vehicle: 6 minutes per station • Observation: 4 minutes, 18 seconds. Note Engine: assembled on the chassis on a separate line (3 minutes, 3 seconds) focus
  • 25. Spray Bot 8-Dip Paint Process Spot Welding Robot
  • 26. Capacity Planning
  • 27. Demand Forecasting • Annual Management Plan Target • 10-20% back up for allowances • Production of vehicles done 3 months in advance
  • 28. Proposed Methodology L o n g r a n g e forecasting Economic See how the economy will affect the company Technological Being updated can help speed up the processes
  • 29. Capacity Analysis L300 and Adventure Production 13, 500 vehicles per shift per vehicle Total: 54, 000 units Lancer Production 4,000 vehicles per shift per vehicle Total: 8, 000 units
  • 30. Capacity Analysis • 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. Facilities Layout
  • 32. The Compound layout of the MMPC Plant BU St ock Ser vi ce Tr aining Par t s Center Total Land Area 190,295 sq.m. Plant 1 (Bldg Area: 40,013 sq.m.) Plant 2 (Bldg Area: 42,111 sq.m.) BU St ock
  • 33. Floor Plan of the Vehicle assembly flow
  • 34. Work Systems
  • 35. mono Having the state of mind in creating QUALITY PRODUCTS and HAVING THE PASSION to improve it even more Zukuri
  • 36. Kaizen new approach
  • 37. Mura irregularity of movement Muri difficulty of task Importance of MINIMAL body movements utilize movements MuDa idleness of the worker
  • 38. Raw materials suppliers • Wip inventory • Jit • FIFO inventory Bureau of Customs
  • 39. Recommendatio ns
  • 40. KEY FINDINGS 1 Plant 62% utilization Demand forecasting based on volume targets Inventory in Bureau of Customs Bottleneck at Vehicle Assembly with 70 units Local suppliers in Cavite and Laguna
  • 41. Prioritization Operations Management Areas: (1) Utilization and Scheduling (2) Layout Design (3) Inventory Final Ranking Insufficien1t Raw Materials 2 Capacity utilization and demand forecasting 3One plant 4 Longer delivery time
  • 42. Pareto Analysis
  • 43. Recommendations SOLUTION #1 Find local suppliers SOLUTION #2 Purchase raw materials earlier than usual
  • 44. Find local suppliers Strengths Less idle time, shipping costs, more cars produced Weaknesses Difficult to find local suppliers with same quality Opportunities Increase competitiveness Threats Relocation to other ASEAN countries
  • 45. Purchase Raw Materials earlier Strengths Delay is avoided Weaknesses Forecasting and holding costs Opportunities Raw materials readily available; higher productivity Threats More vulnerable to sudden changes
  • 46. Main recommendation Purchase raw materials in 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