Case Study:the New Customer Decision (pininfarina-mitsubishi) 3m1t2k

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u Company Background u Position in 1990s u Operations at Pininfarina u Improvement Initiatives in 1990s u Deal with Mitsubishi u Questions u Future Scope

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In 1930 Battista ´Bininµ Farina founded.

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Specialized in design and production of custom and small series automobile.

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Greatest success- producing revered designs such as Ferrari Berlinetta Dino and Alfa Romeo Spider Duetto.

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In 1966 after death of Farina, name of business was changed to Pininfarina.

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Throughout the 1960s and 1970s it continued to design and produce unique automobiles- Ferrari Berlinetta, the Lancia Flaminia, the Austin A 40 and Morris 1100.

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6iche manufacturer costs for small volume products were lower than those usually achieved by volume assemblers.

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Twice less capital and fixed cost.

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General purpose equipments and fewer other specialized tools needed.

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Fewer mechanically performed operations and lower level of automation.

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Do not use continuously moving assembly line, had ´stop and go processµ.

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MA6 FACT RI6G OPERATIO6S AT PI6I6FARI6A è

Pininfarina produced both bodies and fully assembled cars at two major production facilities:

1. Grugliasco 2. San Giorgio

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Rapidly phased out the production of bodies and assembling

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Committed toward new models

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Operational improvement in quality , cost and deliverability

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Manufacturing performance improve

ÊORKFORCE A6D Q ALITY I6ITIATIVES §

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In 1991, Pininfarina had about 650 supplier. Typically, competitive bids were among supplier and volumes were split among several supplier.

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By 1993, the number of supplier had been reduced to 350

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Advantages :- increase frequency of deliveries and increase quality

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Disadvantages:-decreasing total amount of combined inspection

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By 1996, the number of supplier had been increased again to 450 driven by

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Improved purchase price and inventory levels. sed new production model

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Manage customer needs

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Assemble vehicles

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Design

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A perfect blend of beauty and technological innovation...

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Engineering

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From definition of styling to release of the product...

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Manufacturing

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Pininfarina is a leader in the production of niche vehicles...

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ARC

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The Pininfarina Aero-acoustic and Aerodynamic Research Centre.

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Pininfarina Extra

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Enter the Pininfarina world of the product and interior design.

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Special Projects

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Looking for the car of your dreams? Pininfarina will create it for you.

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Consultancy

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In this section you can find all the information about the services offered by Pininfarina Consulting

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Customers Alfa Romeo, Ferrari, Ford, Mitsubishi, Volvo and many other leading names on the world automotive scene..



Car, automobiles, design, style, history, heritage, collectors, dream car, engineering, production, Pininfarina, vehicles, niche, creativity, prototypes, show car.

§ Ferrari, Maserati, Fiat , Lancia, Alfa Romeo, Peugeot, Citroen, Rolls-Royce, Daewoo, Honda, Hyundai, General Motors, Brilliance, AviChina ² Hafei, Chery, JAC, Ford, Jaguar, Volvo, Mitsubishi

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6ew production facilities would have to be acquired and equipped for Mitsubishi production.

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Additional expenses related to the paint shop which would have to run for additional shift.

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The Pajero would offer a two tone painting option, and this also posed some problem for the paint shop.

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Space is required to dry and store vehicles in between painting stages.

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Bertrandi knew that Mitsubishi consider its own quality standards to be very high and that it focus differ from Pininfarina·s existing customers.

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Some in the company believed the Mitsubishi might demand the defect level to be ¼th of Pininfarina.

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Experience shows that different customers considered different things in deciding what was the defect.

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Some customers specified the quality as harness of engine compartment, while other manufacturer only functionality was considered.

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Major mechanical parts like engines would be supplied by the production in Japan either from Mitsubushi itself or from one of its suppliers.

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Other parts are sourced from Europe.

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Mitsubushi agreed to own the inventory until it arrived at Pininfarina.

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Pininfarina has some experience in long distance supply chain.

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Pininfarina calculated that 13 days shipping would be required.

Ê 600 additional Direct Êorkers m 200-240 Indirect Êorkers m Full tilization of present Resources Possible m Ramped Down existing Contracts business m

Q&A 1. Should Pininfarina Accept the Mitsubishi Business or 6ot ? Yes ! ÿ

Learning Opportunity

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Chance to improve Operation system and make compatible with global competition

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Promises tilization of extra facilities available due to retirement of old models

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Chance to be a GLOBAL LEADER in 6iche manufacturer

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Easily Adaptable Japanese Model with Pininfarina·s Operation.

2. Pininfarina·s Possible Strategies for future Competition Should Adopt the Japanese Operation system as Japanese manufacturers are the big threat in European Auto market at that time May Identify Itself as Global 6iche Manufacturer by getting order from almost all Volume manufacturers. Same time should t Venture for deg with big players of Auto market

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