Mistubishi Powerpoint No copyright intended.

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