Pininfarina case study group work(final) [compatibility mode]

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Operations Management Case Study: Pinninfarina

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Pininfarina case study group work(final) [compatibility mode]

  1. 1. Pininfarina Case Study Presented by Reshmi Ravindran 212027 (Group Project)
  2. 2. As Renato Bertrandi, what do you see as the most significant challenges facing Pininfarina over the next five years? Quality Bertrandi knew that Mitsubishi consider its own quality standards to be very high and that it focus differ from Pininfarina’s existing customers. Some in the company believed the Mitsubishi might demand the defect level to be ¼th of Pininfarina. Experience shows that different customers considered different things in deciding what was the defect. Some customers specified the quality as harness of engine compartment, while other manufacturer only functionality was considered. Capital Investment New production facilities would have to be acquired and equipped for Mitsubishi production. Additional expenses related to the paint shop which would have to run for additional shift. The Pajero would offer a two tone painting option, and this also posed some problem for the paint shop. Space is required to dry and store vehicles in between painting stages.
  3. 3. Part & Logistics Major mechanical parts like engines would be supplied by the production in Japan either from Mitsubushi itself or from one of its suppliers. Other parts are sourced from Europe. Mitsubushi agreed to own the inventory until it arrived at Pininfarina. Pininfarina has some experience in long distance supply chain. Pininfarina calculated that 13 days shipping would be required Work Force 600 additional Direct Workers 200-240 Indirect Workers Full Utilization of present Resources Possible Ramped Down existing Contracts business
  4. 4. Q3. Why do you think Mitsubishi quality standards focus would differ substantially from those Pininfarina’s existing customers? Bertrandi knew that Mitsubishi considered its own quality standards to be very high and that its focus would differ substantially from those of Pininfarina's existing customers. Some in the company believed Mitsubishi might demand defect levels of one-fourth the level of Pininfarina's current customers. Major mechanical parts, including engines, would be supplied by production in Japan either from Mitsubishi itself or one of its suppliers. Other parts would be sourced from Europe, predominantly from suppliers who Mitsubishi qualified.
  5. 5. 4. Should Bertrandi accept the Mitsibushi business? How should Pininfarina position itself for the future? Yes Learning Opportunity. Chance to Improve Operation System and compatible with global competition. Promises utilization of extra facilities available due to retirement of old models. Chance to be a global leader in Niche manufacturer. Easy adaptable Japanese model with Pininfarina’s Operation. Future Strategies Should adopt Japaenese Operation system as Japanese manufacturers are the biggest threat in European automobile market. Identify itself as Global Niche Manufacturer by getting orders from almost all Volume manufacturers. Same time should Joint venture for designing with Big players of Auto market.

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