114 research outputs found
Rolling Out a "World Car": Globalization, Outsourcing and Modularity
This article presents a case study of the ?roll-out? of a "world car" (the Fiat Palio).
Based on original fieldwork carried on by the author in 6 countries (Italy, Brazil,
Poland, Turkey, Argentina, India), it describes one of the most diverse international
strategies in the recent history of the auto industry and represents an interesting terrain
for analyzing how, in relationship with globalization, outsourcing and modularity play
an increasing role in auto design and manufacturing.
The article addresses the following research questions: 1) Does the "world car"
approach represent a sustainable and robust strategy? 2) Is there a relationship between
globalization, modularization and outsourcing in the auto industry? 3) Can these
concepts be used to map out future developments and transformations in the contracting
structure of the auto industry?
This field study shows that producing and selling in many different places a car that
involves absolute cross-country identity of interior/exterior design, parts, and quality
standards (a "world car") represents an innovative and sustainable strategy. It also
highlights that the robustness of this strategy decreases as the international scope and
time span of the ?global? project increase.
The Fiat Palio story also represents the first in depth analysis of what are, at the firm
level, the dynamics that link globalization, outsourcing and modularization in the auto
industry. The article confirms that modularization a) is a vaguely defined and
ambiguously used term in the auto industry; b) is a broad concept, applicable and
applied to a number of systems (product design, manufacturing, work organization,
etc.); c) has only recently moved its first steps in auto design and manufacturing.
The embryonic applications of modularity in design, manufacturing and organization
reported in this study are used to map out future developments and transformations in
the product architectures and organizational architectures of the auto industry.
The article also suggests that, within a global strategy, modularization and outsourcing,
though remaining conceptually distinct, tend to become, in practice, increasingly
inseparable. The modularization of design, production and organization is intimately
related to how, while trying to save costs, reduce risky investment, and manage the
institutional constraints deriving from globalization, OEMs and suppliers partition their
tasks, defining a new international division of labor
Global sourcing in the automotive supply chain: The case of Fiat Auto "project 178" world car
Objective of this paper is to present how Fiat Auto has developed a peculiar and
innovative global sourcing model in conjunction with the rolling out of its "world car"
project ?178?. Differently from other OEMs, that have designed vehicles with common
"global" underbody platforms adapting body, trim levels and ride characteristics to local
conditions, Fiat Auto "world car" concept and globalization strategy is more ambitious
and complex, since the standardization of the 5 models stemming from the 178 platform
involves absolute cross-country identity not only of interior/exterior design and contents
but also of quality levels, robustness and compliance with European rules in terms of
safety and pollution.
The international supply chain supporting this globalization process can be interpreted
as a double network of operations and transactions: the ?internal? supply chain, where
"makes" are exchanged between Fiat Auto plants; the ?external? supply chain where
?buys? are purchased by Fiat Auto plants from suppliers. In the "external" supply chain,
Fiat Auto manages, in a global sourcing perspective, a relatively stable group of
suppliers, though in a competitive perspective, in order to guarantee cross-plant and
cross-market component uniformity and worldwide efficiency.
After depicting Fiat Auto global sourcing policies and the related organizational
structures and processes, the paper highlights achievements and challenges of the
model.
The paper argues that Fiat's global sourcing, while putting competitive pressure on
suppliers by means of worldwide information transparency on prices, quality and
service, works as a performance improvement stimulator within OEM-first tier suppliers
partnership relationships ("voice" mechanism), rather than a pure and simple supplierswitching
device ("exit" mechanism)
Global sourcing in the automotive supply chain:The case of Fiat Auto
Objective of this paper is to present how Fiat Auto has
developed a peculiar and innovative global sourcing model in
conjunction with the rolling out of its "world car" project
"178". Differently from other OEMs, that have designed
vehicles with common "global" underbody platforms adapting body,
trim levels and ride characteristics to local conditions, Fiat
Auto "world car" concept and globalization strategy is more
ambitious and complex, since the standardization of the 5 models
stemming from the 178 platform involves absolute cross-country
identity not only of interior/exterior design and contents but
also of quality levels, robustness and compliance with European
rules in terms of safety and pollution.
The international supply
chain supporting this globalization process can be interpreted
as a double network of operations and transactions: the
"internal" supply chain, where "makes" are exchanged
between Fiat Auto plants; the "external" supply chain
where "buys" are purchased by Fiat Auto plants from
suppliers. In the "external" supply chain, Fiat Auto manages, in
a global sourcing perspective, a relatively stable group of
suppliers, though in a competitive perspective, in order to
guarantee cross-plant and cross-market component uniformity and
worldwide efficiency. After depicting Fiat Auto global sourcing
policies and the related organizational structures and
processes, the paper highlights achievements and challenges of
the model. The paper argues that Fiat's global sourcing, while
putting competitive pressure on suppliers by means of worldwide
information transparency on prices, quality and service, works
as a performance improvement stimulator within OEM-first tier
suppliers partnership relationships ("voice" mechanism), rather
than a pure and simple supplierswitching device ("exit"
mechanism)
Does losing temporary workers matter? The effects of planned turnover on replacements and unit performance
This study examines the performance consequences of planned turnover. In particular, we investigate the departure of temporary workers due to the expiration of their contracts. We reconcile the contradictory predictions of collective turnover research—that any type of worker’s exit impairs organizational performance—and of contingent work research—that temporary workers’ exits improve organizational performance because they provide flexibility. We argue that the planned turnover of temporary workers has an inverted U shaped relationship with unit performance because it combines flexibility benefits and disruption costs. We also argue that the costs of planned temporary worker turnover are moderated by the proportion and the firm-specific experience of their replacements. We test these arguments using longitudinal monthly data from a leading multinational company in the food and beverage industry, and find support for our hypotheses. The study suggests that managers hiring temporary workers should consider the cost of losing them and challenges the widespread scholarly and managerial assumption that temporary workers are disposable resources
Complementarities and organizational (mis)fit:a retrospective analysis of the Toyota recall crisis
During the past six decades, the Toyota Motor Company established a ‘lean’ production and management system (the Toyota Way), which has become an iconic template for a high performing and learning organization. The massive recall crisis of 2009/2010 distorted Toyota’s image of a role model for a lean organization heavily. This case study analyzes retrospectively how the carmaker deviated from their original organizational configuration that was distinctive for its lean management system. We illustrate how managerial decisions geared towards extensive growth and globalization distorted complementarities among central elements of the Toyota Way, and ultimately caused organizational misfit. Whereas most of the literature on complementarities and organizational fit has emphasized processes of adaptation and evolution toward internal fit or misfit that are triggered by exogenous environmental changes, our case study of Toyota shows that external misfit can also be the unintended consequence of deliberate changes in the firm’s system of interdependent choices
Not Doomed to Death: A Map of Small Firms' Business Models in the Italian Textile Apparel Industry
Arnaldo Camuffo
International Motor Vehicle Program
Cambridge, MA 02139
and
Bocconi University
Milan 20136, Italy
[email protected]
And
Roberto Pozzana
University of Padua Padova 35123, Italy
[email protected]
And
Andrea Vinelli
University of Padua
Padova 35123, Italy
[email protected]
And
Laura Benedetti
Società per gli Studi di Settore
Rome 00143, Italy
[email protected]
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