Analysis of Johnson Controls Automotive System Group

Document Type:Case Study

Subject Area:Management

Document 1

The success or failure of a company will wholly depend on the strategies the management has formulated. This strategy will determine how the factors of production are going to utilize it, and later determine the growth of the firm (Wernerfelt 171-180). The Johnson controls, automotive system group that based in Georgetown, Kentucky, has experienced different management challenges over the years which in some ways has enable it to grow and come up with new strategies. The Management. Strategic management gives the general direction a company can take. Optimum Utilization of Human Resources. In 1970 and 1980, the company was bent to fully utilize the machine. They didn’t care a lot about the human resource. This lead to the underutilization of human resources, there was more energy spent by the machines which also increased the overall cost of production.

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The company also had to use most of the space which was essentially not required. The Material Requirement Planning (MRP) Computer Program. It was a program that was in place to try to solve the synchrony issue between the two companies. Once in a week, Toyota motor manufactures sent their production plan through electronic data interchange (EDI). The information in EDI contained a two-week firm plan of production and additional eleven weeks out. ASG had to into this data every fried and treat it as master schedule. It made it necessary for a lot of the part to be put in line so that it can fill the anticipated fall in the expected number of the finished product as programmed by the MRP.

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Hence the production cost also increased. So the company had to record the usage and update the database before redepositing the part in the store. Other major problems with MRP were part identification error, typing error, counting error and many other computer-oriented errors. It was found to be stressful since the management had to deal with a larger inventory due to the inaccurate database, and still, the management caught in a surprise. Solution to The Identified Issues. Optimum Utilization of Human Resources. There was an improvement in how the management utilized its labor. The management shifted their attention from maximum machine utilized production to human resource, and labor based management strategies like the gainsharing program. It was meant to ensure the workers put all their lives in the production process because they were also involved in decision-making process.

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It could help reduce the pressure that the two company may experience. It may also provide a more flexible and dynamic platform for sharing ideas. It may also provide ample time for the ASG to come up with a better idea on how to source raw material for their production rather than just dealing with the pressure of meeting production deadline. The improvement of the MPR software is also necessary so that they can minimize the error experience. This could be done by funding research that focuses on coming up with better software. "Fostering quality teaching in higher education: Policies and practices. " An IMHE Guide for Higher Education Institutions (2012): 7-11. Leinwand, Paul, and Cesare Mainardi.  The essential advantage: how to win with a capabilities-driven strategy.

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