Navistar Case Summary

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NAVISTAR: SUPPLY MANAGEMENT Background * Andy Ramsz – assembly supervisor at Navistar’s assembly Plant in Chatham, Ontario. It is Andy’s responsibility to solve the problem on hand * Navistar is experiencing a shortage of interior trim parts for premium conventional trucks. * On Feb 3, 1998 Andy gathers all relevant information about this problem and tries to decide on his next step. * 50-80% of the production volume comprised of customised units. Rest were no frill models. * Company focused on delivering high quality products within the decided time frame. Meeting deadlines was given priority over containing cost. Interior Trim Quality and Delivery Problem * Missing or Inappropriate trim parts. This resulted in: *…show more content…
* Previous problem mainly caused as Trimco was not given sufficient lead time to respond to Navistar’s demands. * Incorrect Specifications (90/1571 – 5.73) * Caused due to incorrect specs received from Trimco or * Inability to respond to last minute changes sent by Trimco * Incorrectly sent parts (147/1571 – 9.35) * Caused Navistar to reorder parts and wait for them * Missing parts that were “robbed” for other interiors (85/1571 – 5.4%) * Management was ok if parts from kits in stock were used to complete products on the line as long as the stock could be replenished in

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