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Interior JV: Teething Problems of a Manufacturing Operation in China  
Product Ref: 11/502C Company: N/A

Product Type: Case Industry: Automotive

Related Product(s): Teaching Note
In 2006, European automotive supplier Interior Group and China-based China Textile established Interior JV, a joint venture in China to produce seat covers for automakers manufacturing in China. After a slow start, the joint venture began to secure orders and was moving towards a breakeven point. Nonetheless, it was still faced with teething problems, especially in product development time, internal quality and on-time delivery. Though Interior JV had adopted many processes that were used by its European mother company, operating in the foreign environment of an emerging market continued to pose challenges for the joint venture. Now Interior JV must address these problems in order to stay on top of the game.
Functional Area : Accounting & Control
Production & Operations Management

Learning Objective: This case provides an opportunity for students to explore the use of value-chain analysis in improving the operation of Interior JV. A value-chain analysis consists of examining specific activities, examining how each step adds value to the customers, defining the root causes of the problems in these steps, then establishing improvement measures with performance indicators. The Process Value Chain is carried out on three specific areas of operations?development time, internal quality and on-time delivery?after ranking various out-of-control problems. A ctivity performance measures are then set up in the form of a scorecard to help to guide further improvement activities.
Length: 6 pages Country: China (People's Rep. of)

Pub. Year: 2011 Level of Difficulty: 2
This product type is available in the following language(s):      English
Related Information: N/A
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