Gm Gravatai Plant - 735 Words

MAKE-TO-ORDER AUTOMOBILES AT GM’S GRAVATAI PLANT Case Study Analysis Executive Summary: This case study emphasizes GM’s Gravatai plant and the Brazilian Auto Industry to sell cars that were made-to-order for customers and connect assembly line and the internet-based sales system. Its purpose is to help bring a revolution to the automotive industry and the establishment of a new production model. The GMBG case study looks at the â€Å"Blue Macaw† Gravatai Plant in Brazil. This plant has revolutionized the auto industry in Brazil by becoming the first plant to sell cars directly from the customer. The plant uses an online ordering system to facilitate sales directly to consumers at a lower cost than before. The plant utilizes a make to†¦show more content†¦The simplicity of the product is an important feature to meet this target. This was going to prove to be a daunting task, because the lead time in a traditional plan to deliver a customized car is about 5 to 6 weeks because GM cars are built to order in Brazil. Efficiency of Production ï‚ § Three different logistics were used and ï‚ § Management helped ensure communication and quick solutions to problems Changes in Distribution and Future Plans for GM’s Gravatai Plant ï‚ § Reducing inventories and reducing space taken up in dealerships. ï‚ § This created a higher efficient distribution of all make-to-order vehicles Problems with Auto Purchasing ï‚ § Loss of buyers experience ï‚ § Product does not meet the expectation of customer ï‚ § Lack of guidance from sales representatives who are experts ï‚ § Huge expense on returns and ï‚ § Lack of personal customer service Possible Dealership Reaction Dealers will consider this as a threat because: ï‚ § Losing control of commissions ï‚ § Less chance to connect with customers ï‚ § Less chance to track the customers’ consumption process. Alternative Courses of Action/ Recommendation Just-In-Time Facility ï‚ § Manufacturing only takes place on a made-to-order basis by the customer, ï‚ § Supplies are received only as they are needed and eventually will be used for the car being made and ï‚ § Low inventory cost Advantages of Having Each Supplier on Site ï‚ § Supplier is an active partner ï‚ § Reduce cost ï‚ § IncreaseShow MoreRelatedGmbg Case Study1218 Words   |  5 PagesMacaw† Gravatai Plant in Brazil. This plant has revolutionized the auto industry in Brazil by becoming the first plant to sell cars directly from the customer. The plant uses an online ordering system to facilitate sales directly to consumers at a lower cost than before. The plant utilizes a make to order system and has all of its suppliers housed at the GMBG plant working together to produce the vehicles. The case study highlights the history of the Brazilian automotive industry, the GMBG plant itself