Mercedes Benz - Presentation

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					T.1-2 DESCRIPTION OF GENERAL DETAILS
OF THE FIRM AND ORGANIZATION CHART



  T. 3 STRATEGY FOLLOWED TO GET A
        COMETITIVE ADVANTAGE



T. 4-7 QUALITY FUNCTION DEPLOYMENT
      (QFD) AND PROCESS DESIGN



    T. 5 DESIGN AND PRODUCTION




    T. 6 OPERATIONS TECHNOLOGY
DESCRIPTION OF GENERAL
 DETAILS OF THE FIRM AND
    ORGANIZATION CHART
• Headquarter: Stuttgart, Germany
• Production: Argentina, Austria, Bosnia and
  Herzegovina, Brazil, Canada, Egypt, Ghana,
  Hungary, India, Indonesia, Iran, Malaysia,
  Mexico, Nigeria, South Africa, South Korea,
  Thailand, Turke, United Kingdom USA
• Products: Passenger cars, Trucks, Buses and
  vans, Utility vehicles
• 1886 the first car was developed
• Foundation: 1887
• Founders: Gottlieb Daimler
        Karl Benz
• 1894 first serial production
• Cooperation of: Mercedes (Daimler) and
  Benz because of bearing the crisis, until
  the 1926’s unification.
• 1928 the first formula 1 car(“Silber Pfeil”)
  was built
• Cars for middle and upper class. They try
  to offer high quality cars at good relation
  price-quality. Prices vary depending on
  the model you are to buy.

• Their cars are always on the edge from a
  technological point of view since they have
  been produced with the best technological
  tools.
COMPETITORS
  Their strongest competitors come from the
   luxurious car’s market.
  Mercedes is supposed to be the strongest
   one in its field.
  Main Competitors:
         - BMW
        - Audi
        - VW
        - other car manufacture companies (Jaguar,
            Opel (GM) Porsche...
STRATEGY FOLLOWED TO
      GET A COMETITIVE
            ADVANTAGE
THE STRATEGY         THE PORTER’S GENERIC
FOLLOWED BY MERCEDES STRATEGIES:
BENZ TO BECAME
LEADERS IN THE CAR    THE DIFFERENTITATION
MARKET ARE:          STRATEGY (horizontal axis)
                      THE COST LEADERSHIP
 DIFFERENTIATION    STRATEGY (horizontal axis)
 VERSATILITY         STRATEGIC FOCUS AND
 BROAD SCOPE        SCOPE (vertical axis)
Vertical
 axis:
  F
  O
  C
  U
  S




                      Horizontal axis:
           DIFFERENTIATION // COST LEADERSHIP
1. DIFFERENTIATION

   INVOLVES MAKING OUR PRODUCT
    DIFFERENT AND MORE ATTRACTIVE THAN
    THOSE OF OUR COMPETITORS.
1. DIFFERENTIATION
   TO   MAKE A SUCCESS OF A
     GENERIC DIFFERENTIATION
     STRATEGY, WE NEED:
  1. Good research, development and
     innovation.
  2. The ability to deliver high-quality
     products or services.
  3. Effective sales and marketing
GLOBALIZE                       DIFFERENTIATION
   REASONS:
   1. Reduce costs              DRAWBACK:
      (labor, taxes, tariffs,      HANDICAP
      etc.)                        BEING UNIQUE
   2. Improve supply
      chain
   3. Provide better
      goods and services
   4. Understand markets
   5. Learn to improve
      operation
   6. Attract and retain
      global talent
2. THE COST LEADERSHIP
STRATEGY
                                V
   REDUCING ITS ECONOMIC
    COSTS BELOW ITS             E
    COMPETITORS                 R
   THE ABILITY OF A VALUABLE   S
    COST-LEADERSHIP
                                T
    COMPETITIVE STRATEGY TO
    GENERATE A SUSTAINTED       I
    COMPETITIVE ADVANTAGE       L
    DEPENDS ON THAT STRATEGY    T
    BEING RARE AND COSTLY TO
    IMITATE.                    Y
3. FOCUS OR STRATEGIC SCOPE

   THIS DIMENSION IS NOT A SEPARATE
    STRATEGY PER SE, BUT DESCRIBES THE
    SCOPE OVER WHICH THE COMPANY SHOULD
    COMPETE BASED ON COST LEADERSHIP OR
    DIFFERENTIATION.

   THE FIRM CAN CHOOSE TO COMPETE IN:
     THE MASS MARKET WITH A BROAD SCOPE,
     A DEFINED, FOCUSED MARKET SEGMENT WITH A
      NARROW SCOPE.

   MERCEDES            BROAD SCOPE
QUALITY FUNCTION
DEPLOYMENT (QFD)
Customer Room
(What customers want)




 This is the “voice of the customer”
 Done With focus groups
 Must be what customers want and not
  what builder wants
Engineering Room




   This is the HOW room, How can each
    customer attribute be measured and
    evaluated by the company.
Integrator room




 These are the What's’ in rows and How's
  in columns
 This s the relationship room
 Described in 3 ways:
     Strong moderate and weak
Competitors room




   This room assesses how well we are
    meeting customers requirements
Tester Room




 Technical priorities
 Relationship and importance to customer
The Attic
      About quality cost analysis
(http://www.kaner.com/qualcost.
                            htm)
Content
 Definition quality cost
 Different types of Quality cost analysis
    ○ Prevention costs
    ○ Appraisal costs
    ○ Internal failure costs
    ○ External failure costs


 Benefits by analysis cost of quality
 Risks by analysis cost of quality
Definition
• Quality Cost:

  - It is represented by the costs encountered in:
           - preventing
           - finding
           - correcting the defective work

  - They represent in general a significant amount

  - It is affected (reduced) by Total Quality Control.
Prevention costs
The costs encountered in the activities
  preventing poor quality.
Examples:
     Staff training
     Early Prototyping/Requirements analysis
     Clear Specification/unambiguous documentation
     Evaluation of the development tools that will be used
     Coding errors
     Design errors
     Mistakes in the user manuals
     Dadly documented or unmaintainably complex code
            Appraisal Costs:
• The Costs encountered in the activities
  aimed at revealing quality problems.
• Examples:

        Design review
        Testing the raw materials
        Quality control
        Training testers
        Test automation
        Usability testing
        Pre-release out-of-box testing by
        customer service staff
Internal Failure
  Failure costs are Costs that result
  from poor quality:
    •Bug fixes
    •Regression testing
    •Wasted in-house user time
    •Wasted tester time
    •Wasted writer time
    •Wasted marketer time
    •Wasted advertisements
    •Direct cost of late shipment
    •Opportunity cost of late shipment
External Failure Costs
   Customer service costs
   Cost of patching a released product distributing the
    patch
   Examples are:
       Lost sales
       Lost customer goodwill
       Discounts to resellers to encourage them to keep selling the
          product
         Warranty costs
         Preparation of support answer books
         Investigation of customer complaints
         Refunds and recalls
         Coding / testing of interim bug fix releases
         Shipping of updated product
Risks
• Implementation Risks
  – Not being realistic and trying to achieve too much
    too soon.
  – Controversial costs should be left aside, especially
    the first few times the company is trying to
    implement the quality-costs analysis
• Other risks:
  – Looking only from the point of view of the
    company, not looking at the customer’s costs
  – Might result in other types of risk:
     • Customer Dissatisfaction
     • Litigation
   Benefits
• The goal is to reach minimum quality costs at the desired outgoing quality
  level.
• It’s a feed-back mechanism: quality costs data is used by the management to
  make decisions that will impact the quality costs.
• Applications of Quality Costs
    – Measurement Tool:
         • Quality costs provide comparative measurements for evaluating
           quality programs
    – Process-Quality Analysis Tool
         • Quality costs can serve effectively as an analysis tool and point out
           where the problems are
    – Programming Tool
         • Quality costs determine how the available resources to be divided
    – Predictive Tool
         • Quality costs can also be used to evaluate and assure performance in
           relation to the goals and objectives of the organization.
Operations technology in
        Mercedes Benz
Operations technology in
Mercedes Benz

   Products Technologically innovators

   Technology used to manufacture these
    products
CAD in Mercedes Benz

   Two kinds of software
     Mechanical and engineering orientated
      software
     Design in itself software
Production Technology

   The cad design has to be integrated in the
    machine.
            Numerical controled Robots
Internet & more corporative
Software

   Web page informing aabout their
    services, new releases and news.
     www.mercedes-benz.com


   In 1995 they firmed aa contract with IBM
    to support all the corporative software.
    (accounting, net, design)
 DESCRIBE A PROCESS IN
 OUR FIRM USING ANY OF
THE TOOLS FOR PROCESS
               DESIGN.

				
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