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Essay / Research Paper Abstract
This 10 page paper considers how the automotive industries changing and the way the ERP may be used in order to facilitate the changes of a more integrated model that uses a higher level of outsourcing. The bibliography cites 5 sources.
Page Count:
10 pages (~225 words per page)
File: TS14_TEauterp.rtf
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Unformatted sample text from the term paper:
as a result of the development of SUV there is still a scenario of over capacity; up to 25% on North America, and up to 30% in Europe. The need
for change is seen as imminent, the cost of maintaining the over capacity has resulted in a desire to sell high numbers of cars, however, this also meant high discounting
and as such profitability has fallen. The models that have been emerging are of the smaller factories that are more flexible, with capacities in the region of 200,000 cars
a year rather than the larger 750,000 cards. Honda may be seen as taking a lead, with an ability to change production overnight simply by changing the software that controls
the process. The method that appears to be emerging is one where there are changes in the value chains and greater co-operation between the car companies and suppliers. This is
the key behind the COVISINT system that was backed by companies such ad Ford and GM, with later joiners such as Renault -Nissan and PSA. The reason to join in
is the perception of the savings that the scheme may bring about. It creates a system where there is a pooling purchases and tendering. The single system that is used
by the different companies changes the structure of the value chain and changes the way that transaction take place making them more effective. This will also aid the development
of a new model for car manufacturers. The manufactures themselves have been changing the way they work, disintegrating, and looking to out source more and more work. The focus will
then become the design and manufacture, with the parts brought in. Even the assembly work may be farmed out to external sources. When we consider the ease with which Honda
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