Case Study On Agile Electric

1962 Words8 Pages
The growing competition in global markets today has led industries and corporations to find different approaches for reducing production and manufacturing costs to keep their competitive edge. This case highlights the issue of quality in the product which was supplied by Agile Electric. Automek Inc. is a multinational company based in US, whereas Agile Electric is based in Chennai, India and makes auto components such as electrical parts for the automotive industry. Agile Electric plant is recognized to produce and supply electrical motor and parts both for local and international automotive clients. In line of their massive success and growth, “Agile had implemented a few of the best practices in manufacturing in its operations, such as workplace…show more content…
Based on Automek experience with Agile being the trusted supplier, they were awarded the design and manufacture of a new product, actuator assembly. Automek considered Agile as their key supplier even though Agile is inexperience in developing and producing this new product. Automek provided no help and transfer process knowledge down to Agile in order to save money.
Agile after considering the requirements, realized this product requires sub suppliers to develop and other critical requirements. Automek provided support to Agile that they will find global supplier for the electronic components, assessment and confirmation for critical suppliers which based locally on behalf of Agile. In return, Agile capitalized the assembly line to develop the new product. The main component required to build the actuator assembly is printed circuit board (PCB) and Injection-molded plastic parts. This being a new product developed by Agile with no previous experience, they decided to have sub-suppliers to supply these product to them. ECPL is an existing supplier to supply and assembled PCB and the new product required it. BIPL another sub supplier is to supply PCB
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Further, Automek had also incurred losses due to production stoppages at its end and the resources spent in dealing with this problem on a daily basis for several months. Automek had to decide whether or not to pass these charges to the supply chain, and if so, to what extent? Various business aspects had to be considered. Option 2: Automek had to decide whether or not it should invest in resources to transfer process knowledge and improve the processes of its tiered suppliers, Agile and ECPL, to avoid any more problems in this product in the future.” (Page 7, Agile

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