Fuyao American Factory PDF

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INTERACTIVE CASE STUDY - AMERICAN FACTORYDocumentary about a factory in the USA not well performing so they shut down the factory (people were fired, etc...) then a Chinese company came and bought the factory. They invested big money to produce glass for automotive industry. The company was called ...

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INTERACTIVE CASE STUDY - AMERICAN FACTORY Documentary about a factory in the USA not well performing  so they shut down the factory (people were fired, etc…) then a Chinese company came and bought the factory. They invested big money to produce glass for automotive industry. The company was called Fuyao. 1. Emotions?  SADNESS Chinese created a new job, not the same as before. Today we live in a very dynamic world. If we want to survive we need to be more FLEXIBLE then before (we need to be able to adapt to changes)! Also more resilient, ... This is the result of GLOBALIZATION! We need to deal with the global competition. Chinese company came and created new a job. A job which is not the same as before.  EMPATHY we can relate with the Chinese management way of thinking/ working because he wants to have success + empathy of workers (we can imagine why they are sad and stressed)  CURIOSITY to be open to learn from the others  STRESS locked-down on work. (but in the movie, they show how to work together using technology) When you promise something to your ppl you create a good mode. You need to keep this mood. If you promise to much and then you are not able to keep your promise, then you lose your ppl. 2. What are the main operations topics emerged from the documentary?  Automation  it’s a tech trend. Automation means efficiency, means productivity and also improvement of competitiveness for the company. AUTOMATION in the past was seen as an enemy (fire workers). Today it improves the capability and efficiency of workers. It is an ally of the worker, since it empowers it. Man is not fired because it is necessary to use its cognitive thinks.  Different culture GLOBALIZATION: we need to deal with different cultures. American concept different from the Chinese one. The company was taking the lean manufacturing concept and adapting it to the local ppl. The top manager was an American guy. Later on the new management was Chinese.  Lean management it’s a TOOL to reach the GOAL of high efficiency.  Efficiency high costs. Lean Management came and improved efficiency. Efficiency is a GOAL.  Workers’ rights in terms of working time and safety. American workers were surprised when they visited the Chinese plant. Usa different from Chinese manufacturing system. Discussion also about BREAKS (use or not use the overtime this was also discussed in the movie)  Safety they have to implement it. 3. According to what emerged from the documentary, how would you rank these external factors in terms of relevance? What was the factor that impacted the most the company? 1st CULTURE it is an issue, and it is also the focus of the movie. Then SOCIAL IMPACT is also very important. Chinese training Americans to share their know-how on the production.

ICT not an issue because the work was mainly done manually. 4. N.B. chart referring to the CONTRIBUTION OF OPERATION IN THE STRATEGY we can have a lower level of engagement of operations in the strategy (so operation is there just to be correcting the problem). In the UPSTREAM, operation is the advantage that you have, and therefore is driving the strategy. And of course in the middle we have different stages of the contribution of the operations (OPS STRATEGY EVOLUTION  si tratta di questo grafico, da teoria). There are 4 stages: correct the worst problems, adopt best practice, link strategy with operations, give an operations advantage. In which stage is Fuyao?  STAGE 2: ADOPT BEST PRACTICE. The operation is supporting the implementation of the Fuyao company’s strategy. They were investing a lot in operations. They have a strategy linked to the customer. The product must be safe (because it’s glass), but it’s not the core part of the car, it’s not the part that create to the company differentiation. But they have some customers and they have to DELIVER GOOD QUALITY. From the documentary: “we are competing with others, we need to be the best company”. 5. What factors motivated Fuyao to open a branch in Ohio? Expansion!  they were very well performing in China and in a Globalized world you need to be large! Enter the American market means expansion. 6. What choices have been implemented in order to improve the overall process in the SHORT run?  Training  Changing the top management  Strict supervision related to the fact that they have to learn what they are doing 7. Choices implemented in the LONG run? Automation they came first, they trained ppl. Then in the long term in a second step they invested in automation (very interesting). 8. Voice of the customer: time, quality, price, service, flexibility what are the most important? 1st quality (issue related to safety for customer and for drivers), 2 nd price, 3rd time, 4th service, 5th flexibility 9. What is the hierarchically highest MASLOW’s need satisfied by Fuyao? (pyramid of maslow) The company gave just the very basic need. So the need satisfied by Fuyao is the PHYSIOLOGICAL one (they were offering security to buy food, to have a house… just the very basic needs). 2nd level of need offered: safety. 10. What could be the impact of operation performances in the SHORT term?  Cut costs = More efficiency  increase productivity  Low stress for workers (could be)  Increase quality (IN THE SHORT TERM)

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Not flexibility because we are not looking for it in this case. Impact on the LONG term? Cooperation Americans can learn from Chinese and vice-versa (see the best practices and learn!) Growth in term of production Standardization...