Table of Contents
Executive Summary
Part 1 Executive Summary
Issues Identification
Part 2 Issues Identification
Environmental & Root Cause Analysis
Part 3 Environmental & Root Cause Analysis
Alternatives and/or Options
Part 4 Alternatives
Recommendation
Part 5 Recommendations
Implementation
Part 6 Implementation Plan
Monitor & Control
Part 7 Monitor and Control
Part 8 Conclusion
Part 1 Executive Summary
Navistar was a worldwide leader in the manufacturing medium and heavy trucks for 17
consecutive years in the North America market.
Navistar’s premium conventional trucks were produced at the Chatham assembly plant,
which had almost 14 years experience in producing Navistar’s premium line since 1983.
Navistar had forecasted increased industry demand for heavy and medium trucks in 1998.
Especially, the Chatham assembly plant’s customers had strict requirements to the truck’s
quality and delivery date. As the assembly supervisor in Chatham, Andy Ramsz
encountered the interior trim quality and delivery problem for the truck. Andy had begun
to gather data on the interior trim supply problem and he got the crucial reasons for these
problems occurred. These reasons absolutely affected the Navistar’s internal supply
process, increased the extra cost as well as reduced the efficiency of the supply
management.
According to the reasons identified for the trim supply problem, my decision is to set up
the improved procedure focused on problems identified and take plans to enhance
efficiency and productiveness of trim supply chain so as to relieve the difficulty of
shortage problem and meet customers’ requirement accurately.
Part 2 Issues Identification
Navistar’s Issues:
Long cycle time of truck design and enormous accessories
Nature: Tactical Timing: Long term Short Term
Navistar provided premium trucks ranged in design from no frill models to highly
customized units. At any given time, customized units could represent 50-80 percent of
production volumes, customers spent amount of time to design and months deciding on
various options and accessories, which easily to cause the delay or quality problem or any
other factors that failed to meet customer’s expectations due to the complication.
The interior trim quality and delivery problem
Nature: Tactical and Strategic Timing: Long term and Short Term
Interior trim was provided for each truck in the form of”kits” that contained a specific
group of sequenced interior trim parts necessary to complete each truck. When “kits” were
delivered to Navistar assembly, problem arose when assemblers attempted to assemble the
trim into truck, were not able to do so because of missing or inappropriate interior trim
parts. therefore, the subsequent consequences of trim parts reordering, additional material
handling, post-assembling resulted in the premium on direct materials, labor costs and the
