Case Study Analysis Engstrom Auto Mirror Plant has been building mirror wheels for more than 50 years. It’s not only the company that make the wheels, but the quality control program, which ensure that the quality of each and every part manufactured meets or exceeds industry standards.
Case Study Analysis Engstrom Auto Mirror Plant was established with a goal to increase efficiency at its manufacturing plant by identifying problem areas and seeking ways to reduce costs to achieve greater efficiency. The result is a blueprint for cost reduction and increased efficiency that result in higher profitability and a broader spectrum of customer satisfaction. The implementation of an innovative cost control strategy is also employed to reduce costs.
The key to effective cost management is to identify problem areas before they become problems. The plan developed by Case Study Analysis Engstrom Auto Mirror Plant identifies a number of key areas that must be addressed to reduce costs and increase profitability. This case study explores the implementation of the proposed strategic plan.
Case Study Analysis Engstrom Auto Mirror Plant found that the reduction of costs would improve customer satisfaction and quality. What was difficult to quantify was the impact on quality and also the impact on cost. When a firm eliminates spending on inefficient parts it will save money in the short term but reduce quality long term. A reasonable strategy for cost reduction is to adopt cost-cutting measures that improve both efficiency and quality.
What is considered cost-effective depends on the specific circumstances of a particular company, but the bottom line for any firm is to obtain more return on investment. An analysis of how cost savings are implemented through implementation of an SOP provides a competitive advantage that could help a company overcome inherent efficiency and cost challenges.
Case Study Analysis Engstrom Auto Mirror Plant evaluated the feasibility of implementing a number of cost-reduction measures. The plan is based on management and supervisor training, the development of special tools, the hiring of special equipment, and other cost-reduction techniques.
In addition to the economic benefits, Case Study Analysis Engstrom Auto Mirror Plant analyzed the job satisfaction that employees achieved as a result of the change. They found that the employees actually enjoyed the change as well as the results it produced in reducing costs and increasing efficiency.
Case Study Analysis Engstrom Auto Mirror Plant found that the company has incorporated the ideas introduced into the development of the change into the design of its operations. It has eliminated wasteful spending, increased financial efficiency, and enhanced the profitability of the company. Employees report that they work harder and happier due to the improvement in their job satisfaction and they know that their job performance matters.
Case Study Analysis Engstrom Auto Mirror Plant has given its employees a workable plan for eliminating waste, reducing costs, and increasing profits. It is this detailed organizational design that is unique to Case Study Analysis Engstrom Auto Mirror Plant.
The specific improvement implemented by Case Study Analysis Engstrom Auto Mirror Plant resulted in the elimination of over 5,500 man hours in the fabrication department alone. Through the implementation of the corrective actions, the company was able to increase the profit margin on its output by nearly 30 percent.
This case study illustrates how using Case Study Analysis Engstrom Auto Mirror Plant’s strategic plan can focus on the elimination of wasteful spending, reduce costs, and increase profitability. In addition, employees who are trained in the implementation of the corrective actions benefited from better overall job satisfaction and financial results.