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The Second Century : Reconnecting Customer and Value Chain through Build-to-Order Moving beyond Mass and Lean Production in the Auto Industry - Matthias Holweg

The Second Century

Reconnecting Customer and Value Chain through Build-to-Order Moving beyond Mass and Lean Production in the Auto Industry

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Winner, 2006-07 Sloan Industry Studies Best Book Award competition. As the auto industry moves into its second century, it suffers from low margins and a sclerotic value chain that cannot evolve with customer desires. Inventories of many weeks pile up on dealer lots and at distribution centers around the world while executives applaud marginal improvements in factory efficiency. Value streams based on Henry Ford's mass-production model from the early 1900s do not deliver the strategic flexibility that is needed in today's increasingly competitive and demanding market. With billions of potential product variations, customers still compromise by selecting from a limited number of products sitting at dealerships or at distribution centers. Those customers who dare insist on a specific variation not only wait weeks but also pay extra for the privilege of telling vehicle manufacturers what they actually want. In "The Second Century," Matthias Holweg and Frits Pil provide a comprehensive look at today's dysfunctional value-chain strategies, then systematically discuss the changes in products and in processes that are needed to bring about responsiveness to customer needs through build-to-order. They look beyond the dealer, the factory and the design studio to examine the web of relationships and dynamics that have brought the auto industry to its current low point. Holweg and Pil argue that in this century the winners will not be those firms that search for larger and larger scale or those who run efficient factories, or those that squeeze the last drop of profitability from their suppliers. The winners, they say, will be those who build products as if customers mattered.

This book is more important to the industry than The Machine That Changed the World.

-Autofieldguide.com
The Second Century provides a comprehensive look at the dysfunctional nature of current value-chain strategies.

-Impact * Reviews *
This book is more important to the industry than The Machine That Changed the World.

-Autofieldguide.com * Reviews *

Acknowledgmentsp. ix
At the Dawn of the Second Automotive Centuryp. 1
Disassembling the "Order-to-Delivery" Process
Old Habits Die Hardp. 11
Thirty Days to Production and Countingp. 23
Production, Distribution, and the Best We Can Expectp. 39
Band-Aid Solutions to Stem Red Ink
Islands of Excellencep. 51
Volume-the Holy Grailp. 67
Shifting the Metalp. 73
The Case for Build-to-Order
Ripping the Lid off the Revenue Boxp. 83
Closing Argumentsp. 95
Three Dimensions of Responsiveness: Process, Product, and Volume
Process Flexibility and Customer Demandp. 105
Process Flexibility and Demand Visibilityp. 113
Process Flexibility and Productionp. 127
Process Flexibility and Suppliersp. 137
Process Flexibility and Logisticsp. 153
Product Flexibilityp. 161
Volume Flexibilityp. 191
Breaking the Cyclep. 209
Notesp. 215
Indexp. 233
Table of Contents provided by Ingram. All Rights Reserved.

ISBN: 9780262582629
ISBN-10: 0262582627
Series: The MIT Press
Audience: Professional
For Ages: 18+ years old
Format: Paperback
Language: English
Number Of Pages: 252
Published: 16th September 2005
Country of Publication: US
Dimensions (cm): 22.9 x 15.2  x 1.3
Weight (kg): 0.36