Explanation of Flexibility Manufacturing Role in the World ClassCase study: Saipa automotive group

Abstract

One of the major business risks in the world-class manufacturing and services firms is the risk of imbalance between supply and demand. To respond to fluctuations in demand, changing the capacity is an expensive strategy that some of organizations adopt it. Developing in capacity in times of increasing the demand, while requiring expenditures can be caused by a decrease in demand leads to stagnant investment and capacity will be unusable. Reducing in capacity when demand decline, requires the sale of assets and the increase in demand will lead to lost sales costs. To face to this challenge, Mix production flexibility as concept of possibility to produce of multi production in a same facility is a cost-effective solution that can absorb imbalance risk between supply and demand. In this paper, managing of flexibility with cost-effective solutions in the world-class manufacturing firms studied and a mathematical model is proposed for this purpose. As a case study, production flexibility in SAIPA group analysis and using the proposed mathematical model and simulation software, solutions to increase manufacturing flexibility in SAIPA group recommended.

Keywords

• world-class manufacturing
• imbalance between supply and demand
• production capacity
• mix production
• cost-effective