Shanghai Baolong Automotive Corporation
(12 pages of text)
The president of a Chinese auto parts manufacturer is facing a crisis. For nearly 10 years the company's production lines have not been able to keep up with the orders. Deliveries are due, but the in-house stock is in short supply despite the production lines operating under extended hours. Quality issues have resulted in recent recalls in the United States, making the company's prospects worrisome. Faced with worsening international trade conditions and mounting problems, the chair and president decide to expedite the initiative of transforming their company into a lean manufacturer based on the Toyota Production System. However, the company has no in-house expertise or experience in lean production. The case presents a challenging situation faced by many companies as they move up the ladder of production competence and operational excellence. The major learning focuses on the adoption of Japanese production practices in an emerging Chinese company as it implements lean production.
- To highlight why most companies fail in their adoption of the Toyota Production System.
- To demonstrate how one Chinese company adapted and reinvented the Toyota Production System model.
- To illustrate how companies can improve the likelihood of success when implementing lean production.
- To emphasize the role of leadership - i.e., the right people, the right approach, the right culture - by reviewing the actions of one Chinese company during its implementation of lean production.
China, Large, 2009
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