Transcript PROJECT IPYGO:

T.1-2 DESCRIPTION OF GENERAL DETAILS
OF THE FIRM AND ORGANIZATION CHART
T. 3 STRATEGY FOLLOWED TO GET A
COMETITIVE ADVANTAGE
T. 4-7 QUALITY FUNCTION DEPLOYMENT
(QFD) AND PROCESS DESIGN
T. 5 DESIGN AND PRODUCTION
T. 6 OPERATIONS TECHNOLOGY
DESCRIPTION OF GENERAL
DETAILS OF THE FIRM AND
ORGANIZATION CHART
• Headquarter: Stuttgart, Germany
• Production: Argentina, Austria, Bosnia and
Herzegovina, Brazil, Canada, Egypt, Ghana,
Hungary, India, Indonesia, Iran, Malaysia,
Mexico, Nigeria, South Africa, South Korea,
Thailand, Turke, United Kingdom USA
• Products: Passenger cars, Trucks, Buses and
vans, Utility vehicles
• 1886 the first car was developed
• Foundation: 1887
• Founders: Gottlieb Daimler
Karl Benz
• 1894 first serial production
• Cooperation of: Mercedes (Daimler) and
Benz because of bearing the crisis, until
the 1926’s unification.
• 1928 the first formula 1 car(“Silber Pfeil”)
was built
• Cars for middle and upper class. They try
to offer high quality cars at good relation
price-quality. Prices vary depending on
the model you are to buy.
• Their cars are always on the edge from a
technological point of view since they have
been produced with the best technological
tools.
COMPETITORS

Their strongest competitors come from the
luxurious car’s market.
 Mercedes is supposed to be the strongest
one in its field.
 Main Competitors:
- BMW
- Audi
- VW
- other car manufacture companies (Jaguar,
Opel (GM) Porsche...
STRATEGY FOLLOWED TO
GET A COMETITIVE
ADVANTAGE
THE STRATEGY
THE PORTER’S GENERIC
FOLLOWED BY MERCEDES STRATEGIES:
BENZ TO BECAME
LEADERS IN THE CAR
 THE DIFFERENTITATION
MARKET ARE:
STRATEGY (horizontal axis)
 THE COST LEADERSHIP
 DIFFERENTIATION
STRATEGY (horizontal axis)
 VERSATILITY
 STRATEGIC FOCUS AND
 BROAD SCOPE
SCOPE (vertical axis)
Vertical
axis:
F
O
C
U
S
Horizontal axis:
DIFFERENTIATION // COST LEADERSHIP
1. DIFFERENTIATION

INVOLVES MAKING OUR PRODUCT
DIFFERENT AND MORE ATTRACTIVE THAN
THOSE OF OUR COMPETITORS.
FEATURES
FUNCTIONALITY
SUPPORT
DURABILITY
BRAND IMAGE
THAT OUR
CUSTOMERS
VALUE
1. DIFFERENTIATION
 TO
MAKE A SUCCESS OF A
GENERIC DIFFERENTIATION
STRATEGY, WE NEED:
1. Good research, development and
innovation.
2. The ability to deliver high-quality
products or services.
3. Effective sales and marketing
GLOBALIZE
DIFFERENTIATION
REASONS:
1. Reduce costs
(labor, taxes, tariffs,
etc.)
2. Improve supply
chain
3. Provide better
goods and services
4. Understand markets
5. Learn to improve
operation
6. Attract and retain
global talent
DRAWBACK:
 HANDICAP
BEING UNIQUE
2. THE COST LEADERSHIP
STRATEGY


REDUCING ITS ECONOMIC
COSTS BELOW ITS
COMPETITORS
THE ABILITY OF A VALUABLE
COST-LEADERSHIP
COMPETITIVE STRATEGY TO
GENERATE A SUSTAINTED
COMPETITIVE ADVANTAGE
DEPENDS ON THAT STRATEGY
BEING RARE AND COSTLY TO
IMITATE.
V
E
R
S
T
I
L
T
Y
3. FOCUS OR STRATEGIC SCOPE

THIS DIMENSION IS NOT A SEPARATE
STRATEGY PER SE, BUT DESCRIBES THE
SCOPE OVER WHICH THE COMPANY SHOULD
COMPETE BASED ON COST LEADERSHIP OR
DIFFERENTIATION.

THE FIRM CAN CHOOSE TO COMPETE IN:
 THE MASS MARKET WITH A BROAD SCOPE,
 A DEFINED, FOCUSED MARKET SEGMENT WITH A
NARROW SCOPE.

MERCEDES
BROAD SCOPE
QUALITY FUNCTION
DEPLOYMENT (QFD)
Customer Room
(What customers want)
This is the “voice of the customer”
 Done With focus groups
 Must be what customers want and not
what builder wants

Engineering Room

This is the HOW room, How can each
customer attribute be measured and
evaluated by the company.
Integrator room
These are the What's’ in rows and How's
in columns
 This s the relationship room
 Described in 3 ways:

 Strong moderate and weak
Competitors room

This room assesses how well we are
meeting customers requirements
Tester Room
Technical priorities
 Relationship and importance to customer

The Attic
About quality cost analysis
(http://www.kaner.com/qualcost.
htm)
Content
Definition quality cost
 Different types of Quality cost analysis

○ Prevention costs
○ Appraisal costs
○ Internal failure costs
○ External failure costs
Benefits by analysis cost of quality
 Risks by analysis cost of quality

Definition
• Quality Cost:
- It is represented by the costs encountered in:
- preventing
- finding
- correcting the defective work
- They represent in general a significant amount
- It is affected (reduced) by Total Quality Control.
Prevention costs
The costs encountered in the activities
preventing poor quality.
Examples:








Staff training
Early Prototyping/Requirements analysis
Clear Specification/unambiguous documentation
Evaluation of the development tools that will be used
Coding errors
Design errors
Mistakes in the user manuals
Dadly documented or unmaintainably complex code
Appraisal Costs:
• The Costs encountered in the activities
aimed at revealing quality problems.
• Examples:
Design review
Testing the raw materials
Quality control
Training testers
Test automation
Usability testing
Pre-release out-of-box testing by
customer service staff
Internal Failure
Failure costs are Costs that result
from poor quality:
•Bug fixes
•Regression testing
•Wasted in-house user time
•Wasted tester time
•Wasted writer time
•Wasted marketer time
•Wasted advertisements
•Direct cost of late shipment
•Opportunity cost of late shipment
External Failure Costs
Customer service costs
 Cost of patching a released product distributing the
patch
 Examples are:

 Lost sales
 Lost customer goodwill
 Discounts to resellers to encourage them to keep selling the






product
Warranty costs
Preparation of support answer books
Investigation of customer complaints
Refunds and recalls
Coding / testing of interim bug fix releases
Shipping of updated product
Risks
• Implementation Risks
– Not being realistic and trying to achieve too much
too soon.
– Controversial costs should be left aside, especially
the first few times the company is trying to
implement the quality-costs analysis
• Other risks:
– Looking only from the point of view of the
company, not looking at the customer’s costs
– Might result in other types of risk:
• Customer Dissatisfaction
• Litigation
Benefits
• The goal is to reach minimum quality costs at the desired outgoing quality
level.
• It’s a feed-back mechanism: quality costs data is used by the management to
make decisions that will impact the quality costs.
• Applications of Quality Costs
– Measurement Tool:
• Quality costs provide comparative measurements for evaluating
quality programs
– Process-Quality Analysis Tool
• Quality costs can serve effectively as an analysis tool and point out
where the problems are
– Programming Tool
• Quality costs determine how the available resources to be divided
– Predictive Tool
• Quality costs can also be used to evaluate and assure performance in
relation to the goals and objectives of the organization.
Operations technology in
Mercedes Benz
Operations technology in
Mercedes Benz

Products Technologically innovators

Technology used to manufacture these
products
CAD in Mercedes Benz

Two kinds of software
 Mechanical and engineering orientated
software
 Design in itself software
Production Technology

The cad design has to be integrated in the
machine.
Numerical controled Robots
Internet & more corporative
Software

Web page informing aabout their
services, new releases and news.
www.mercedes-benz.com

In 1995 they firmed aa contract with IBM
to support all the corporative software.
(accounting, net, design)
DESCRIBE A PROCESS IN
OUR FIRM USING ANY OF
THE TOOLS FOR PROCESS
DESIGN.