The Indian automobile component manufacturing industry has, over the years, grown into a major supplier in international markets
CASE STUDY (20 Marks)
The Indian automobile component manufacturing industry has, over the years, grown into a major supplier in international markets. Indian auto manufacturing companies have the advantages of a low cost of production, high quality products and a good supply
chain. This, over the period of time, led to the rise in its popularity among foreign auto-manufacturers. According to SIAM, in 2004 the Indian automobile industry grew by 54%, exports in auto ancillaries grew by 29%, and exports of auto components rose 32% to $1 billion compared to 2003. There are a few significant drawbacks of JIT. Just-in-Time has been widely adopted in the Indian automobile manufacturing industry. But, the auto manufacturers have faced problems due to the lack of a proper support system. The auto manufacturers have taken precautionary steps to deal with the situation to gain maximum returns from the implementation of JIT.
Answer the following question.
Q1. Explain the importance of JIT in the Indian auto industry.
Q2. JIT is certainly one of the best practices in any production system but you need to have supply chains streamlined for it ‘what in your views can be done to streamline the supply chain in order to achieve greater efficacy?
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