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Step: 1

Answer : 1

Analysis of the Mini-Factory Concept at FAVI:

Strengths:

Autonomy and responsibility: The mini-factory

system promotes individual autonomy and
responsibility among operators and leaders,
allowing them to make decisions and take
ownership of their work.

Customer focus: The mini-factories are

dedicated to serving specific customers,
ensuring a strong customer orientation and
responsiveness to their needs.

Informal communication and collaboration: The

system encourages informal communication and
collaboration among team members, fostering a
sense of trust and teamwork.

Continuous improvement: FAVI's mini factory

system by focusing on management by
objectives, support of company values, and
coordination between functions.

Weaknesses:

Limited hierarchical levels: The flat

organizational structure of the mini-factory
system restricts opportunities for career
advancement and promotion.

Potential loss of specialization: The replication of

various functions within each mini-factory may
lead to a loss of specialization and expertise
compared to a centralized system.

Challenges with growth: As FAVI expands and

introduces more mini-factories, there may be
challenges in maintaining informal
communication, coordination, and preserving the
relationship between the factory director and
leaders/operators.

Aging workforce: FAVI's current workforce is

aging, and there is a need to address succession
planning and ensure the replacement of retiring
employees with suitable candidates who align
with the company's values and culture.

Answer 2 :

Possibility of Different Implementation:

The implementation of the mini-factory concept

at FAVI appears to have been successful, but
there might have been alternative approaches:

Faster implementation: The transformation to the

mini-factory system took several years. It could
have been implemented more rapidly by
adopting a more aggressive change
management approach, involving all
stakeholders early on and addressing resistance
more directly.

Gradual implementation: Instead of a complete

shift to the mini-factory model, FAVI could have
piloted the concept in a smaller scale or within
specific departments to test its effectiveness
before implementing it across the entire
organization.

Hybrid approach: FAVI could have considered a

hybrid model, maintaining some centralized
functions while introducing elements of the mini-
factory system. This approach would have
balanced the benefits of autonomy and
specialization with the advantages of
centralization.

Explanation

Answer 1 (Analysis of Mini-Factory Concept at

FAVI):
Strengths: Autonomy and responsibility,
customer focus, informal communication, and
continuous improvement. Weaknesses: Limited
hierarchical levels, potential loss of
specialization, challenges with growth, and an
aging workforce.

Answer 2 (Possibility of Different

Implementation):
Alternative approaches could have included
faster implementation through aggressive
change management, gradual implementation
through piloting, or a hybrid model combining
centralized functions with mini-factories.

Step: 2

Answer 3 : Management of Resistance to

Change:

The case does not explicitly mention how

resistance to change was managed at FAVI.
However, based on the information provided,
some possible strategies could have been:

Clear communication: Leaders at FAVI could

have communicated the reasons behind the
change, the benefits of the mini-factory system,
and how it aligns with the company's goals and
values. This would help employees understand
the purpose and rationale for the change.

Involvement and participation: FAVI could have

involved employees in the decision-making
process and implementation of the mini-factory
system. By soliciting their input and addressing
their concerns, resistance could have been
minimized.

Training and support: Providing comprehensive

training programs for operators and leaders
would have helped them develop the necessary
skills and knowledge to adapt to the new system.
Ongoing support and coaching from managers
could also have facilitated the transition.

Employee engagement and recognition:

Recognizing and rewarding employees for their
contributions and efforts during the transition
would have motivated and encouraged them to
embrace the change. Celebrating successes and
sharing success stories could have boosted
morale and reduced resistance.

Answer 4 :

Response to Challenges:

Zobrist and Verlant can address the challenges

facing FAVI by considering the following actions:

Growth challenge: As FAVI continues to expand,

they need to carefully manage the introduction of
new mini-factories while maintaining the core
principles and culture that have contributed to
their success. Regular evaluations and
adjustments to the system may be necessary to
ensure scalability and effectiveness.

Interface with customers: FAVI should adapt their

customer interface strategies to match the
changing dynamics of the automotive industry.
They can explore digital communication
channels, strengthen relationships with
purchasing departments, and leverage
technology to enhance customer service and
responsiveness.

Aging workforce: To address the aging

workforce, FAVI should focus on succession
planning, knowledge transfer, and attracting
younger talent. Implementing mentorship
programs, investing in training and development,
and creating an attractive work environment can
help attract and retain new employees.

Overall, Zobrist and Verlant should maintain their

commitment to innovation, continuous
improvement, and the values that have been the
foundation of FAVI's success. They should
remain open to adapting the mini-factory concept
to overcome future challenges while preserving
its core principles.

Explanation

Management of Resistance to Change:

Strategies such as clear communication,
involvement, training, and employee
engagement could have been utilized to address
resistance and facilitate the transition to the mini-
factory system at FAVI.

Response to Challenges: FAVI can address

challenges by managing growth effectively,
adapting customer interface strategies, and
addressing the aging workforce through
succession planning and attracting younger
talent. Adhering to core values and fostering
innovation will be crucial for overcoming future
challenges.

Final Answer

In Conclusion :

The mini-factory concept implemented at FAVI

has proven to be a successful approach to
organizational management and innovation. It
has provided strengths such as autonomy,
customer focus, informal communication, and
continuous improvement. The system has also
brought about non-traditional HR practices and
employee recognition. However, there are
challenges to address, including limited
hierarchical levels, potential loss of
specialization, growth management, and an
aging workforce.

To ensure the continued success of the mini-

factory system at FAVI, Zobrist and Verlant
should carefully consider the organization's
growth trajectory, exploring how many mini-
factories can be effectively introduced while
maintaining coordination and communication.
They should also pay attention to maintaining
specialization within the mini-factories and
addressing potential knowledge gaps.
Succession planning and attracting younger
talent should be a priority to ensure a smooth
transition as the current workforce ages.

Furthermore, adapting the customer interface to

align with changing industry dynamics and
investing in digital communication channels can
help FAVI maintain strong customer
relationships. Continuous innovation and
improvement should remain at the forefront, with
the company seeking opportunities to refine and
enhance the mini-factory system.

In conclusion, the mini-factory concept at FAVI

demonstrates the power of employee
involvement, autonomy, and a customer-centric
approach. By addressing the identified
challenges and staying true to their core values,
FAVI can continue to thrive and protect jobs in
the local area while remaining a leader in the
automotive parts sector.

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