• A shift from high volume low variety manufacturing to low

volume high variety manufacturing to satisfy all the segments

and deliver customized products.
• Diminishing demand for a model over the years or shorter
product life cycle result in wasted capacity.
Significance of • Need to adjust to market cycles specially downturns.

Flexibility in • Better utilization of systems through variety of models being

produced to scale up production as Auto plants need to
operate at 80 percent of capacity or above to remain
Automobile profitable.
• Trade tensions and tariffs threaten companies that ship
Industry significant numbers of vehicles from one country to another.
• Gasoline prices is a reminder that a more serious oil price
shock could make smaller vehicles popular again.
• Customers over the years getting less patient and want their
car delivered sooner than later.