CREATING EXCELLENCE ON ALL FRONTS

Adika fajar

0606159926

Alcedo Noor 0606159863

• Tantangan bagi VW (pada periode 90-an) • • • • Mengatasi negative return on sales Mampu bersaing dengan produsen mobil lain Mengelola portfolio merek Menekan biaya operasional pabrik

Kendala:      Weak model line-up (Harga mobil VW reasonable oleh konsumen) dianggap tidak

Lack of value (reputasi buruk dalam sistem elektrikal dan mesin) Inefficiency (Produsen mobil lain mampu berproduksi dengan lebih efisien) High cost base (Biaya operasional pabrik terlalu tinggi) Kurangnya integrasi antara merek-merek yang dikelola sehingga terjadi duplikasi biaya yang tidak perlu.

Tren Industri Otomotif di periode 90-an
3. Perubahan revolusioner dalam proses manufaktur (system based on a network of suppliers, JIT, lean system, outsourcing, kanban dll) 4. Perubahan dalam persepsi dan gaya hidup konsumen (ditandai munculnya beragam niche segment) 5. Isu lingkungan dan efisiensi bahan bakar. 6. Perkembangan pesat bisnis penunjang industri manufaktur mobil (finance, asuransi dll) 7. Aliansi strategis antar produsen mobil dalam R&D

Volkswagen Financial performance era 1993-2001

VW's successful implementation of a platform manufacturing system, its globalization strategy, the move up-market, cost-cutting programs and many innovations along the business system had led the group's net income increased to a record-breaking

VOLKSWAGEN : great turnaround strategy

Piëch and his management team succeeded in integrating where it made sense, while differentiating where it mattered to customers. VW was therefore able to reap economies of scale over models, brands and regions.

N AGE : W LKS s story s VO es nd ucc the bra s g epin istinct Ke d

MANAGING PRODUCTS PORTFOLIO: ..trough the heart and soul of the brand

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Gradual change in perception of the company's line of products: Audi having elevated into premium luxurious cars Volkswagen moved upmarket to fill the void left by Audi (the fifth-generation Passat launched) Seat and Skoda now occupying what was once VW's core market In 1994, start the development of new bettle. This (VW) move upmarket was continued with the Mark 4 Golf, introduced at the end of 1997.

N AGE SW OLK ss story: V e gy succ trate s tform Pla

Modular manufacturing system “PLATFORM D” (wiringsteeringbraking diagrams)

VW PHAETON

AUDI A8 4.2

Global manufacturing system, modular production and platform strategy
• • • • • • Integrate VW plants within the same region. Similarity of the platform allowed for short set up times in factory, underutilized plants receive parts from other plants. Flexible production schedule, improve the flexibility and efficiency of production. Foreign employment level had increased from 41% (1993) to 51% (2001) Worker in Wolfsburg had their work time reduced by 20% and received 16% less salary (in 4-day workweek). In all modular production facilities, wages are dramatically lower and unions are much weaker* than in traditional auto plants.

*At a modular Volkswagen production facility, there is not a single VW assembly worker in the plant. A network of independent  contractors provides all the components and performs the assembly.  A small group of Volkswagen employees are on hand only to inspect  the vehicles once they are finished.

1993-2002 - PIECH transform VW into big cash machine
• • Piech is a car-obsessed engineer and perfectionist. Piech has claimed that the three great loves of his life are: Volkswagen, family, and money. Breaking the old traditions: arranged new product portfolio and new manufacturing strategy Strict management policy. Many speak that he uses dictatorial management style. Piech is known for his determination and ambition. His aggressive style moves VW groups into new market segments (Bugatti, Lambo, Bentley, etc)

Ferdinand Piech, “the driven man of VW”

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Piech said: "You don't win battles by being friendly."

VOLKSWAGEN FUTURE CHALLENGE • • • Keep the competitive advantage sustainable. Evaluate intangible value in structure, people, system and stakeholder management. Maintaining economies of scale from global manufacturing and sales worldwide Environmental issues: Volkswagen has the worst global warming scores (2007) Aware the role of new technologies (efficient Diesel engine, hybrid electric drivetrains or flexible-fuel vehicles)

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