Navistar Case

1652 words 7 pages
Table of Contents

Executive Summary
Part 1 Executive Summary
Issues Identification
Part 2 Issues Identification
Environmental & Root Cause Analysis
Part 3 Environmental & Root Cause Analysis
Alternatives and/or Options
Part 4 Alternatives
Part 5 Recommendations
Part 6 Implementation Plan
Monitor & Control
Part 7 Monitor and Control
Part 8 Conclusion

Part 1 Executive Summary
Navistar was a worldwide leader in the manufacturing medium and heavy trucks for 17 consecutive years in the North America market.

Navistar’s premium conventional trucks were produced at the Chatham assembly plant, which had almost 14 years experience in producing Navistar’s premium line since 1983.
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Lack of sufficient communication
Nature: Tactical Timing:Long term and Short Term
Difficulty in responding to Navistar’s design changes arose when Navistar failed to communicated these changes to Trimco before production runs, so that parts were shipped with different specifications than those needed for proper fit during assembly.

Part 3 Environmental & Root Cause Analysis
Orders placed to Chatham ranged in design from no-frill models to highly customized units. At any given time, customized units could represent 50-80 percent of production volumes. Navistar customers spent a significant amount of time designing their won trucks and spent months deciding on various options and accessories. Customers were intolerant of delays, quality problems or any other facto that failed to meet their expectations.

Navistar considered quality as the priority concern which even came before costs, so Navistar had been involved with several improvement initiatives to the quality issues, and top management supported all initiatives that produced quality and delivery improvements to Navistar’s products and processes.

Besides the quality issues, another problem of truck interior trim shortage had occurred. The consequences included the subsequent


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