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Productivity and Cost

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Issue:

Business

 

Written by:

Johnny T

 

Date added:

June 23, 2013

 

Level:

University

 

Grade:

A

 

No of pages / words:

5 / 1145

 

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8900 times

 

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Visteon Automotive Systems is an enterprise of the Ford Motor Company, as well as the world's second largest supplier of automotive parts and components. They employ 82,000 people and have 120 manufacturing, engineering sales, and technical centers located in 21 countries" (Holcomb et al., 2000). In 1996, one of Visteon's plants, the Sterling Plant, started a new production line to assemble front axles for four wheel drive trucks and sport utility vehicles...
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They quickly discovered there is an incredible demand for four wheel drive trucks had become overwhelmed by it. In fact, in the first year of production, the demand increased to 550,000 units, however, Visteon had only projected a production capacity of 400,000. Visteon knew that every axle they were not able to produce meant a loss in sales of one of the highly profitable 4x4 vehicles...
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