Volkswagen Case Study

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Table of Contents 1.0 Introduction 2 2.0 Main Body 3 2.1 Task 1 – Cost Management and Cost Reduction Techniques 3 2.1.1 Just In Time (JIT) 3 2.1.2 Worldwide Production Plants 5 2.2 Task 2 – Suggestions on Cost Management and Reduction Techniques 8 2.2.1 One Engine Fits All 8 2.2.2 Standardizing Management Systems 9 3.0 Conclusion 12 4.0 References 13 5.0 Appendix 15 1.0 Introduction Volkswagen AG is an automotive company established since 1930’s in Wolfsburg, Germany. It is the largest car manufacturer in Europe as well as one of the world’s leading car manufacturers (Volkswagen, 2012). Volkswagen AG has 99 manufacturing plants (47 dedicated solely to Volkswagen vehicle production) located in European countries, America, Asia and Africa. There are 502, 000 employees who either contribute in car manufacturing or maintain continuous relationship with customers, suppliers and partners from 153 different countries (Volkswagen, 2012). Basically, the car business of Volkswagen AG has been divided into two areas which are “passenger cars and light commercial vehicles” and “trucks and buses”. The car brands under “passenger cars and light commercial vehicles” are Volkswagen, Audi, Skoda, SEAT, Bentley, Bugatti, Lamborghini and Porsche. “Trucks and Buses” include the brand of SCANIA and MAN (Volkswagen, 2012). This report however, will be centralized on Volkswagen and the brand it represents. Volkswagen has three key characters that make it attractive which are innovative, responsible and endure value provided Volkswagen has designed a modular system for their vehicle development which reduces cost and increases production rate. Furthermore, Volkswagen is also using the project purchasing system for all procurement activities in the launching of new vehicle project (Volkswagen, 2012). 2.0 Main Body 2.1 Task 1 – Cost Management and Cost

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