Texas Instruments and Nummi

CASE STUDY REPORT

TEXAS INSTRUMENTS AND NUMMI

EXECUTIVE SUMMARY

Our project incorporates comprehensive background information of Texas Instrument Incorporated and New United Motor Manufacturing Incorporation along with identifying its key issues and analytical data analysis. In this project we have also incorporated suggestive recommendation and conclusion derived by our data analysis. Moreover our project outlines problems associated with Texas Instrument Incorporated and New United Motor Manufacturing Incorporation, so to address those problems in particular we have analyzed data in five criteria namely Purchasing Process, Supplier Selection, E-Commerce Implementation, Supplier Management and Recommendations. In each Criteria we have emphasized on the root of the problem and accordingly suggested an alternative method to tackle it. We further elaborated our solutions in recommendations and conclusion. Nevertheless each team member has brainstormed and integrated their ideas to ensure the accuracy of our information vital for this project which made the project more efficient by standard.

TABLE OF CONTENTS

Introduction …………………………………………………………………….. 2

Key Issues

Analysis

Recommendations

Conclusion……………………………………………………………………….

References………………………………………………………………………..

Appendices……………………………………………………………………….

INTRODUCTION

Case studies provide a platform for in-depth examination of a subject through the presentation of a realistic and complex situation. A good case study bridges the gap between theory and practice and between the academy and the workplace (Barkley, Cross, and Major, 182). This report is centered on the NUMMI podcast and the Texas Instruments case study which is on implementation management of an e-commerce-enabled enterprise information system. These two cases provide a platform for objective analysis based on critical purchasing and supplier management issues. These issues ranges from purchasing process (Make vs. Buy), supplier selection, supplier quality assurance to supplier evaluations.

Every organization buys or make purchases, therefore every organization need suppliers. Buying or purchasing involves a process, with the growing complexity of customer demand the purchasing process of organizations are dynamic and complex. For example, the implementation of an e-commerce-enabled enterprise information system at Texas Instruments involves a complex and rigorous process of purchasing as this project involved the input of some information and technology companies. Part of the process involved outsourcing some of TI’s internal information systems capabilities. In the same vein, the NUMMI (New United Motor Manufacturing Inc.) case showcases how business decisions and business strategies are made, the flaws of these strategies and how it relates to the management of a supply chain. This report aims to provide a logical and objective analysis of both cases, drawing valid conclusions and making adequate recommendations.

KEY ISSUES

Key Issues in New United Motor Manufacturing Incorporation (NUMMI) Case –

· Sense of Pride/ Ego –

General Motors the giant American auto manufacturer was a dominant player around the globe seven times bigger in terms of market share with respect to Toyota. It thought what a large company like itself would learn from a far small company like Toyota. This thought made a barrier in accepting and implementing Japanese ways of production in North America.

· Willingness to change –

The American culture of its workforce were not ready to change to the Japanese style of working. Americans were more into seniority at work place and they rejected the thought of teamwork which placed all members of the team at equal level. The American culture did not understand the concept of teamwork. This cultural difference prohibited the workforce to adapt to Japanese culture of working.

· Acceptance –

General Motors management didn’t accept that Japanese quality was far better than theirs which made it even harder to implement Japanese methods of production.

· Mentality –

General Motors believed in quantity over quality that meant whatever happens the production line should never shutdown which compromised quality aspects in manufacturing whereas Toyota believed in quality over quantity which meant they will do whatever at hand to improve quality even if it means to shut the production line for some time. Their core beliefs caused friction between them at first but GM later learned it the hard way that quality comes above all.

· Work Ethics –

The main downfall of NUMMI plant was its work ethics within its workforce and the powerful unionized labor force. Workers at the NUMMI plant had pot, alcohol, sex, drugs and much more which decreased productivity drastically. One out of five workers was absent every day which meant delays in starting production lines because of shortage of workers, to fill this shortage people were picked up from

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