Navistar

Executive Summary

Trimco is a main supplier to Navistar. Navistar relies heavily on Trimco at their assembly plant. Navistar and Trimco must improve their quality management systems in order to have the right parts, in the right number shipped at the right time without any damages or defects. Navistar and Trimco must start imploring a more collaborative approach to their business process. Navistar needs to address their policy problems. Our last minute design changes seriously disrupt the supply process. The robbing of parts also creates a snowball effect of problems in other areas, or down the line. Trimco has several problems including high employee turnover, mixed technological capability with respect to manufacturing processes, and a lack of internal control. Areas of deficiencies must be jointly identified and solutions to these deficiencies must be collaboratively tackled. With these improvements, the cycle time from customer order to delivery should be reduced, which would allow a higher level of customer service at an overall lower cost. The delivery times for the custom-designed trucks should decrease with the recommended implementations. Navistar must identify the problem to Trimco. Trimco must be aware of these deficiencies and collaborate with Navistar to remedy these. Navistar must then look at the problem internally. Top management has given them support in this matter and they must be utilized. Input across different business functions must be taken. Working with other departments will help identify issues that were previously not seen. Incomplete parts can be monitored with a quality control system that compares parts ordered or required with actual parts sent. Last minute design changes must be stopped, as they are not sufficient to let Trimco manufacture the parts on time. Quality of the parts can be addressed by raising awareness of the issue, and by also ensuring packaging and handling of parts are done in meticulous order