Henry Ford at Highland Park and Toyota during the 1980s and 1990s Essay

Henry Ford at Highland Park and Toyota during the 1980s and 1990s demonstrate that a growing car market is the necessary prec - Essay Example In the context of an automobile industry, higher productivity is one of the key drivers of this industry. The automobile industry is one of the largest industries of the world. In Europe, it accounts for around 7 % of the total manufacturing output. According to several author’s, the reason behind the colossal growth of automobile industry is the increasing productivity (Heneric, Licht and Sofka, 2005). Companies nowadays employ different techniques and methods to improve the overall productivity of the company. This report will shed light on the methods of improving productivity in automobile industry and will also discuss about how growing car market is the necessary precondition for achieving superior productivity. In addition, it will also provide examples of how the conveyor belt production technique affects and help a company with the growing market. Methods of Improving Productivity There are several methods by which the productivity of an automobile company can be incr eased. Some of the techniques are discussed below: - Value Engineering: - Value engineering can be defined as a process by which the value of a product is improved at every phase of the product life cycle. In the development stage, value engineering improves product value by diminishing the total cost and maintaining the quality. In the maturity stage of the product, value engineering reduces the overall cost by substituting the costly constituents by inexpensive components. With the help of this process, companies try to provide maximum value at a lower rate. Hence value engineering improves the productivity by increasing the value of the products. Operations Research: - The operations research method employs scientific and mathematical methods, to resolve issues pertaining to management. In addition, it also solves problems related to productivity. A company develops several alternatives to improve its productivity, but the productivity actually increases if the most appropriate c ourse of action has been selected. Now to increase the productivity companies use scientific methodologies which help them to select the best alternative course of action. Some of the common techniques used are game theory and linear programming among others. Quality Circles: - The concept of quality circles was developed in Japan in the year 1960. Quality circles in general are small group of employees who meet regularly to enhance identify and solve management issues. Apart from that, this group also recommends strategies to improve the operations and productivity of the company. There are also some general ways by which the productivity of a company can be increased. Although they are not scientific methods, but general ways by employing which the companies can gain higher productivity levels. Accountability: - All the employees of an organization need to be aware of the fact that he or she is responsible for the decisions and actions taken. Follow up: - In many cases it has been found that employers set the target and feels that the job is done. However in reality, it is important that managers follow up with the progress of work. This will ensure higher productivity. Manage the work force but avoid micromanagement: - It is a well established fact that employees have to be guided,