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ERP (Enterprise Resource Planning ) in an automobile industry

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  1. Introduction
  2. Explanation, in general, the performance of L'Oreal
  3. The value chain
    1. Support Activities
    2. Main activities
  4. The Porter's five forces
    1. The bargaining power of suppliers
    2. The bargaining power of customers and distributors
    3. The rivalry between existing competitors
    4. The threat of new entrants
    5. The threat of substitute products
  5. The key success factors
    1. SBU: Consumer Products
    2. SBU: Professional Products
    3. SBU: Luxury
  6. The competitive position
  7. SWOT model
    1. Diagnosis of internal strengths and weaknesses of L'Oreal
    2. Analysis of opportunities and threats affecting the company
    3. Deepening of the external diagnosis according to the 5 forces of Porter
    4. The main strengths, weaknesses, opportunities and threats
    5. SWOT grid proposals
  8. The Human Resources Department at L'Oreal Description of the organization of the HR function The key points of the HR policy for L'Oreal:
    1. Recruitment
    2. Training
  9. Strategy, culture and fashion animated men
  10. Strategies
    1. A differentiation strategy
    2. A vertical integration strategy
    3. A diversification strategy
  11. The structure
    1. The operational center
    2. The strategic apex
    3. The strategic Technostructure
    4. Logistics support functions
  12. Corporate culture
    1. Different sources of cultures
    2. Culture in the service of the company
    3. Ethics, Values and Principles
    4. Managing Diversity at L'Oréal
  13. The animation of men
    1. The authority
    2. Influence of the orientation leaders
    3. L'Oréal and adhocracy
    4. Background
    5. Description of features of the structure adhocratic found for L'Oreal
  14. Study of the Management Development Center
  15. Strengths and weaknesses of the MDC Latin America
  16. Recommendations
  17. Conclusion

Toyota sells nearly 40 million cars worldwide each year. The production of these vehicles is carried out by a handful of manufacturers. In order to have the production process move without a glitch, the company must put a performance management system in place in order to avoid unnecessary costs.

The complete process, starting from procurement to distribution, inclusive of production, must obey the rules of the performance management system. A perfect coordination of players in the company is achieved through the implementation of one such system, the ERP or the Enterprise Resource Planning.

The ERP was first used by Toyota in the 1950s, and this became the world's number one data management system. This new medium helps in the real time management of various things in the organization.

But the implementation of such a tool is cumbersome and requires an installation process. Moreover, the implementation of an ERP will definitely impact the organization, both at the human and financial level. However, a successful implementation of the ERP would allow companies to be able to identify and anticipate all the impacts.

The automobile industry is an area where flows are relatively constant and important, and the company has sold nearly 40 million vehicles worldwide in 2007. Internal logistics services being overwhelmed, a solution of thinning and acceleration of these flows has been implemented in many brands through what is now called ERP.

The ERP, called "Enterprise Resource Planning", is a concept that emerged in the early 90s. This is a software package incorporating the main functions needed to manage flows and procedures of the company (accounting and finance, logistics, payroll and human resources, etc.).

All these programs have access to common resources, especially databases. Adapted to automotive implementation of an ERP allows manufacturers to work in synergy with their customers, suppliers and subcontractors.

Setting up a company in an ERP requires that all functions involved in a process must work together, communicating openly and break downbarriers between services. Difficulty working together, have a common global vision and to challenge its processes to implement best practices proposed by the ERP was the cause of many delays and even failures of implementation.

It must first know that logistics is based on the Encyclopædia of all physical flows of an organization, thus providing resources to meet the needs, economic conditions and quality of service determined in satisfactory conditions of safety and security .

The system of "just-in-time" is growing increasingly in the automotive sector, which therefore generates a new way of doing so and significant organizational change. Logistics in these companies is upset.

This new approach to production is primarily a means to "improve the level of service." The JIT system aims to control costs associated with the production and distribution, enabling companies to avoid stock outs and better respond to customers.

Logistics has an important function, but performs well only under two conditions: The construction of an efficient computer system, which could lead to a reduction in production costs, without compromising the quality and the establishment of a dual organizational system that would resolve potential conflicts and hazards.

Tags: Toyota; ERP; automobile sector; logistics

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