Navistar Supply Management

NAVISTAR

     SUPPLY MANAGEMENT

Case Analysis Report

Final Exam

Instructor: Rick Deck                                                                 By: Arshad Ashraf

March 28, 2015                                                                 Student # 7002547

Navistar International – Case analysis report

Table of contents

Executive Summary                                                        3

Issue Identification                                                                4

Environment and Root Cause Analysis                                5

Alternatives and Options                                                        7

Recommendations                                                                9

Implementation                                                                9

Monitor and Control                                                        10

Exhibit – Production structure                                        11

References                                                                        12

EXECUTIVE SUMMARY

Navistar is a leading manufacturer of commercial trucks, buses, defense vehicles and engines. The Company determined to keep delivering smart, sustainable technologies since 1831. In 1922, The International Harvester Company which was the parent company of Navistar stated to build trucks in Chatham assembly plant along with range of farm machinery. After selling company’s agricultural division in 1985, The Company changed its name to Navistar and focused on developing building trucks.

In 1997, Navistar led the industry for 17 consecutive years in marketing medium and heavy duty trucks and its sale was $6.37 billion. Since 1983, Navistar’s premium conventional trucks were built at Chatham assembly plant. The Company forecasted increased demand for heavy trucks for the fiscal year 1998 particularly for United States and Canada compared with fiscal year 1997.

Customers spent a significant amount of time designing their own trucks and they were intolerant of delays, quality problems or factors that failed to reach their expectations. Andy Ramsz, the assembly supervisor in Chatham focused on resolving supply problem of interior trim parts delivery due to increased demand in 1998. Andy was trying to solve this issue by concerning to maintain Just in Time Delivery for the customers. This problem affected Navistar’s smooth delivery schedule of trucks, reduced efficiency of Supply Management and extra coast.