Question: please answer Read the case study and prepare a presentation based on the following: - Summery of the Company and its business operation - Problem



Read the case study and prepare a presentation based on the following: - Summery of the Company and its business operation - Problem faced by the company - Solutions of the problem This is a group activity. This is a group task. Your presentation should be max for 15 minutes. Saturn Corporation was formed as a wholly owned subsidiary of General Motors. Saturn's initial mission was to "market vehicles developed and manufactured in the United States that are world leaders in quality, cost, and customer satisfaction through the integration of people, technology, and business systems." The mission was given substance when construction began on the production facilities in middle Tennessee. After an extensive and very highly publicized search for a suitable location for the plant was conducted, Spring Fill, Tennessee, was chosen. The proximity to large numbers of potential customers and the relative abundance of transportation options appear to have significantly influenced the location decision. Spring Hill is located just 30 miles south of Nashville and within 600 miles of approximately 60 percent of the nation's population. The site is located minutes from Interstate 65 and is accessible to Interstater 40 and 24 . Rail service to and from the site is provided by a rail spur constructed by cSX. Operations The 4.3-million-square-foot Spring Hill prodection coniplex is managed as an integrated system from the source of raw materials to the final customer. The intent is truly to have customer needs and desires dtive the entite Saturn operation. The highly automated manufacturing and assembly complex consists of three major operations powertrain, body systems, and vehicle syitens. ln the powertrain plant, engines and ransmisains are produced on sate. The second operation, body spstems, includes the stamping plant, body fahrication, and the paint shop, In the final operation, vebidesystems, cars are assembled. tesed, and prepared for shipping. The vehicle systens facility is strategically located between the powertrain plant and the body systenis plant to ingreve material flowe. The iust-in -itme method of inventotr comtrof bx coiployed in order to minimize inplant and in-iransit inventury. As a zesale, Saturn relio primarily an track truns gines and transmissions are produced on-site. The second operation, body systems, includes the stamping plant, body fabrication, and the paint shop. In the final operation, vehicle systems, cars are assembled, tested, and prepared for shipping. The vehicle systems facility is strategically located between the powertrain plant and the body systems plant to improve material flow. The just-in-time method of inventory control is employed in order to minimize in-plant and in-transit inventory. As a result, Satum relies primarily on truck transportation and an excellent highway system to reduce order cycle times and inventory costs and to keep materials and components arriving only when needed. When a new Saturn exits vehicle systems, it is inspected and staged for loading either in the truck or rail loading area. Since each vehicle is produced to fill a specific customer or retailer order, the final destination is known before the vehicle reaches the transportation staging area. Another highly innovative aspect of the Saturn corporate philosophy concerns the final link with the customer-the automobile dealer. The Satum retail strategy is called the Market Area Approach. Saturn "dealers" are referred to as "retailers." Each retailer has a well-defined market area. Inventory is typically much lower than for other popular brands. This is due, in part, to consistently strong demand and to Saturn's integrated information exchange system that gives the retailer instant access to production sch uling information that can be very helpful in completing a customer order and/or h. dling a customer inquiry concerning delivery dates. While retailers are not specific delivery dates, they are given the scheduled date of production for each vehi that is ordered. Retail prices are set by Saturn, not by the retailers. In effect, it is a "no haggl one-price policy. Every customer is treated the same and pays the same price for ide tically equipped vehicles. Saturn customers appear to prefer this low-pressure sellin situation. They also appreciate the special attention that is given to the first-time Sa urn buyer. When a first-time beyyer picks up their new vehicle, a picture is taken, an the entire sales staff is on hand to wish the new owner well. Not the type of treatme that U.S. car buyers are aceustomed to receiving at traditional dealerships! Saturn's success is dependent on meeting and exceeding customer expectations a an ongoing basis, given the intense competition between brands in the small-car mar ket. There is evidence that the company is up to the task. Regular surveys of Satur owners consistently indicate that they would "enthusiastically recommend the pur chase of a Saturn" to other potential buyer.. Saturn also excels in the annual J.D Power and Associates Customer Satisfaction Index, the automobile industry's bench mark survey. Business Situation Saturn's logistics system is viewed is a critical component in the overall success of the organixation. The sxstem's supply chain management capabilities are fundamental to the company's ability to operate a just-in time manufacturing system. The logatics systerm focises on three prunary autivities-inbeiand material flow finidhat wascle tramporiation and service spansibility of the dirselor Organization is managral as
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