An operational performance improvement approach in automotive industry

Increasing competition level and low profitability in automotive industry force companies to improve their processes. Supply chains are examined, in order to reduce non‐quality cost, quality circles are established, six sigma and 8D problem solving methods are implemented, standards are created and all these are audited by internal and external auditors. In human resouces department, to have less turnover among employees, performance evaluations are put in practice, promotion systems are established and run, suggestions are carefully listened and actions are taken to create work conditions that employees want to work in years. In production, lean manufacturing technics are implemented and transport, inventory, motion, waitings, overproduction, overprocessing, defects are eliminated. While all these technics are carried out, processes effect to each other but it is ruled out by the managers or there may not any preventive actions to clear negative interactions. While all developments are carried out throughout the company, potential results should be foreseen and in order to get maximum benefit from all departments, process should be coordinated very well. In this study, to reduce labor cost ‐ one of biggest portion of EBITDA ‐ two stage resource planning model has been presented.Within the scope of thesis, aggregate production planning and its models and solving methodologies have been summarized in second chapter. Following, allocation&assignment models have shown to how to share resources and also problem solving technics have been explained as well in chapter 3. In chapter 4, aggregate production planning technics and assignment technics are merged and two stage resource planning model are emerged. The goal of that model, taking advantage of aggregate production planning to forecast and plan all needed items such as labor, inventory etc. in defined time horizon and then workers are assigned to lines according to their skills to minimize labor cost. All models that proposed are mathematically shown with notations and expressed with sample implementation.