Adika fajar 0606159926 Alcedo Noor 0606159863

CREATING EXCELLENCE ON ALL FRONTSCREATING EXCELLENCE ON ALL FRONTS

Kendala:Kendala:

Weak model line-up (Harga mobil VW dianggap tidak Weak model line-up (Harga mobil VW dianggap tidak reasonable oleh konsumen)reasonable oleh konsumen)

Lack of value (reputasi buruk dalam sistem elektrikal dan Lack of value (reputasi buruk dalam sistem elektrikal dan mesin)mesin)

Inefficiency (Produsen mobil lain mampu berproduksi dengan Inefficiency (Produsen mobil lain mampu berproduksi dengan lebih efisien)lebih efisien)

High cost base (Biaya operasional pabrik terlalu tinggi)High cost base (Biaya operasional pabrik terlalu tinggi)

Kurangnya integrasi antara merek-merek yang dikelola Kurangnya integrasi antara merek-merek yang dikelola sehingga terjadi duplikasi biaya yang tidak perlu.sehingga terjadi duplikasi biaya yang tidak perlu.

• Tantangan bagi VW (pada periode 90-an)Tantangan bagi VW (pada periode 90-an)

• Mengatasi negative return on salesMengatasi negative return on sales• Mampu bersaing dengan produsen mobil lainMampu bersaing dengan produsen mobil lain• Mengelola portfolio merekMengelola portfolio merek• Menekan biaya operasional pabrikMenekan biaya operasional pabrik

Tren Industri Otomotif di periode 90-an

1. Perubahan revolusioner dalam proses manufaktur (system based on a

network of suppliers, JIT, lean system, outsourcing, kanban dll)

2. Perubahan dalam persepsi dan gaya hidup konsumen (ditandai munculnya

beragam niche segment)

3. Isu lingkungan dan efisiensi bahan bakar.

4. Perkembangan pesat bisnis penunjang industri manufaktur mobil (finance,

asuransi dll)

5. Aliansi strategis antar produsen mobil dalam R&D

VW's successful VW's successful implementation of a platform implementation of a platform manufacturing system, its manufacturing system, its globalization strategy, the globalization strategy, the move up-market, cost-cutting move up-market, cost-cutting programs and many programs and many innovations along the innovations along the business system had led the business system had led the group's net income increased group's net income increased to a record-breakingto a record-breaking

Volkswagen Financial performance era 1993-2001Volkswagen Financial performance era 1993-2001

Piëch and his management team succeeded in integrating where it made sense, while differentiating where it mattered to customers.

VW was therefore able to reap economies of scale over models, brands and regions.

VOLKSWAGEN : VOLKSWAGEN : great turnaround strategygreat turnaround strategy

Gradual change in perception of the company's line of products:Gradual change in perception of the company's line of products:

1.1. Audi having elevated into premium luxurious carsAudi having elevated into premium luxurious cars

2.2. Volkswagen moved upmarket to fill the void left by Audi (the Volkswagen moved upmarket to fill the void left by Audi (the

fifth-generation Passat launched)fifth-generation Passat launched)

3.3. Seat and Skoda now occupying what was once VW's core Seat and Skoda now occupying what was once VW's core

marketmarket

4.4. In 1994, start the development of new bettle.In 1994, start the development of new bettle.

5.5. This (VW) move upmarket was continued with the Mark 4 Golf, This (VW) move upmarket was continued with the Mark 4 Golf,

introduced at the end of 1997.introduced at the end of 1997.

VOLKSWAGEN

success story:

Keeping the brands

distinct

MANAGING PRODUCTS PORTFOLIO:MANAGING PRODUCTS PORTFOLIO:

..trough the heart and soul of the brand..trough the heart and soul of the brand

AUDI A8 4.2

VW PHAETON

Modular manufacturing

system “PLATFORM D”

(wiring-steering-braking diagrams)

VOLKSWAGEN

success story:

Platform strategy

*At a modular Volkswagen production facility, there is not a single VW assembly worker in the plant. A network of independent contractors provides all the components and performs the assembly. A small group of Volkswagen employees are on hand only to inspect the vehicles once they are finished.

• Integrate VW plants within the same region.• Similarity of the platform allowed for short set up times in factory,

underutilized plants receive parts from other plants.• Flexible production schedule, improve the flexibility and efficiency of

production.• Foreign employment level had increased from 41% (1993) to 51%

(2001)• Worker in Wolfsburg had their work time reduced by 20% and

received 16% less salary (in 4-day workweek).• In all modular production facilities, wages are dramatically lower and

unions are much weaker* than in traditional auto plants.

Global manufacturing system, modular production Global manufacturing system, modular production and platform strategyand platform strategy

Piech said: "You don't win battles by being friendly."

• Piech is a car-obsessed engineer and perfectionist.

• Piech has claimed that the three great loves of his life are: Volkswagen, family, and money.

• Breaking the old traditions: arranged new product portfolio and new manufacturing strategy

• Strict management policy. Many speak that he uses dictatorial management style.

• Piech is known for his determination and ambition.

• His aggressive style moves VW groups into new market segments (Bugatti, Lambo, Bentley, etc)

Ferdinand Piech, Ferdinand Piech, ““the driven man of VW”the driven man of VW”

1993-2002 - PIECH transform VW into big cash machine1993-2002 - PIECH transform VW into big cash machine

VOLKSWAGEN FUTURE VOLKSWAGEN FUTURE CHALLENGECHALLENGE

• Keep the competitive Keep the competitive advantage sustainable. advantage sustainable.

• Evaluate intangible value in Evaluate intangible value in structure, people, system and structure, people, system and stakeholder management.stakeholder management.

• Maintaining economies of Maintaining economies of scale from global scale from global manufacturing and sales manufacturing and sales worldwideworldwide

• Environmental issues: Environmental issues: Volkswagen has the worst Volkswagen has the worst global warming scores (2007)global warming scores (2007)

• Aware the role of new Aware the role of new technologies (efficient Diesel technologies (efficient Diesel engine, hybrid electric engine, hybrid electric drivetrains or flexible-fuel drivetrains or flexible-fuel vehicles)vehicles)