The growing competition in global markets today has led industries and corporations to find different approaches for reducing production and manufacturing costs to keep their competitive edge. This case highlights the issue of quality in the product which was supplied by Agile Electric. Automek Inc. is a multinational company based in US, whereas Agile Electric is based in Chennai, India and makes auto components such as electrical parts for the automotive industry. Agile Electric plant is recognized to produce and supply electrical motor and parts both for local and international automotive clients. In line of their massive success and growth, “Agile had implemented a few of the best practices in manufacturing in its operations, such as workplace organization, dashboards and visual management, which were incorporated on the lines of Toyota Production Systems. Its sales turnover had reached US$56.2 million in 2007, and was expected to grow at five percent annually for the next two years.” (page 2) Agile also have certified their organization with QS 9000 standards which applied for automotive industry requirements. Because of their good quality of product and delivery performance, Agile has been awarded with Automek business since 1998 …show more content…
From the audit, Automek found some issues in ECPL and suggested Agile to work closely with ECPL to resolve the issues. Additionally, Agile was asked to provide consistent update on the improvement plan that work with ECPL to Automek. This is to confirm the product actuator quality and manufacturing to run smoothly moving forward. Even though ECPL had obtained 5S and ISO 9000 certification, it never had a worked with Automek who have different requirements compare to ECPL current customers who are more electronic based manufacturers. Agile should had notice this business background of ECPL as automotive parts required different due diligence for different operating