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1. Companies Profile: 2. Divisions: 3. Chrysler Manufacturers

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1. Companies Profile: 2. Divisions: 3. Chrysler Manufacturers 1. Companies Profile: Trading Name : Chrysler Type : Limited Liability Company Industry : Automotive Parent : Fiat Chrysler Automobiles Founded : Walter Chrysler Founder : Chrysler Corporation (June 6, 1925), Chrysler Group LLC (June 10, 2009) Headquarters : Auburn Hills, Michigan, U.S Area Served : Worldwide Products : Automobiles, Commercial vehicles, Automotive parts Number of Employees : 77817 (2014) 2. Divisions: Chrysler Dodge Jeep Ram Mopar SRT 3. Chrysler Manufacturers: 3.1 Canada: Brampton Assembly, Brampton (Ontario) Products: o Chrysler 300, o Dodge Challenger o Dodge Charger Etobicoke Casting, Toronto (Ontario) Products: o Aluminum Die Castings, Pistons Windsor Assembly, Windsor (Ontario) Products: 1 o Chrysler Town & Country, o Dodge Grand Caravan o Lancia Voyager o ARam C/V Tradesman) 3.2 Mexico: Saltillo Engine, Ramos Arizpe (Coahuila) Products: o Chrysler Hemi engine Saltillo South Engine, Saltillo (Coahuila) Products: o Chrysler Pentastar engine Saltillo Truck Assembly, Products: o Saltillo (Coahuila) Ram1500, 2500/3500, 4500/5500 o Ram ProMaster Toluca Car Assembly, Toluca(Mexico) Products: o Dodge Journey o Fiat Freemont o Fiat 500 3.3 United States: Belvidere Assembly, Belvidere (Illinois) Products: o Dodge Dart o Jeep Compass o Jeep Patriot Conner Avenue Assembly, Detroit (Michigan) Products: o Dodge Viper o Viper V10 engine Indiana Transmission 1&2, Kokomo (Indiana) Products: o Transmissions Kokomo Casting, Kokomo (Indiana) Products: o Aluminum parts Kokomo Transmission, Kokomo(Indiana) Products: o Transmissions o Engine block machining Mount Elliott Tool and Die, Detroit (Michigan) Products: o Tools and dies o Checking fixtures o Stamping fixtures Sterling Stamping, Sterling Heights (Michigan) Products: o Metal stampings Warren Truck Assembly, Warren (Michigan) Products: o Ram 1500 2 3.4 Venezuela: Carabobo Assembly, Valencia(Carabobo) Products: o Jeep Cherokee o Jeep Grand Cherokee o Fiat Siena/Dodge Forza 4. FMS in Chrysler: 4.1 Challenges before FMS in Chrysler: Chrysler was challenged by the Niche oriented automotive market, and its proposed solution was to increase the number of models it offers while decreasing the capital investment. More importantly, they recognized that a market with unpredictable demand requires a rapid manufacturing response. 4.2 Installation of FMS in Chrysler: Chrysler has implemented flexible manufacturing at SNAP, Belvidere, Brampton, Windsor and its St. Louis plant. In 2003, Windsor Assembly became one of the first Chrysler plants to implement the flexible manufacturing strategy and in 2005 FMS was rolled out in the Belvidere plant. In 2004 when Chrysler Pacifica's production began, it was produced on the same production line as its Grand Caravan and Minivan. This was the first time when a Chrysler Group manufacturing facility was able to produce two different products on the production line. The key to Chrysler Group's flexible manufacturing is the order in which the body is assembled, using a unique underbody palette system in the body shop. 5. Advantages of FMS in Chrysler: Amid heavy competition, FMS helped Chrysler to reduce its cost of production and thereby improving its profit margins. On the other hand its competitors like General Motors and Ford have to cut down on prices to stay competitive which eventually affected their profits. According to Chrysler, FMS reduced the number of workers in the body assembly. It also helped the company to easily shift cars to different plants. Flexible Manufacturing System helped improved the plant to work close to its maximum capacity. This adds to the profitability in a capital intensive industry like automotive. With flexible manufacturing, the Chrysler Group said it will save nearly $100 million for the Pacifica launch while simultaneously reducing tooling and facilities capital expenditures by approximately 40 percent. FMS will lead to better capacity utilization and hence the company will be able to meet the market demand more quickly and with less cost. This will help to strengthen the competitive position of Chrysler in the industry. FMS gave Chrysler the ability to increase or decrease the production capacity easily as per the market demand. The company's flexible efforts support the addition of five new products to the current long-range product plan and will help the company to attain its objective of producing additional one million units by 2011. 3 6. Net Income Analysis: In 2002, 2003 and 2005 Chrysler introduce FMS and by this chart the total income of Chrysler increases in 2004 and then it goes on increasing, the ups and downs are another issue. Total income of Chrysler in Billion Dollars 120 97.286 94.06 100 60.92 75.07 66.72 82.68 80 67.42 63.67 55.25 56.15 49.42 55.42 56.98 60 40 20 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total 7. Sales Analysis: By using FMS in Chrysler the sales in 2003, 2004 and in 2005 increases, by using FMS Chrysler gains less loss because this helps Chrysler to produce exactly according to the demand of customer. 3,000,000 Sales of Chrysler 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Sales 8. Operating Profit Analysis: The operating profit gradually increases after the installation of FMS in Chrysler from 2002 to onward, from the chart we came to know that before FMS the operating profit is less. 4 Operating Profit in Million Dollars 609 1252 506 2002 2003 2004 2005 1598 2006 1718 9. Number of Employees: Number of Employees 2006 2005 2004 2003 2002 0 20000 40000 60000 80000 100000 120000 From this chart we see that by installing FMS the number of Employees decreases due to automation. 10. Conclusion: From the above data and analysis, I conclude that before installing Flexible Manufacturing System in Chrysler the total income, operating cost and number of employees are more and this is the reduction of overall profit. But after Installing Flexible Manufacturing System Chrysler increases its profit after 2002-2005. By using Flexible Manufacturing System they overcome many losses, and the productivity rate also increases. Which make them to have the slogan “America’s Import” 5 .
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