Production Organization and Logistics Effectiveness in Automotive Industry – Dacia-Renault Case Study

Abstract:

The purpose of the paper is to analyze the role production organization and logistics effectiveness have in designing a reliable supply chain in the automotive industry. Despite extensive research on automotive industry topics, there is little research that points out specific key performance indicators (KPIs) used within the industry to support the strategic decision-making process.  The paper conducts a comparative case study upon two car manufacturing plants of the French car manufacturer Renault: the George Besse plant in Douai, France and the Automobile Dacia plant in Mioveni, Romania, and highlights which KPIs source the two plants’ competitive position and development strategy plans within the French group. A performance analysis tool is used to process the amount of empirical data gathered throughout the conducted research internships within the two countries. Findings reveal that a plant’s manufacturing flexibility, ergonomics and specific work organization conditions as well as its network of suppliers and the associated logistics infrastructure are the most important factors leading the decision-making process at strategic level.