Auto Parts Sector Research Articles

COVID-19 and industrial resilience in the Global South. A case study on the auto parts sector in Mexico

The global COVID-19 pandemic has exposed the low level of resilience of supply chains and the fragility of employment in most economic sectors. This research, which is based on two independent online surveys, explores the level of readiness of automotive firms in Mexico to adopt I4.0 technologies, as well as the mitigation strategies adopted by such firms to overcome the economic effects of COVID-19. The results indicate a low level of readiness and understanding of I4.0 technologies in the automotive parts sector in Mexico and that most of the COVID-19 mitigation efforts have been focused on workforce management strategies, rather than on technological solutions.

COVID-19 and industrial resilience in the Global South. The case study of the auto parts sector in Mexico.

COVID-19 and industrial resilience in the Global South. The case study of the auto parts sector in Mexico.

Insolvency Risk. Application of Altman Z-score to the auto parts sector in Romania

This paper intends to apply the Altman Z-score model to all the companies active in the wholesale of motor vehicle parts and accessories (NACE 4531), with extended financial statements. Using the panel data model over the time series for 2008-2016 on the companies of this sector, we conclude that 99% of the Z-score is explained by the independent variables (working capital, capital structure, turnover, earnings before interest and tax), with estimated parameters very close to the models classical values. The sample description of the paper and the corresponding results highlights the Z-score evolution by turnover clusters and principal components, with the largest companies performing the best (the only cluster with Z-score median above 3). We notice a tendency for decreasing high risk companies and increase in the medium risk companies, whereas the low risk companies are relatively stable. This improvement is mostly due to increasing capitalization rate and less external debt, despite the deteriorating working capital and operating margin. We believe that future research to evaluate Z-score sensitivity under stress test scenarios would be very useful to provide an insight of companies’ insolvency risk amid increasing interest rates and different fiscal tax on dividend.

Benefícios da aplicação da metodologia SMED para a redução de tempo de setup em células de manufatura de usinagem

Atualmente as empresas necessitam se manterem competitivas no mercado, por isso é necessário que sejam implementados métodos para obtenção de melhorias do processo e redução de custos. No ambiente produtivo, um dos principais causadores do aumento de desperdícios é o setup, e uma das metodologias utilizadas é o SMED (Single Minute Exchange of Die), capaz de proporcionar a redução do tempo do setup. Neste contexto, o trabalho apresenta uma melhoria de redução do tempo de setup no processo de usinagem em uma empresa no ramo de autopeças, baseado nos conceitos da metodologia SMED visando o uso de técnicas de separação, redução do tempo de setup, padronização das atividades e melhorias do processo. A metodologia utilizada para o desenvolvimento do estudo foi baseada em uma pesquisa explicativa do tipo pesquisa-ação correlacionada ao uso do método DMAIC. Com as melhorias implementadas, obteve-se a redução do tempo de setup e aumento da disponibilidade.

Entrepreneurial attitude and success in the Colombian auto parts sector

The growth, transformation and development of new economic sectors of a country can be determined from the entrepreneurship. This entrepreneurial attitude manifests itself from different approaches, not only by the emergence of new companies, but also by decision-making and entrepreneurial activity, in certain situations. Business success can be attributed to the different influences, changes and pressures caused by the environment, or to special characteristics of entrepreneurs, personal aspects and environment. This article aims to analyze intra-entrepreneurship as a business renewal strategy, exploring the auto parts sector, through a qualitative study in a sample of companies in the auto parts sector in Colombia. The results conclude that despite the fact that intra-entrepreneurship is considered a strategic scenario for business renewal, Colombian auto parts companies do not promote their strategic development.

Layout Lean model of production management based on change management to improve efficiency in the production of packaging in auto parts sector SMEs

This investigation proposes a lean model of production management for a small and micro enterprise (SME) dealing in packaging production in the auto parts sector, with the purpose of increasing efficiency in its production line. To this end, this model integrates study method tools and SMED, seeking to reduce waiting times and unnecessary operations, which have been identified as causing the problem on the basis of an initial diagnosis of the situation. Furthermore, to support and guarantee success in implementing these tools, John Kotter’s Change Model is used. After two months of implementation, the results showed a 50% reduction in setup operation time and a 32% decrease in filing operation time, which are bottlenecks in the production process. Thus, with the new indicators, the line efficiency increased by 7% from the initial situation, thus showing improvement.

An Analysis of Total Quality Management (TQM) within the Thai Auto Parts Sector

The study intended to investigate the factors that affect the total quality management (TQM) process in the 1,800 firm Thai auto parts industry. Automotive parts export shipments from Thailand are ranked 13th globally and are destined for over 100 countries, with Thailand’s combined automotive industry representing 12% of GDP. Therefore, with the authors understanding the importance of this economic sector, a research tool was developed, which contained a five-level scale to investigate 455 auto parts managers, executives, and owners’ opinions. Topics surveyed included the respondents’ opinions on the effects of knowledge management (KNG), product quality (QLY), strategic planning (STY), and technology and innovation (TIN) on the Thai auto part industry TQM process. The study’s eight hypotheses made use LISREL 9.1 software to analyze the final structural equation model (SEM). Results showed that all the model's variables had a positive influence on TQM, which can be combined to explain the variance of the factors affecting TQM (R2) by 78%. Additionally, the variables affecting TQM ranked in importance were STY, KNG, QLY, and TIN. Disruptive change has also arrived within the automotive sector, as Industry 4.0 technologies, the Internet of Things (IoT), and artificial intelligence (AI) are being used in the development of a new generation of autonomous and electric vehicles (EVs), making many current manufacturers' technologies and processes obsolete. Therefore, management and vendors must embrace these changes for their survival. The study's results highlight the necessity for international firms to embrace innovation and technological change to retain a competitive advantage or even their survival. Governments and educational institutions must also go the ‘extra mile' to support their domestic automotive and auto parts sectors.

Insolvency Risk. Application of Altman Z-Score to the Auto Parts Sector in Romania

This paper intends to apply the Altman Z-score model to all the companies active in the wholesale of motor vehicle parts and accessories (NACE 4531), with extended financial statements. Using the panel data model over the time series for 2008-2016 on the companies of this sector, we conclude that 99% of the Z-score is explained by the independent variables (working capital, capital structure, turnover, earnings before interest and tax), with estimated parameters very close to the model`s classical values. The sample description of the paper and the corresponding results highlight the Z-score evolution by turnover clusters and principal components, with the largest companies performing the best (the only cluster with Z-score median above 3). We notice a tendency for decreasing high-risk companies and increase in the medium risk companies, whereas the low-risk companies are relatively stable. This improvement is mostly due to the increasing capitalization rate and less external debt, despite the deteriorating working capital and operating margin. We believe that future research to evaluate Z-score sensitivity under stress test scenarios would be very useful to provide an insight into companies’ insolvency risk amid increasing interest rates and different fiscal tax on dividends.

Liderazgo, contrato psicológico y empoderamiento: sus vínculos en organizaciones fronterizas mexicanas

En la actualidad, las empresas consideran primordial desarrollar las habilidades de sus líderes, con la finalidad de lograr el éxito organizacional. En esta investigación, el objetivo fue indagar la influencia que tiene el liderazgo transformacional sobre el contrato psicológico y la incidencia de este sobre el empoderamiento. La investigación se desarrolló en el contexto de la frontera norte de Chihuahua a través de un estudio cuantitativo, no experimental, transversal, descriptivo y causal. En total se encuestaron a 310 empleados que laboran como mandos medios y superiores en el sector autopartista de la industria manufacturera de exportación, seleccionados por conveniencia. Los datos se analizaron mediante la técnica estadística Modelado Estructural basado en mínimos cuadrados parciales (PLS, por sus siglas en inglés). Los resultados revelan que la relación del liderazgo transformacional incide significativamente de forma directa e indirecta sobre el empoderamiento, a través de la mediación del contrato psicológico.

Valuation of an innovation strategy in the diversification of products in the agricultural auto parts sector

Purpose The purpose of this paper is to value an innovation project derived from a product diversification strategy in the agricultural auto parts sector, considering uncertainties and flexibility as sources of value for the project. Design/methodology/approach A case study project is presented and valued using real options, with the possibility of including new information modelled by Bayes’ theorem, which enables the fitting of the probabilities of the project for the purpose of valuation through the decision tree method. Findings The results indicate the effect of new information and provide implications for value creation, demonstrating the need for a more profound and systematic approach to the use of investment strategies considering factors endogenous and exogenous to a firm that can and should be considered in the decision-making process. Practical implications This study contributes to an understanding of the relationship of strategy and innovation through product diversification with value creation and serves as a guide for controlling the possibility of investments in diversified companies and agribusiness using the methodology discussed in this paper. Originality/value Valuing the inclusion of new information through Bayesian inference in the analysis of investments is a methodological feature that has received minimal attention in the literature. Therefore, the use of Bayesian theory for the real options model applied to agribusiness is the main innovation of this study to demonstrate new ways of modelling uncertainty in addition to stochastic processes.

Analysis of the internal strategic alignment of the production strategy: case study in an auto parts company of the municipality of Sorocaba/SP

Abstract The auto parts sector plays an important role in the national economy and has the need to become more competitive in face of some difficulties in the current context. In this scenario, it is considered of great importance the alignment of the production strategy and its contribution to the competitiveness of the sector in the country. Thus, the research aims to analyze, based on methods proposed in the literature, the degree of internal alignment of the production strategy in two segments of one company in the auto parts sector. The method adopted was the case study, being the research of combined character that makes use of the qualitative and quantitative approach. Among the main results, it can be seen that, although the organization analyzed has more control over the production process technologies for products that serve the commercial vehicle market, there are efforts to reduce the product portfolio and standardize the products offered in the market. with cost as the competitive priority emerging.

Factores Relevantes De Competitividad En Pymes

Competitiveness in all areas has increased with the opening of trade worldwide. This resulted to greater pressure on entities that have lags compared to others that are more prepared and which are better located internationally. In this context, small and medium-sized enterprises (SMEs) show lower levels of competitiveness than the large industry. This occurs most especially when they are located in developing countries, given the holistic nature of competitiveness. This paper focuses on identifying the relevant factors of competitiveness of SMEs. During the bibliographic research, networks, finances, innovation, and information systems were identified as recurrent preponderant factors in the four levels of systemic competitiveness: micro, meso, macro, and meta. This article shows the result of the first stage of the research, and is structured with concurrent triangulation design to perform cross validation of quantitative and qualitative aspects. The study was performed using a non-probabilistic sampling and with systemic representation through personalized interviews of different people from different groups involved in the system of which the SME’s of the State of Puebla, Mexico, are partly related to the automotive and auto parts sector. The four factors were confirmed in this research stage and, at the same time, five other relevant factors were also recognized: knowledge, culture, specialization, diversification, and institutionalization. The identification of the predominant factors of competitiveness offers the possibility of developing them holistically by the various related actors that provide the enabling environment for the strengthening of SMEs.

The Relationship Between Environmental Pressure and Strategic Behavior: A Research on SME of the Auto Parts Sector

This study aimed to analyze the relationship between environmental pressures and strategic behavior of MSE belonging to a trade group for auto parts. Results of the survey conducted – and satisfactorily answered by 32 companies - showed the prevalence of the "analytical" generic strategy, composed of little more than half the sample, followed by the "defensive" strategy and finally, a smaller number of companies with "reactive" strategies according to the classification of strategic behavior of Miles and Snow. A cluster analysis effected from environmental pressures to which the companies are subject resulted in their grouping into three groups. In turn, the results of both the chi-square test as the confirmatory discriminant analysis did not show a strong dependency relationship between competitive strategies adopted by the companies surveyed and environmental pressures. To some extent, this conclusion corroborates the theory, since the universe surveyed (small and micro enterprises with mild to moderate degree of maturity), apparently is not the most fertile ground for the application of the conditions of the school's environmental strategy. Another possible explanation for this result also supported by the theory is that, even when their companies are subject to similar environmental pressures, each leader may interpret the environment individually, as suggested by the cognitive approach to strategy.

Reverse logistics in the Chinese auto-parts firms: implementation framework development through multiple case studies

In recent years, the implementation of reverse logistics (RL) in automobile manufacturing has drawn extensive interest from the Chinese government that has launched relevant take-back and environmental regulations and pilot projects. This study focuses on RL implementation issues in Chinese auto-parts manufacturing sector. Based on comprehensive literature review and multiple case studies in the Chinese auto-parts firms, this paper proposes a conceptual RL framework and highlights the major implementation issues. The purpose of this paper is to draw an overall picture of RL in the Chinese context, highlighting implementation issues in the auto-parts sector. Our study suggests that Chinese RL implementation requires close government monitoring mechanism and incentives, top management commitment within firms, technology and human capabilities support.

USES OF ERP SYSTEMS AND THEIR INFLUENCE ON CONTROLLERSHIP FUNCTIONS IN BRAZILIAN COMPANIES

Controllership and Information Technology provide ways for companies to adapt to the competitive context of business environments. As such, the aim of this research is to identify and analyze the impacts of ERP systems on Controllership functions, verifying the relationships between the use of solutions and possible improvements in such functions. The need for management control and operations control were observed. This research is descriptive and exploratory of the survey kind. The subjects mentioned in this research are managers involved in Controllership activities in large companies from the Auto Parts sector in the State of Sao Paulo. The data obtained through a questionnaire by non-probabilistic samples were analyzed with the use of descriptive statistics. According to the subjects, ERP systems modify Controllership functions and better serve the control needs of the operations. The results showed problems to be overcome in management control.

Intellectual Capital and Value Creation in the Production and Assembly of Vehicles and Auto-Parts Sector in Brazil

This work investigates the relationship between intellectual capital and value creation in the sector of Production and Assembly of Vehicles and Auto-parts in Brazil. Through the access of the database from the Annual Industrial Research conducted by the Brazilian Institute of Geography and Statistics, we gathered 865 observations, from 2000 to 2006, of public and private Brazilian companies with more than 100 employees. The database allows the estimate of relevant aggregated variables such as national accounts, gross domestic product, intermediate consumption, as well as propitiates a sectorial study of business strategies and performance, including value added by individual companies. In particular, in this study we use data on variables associated to intellectual capital. To achieve the goal of the study, we consider intellectual capital as defined by Pulic (2000, 2002), including human capital and structural capital. For the analysis of business performance, we used Pulic’s VAIC index as a measure of efficiency of the employed financial and intellectual capital. Regression models were run to verify the relationship among the efficiency in the use of intellectual capital and the profitability of Brazilian companies. The gross income, calculated as before selling, general and administrative expenses, depreciation expenses, amortization and interest expenses, was used as measure of the flows of value creation and the profitability was measured by the gross income to the total assets of the companies. Considering the constructs defined by Pulic (2000, 2002), we tested, for the Brazilian sector of Production and Assembly of Vehicles and Auto-parts, the following hypotheses: (i) there is a positive relationship between value creation and intellectual capital, (ii) there is a positive relationship between value creation and stock of intellectual capital, (iii) there is a positive relationship between value creation and efficiency of the employed capital , (iv) there is a positive relationship between value creation and efficiency of the human capital, (v) there is a positive relationship between value creation and efficiency of the structural capital. The results of the study, obtained through panel data analysis and through the use static and dynamic models, support the hypotheses that the intellectual capital of the companies, in its flow and stock dimensions, is positively and significantly related to value creation.

Network composition, collaborative ties, and upgrading in emerging-market firms: Lessons from the Argentine autoparts sector

What types of relational and institutional mechanisms shape knowledge flows and the upgrading capabilities of emerging-market firms in the face of economic liberalization? We analyze the Argentine autoparts sector to distinguish the relative impact of different types of network relationships on a firm's process and product upgrading. A few social ties to international assemblers appear to be most beneficial for local suppliers, although they may be insufficient to compensate fully for the negative effect of being located in a lower tier. Supplier–customer relationships that are part of regular, disciplined discussions for product and process improvements appear to be especially beneficial for upgrading.

An empirical study of purchasing strategy in automotive industry

PurposeThe purpose of this paper is to discuss how the incentive from transaction cost can be beneficial due to the selection and implementation of the purchasing strategy under different scenarios in the value chain, including the automotive assembly sector and auto parts sector. Furthermore, it aims to investigate how to reach break even point between transaction cost and agency cost and to further achieve the goal of cost minimization.Design/methodology/approachThis is empirical analysis of variables constructed from transaction cost theory and data obtained from two famous motor companies in Taiwan automotive industry. This study adopts the probit model and tobit regression model to test and discuss the parameters in the model to deeply realize the influence of transaction cost variables towards purchasing strategy.FindingsThe findings prove the situation of multiple sourcing in supplying auto parts and demonstrate that the dimensions in transaction cost are truly important factors to affect the purchasing strategies. In addition, the empirical results show the explanatory capabilities of variables are very significant in monopoly power, steering system, electro mechanism, and other parts systems.Practical implicationsThe awareness on transaction cost are beneficial to partner selection of automotive companies in Taiwan. These findings also improve the quality of purchasing strategy in Taiwan automotive industry.Originality/valueThis study explores the variables of transaction cost influencing purchasing strategies. In addition, the knowledge on transaction cost towards purchasing strategy helps companies enhance the quality in future purchasing strategy and select their suppliers.

Resource-Based View: Study of External Relationships and the Impact of These Relationships on the Profitability and Performance of the Organization

This article refers to a survey based on the study conducted by French author Rodolphe Durand, undertaken in 1999, which, adopting the concepts of RBV (Resource-Based View), sought to explain the differences in the profitability, margin and market performance of companies. According to the author, these differences result from three factors, which he considers sources of profitability for the company: inimitability and transfer of internal productive resources, possibility of substituting customers and suppliers, and the level of internal coordination of the company (DURAND, 2001). The survey was applied in the Brazilian auto-parts sector, and the chief objective was therefore to reproduce the survey carried out by the French author, in order to collaborate to the analysis of factors that could contribute towards the differentiation of companies from this sector in the Brazilian market; differentiation that is accountable for the creation and allocation of economic income. This first research tried to analyze the impact of external relations of organizations with customers and suppliers on the profitability, margin and market performance of auto-parts companies in Brazil. Quantitative data was collected in face-to-face interviews with directors, CEOs and general managers using a questionnaire. The sample represents a random sample of medium sized firms and the data was analyzed by Structural Equation Modeling.