Automotive Manufacturing Company Research Articles

THE INFLUENCE OF PROFITABILITY RATIO AND ACTIVITY RATIO ON FINANCIAL PERFORMANCE IN AUTOMOTIVE SUB-SECTOR MANUFACTURING COMPANIES AND THEIR COMPONENTS LISTED ON THE INDONESIAN STOCK EXCHANGE YEAR 2018-2022

This research aims to examine and analyze the influence of profitability ratios and activity ratios on financial performance in automotive sub-sector manufacturing companies and their components listed on the Indonesian Stock Exchange in 2018- 2022. This research includes quantitative research. The data used in this research is in the form of annual financial reports of Automotive and Component Subsector Manufacturing companies listed on the Indonesia Stock Exchange for 2018-2022. The sampling technique uses the Purposive Sampling method. The population is 15 companies. The sample that meets the criteria is 10 companies. The analysis technique used in this research is multiple linear regression analysis with the help of the SPSS program. Based on the results of data analysis using SPSS 25, it shows that the Profitability Ratio which is proxied by ROE and ROA has a significant effect on financial performance with a significance value of ROE of 0.028 and a significance value of ROA of 0.011, the Activity Ratio which is proxied by Inventory Turnover & Total Asset Turnover has a significant effect on performance. finance with an ITO significance value of 0.013 and a TATO significance value of 0.050. Simultaneously, the Profitability Ratio and Activity Ratio variables have a significant effect on financial performance with a significance value of 0.008.

Achieving Work-Life Balance: A Tan Sri Syed Zainal Experience

One Saturday morning in 2005, Syed Zainal sat at his desk contemplating the career decision he would have to make over the weekend. At 38, Syed Zainal was Chief Executive Officer (CEO) at HICOM Holdings Berhad, a Malaysian automotive manufacturing company, for ten years. Perodua just offered Syed Zainal a promotion to CEO, a position that would make him responsible for the entire division. Normally, Syed Zainal would have been blissful by such an opportunity, but he worried about its impact on his already fatigued personal life. Since his last promotion, he has struggled to balance an increasingly demanding workload with his responsibilities at home. Syed Zainal explained: “I have worked my whole career, and until now, I have never had any issues balancing work and home. However, things started spinning a bit out of control after my last promotion. At first, I thought I could handle the longer hours and more frequent travel, but it became a real drag on the family after a while. Then, two kids need my attention. That is when I realized it was time to change the situation. Syed Zainal has mixed feelings about accepting the promotion.” Over the past several years, Syed Zainal has taken steps to get his schedule under control. He and his wife Jan agreed that things were better. Nevertheless, another promotion would invert their lives all over again. As CEO, he could expect to be busier than before. It actually worried him. Syed Zainal found it hard to decide about accepting the promotion. He knew that the CEO of Perodua expected him to accept; in fact, he had emphasized that he had no second choice.

From intentions to action: how behavioural intentions shape employee performance through digital learning?

PurposeThis study aims to explore the impact of “Performance Expectancy” (PE) on the performance of Indian automotive manufacturing employees through their “Behavioural Intention” (BI) in the context of digital learning within the volatile, uncertain, complex and ambiguous (VUCA) world.Design/methodology/approachA descriptive research design was adopted to gather data from 211 employees of Indian automotive manufacturing companies. Structural equation modelling was applied for data analysis and obtaining results.FindingsLargely, the findings indicate that BI does mediate the relationship between PE and employee performance (EP) in the context of the Indian automotive manufacturing sector. The findings would help in boosting digital learning initiatives, improving EP and fostering organizational success in the VUCA world.Research limitations/implicationsThe current study focused on the Indian manufacturing industry. Extending the research beyond the manufacturing sector to other industries in India could possibly help in generalizing the findings, and thereby enhance knowledge of the broader consequences of digital learning on EP.Practical implicationsDigital learning platforms can enhance sustainable industrialization in the manufacturing sector by providing employees with access to digital learning opportunities. Managers must provide employees with access to digital learning opportunities for making them more creative and innovative, so that they can become real change agents, and can handle real-world problems more efficiently, leading the organization to deal with the complexities and unpredictability in this VUCA world.Originality/valueWithin the ambits of Indian automotive manufacturing organizations, there have been limited research studies that have used two constructs of the UTAUT2 framework to see their impact on EP in terms of digital learning. Thus, based on the limited information available, this research stands as a pioneering effort in the realm of digital learning within the Indian automotive manufacturing industry, where the relationship between PE and EP is examined through the mediational role of BI of employees. Moreover, this research possibly would pave the way for further research studies on exploring the role of potential factors influencing the strength and direction of the relationships between these variables (PE and EP).

Lean Six Sigma and Industry 4.0 implementation framework for operational excellence: a case study

The adoption of Lean Six Sigma (LSS) 4.0 has been recommended by researchers and practitioners as an effective strategy to enhance the operational excellence of companies, especially in highly competitive environments given the complementarity of LSS with Industry 4.0 (I4.0). Moreover, evidence suggests that companies commonly face difficulties and perceive the implementation process as challenging. To the best of our knowledge, there is currently no comprehensive global model available that offers a step-by-step approach for implementing LSS4.0. The purpose of this study is, therefore, to develop a structured framework that directs organizations to successfully implement LSS4.0. This study follows a combined approach including a systematic literature review to identify existing gaps in recent research and an expert panel to provide valuable insights and validation during the development of the framework. Additionally, a case study was conducted in an automotive manufacturing company to validate the findings. The proposed LSS4.0 framework is based on the DMAIC approach subdivided into fifteen steps. It permits managers to seamlessly integrate LSS4.0 into their processes and selectively choose the relevant tools as required, avoiding digitalization without a clear purpose. Also, it offers a comprehensive solution for managers addressing contemporary industry challenges and enhancing operational processes.

The Influence Of Profitability And Financial Leverage On Earnings Management And Its Impact On The Value Of Manufacturing Companies In The Indonesian Stock Ex-change (Case Study Of The Automotive Sub-Sector Period 2018-2022)

The practice of income smoothing still occurs in the Indonesian economy. There are sever-al cases of income smoothing that have occurred, including at PT. Kimia Farma Tbk, PT and Lippo Tbk where these companies have published different financial reports. The purpose of this research is to determine the direct effect of profitability on income smoothing, fi-nancial leverage on income smoothing, profitability on company value, financial leverage on company value, the indirect effect of profitability on company value through income smoothing, financial leverage on company value through income smoothing and Income smoothing has a direct effect on company value. This research uses a mixed method. The population used in this research is automotive sub-sector manufacturing companies listed on the Indonesia Stock Exchange for the 2018-2022 period. The sampling method is to use a purposive sampling technique so that the samples obtained are 50 samples. The re-search results show that there is no direct influence of profitability on income smoothing, there is no direct influence of financial leverage on profit smoothing, there is a direct influ-ence of profitability on firm value, there is no direct influence of financial leverage on firm value, there is no indirect influence income smoothing between profitability and company value, there is no indirect effect of income smoothing between financial leverage on com-pany value and there is no direct effect of income smoothing on company value.

Determination of Share Prices in Automotive Manufacturing Companies

Economic development and growth have increased significantly in the era of globalization. The capital market is one source of economic development in a country which has an important role as a means of financial funding for a company so that it can obtain financial resources from investors. The capital market provides long-term financial instruments with a maturity of more than one year, such as shares, bonds or what are usually called debentures, mutual funds and Exchange Traded Funds/ETFs, as well as derivatives. This aims of the research was to determine and analyze the influence of fundamental company conditions, the rupiah exchange rate and (Sertifikat Bank Indonesia/SBI) interest rates on share prices. This research used quantitative research and an associative approach carried out on automotive manufacturing companies listed on the IDX in 2018-2022. The total sampling technique was chosen for sampling. The results of this research are that the fundamental conditions of the company have a significant effect on share prices, while the rupiah exchange rate and SBI interest rates do not have a significant effect on share prices. This means that investors can consider the fundamental conditional condition of the company when they want to invest in shares, this research because a decrease or increase in the DER can affect the share price of automotive companies listed on the Indonesian Stock Exchange in 2018-2022.

The Influence of Digital Innovation and Reputation on Buyer-Supplier Relationship Mediated by Supply Chain Flexibility

This research aims to determine and analyze the influence of digital innovation and reputation on the buyer-supplier relationship mediated by supply chain flexibility. Empirical study: PT vendors. Astra Daihatsu Motor. The method used in this research is quantitative research. The population in this research is the buyer-supplier of the Automotive Manufacturing Company Vendor PT. Astra Daihatsu Motor. The sample required for this research is around 222 respondents from 500 employees. So, the research results show that digital innovation positively impacts buyer-supplier relationships and supply chain flexibility. Likewise, company reputation also has a positive influence on these two variables. In addition, the results of the analysis show that supply chain flexibility mediates the relationship between digital innovation/reputation and buyer-supplier relationships. The practical implication of this research is the importance of investing in digital innovation and maintaining a company's reputation to strengthen business relationships and increase flexibility in dealing with changing markets and customer needs. This research provides insight for managers in managing supplier relationships, improving their supply chain performance through technology, and building a strong reputation.

Structural Model for Analyzing the Impact of Social CRM on Customer Relationship Performance in Automotive Manufacturing Company

Social Customer Relationship Management (S-CRM) has been widely adopted by companies, including Indonesia's Automotive Manufacturing Companies (AMC). The adoption of S-CRM is aimed at enhancing customer relationship performance. However, there is limited research on implementing S-CRM can effectively support Customer Relationship Performance (CRP) in AMC. To address this gap, this research describes the conceptual model that illustrates the impact of S-CRM and other related factors on supporting CRP in AMC using Partial Least Square Modeling (PLS-SEM) method. The research's results reveal seven variables, eight hypotheses, and 45 indicators that can be used to increase CRP in AMC by implementing S-CRM. Result showed that only seven out of eight hypotheses are supported. This research can be used to provide recommendations for future studies on CRP in AMC, contributes to developing knowledge regarding integrating S-CRM in AMC and provides a basis for further research to enhance CRP in the company.

The Effect of Appraisal and Reward on Employee Motivation in the Suggestion System

This study aimed to confirm whether appraisal and reward significantly affect motivation individually, and whether appraisal significantly affects rewards. X Inc., an automotive manufacturing company in Indonesia, has implemented a suggestion system since 2012. In 2019, the company encouraged employee motivation to participate in the suggestion system through a reward and appraisal programme. The company proposed selecting the Employee of the Month through an appraisal of the best ideas and provided financial rewards to the winner. A survey was conducted at X Inc. to verify the proposed hypotheses regarding appraisal, reward, and employee motivation to participate in the suggestion system. To achieve the aforementioned goal, the study gathered data through interviews and surveys based on the indicators developed based on previous studies’ findings. The data were processed using Structural Equation Modelling (SEM) and showed that appraisal did not significantly affect employee motivation and reward; however, reward significantly affected employee motivation. The practical significance of this study includes recommendations for big enterprises to increase the monthly financial reward for employees who provide the best ideas. Theoretical novelty is the introduction of new indicators of employee motivation and the utilization of the SEM approach for their analysis.

PENERAPAN KAIZEN COSTING MENGGUNAKAN METODE PDCA UNTUK MEMAKSIMALKAN COST REDUCTION DI PT IBARA LIOHO INDONESIA

PT Ibara Lioho Indonesia is an automotive manufacturing company, specifically specializing in producing car power steering parts. Located in the Dwipapuri Industrial Area, Sumedang Regency. Improvement for competitiveness does not always have to focus on quality, functionality, design, and utility, but can also be in terms of cost (kaizen costing). Therefore, it requires careful management in analyzing production and re-calculating the costs that need to be incurred to produce a product. The research objective is to understand how to perform cost reduction in order to determine the total cost of kaizen costing for the existing problem. The research methodology used in this writing is a qualitative descriptive approach with the assistance of the PDCA method. The data used for problem-solving is obtained from literature studies and field studies. From the results of this research, it can be concluded that the implementation of kaizen costing can reduce manufacturing costs and process label writing at PT Ibara Lioho Indonesia. Thus, kaizen costing can be considered as an alternative for management to achieve cost reduction.

Risk Management Strategies for Chip Supply Chain Disruption: Case Study of R Automotive Manufacturing Company

This article addresses the chip supply chain problems faced by the global automobile industry, takes R automotive manufacturing company as a case study, and thoroughly researches the risk of the out-of-supply of the key raw material, chips, in the automobile manufacturing industry and its impact on the production of the enterprise. The article explains the importance of supply chain management in modern enterprises and points out supply chain risks. Taking the automotive manufacturing industry as the background, the article discusses in depth the importance of micro-control units as the electronic control units of automobiles, analyses the competitive advantages of R enterprises in the new energy vehicle market, analyses the risk characteristics of chip out-of-supply as well as the challenges faced by R enterprises under the influence of the global epidemic and market uncertainty, and proposes the strategies for R enterprises to cope with the risk of chip out-of-supply, including the strengthening of supply chain cooperation, formulating a reasonable procurement mechanism, establishing a good supplier relationship, and promoting independent research and development of chips. Finally, the findings of this paper are summarized, and relevant suggestions are provided for automotive manufacturing enterprises to avoid the risk of chip supply shortage.

Digital Transformation for Traditional Automakers: Comparative of General Motors and Volkswagen

This paper analyses the impact of various political, resource, economic, social, technological, competitive, organizational, and market aspects on the digital transformation of traditional automotive manufacturing companies. It also examines the marketing strategies General Motors (GM) and Volkswagen used in their digital transformation. GM has increased its online presence and customer satisfaction through social media, mobile applications, email marketing, search engine marketing, and after-sales service while enhancing brand awareness and loyalty. Volkswagen has increased brand awareness and customer loyalty by building an electric vehicle charging infrastructure, marketing on social media platforms, and mobile app services. These digital marketing strategies have positively influenced traditional automotive manufacturers' digital transformation.

Optimizing Lean Manufacturing Efficiency with Novel Line Balancing in the Automotive Exhaust Manufacturing Sector

This study examined the application of Lean manufacturing tools and a novel approach called line balance loss analysis in optimizing production processes at a Malaysian automotive exhaust manufacturing company. The primary objective was to align production rates with customer demand. Data collection involved two key aspects: gathering production process data for catalytic converters, front pipes, and muffler subassemblies, and acquiring technical data on Lean tools, including the innovative line balance loss analysis method, from one muffler production line. The integration of Lean tools with the new line balance loss analysis approach was found to be crucial. The multi-process/multi-machine line balancing approach went beyond eliminating Non Value Added (NVA) activities and focused on determining manpower requirements and task allocation among operators. The integration of the new line balance loss analysis method improved task distribution across workstations, enhancing overall process efficiency. The study's analysis of Lean tool applications and the innovative line balance loss analysis provided insights into the cellular manufacturing system of the production line. These findings offered valuable information for management decision-making and process improvement, ultimately leading to increased productivity and cost savings for the company.

Institutional Ownership Effect on Company Values with CSR and DER as An Intervening Variable

This study aims to examine whether institutional ownership has an effect on firm value with debt policies and corporate social responsibility as intervening variables in automotive sub-sector manufacturing companies and their components listed on the Indonesia Stock Exchange for the 2015-2021 period. In this study, institutional ownership is measured by INST, firm value is measured by price to book value (PBV), debt policy is measured by debt to equity ratio, corporate social responsibility is measured by CSRDI index. The population used in this study is the automotive sub-sector manufacturing companies and their components listed on the Indonesia Stock Exchange for the 2015-2021 period. The sample of this study amounted to 12 companies from a total population of 84 companies. Sampling using purposive sampling method. The data analysis tool used in this research is path analysis using smartpls3 software.
 The results of this study indicate that: (1) Institutional ownership has a significant positive effect on debt policy. (2) Institutional ownership has no significant positive effect on corporate social responsibility. (3) Institutional ownership has no significant positive effect on firm value. (4) Debt policy has a significant negative effect on firm value. (5) Corporate social responsibility has a significant positive effect on firm value. (6) Debt policy cannot mediate institutional ownership on firm value. (7) Corporate social responsibility cannot mediate institutional ownership on firm value.

A cooperative hierarchical deep reinforcement learning based multi-agent method for distributed job shop scheduling problem with random job arrivals

Distributed manufacturing can reduce the production cost through the cooperation among factories, and it has been an important trend in the industrial field. For the enterprises with daily delivered production tasks, the random job arrivals are regular. Thus, the Distributed Job-shop Scheduling Problem (DJSP) with random job arrivals is studied, and it is a typical case from the equipment manufacturing industry. The DJSP involves two coupled decision-making processes, job assigning and job sequencing, and the distributed and uncertain production environment requires the scheduling method to be more responsive and adaptive. Thus, a Deep Reinforcement Learning (DRL) based multi-agent method is explored, and it is composed of the assigning agent and the sequencing agent. Two Markov Decision Processes (MDPs) are formulated for the two agents respectively. In the MDP for the assigning agent, fourteen factory-and-job related features are extracted as the state features, seven composite assigning rules are designed as the candidate actions, and the reward depends on the total processing time of different factories. In the MDP of the sequencing agent, five machine-and-job related features are set as the state features, six sequencing rules make up the action space, and the change of the factory makespan is the reward. Besides, to enhance the learning ability of the agents, a Deep Q-Network (DQN) framework with variable threshold probability in the training stage is designed, which can balance the exploitation and exploration in the model training. The proposed multi-agent method’s effectiveness is proved by the independent utility test and the comparison test that are based on 1350 production instances, and its practical value in the actual production is implied by the case study from an automotive engine manufacturing company.

Application of Statistical Process Control for the Assessment of Supplier Performance and Process Capability in an Automotive Manufacturing Company

One of the most important attributes to manufacturing is product quality. It relates to the historical rejection rate during a period of time of the products delivered to the customer. Rejection is due to deviations from specifications in the raw material supplied by suppliers, process design, and the quality control of the manufacturing process. The non-conforming parts can be detected during incoming inspection or during work in process. With regards to this, the standardization and maintenance of process equipment are of prime importance in ensuring the quality of a process and the products that are derived. Cost is another important attribute of the product as it affects the bottom-line. In this regard the competence of the supplier of raw material to design, develop and launch products within specifications becomes imperative in a manufacturing process. In the current competitive environment, it is crucial to assess suppliers as good quality raw material are important in the development stage, as this can have an adverse effect on the customers response. Supplier flexibility involves the response time when engineering changes are needed during the development stage. As a result, research and development activities are used to initiate and measure the ability of the supplier to provide support during the process. It is an important attribute as most products, after launching, demand continuous improvement to remain competitive. Procurement of materials and equipment is considered the first step in supply chain management of many companies. It is also broadly known that the performance of suppliers directly influences the company’s efficiency and competitiveness. Supplier performance evaluation is a crucial process to identify strengths and weaknesses of suppliers which can help the company to manage them. There are various supplier performance evaluation methods. In this study process quality of the existing system of producing steel shafts for an automotive industry was first evaluated and based on this study the machine was recommended for upgrading by engineering design. This was due to the process capability analysis of the machine, which did not meet the stipulated standard of 1.3 for the machine’s capability index. Although, the raw material supplied by the suppliers were within the measured confidence interval, the summary reports did not meet the required standards. In order to develop a performance evaluation system of the suppliers of raw material to the company, four main-criteria, may be developed, namely: quality, delivery, service, and flexibility. Statistical analytical studies performed during the process on five selected suppliers of raw material showed that the most important criteria of the process metrics was machine performance, followed by quality of suppliers in terms of the supply of raw material. Based on this study, the relationship between the quality of the supplier, the performance of the machine and the specification to the consumer may be assessed.

PENGEMBANGAN APLIKASI PERMOHONAN CUTI DENGAN METODE WATERFALL PADA PT AISIN INDONESIA AUTOMOTIVE BERBASIS WEB

In an increasingly advanced digital era, the use of information technology has become an important need for industries and companies, including automotive manufacturing companies such as PT Aisin Indonesia Automotive. Currently, the application for leave of employees in such companies is still done verbally or through manual submission, which can take a long time and lead to clerical errors. Therefore, the development of a web-based leave application application is expected to increase the efficiency of the employee leave application process, facilitate access and approval, and reduce the potential for administrative errors. By using the Waterfall method, it is expected that each stage of application development will be carried out in a structured and systematic manner, so that it can provide real benefits for PT Aisin Indonesia Automotive in managing employee leave and applying modern information technology.

Determination of Financial Performance of Automotive Manufacturing Companies Trade on BIST 100 via Entropy Based TOPSIS Method

In this article, the financial performances of the companies are analyzed using the TOPSIS method, using the financial statements of 9 main metal industry companies traded in Borsa Istanbul (BIST) for the period 2017-2021. The Entropy method, which was developed to avoid subjectivity, was used in determining the weights of financial ratios used as evaluation criteria. First, the financial statement of the enterprisesare examined. Financial ratios are calculated. It is converted into a single score showing company performance with the TOPSIS method. The ranking of the enterprises was made according to this performance score. According to the results of the research, the financial performance rankings are KARSN, FMZIP, BFREN, DİTAŞ, OTKAR, TOASO, EGEEN and ASUZU.

The influence of new leadership styles on employee performance in an automotive industry of Indonesia

Organizations began adapting to remote working patterns in the early pandemic, while human resource management faces new challenges in adapting to these changes. Leadership is the key to maintaining and improving employee job performance. Therefore, this study aims to find effective new leadership styles for adapting to the new work era. The paper analyzed employee perceptions of the leadership style (transformational, servant, and empowering) and measured their effects on employee job performance in current conditions. The survey was conducted online among 387 employees who had worked for at least five years and at least two years had worked virtually in an automotive manufacturing company in Indonesia that had implemented a virtual work pattern for most of its employees. Then, the data were processed using SEM Amos 25.0. Subsequently, the results showed that employee job performance has two critical dimensions, courtesy and sportsmanship, and is positively and directly influenced by the new leadership style. This study found an effective new leadership style for virtual leadership in the automotive industry with nine dimensions: openness, orientation to problem-solving, freedom at work, inspirational motivation, intellectual stimulation, individualized consideration, coaching, participatory decision-making, and showing concern. The contribution of this study for organizational managers is as a soft reference for functional leadership competencies during the new work period and a new reference for leadership science in human resources management.

Determinants Of Financial Performance To Stock Return

This study aims to examine the effect of return on assets (X1), return on equity (X2), and earnings per share (X3) on stock returns (Y) in automotive sub-sector manufacturing companies listed on the Indonesia Stock Exchange for the 2016-2021 period.The population used in this study is a manufacturing company in the automotive sub-sector. This study uses saturated sampling (Census) with a total sample of 7 companies.The data analysis technique in this study uses descriptive analysis, classical assumption analysis, multiple linear regression analysis, with hypothesis testing using -t test and F test.The results of the study show that: (1) partially the return on asset (X1) variable has a positive and significant effect on stock returns. (2) partially the return on equity variable (X2) has a negative and significant effect on stock returns. (3) partially the earning per share (X3) variable has no positive and insignificant effect on stock returns. (4) Simultaneously, the return on assets (X1), return on equity (X2) and earnings per share (X3) variables have a positive and significant effect on stock returns.