Operations Management Case Study: Pinninfarina

1. Pininfarina Case Study
Presented by
Reshmi Ravindran 212027
(Group Project)

2. As Renato Bertrandi, what do you see as the most significant
challenges facing Pininfarina over the next five years?
Quality
Bertrandi knew that Mitsubishi consider its own quality standards to be
very high and that it focus differ from Pininfarina’s existing customers.
Some in the company believed the Mitsubishi might demand the defect
level to be ¼th of Pininfarina.
Experience shows that different customers considered different things in
deciding what was the defect.
Some customers specified the quality as harness of engine compartment,
while other manufacturer only functionality was considered.
Capital Investment
New production facilities would have to be acquired and equipped for
Mitsubishi production.
Additional expenses related to the paint shop which would have to run for
additional shift.
The Pajero would offer a two tone painting option, and this also posed
some problem for the paint shop.
Space is required to dry and store vehicles in between painting stages.

3. Part & Logistics
Major mechanical parts like engines would be supplied by the
production in Japan either from Mitsubushi itself or from one of its
suppliers.
Other parts are sourced from Europe.
Mitsubushi agreed to own the inventory until it arrived at
Pininfarina.
Pininfarina has some experience in long distance supply chain.
Pininfarina calculated that 13 days shipping would be required
Work Force
600 additional Direct Workers
200-240 Indirect Workers
Full Utilization of present Resources Possible
Ramped Down existing Contracts business

4. Q3. Why do you think Mitsubishi quality standards
focus would differ substantially from those
Pininfarina’s existing customers?
Bertrandi knew that Mitsubishi considered its own quality
standards to be very high and that its focus would differ
substantially from those of Pininfarina's existing customers.
Some in the company believed Mitsubishi might demand
defect levels of one-fourth the level of Pininfarina's current
customers.
Major mechanical parts, including engines, would be
supplied by production in Japan either from Mitsubishi itself
or one of its suppliers.
Other parts would be sourced from Europe, predominantly
from suppliers who Mitsubishi qualified.

5. 4. Should Bertrandi accept the Mitsibushi
business? How should Pininfarina position itself
for the future?
Yes
Learning Opportunity.
Chance to Improve Operation System and compatible with global competition.
Promises utilization of extra facilities available due to retirement of old models.
Chance to be a global leader in Niche manufacturer.
Easy adaptable Japanese model with Pininfarina’s Operation.
Future Strategies
Should adopt Japaenese Operation system as Japanese manufacturers are the
biggest threat in European automobile market.
Identify itself as Global Niche Manufacturer by getting orders from almost all
Volume manufacturers.
Same time should Joint venture for designing with Big players of Auto market.