International Journal of Mechanical and Production

Engineering Research and Development (IJMPERD)

ISSN (P): 2249-6890; ISSN (E): 2249-8001
Vol. 8, Issue 2, Apr 2018, 715-730
© TJPRC Pvt. Ltd.

THE BUSINESS PHILOSOPHIES FOR EXTENDED ENTERPRISE

IN MANUFACTURING AUTOMOBILE SECTORS

D. SRINIVAS KUMAR & A. LAKSHUMU NAIDU

Associate Professor, GMR Institute of Technology, Rajam, India
ABSTRACT

The present assembling undertakings confront gigantic focused weights. Worldwide rivalry, together with
advertising requests for modified items conveyed in the nick of time put colossal weights on producers. The developing
worldwide economy is quickly supplanting neighborhood markets. A development of open markets, diminishess in
exchange hindrances and enhancements in transportation and correspondences joins has prompted a circumstance
where nearby rivalry and markets work with regards to worldwide principles. This open framework enables makers to
react to these difficulties by working all the more intimately with their providers and clients and by building expanded
endeavors over the entire esteem chain. Such broadened undertakings show incredible difficulties as far as overhauling
business procedures to makean upper hand from the linkages they incorporate.

Original Article
This paper depicts the assembling theories at present in vogue. Any assembling or related business should utilize
them, but customized to its own conditions, in one shape or the other, to guarantee its success.

KEYWORDS: Extended Enterprise, Manufacturing Sectors & Production Chain

Received: Feb 06, 2018; Accepted: Feb 28, 2018; Published: Mar 13, 2018; Paper Id.: IJMPERDAPR2018084

INTRODUCTION

Since World War II the assembling procedure of the organizations of the mechanical countries has been
driven by the rivalry orabsence of it - and the monetary advancement of the contending countries. This paper
manages the advancement of assembling considering and its present objectives inside the setting of the cutting edge
producing condition. The rivalry has been determinedly expanding amid the past 50 years (see Figure 1). In the
1960s the modern countries were in a development stage and it was a merchants' commercial center. The makers
could offer whatever they created and subsequently they extended their tasks and expanded the compass and the
scope of their items. As generally less created countries, say Europe in the 1950s and Japan in the 1960s, entered
the World commercial center they had brought down work expenses and subsequently could deliver their items all
the more inexpensively. Amid this stage (through to 1970s) the aggressive edge was directed by taken a toll.

In the 1980s, as the business sectors got soaked with items rivalry moved first to promoting and afterward
on to quality and reliability2 - notwithstanding cost. It is amid this stage the Japanese organizations demolished the
Western purchaser gadgets advertise, on the grounds that their items were unrivaled in quality and dependability. In
the previous decade, more nations, especially in the Far East (supposed tiger economies), have entered the world
market. This has brought about the change of the focused measure of execution to the time an organization takes to
create, make and convey its items notwithstanding expense and quality.

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716 D. Srinivas Kumar & A. Lakshumu Naidu

Figure 1: Paradigm Shifts in the Manufacturing Strategy

Thus today, in the late 1990s, it is the purchasers' market. To increase upper hand, the assembling mantra has
changed to deliver modified items at the most minimal conceivable cost, of most elevated conceivable quality and do as
such at all conceivable time. Organizations have reacted to this mantra by embracing more up to date techniques to
fabricate and showcase their items. This has brought forth such methodologies as KANBAN based materials supply and
JIT based generation booking. They have perceived the advantages of focusing on their center organizations (Focused
Factory?) and growing longer enduring associations with authority firms for the plan, advancement, and supply of parts
and sub-congregations (Extended Enterprises, Distributed Manufacturing?). This has been massively encouraged by the
accessibility of the most recent advancements - especially in hardware, media communications, and materials. This has
brought forth such new assembling ideas as Supply Chain Management, Customer-Driven Manufacturing, Lean
Production, World Class Manufacturing and Agile Manufacturing. What these ideas extremely mean, how they fit into the
advanced plan of assembling and how they are identified with each other is the topic of this paper.

EXTENDED ENTERPRISE

The arrangement of nearer co-appointment in the plan, improvement, costing and the coordination of the
particular assembling timetables of co-working free assembling undertakings and related provider.

The ideas of expanded undertaking emerge halfway from the endeavors of producers, arranged in geologically
scattered areas, to manufacture formal associations to increase upper hand. The core of this rationale is to grasp outside
assets and administrations without owning them. It is an idea produced by the present pattern of globalization together
with cutting edge utilization of current data and media transmission innovation. This type of joint effort is spoken to by the
arrangement of commonly advantageous and formal (electronic) connects as far as co-appointment in the outline,
advancement and costing between the co-working and free assembling ventures. Another element of the broadened venture
is the development of data and materials among the teaming up undertakings in a synchronized and co-ordinated way.
Broad utilization of IT inside the particular undertakings and electronic correspondences among the endeavors is an extra
component of the broadened ventures. These standards can be connected to any gathering of organizations occupied with
any esteem, including business, be it the preparing of data or materials or both. The principal points of the teaming up
organizations remain:

• A reduction in thelife cycle of material handling, data, preparing, item improvement or data framework
advancement.

• Increase in necessity of speed to market and time based rivalry.

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The Business Philosophies for Extended Enterprise in Manufacturing Automobile Sectors 717

• Adoption of more extensive life cycle point of view.

• The making of more powerful associations and frameworks.

• The advancement of the Organizational Vision without bounds.

The broadened venture reaches out past conventional authoritative limits. It incorporates the connections that a
venture has with its clients, providers, and business accomplices. The broadened endeavor is in charge of the entire item
life cycle, from material acquirement and supplies administration, to creation and assembling, further to item conveyance
and client administration, lastly to the reusing and transfer of end-of-life items.

This structure of broadening endeavor depicts how an assembling framework expands its limit. The broadened
venture arranges the exercises of various substances to create and advertise its items and administrations. The co-
appointment of the connections between these elements and the correspondence between them are basic issues for the
broadened undertaking. The accompanying are the real attributes of the expanded venture emerging from this structure:

• The fabricating endeavor centers around center business exercises and outsources noncore business exercises to
outside providers and other specialist co-ops. Outsourcing Page 4 empowers both the producers and providers'
focused capacity and upgrades their shared reliance keeping in mind the end goal to make common progress.

• The maker of the assembling focused broadened venture creates steadfast and long -haul associations with key
clients and providers and regards them as his most vital business accomplices.

• The expanded endeavor has strategies and advancements to help business exercises that cross limits with a
specific end goal to help provider client joining through the exchange of business and specialized data.

The broadened undertaking idea is from numerous points of view a consistent take after on from a significant
number of the thoughts which have been created by assembling frameworks specialists and professionals in the course of
recent years or something like that. Ideas, for example, MRP, JIT, WCM (World Class Manufacturing), CE (Concurrent
Engineering), Agile Production and Lean Production are altogether suited inside the expanded endeavor thought. Indeed,
one could contend that it is the accessibility of the present telecomputing condition together with the worldwide market
which encourages the rise of the broadened venture from the before thoughts on assembling frameworks joining. JIT (Just
in Time) was most likely the principal way to deal with emphatically advocate close provider/client inclusion with the
assembling organization. In addition to other things,

JIT underlined client included in the last planning of creating frameworks and close co-acted with providers to
guarantee astounding parts and opportune conveyance. Hence, as of now in the 1980s JIT started to canter the perspective
of assembling frameworks authorities on issues outside the four dividers (see Figure 2) of the assembling plant, viz. Client
and provider contribution. Figure 2 beneath presents a halfway model of the assembling business inside the "esteem chain"
of the provider producer client. Up to now, the accentuation has been on accomplishing combination inside the "four
dividers of the assembling plant". Be that as it may, the accessibility of EDI and complex PC systems implies that we now
look for coordination utilizing electronic means over the entire esteem chain. It is right around an essential to framing a
broadened undertaking that intra-venture coordination between different capacities (say, outline, booking, advertising,
stores ,and transportation) inside the four-dividers of a plant be accomplished. This won't just enable different elements of
a venture to discuss specifically with their partners outside the four-dividers yet more vitally, the very procedure

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718 D. Srinivas Kumar & A. Lakshumu Naidu

coordination inside the undertaking will offer ascent to the way of life, ethos and the experience of working and trading
data and information over the offices. Once the staff is alright with this workplace the usage of the ideas of an expanded
undertaking is the following characteristic advance in combination.

It is additionally valuable for us to portray the run of the mill display (Figure 2) of a broadened undertaking inside
the extent of customary assembling. In light of this incomplete model a few wordings have developed which should be
talked about quickly inside the setting of the expanded endeavor:

Figure 2: Partial Model of Extended Enterprise within Traditional Manufacturing

Customer Driven Design Advancement of attractive items by currently thinking about the client's prerequisites.
There are two conceivable methods of client -driven outline: Design started by the (client goes to the producer and requests
a specific item or show), or new plan required by the statistical surveying.

• Customer Order Fulfillment. Observing of the assembling plans and the submitted conveyance dates. This
procedure is intended to guarantee that the assembling timetables and activities upstream, and preceding
assembling are kept educated of the responsibilities made to the client. This will likewise consider the co-
ordinations of conveyance.

• Supply Chain Management. Administration of the co-ordinations of the supply of materials. Since expanding
undertakings for the most part work with lean creation and JIT standards, the store network administration
likewise takes after nearly the generation timetables to guarantee that the materials touch base in time without
postponing the creation plans. Comparable principals additionally apply between the maker and the client.

• Co-Design and Product Models. Outlining of items by currently teaming up with the materials and part providers
to utilize the most recent accessible materials and items.

The broadened endeavor idea is additionally tuned in to the idea of center ability and the Focused Factory (See
Browne et al 1994). The Focused Factory depends on the possibility that a plant, which focuses on a thin scope of items for
a specific market fragment, is probably going to beat a more customary plant with a more extensive scope of exercises,
items, and markets. By concentrating on specific items, markets, aptitudes, exercises ,and advances, the association's goals
will probably be accomplished without the bargains which are regularly required to be made in less engaged situations.
Center capabilities are those skills that are vital to the accomplishment of the company's business targets and which convey
minimal effort and/or item separation.

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The Business Philosophies for Extended Enterprise in Manufacturing Automobile Sectors 719

In a universe of expanding specialization, the advancement of center and center, fitness is important to accomplish
the world class execution. However, world class item conveyance and administered as often as possible require an
amalgam of numerous world class abilities. The stretched out big business enables a firm to exploit outside capabilities and
assets without owning them. The expanded undertaking in this way denotes a move in our conventional reasoning about
the structure and responsibility for including exercises in the esteem stream. We are acquainted with contemplating a
solitary undertaking with numerous utilitarian offices, performing capacities, for example, deals, promoting, outline,
designing, fabricating, gathering, conveyance and so on. However, inside the present worldwide commercial center,
elements from various endeavors, or to be sure elements which are in themselves ostensibly autonomous ventures may
meet up a create a specific item or administration. This "systems administration" of endeavors we term the broadened
undertaking and it is encouraged by the present data and broadcast communications advances. In fact, there is no physical
breaking point to the quantity of undertakings the can participate in the coordinated effort, as depicted in Figure 3 beneath.
In this illustration we will utilize the terms data handling and materials preparing conversely. To the extent the standard of
broadening endeavor is concerned, every undertaking is expert in preparing and henceforth enhancing data or materials
and passes on the subsequent item to the venture downstream the esteem chain. In the Figure 3, undertaking 1 is the first
provider. Undertaking 2 buys the materials, increases the value of it by handling it and turns into a provider of big business
3. This procedure goes ahead until the end of the chain, ended with a client.

Figure 3: The Scope of Extended Enterprise

Figure 3 delineates an extremely improved model of the expanded endeavor. The genuine the broadened ventures
will appear as a system of clients and providers, rather than a direct esteem chain. By its extremely definition, there is no
specialized point of confinement on the size or the multifaceted nature of the expanded endeavor arrange. The inspiration
and self-interests of the working together ventures and their capacity to deal with the mind boggling co-ordinations
included just limit it. Correspondence innovation is as of now accessible to create complex interenterprise systems.
Programming devices for exceptionally complex associations can and will be created. Their need and desperation will
manage the pace at which these devices go into the commercial center.

It is likewise worth recalling that if an endeavor has made certain duties regarding different undertakings to work
in the supposed broadened venture mode, its responsibilities regarding cooperation are exclusively constrained to the
authoritative terms consented to ahead of time. It doesn't confine the undertaking to take part in different tasks,
incorporating making comparable concurrences with different endeavors that are not in the first chain. For instance (see
Figure 4), take the instance of Bosch and specifically, its creation of Fuel Injection frameworks for vehicles. This Bosch
plant can make synchronous concurrences with Mercedes Benz and Audi to supply the Fuel Injection frameworks for the

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720 D. Srinivas Kumar & A. Lakshumu Naidu

individual auto makers and nearly interface its data framework to that of Mercedes Benz and Audi. Inside these
understandings, it is at the same time a piece of two, broadened endeavors, providing its items in the concurred plan, at the
concurred plans for the concurred amounts. What's more, the agreements of these two particular expanded ventures can
stipulate the advancement of a new age of Fuel Injection frameworks and all the more imperatively, the secrecy provisions
with the goal that any specialized and business data of Mercedes Benz do not go to Audi and the other way around. Under
such assertions and complex working conditions, Bosch might just need to re-arrange its 'intra venture' tasks to meet its
authoritative duties by 'hermetically' fixing a significant number of its capacities by means of programming channels and
switches.

Supply - 2

Supply - 1
Mercedes Benz Supply - 6

Bosch

Supply - 3
Supply - 4 Audi Supply - 7

Supply - 5

Figure 4: Generalization of Extended Enterprise

This thought of outsourcing isn't new. For instance master autonomous organizations quite often produced metal
rollers (or headlamps, gaskets, tires for the vehicle business, to refer to different cases). These organizations have reacted
to the market needs by presenting new items by currently teaming up with their clients (makers of different items) or freely
through R&D. Lately this pattern has penetrated into substantially more extensive segments of industry and depends on a
formal balance. Inside the expanded endeavor condition the cooperation among the organizations isn't limited to the outline
and conveyance of the items, however they separate conveyance (and thus fabricating) plans and similarly imperatively,
the expenses are all the more firmly coordinated and synchronized.

MANUFACTURING CHAINS

To address the present focused difficulties, it is basic for the assembling organizations to enroll the dynamic help
of their providers and look for close coordinated effort with their clients. A great part of the push of the advancement in
data innovation tries to acknowledge the upper hand by abusing linkages inside the esteem chain [3]. We are thinking here
especially of the rise of worldwide PC systems (INTERNET for instance) and the steady incorporation of broadcast
communications and data innovation. Alluding to this subject, Keen (1991) utilizes the expressions "Reach" and "Range"
(see Figure 5). "Reach" is the degree to which a client can interface with different clients crosswise over correspondences

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The Business Philosophies for Extended Enterprise in Manufacturing Automobile Sectors 721

systems. "Range" then again, characterizes the kind of connection that is conceivable. At the most reduced level the range
might be constrained to basic informing utilizing content information. At a more elevated amount it might encourage the
trading of complex CAD information between machines utilizing diverse outline programming introduced on various
working frameworks in various parts of the world.

Figure 5: IT - Reach and Range

A definitive extension of innovation along the "Span" and "Range" tomahawks will atleast encourage the
combination of business forms and related information over the globe. Electronic mail access to all individuals from a
solitary firm speaks to a low level of reach and range. Electronic mails accessible to clients on an INTERNET style arrange
offers gigantic reach yet next to no range. The utilization of EDI innovation by assembling organizations mirrors their
endeavors to grow their range again into the inventory network and forward to the client chain.

The improvement of frameworks which extend the 'span' and 'range' of a producer's exercise in reverse and
advances in the production network has colossal outcomes for singular business forms, and the way singular errands are
done.

Value Chain Analysis

The examination and streamlining of all esteem (and cost) including exercises over the entire chain inside the
broadened venture. Watchman (1988) presented the idea of the esteem affix as a gadget to analyze and atleast improve
upper hand. Watchman recommended that the esteem chain examination causes a director to isolate the hidden exercises a
firm performs in planning, delivering, promoting and dispersing its item. In Porter's own particular words "the esteem
chain isn't an accumulation of autonomous exercises, however an arrangement of related exercises" (our accentuation),
which are the building squares of upper hand.

Lean Supply Chains

To limit the slack in all esteem (and cost) including exercises over the entire chain inside the assembling plant
and, in fact, directly through the chain of co-working endeavors. A fascinating part of the Lean Production approach is the
part of providers in creating and managing upper hand. This store network issue is an essential component of the
broadened endeavor idea. The Japanese production network depends on few key providers, once in a while called first
level providers who thus have a group of supposed second-level providers. These second-level providers, thus connect with
subcontractors in what turns into a supply pyramid (Figure 6). There are cozy connections between each connection in the
chain and its lower level providers - outline engineers are locked in ahead of schedule in the plan procedure of the client
organization. In the car business for instance, the principal level providers have full duty regarding segment frameworks

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722 D. Srinivas Kumar & A. Lakshumu Naidu

and sub assemblies that perform to a concurred execution particular in the completed auto. The provider's advancement
group, with help from inhabitant configuration engineers from the automobile producer and the second level providers,
conducts nitty gritty improvement and building (see Womack et al).

Unmistakably the supply chains and "provider pyramids" require generous sharing of exclusive data on costing,
volumes and creation procedures. The connections between the automaker and the different levels of providers are
overseen through provincial provider affiliations. Through these affiliations with new procedures including SPC (Statistical
Process Control), CAD and so forth are spread.

Figure 6: Manufacturing Supply Pyramid

The extent of these supply chains can be gauged from the following figures. According to Womack et al Toyota
Motor Company accounts for 27% of the total cost of the materials, tools and finished parts required to make a car. The
equivalent figure for General Motors in the US is 70%.

Supply Chain Management

For producers and providers to choose to frame cozy connections is just a halfway arranged. Genuine advantages
must be achieved by earnest duty from every one of the accomplices. Each ought to will to put resources into the vital
correspondences innovation, staff preparing or more all, share data and information among the accomplices. Sharing of
data is vital to the co-ordinations of storage networks. A compelling trade of data between, say a materials provider and
producer could bring about the decrease of expenses related to the estimating, obtaining, stock (littler levels of stocks),
stock administration (regular bar coding positions?), transportation, generation arranging and request handling costs (less
request preparing mistakes) in for every one of the organizations. Due to the enhanced execution of every one of the
accomplices in the production network, any expansion in the volume of business will be an additional advantage.

The management of the physical flow of materials and information among the nodes of a supply chain comes
respectively under the study of Logistics and Strategic Supply Chain Management (SSCM).

Supply Chain Logistics

The administration of the physical stream of materials and data among the hubs of a production network come
individually under the investigation of Logistics and Strategic Supply Chain Management (SSCM).

The point of the co-ordinations work is to guarantee that the correct item is conveyed at the correct goal at the
ideal time, in the correct amount, at any rate conceivable cost. Co-ordinations will help settle on choices on such issues as:
stockroom area, choice, and co-appointment with the Transport Company, asset administration, booking, despatching,
request determining, arrange handling, material necessities arranging, and so on.

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The Business Philosophies for Extended Enterprise in Manufacturing Automobile Sectors 723

It ought to likewise be borne as a top priority that the assembling condition is exceptionally unique, where
conditions can change rapidly and brothers in the timetables are visiting. It is the capacity of co-ordinations to screen the
flow of the framework and adjust to evolving conditions.

Strategic Supply Chain Management

Boykin (1997) characterizes SSCM as "an organized business way to deal with adjust, synchronize, and
cooperative energies all interiors and outer assets and resources". This can be interpreted as coordination of assets and
improvement of exercises crosswise over inventory network capacities, to acknowledge upper hand. These exercises
incorporate co-appointment of choices, administration of activities among individuals and frameworks and acclimating to
the perturbs inside the chain, with the goal that the trading of data can happen in a pre-characterized and auspicious design.
A definitive achievement of the production network, and consequently the execution of the co-working ventures, will be
estimated by the viability and spryness by which the framework reacts to these exercises.

At CAM-I, there is a continuous SSCM Program with an expect to inspect and create driving, aggressive learning
of Supply-Chain procedures and the related SSCM forms that empower incorporation and arrangement. In 1995 CAM-I
created (Boykin 1997) nine fundamental keys to vital relations:

• There is a mutual particular spotlight on fulfilling their regular end client.

• There is an arrangement of vision.

• There is a central level of co-task and execution of duty (trust).

• There is powerful and open correspondence.

• Decisions are made by augmenting the utilization of the abilities and information in the storage network.

• All partners are resolved to produce long haul shared advantages.

• There is a typical perspective of how achievement is estimated.

• All individuals are focused on constant change and achievement progressions.

• Whatever aggressive weights exist in the earth are permitted to exist in the expanded venture.

CAM-I assert that these SSCM adages have been perceived by modern and scholarly accomplices and are being
used by a few driving assembling associations.

CUSTOMER DRIVEN MANUFACTURING

To effectively consider the market slants by and large and individual client necessities specifically amid the
outline, assembling and conveyance of the items. Clients are ending up progressively requesting, regarding value, quality,
time to convey and the accessibility of modified highlights on items. We have moved from a period where cost and cost
were the primary issues to one in which quality and time are critical. Actually for some makers, high caliber has been
never again the premise of upper hand. Excellent items are an important precondition for passage into the market, and time
to showcase and the accessibility of customisable highlights is the premise of upper hand. Examiners and spectators of the
assembling scene talk as far as time based rivalry and client driven assembling. [See for instance Stendel and Desruelle
1992].

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724 D. Srinivas Kumar & A. Lakshumu Naidu

Numerous creators allude to what are named OKP (One of a Kind Production) frameworks (See Rolstadas 1991).
As per Wortmann (1992), the customary exceptional maker was the maker of capital products. Be that as it may, the
makers of shopper merchandise today need to deliver their items in the more prominent assortment, and likewise "tailor the
item to the client’s needs.... These propensities prompt creation in little groups, which are driven by client orders. At last
this prompts exceptional generation". [See Wortmann (1992)]

Stendel and Desruelle (1992) have recognized the qualities of a client driven assembling the framework as takes
after:

• It has an all around created and reported business and assembling procedure. This technique characterizes the item
set, the market, and the association structure and also the innovation, information, and range of abilities to help
the market.

• It has an administration group which takes a stab at consistent change.

• It has created and introduced a gathering of execution measures which guarantee that organization conduct is as
per client needs and the business technique.

• It has an inner reward framework which coordinates the picked execution measures.

• It hones brilliant inside interchanges and furthermore has great correspondences with providers and clients.

• It tries to fill in however much as could reasonably be expected with item and client based groups with
unmistakably recognized obligations and parts.

• It utilizes stream based assembling frameworks which are client arrange as opposed to limit driving.

• It tries to "catch learning" and experience for reuse in resulting requests and times.

• It esteems all around prepared and propelled individuals and has very much created strategies and methodology
for retraining, re-Skilling and spurring individuals.

• It has introduced producing forms which are innately adaptable and responsive.

• It has built up an authoritative structure which can reconfigure and redesign it to meet evolving requests.

LEAN PRODUCTION

The expression "Lean Production" was instituted by the examination group occupied with the IMVP
(International Motor Vehicle Program) explore programmed (See Womack et al 1990). Lean creation was characterized by
standing out it from two existing generation framework approaches, in particular specialty generation and large scale
manufacturing. In creating generation; talented laborers utilize generally straightforward yet exceptionally adaptable
devices to deliver one of kind items to meet exact client necessities. Art items are moderately costly. In large scale
manufacturing very gifted experts outline items to be made in high volumes by moderately incompetent administrators
utilizing costly and unyielding machines. Institutionalized items are turned out in high volumes to be sold at sensibly low
costs to clients.

The mass maker normally makes substantial speculations, which he looks to recoup by keeping standard plans
underway for whatever length of time that conceivable. The client bargains assortment to accomplish minimal effort.

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Key components of the Lean Manufacturing Theory Include

• Elimination of waste,

• Just-In-Time procedures for requesting and conveyance of materials and items,

• Kanban based material supply framework.

• Mechanisms for Continuous Improvement,

• Standardized work,

• Cellular Manufacturing.

Lean production seeks to combine the advantages of the two methods of production, and seeks to avoid the high
cost of craft products and the rigidity and standardization of mass production. Womack et al claim that the origins of Lean
Production go back to the early 1950s, when Toyota concluded that mass production was inappropriate to Japan and set
about developing an alternative approach.

WORLD CLASS MANUFACTURING

To manufacture the products better in quality, lower in cost and more quickly than one’s competitors. In many
ways the ideas of the World Class Manufacturing (See for example Schonberger 1987) were developed from the
experience of JIT implementations in factories in the United States of America. Issues of continuous improvement, training
and cross training of personnel, the integration of product design and process design to facilitate efficient manufacturing
were also emphasized. Hayes, Wheelwright and Clark, for example identified the key characteristics of a world class
manufacturing plant as follows:

• Becoming the best competitor. Being better than almost every other company in the industrial sector in at least
one aspect of manufacturing.

• Growing more rapidly and being more profitable than competitors. World-class companies are able to measure
their superior performance by observing how their products are accepted in the marketplace.

• Hiring and retaining the best people. Having operators and managers who are so skilled and effective that other
companies are continually seeking to attract them away from the organization.

In recent years, these ideas have been further developed by the researchers. For example, the Centre for Integrated
Manufacturing Studies at Rochester Institute of Technology (Boykin 1997) has extended this logic to define World Class
Customers, Suppliers and Supply Chains. They go on to define the salient features of each of them as follows:

World Class Customer: A World Class Customer is a Solution Developed

• A World Class Customer has a superior product delivery system.

• A World Class Customer’s products are conscientiously built and have zero defects.

• A World Class Customer is a market leader in product delivery cycle time.

• A World Class Customer has effective relationships with its entire supply chain.

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726 D. Srinivas Kumar & A. Lakshumu Naidu

• A World Class Customer is always learning and adapting.

• A World Class Customer profits from its chain-wide cooperation and strategic vision.

World Class Supplier: A World Class Supplier Produces Solutions for Its Customers

• A World Class Supplier assists in product development.

• A World Class Supplier delivers error free products.

• A World Class Supplier has a production system which delivers products on time, and knowledge which assists
customers in reducing time-to-market.

• A World Class Supplier creates and sustains relationships with all members of the Supply Chain that achieve
superior results.

• A World Class Supplier is an organization that learns and adapts rapidly to respond to a world of rapid change.

• A World Class Supplier attains a return on investment which contributes to the success of all members of the
supply chain.

World Class Supply Chain: a World Class Supply Chain Develops Relationships
Which Deliver Results That Produce Solutions for Its Customers

• A World Class Supply Chain develops products and services that meet or exceed customer requirements.

• A World Class Supply Chain defines, archieves, and improves quality and safety throughout the organization.

• A World Class Supply Chain's production system delivers products on time.

• A World Class Supply Chain focuses on the ability to achieve superior results by working together to satisfy
customers.

• A World Class Supply Chain achieves superior results through its collaborative work.

• A World Class Supply Chain acts as a single organism that learns and adapts rapidly in response to a world of
rapid change.

• A World Class Supply Chain applies new ideas that positively affect cost, system performance, product,
processes, and interfaces.

• A World Class Supply Chain earns a return on investment which contributes to the success of all members of the
supply chain.

• A World Class Supply Chain achieves long-term business success.

AGILE MANUFACTURING OR VIRTUAL ENTERPRISE?.

Agile Manufacturing can be characterized as the connecting the activities of co-working endeavors amazingly
nearly to react to a great degree rapidly, and mutually, to the changing business sector needs.

The expression "Light-footed Manufacturing" rose up out of an investigation of US Manufacturing led by a group
of senior modern professionals and scholastic scientists (See Nagel and Dove 1991). Citing straight forwardly from this

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The Business Philosophies for Extended Enterprise in Manufacturing Automobile Sectors 727

report: "Dexterity requires incorporating adaptable innovations of creation with the ability base of an educated workforce
and with adaptable administration structures that animate co-agent activities between firms". The dexterous assembling
venture offers imaginative items for sale to the public rapidly, reacts rapidly to market and client requests for new items
and item includes, and has introduced a re-programmable, re-configurable, and persistently variable generation framework
which is equipped for working monetarily with little parcel sizes. The Agile Manufacturing idea alludes profoundly
fabricating capacity as well as to the total assembling business which incorporates promoting, plan, create, coordinations,
benefit, and so on.

As in the expanded endeavor, there is no specialized cutoff on the number (Figure 3) or the topology (Figure 4) of
ventures shaping a virtual undertaking. Also, in the event that one undertaking is at the same time is an individual from two
virtual endeavors, the privacy imperatives will in any case apply.

EXTENDED ENTERPRISE, OR VIRTUAL ENTERPRISE?

Expanded Enterprise or Virtual Enterprise? What is the distinction? To some degree, it is an issue of semantics,
and maybe the level of joining between the endeavors and the targets of the co-working accomplices. One could express
that, moderately, in a virtual venture the level of mix is nearer and particularly its extent of collaboration is more extensive.
The expanded venture can be considered as an extraordinary case (and a sub-set) of the virtual endeavor. Virtual endeavors
more often than not, work in specialty markets, or venture based and have a tendency to have, in respect of broadened
undertakings, a shorter life expectancy. They shape and change in light of market needs. Data Technology in virtual
endeavors goes about as an Integrator rather than a facilitator in expanded undertakings.

Another conceivable situation that could characterize a virtual venture could be the accompanying: Figure 7
depicts a disentangled model of a virtual endeavor, where the providers supply crude or esteem included materials and sub-
contracted workers supply sub-congregations, or for sure completely built items, to be utilized by the maker or last
constructing agent. Providers or subcontractors require not exclusively manage the materials. They could possibly be
planned or consultancy firms providing pro skill and administrations. From the producer the completed items go to the
distributor's stockroom, and after that on to the clients. Two conceivable situations emerge:

• Suppliers and makers’ contact each other4 and settle on all the strategic choices with respect to the items, quality,
amount, evaluating and conveyance plans. Having touched base at the arrangement, they connect with the
administrations of an operator to guarantee that materials and data move easily and in time along the store
network.

• The specialist gives citations and acknowledges orders for the items. At that point, for each request, he contacts
appropriate providers and makers to deliver completed items and arranges valuing with them; the operator could
be considered as working a virtual undertaking.

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728 D. Srinivas Kumar & A. Lakshumu Naidu

Figure 7: A typical Virtual Enterprise

CONCLUSIONS

In this paper, we have considered the rise of the stretched out big business as a reaction to the weights now
impinging on producers. The expanded undertaking speaks to another method for working together and requires that we
upgrade and engineer suitable business forms, to accommodate neighborhood clients while meeting worldwide gauges.

As the thought process drives in making authoritative, basic and operational changes is they want to lessen costs,
the thoughts actualized under different headings are the same. For instance, regardless of whether one is actualizing the
world class to fabricate rationality, or lean generation procedures, one should execute some type of in the nick of time
strategies to diminish materials costs.

We ought to recall that sharing of data among the accomplices of a storage network won't just decrease the
activity expenses of every one of the accomplices, yet the productivity of this 'trustees' based business exchange will offer
ascent to a feeling of 'consumer loyalty' along the esteem chain.

It is recommended (Boykin 1997) that in the 21st century the most basic component to business achievement will
be quality and arrangement of all store network accomplices inside the broadened venture.

REFERENCES

1. Boykin, R. 1997, Consortium for Advanced Manufacturing – International (CAMI), 3301 Airport Freeway, Suite 324, Bedford,
TX 76021, USA. URL: http://www.cam-i.com.

2. Browne, J., P. J. Sackett and J. C. Wortmann 1995, Future Manufacturing Systems - Towards the Extended Enterprise,
Computers in Industry, 25, 235-254.

3. Browne, J., P. J. Sackett and J .C. Wortmann 1994, Industry Requirements and Associated Research Issues in the Extended
Enterprise, Proceedings of the IMSE’94 Workshop on Integrated Manufacturing Systems Engineering, Grenoble, France,
December 12-14, Editor: F. Vernadat.

4. Graham, Robert C. 1997, Centre for Integrated Manufacturing Studies, Rochester Institute of Technology, Rochester, New
York, USA. URL: http://www.rit.edu.

5. Hayes, R .H., S. C. Wheelwright and K. B. Clark 1988, Dynamic Manufacturing - Creating the Learning Organisation, The
Free Press, New York.

6. Keen, P. G. W. 1991, Shaping the Future - Business Design through Information Technology, Harvard Business School Press.

Impact Factor (JCC): 6.8765 NAAS Rating: 3.11

The Business Philosophies for Extended Enterprise in Manufacturing Automobile Sectors 729

7. Kuttner, B. 1993, The Pitfalls of a ‘Virtual Corporation’ With No Permanent Workers, Syndicated Column, The Boston Globe,
July 30.

8. Nagel, R. and R. Dove 1991, 21st Century Manufacturing Enterprise Strategy, Iacocca Institute, Lehigh University, USA.

9. Porter, M. 1988, Competitive Advantage: Creating and Sustaining Superior Performance, Free Press, and New York.

10. Rolstadas, A. 1991, CIM and One of a Kind Production, Computer Applications in Production and Engineering, Editors: G.
Doumeingts, J. Browne and M. Tomljanovich, Elsevier Science Publishers, Holland.

11. Schonberger, R. J. 1987, World Class Manufacturing Casebook - Implementing JIT and TQC, the Free Press, New York.

12. Stendel, H. J. and P. Desruelle 1992, Manufacturing in the Nineties, Van Nostrand Reinhold, USA.

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APPENDIX - I
Manufacturing of Automobiles Share ratio in Market

Sl. No. Name of Company 2015-16 2016-17 Growth Rate (%) Market Share (%)
1 Maruti Suzuki 1305351 1443641 10.6 47.38
2 Hyundai 484324 509705 5.2 16.73
3 Mahindra & Mahindra 236307 236130 -0.1 7.75
4 Tata Motors 149420 172504 15.4 5.66
5 Honda 192060 157313 -18.1 5.16
6 Toyota 128494 143364 11.6 4.71
7 Renault 71732 135123 88.4 4.44
8 Ford 79561 91405 14.9 3.00
9 Nissan 39389 57300 45.5 1.88
10 Volkswagen 41096 50042 21.8 1.64
11 General Motors 32540 25823 -20.6 0.85
12 Skoda 15368 13712 -10.8 0.45
13 Fiat 8361 5665 -32.2 0.19
14 Force Motors 3341 2731 -18.3 0.09
15 Isuzu 391 1607 311.0 0.05
16 Hindustan Motors 1502 662 -55.9 0.02
17 Ashok Leyland 1 0 -100.0 0.00
Total 2789208 3046727 9.2 100.00

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730 D. Srinivas Kumar & A. Lakshumu Naidu

Impact Factor (JCC): 6.8765 NAAS Rating: 3.11