Product details

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Published by: Harvard Business Publishing
Originally published in: 1994
Version: 21 May 2001

Abstract

ITT Automotive is in the process of developing a new generation anti- lock brake system (ABS), designated the MK-20. The case focuses on the level of automation to be used in the production of this new system, and whether all plants should use the same process technology. Due to intensifying cost pressure and rapidly growing demand for lower-cost ABS, the development team and senior management (based in Frankfurt, Germany) strongly favor using a single, highly automated production process in the four plants scheduled to produce the MK-20 (located in Germany, Belgium, and the United States). Managers at the company's two plants in the United States favor using less automation technology in order to allow greater flexibility for improving process technology over time.
Industries:
Size:
USD2 billion revenues, 10,000 employees
Other setting(s):
1994

About

Abstract

ITT Automotive is in the process of developing a new generation anti- lock brake system (ABS), designated the MK-20. The case focuses on the level of automation to be used in the production of this new system, and whether all plants should use the same process technology. Due to intensifying cost pressure and rapidly growing demand for lower-cost ABS, the development team and senior management (based in Frankfurt, Germany) strongly favor using a single, highly automated production process in the four plants scheduled to produce the MK-20 (located in Germany, Belgium, and the United States). Managers at the company's two plants in the United States favor using less automation technology in order to allow greater flexibility for improving process technology over time.

Settings

Industries:
Size:
USD2 billion revenues, 10,000 employees
Other setting(s):
1994

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