Subject category:
Production and Operations Management
Published by:
INSEAD
Version: November 2003
Length: 16 pages
Data source: Field research
Abstract
The case describes the evolution of the Hewlett-Packard Herrenberg plant (Germany) from a rather classical assemble to forecast plant in the mid-1990s to a state of the art configure-to-order plant and describes the different steps in this transformation (product redesign, worker flexibility, and the like). It provides for a discussion on sharp competition in this sector and the corresponding need for industrial excellence (on cost, quality, speed and flexibility). There is a strong tendency to outsource or delocalise production to low labour cost countries. Without truly excellent service to a very demanding customer base there is no hope to keep production in Germany. The case aims to explain what industrial excellence really means and how it constitutes a fundamental prerequisite for competitiveness in this sector. Without true excellence in operations this factory would have been outsourced or delocalised to low labour cost countries a long time ago.
Location:
Industry:
Size:
Multinational
Other setting(s):
Evolution from 1995 to the present
About
Abstract
The case describes the evolution of the Hewlett-Packard Herrenberg plant (Germany) from a rather classical assemble to forecast plant in the mid-1990s to a state of the art configure-to-order plant and describes the different steps in this transformation (product redesign, worker flexibility, and the like). It provides for a discussion on sharp competition in this sector and the corresponding need for industrial excellence (on cost, quality, speed and flexibility). There is a strong tendency to outsource or delocalise production to low labour cost countries. Without truly excellent service to a very demanding customer base there is no hope to keep production in Germany. The case aims to explain what industrial excellence really means and how it constitutes a fundamental prerequisite for competitiveness in this sector. Without true excellence in operations this factory would have been outsourced or delocalised to low labour cost countries a long time ago.
Settings
Location:
Industry:
Size:
Multinational
Other setting(s):
Evolution from 1995 to the present