The business environment of automobile manufacturers has been increasing in complexity. The common call for sustainable development from a growing share of consumers and political authorities alike has become a crucial business driver for automotive companies and an essential prerequisite for corporate competitiveness. Therefore, it is only consequent that business mission statements on sustainability can be found in nearly every larger manufacturer’s public appearance. However, in order to walk the talk, characteristics of sustainability must be an inherent trait
of an organization. For production to adopt normative management decisions, the production strategies are to be aligned with the superior business mission. Hence, sustainability-oriented measures should be expected to exist in any larger automobile manufacturer’s strategic-tactical production planning.
This is where this paper sets in. In chapter 2, a framework for strategic-tactical production planning is derived from literature and serves as center of reference for the entire work. In this part, the importance of an integrated and sustainabilityoriented
production management is pointed out. Sustainable automobile production links the two major chapters of this work.
In chapter 3, the framework of strategic-tactical production planning is applied on the specific case of automobile production. This approach is made in two ways. On the one hand, available literature which directly addresses automobile production strategies and tools to foster sustainability is evaluated. On the other hand, relevant industrial publications such as sustainability reports are investigated to verify theoretical findings and visualize corporate approaches towards sustainable automobile production.
In conclusion, no definite recommendation for a sustainability-oriented concept of strategic-tactical production planning can be derived from the literature used. However, single and partly combined solutions according to the framework strategies are presented. Nevertheless, it can be concluded that automobile companies have been making huge efforts towards the enhancement of sustainable production and set themselves high goals in order to pursue more ambitious aims in this field. While corporate sustainability reports of automobile manufacturers show similar tendencies, individual centers of attention vary.
Table of Contents
1 Introduction
1.1 Initial situation and problem statement
1.2 Objective and methods
2 Strategic-tactical planning in sustainable production management
2.1 Objectives and tasks of production management
2.2 Production management in the context of sustainability-oriented production systems
2.3 Strategic-tactical production planning for a sustainability-oriented production
2.3.1 Strategy of site location
2.3.2 Strategy of technology
2.3.3 Strategy of vertical integration
2.3.4 Strategy of capacity
3 Strategic-tactical planning in sustainable automobile production
3.1 Initial situation of automobile manufacturers
3.2 Industrial application of integrated production planning strategies
3.2.1 Strategy of site location
3.2.2 Strategy of technology
3.2.3 Strategy of vertical integration
3.2.4 Strategy of capacity
4 Conclusion
4.1 Critical evaluation and future prospects
4.2 Summary
Objective and Research Focus
This work aims to evaluate how traditional strategic-tactical production planning strategies can be integrated into a sustainability-oriented production framework, with a specific focus on the automobile industry.
- Analysis of production management tasks within sustainable industrial systems.
- Evaluation of four production strategies (site selection, technology, vertical integration, capacity) regarding their sustainability contribution.
- Investigation of specific automobile manufacturer practices via corporate sustainability reports.
- Critical assessment of the potential for holistic sustainable production planning in the automotive sector.
Excerpt from the Book
2.3.1 Strategy of site location
One of the most essential decisions to be made is the selection of the location for the production facilities. The range of this decision is so significant because, due to high investments, it determines the surrounding conditions for the whole production process for a relatively long period of time. It constitutes the foundation for all production activities and is thus of strategic nature (Steven, 1994, p. 45). In general, two situations are imaginable: either production capacities are acquired by on-site expansion or by off-site expansion. In the latter case, existing facilities can be purchased from another company or a new site is built from scratch (Zäpfel, 2000, p. 146). The options feature higher degrees of freedom in the order they are mentioned, meaning that building a new site, the company can not only choose the location rather freely, but also develop an appropriate layout.
It has to be argued whether environmental advantages in terms of the reduction of greenhouse gas emissions and energy consumption can actually be achieved through a relocation of production sites (Herrmann, 2010, p. 333 ff.). Shifting production depends strongly upon the energy intensity of production processes in question. From the economic point of view, energy intensive processes such as aluminum die-casting should preferably be sited in areas of low energy costs. However, in order to fulfill the requirements of sustainable production, the respective energy mix is of much higher importance. Energy intensive processes should therefore be located in areas of favorable energy sources. Thus, aluminum processing, for instance, has constantly been increasing in volume in Iceland where geothermal energy sources are sufficiently available (Gudmundsson, 2003). Since the automobile industry consumes a growing amount of such metals, this creates a huge sustainable benefit in the automotive production chain.
Summary of Chapters
1 Introduction: This chapter outlines the industrial challenges regarding sustainability and defines the scope, objectives, and methodological approach of the paper.
2 Strategic-tactical planning in sustainable production management: A framework is developed to align traditional production planning tasks with sustainability requirements, introducing key strategies like site selection and technology for industrial production.
3 Strategic-tactical planning in sustainable automobile production: The theoretical framework is applied to the automobile industry, utilizing data from sustainability reports of major manufacturers to analyze practical implementation.
4 Conclusion: The findings are evaluated to assess the potential of the applied planning framework and to identify research gaps and future prospects in sustainable automotive production.
Keywords
Sustainability, Automobile Production, Production Planning, Strategic-tactical Planning, Site Selection, Technology Strategy, Vertical Integration, Capacity Strategy, Industrial Ecology, Sustainable Development, Resource Productivity, Green Supply Chain, Environmental Management, Automotive Industry, Holistic Production Systems
Frequently Asked Questions
What is the fundamental purpose of this paper?
The paper examines the extent to which traditional strategic-tactical production planning strategies can contribute to a company's sustainability performance in the production phase.
What are the central thematic areas addressed?
The study focuses on four core production strategies: site selection, technology, vertical integration, and capacity, specifically analyzed for their environmental impact.
What is the primary objective of this research?
The objective is to evaluate whether these established production strategies, despite their traditional economic orientation, can effectively contribute to sustainable production goals.
Which scientific methods were utilized?
The work employs a literature-based theoretical analysis of production management combined with an empirical evaluation of 2010 corporate sustainability reports from major automotive companies.
What topics are discussed in the main part?
The main part details the integration of environmental protection into production planning, analyzes the four strategic levels of production, and investigates the practical implementation of these strategies by companies like Volkswagen, BMW, Daimler, and Toyota.
Which keywords characterize this work?
Key terms include sustainable production, strategic-tactical production planning, automotive industry, resource efficiency, industrial ecology, and supply chain management.
How does site selection influence environmental sustainability?
Site selection affects sustainability through regionalization (reducing transportation distances), access to favorable energy sources (such as geothermal power), and the potential for forming industrial supplier or recycling parks.
Can the strategy of capacity be integrated into a sustainable production model?
The paper concludes that the strategy of capacity is difficult to integrate because it is primarily driven by the goal of optimizing production volume and cost, often clashing directly with sustainability efforts that prioritize resource reduction.
What role does outsourcing play in sustainable automobile production?
Outsourcing can be a tool for environmental benefit through specialized expertise, but it also carries risks, such as the shifting of environmental burdens to regions with lower ecological standards.
What is the "pollution haven hypothesis" in this context?
It is the theory that companies might move polluting production processes to countries with weaker environmental regulations to reduce costs, a hypothesis which the authors discuss and contrast with actual industry practices.
- Quote paper
- Markus Kühn (Author), Lars Tebbe (Author), 2012, Sustainability in Automobile Production, Munich, GRIN Verlag, https://www.grin.com/document/188367
