University of Bath School of Management University of Bath School of Management

Changing Approaches to the Production of Cars

Changing Approaches to the Production of Cars

University of Bath research has contributed to a lean, 'build-to-order' (BTO) production strategy for the European automotive industry. The study of 'intelligent logistics' and supply chain configurations led to recommendations for building new production systems that are helping to address significant industry problems: global overcapacity, rising stock levels and low profitability. The research findings have been widely shared with vehicle manufacturers, suppliers, industry trade associations and government bodies, original equipment manufacturers (OEMs) and suppliers.

Our research has had an impact on: the reduction of waste that is integral to the former 'build to stock' production model; the development of an environmentally friendly manufacturing approach; improved profitability through the reduction of 'inventory' (new cars losing value in large distribution parks); and on future innovation and growth challenges for the automotive industry. The research has influenced manufacturers and suppliers seeking to implement a more flexible automotive component supply chain across Europe.