Name: Malak Moubadder

ID: 201500372

Department of Petroleum Engineering

Course: Management of global Operations

Case Example 2: Global Manufacturing of Volkswagen

1. How does global manufacturing fit the business strategy specified by

Volkswagen “Strategy 2018”?
The main element of the business strategy specified by Volkswagen’s “Strategy
2018” is to become a global, economic and environmental leader among
automobile manufacturers through implementing intelligent innovations and
technologies while satisfying the customers with quality.
2. What are the structural decisions in the global manufacturing of Volkswagen?
Why did Volkswagen plan to reduce outsourcing?
 From a vertical integration point of view: Volkswagen want to adopt
insourcing rather than outsourcing auto-components to India in huge
quantities, so that to boost productivity. Thus, for example they will
increase in house tool making, make more components by themselves.
 From a facility design and planning point of view: Volkswagen runs 99
production plants in 29 different countries within different continents
(Europe, Asia, America and Africa).
 From Factory capacity point of view: Volkswagen manufactures 34500
vehicles or is included in vehicle related services per working day.
3.1. What is the role of the modular platform system?
Volkswagen implements modular platform system to expand production,
efficiency and flexibility hence enlarging their profitability.
3.2. Why is the decision on platform selection strategic?
It is a strategic decision since an automobile platform is a shared set of common
design and production activities to minimize product development’s costs and to
create more new models using similar ideas.
3.3. What is the influence of the Volkswagen decision to choose Porsche not Audi,
as its sports car platform?

1
 Platform selection is thought to be one off the most crucial decision for
Volkswagen.
3.4. What are the infrastructure decisions in the global manufacturing of
Volkswagen?
A vital infrastructure decision is the quality management and control, this decision
is tackling challenges from innovations, Volkswagen has made severe attempts to
reach product and service quality. Moreover they focus on manufacturing
environmentally and ecological friendly vehicles to increase its competitive
advantages.

4. What are the Integration decisions in the global manufacturing of Volkswagen?

Volkswagen recently fully integrates their operations by implementing insourcing.