Magneti Marelli Holding S. p. A. , a division of Fiat, is headquartered in Corbetta, Italy, and is an international manufacturer that designs, produces, and supplies high-tech automotive components. The primary product range is engine control systems for gasoline and diesel engines. Magneti Marelli is currently present in five continents and 18 countries (Fiat, 2010). To create a more consistent environment in the global process, World Class Manufacturing (WCM) has been implemented in all Fiat manufacturing companies.
World Class Manufacturing is an international methodology for the organization of the manufacturing cycle to manage plants in accordance with the best standards. The application of WCM principles and methods resulted in logistics and quality and significant cost reductions. Fiatâ€™s manufacturing structure has become increasingly efficient and flexible and has enabled the company to gain a competitive edge. Strategy Description For several years, the Fiat Group has been working to develop into a global manufacturing entity with the highest standards.
The implementation of World Class Manufacturing addresses all aspects of the organization including environmental, health and safety, quality, maintenance, cost and logistic issues from the standpoint of continuous improvement. The entire process revolves around the methodical identification and decrease or elimination of waste through application of standardized techniques and tools and involves everyone in the company. WCM recognizes that employee involvement and empowerment are critical to attaining continuous improvement in all fundamentals of the manufacturing system.
Organizational development occurs predominantly through employee involvement. World Class companies invest relatively more in their worker relationships and offer appreciably more training. For program achievement, Human Resources needs to be a business strategic partner and a key member of the management team overseeing and providing operational leadership (Entrepreneur, 1996). Strategy Application The key to developing and maintaining a workforce capable of supporting World Class Manufacturing is to cultivate an atmosphere of employee engagement and team building.
Developing a skilled and flexible workforce creates value for external customers. To sustain a talented labor force, Human Resources initiatives involve recruitment and hiring; performance management; employee development and training; leadership development and training; team building; and safety and health programs (Scondanibbio, 2010). By recruiting and retaining top talent by identifying skill gaps and focus training as characterized by WCM, turnover and absenteeism rates are lowered and productivity and efficiency from workers increases. Training employees provides the chance to take ownership of their daily activities.
Working in teams and cross-functional training increases efficiency and eliminates clutter and confusion on the plant floor. One section of World Class Manufacturing is People Development (Scondanibbio, 2010). HR provides team facilitation, leadership, and direction guidance in meeting instructional needs. The second activity in leading and managing change involves creating a vision that depicts the core values and purpose that guide the organization. It provides a worthwhile direction for designing, implementing, and assessing needed organizational changes.
HR Professionals must sustain the change momentum through to completion by providing resources for change, developing new competencies and skills, and reinforcing new behaviors. Strategy Implications Organizational change involves moving from the known to the unknown which can impact worker competencies and coping abilities. Human Resources must prepare the workforce by meeting instructional needs. The second activity in leading and managing change involves creating readiness for change and overcoming resistance to change. This requires HR to be both the constant and supporter in the middle of the turmoil of change.
The organization looks to HR to provide needed structures, processes and approaches to support change management and to ensure the efforts deliver results (Belilos, 1997). World Class Manufacturing has defined key principles that define the organization and inspires doing things better and improving quality, delivery, cost, and customer satisfaction. It is important to understand exactly what waste is and where it exists. For each identified waste, a strategy is prepared so performance and quality are improved. The identical process is also applied to human errors and gap analysis.
Specific training models are designed applicable to the need. As the phrase indicates, World Class Manufacturing enhances an organization to be a global leader in performance and quality. Human Resources should have a clear understanding of the value of metrics and continuous measurement as the key to achieving sustainable efficiency and effectiveness. Using these outcomes, HR will have a thorough focus on talent and performance management to establish an integrated workforce management system that is closely aligned to the business needs and brand.