Supply Chain and Operations Management of Ferruccio Lamborghini Essay

Supply Chain and Operations Management of Ferruccio Lamborghini - Essay Example From this study it is clear that   Lamborghini produces both engines and cars, Aventador being its latest mainstream product. Named after a well known Spanish bull, Aventador has incorporated Lamborghini’s trademark theme as a product; power and exquisiteness inspired from bulls and bullfighting. Priced at $376,000 and performing a 0-100 km/h acceleration in just 2.9 seconds, Aventador has gotten the interest of many sports car enthusiasts from the start of its production. The sales of the car were high enough to make its 1000th sale within 15 months   Like its predecessors, Aventador has continued to break the records of previous Lamborghini models and has shown the sales to be high enough to beat the model it replaced, Murcielago, within five years. Considering the challenges Lamborghini faces from its rivals, profitability from its expensive cars has to be kept in line with the performance and care has to be taken so as not to compromise the car’s high performanc e for the sake of higher sales. ... With the tight production and delivery schedules of a multitude of produced units, the suppliers get under enormous pressure from the manufacturers who want to keep their products on top of the market. In order to maintain the tight schedule, component suppliers have been pushed to set up their factories with the top commercial vehicle producers by their requisition of geographically feasible regions of Asia. This paper highlights that employing production systems like Kanban to fulfill customer oriented production to achieve just in time production, the commercial manufacturers have driven the market to an unlikely position for sports car manufacturers. Lamborghini’s production facility has 831 employees and is located at Sant'Agata Bolognese, Italy. As such, the company gets to use the country’s vast automotive production set up and does not get affected by the production dynamics of the domestic usage cars. Yet, the sport car prod uction has its own competition to deal with. The tight schedule and intricate timings make the manufacturers outsource some parts of their supply chain to reduce the load while the rest are carefully managed by the company. Lamborghini also uses the best possible routes to manufacturing often outsourcing some noncore aspects of production or supply chain either to reduce load or to increase efficiency. The high sales, with the first year’s production of Aventador - the first new model introduced in 10 years - all sold out, have put a high demand strain on the company . Lamborghini announced at a press event in Sant’Agata that the production of Aventador had increased its production capacity to 3.5 cars a day.