Italian Automotive For Ferrari Operations
How Italian Automotive manage their Ferrari Operations
The current essay is an analysis of the Italian automobile company Ferrari and its operations in Italy. The business and operations of the company have been evaluated and it has been found out that all the Ferrari cars are manufactured in a single location i.e. Maranello campus. All the installations are done by hands and assembly line production system is followed for streamlining the entire process.
The human resources of the company are given high regards and the work environment is especially designed to suit their needs. They are given training not only on the professional fronts but also on their individual interests.
Ferrari has a worldwide reputation for high performance automotives. Established in the year 1929 by Enzo Ferrari, the company is an absolutely iconic sports car manufacturer, which is aboriginal to Maranello, Italy. All through its illustrious past, the automobile company has been renowned for its persistent involvement in racing, particularly in Formula One, wherein it has experienced immense success (Martin, 2007).
The Italian car manufacturer is not new to increasing demands from different markets of the world. The company realized that for meeting the rising output demand, whilst maintaining the quality, it has to increase its rate of production both in terms of speed and quantity. This came across as a profound challenge as every Ferrari has its own distinctiveness.
All the Ferraris in the world are still manufactured exclusively in the Maranello campus wherein every installation is done by hand. Due to this, the factory manufactures roughly around 10-12 cars in a day. Assembly line production system is followed in the company. The vehicle chassis and bodywork of Ferraris are built at the Carrozzeria Scaglietti in close by Modena prior to being coated with paint and finished in a separate building in the Maranello complex.
As the company has been facing the high demand for agility and speed in its production processes, the senior management performed a broad assessment of its processes and discovered a series of improvements. Having assessed production and customization speed demands, coupled with the need to sustain the quality which is a hallmark of brand Ferrari, the executives consented on updating the previous ERP software (Wit and Meyer, 2010).
The research and development process of Ferrari is also very intriguing. The cars act as the living laboratory for Ferrari. Not all the research and development activities of Ferrari are in-house. Instead it goes outside and asks the people to pay for the opportunity. With its recent FFX model, the company literally invited and charged its buyers to be a participant in the research and development process (Solitander and Solitander, 2010).
Ferrari is a product centric car manufacturer. It manufactures well designed and excellent quality products. The company needs to focus on its products as over all these years it has managed to satiate its customers through the supremacy in quality and delivering luxury, style and speed in them. The car manufacturer has always focused on and stuck to long term strategies. Ferrari earlier relied more on car sales in the European continent. However, the Italian market now owns only 5% of the total car sales. The distribution for Ferraris in Italy is entirely carried out by road transport (Finn, 2003).
As far as the human resource strategy is concerned, Ferrari assumes a range of policies for human resource management. At present there are 2695 employees in its production facility. The car manufacturer holds high regards for excellence and the same is seen in its recruitment and selection strategy.
The manufacturing plant symbolizes an ideal working environment. The philosophy of Formula Uomo was implemented in the creation of the production units of the company. As per this philosophy, the needs of the workers must be kept in mind while designing the functions and the buildings (Martin, 2007).
The external environment of the company looks quite promising for Ferrari. The company did not cripple due to the recession that affected almost every company in last five years. In fact the Italian manufacturer surprisingly witnessed an increase in sales. The company however, has to abide by the taxation policies and pay a heavy tax duty for both its outbound and inbound logistics. Federal governments levy high charges on people who buy Ferrari. Nonetheless, this also did not deter the customers to buy it (Castelnovo, 2011).
Technological innovations and Ferrari’s operations go hand in hand. The company has embraced avant-garde technologies with open arms. It is continuously introducing new technologies in its engines. Environmental concerns like rising awareness about climate change is now influencing the ways in which organizations operate and manufacture the products. Ferrari has been trying to reduce the CO2 emissions from its cars whilst still maintaining the quality (Juloskia, 2004).
Hence, from the above essay it can be concluded that Ferrari is not a leader in plush and sports car segments for no reason. It has every valid reason to be at the pinnacle. The company has come out with bright colors from every environmental problem that came to it.
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