1.

Companies Profile:
Trading Name

Chrysler

Type

Limited Liability Company

Industry

Automotive

Parent

Fiat Chrysler Automobiles

Founded

Walter Chrysler

Founder

Headquarters

Chrysler Corporation (June 6, 1925), Chrysler

Group LLC (June 10, 2009)
Auburn Hills, Michigan, U.S

Area Served

Worldwide

Products

Number of Employees

Automobiles, Commercial vehicles,

Automotive parts
77817 (2014)

2. Divisions:

Chrysler
Dodge
Jeep
Ram
Mopar
SRT

3. Chrysler Manufacturers:
3.1 Canada:
Brampton Assembly, Brampton (Ontario)

Etobicoke Casting, Toronto (Ontario)

Windsor Assembly, Windsor (Ontario)

Products:
o Chrysler 300,
o Dodge Challenger
o Dodge Charger
Products:
o Aluminum Die Castings,
Pistons
Products:
1

o
o
o
o

Chrysler Town & Country,

Dodge Grand Caravan
Lancia Voyager
ARam C/V Tradesman)

3.2 Mexico:
Saltillo Engine, Ramos Arizpe (Coahuila)
Saltillo South Engine, Saltillo (Coahuila)
Saltillo Truck Assembly,

Toluca Car Assembly, Toluca(Mexico)

Products:
o Chrysler Hemi engine
Products:
o Chrysler Pentastar engine
Products:
o Saltillo (Coahuila)
Ram1500, 2500/3500,
4500/5500
o Ram ProMaster
Products:
o Dodge Journey
o Fiat Freemont
o Fiat 500

3.3 United States:

Belvidere Assembly, Belvidere (Illinois)

Conner Avenue Assembly,

Detroit (Michigan)
Indiana Transmission 1&2,
Kokomo (Indiana)
Kokomo Casting, Kokomo (Indiana)
Kokomo Transmission, Kokomo(Indiana)
Mount Elliott Tool and Die,
Detroit (Michigan)

Sterling Stamping,
Sterling Heights (Michigan)
Warren Truck Assembly,
Warren (Michigan)

Products:
o Dodge Dart
o Jeep Compass
o Jeep Patriot
Products:
o Dodge Viper
o Viper V10 engine
Products:
o Transmissions
Products:
o Aluminum parts
Products:
o Transmissions
o Engine block machining
Products:
o Tools and dies
o Checking fixtures
o Stamping fixtures
Products:
o Metal stampings
Products:
o Ram 1500

3.4 Venezuela:
Carabobo Assembly, Valencia(Carabobo)

Products:
o Jeep Cherokee
o Jeep Grand Cherokee
o Fiat Siena/Dodge Forza

4. FMS in Chrysler:
4.1 Challenges before FMS in Chrysler:
Chrysler was challenged by the Niche oriented automotive market, and its
proposed solution was to increase the number of models it offers while decreasing the
capital investment. More importantly, they recognized that a market with
unpredictable demand requires a rapid manufacturing response.

4.2 Installation of FMS in Chrysler:

Chrysler has implemented flexible manufacturing at SNAP, Belvidere,
Brampton, Windsor and its St. Louis plant.
In 2003, Windsor Assembly became one of the first Chrysler plants to
implement the flexible manufacturing strategy and in 2005 FMS was rolled out in the
Belvidere plant. In 2004 when Chrysler Pacifica's production began, it was
produced on the same production line as its Grand Caravan and Minivan. This
was the first time when a Chrysler Group manufacturing facility was able to produce
two different products on the production line. The key to Chrysler Group's flexible
manufacturing is the order in which the body is assembled, using a unique underbody
palette system in the body shop.

5. Advantages of FMS in Chrysler:

Amid heavy competition, FMS helped Chrysler to reduce its cost of production
and thereby improving its profit margins. On the other hand its competitors
like General Motors and Ford have to cut down on prices to stay competitive
which eventually affected their profits.
According to Chrysler, FMS reduced the number of workers in the body
assembly. It also helped the company to easily shift cars to different plants.
Flexible Manufacturing System helped improved the plant to work close to its
maximum capacity. This adds to the profitability in a capital intensive industry
like automotive.
With flexible manufacturing, the Chrysler Group said it will save nearly $100
million for the Pacifica launch while simultaneously reducing tooling and
facilities capital expenditures by approximately 40 percent.
FMS will lead to better capacity utilization and hence the company will be able
to meet the market demand more quickly and with less cost. This will help to
strengthen the competitive position of Chrysler in the industry.
FMS gave Chrysler the ability to increase or decrease the production capacity
easily as per the market demand.
The company's flexible efforts support the addition of five new products to the
current long-range product plan and will help the company to attain its
objective of producing additional one million units by 2011.

6. Net Income Analysis:

In 2002, 2003 and 2005 Chrysler introduce FMS and by this chart the total
income of Chrysler increases in 2004 and then it goes on increasing, the ups and
downs are another issue.

Total income of Chrysler in Billion Dollars

120
100

75.07

80 67.42

55.25

94.06

60.92
56.15

60

49.42

55.42

63.67

56.98

97.286
82.68

66.72

40
20
0
2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Total

7. Sales Analysis:
By using FMS in Chrysler the sales in 2003, 2004 and in 2005 increases, by
using FMS Chrysler gains less loss because this helps Chrysler to produce exactly
according to the demand of customer.

3,000,000

Sales of Chrysler

2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Sales

8. Operating Profit Analysis:

The operating profit gradually increases after the installation of FMS in
Chrysler from 2002 to onward, from the chart we came to know that before FMS the
operating profit is less.

Operating Profit in Million Dollars

609
1252
506

2002
2003
2004
2005

1598

2006

1718

9. Number of Employees:
Number of Employees
2006
2005
2004
2003
2002
0

20000

40000

60000

80000

100000

120000

From this chart we see that by installing FMS the number of Employees
decreases due to automation.

10. Conclusion:
From the above data and analysis, I conclude that before installing Flexible
Manufacturing System in Chrysler the total income, operating cost and number of
employees are more and this is the reduction of overall profit. But after Installing
Flexible Manufacturing System Chrysler increases its profit after 2002-2005. By using
Flexible Manufacturing System they overcome many losses, and the productivity rate
also increases. Which make them to have the slogan Americas Import