ABSTRACT

Carjo Manufacturing represents a composite company that produces axle components for the automotive industry. The company’s main products include shafts, tubes, and gear housing assemblies. The company’s sales two years ago were $18 million, but dropped to $16 million. Sales this year are expected to be down again. To be competitive in the market, Carjo must implement Lean to drive out wastes and improve its profit margins. In addition, Carjo must develop a strategic plan to ensure the organization focuses on the appropriate process improvement opportunities.