Changing Scenarios at ABSB

Published 30 Nov 2008
Reference 5541
Topic Operations
Region Asia
Length 10 page(s)

Set up in 1997 as a joint venture with a leading Swedish auto fabric designer and manufacturer to transfer technology know-how, Malaysian SME ABSB aimed to become the leading ASEAN supplier of seat covers, using the state-of-the-art manufacturing equipment acquired from its partner. However, in 2004 it was under pressure to meet tight delivery requirements and meet demands to improve productivity and the quality of its products.

Teaching objectives

The case encourages an analysis of manufacturing and quality problems (specifically in the car seat cover industry) and discussion of the processes and systems a firm needs to put in place to ensure the correction of defects and production efficiency in the future.

  • product quality
  • limited capacity
  • delivery requirements
  • defective products
  • joint venture
  • technology
  • transfer
  • RD1108
  • AR2008
  • AR0809