A study of the competitiveness of the local automotive part industry in Indonesia
Toshiyuki Baba
Research Center for Advanced Economic Engineering, University of Tokyo, Japan
Kiminori Gemba
Research Centre for Advanced Economic Engineering, University of Tokyo, Japan
PP: 16
Abstract
In this paper we studied how the system of 'Drawings Approved' (DA) functions as a barometer of competitiveness in the Indonesian automotive industry.
Companies using the system of DA demonstrate four specific skills that help them gain trust from car manufacturers. Many local suppliers in Indonesia are 'vendors of drawing supplied' (DA), so customers are able to replace them with others because the drawings are unprotected and imply no obligation to collaborate.
Local automobile parts suppliers in Indonesia need to improve client approval functions urgently in order to survive in the industry.
Keywords
industrial system, automotive industry, automotive parts, supplier system
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