Manufacturing Process Issues and Financial Impact: A Case Study of Cooper Tire

In this report, the manufacturing process at the cooper tire will be explained, and the problem statement will be evaluated, which needs to improve. In this report, the primary focus will be made on the Six Sigma Problem statement. 

During the Covid-19, the company of Cooper tire manufacturers faces significant issues as they are not getting the proper resources and raw materials to do their manufacturing process on time. Cooper tire company has even shut down their manufacturing facilities in Mexico and the US to respond to the market demand and even protect the health and safety of the employees.

 

While manufacturing the cooper tire, the primary issue was that they failed water temperature above 180 degrees. Another major problem with the cooper tire is that they rapidly lead to a crash or deflate, so the risk of crash increases. There are many tire manufacturers, but in the Cooper tire, there are many other product lines linked. If any product lines are linked to the incorrect rubber compound, it causes the major problem in causing poor adhesion and leads to the separation of the belt. The risk of the tire crash and failure also increases when the copper tire is recalled for potential card distortion. It causes the extending to the cord material by parting the compounds of the lower sidewall. 

The location is US and Mexico, where the issues have been found. Even during the lockdown also, the company got shut down in these countries. 

The primary cause of this problem is that during the Covid-19, all the countries have started putting restrictions or even stopped trading from other countries to protect human beings so that virus can not be spread. There is a lockdown in many countries. Even the transportation sources are not available, so the severity is the impact of Covid-19, which has disrupted the manufacturing process and led to the shut down of this process. The economy is facing a downturn, so there is a slowdown in the manufacturing and production process. Further, it has impacted the supply, due to which the companies are facing many problems and decide to shut down their manufacturing process. 

The company Copper tire has also faced issues related to financial matters. Due to the shutdown of the manufacturing process, the companies' revenues have declined, which has slowed down the company's profitability. The economic impact has been seen in the company's supply chain due to which this disruption in the financial matters has increased, and it has created a downturn for the company. When there manufacturing of the copper tire is stopped, the supply will be slower. It resulted in affecting the growth and profitability of the company negatively. The copper tire company has seen a financial crisis. They have sold their raw materials at a lower cost due to the Covid-19 and stopped their manufacturing process, which has created lower profitability. 

The problem statement analyzed is that due to the Covid-19, the company has faced significant issues in their manufacturing process as they have to shut down their operation. Due to this shutdown, the company has faced the major financial loss and affected the company's growth for the future period. Another major problem with the manufacturing process of the copper tire in the US is the incorrect rubber compound; there is a poor caused which resulted in the crash and the risk of a fire. This major issue needs to be resolved to improve its financial matters and lead to success in the market. 

From the above discussion, it was concluded that the company Copper tire has been going through several problems in their manufacturing process. The major is Covid-19. The company has shut down its manufacturing process. The risk of tire failure is increasing due to the potential cord distortion. These problems are affecting the company's financial growth in the US and need to improve to attain growth in the market.