Enhancing Operational Efficiency.pdf

AbstractThis dissertation examines the decline in profitability within the automotive parts division of Audacio a.s., a leading Czech manufacturer, attributing it to outdated production technology, intense competition from Chinese manufacturers, and stringent European regulations. Employing Fishbone and 5 Whys analyses, the study identifies root causes, including operational inefficiencies, strategic misalignment, and low employee morale. Integrating Operations Management, Human Resource Management, Organisational Theory, and Ethics, it proposes solutions such as adopting advanced manufacturing technologies, enhancing supply chain resilience, forming strategic alliances, and diversifying the product portfolio. A decision matrix evaluates these alternatives, recommending supply chain resilience as the primary strategy for immediate operational stability. The study emphasizes ethical compliance and transformational leadership to foster innovation and sustainability, supported by a phased implementation plan. Drawing on contemporary management literature, it underscores the need for Audacio to align technological, human, and strategic resources to restore competitiveness and ensure long-term viability in the global automotive industry.