Creativity and Innovation of the Alcoa & the Auto Industry Case Study
prepare a “Creativity and Innovation” assessment on the Alcoa & the Auto Industry Case Study. The assessment will be a minimum of 5 pages double spaced in APA format. Your assessment must also include a cover sheet, reference page, proper citations, and free of misspellings.
Leverage the information contained in the textbook, weekly lectures, assignments articles, videos, etc..
This project does require that you conduct research outside the scope of the textbook, weekly lectures, assignments articles, videos, etc.
Be creative and innovative in your assessment and solutioning and demonstrate the knowledge you gained throughout the course.
The following elements must be incorporated into your assessment:
Identify and describe why their aluminum alternative was innovative;
Explain if or how Alcoa leveraged its creative resources (i.e., RBV, etc.);
Discuss who or what was the catalyst for creative change in the organization’s strategy;
Identify and discuss a process, product, or service that Alcoa may or may not need to reset;
If a reset is necessary, formulate an innovative and or disruptive alternative as the solution;
Review and discuss Alcoa’s implementation plan and recreate their implementation plan from your perspective;
Identify and discuss which of Alcoa’s innovative characteristics align best with which strategy (i.e. traits, trends, fringes, etc.);
Identify and discuss which theory of change they align with most closely and the data analytics used to support their innovative strategy;
Identify and discuss which change management plan aligned with their strategy (Lewin’s 3-Step Model, ADKAR, Kotter 8-Step Model, etc.);
Identify and discuss the Alcoa’s implementation strategy (i.e., Four-dimensions of behavioral implementation strategies, buying innovation, outsourcing innovation, creating innovation, or starting an autonomous organizations).
If you need help with APA writing style: https://owl.purdue.edu/owl/research_and_citation/apa_style/apa_formatting_and_style_guide/general_format.html
Creativity and Innovation of the Alcoa and the Auto Industry
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Introduction
Alcoa Corporation is one of the largest producers of aluminum in the world. The company has served the aluminum industry over the world, selling alumina, bauxite, and aluminum products (Andersen and Zaelke, 2017). The company engages in mining bauxite and processing bauxite. The company is also involved in casting, melting, and rolling business and the manufacture of aluminum sheets that are sold directly to their consumers. The aluminum industry is growing with the development of the automotive aluminum which is being utilized in the auto industry.
Automotive Aluminum as innovation
Low-cost manufacturing is one of the main objectives for the automotive industry in an increasingly global competition. Low-cost manufacturing is connected to innovation and technologies that reduce the cost of production. Lightweight manufacturing has been one of the innovations that most automotive have focused on with the need for new equipment and processes to facilitate effective car manufacture (Arconic, 2019). Aluminum is an inherent innovation in reducing vehicle masses, whereby it allows a smaller and more efficient engine to offer the same performance in an automotive. The use of aluminum in the auto industry has been accelerating due to the cost-effective way, environmentally friendly and increased performance, reducing emissions, and improving durability.
Since the aluminum is lighter, it enables the automakers to boost the dent resistance as well as make body panels that have lower weights. Considerably, when aluminum is used in vehicles, it can offer weight savings of about 50 percent as compared to the steel structure that has been used before (Çam and İpekoğlu, 2017). The primary weight structure of the vehicle impacts its performance. For instance, the aluminum will save weight that will improve the performance of the engine, the suspension, transmission, and wheels. Relatively, the aluminum is 20% to 40% lighter compared to steel (Çam and İpekoğlu, 2017). The vehicles that are made of aluminum offer drivers precise and immediate control since aluminum enables better braking, better acceleration, and better handling. Aluminum absorbs more energy as compared to steel in a crash. Considerably, aluminum can be used in energy absorption, which enhances safety with shorter stopping distances that avoid collisions. Aluminum has facilitated increased durability and increased lifespan ideal for vehicles.
Alcoa creative resources
Alcoa company has utilized the resource-based view, which has interpreted and analyzed the internal resources of the organizations as well as enabled in the formulation of strategies in order to acquire a sustainable competitive advantage. To facilitate the technology and innovations, Alcoa has introduced advanced aluminum alloys that have contributed to a higher strength with improved formability and lower weight for the automotive industry. The Alcoa innovation has driven profitable growth in the automotive industry with creative resources and technologies such as advanced rolling mills that have enabled the production of advanced aluminum alloys that have contributed to improved formability and lower weight.
The micro mills process has been one of the most effective processes that have facilitated creative change within the company through the production of lighter weight, durable, and highly formable automotive aluminum. The foundry alloys have been launched to facilitate the growth of automotive aluminum. Alcoa has a sustainable hydropower that has been efficient in the smelting process. The alloy has made the aluminum stronger and durable, which is a significant innovation in automotive aluminum. The hydropower has been the most crucial in maximizing the sources of clean and sustainable energy, which has facilitated the operations of the company. Alcoa has also accelerated the development of digital mining, where they have revolutionized the mining operations. For instance, they have pioneered new ways through the use of digital tools that are used in performing operations in their mines. The drone (Unmanned aerial vehicle) has been used to report back data that has been utilized for effective maintenance and improved operations.
The catalyst for creative change in the organization’s strategy.
The process of creating the aluminum metal and creative changes at Alcoa were established by the founders Charles Martin Hall and Paul Heroult who were the catalyst for creative change in the organization’s strategy. The two have been the catalysts of change since they have redefined the Halt-Heroult process over the years to bring the modern aluminum manufacture. Their basic principles in the manufacture of aluminum have been utilized by many manufacturers in the production of aluminum globally. The process and technological changes have continued to lower the prices of production and transformed the aluminum into a strategic material that has been used in the automotive industry due to its properties of durability, lightness, and strength which has continued to open up novel engineering possibilities (Santos et al., 2016).
Alco was the first aluminum firm to utilize hydropower for the sustainable and efficient smelting process. Currently, hydropower has been an effective strategy for the company to lower the cost of production and maximize the sources of clean and sustainable energy. The operation excellence has also been a major catalyst for creative change within the organization. Over the years, the company has focused on building a team of talented employees who play a key role in the breakthrough of innovations within the aluminum industry. The company has been able to implement and utilize the best practices through digital innovation, which has led to the technical and cultural transformation of Alcoa.
The Micro Mill process
The micro-mill technology at Alcoa does not need to be rest since it has offered an efficient breakthrough with lighter weight, strong and formable aluminum. The micro-mill process with reference to Alcoa has changed the microstructure of the material that manufactures alloy sheet that is twice formable, about 40 percent greater formability, and 30 percent stronger than other automotive aluminum produced by other companies (Prosser and Johnson, 2018). With the addition to the enhanced properties of the materials, it has increasingly reduced the time for production. The Micro mill technology is flexible in the transition for the rolled products for the industrial, automotive, and packaging markets.
Being one of the most efficient and fast-rolling systems and productive casting system in the world automakers will benefit due to the reduced price of aluminum and the system cost for aluminum alloys. For instance, in most of the rolling mills, the process of smelting consists of pouring the molten aluminum into the ingot mold and waiting for the material to harden. The sheets cool and are reheated again and then rolled into thinner gauges. The manufactures repeat the process of cooling and heating a number of times until the sheets are ready. On the other hand, the micro mill process requires 20 minutes to go through from molten metal to sheet. It has a quick cooling system, which has enabled reduced production time. This makes the process more efficient as compared to other processes. Considerably, micro mill technology has made a breakthrough in the manufacturing process, which has changed the face of the aluminum rolling industry. Being the most efficient, most productive, and fastest aluminum rolling and casting system in the world, Alcoa needs not to reset the micro mill process.
Disruptive Innovation
Modern technological devices have led to the disruption of the manufacturing processes since they have the capability of producing high precision and complex materials. Nanotechnology engineering has disrupted the manufacture of automotive aluminum since it has offered the next generation of sustainable transport systems, which involve the aircraft, automobiles, and ships. Nanotechnology has promised to offer material technologies that have improved performance and such as light and stronger materials, wear resistance tires, and reduced environmental impacts. Nanotechnology has been a disruptive technology and process which has reduced the weight and improved the fuel economy. For instance, the nano-engineered materials have allowed a reduced weight in materials. Nanotechnology has improved the performance and lifetime performance of materials, such as improved stability and safety of cars. Considerably the nanotechnology has been considered significant since it will lower the consumption of critical minerals such as aluminum through effective use of the mineral resource and development of cost-effective elements for the application.
Alcoa’s implementation plan
The aluminum producers are influenced by the adjustment in the global markets, which means that they have to invent new ways of doing business. For Alcoa, the company has to look ahead in order to capitalize on the novel opportunities that are presented by innovation and change. Quality and efficient production are one of the key objectives to effectively compete with foreign producers that rely on low energy and improved production efficiencies in order to offer services and products that are of superior quality. Alcoa needs to focus on the Aluminum supply chain to realign its operations to successful business models. This will change the upstream of activities that are aligned to the mining activities such as rolling, smelting, extrusion, and casting. Sustainability should also be a mainstream issue. The corporate culture should pay attention to the economic contribution, environmental stewardship, and social responsibility in manufacturing materials. For instance, Alcoa should focus on the global demand for green and manufacture through process technologies that will eliminate waste production. The production of secondary and recycled aluminum will play a significant role. The new technologies will enhance production with increased productivity and efficiency. Technology-driven manufacture will have significant gains since the manufacturing processes will utilize greater reliability and better quality, which will improve the level of engineering performance.
Alcoa’s innovative characteristics
Alcoa is one of the most innovative companies in the mining industry. The company is always changing and trying out better ideas and offering better services to the aluminum industry. The fact that the company can be able to envision the future and create breakthrough innovations. Trendspotting is one of the most effective strategies that can make a big difference in understanding the trends in the industry. Trend analysis is essential since it will allow the company to identify the various business opportunities that will act as the initial phase for the process of innovation. Trend analysis of the future of the industry can be generated easily and integrated into the strategic goals accordingly. Focusing on consumer demands and needs has been the most effective and efficient way through which the company has obtained data and groundbreaking ideas.
Theory and Model of change
Alcoa utilized the ADKAR theory of change, which helps in identifying why some changes are efficient while others are difficult and unsuccessful. The five elements of the theory are sequential, thus bringing about change that is essential for everyone to understand the reason for the change (Rosenbaum, More, and Steane, 2018). Considerably, the innovations within the company are effective changes that impact employee behavior. The model has focused on individuals or employees as the element of change, thus ensuring that employees are involved in supporting change.
The predictive analytics are used to better understand the company’s future forecast outcomes based on the historical data, and resistance challenges are used to plan the company assets in a manner to create greater value. For instance, the company has formed new business units that have been used in analyzing the employee and consumer data, which are essential in facilitating change. With the help of predictive analytics, they generate future innovative insights and forecast trends.
Change management plan
The ADKAR model is an effective change management plan since it will align with the strategy of the company, which is to lead change through supporting individuals and improving the organizational outcomes. The plan offers five concrete and tangible outcomes that need to be achieved for a long-lasting change. ADKAR equips the leaders with change management activities that enable the leaders to facilitate change and support the employees throughout the process of change (Hayes, 2018). ADKAR will enable the change management leaders and team to focus on the activities that will drive personal and organizational change in order to achieve the organizational goals.
Alcoa’s implementation strategy
An effective innovation strategy is one that creates winning products, which means that what the company is offering is attractive to the market and can efficiently target a profitable consumer group by addressing the needs and demands of the consumer better than the competitors. Alcoa implementation strategy will involve creating innovation by applying essential tools, processes, and techniques of innovation in the production of automotive aluminum. Alcoa is focused on creating innovations that will increase environmental sustainability in product design and recycling and deliver the best outcomes to the customers. Considerably, improving the manufacturing process through technologies and innovation will bring a major breakthrough through the next generation of automotive with formability, strength, and surface quality.
Conclusion
In summation, the assessment of creativity and innovation of the Alcoa and the Auto Industry has illustrated how Alcoa has played a significant role in the automotive service through creativity and innovation manufacturing the automotive aluminum. The manufacture of automotive aluminum has transformed the automotive industry The operational and change management within the company has facilitated successful change within Alcoa. Effective implementation strategy and change management plans will foster effective utilization of innovation to facilitate efficient processes and mass production of aluminum products.
References
Andersen, S., & Zaelke, D. (2017). Alcoa Aluminum Putting energy in the bank. In Industry Genius (pp. 15-31). Routledge.
Arconic, T. P. (2019). The global aluminum market. Aluminium International Today.
Çam, G., & İpekoğlu, G. (2017). Recent developments in the joining of aluminum alloys. The International Journal of Advanced Manufacturing Technology, 91(5-8), 1851-1866.
Hayes, J. (2018). The theory and practice of change management. Palgrave.
Prosser, M., & Johnson, M. (2018). Australian bauxite mining: Sustainable guidelines explained. Aluminium International Today, 31(4), 24-27.
Rosenbaum, D., More, E., & Steane, P. (2018). Planned organizational change management. Journal of Organizational Change Management.
Santos, M. C., Machado, A. R., Sales, W. F., Barrozo, M. A., & Ezugwu, E. O. (2016). Machining of aluminum alloys: a review. The International Journal of Advanced Manufacturing Technology, 86(9-12), 3067-3080.
