Unlike the FPII design and assembly process, which places the time- and labor- intensive manufacturing steps on the final assembly line, IMG traded complexity at the supply base for speed in final assembly. This reliance on its supplier base exposes IMG
to additional risk, given the tight production timelines also characteristic of a world-class manufacturer in reliance also allowed the company to expand capacity production of 500 vehicles per month, the West Point compared to more than 2,000 personnel at FPII for a
of the MRAP program, but it is the automotive industry. This rapidly. As an example, at peak
facility employed lower production
920 personnel, capacity. The
IMG vehicle design, pre-existing operations, and company to take the MaxxPro from concept significantly faster than any of its competitors.
partnering to fielding
relationships enabled in larger numbers
In competing for the MRAP program, IMG took substantial risk as a corporation. As already stated, the JPO considered the company high-risk based on the lack of a working prototype and recent and relevant past performance information. As a result, IMG invested in excess of an estimated $20 million to support capacity expansion for engines, chassis, armor, and other raw materials before receiving the first production
contract (Major, 2008, August 22). It also arrangement, with Plasan providing the armor
initially relied on by air from Israel.
a precarious supplier This risk acceptance
paid off for IMG, however; MRAP program, more than
out of 6,000
a total of more than 15,000 vehicles will be manufactured by IMG.
One of the major IMG armor fabricators is SFI Fabrication, a small company with plants in Memphis, TN; Conway, AR; and New Boston, OH. Prior to the MRAP program, SFI had an existing relationship with International School Bus, another subsidiary within Navistar. In the original IMG sourcing arrangement, Plasan Sasa supplied the fabricated armor for the MaxxPro vehicles, and through the International School Bus/SFI relationship developed SFI as a fabricator in their supply chain (2008,
24 The information in this section was derived from a plant visit and group interview with company
managers (Carr, Collins, & Daniel, 2008, August 22). 77