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Case study wrt Automotive industry for Collaborative Manufacturing

Assignment on Case study wrt Automobile industry for collaborative Manufacturing By Vivek M.Salimath PDM-1st SEM

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Case study wrt Automotive industry for Collaborative Manufacturing

Contents 1) Abstract : 2) Keywords: 3) Collaborative manufacturing definition: 4) Goal of collaborative manufacturing: 5) Proposed collaborative manufacturing methods: 6) Product development definition: 7) Objectives of product development: 8) Benefits of collaborative manufacturing: 9) Disadvantages of collaborative manufacturing: 10) Hub and Spoke model:

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11) Case study of General Motors: • Research on General Motors: • GM vision: • GM partnerships: • Partnership Timetable: • GM Leadership: • Conclusion :

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Case study on Australian Automotive manufacturer: • About TES(Tactical engineering Solution) : • Opportunity: • Project goal: • Conclusion: 13) References:

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Case study wrt Automotive industry for Collaborative Manufacturing

1.1 Abstract: Collaborative manufacturing is an interactive process with great potential, but without the direct input of the plant floor systems information, a significant piece of the management process is not available for consideration. Collaborative Manufacturing provides guidance and examples of how and why real-time events within the plant floor management infrastructure should be an integral on-line systems link within the supply chain process. The text presents an overview of the resources planning systems, the design and management of plant data systems, including manufacturing execution systems and methods for calculating ROI when applying collaborative techniques. This professional how-to-guide will help end users understand the significant benefits of this technology and aids them in system design and implementation. Collaborative manufacturing is quickly emerging as an important approach to creating a more competitive business operation. The goal of Collaborative Manufacturing is to reduce the cost to manufacture something, by getting it right the first time, as opposed to having Manufacturing reject a design and send it back for revision multiple times. This paper describes two case studies of automobile industry i.e. General Motors and Australian Automotive Manufacturer. General Motors are the world's largest automotive corporation. GM is a geocentric automotive company. GM today has manufacturing operations in 32 countries and its vehicles are sold in more than 190 countries. GM established several partnerships and initiatives in China that create benefits beyond those of their direct business. GM thinks globally and acts locally, these positive activities lead GM adapt and hold China car market quickly. Another Automobile Industry is Australian Automotive Manufacturers contracted TES (Tactical Engineering Solution) to launch MODAPTS and lead a direct labor reduction project. Its Projects had performed in North America in applying Lean manufacturing techniques to reduce overall labor costs. Customer’s engineering staff was trained in use of MODAPTS and proprietary Software. Developing transformation programs. New model was launched with no additions to production direct labor.

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Case study wrt Automotive industry for Collaborative Manufacturing

2.1 Keywords: • • • • • • • • • • • • •

OEM-Original Equipment Makers NPD-New Product Development CAD-Computer Aided Design CERES- Coalition for Environmentally Responsible Economies EPA- Environmental Protection Agency EV-Electric Vehicle FFVs- Variable-fueled Vehicles CFCs- Chlorofluorocarbons UAW- United Auto Workers WE CARE- Waste Elimination and Cost Awareness Rewards Everyone SPO- Service Parts Operations TES-Tactical Engineering Solutions CCR- Central Contractor Registration system

3.1 Introduction: The automotive industry is very large and global made up of the largest multinational cooperation’s with range of products that includes automobile, trucks and mass transit buses. Top level companies include General Motors Corporations, Ford Motor Company, Toyota, Nissan, Daimler Chrysler, Volkswagen, Volvo, Honda, Kia and others. These companies usually referred to original equipment makers (OEM). First level Vendors are referred to as tier one suppliers and second level Vendors are referred to as tier two suppliers. Although Suppliers Relationships are not permanent, they do not change at rapid pace.. The original equipment customer is only one side of the market, as after market replacement part sales can continue for many years. Product cycle times are generally considered long term. The product life cycle is affected in short term by frequent annual changes to product and production facilities. 3.1.1 Collaborative manufacturing: Collaborative manufacturing is quickly emerging as an important approach to creating a more competitive business operation. Your company may be one of the ones in a position to fully exploit the changes in manufacturing processes, supply chain efficiencies and the enabling technologies. So the incentive is there to ask the tough questions about whether collaborative manufacturing is right for your company. "Collaborative" comes from "collaborate". Webster's Dictionary gives the following definitions: 1. To work jointly with others or together especially in an intellectual endeavor.

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Case study wrt Automotive industry for Collaborative Manufacturing 2. To cooperate with an agency or instrumentality with which one is not connected.

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3.1.2 Goal of Collaborative Manufacturing: The goal of Collaborative Manufacturing is to reduce the cost to manufacture something, by getting it right the first time, as opposed to having Manufacturing reject a design and send it back for revision multiple times. The same concept of "getting it right the first time" works between all the manufacturing steps. Everyone is familiar with the old saying "Why is there always time to do it over, but never time to do it right in the first place?" It's always cost effective to minimize the revision process. 3.1.3 Proposed Collaborative manufacturing methods: The industry has driven to many conceptual changes in collaborative manufacturing due to following considerations: •

Improved time revenue: The product has to be launched in market such that within short span of time product has to be manufactured with least expenditure cost and should earn profit in the market. • Improved part traceability: The liability and warranty issues in this industry require improved methods of component traceability. • Design for manufacture: The area of product design has been an area of supplier collaboration for some time. Collaborative product development includes design for manufacture input from supply chain sources that examine reduced assembly times and easier production complexity. • Mass customization: A current industry objective is to reduce lead time to produce a finished product from 30 days to 5days from receipt of product order. • Quality: Current quality objectives are to reach reject levels of 2 parts per million. • Logistics: The industry has set some objectives for suppliers to meet. They include shorter order lead times-as low as 2 hours in some instances. •

Modularization:

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Case study wrt Automotive industry for Collaborative Manufacturing There has been continuing movement of outsourcing by OEMs to larger components called modules, where vendors assume responsibility for fully functioning module and the correct delivery of that module to the assembly line. Many of these issues are currently the focus of collaboration among the automotive manufacturers and their suppliers.

3.2 Product Development: Definition

Product development is a broad field of endeavor dealing with the design, creation, and marketing of new products. Sometimes referred to as new product development (NPD), the discipline is focused on developing systematic methods for guiding all the processes involved in getting a new product to market. It is the overall process of strategy, organization, concept generation, product and marketing plan creation, evaluation and commercialization of new product. 3.2.1 Objectives: 1. Converting design into physical reality. 2. Design optimization of the product. 3. Manufacturing optimization of the product. 4. Economically applying on product to optimize it. 5. Market the product. 3.2.3 Benefits of Collaborative Manufacturing: • •

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Engineering labor efficiency: By reducing meeting, travel, documentation, search, error correction and other no value adding time in engineering, efficiency will be doubled. Engineering travel expenses: By allowing engineers on development teams to manage design meetings via the Web, travel expenses can be reduced by more proven parts and complements. Warranty expense: increased design reuse will reduce tooling cost by using more existing parts. Assembly labor expenses: Better design for manufacturability through the integration of CAD, BOM and CAPE systems will labor hours per vehicle.

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Case study wrt Automotive industry for Collaborative Manufacturing •

Direct material cost: Increased design reuse, platform reuse and part count reduction will allow lower cost sourcing by reducing the variability of demand to suppliers. 3.2.4 Disadvantages of Collaborative Manufacturing: • • • • •

Unstable relationships with higher tier customer s A lack of confidence in industry initiatives. A concern for upper tier process inconsistency Little information as to future plans and strategies provided to most lower tier suppliers A lack of loyalty by upper tier customer to their suppliers.

3.2.4 Hub and spoke model. The expectation is that supply chain network will evolve to pure hub and spoke model to meet the varying needs of the automotive industry .This model shown in fig will produce the ability to accelerate electronic communication, share information collaboratively, build industry leadership, drive technology solutions, develop automotive industry standards and be an important step towards the future car which is built in less than 5 days.

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Case study wrt Automotive industry for Collaborative Manufacturing

The automotive industry especially Toyota and Chrysler, has defined early collaboration relationship. As the Industry moves through consolidation to reduce overcapacity, works to reduce the time and cost to bring a new product to market and reaches toward the 5 –or even 10 day car, the need to employ closer collaboration with all of their partners will be need to employ closer collaboration with all other partners will be a cornerstone of their progress. Supply chains are likely to become closer and more identifiable as competing units, requiring tighter and more accurate information management to ensure that each process of the system is inside of it. 4.1 CASE STUDY OF AUTOMOBILE INDUSTRY, General Motors: 4.1.1 Research on General Motors Description of Automobile Industry: Automobile industry is the modern manufacturing industry including commercial vehicles (CVs), cars, three-wheelers and two-wheelers segments.

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Case study wrt Automotive industry for Collaborative Manufacturing The automotive industry has been playing a leading role in spurring growth in economies throughout the world since the industrial revolution. It is a sector characterized by not only tremendous potential growth, but also very high profile trade disputes, and intense competition. In the 21st century, the automotive industry confronts greater challenges as the industry undergoes fundamental changes General Motors are the world's largest automotive corporation operating in over 70 countries with a presence in more than 200 countries, more than 260 major subsidiaries, and a total of 395,000 employees worldwide which translate into global opportunities that span the planet. Founded in 1908, GM has been the global automotive sales leader since 1931. GM today has manufacturing operations in 32 countries and its vehicles are sold in more than 190 countries. 4.1.2 GM Vision: To be the world leader in transportation products and related services. Will earn customers enthusiasm through continuous improvement driven by integrity, teamwork and the innovation of GM people. Company Culture of GM has defined six core values for the conduct of its business The 6 core values define what GM wants to achieve and what GM wants to stand for as a company. They are not only the road map for corporate social responsibility: they are the drivers of all their decisions and activity in all countries. They are, in essence, GM's code of conduct. Every GM employee around the globe is aware of these six core values. 1) Integrity: We will stand for honesty and trust in everything we do. We will say what we believe and do what we say.

2) Continuous Improvement: We will set ambitious goals, stretch to meet them, and then "raise the bar" again and again. We believe that everything can be done better, faster and more effectively in a learning environment. 3) Customer Enthusiasm: We will dedicate ourselves to products and services that create enthusiastic customers. No one will be second-guessed for doing the right things for the customer. 4) Teamwork: We will win by thinking and acting together as one General Motors team, focused on global leadership. Our strengths are our highly skilled people and our diversity. 5) Innovation: We will challenge conventional thinking, explore new technology and implement new ideas, regardless of their source, faster than the competition.

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Case study wrt Automotive industry for Collaborative Manufacturing 6) Individual Respect and Responsibility: We will be respectful of the individuals we work with, and we will take personal responsibility for our actions and the results of our work. 4.1.3 GM Principles: 1. GM is committed to actions to restore and preserve the environment. 2. GM is committed to reducing waste and pollutants, conserving resources, and recycling materials at every stage of the product life cycle. 3. GM will continue to participate actively in educating the public regarding environmental conservation. 4. GM will continue to pursue vigorously the development and implementation of technologies for minimizing pollutant emissions. 4.1.4 Accomplishments over the Years of GM. In 1920s First anti-knock gasoline additives - led to high-performance fuels. 1930s: First non-flammable, low-pressure refrigerants, which made vehicle and home refrigerators practical 1940s: First high-compression, internal-combustion engines 1950s: America's first turbine-powered car; forerunner of present-day computer operating systems 1960s: Pioneering work on experimental power plants: gas turbines, steam, free piston, and Sterling engines; electric drive; and hybrids; first comprehensive data on human injury tolerance 1970s: Zirconium exhaust gas sensor - led to the successful use of three-way catalysts; pioneering work on atmospheric chemistry; first computer simulation of an automobile crash 1980s: Magnequench rare-earth permanent magnets; industry-leading computer vision systems for manufacturing; computer-based structural and acoustic analysis for vehicle design 1990s: Integrated chassis control; series of modern experimental vehicles: advanced electric, diesel-electric hybrid, turbine-electric hybrid, compressed natural gas-fueled and fuel cell-electric vehicles; Partnership for a New Generation of Vehicles (PNGV); magneto-rheological fluids; Adaptive MagnaSteer Variable-Effort Steering The Cultural Revolution in the Marketplace The concept of marketing has been changing from products-oriented to customer-oriented over the years. In the traditional automobile industry, the important part is machine process, but nowadays, the high technology creates more and more added values for automobile products. 4.1.5 Partnerships: GM's global partnerships include product, power train and purchasing collaborations with Fuji Heavy Industries Ltd., Isuzu Motors Ltd. and Suzuki Motor Corp. of Japan, and Fiat Auto Spa of Italy. GM, Suzuki and China's Shanghai 10

Case study wrt Automotive industry for Collaborative Manufacturing Automotive Industry Corp. are partners in GM Daewoo Auto & Technology Co. of South Korea. GM also has technology collaborations with Toyota Motor Corp. and Honda Motor Co. of Japan, and vehicle manufacturing ventures with Toyota and Renault SA of France. 4.1.6 Partnership timetable: 1993: GM, Ford, and the then-Chrysler Corporation enter into an agreement with U.S. government to develop a production prototype vehicle by 2004 that gets up to 80 mpg while maintaining today's affordability and features. The program is called the Partnership for a New Generation of Vehicles. GM unveils its PNGV prototype, the Precept at the North American International Auto Show in January, 2000. 1994: The Coalition for Environmentally Responsible Economies (CERES) and GM mutually endorse each others' Environmental Principles. GM is the first Fortune 50 Company to endorse the CERES Principles. That same year, GM is the first automobile manufacturer to join CERES. 1994: GM and The Nature Conservancy sign commitment to work together on sustainability programs and initiatives. 1994: GM joins the President's Council for Sustainable Development 1997: GM forms a Supplier Environmental Advisory Council to ensure environmental awareness, pollution prevention and compliance from its suppliers 1999: GM & Toyota announce a 5-year collaboration to speed development of advanced technology vehicles manufacturing and assembling modularization Modularization is a systematical integration of automobiles' accessories or sub-system according to its structural organization. Manufacturing & assembling modularization is that automotive accessories manufactures produce modularized systematical products, and then the car producers will finalize automobiles by simply assembling those modularized products. 4.1.7 GM Research Leadership: In 1955, GM became the first auto company to begin conducting atmospheric research. In 1962, GM became the first auto company to construct a smog chamber for analyzing the content and effects of smog. Also in 1962, GM became the first auto company to build a mobile laboratory to sample air pollutants.

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Case study wrt Automotive industry for Collaborative Manufacturing 1967: GM developed the industry's first sealed enclosure (SHED) test technique for measuring evaporative emissions. This technology was later adopted by the U.S. Environmental Protection Agency (U.S. EPA) as its official test for evaporative emissions. GM was the first auto company to set up emission research laboratories in the two areas of the U.S. with the most severe pollution problems (at the time): Los Angeles and Denver. Unleaded Gasoline: In 1970, GM became the first auto company to announce that it would manufacture all of its passenger cars and light trucks in the U.S. to run on unleaded fuel. Reformulated Gasoline: GM proposed the idea of reformulated gasoline, which burns cleaner than traditional unleaded gasoline, in 1989. 1989: GM leads the formation of the Auto-Oil Air Quality improvement research program which led to cleaner reformulated gasoline .In March 1991; GM endorsed the use of reformulated gasoline in all of its vehicles. Electric-powered Vehicles: In 1990, GM announced the development of the Impact (EV1), the first zero-emissions vehicle to be developed for commercial production in the U.S. In 1996, GM was first to market an electric vehicle, the EV1, available for lease in selected markets. Variable-fueled Vehicles (FFVs): In 1991, The Chevrolet Lumina flexible fuel vehicle (FFV) is the first methanol FFV certified by the U.S. EPA FFV's operate on 85 percent methanol, ethanol, or gasoline, or any mixture of them. Elimination of Chlorofluorocarbons (CFCs): GM spearheaded the auto industry's efforts to phase out the use of CFCs, which have been proven to damage the earth's ozone layer. In 1990, all GM dealerships, assembly plants, and fleet garages in the U.S. and all dealers in Europe which service conditioning units were equipped with machines that recover AND recycle CFCs used in air conditioning. GM established several partnerships and initiatives in China that create benefits beyond those of their direct business. For example, GM has been an active partner with the Chinese government in addressing current and emerging environmental challenges. 12

Case study wrt Automotive industry for Collaborative Manufacturing This includes a joint research project with the Chinese and US environmental protection agencies to sample air quality and determine primary sources of pollution. In this vein, GM has taken a lead role in advocating the benefits and use of unleaded fuel in China. 4.1.8 Conclusion: GM is a geocentric automotive company, all of these decisions and activities in China car market show that GM thinks globally and acts locally, these positive activities lead GM adapt and hold China car market quickly.

5.1 TACTICAL ENGINEERING SOLUTIONS CASE STUDY: TES is a Manufacturing Engineering services firm focused on helping our clients Develop and implement sustainable operational improvements that deliver Measurable results. We work in a collaborative manner with other and others team through the difficulties of the implementation phase and we can ensure that Changes will deliver and sustain improvements for your customers and staff. TES transformation work focuses on three elements: • Developing new operating systems to improve productivity and flow using Lean Six Sigma techniques, with limited capital investments. • Creating the performance management system for leaders to monitor and improve performance. • Building realistic, practical capabilities and confidence that our clients will need to continuously improve. 5.1.1 Tactical Engineering Solutions.

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Case study wrt Automotive industry for Collaborative Manufacturing Veteran-owned/women owned disadvantaged small business, serving the business needs of both private and public sectors. Headquartered in Michigan, our roots originate in the manufacturing industry and as we have grown, our portfolio of resources continues to expand upon this foundation into other industries, to include Transportation, Electronics, Aviation, Aerospace, Healthcare, Power, Department of Defense, and more. It is this rich heritage that allows Tactical Engineering Solutions to support our clients with a first-hand understanding of the challenges that businesses face. Tactical Engineering Solutions is registered with Dunn & Bradstreet and the Federal Government's Central Contractor Registration system (CCR). 5.1.2 About Vision. TES executes programs that are on-time, on-budget and technically accurate to help their clients reduce overall cost and improve throughput while increasing customer satisfaction. • Developing transformation programs. (E.g.-labor and manufacturing Efficiency improvements, process Improvements) • Creating performance management Systems. (E.g.-tracking tools, Accountability programs etc) • Zero cost productivity improvements. • Supporting existing change initiatives. • Conducting performance diagnostics. • On site facilitation for Value Stream Analysis and Kaizen events. • Building organizational capabilities. • Executive leadership and coaching. 5.1.3 AUSTRALIAN AUTOMOTIVE MANUFACTURER CASE STUDIES: 5.1.4 Opportunity: An automotive manufacturer in Australia who manufactured 4 different vehicles types contracted TES (Tactical Engineering Solution) to launch MODAPTS and lead a direct labor reduction project. The company had heard of the successful projects had performed in North America in applying Lean manufacturing techniques to reduce overall labor costs. 5.1.5 Project goal: The project goal was to apply MODAPTS to all base operations in Trim and Final Assembly. Direct Labor manpower was to be reduced by 14%, in Addition to absorbing a substantial amount of new content for new model launch.The opportunities 14

Case study wrt Automotive industry for Collaborative Manufacturing for manpower reduction cost savings had to be engineered simultaneously with the application of MODAPTS standards to direct Labor operations. These productivity improvements also had to be implemented with zero impact to safety, quality and ergonomics. TES provided the plant Engineers with the specific skills in line balancing techniques to complete this Project. The project methodology was as follows: • Increased operator efficiency by reducing waste and implementing improved Methods. • Identified rebalance opportunities through “frontloading” work to upstream Operations. • Reviewed proposed opportunities with ergonomic and launch engineers to Ensure zero impact to safety, ergonomics and quality. • Assisted Ford production staff with implementation of proposed rebalances. 5.1.6 Conclusion: Automotive manufacturer in Australia who manufactured 4 different vehicles types contracted TES (Tactical Engineering Solution) to launch MODAPTS and lead a direct labor reduction project. All direct labor operations in Final Assembly have validated MODAPTS studies. Direct labor reduction of 17% was achieved, or more than $2.5 million annually. Customer’s engineering staff was trained in use of MODAPTS and proprietary Software. Developing transformation programs. New model was launched with no additions to production direct labor. Books: Collaborative Manufacturing Using Real time information. Authors: Michael McClellan. References: 1. www.pdfcoke.com 2. www.googleebook.com 3. www.spingerlink.com 4. www.echeat.com 5. www.tacteng.com 6. http://im.sify.com/

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