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Planning of a car factory

Automotive Product Development and Production
Groupwork:
Matthias Heiser
Benjamin Koenig
Sebastien Lavoie
Daniel Luecht
Stefan Penner
Roelof van Maasakkers
Hand in date:
24.03.2004
Tutor:
Dr. W. Schreiber
1
Table of contents
1. Introduction 2
2. Scenario 3
2.1 Developments in Technology 6
2.2. Changes in Production 8
3. Technical concept and package 10
3.1 Competitive advantage 10
3.2 Benchmark and positioning 12
3.3 Package Specifications and Drawing 15
4. SWOT and critical success factors 18
5. WORK-BREAK-DOWN STRUCTURE for the plant 19
6. Overall factory layout 20
7. Individual layout 24
7.1 Body in White 24
7.1.1 Press Shop 24
7.1.2 Body Shop 26
7.2 Paint Shop 29
7.3 Final Assembly 31
8. Logistic process 33
9. Process flow 36
9.1 Process Flow Body in White 36
9.1.1 Process Flow Press Shop 36
9.1.2 Process Flow Body Shop 37
9.2 Process Flow Paint Shop 37
9.3 Process Flow Final Assembly 39
10. Modularisation of product and production 40
11. Conclusion 43
12. References 44
13. Appendix 46
2
1. Introduction
The following report is about to show the learning outcomes of the given Product
Development and Production lectures of the fourth core module of the MSc course.
The development of new vehicle manufacturing plants becomes more and more
important. The implementation of suppliers into the development process and the use of
new car development concepts cause a change in developing new plants.
The task is to develop a plan and a layout for a car factory under the following
requirements:
A00 class car
2,000 units per day
3 shifts of 8 hours each
a low number of derivates
start of production is 2010
The report is devided into thirteen chapters and includes all aspects of a car factory
layout. Each chapter covers a single topic which has to be taken into consideration when
planning this layout. The report starts by analysing the scenario in the year 2010. From
there on all the given partial tasks are solved.
3
2. Scenario
Scenario of the year 2010
Regarding the developments of the past and nowadays society, politics and technologies,
it is possible to create scenarios for the future. These scenarios can roughly be divided
into three different categories:
Prosperity: Growth of the economy, traditional values
Pragmatism: Low growth of the economy, no big changes are expected
Transformation: Stagnation, crisis, changes in values
Each category reflects different expectations of the future, but can anyhow only show an
evolutionary development. The danger of unforeseen changes, based on political, societal
or technical revolutions or on terroristic or climatic hazards can be only slightly regarded,
because of their complexity of influence.
Applying a pragmatic view of the future for an automobile in the year 2010, it can be said
that:
Unique selling properties will be: styling (still), environmentally-friendliness and
economy will increase, innovation and price will stay similar to nowadays (1*);
Increase of after sales activities such as loyalty programs and mobility services (1*),
[] the basic concept of automotive transportation hasn't made a really quantum
leap in the past 50 years, and in the last few decades in particular, technological
advancements seem to have levelled off a great deal. To the average owner, the
mass market family sedan is becoming just another necessary "appliance" like a
refrigerator, except for its relative cost. It is chock full of sophisticated electronic
science and development -- but that is mostly transparent technology, and the end
result is millions of vehicles that are apparently functionally indistinguishable. (2*)
Above all, several changes in the future influencing the automotive industry can already
be predicted because of the nowadays situation and the success in developments:
Societal changes
Disregarding any political or technological changes, the society experiences a
demographical change within the next years. This can be said because of the observations
done in the past.
When designing a car, it has to be beared in mind, that the average of the population is
growing continuously, due to developments in medicine and life-quality. This growth is
stated for Middle Europe with 1 mm per year in average, except from the Netherlands,
where it is 1,6 mm per year (3*).
Not only is the average height of the population increasing also the average age,
especially in Middle Europe. Regarding the following figure, it is obvious, that there are
already in 2010 remarkable changes identifiable.
4
figure 001: Demographical development belonging to the age of the German population
in comparison between 1998 and 2030 (3*).
The increase of traffic of the last years, shown on the figures of the registration history of
Germany will implement a stronger need for safety which is already nowadays the case.
Independent organizations such as the EuroNCAP achieved a big popularity in testing new
cars and those already on the market for safety issues, demanding in some issues much
higher limit values than legislatively claimed. For example the hip-collision for pedestrian
safety, which is introduced by law in 2010, but already tested by the EuroNCAP (4*).
5
10 000 000
20 000 000
30 000 000
40 000 000
50 000 000
1968 1978 1988 1998
Year
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figure 002: Number of registered passenger vehicles in Germany from 1970 to 2000
(10*)
Another societal influence on the automotive industry is the changing buying behaviour of
the population. The trust into the internet and its usage is growing and changes the
buying behaviour in many cases of the daily life. This will influence the traditional
automotive dealers, which will loose importance, down to -40% of todays revenues;
furthermore discount dealers will be selling huge volumes of cars and will increase their
market share because of the Gruppenfreistellungsverordnung, GVO (5*).
This influence is made up by the legislation of the European Union. In the past, there
were already directives for several issues to increase the ease of use and therefore the
safety, like the SAE set in 1964 the order of PRNDL for automatic gearbox shifters or in
1977 the order of certain control functions to be on the right or left side of the control
stalk (6*).
An actual example is the upcoming pedestrian safety regulation 70/156/EWG, which case
of an accident. This regulation does have a big influence on the design of nowadays cars
and increases the need for new technology in certain areas (7*).
6
One of the main driving forces in the automotive industry is the technology itself. As
nowadays already regarded, the use of electrics and electronics is increasing. This
tendency will continue in the future.
figure 003 : The shift of value for functions in comparison between the years 2002 and
2010 for passenger vehicle (9*).
2.1 Developments in Technology
7
Searching for alternative fuels, hydrogen was discovered in the 60s by GM for the
empowerment of passenger vehicles. GM presented the concept Electrovan, using a fuel
cell to produce electrical energy to drive the car. Nowadays almost every other big
Original Equipment Manufacturer (OEM) is presenting concepts of a possible use of fuel
cell in mobile applications. BMW presented the first hydrogen car in 1978 and proves
nowadays the usability of hydrogen as an alternative fuel with their 745h fleet, which is
often used as a shuttle service for important events such as the IAA in Frankfurt / Main,
without any compromises in power and comfort (8*).
Regarding the year 2010 is not very obvious that this technology will have its break
through; because of the very wide spread infrastructure for petroleum use and its cost
efficiency, that it will probably need a revolution to evoque bigger changes in engine
technology within the next six years. This is even more obvious, when regarding the
nowadays stage of developments in alternative power and the duration of the automotive
product development.
Another big issue in technological development is the increasing need for safety and the
severe regulations for the future as already mentioned in the chapter before. The
upcoming pedestrian safety regulations for example do have a big influence on the
development of new cars; not only has the design of the structure to be changed to
create a pedestrian-friendly car, but also the materials to absorb the energy and the
styling of the front-end. Last but not least, active systems are developed to increase the
collapsible zone for the pedestrian through lifting the bonnet, but also detection systems
to avoid the accident. This will lead to an increased use of electronically features as
already mentioned above.
To reduce cost and increase the effectiveness of nowadays safety systems, detection
systems will increase the passive safety through controlling the occupancy of seat, the
position of the person and his weight, sex and size to react in the right way in case of an
accident.
Regarding the last decades, more and more new segments are invented to satisfy
customers needs. Nowadays there are already a lot of so called crossover cars available
which are combinations of different segments. This variety will increase in the future and
regarding a little bit further, probably lead to a dilution of the formerly clearly divided
segments in the automotive sector and also it will involve issues of motorcycles,
watercraft, hovercraft or even aircrafts (2*).
Having already mentioned changing regulations for passenger safety there are much more
influences by the law on the development of new cars. The always increasing restrictions
for fuel consumption and emissions lead to the need to increase efficiency of the car and
this is primarily done through weight reduction. The use of innovative materials is
necessary to create lightweight structures, always bearing in mind that the recyclability of
the car has to be increased as well, demanded by law.
The use of lightweight structures in the future is predictable regarding nowadays
structures used in the upper segment, like the MERCEDES CL, which combines many
different materials to utilize their special potentials. These ideas gained in this highly
profitable market will float down to the mass production as already seen with the
Aluminium bodied AUDI A8 and the AUDI A2.
Not only the decrease of weight leads to further developments but also the changes and
increase in demand of the customer. Innovative materials are invented to reduce
contamination of the exterior and interior or to increase the level of comfort through
venting fabrics (9*).
8
Looking at the visions of the past and the developments nowadays, the dream of
autonomous driving is still a big issue for the future. Presenting systems that are
detecting the surrounding of the car and even manipulating the speed, like the Automatic
Cruise Control (AUDI), it is shown that autonomous driving is still a goal of the
development and research departments.
The following graphic shows some important developments which will have an influence
on the driving of the future from a technological point of view:
figure 004: Technological Milestones in connection with the time (9*).
The increasing globalization not only affects the consumer behaviour as already
mentioned but also the pressure of costs for the production because of the rising
competition. Most of the OEM do have production sites in various countries, not only to be
close to the market but also to reduce costs of production.
Through the rising competition there are also changing expectations in the brands, that
have to be fulfilled through a decrease of the time-to-market-time and the increase of
derivates and variants to satisfy the customers. This leads to a shortening of the product-
life-cycles and requires short reaction times, not only in the development but also in the
production.
The increase of variants and derivates, the decrease of time-to-market and the shortening
of life-cycles are exactly contrariwise to the sempiternal growth of complexity through
already mentioned changes in technology. External resources have to be involved in the
development of new products as it is already done with external suppliers like BOSCH,
developing fuel injection systems or DELPHI, developing interior solutions. Furthermore,
external production capacities are used to purchase systems or whole modules for a car.
These tendencies will probably also increase in the future regarding upcoming solutions in
plant layout, where the suppliers are not only delivering parts but also mounting them on
location, like it is done in
2.2. Changes in Production
9
the SMART plant in Hambach / Germany or the VOLKSWAGEN Commercial Vehicle plant
in Brazil (10*).
These examples show a change in the value-added chain. The responsibility of the
manufacturing of a module is extended to the assembly into the car. That means that the
number of employees in the assembly will be reduced at the side of the OEM but increases
at the side of the suppliers. A survey was done by a consulting agency belonging to the
future of the production of vehicles. Managers of OEM and Suppliers on all levels of
production where asked to answer several question to the production of a car in the year
2010. 60 % of the managers believe in a reorganization of the value-added chain in the
mentioned direction, the rest expects a moderate change in stabilized structures. (5*).
This survey also shows a further trend, namely that the involvement of the supplier is not
only extended internally the assembly but even completely outsourced to the supplier.
38 % of the surveyed people can imagine that the production in 2010 is done at the
supplier under the brand of the OEM (5*).
A further trend can already be regarded these days: The number of suppliers is reduced
although the involvement is increasing continuously. That does not mean that they will
close down but consolidate with other suppliers. This reduction will be up to 50 % of today
to 4000 (1*). This trend is initiated mainly by the two reasons: The OEM wish to deal with
a smaller number of suppliers to reduce organizational effort and the supplier wants to
increase their competence to extend their production program to larger modules.
As shown in the chapter above, the developments in the field of electronics will have a big
influence on the driving in the future. This does also means that the influence of the
electronic-processing companies will grow. That includes on the one hand electronic parts
producing companies but also software programming companies (9*).
10
3. Technical concept and package
The main objective for the company to introduce a car in the A00 class car segment, is to
increase the market share in the worldwide motor industry. To increase market share, it is
important to differentiate and to introduce more diversity in the model range.
After the launch phase, the aim of the A00 class car is to consolidate and further expand
the success of the company. On its way to this goal the company is supported by two
market trends. Firstly, the A00 car segment is set to grow by about 50% over the next
ten to twelve years from the 8.4 million units worldwide sold in 2001.(15*)
And secondly, the market for premium products is clearly growing faster than the total
market. Particularly in the A00 class segment, the number of customers who will not
compromise on safety, quality and driving characteristics is rising faster than average.
(15*)
The first step in understanding the position of a product is to examine this against its
competitors. All products are in a competitive position in relation to each other. To
analyse the market the identification of key competitive forces have to be identified. In
the very complex and competitive motor industry, the substitutes are very close to each
other (see Benchmark in the Appendix figure 026).
The A00 car segment was the domain of the South and East European as well as Asian
OEM till recently. These carried out their profits of the cost leadership and the Economies
of Scale. Vehicles like the Fiat panda or the Mazda 121 stand out due to functionality and
a reasonable price in which the extremely cost-conscious buyers are also ready to make
cut backs at equipment and design. This way of thinking changed during the last decades.
The new stars at the A00 market showing high quality standards, a lot of the newest high-
tech features and they are no longer only cheap cars.
This graphic (figure 004) shows the position of our A00 class car to its competitors. The
Y-axis shows the buyers emotional rate to a brand and the X-axis shows rate of buyers
social integration to a brand. The conclusion is that our A00 class car is bought with a
more than average degree of emotions.
2.1 Competitive advantage
Control emotion
Social integration
Social affirmation
Express emotion
figure 004
We
11
All companies in the market are in competition with each other. In the business of
manufacturing it is important to identify a companys competitive advantage. The brands
and especially the models have a specific competitive advantage to other models.
There are three competitive advantages:
Focus
Differentiation
Cost
This graphic (figure 005) shows the relation between the competitive advantages, costs,
differentiation and focus. It points out, especially in our case, the connection between
costs and differentiation. It is clear, if the differentiation increases, the cost factor drops.
The competitive advantage for our A00 class car is differentiation.
cost
differentiation
focus
figure 005
We
12
3.2 Benchmark and positioning
Comparing the competitors under the aspect of the outer size, an upper limit of 900mm
or the A00 Class is figured out. The average height is roundabout 1500mm with some
exceptions up- and downwards. The positioning of our project in length to the competitors
is a tribute to the ever growing average size of the cars and the implementation of a
sportive exterior look in increasing the length while having an average height.
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3900
Maximum length in
the A00 Segment
~1400
Minimum height but
no Maximum
We
figure 006
13
The relation between quantity and price, regarding the German market, is needed to
create an attractive price for the customer. Our expected sales numbers will be higher
than Peugeot, but the upper price limit should not exceed this competitor. The bottom
price limit should not underbid competitors like Hyundai because of image and
differentiation reasons. This leads to a range of prices which will offer the possibility to
introduce different model variants beginning with a cheap basic model at the bottom and
a sporty model at the end of the range.
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Basic Sport Model
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figure 007
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Relating the weight to the volume, a ratio of lightweight can be created. The aim is to
achieve a maximum of volume with a minimum of weight in comparison to the
competitors. The increasing demands for fuel efficiency implements a decrease of weight.
This decrease is also needed to increase the sportiness of our car.
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weight / volume
Ratio
-> sporty
~Maximum
in the A00 Segment
due to the length
We
figure 008
15
front-wheel drive Driven axle
front engine, transversally mounted Engine
175/65 R15 up to 205/55 R16 Wheels and tires
55 - 125 (gto-version) Performance [kW]
~2750 Wheelbase [mm]
495 Load capacity [kg]
less than 900 Weight [kg]
~1650 Width [mm]
~1500 Height [mm]
~3850 Length [mm]
4, optional 5 Number of passengers
starting at 9995 up to ~14800 Price [EUR]
Singles and Young Unisex Driver as First Car, Second Car
for Family Use Target group
3 shifts of 8 hours each
Start of production 2010,
Low number of derivatives,
A00 class car, 2.000 units per day, Scenario
Specification
3.3 Package Specifications and Drawing
Following are Specifications and Drawings that define package issues, such as height,
length, width, head position contour, front and rear passenger position, vision lines as
well as Angle of Approach and Departure for A00 vehicle class.
16
Car width 1690 W103
Steering Wheel Diameter 355 W9
W
Overhang - Rear 498,5 L105
Overhang - Front 580 L104
Vehicle Length 3832 L103
Wheelbase 2755 L101
H-Point Distance 741 L50
Trunk slope - driver seat 25 L40
H-Point to Heel Point - Rear 542,2 L35
H-Point to Heel Point - Front 939,2 L34
Steering Wheel to Front Wheel 1277 L26
Horizontal seat adjustable stroke - driver seat 216 L23
L
Ground Clearance 170 H156
Tank Ground Clearance 265 H154
Angle of Departure 25 H107
Angle of Approach 30 H106
Vehicle Height 1496,6 H101
Vertical measure H-Point to Heel Point - Rear 279 H31
Vertical measure H-Point to Heel Point - Front 292 H30
Vertical seat adjustable stroke - driver seat 59,4 H23
Steering column angle in Y-plane 21,6 H19
H
H-Point x measure 2265 L31
H-Point y measure -295 W20
H-Point z measure 268 H70
H-Point to Ground 568 H10
H-Point - Rear
H-Point x measure 1525 L31
H-Point y measure -380 W20
H-Point z measure 310 H70
H-Point to Ground 610 H5
H-Point - Front
description specification measure
17
Package Drawing
Out of the measurements and specifications given above, a package drawing was created.
Figure 009 shows a preview of the drawing. The appendix includes a 1:5 scale plot of the
drawing.
figure 009
18
4. SWOT and critical success factors
Threats
1)Many competitors, especially from Asia
2)More strict crash legislation
Opportunities
1)Fuel prices increasing
2)More strict exhaust emissions law
3)Lower speed limits
Weaknesses
1)Small overall dimensions: fullfilling
safety requirements
2)Limited space for alternative engine
concepts
3)Not suitable for every market
Strengths
1)Small car (parking space)
2)Fuel economy
3)Modular product configuration: early
testings possible
O3 Little
O2, T2 Middle
O1 Strong
T1 Massive
Probable Possible Hardly Possible Not Probable Influence
Probability
figure 010: Product SWOT analysis
The analysed Opportunities and Threats are rated to their probability to increase the
predictability of the success of the project.
figure 011: Product Critical Success Factors
Stating the assessed values, an estimation of risk can be done belonging to the bases of
the facts. The occurrence of Threads is usually not influencable, but the knowledge of
possible Threads allows the company to prepare for them and to develop strategies to
face them successfully. Whereas opportunities offer the possibilities to increase the
success of the project and in long-term of the company, if they are recognized and faced
in the right way.
19
Threats
-New environmental law
-Increasing power of suppliers
-Workers unions
-Resistance to industrialisation by Green
party or population
Opportunities
-Flexibility of the plant
-Economy of scale
Weaknesses
-High amount of investment (new plant)
-High material flowinflexible
-High fixed cost (robots and machinery)
Strengths
-New plant with latest concepts
-Low number of product derivatives
-High plant modularisation
-Communication center: high
communication throughput
-Early failure detection through
communication center
-High degree of mechanisation
figure 012: Plant SWOT analysis
The work breakdown structure (WBS) is a tool to subdivide the whole plant into systems
(its single departments), subsystems (sub departments e.g. press and body shop) and
modules (e.g. the modules at the assembly line) up to the lowest components, the
workpackages. The WBS is the spine of the plant development and shows the coherencies
to the different departments. For the development of the new plant a simplified work
breakdown structure is shown in the appendix (figure 027).
5. WORK-BREAK-DOWN STRUCTURE for the plant
20
6. Overall factory layout
During the last decades the layout of car manufacturing plants changed very often, always
adapted to the present conditions and facilities. Due to the fact that the term lean
production gains more importance and the minimization of so called non-value adding
activities are taken into consideration, new plants have to be developed for the future as
well. The main aim is to save money (produce efficient), improve the product quality and
avoid unnecessary costs. This can be done by removing or avoiding unnecessary
machinery processes, using new production methods, minimizing high inventories or even
by reducing material handling.
A manufacturing philosophy such as Kaizen deals with is the breaking down of the
activities into sub-activities and investigating the possibilities to shorten and simplify
these sub-activities. This is only one example. Due to lean production the participation of
all involved parties such as the design, suppliers and the production is the way to ensure
the best compatibility between design and manufacturing.
Poka Yoke, the Japanese term for defect prevention deals with the design of new
plants, too. To eliminate the production of defects, to ease detection of missing parts or
improper assembly, to take the burden off the worker or also to avoid equipment or injury
malfunctions are ideas which influences the plant development in present.
The use of the platform strategy will be continued in the future time. The most important
benefits are listed below:
Reduction of costs
Lower the initial investment
A possible part exchange
Reduction of part variety
Process improvement
A better quality control
To minimise the needed storage space the just in time (JIT) delivery method will be
implemented. Therefore two logistic centres are planned.
Due to the fact that cars become more and more complex, the production becomes more
cost related and cost orientated and the logistics more important, the new plant looks like
a star (figure 013). In the centre is the communication centre, which controls all
processes that have to be done in the plant. The communication between the single
processes and departments is better. This results in an excellent quality management.
Potential failures can be discovered in an early production stage, repaired and because of
the short communication ways easier avoided in the future. After finishing one production
step, the car has to pass the communication centre, where all data and specifications can
be verified.
But also the canteen will be in this centre. People from different departments can sit
together and exchange information or discuss problems. Here new ideas or improvements
can be developed to increase the product or production quality.
21
For the development of the new plant the following requirements had to be taken to
account:
A00 class cars have to be built
The outcome of 2,000 units per days is required
Each day has 3 shifts about 8 hours working time
A low number of derivates is demanded
Start of production is 2010
Out of the shown future trends and the requirements a plant layout was developed like
shown in figure 013.
figure 013: Overall Factory Layout
22
On the bottom of this figure the production process starts. The raw material (metal
sheets) will be delivered to the first of two logistic centres. To safe costs and time in
transportation the press shop and also the body shop will be located directly beside this
department. After the body in white is finished, it passes the communication centre the
first time and goes on to the paint shop. From the paint shop and again through the
communication centre it ends up in the assembly shop, where the cars will be assembled.
In the logistic centre the cars will be loaded on trains to be sent to their destinations.
Volkswagen in Brazil has already such a similar plant. In the centre there is the
communications centre to control the processes.
The suppliers are fully integrated into the plant. Each supplier has its own area at the
assembly line. The segmentation of the plant ensures the easy access for every supplier
to deliver the parts directly to the line. The internal logistic travel for the OEM can be
minimized in this way.
For an output of 2,000 cars a day, in three shifts of 8 hours each (in total 1,440 minutes)
the average output rate will be 2,000units/1,440min. Therefore a car will leave the
production facilities every 0.72min (43sec) in average. Such high output volumes are
generally favoured by high degrees of mechanisation. The low number of derivates also
doesnt requires flexibility or man power. Therefore a degree of mechanisation of about
70% is a suitable compromise between too much and too less mechanization in the
manner of costs. Nevertheless, it requires well thought-out solutions for built-in flexibility.
Table 1 below shows the characteristics of the new plant, 25,000m2 are required for the
communication centre, which includes a small engineering department, the quality
department, canteen etc. Another 12,000 m are demanded by the entrance hall with its
exhibition area, a small museum, an event area, merchandise stores and an area where
people can pick up their new cars.
23
0.58
classification number
(t)/(cars/day)
1161 sum 3
8 superior area
45 infrastructure and outer area
20 social and boundary area
0.54
classification number
(t)/(cars/day)
1088 sum 2
28 logistics/controlling
0.53
classification number
(t)/(cars/day)
1060 sum 1
0.10
classification number
(t)/(cars/day)
200 assembly
0.13
classification number
(t)/(cars/day)
260 paint shop
0.22
classification number
(t)/(cars/day)
440 body shop
0.08
classification number
(t)/(cars/day)
160 press shop
Table 1: Characteristics of the new car plant
Investments in Thousand Euro
150500 sum
1.95 sum worker/plant 42000 assembly
3900 sum worker 56500 paint shop
0.25 classification number W/(cars/day) 32000 body shop
500 Others (engineering, administration etc.) 20000 press shop
0.98 classification number W/(cars/day) Production Area in m
1960 assembly worker
0.23 classification number W/(cars/day) 480000 cars/year
460 paint shop worker 2000 cars/day
0.38 classification number W/(cars/day) 83,3 cars/hour Capacity in
760 body shop worker 240 plant opening days
0.11 classification number W/(cars/day) 8 shifts per day
220 press shop worker 1440 working time [min/day]
Human Resources Technical Data of the new Car Factory
24
7. Individual Layout
This chapter will describe the individual plant layout through the different areas of the
factory for example the press and the body shop; together the body in white, the paint
shop and the final assembly line respectively. Each of these areas has different types of
processes with unique features, which will be described in more detail later. Different
body panels are pressed in the press shop and the vehicle body is then welded together in
the body shop. As the body in white it goes on through the paint shop for further
treatments and the painting. Finally, the engine, transmission and all other car
components are installed on the assembly line.
From the planning period of the plant, up to the start up of the series production it is
important to invest in the latest automation and die handling equipment technology,
which can improve production effectiveness, lower die changing costs and provide greater
flexibility. The main objectives of a well designed press shop are:
Produce at the lowest cost
Minimise stocks and delays
Maximise the return on investment (ROI)
Maintain the target product quality
These objectives achieve a better efficiency in operations that minimize:
Production set-up time
Cycle time
Downtime
Scrap and rework
Further it is absolute necessary to fulfil the requirements for optimal dimensional accuracy
and quality of the components, whether the company is producing large outer skin panels,
car body or structural parts. When operating a stamping facility, proper scheduling of
equipment and human resources plays an important role in facility performance. Set-up,
tool and fixture requirements, preventative maintenance and other factors influence the
performance of the press shop.
The press shop in this new facility is ideally located, moreover, it is directly implemented
under the same roof as the body shop where hundreds of robots spot-weld the panels
together. The implementation is required in order to reduce transportation of pressed
parts. Also the communication travel is less, which significantly increases quality
throughout the factory. A detailed layout of the press shop is shown in figure 014 below.
7.1. Body in White
7.1.1. Press shop
25
Module 5:
Assembly parts
Module 3:
Side parts
Module 1:
Lower body I
Module 2:
Lower body II
Module 4:
Upper body
figure 014: Layout of the Press Shop
The raw material comes from the logistic centre and will be distributed to each of the
presses. There are several modules: the lower body I, lower body II, side parts, upper
body and additional assembly parts, which have to be produced. All presses work
independent and deliver the finished parts to the body shop along the red line shown in
figure 014. The blue shaded rectangles are storage areas.
The used presses in the new design press shop are transfer presses (see figure 015).
figure 015: Transfer Presses
26
Material flow
Module 4:
Upper body
Module 1:
Lower body I
Module 5:
Assembly parts
Module 6:
Finish
Other
areas
Module 2:
Lower body II
Module 3:
Side parts
figure 015: Transfer Presses
figure 016: Layout of the Body Shop
7.1.2 Body Shop
27
In the automotive industry, a new body shop production line needs to be set up for almost
every new car model. Due to the relatively short product life cycles, the planning process
of body shops can almost be regarded as continuous and the investment in equipment
sometimes exceeds millions of Euros. Of course, the amount of money spent on
equipment mainly depends on the flexibility of the overall manufacturing system, but both
the efficiency of such planning processes and the quality of the final design are also
essential for a companys success. A main problem is to find an efficient layout fulfilling
the desired production rate and characterised by small buffer sizes and optimised cycle
times. Within the car body shop of an automotive plant, the body-in-white is assembled
from pre-formed pieces of sheet metal. Here, up to one hundred or even more welding
robots and various other Equipment are needed to complete the body-in-white before it is
conveyed to the next step of the production process.
In the early conceptual design, being among the first steps of the planning processes, the
shop is divided into 12 to 18 different blocks, each representing a welding area covering
numerous welding operations in different stations. To decouple the production process,
buffers are usually introduced between two subsequent blocks forming a structure of
blocks and buffers. Here, a converting topology can be observed, as the assemblies and
subassemblies coming from certain blocks meet in succeeding areas.
The new body shop is now ready to produce the car body of the required A00 car. 156
new robots throughout the body shop have increased the automation level up to 85%.
These robots achieve a shorter cycle time; compared with the predecessors, there is a
saving of over 50% in production time in body construction alone.
Reducing the amount of work to be done has also decreased production time. The number
of components has also been reduced. This has been achieved through the use of large-
format panels such as the one-piece side-wall frame.
The welding process used on the new A00 car is a hybrid of conventional laser- and arc-
welding processes, which exceeds the limits of current thermal joining processes with
regard to productivity, economy, seam quality and process reliability. The laser-MIG-
hybrid welding is used in the area of the lateral roof frame where welding a seam length
of 3.2m per vehicle is achieved. As well as the amount of hybrid welding seam, there are
also 2,200 punch rivets, 54m of MIG welding seams and 20m of laser welding seams on
every A00 body. The greater use of punch riveting on the model means that 500 spot
welds and 178 clinch connections that joined the body of the previous A00 together are
no longer required.
Another innovative joining technique is roller-type hemming. Here, rollers secured to a
robot arm bend the outer panel over the inner panel and create a powerful connection by
the application of a hem-bonding adhesive. The add-on components on the new A00
(doors, bonnet and tailgate) and the connection of the wheel arch with the side-panel
frame are processed in this way.
28
Inductive gelling is also in production first. In this process, the hem-bonding zones on the
add-on components are heated through targeted induction (electric field) that hardens the
hem-bonding adhesive. The component is thus stabilised and any slipping of the outer
panel to the inner panel is avoided.
figure 017: Welding robots in the Body Shop
29
7.2. Paint Shop
figure 018
The paint shop application is one of the most demanding aspects of automobile
manufacturing. Not only that the paint coating protects the body surface, it also enhances
visual appeal by adding colour and gloss a very important selling points. The technology
used must meet high expectations of quality and cost efficiency while remaining
environmentally responsible such as the use of waterborne primer, efficient management
of paint over spray, pioneering methods of recycling waste materials and energy
management including heat recovery.
The purpose of the paint shop can be described as to provide a great looking finish with
long term durability. One of the key drivers is the 12 years No Perforation Corrosion
guarantees that will be offered on all cars leaving the plant.
To meet this challenge, several key processes and material changes have to be
implemented compared to a conventional paint shop: The used steel itself must have a
thin zinc coating providing maximum protection against rust. The phosphate, ELPO dip
and primer surfacer coatings must be modified to provide increased corrosion protection.
Automation is added to apply under body sealer and cavity wax to complete the corrosion
protection package.
In order to meet the requirement of 2.000 vehicles a day, the paint shop design layout
must rely on standardised process control procedures to ensure consistent quality through
each stage. The degree of quality can be significantly increased through thorough testing
of incoming materials before usage. Further on, strict use of lint-free clothing and up to
date clean room practices contribute to a high quality finish. Figure 019 shows the paint
shop layout of the new plant.
30
figure 019: Layout of the Paint Shop
To use the provided space most efficient the paint shop consists out of one big line which
resembles a snake. The whole painting process consists out of 18 steps. Each step is
important for reaching the quality standards. A numeration of the processes is given
below; the description of the single step is specified in chapter 9.2 Process Flow Paint
Shop
1. Detergent Wash
2. Degrease
3. Rinse
4. Conditioning Rinse
5. Phosphate Treatment
6. Dip Rinse
7. Spray with demineralised water
8. Electrophoresis
9. Spray Rinse
10.Bake
11.Joint Sealing
12.Underseal
13.Stone Chip Primer
14.Primer Surface
15.Bake
16.Top Coat
17.Bake
18.Undersealing, Blackout, Wax Injection
1 2 3 4 5
6 7 8 9 10
11 12 13 14 15
16 17 18
31
After leaving the paint shop the car body is ready to get assembled. Therefore it enters
the final assembly line were it is processes by using a combination of traditional skills and
modern technology. In order to eliminate congestion caused by tools, material and
workforce and to assist by improving building quality and efficiency with an enhanced
working environment the new assembly plant uses the strategy of modularisation.
Defining modules is the new vital competitive weapon. The fundamental issue is the way
in which modules are defined, an issue which is not treated in the same way by all vehicle
manufacturers or indeed by all suppliers. Despite the prevalence of the term, there is no
simple or consistent definition of a module. It is possible to identify a range of approaches
to the definition of modules.
Subassemblies, for example cockpit or engine modules are assembled on mini-conveyors
away from the main body of the car and installed individually. Another possibility for the
car manufacturer is to outsource the assembly of the modules to one of their suppliers.
The supplier is in total responsible for the quality and for the just in time (JIT)
management of its modules. As part of the Just in time philosophy of material supply, a
reduction of handling and the elimination of costly material stocks can be achieved. This
off-line assembly technique allows for example the fully assembled instrument panel to be
electronically checked prior to installation, to ensure consistent component reliability.
To guarantee the production of 2.000 vehicles a day the assembly line includes seven
modules:
Cockpit
Rear Axles
Powertrain
Engine
Front End
Finish Module: Assemble last single parts to the car
Doors
The entire layout of the assembly shop and the single assembly steps are shown in
figure 020.
7.3. Final Assembly
32
figure 020: Assembly Shop Layout
The strategy which is used for the assembly line is called the Modularisation with the
door off system. This means that the last step of assembling the car is to bring together
the doors. That is very helpful in order to get easier access for the fitting of parts such as
the wiring harness, hard plastic trim items, seat belts, glass and headlining.
Module 1:
Engine
Module 3:
Rear Axles
Module 4:
Cockpit
Module 7:
Door (outsourced)
Module 6:
Finish
Module 5:
Frontend
Zp. 7
Other-
areas
Zp.
8
33
8. Logistic process
In this chapter the logistic process is described. This is mainly done by explanation and
calculation of the different formulas for: storage areas, transport containers and technical
equipment for transport and personnel.
Storage areas
To evaluate storage areas the following data must be compiled:
Units per day: 2000
Units per day is one of the initial requirements set to start the plant planning.
Container per vehicle: 10
Container per vehicle reflects the needed amount of containers to provide the parts
needed for the assembly of one vehicle. The total amount of 10 containers was
obtained by combining an estimated 5 large standard containers and 5 small tray
rack.
Container area: 1.2 m
Surface area of each container. The dimensions of a large standard container are
1.2x1.0x1.0 (lentgh x width x height).
Weight factor: 1.2 (stacking)
This factor reflects the type of stacking used to pile up the containers. Considering
the low number of derivatives it was decided to use direct piling of containers over
each others. Each pile representing a configuration of a particular module. This
strategy is also cheaper because it doesnt require shelves.
Move around factor: 1.2 (20%)
With this factor, space needed for employees to move the containers is considered.
Stack factor: 5
Takes into account the amount of containers which can be pile up on top of each
other.
This data is then used to calculate Storage Area (SR).
SR = 17 280 m
Steel coils
The steel needed to produce the body in white is brought to the plant by train.
Considering that a A00 class body weighs approximately 300 kg including the waste, the
total amount of steel processed in a day is 600 tons. This amount of steel is brought to
the plant by one train per day. And then a crane unloads the steel coils for production.
r StackFacto
Factor MoveAround or WeightFact rea ContainerA Vehicle Container Day Units
SR
) ( ) ( ) ( ) / ( ) / (
=
34
Lorries and unloading docks
Considering that 84 cars per hour are produced and that 5 Large Standard Containers (LSC)
are needed for each car, 420 containers per hour have to be transported to the assembly
line. For each day, 10 080 LSCs have to be delivered at the plant. A conventional lorry can
carry 52 LSCs, which results in 194 deliveries. A conventional lorry takes approximately 1
hour to unload. At least 9 loading docks are needed. A security margin of 2 is chosen to take
into account smaller vehicle. So, a minimum of 18 unloading docks must be present.
Fork-lift trucks
Each fork-lift truck manipulates a LSC for 13 minutes overall according to figure 021.
figure 021: (source: Dr. A. Klauke)
With 10 080 LSCs each day, the total amount of fork-lift truck manipulation time is 131 040 minutes.
Divided by 1440 minutes per day, it gives a result of 91 fork-lift trucks. Taking into account failures
and maintenance, a 100 fork-lift trucks are needed.
13,0 Total time
3,5 Clear out
3,5 Provision
2,5 Unloading
2,5 Loading
0,5 Loading lorry
0,5 Unloading lorry
Time per
LSC (min)
Activity
35
Technical equipment for personnel
Material placement is an important aspect of a good operation assembly plant and there
are many strategies that can be used to optimize it. Here are the strategies that will be
used in this future plant.
First, above each assembly station a board with critical information is set up. It should
mention which part is to be assembled at this station, the address of the station and the
container number to be supplied.
Marking on the floor at each station defines the precise place of each container. Rigs can
also be used to facilitate the access to the container by the worker on the assembly line.
For example, two containers can be fitted on a rotating rig, and when one container is
empty, the worker just rotate the rig to continue with an uninterrupted supply of parts.
This makes it easier for the fork-lift driver which has an easy access to the empty
container.
The simplest method to give an even supply of material at the workstation is called
Kanban. It works with Kanban cards on which is written the same information as the
station board describe previously. When a container is nearly empty, the assembly worker
removes the Kanban card from the container and places the card into the card box. The
lift-truck drivers empty the card box at a certain interval and delivers the material
described on each card using an optimized route. If used properly, this method is very
reliable.
Andon is the name of another method to be used to supply material. Instead of using
cards like Kanban, the assembly worker has to push a button when material reserve is
running low. At the storage area, an electronic board describes which container is needed
at which station. The fork-lift truck driver can than bring the needed container at the right
station.
Andon will be the main method used in the plant because it is straight forward and
simple. Another advantage is that it does not use any physical cards like Kanban which
can be lost and be a source of errors.
36
9. Process flow
In this chapter the process flow of the parts and material in the beginning and later on off
the body in white until the finished car is shown and explained.
The panels that structure the body of the vehicle are produced on 1,600 tonne tri-axis
transfer presses and high-speed coil cut lines. Employing the most advanced technology
available, the transfer press is a key part of the press shop.
figure 022
The material handling function is automated as much as possible: For at least 95% of the
steps involved. This is as much to improve quality as to boost productivity. Productivity is
further improved by minimizing die change time (to about 10 to 20 minutes) and by
maintaining a steady stroke rate; the reliability of the rate is as critical as the speed itself.
These almost fully automated presses can produce body panels at the same rate as four
conventional press lines. Capable of producing up to 1,000 parts per hour, it is used
primarily to press doors, side panels, tailgates and under-body panels. Smaller parts
purchased from outside sources.
The panels are formed from high quality zinc coated steels, offering a good perforation
protection, which is delivered by road and then cut to the required size on the high-speed
coil cut line. The steel is then loaded onto the transfer press, which can exert up to 3,200
tons of pressure and produce panels at an average rate of 15 per minute.
9.1.1. Process Flow Press Shop
9.1 Process Flow Body in White
37
9.1.2 Process Flow Body Shop
The body starts its journey as a dash-subassembly, produced on a fully robotised welding
facility. The dash is then built into a front car subassembly, and progresses through a
monorail system to the start of a framing process. This framing process assembles three
major subassemblies, front car, front floor and rear under body.
These subassemblies are produced in a similar manner as the dash. The completed under-
body progresses into a fully automated framing machine which welds together The under-
body and body-frame sides. The body-frame sides are built on two dedicated lines, one for
the left hand and one for the right hand frame sides. All welding operations are fully
automatic.
The body sides are picked up by a handling robot and placed onto an overhead conveyor
system, which transports them to the framing line. Before leaving the Framing line the
body shell is dimensionally checked by a precise measuring system. This ensures the
dimensional integrity of the body shell before proceeding to the next part of the process.
When the framing line and other robot welders have finished, the body shell receives
assemblies like front-end, roof, doors, wings, bonnet and tailgate which have been built
on separate line-side robotic facilities. The completed body, now in the state known as
body-in-white, is then inspected before being thoroughly cleaned prior to the painting
process.
All equipment in the body shop is linked to a management information system (MIS),
which constantly monitors each piece of equipment and produces statistics of builds
achieved, maintenance downtime and actual versus planned cycle times and
capacities.The body shops technology is also backed by a control system, which activates
when the plants main computer releases vehicle build data to the areas processor. The
memory banks are scanned for information about under-body and body-side assemblies.
At the start, the body in white enters the paint shop and is transferred to the continuous
conveyors that will carry it throughout its journey in the paint shop (see figure 023). The
first priority is to ensure its completely cleanliness. This happens during the Detergent
wash. This step is to get rid of metal particles, pressing oils, crayon marks and adhesives
from the body shop by using mild detergent added with solvent. This step is followed by
the Degrease where an alkali cleaner is used to get rid of metal oxides and the Rinse
which is a dip-spray process to clean of the alkali cleaner. The Conditioning Rinse is a full
dip process in acid etches to provide titanium phosphate nucleant crystals.
figure 023
9.2 Process Flow Paint Shop
38
Next the Body in White enters the phosphate treatment phase, a multistage series of acid
and alkali dips designed to complete the cleaning process and to produce a surface onto
which paint adheres more firmly. The body moves through a series of timed, prearranged
processes two degreasing dips, a spray and immersion rinse, and then the phosphate
dip itself. This process features an acidic bath, which deposits crystals onto the surface of
the body, forming an anticorrosive barrier, improving paint adhesion. After immersion in
the phosphate, the body shell is rinsed four times in the chromate rinse, which evens out
the crystalline coating and in the demineralised rinses the purest water is used. A closed
loop process continually recycles the water to filter out impurities.
After the phosphate treatment the body moves through another Rinse which contains
demineralised water to wash off residual acid. A followed spray with demineralised water
is used to keep the body wet.
The next process is called the Electrophoresis (e-coat) and it forces particles of primer,
previously dispersed in water, onto the body. The tanks are electrically charged. This
charge forces the particles onto the body during immersion. Another Rinse follows to
remove loose particles, and then the primed body is baked in an oven (175-180C for
approximately 30 min) where the primer particles bond together into a tough shell.
Once this stage is completed, the body passes into the sealer applications. Firstly the Joint
sealing is passed where a PVC and rubber based mastic is used to seal exposed joints.
Afterwards a PVC and rubber based paint is sprayed to the underhood of the body
(approximately 750m thick). The next stage is the Stone chip primer where a PU based
paint is sprayed to vulnerable areas like door edges, wheel arches and front ends
(approximately 25m thick).
The primer surface is the last step before the body is conditioned for the top coat. At this
stage a second primer is electrostatically sprayed to the surface (approximately 35-40m
thick). In this process, a high voltage system charges the atomised paint and this is
attracted to the earthed body. This ensures that most of the paint ends up on the vehicle,
not in the waste treatment facilities. To cure the body from the applications another
storage in an oven is necessary (160-170C for approximately 30min).
At last the body is ready for the top coat. After a further dust-down with enormous
rotating feather dusters, the body now enters Top Coat One. This is where the
computerised paint bells apply exactly the right amount of paint for the best finish. This is
then dried by a blower, to provide maximum reflective quality, and is followed by topcoat
of clear enamel to seal the shine. Solid colour finishes like white, red and black are also
painted automatically by the equipment. One further oven bake is necessary (130-135C
for approximately 20-30min).
Each painted vehicle is meticulously inspected under bright lights, to ensure no defects
are passed on to the customer. Finally, the painted bodies travel through the last process,
designed to augment the vehicles corrosion protection. A highly sophisticated machine
injects wax into numerous cavities in the under body structure. It then leaves the paint
shop to be trimmed and finished.
39
9.3 Process Flow Final Assembly
The first step is to remove the doors, in order to have easier access for the fitting of parts
such as the wiring harness, hard plastic trim items, seat belts, glass, headlining etc. As
the process flow is progressing, cockpit, carpets and seats are installed in the picture
mentioned as module 4.
After this the vehicle joins the final assembly conveyor for completion of the build
process. The vehicles are united with the major mechanical parts like the engine, axle,
wheels, brakes, suspension and exhaust system. This stage is monitored by a computer
ensuring the right mechanical components are fitted to the appropriate car. The
marriage begins with the body raised well above ground level, while small trucks
running on a floor mounted conveyor carry the engine, transmission and axles. The trucks
are equipped with jacks which raise the mechanical units to the points where they are
automatically bolted to the under body by an electronically controlled machine.
As the car moves on through the final assembly line, it meets the stage where the
frontend is mounted. At the stage of module 6 the car will be finished with assembly parts
like wheels and tyres. They will be mounted by a feeder conveyor with the appropriate
road wheels and tyres for the right car.
The vehicle then returns to a low-level slat conveyor where the finished doors are refitted.
The control system guarantees that the same doors that were originally removed are
returned to the same vehicle fully trimmed.
Fuelled and lubricated, its cooling system filled with water, the A00 car is finally capable of
moving under its own power as each vehicle passes through a series of mechanical and
electrical checks. Dynamic vehicle testing monitors mechanical specification and exhaust
emissions, while assembly line diagnostic links (ALDL) ensure engine management
systems, antitheft devices and alarms are functioning correctly.
A master computer for the new testing stations is connected to the factorys central
computer where data relating to the parts and accessories in each vehicle is stored. The
system not only detects faults, but also functions as an additional means of quality
control.
The car is then subjected to a water test audit, which checks the sealing around the
doors, tailgate and windows. Finally, the car is given one last polish before it is ready for
delivery. The fully tested vehicle is then passed onto the sales department and leaves the
factory for direct delivery into the dealer network or to ports for export to Europe and
overseas destinations and, of course, to the most important person in this processes the
customer.
40
10. Modularisation of product and production
Modularisation is a strategy that definitely will be applied in the year 2010. Modularisation
already exists for a couple of years now in the motor industry. It is being used in the
European and American motor industry as well as in the Japanese, but in different ways.
According to Dr.-Ing. W. Schreiber the benefits of modularisation are:
Improvement of manufacturability
Improvement of quality
Reduction and controlling of complexity
Reorganization of supplier relationships
The key to successful modularisation for automakers probably lies in close cooperation
and coordination between their development, production and purchasing functions, as well
as with their suppliers (Fujimoto, 2001).
At this moment modularity itself is a term that is used a lot, but also often used for
different things, so the term is not very clear. To begin with, modularisation should be
divided in three different forms:
1. Modularisation in product architecture / modularisation in design
2. Modularisation in production
3. Modularisation in inter-firm system
In this chapter the three forms of modularisation will be explained and described how
modularisation is implemented in our car factory.
Modularisation in inter-firm system
The Europeans and Americans have used modularisation for their inter-firm strategy, what
resulted in more and more outsourcing. There are three main reasons why Western
automakers have been expanding the scope of outsourcing. First, they want to take
advantage of the suppliers lower labour costs. Second, they can cut investment costs and
risk by giving more important responsibilities to the suppliers. Third, these moves toward
modularisation have also been accelerated by their policy of reducing the number of first-
tier suppliers (Fujimoto, 2001). Carmakers have been very sceptical with outsourcing
modules until now. They think that module suppliers are not capable of handling all
aspects of the module. They are also concerned that extensive outsourcing to a limited
number of suppliers may make the costs and the technology of components unknown to
themselves, reduce competitive pressure for suppliers, and thus weaken their own
negotiation power (Fujimoto, 2001). This has often led to a form of limited outsourcing
where the module suppliers is not completely responsible for the module. Limited
outsourcing probably only offers the limited advantage of cheap labour (Fujimoto, 2001).
In our car factory there will be high level modularisation with the inter-firm system.
Suppliers will have their own working area in the plant. Suppliers will be assembling their
modules right next to the assembly line so that the complete module immediately can be
assembled.
Modularisation in production
The Japanese motor industry used modularisation also but for the production. This means
that large assemblies (modules) are built before they are assembled in the car. When
modularisation in production is implemented plant size tend to be lower than in the past
(Camuffo).
41
The use of subassemblies has some disadvantages. A subassembly built from many
components is difficult to handle because of size and weight. Such a subassembly is also
difficult to be fitted perfectly onto other subassemblies or the body. Accuracy in
assembling work is difficult to achieve with subassemblies compare to that of smaller,
individual components (Fujimoto, 2001). Figure 024 shows a clear example from
modularisation in production. This is the way how it will take place in our factory as well.
The modules, as mentioned before, will be assembled right there next to the main
assembly line.
figure 024
Modularisation in design
In rough lines there are two ways to divide the product design. One of them is modul-
oriented design. In this case the definition for a module is: A module is an assembly
oriented supply unit, that is, from a logistical and manufacturing point of view,
reasonable. (Schreiber, 2004). Figure 025 shows the different modules for a Volkswagen-
vehicle.
Transition
Pre-assembly/Final Assembly
Transition
Pre-assembly/Final Assembly
Final Assembly Cockpit
Final Assembly Cockpit
Transition
Final Assembly Cockpit / Installation
Transition
Final Assembly Cockpit / Installation
Installation of Cockpit into Vehicle within core production
Installation of Cockpit into Vehicle within core production
Logistics Area
Logistics Area
Pre-Assembly
Instrumentation Panel
Pre-Assembly
Instrumentation Panel
42
figure 025
The second way is the system-oriented design. With this system the assembly of the parts
is divided in the functionality of the parts. For instances the brakes, all the parts
concerning the brake belong to the brake system. In case of modular design it could be
possible that the brake pedales belong to the cockpit module and the rearbrakes probably
would belong to the rear axle. In case of modular design parts whitch belong to the same
system can be designed separately. This of course enlarges the level of the risk that the
parts from the same system differ in quality level because of different design or different
assembly.For our product modularisation in design will be aplied as well. This means that
there are three main things that should be taken into consideration:
The architecture of the car, the designer of the product has to be aware of the fact
that the car will be assembled out of a number of modules.
The interfaces with the other modules, after assembly the different modules have to
function together as a car
The standerds used for the modules, for instance the quality.
Sun-Roof
Sun-Roof
Cockpit
Cockpit
Powertrain
Powertrain
Frontend
Frontend
Front- / Rear Axle
Front- / Rear Axle
Seats
Seats
Doors
Doors
Brakes
Brakes
Wheels
Wheels
43
11. Conclusion
In 2010, the profile of the customer will change. A larger portion fo the society will be
older which will have a direct influence on the characteristics prioritized when buying a
car. The buying behavior will also be greatly influenced by the groing reliance on the
internet.
The use of electrics and electronics will continue to grow in the future. The pedestrian
safety regulations will also have a major impact on technologies used in passenger cars.
For A00 class, reduced fuel consumption and exhaust emission is and will be a priority.
Our A00 class car will be bought with an over average degree of emotions. Its main
competitive advantage will be differentiation. It will be one of the longest in its class with
an average height. It is expected to be a market leader.
Our plant will use just in time and will be orchestrated around the communication centre.
It will be arranged in a star configuration. The level of mechanisation will be 70%
considering the output per day and the low level of variation.
The plant will have a total surface area of 150 500 m2, with 17 280 m2 being storage
area. 18 unloading docks will be distributed among the storages areas. 100 lift-truck will
be needed to unload and distribute material to the assembly line. Material placement will
use the Andon method.
Our plant will be highly modularised with suppliers having their own working area to
assemble the modules. The A00 class car will be designed modularly and the modules will
be major parts of the vehicle.
In the far future, like the computer industry, the automotive industry will become so
efficient and competitive that every player will have to specialize on a different aspect of
the product.
The OEM will remain the only direct link with the customer and as such, will specialize in
service (sales and after-sales). His other area of competence will be in module integration
and interactions. The OEM will supervise module suppliers and optimize how the modules
integrates and interacts with each other. The supervision role also implies that the OEM
gives the final approval for every module design supplied.
Of course, the computer industry has evolved a lot more rapidly because technology used
in computer is evolving faster and the product lifecycle is approximately at least five times
shorter (5 years for an automobile and 1 year for a computer). That is why a company
like Dell is already configured to make extensive use of modular strategy.
Because this plant is only six years further down the road, complete modularization
cannot be accomplished. This would represent massive development personnel layoffs at
the OEM which could lead to bad press and damaging of the brand image. Also, suppliers
are not completely ready yet to supply complete designed module on their own and would
need drastic readjustment immediately to respond to this new demand.
44
12. References
1*. http://automobile.karrierefuehrer.de/auto2010.pdf, 17.03.2004
2*. Valken, P. van: AUTO 2010, (http://members.aol.com/autofuture/next50.html),
updated 22.01.1996; 16.03.2004
3*. Kraus, W. Prof.: ergonomics, Handout MSc 2004, March 2004
4*. www.euroncap.com, 16.03.2004
5*. http://automobile.karrierefuehrer.de/auto2010.pdf , AUTO 2010
Eine Expertenbefragung zur Zukunft der Automobilindustrie, Jeltsch / Baier /
Wahrendorff, Accenture GmbH, Sulzbach / Taunus
6*. Lean Manufacturing
(Assignment Background to Methods to Improve Productivity)
by Dr. Werner Schreiber, Volkswagen AG, Wolsburg
7*. Koenig, Benjamin: Entwicklung eines Vorderwagenkonzepts zur Erfllung einer
geplanten Fugngerschutzrichtlinie im Bereich der Hfte HAW Hamburg /
AUDI AG Ingolstadt, 04.09.2003
8*. http://www.diebrennstoffzelle.de/h2projekte/mobil/index.shtml, 17.03.2004
9*. Ehmer, M.: Automobiltechnologie 2010, Stuttgart, 24.09.2002;
http://www.vector-informatik.com/kongress/VeCo_Vortrag04_Ehmer.pdf,
15.03.2004
10*. Requested information from Statistisches Bundesamt, Wiesbaden / Germany,
April 2003
11*. Klauke, Dr. Adolf: Logistics and material flow in the automotive engineering,
Handout MSc 2004, March 2004
12*. Vehicle Development
(Assignment Background to Working Methods in Vehicle Development)
by Holger Dietze, Volkswagen AG, Wolfsburg
13*. Logistics and Material Flow
(Assignment Background to Logistics and Material Flow)
by Dr. Adolf Klauke, Volkswagen AG, Wolfsburg
14*. Business of Manufacturing and Strategic Management
by K.T. Dawkins, Okt/99, University of Hertfordshire
15*. Financial Times Mini Report 09/2001
45
16* Fujimoto, T., Takeishi, A., (2001), Modularization in the Auto Industry: Interlinked
Multiple Hierarchies of Product, Production and Suppliers Systems, CIRJE-F-107
discussion paper, Tokyo University, March
17* Camuffo, A., Rolling Out a World Car: Globalization, Outsourcing and Modularity
in the Auto Industry, Ca Foscari Unversity of Venice, Italy
18* Haddleton, Dr. F. L., Steels for Automotive Body Applications, Handout
19* The Automotive Business Blog, http://www.just-auto.com, 14.03.2004
20* Plant Automation Technology, http://www.plantautomation-technology.com,
15.03.2004