automotive supply industry

41
K K Automotive Supply Industry Customer Quality ‘Going the Extra Mile’

Upload: avari

Post on 06-Jan-2016

40 views

Category:

Documents


0 download

DESCRIPTION

Automotive Supply Industry. Customer Quality ‘Going the Extra Mile’. Knibb Gormezano. KGP is a specialist automotive consultancy focussing on: Analysis and forecasting of technology based markets Investment appraisal and commercial due diligence Lean approaches to all business processes. - PowerPoint PPT Presentation

TRANSCRIPT

Page 1: Automotive Supply Industry

K

K

Automotive Supply Industry

Customer Quality‘Going the Extra Mile’

Page 2: Automotive Supply Industry

K

K

Knibb Gormezano

• KGP is a specialist automotive consultancy focussing on:– Analysis and forecasting of

technology based markets– Investment appraisal and

commercial due diligence– Lean approaches to all business

processes

Page 3: Automotive Supply Industry

K

K

KGP operates World-wideRecent Projects in:• Malaysia• Indonesia• Philippines• China• India• Russia• N. America• Korea• W.& E.Europe

Page 4: Automotive Supply Industry

K

K

Multi-Segment

• OE• Aftermarket• Components• Distribution• Logistics• Design• Manufacture

Page 5: Automotive Supply Industry

K

K

This Subject

Two Relevant Briefing papers:

The Use of Customer Needs Assessment and Satisfaction Benchmarking in the Automotive Supply Industry

Dysfunctional New Product Development – the nightmare that is a daily problem for many companies

Page 6: Automotive Supply Industry

K

K

Global Drivers

Page 7: Automotive Supply Industry

K

K

Key Industry Drivers

• Emissions control

• Fuel economy (CO2)

• Safety

Technology Forcing}

Page 8: Automotive Supply Industry

K

K

Key Industry Drivers

• Emissions control

• Fuel economy (CO2)

• Safety

• Price/cost downs• Globalisation • Global Growth

Technology Forcing}

} Competition & Economics

Page 9: Automotive Supply Industry

K

K

World Vehicle Sales

1995 % 2015 % % Ch

DCs 38 74 50 53 31

LDCs 14 26 42 47 217

World 52 100 92 100 81

Source: Pemberton Associates

Page 10: Automotive Supply Industry

K

K

World Vehicle Production

• Production shift will be more pronounced than sales

• Levels of VM vertical integration declining as more is outsourced

• Global sourcing trend continues• Outsourcing growth includes specialist

engineering and scientific services (FEA, CFD, combustion research & development etc.)

Page 11: Automotive Supply Industry

K

K

Patterns of world investment (95-15)

21%

6%0%43%

11%

12%7%

N AMERICA

W EUROPE

J AP/KOREA

ASIA(exc.J ap/Kor.)

E EUROPE

Central and SouthAmerica

ROW (Africa andOceania)

Page 12: Automotive Supply Industry

K

K

Products & Technologies

Page 13: Automotive Supply Industry

K

K

Product & Sector Summary

UP• Feature content• Safety &

environmental standards

• Performance & Fuel efficiency

• Inherent cost• Global sourcing• Number of model

variants (off the same platform)

Page 14: Automotive Supply Industry

K

K

Product & Sector Summary

UP• Feature content• Safety &

environmental standards

• Performance & Fuel efficiency

• Inherent cost• Global sourcing• Number of model

variants (off the same platform)

DOWN• Real cost• Lead times (3 day

car)• Number of OEM

customers• Number of Tier One

suppliers• Number of base

platforms• Volumes per model

variant

Page 15: Automotive Supply Industry

K

K

Key Changes

• CO2 Agreement– Diesels– GDI / HCCI– Light weight materials– Transmission developments– Mild & Full Hybrids– Regenerative Braking

Page 16: Automotive Supply Industry

K

K

Key Changes

• Energy demands– 42 volt– Integrated starter / alternator– High power density devices– Electronic power management

Page 17: Automotive Supply Industry

K

K

Key Changes

• ELV directive– 1st stage 2007 (85%)

• Hazardous waste designation• De-pollution stipulations• Licensed premises

– 2nd stage 2015 (95%)• 2m+ tonnes of shredder residue with

no current technology available

Page 18: Automotive Supply Industry

K

K

Key ChangesMeeting road death targets• Passive systems will peak• Active Systems take up the future

challenge– Adaptive Cruise Control– Brake-by-wire– Steer-by-wire– Electronic Stability Systems– Lane Guidance– Driver Alertness

Page 19: Automotive Supply Industry

K

K

Aftermarket

Page 20: Automotive Supply Industry

K

K

• Service intervals and parts life increasing

• Increased sophistication– Means raising knowledge standards

• Independent sector growing – helped by Block Exemption changes

• Off-shore supplies increasing• Users shopping around

Page 21: Automotive Supply Industry

K

K

What are the Implications for Supply Chains

Page 22: Automotive Supply Industry

K

K

Implications for Supply Chains

• The traditional competitive race will be unsustainable.

• Supplier selection and development based solely on QCD factors is not enough.

• Supplier partnerships needs to become a reality, not a slogan.

• A shift from supplier development to supply chain development is required.

Page 23: Automotive Supply Industry

K

K

QCD Focus Shortcomings

• QCD are the fundamental and most basic quantifications of customer requirements.

• QCD focus undervalues many important elements of the supplier’s service.

• QCD focus, together with competitive tendering can distort customer – supplier relationships.

• It can lead to simplistic attitudes on collaboration, performance and waste.

Page 24: Automotive Supply Industry

K

K

Successive Quality Initiatives

- Are they working?Quality Circles – TQM – Taguchi/DOE - Kaizen – Six

Sigma…..• You have probably been through many of these

waves of activity.• Maybe you can point to successful projects.But• How many of you can say that you have been

really successful in cascading the discipline into your suppliers?

• Can you honestly say that they have have made your company a leader not just a survivor?

Page 25: Automotive Supply Industry

K

K

Our Experience Indicates• Most automotive suppliers focus

improvement activities on manufacturing.

• Kaizen based improvement programmes predominate in-house and at suppliers.

• Programmes such as Accelerate and SMMT IF et al have been beneficial, but there is a growing realisation that they do not go far enough.

Page 26: Automotive Supply Industry

K

K

Our Experience Indicates• Most automotive system and component

suppliers focus improvement activities on manufacturing operations.

• Kaizen based improvement programmes predominate in-house and at suppliers.

• Programmes such as Accelerate and SMMT IF et al have been beneficial, but there is a growing realisation that they are narrow in focus, and do not go far enough.

• Not enough attention is given to the customer.

Page 27: Automotive Supply Industry

K

K

So how well do we listen to customers

Page 28: Automotive Supply Industry

K

K

Customer Satisfaction – How do you know?

• In a survey conducted by KGP nearly half of all suppliers questioned had not used any form of systematic customer satisfaction measurement (CSM) in the last 3 years

• However, 80% of users found the process useful and rewarding

Page 29: Automotive Supply Industry

K

K

• Only one company in our survey used customer satisfaction techniques to gain competitor comparisons or benchmark performance

Page 30: Automotive Supply Industry

K

K

Aspects of C SProduct Dimensions Interface

Dimensions

Page 31: Automotive Supply Industry

K

K

Aspects of C SProduct Dimensions Interface DimensionsPerformance CredibilityFeatures CompetenceReliability SecurityConformity AccessDurability CommunicationServiceability CourtesyAesthetics ReliabilityQuality ResponsivenessCost / Value Understanding

the Customer

Page 32: Automotive Supply Industry

K

K

Aspects of C SProduct Dimensions Interface DimensionsPerformance CredibilityFeatures CompetenceReliability SecurityConformity AccessDurability CommunicationServiceability CourtesyAesthetics ReliabilityQuality ResponsivenessCost / Value Understanding

the Customer

Page 33: Automotive Supply Industry

K

K

J D Power CS reports• Their research is with the end

customer not your customer.• Customers are asked very

detailed questions about the performance of systems within the cars they own. The answers are linked to known suppliers for those parts.

• This is a growing business.

Page 34: Automotive Supply Industry

K

K

The (Customer Driven) Lean Business Approach

Page 35: Automotive Supply Industry

K

K

What Sort of Model are We Talking About?

• Policy Deployment• Cross-Functional Teams• Lean Operating Systems• Supply Chain Integration

World Class companies are known to use four key approaches:

Page 36: Automotive Supply Industry

K

K

Lean is a more powerful and lasting solution than Kaizen and

other quality based tools

Quality Initiatives as applied it in the West, have been mostly:

• Manufacturing operations centred• Carried out at middle and lower functional

levelsLean Thinking ensures that:• Senior Management have a vital role in the

process• There is a recognition of the big problem of

waste between functions and companies• There are practical methodologies and tools to

use on non-manufacturing problems

Page 37: Automotive Supply Industry

K

K

Lean Supply Chain Approach • Deployment of Strategy & Policy

throughout the Supply Chain• Creating a Common Sense of

Purpose• Strengthening Trust &

Relationships• Developing & Learning Together• Eliminating Waste Between &

Inside Companies

Page 38: Automotive Supply Industry

K

K

The Ideal Business Model

The traditional watchmaker – personally responsible for:– Securing customer commissions– Design – Development– Production– Installation– After care

Page 39: Automotive Supply Industry

K

K

The Ideal Business Model

The traditional watchmaker – personally responsible for:– Securing customer commissions– Design – Development– Production– Installation– After care

Get close to mirroring

that with a seamless

process

Page 40: Automotive Supply Industry

K

K

A Decade On - Where Might We Be (Europe)?

• Competitiveness thru higher value added products– Raising the game on technology– Higher proportion of NPD effort

• Lean business second nature– Cross-functional effectiveness– Waste removal freaks

• At all levels!

Page 41: Automotive Supply Industry

K

K

The Survivors

• Extreme dedication to customer needs– ‘Total’ Cost & Quality – throughout

the process map– Emphasis on the relationship factors

• Awareness of and proactive attitude towards J D Power style supplier satisfaction analysis