product lifecycle management for automotive development focusing on supplier integration

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Product lifecycle management for automotive development focusing on supplier integration Dunbing Tang * , Xiaoming Qian College of Mechanical and Electrical Engineering, Nanjing University of Aeronautics & Astronautics, Nanjing 210016, PR China Available online 27 August 2007 Abstract The past years have seen growing investments in the area of product lifecycle management (PLM) by the automotive sector. Due to its complex development cycle, the automotive OEM has begun to adopt the supplier integration into its product development process. To respond to this new trend, the PLM system needs to evolve to support the collaboration and partnership management between the automotive OEM and associated suppliers. Regarding the depth of collaboration, the integration of supplier into OEM process chain has been defined in two ways, quasi-supplier integration and full supplier integration. To enable the success of supplier integration, one of the PLM tasks is to control the collaboration between the automotive OEM and its suppliers, through deciding on an appropriate supplier integration way. Meanwhile, aiming at reduction of the expenditure for partnership management and coordination, the automotive OEM tends to have direct connections with limited number of capable and effective suppliers, called system suppliers. Other suppliers, called sub-suppliers no longer directly communicate with the automotive OEM, but instead with a system supplier who works closer with the automotive OEM and deals with the task of sub-supplier management and coordination. To keep up with these tasks above, a PLM framework is established in a broader perspective in this paper, enabling supplier integration and partnership management in the automotive development process all along the life cycle. Finally, an automotive case study is presented to illustrate the PLM implementation procedure focusing on supplier integration. # 2007 Elsevier B.V. All rights reserved. Keywords: Product lifecycle management; Automotive development; Supplier integration; Partnership; Collaboration 1. Introduction The automotive industry is now under increasing pressure to maintain their places in the market. To improve their ability to innovate, get products to market faster, and reduce errors, the automotive manufacturers have been continuing to improve their development and management abilities through advances in computer-aided design (CAD), computer-aided process planning (CAPP), computer-assisted manufacturing (CAM), computer- aided engineering (CAE), concurrent engineering (CE), product data management (PDM), business process reengineering (BPR), etc. [1]. It is worthy of pointing out that the past years have seen growing investments in the area of product lifecycle management (PLM) by the automotive industries [2–5]. For example, companies from Boeing to GM to Proctor & Gamble are using PLM technology, making it a $16 billion industry in 2004. GM credits PLM initiatives with decreasing time to market from 48 to 18 months [6]. Automotive industry leaders such as Autoliv, Eaton, Honda, and Johnson Controls are driving success by using the MatrixONE solutions [7]. Regarding the importance of PLM to the automotive industry, Reale and Burkett make a conclusion which is ‘‘The Smarter the Car, the More Automakers Need PLM’’ [8]. PLM can be considered as a business strategy intended to link all information, people, and processes associated with a product from birth through end-of-life disposal [9]. Similar to other types of products, it is generally recognized that PLM for automotive development needs to span common product lifecycle phases from customer requirements definition, product design/simulation/analysis, production planning, man- ufacturing quality management, service and guaranty manage- ment, as well as recycling [10]. It is necessary to note that different PLM implementation patterns have been derived according to corresponding industry context and product characteristics [10]. The automotive industry tends to have structured process emphasizing configuration traceability and www.elsevier.com/locate/compind Computers in Industry 59 (2008) 288–295 * Corresponding author. E-mail address: [email protected] (D. Tang). 0166-3615/$ – see front matter # 2007 Elsevier B.V. All rights reserved. doi:10.1016/j.compind.2007.07.002

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Page 1: Product Lifecycle Management for Automotive Development Focusing on Supplier Integration

www.elsevier.com/locate/compind

Computers in Industry 59 (2008) 288–295

Product lifecycle management for automotive development

focusing on supplier integration

Dunbing Tang *, Xiaoming Qian

College of Mechanical and Electrical Engineering, Nanjing University of Aeronautics & Astronautics, Nanjing 210016, PR China

Available online 27 August 2007

Abstract

The past years have seen growing investments in the area of product lifecycle management (PLM) by the automotive sector. Due to its complex

development cycle, the automotive OEM has begun to adopt the supplier integration into its product development process. To respond to this new

trend, the PLM system needs to evolve to support the collaboration and partnership management between the automotive OEM and associated

suppliers. Regarding the depth of collaboration, the integration of supplier into OEM process chain has been defined in two ways, quasi-supplier

integration and full supplier integration. To enable the success of supplier integration, one of the PLM tasks is to control the collaboration between

the automotive OEM and its suppliers, through deciding on an appropriate supplier integration way. Meanwhile, aiming at reduction of the

expenditure for partnership management and coordination, the automotive OEM tends to have direct connections with limited number of capable

and effective suppliers, called system suppliers. Other suppliers, called sub-suppliers no longer directly communicate with the automotive OEM,

but instead with a system supplier who works closer with the automotive OEM and deals with the task of sub-supplier management and

coordination. To keep up with these tasks above, a PLM framework is established in a broader perspective in this paper, enabling supplier

integration and partnership management in the automotive development process all along the life cycle. Finally, an automotive case study is

presented to illustrate the PLM implementation procedure focusing on supplier integration.

# 2007 Elsevier B.V. All rights reserved.

Keywords: Product lifecycle management; Automotive development; Supplier integration; Partnership; Collaboration

1. Introduction

The automotive industry is now under increasing pressure to

maintain their places in the market. To improve their ability to

innovate, get products to market faster, and reduce errors, the

automotive manufacturers have been continuing to improve their

development and management abilities through advances in

computer-aided design (CAD), computer-aided process planning

(CAPP), computer-assisted manufacturing (CAM), computer-

aided engineering (CAE), concurrent engineering (CE), product

data management (PDM), business process reengineering

(BPR), etc. [1]. It is worthy of pointing out that the past years

have seen growing investments in the area of product lifecycle

management (PLM) by the automotive industries [2–5]. For

example, companies from Boeing to GM to Proctor & Gamble

are using PLM technology, making it a $16 billion industry in

* Corresponding author.

E-mail address: [email protected] (D. Tang).

0166-3615/$ – see front matter # 2007 Elsevier B.V. All rights reserved.

doi:10.1016/j.compind.2007.07.002

2004. GM credits PLM initiatives with decreasing time to market

from 48 to 18 months [6]. Automotive industry leaders such as

Autoliv, Eaton, Honda, and Johnson Controls are driving success

by using the MatrixONE solutions [7]. Regarding the importance

of PLM to the automotive industry, Reale and Burkett make a

conclusion which is ‘‘The Smarter the Car, the More Automakers

Need PLM’’ [8].

PLM can be considered as a business strategy intended to

link all information, people, and processes associated with a

product from birth through end-of-life disposal [9]. Similar to

other types of products, it is generally recognized that PLM for

automotive development needs to span common product

lifecycle phases from customer requirements definition,

product design/simulation/analysis, production planning, man-

ufacturing quality management, service and guaranty manage-

ment, as well as recycling [10]. It is necessary to note that

different PLM implementation patterns have been derived

according to corresponding industry context and product

characteristics [10]. The automotive industry tends to have

structured process emphasizing configuration traceability and

Page 2: Product Lifecycle Management for Automotive Development Focusing on Supplier Integration

Fig. 1. PLM tool enabling the supplier integration.

D. Tang, X. Qian / Computers in Industry 59 (2008) 288–295 289

accountability persistence, and the automotive product devel-

opment lifecycle is considered to follow the pattern of the

stage-gate model [2,11]. Meanwhile, automotive suppliers are

seeking new ways to strictly contain costs without sacrificing

innovative, feature-rich products, and platforms. With the

demands for faster innovation, higher quality, and increased

regulation, it becomes apparent that the winning automotive

suppliers will be those that leverage product innovations to

rapidly develop new platforms and win new programmes.

Therefore, for the automotive OEM industries, there is an

important new trend of automotive development which is

increasing supplier involvement or integration into the product

development process chain.

To respond to the trend of supplier integration for automotive

development, the evolution of PLM framework and tools is very

important and critical. Focusing on the supplier integration and

collaboration, the direction of PLM for automotive development

is investigated in this paper. The paper is organized as follows.

Section 2 explains the rational of supplier integration for

automotive development. As PLM is the front of new challenges

to enable successful supplier integration for automotive

development, it needs to be responsible of controlling the

collaboration between the automotive OEM and suppliers as well

as managing the partnership between them. Therefore, Section 3

presents two types of supplier integration (quasi-supplier

integration and full supplier integration) according to the

collaboration depth; Section 4 discusses the partnership interface

between the automotive OEM and suppliers. In Section 5, a PLM

framework to enable supplier integration for automotive

development is given. In Section 6, a case study is included.

The last section concludes the paper.

2. Supplier integration for automotive development

Due to its complex development cycle, the automotive

industry is seen to adopt the supplier integration into the

development process or outsource a higher percentage of the

product development to suppliers, such as Magna’s involvement

in Citreon, BMW, and DCX, Valeo and ArvinMeteritor in BMW

[2]. Actually, it has been found from contemporary research in

the fields of concurrent engineering and supply chain manage-

ment that significant benefits can be achieved if suppliers are

integrated/involved in new product development processes as

early as possible, which is called Early Supplier Involvement

(ESI) [12–15]. The rational is that suppliers frequently possess

the greater depth of domain expertise that can lead to

improvements in product design. The traditional OEM–supplier

relationship is characterized by a sequential, two-step interac-

tion. In the first step, the OEM gives clear product and

production requirements to the supplier. In the second step, the

supplier delivers the product or service to the OEM. Both parties

tend to optimize their own position instead of looking at the

cooperative gain, and this behaviour is not based on

complementary strengths. Supplier integration/involvement is

a new method for integrating supplier creativity and innova-

tiveness in the new product development process. Supplier

integration/involvement strives to create synergy through

mutually interacting deliverables and decisions between

OEM and supplier. Both sides take advantages of each other’s

capability to develop the product as well as to obtain feedback

from the other party to improve the product development.

To decrease development cycle as possible, the automotive

industry, acting as OEM, tries to focus its time and cost on core

competency areas such as styling, Body of White (BIW),

engine, and transmission, while shifts other portions of

auxiliary system development to suppliers, which can lead to

a win–win situation to both the automotive OEM and suppliers.

Furthermore, it has to be considered, that on the one hand the

more active the involvement of supplier into the automotive

development process chain is supposed to happen, the more

complex the coordination process will be.Theearly integration of

suppliers into the automotive development process chain does not

onlyleadtoanearlierstartofthesupplier’susualactivitiesbutalsoto

ashift inthefocusonactivitiestobeprocessed.Thiswillcausenew

challengesforthecollaborationbetweentheautomotiveOEMand

the supplier. In the current global manufacturing context, the

automotive OEMandassociated suppliersmaybegeographically

separated. Each geographical location focusing on certain area of

the automotive product lifecycle based on resource strengths and

costeffectiveness[2].Forexample,astheautomarketisexpanding

veryfastincurrentChina,somebigautomotivecompanies(suchas

VW, Ford, and GM) put the final assembly in China where

manpower is cost-effective, while keep the design and research

residing with the automotive OEMs. To facilitate supplier

integration/involvement in the automotive product development,

not only technology integration but also process and organization

integration are needed to be considered. The automotive OEM

needs to make the evolving product definition and development

process available to their suppliers, while protecting everyone’s

privatedataandprivateprocessandmanagingeveryone’srole.The

collaboration between the automotive OEM and the integrated

supplier can be defined at different levels according to the

collaboration depth and different types of partnership. To

practically manage the automotive product lifecycle, PLM is in

front of new challenges to meet the requirements above.

3. Collaboration between automotive OEM and

suppliers

As illustrated in Section 2, to realize supplier integration/

involvement, it is important for PLM to provide a collaboration

tool to enable appropriate collaboration between the auto-

motive OEM and its suppliers. Using the collaboration tool, the

supplier can conduct product design for OEM as an appropriate

role (see Fig. 1).

Page 3: Product Lifecycle Management for Automotive Development Focusing on Supplier Integration

Fig. 2. (a) Quasi-supplier integration and (b) full supplier integration.

D. Tang, X. Qian / Computers in Industry 59 (2008) 288–295290

Regarding the depth of collaboration, the supplier integra-

tion/involvement is in different ways. In this research, the

integration of supplier into OEM process chain can be defined

in two ways (see Fig. 2), quasi-supplier integration and full

supplier integration. The quasi-supplier integration means joint

development efforts with supplier interaction taking place only

at certain times. The development processes of both OEM and

supplier remain half-connected and essential know-how and

information stays with each party’s operation, either side only

takes advantage of the other side’s input and feedback. In the

full supplier integration way, OEM and supplier contribute and

share resources to a much larger extent. During the whole

product development life cycle, know-how and information get

exchanged freely. The boundaries between their development

processes begin to diminish.

To enable the success of the supplier integration, one of the

PLM tasks is to control the collaboration between the

automotive OEM and suppliers, through deciding the appro-

priate supplier integration way at the beginning of the product

development project. The decision needs to be refined such that

the degree of collaboration effort by both the automotive OEM

and suppliers is effectively and efficiently managed, and there

needs to be a clear designation and agreement of the

responsibilities for collaborative development between both

sides. In this research, the preferable way of supplier integration

is determined by two dimensions: the development capability

comparison between supplier and automotive OEM, and the

maturity degree of the product (from very old product to very

new product). Based on both dimensions, how to specify the

way of supplier integration is explained as follows.

Regarding the comparison of the development capability

between the supplier and automotive OEM, the required

development capabilities for a product development may be

distributed either one-sided or split between the supplier and

Fig. 3. Sketch of two types

automotiveOEM.One-sidedmeansthatthesupplierhassufficient

capabilities to develop a special type of product, namely, the

supplier’s capability is higher than the automotive OEM’s. For

example, the seat producers as suppliers to provide automotive

seats,havethegreaterdepthofknowledgeandexpertisewithinthis

givenproductdomainwhereastheautomotiveOEMisreallyaseat

system integrator. Thus, the seat development could be shifted to

suppliers. In this context, the quasi-supplier integration is more

preferable. Split means that both the automotive OEM and

associatedsuppliersshouldteamuptheirdevelopmentcapabilities

tomeet the needsof theproductdevelopment, andthe full supplier

integration is more likely to be selected.

The other factor affecting the way of supplier integration is

the maturity degree of product: from very old product to very

new product. The old product means that supplier or automotive

OEM already has enough experiences on the current product

development, and quasi-supplier integration is more likely to

occur in this case. In contrast, the newer product development

is, more cooperation between the automotive OEM and

suppliers is needed in order to be successful, thus follows

the full supplier integration.

It is noted that both factors above should be considered

together when deciding the way of supplier integration.

Combining both factors, Fig. 3 abstractly illustrates which type

of supplier integration is more preferable in different contexts.

For example, for the case A, as the developed product is very old,

quasi-supplier integration is selected. For the case B, although

the product to be developed is moderately new, full supplier

integration is selected because the capability of associate

supplier is not very strong. For the case C, quasi-supplier

integration is selected on account of the higher capability of

supplier compared with the automotive OEM. For the case D, the

full supplier integration is chosen because the product to be

developed is very new, and the tight cooperation between the

automotive OEM and associated suppliers is necessary.

4. Partnership interface between automotive OEM and

suppliers

Generally, the partnership interface between an automotive

OEM and associated suppliers is mainly modelled based on the

product’s Bill of Materials (BOM). The BOM-oriented

of supplier integration.

Page 4: Product Lifecycle Management for Automotive Development Focusing on Supplier Integration

Fig. 4. The 1-to-n partnership interface between an automotive OEM and

suppliers.

D. Tang, X. Qian / Computers in Industry 59 (2008) 288–295 291

partnership interface can be characterized by a 1-to-n-

relationship (see Fig. 4). This means in detail that, the

automotive OEM is responsible for selecting all suppliers and

directly allocating BOM-oriented development and production

orders to the selected suppliers. Investigations, however, reveal

some limitations of the BOM-oriented interface between the

OEM and suppliers. In this context, the burden of the OEM

increases with the number of suppliers, because the entire

responsibility and execution of supplier management and

coordination is thus all given to the OEM [16].

To overcome the problem above, there is a trend in the

automobile industry, which is the reduction of direct suppliers

to a small number of system specialists. By introducing this

strategy, Audi, for example, managed to reduce half of its direct

tooling suppliers within a period of four years [17]. To keep up

with this trend, the automotive OEM and associated suppliers

require a clear understanding of the form of partnership

between them.

Aiming at reduction of the number of direct suppliers and

hence lessening the expenditure for supplier management and

coordination, the traditional BOM-oriented partnership inter-

face between the automotive OEM and suppliers is shifting to a

new form (see Fig. 5). Some capable and effective suppliers,

called system suppliers, are chosen to have direct connections

to the automotive OEM, and other suppliers, called sub-

suppliers do no longer directly communicate with the

automotive OEM, but instead with an ‘‘intermediate’’ system

supplier who works closer with the automotive OEM and deals

with the task of sub-supplier management and coordination. For

example, the automotive OEM can subcontract the seat order to

Fig. 5. Multilevel partnership interface between the automotive OEM and

suppliers.

a system supplier, who is responsible for the seat system and

while assigns small seat parts (such as seat belt and seat fixing

bracket) to other sub-suppliers. The system supplier will be

responsible of considering the allocation of orders to other sub-

suppliers, and faced with the requirement to co-design relevant

parts of the product together with the automotive OEM. The

prerequisite for such partnership interface is the agreement on

the function of both types of suppliers during the order

processing phase.

5. PLM framework and tools enabling supplier

integration for automotive development

Compared with the traditional engineering information

management and product data management which support

static vaulting of design files and workflow for approval,

release, and change management, PLM addresses a more

holistic perspective that ties information management and

system integration with business strategy, thereby not only

facilitating the efficient use, dissemination, creation and change

of product related information, but also exploring system

effects across the full product realization process [18]. Today

the activities during automotive development programme are

mainly organized around a static representation of the product.

The engineering data related to this static representation is

made of engineering objects. To manage this data the

automotive industry is currently moving to commercial PLM

systems (i.e. MatrixOne, Enovia, Windchill). Some classical

tools (including engineering information management, process

management, configuration management, project management,

etc.) are commonly recognized to be incorporated into PLM

framework. These classical tools can used for (1) storage and

management of technical objects, configuration data, product

model, (2) definition and management of the development

process, and (3) management of the technical objects using

check-in/check-out mechanisms and maintaining data revision

and status.

To keep up with the trend of supplier integration for

automotive development, the PLM framework needs to be

established in a broader perspective. Besides common and

classical PLM functions, the global aim here is to develop and

validate an innovative PLM framework enabling suppliers

integration with appropriate partnership management all along

the automotive development life cycle. It is considered that the

adoption of supplier integration will lead to a significant

enhancement of the automotive development process. As

shown in Fig. 6, the supplier integration tools mainly include

supplier selection, partnership management between the

automotive OEM and suppliers, information (including

know-how) share between the automotive OEM and suppliers,

communication utility to enable the interaction between the

automotive OEM and suppliers, etc. These tools are easy to

understand except information share which is explained as

follows.

The information share is aimed at supporting suitable

supplier integration into the automotive OEM process, while

certain information issues such as the physical distribution of

Page 5: Product Lifecycle Management for Automotive Development Focusing on Supplier Integration

Fig. 6. PLM framework focusing on supplier integration for automotive development.

D. Tang, X. Qian / Computers in Industry 59 (2008) 288–295292

information, access rights to shared information, information

visibility levels, as well as partner information interoperability

bring new challenges to information management. The

information management is based on such facts: (1) the

partners (automotive OEMs or suppliers) are autonomous; (2)

not all partners play the same role and not all of them have the

same access level to the information stored in other partners.

In order to facilitate appropriate information share, the first

step is to analyze and classify the information depending on the

applications. The information hereby is categorized as follows:

(1) P

rivate information. This type of information is not shared

with other partners; it is intended to be accessed only for

local processing. For example, the know-how related to the

core competence of the automotive OEM is of this type.

(2) P

ublic information. The information accessible by both the

automotive OEM and associated suppliers.

(3) E

xchanging information. The information between the

automotive OEM and suppliers, such as the sending and

reception messages.

(4) I

nteroperable information. The information not only can be

remotely accessed, but also can be interoperated and

changed remotely by other partners. For example, through

full supplier integration, the product model designed by the

automotive OEM could be improved on-line by suppliers in

a co-design way.

Due to the information classification, four types of

information interaction are defined between the automotive

OEM and associated suppliers: browsing, exchanging, quasi-

interoperating, and interoperating (see Fig. 7).

(1) B

Fig. 7. Four types of information interaction between automotive OEM and

supplier.

rowsing. It is the lowest level of information interaction.

For instance, through Internet, general description of a

supplier in a way that advertises the company is

made accessible to the public including the automotive

OEM.

(2) E

xchanging. Through exchanging interaction, one side can

obtain acquaintance information from other side to serve

internal purpose. For example, an automotive OEM owns

the end product, and it can download the standard part (such

as bolt, nut) model from other outsourcing supplier

enterprises and uses it as its own part model to finish the

product development process.

(3) Q

uasi-interoperating. The quasi-interoperating interaction

means that the supplier can get some product related issues

from the automotive OEM. After changing or modifying

these issues, he/she can transmit them back to the

automotive OEM. Meanwhile, a message will be sent

concurrently as a notification. Quasi-interoperating is a

Page 6: Product Lifecycle Management for Automotive Development Focusing on Supplier Integration

D. Tang, X. Qian / Computers in Industry 59 (2008) 288–295 293

general information interaction way for quasi-supplier

integration.

(4) I

nteroperating. It is the highest level of information

interaction. Through interoperating interaction, the supplier

can directly access the required product model from the

automotive OEM and has the full right to operate it on-line.

This type of information interaction is for full supplier

integration.

6. Case study

Aiming at taking advantage of PLM, Nanjing-Fiat, an

automotive joint venture company in China, has begun to

implement its PLM system. For Nanjing-Fiat, most of the

automotive product design activities are conducted in Italy,

while the manufacture, assembly and vendition are performed

in China. Most of suppliers of Nanjing-Fiat are also located in

China for cost effectiveness. Focusing on the supplier

integration and collaboration, following main issues are

considered by Nanjing-Fiat for an adaptive PLM solution,

� A

lthough the automotive product design conducted in Italy is

advanced, it may not consider the capability of Chinese

suppliers as well as the aesthetic views of Chinese customers.

The PLM system needs to support the collaborative product

design by supplier integration and possible customer

involvement.

� T

o reduce the development cycle, the speed of automotive

product design becomes faster than before. Sometimes the

suppliers cannot keep up with the outsourcing step of OEM.

Therefore, it is necessary that some important suppliers (such

as system suppliers introduced before) join the product

design process chain at the early stage, and then they can

know their supplying tasks as early as possible.

� A

Fig. 8. NSK implementation procedure.

s the design and production are separated in different

countries, the PLM system is required to keep the consensus

between the design and manufacture sides.

A PLM system, called NSK (Nanjing-Fiat Solution Kit)

has been developed accordingly. It aims to provide a

common environment in which Nanjing-Fiat and suppliers

can collaborate, exchanging files and key information about

vehicles. Intense pricing and timing pressure from OEMs

demands that suppliers provide faster, more accurate

responses. NSK is particularly beneficial to enable the

supplier integration into the early OEM development

process. In NSK, a web-based tool can be used by both

the OEM and suppliers for the operation (including

uploading, browsing, exchanging, and downloading) of the

product requirements for specific vehicle systems. The

operational data that are transferred between the OEM and

the suppliers conforms to a structured format about the

design choices, specification elements and associated

definitions for the requirements of an automotive system.

In this way, the OEM and suppliers can have a shared

understand of the product requirements in terms of mutually

accepted associated language, and the automotive suppliers

can accurately take the requirements data for internal

dissemination in their respective organizations.

Nanjing-Fiat performs final assembly, and uses components

from suppliers. In situations where a final product is customized

for a region, assemblies may be reused to create a slightly

different end product. For example, similar models may have

different body styling, but the same chassis and drive train. The

design data must be readily accessible at all locations, and for

all suppliers, so that assemblies can be designed around those

common components. A change to a common component must

be communicated to all associated suppliers, to ensure that all

model-specific assemblies are changed accordingly. NSK can

handle the communication of changes, and facilitate design

reuse through distribution of design data throughout different

participating suppliers, with a management solution to support

reliable data transfer and integrity, providing security without

imposing obstacles and delays. Therefore, by leveraging NSK,

Nanjing-Fiat and suppliers can truly work across functional and

geographic boundaries, to improve efficiency, increase revenue

and reduce cost of goods sold.

� A

ctually, the NSK implementation process is complex, and a

step-by-step implementation methodology is adopted by

Nanjing-Fiat, which can be divided into different levels and

phases shown in Fig. 8.

� A

t the strategy level, the PLM strategy focusing on supplier

integration is decided.

� A

t the technique level, the tools to enable supplier integration

are chosen.

� A

t the operation level, the PLM system is going to work.

Corresponding to three levels, three phases are defined to

distinguish the NSK implementation contents,

� P

reparation phase: selection of suppliers after zooming

potential ones.

Page 7: Product Lifecycle Management for Automotive Development Focusing on Supplier Integration

D. Tang, X. Qian / Computers in Industry 59 (2008) 288–295294

� D

efinition phase: exploration of partnership between supplier

and OEM and decision of the type of supplier integration.

� E

xecution phase: PLM configuration, training, execution,

and continual improvements.

Following lessons to automotive industries are obtained

within the NSK implementation in Nanjing-Fiat:

� S

upplier integration into the OEM’ value will be the crucial

factor of automotive success.

� T

he collaboration situation cannot be realized by the

supplier’s effort alone. Instead, a reorientation on the side

of OEM is necessary.

� T

he earlier the integration of supplier into the OEM process

chain is supposed to happen, the more complex the

reorientation process will be.

� P

LM is distinguished methodology, which can be on the one

hand painful, but the on the other hand very helpful.

7. Conclusions

It is widely acknowledged that the automotive industry is

more than ever obliged to improve its development strategy

according to the increasing pressure of product innovation

and complexity, the emergence of new technology, the

changing market demands and increasing level of customer

awareness. The provision of appropriate product lifecycle

management in a complete and holistic manner has become

crucial for the automotive development. As the automotive

OEM has begun to adopt the supplier integration into the

development process, new challenges rise for PLM to support

the collaboration and partnership management between the

automotive OEM and the supplier. Regarding the depth of

collaboration, the integration of supplier into OEM process

chain has defined in two ways, quasi-supplier integration and

full supplier integration. To enable the success of the supplier

integration, one of the PLM tasks is to control the

collaboration between automotive OEM and supplier,

through deciding the appropriate supplier integration way.

To reduce expenditures for partnership management and

coordination, some capable and effective suppliers, called

system suppliers, are suggested to be chosen to have direct

connections to the automotive OEM. Other suppliers, called

sub-suppliers do no longer directly communicate with the

automotive OEM, but instead are under the management and

coordination of system supplier. To keep up with the trends of

current automotive development, a PLM framework is

established in a broader perspective. The PLM implementa-

tion practice has shown the PLM is not a simple undertaking,

and it entails multitude of personnel, techniques, and

organization.

Acknowledgement

This research is partly supported by the National Natural

Science Foundation of China (NSFC) Research Grant under

project no. 50505017.

References

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engineering technique in the automotive industry, Journal of Engineering

Design 17 (2) (2006) 143–157.

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Prof. Dunbing Tang earned his PhD from Nanjing

University of Science and Technology (NUST) in

March 2000. Then he spent 2 years on his post-

doctoral research at Tsinghua University of Beijing

and City University of Hong Kong. Funded by the

renowned Alexander von Humboldt Foundation, he

conducted his research in Aachen University (RWTH

Aachen, Germany) as an Alexander von Humboldt

research scientist from July 2002 to February 2004.

Thereafter he moved to Cranfield University (UK) as

a research fellow. Offered with a full-time professorship, Prof. Tang joined

Nanjing University of Aeronautics and Astronautics in December 2005. Up to

now, Prof. Tang has conducted several research grants as a principal investigator

Page 8: Product Lifecycle Management for Automotive Development Focusing on Supplier Integration

D. Tang, X. Qian / Computers in Industry 59 (2008) 288–295 295

(PI) or co-PI, and he has published over 70 academic papers. His research

interests include engineering design, knowledge-based systems, enterprise

integration, manufacturing system modeling and simulation, etc. His research

outcome can be found in international high-quality academic journals such as

International Journal of Production Research, International Journal of Com-

puter Integrated Manufacturing, IMechE Part B-Journal of Engineering Man-

ufacture, Computers & Industrial Engineering, International Journal of

Advanced Manufacturing Technology, Computers in Industry, Journal of

Intelligent Manufacturing, Robotics & Computer Integrated Manufacturing,

Concurrent Engineering – Research & Applications.

Dr. Xiaoming Qian is a lecturer at the Nanjing

University of Aeronautics & Astronautics. He

received his PhD degree in Mechanical and Electrical

Engineering in 2004. His research projects aim at

developing methods and tools to assist the activities

of project managers and architects who design com-

plex products. He has published more than 10 papers

for conferences and journals.