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© Kemény Boehme & Company GmbH | 1. July 2019 | Recalls in the Automotive Industry 2018 11

Recalls in the Automotive Industry 2018

Competitive Comparison and Technical

Causes

KBC Recall Report 2018

Munich | Mai 2019



Why is professional handling of recalls becoming more and more important?

A negative impact on net profit

% of

turnover

Gewährleistung GesamtRückrufe

~2%

An increasing number of recalls

Significant increase in warranty

costs due to recall/technical

campaigns

“Rule of thumb”: Recall costs -

50% = Increase in return on sales

+10

Changes at customers and employees

0

200

400

600

800

1.000

1.200

2017

Number of recalls

USA

1997

Significant increase in the number

of recalls (e.g., the US: 10% per

annum)

The number of affected vehicles

also exploded due to mega-events

(airbag, diesel)

Increase in legal regulations

Increase in safety and

environmentally relevant

regulations

For example, the environment:

RDE, noise level, air-conditioning,

switch indicators, and many more

For example, safety: Pedestrian

safety, electronics, glazing,

warning signals, and many more

Changes at customers: Loss of

confidence (Dieselgate, airbag),

better information (Internet),

higher networking (social media)

Changes with employees: Fear of

personal liability (consent order,

product safety and liability), higher

public interest

IMP

AC

TC

AU

SE

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References: We help our customers with a wide range of questions relating to recallsP

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Error avoidance for the next product

generation

Root-cause analysis for recalls

Eradication of technical causes through cross-company

definition of standards

Transparency of quality performance within the supply

chain

Cost-effective processing of recall campaigns

Cost-reducing measures for any repairs

Mechanisms for limiting the quantity to be exchanged

Optimisation of decision-making processes

Support in handling official requirements

Procedure mechanisms for eDiscoveries

Minimisation of penalty payments within the scope of Consent

Orders

Early detection of recalls

Using the information from competitors' recalls

Early detection of recalls based on the criticality of field cases

KBC

Experience

We would be happy to discuss our measures with you!

We have been advising our customers in quality and warranty cost reduction for longer than 10 years.

Together we develop reactive and preventive measures to reduce the impact of recalls.


Monthly analysis of all data records from the five data sources mentioned above.

Adjustment (passenger cars only), comparison of data sources and derivation of technical error characteristics.

Provision of a history for the year 2018.

The objective and procedure of this analysis


The prevention of recalls

by utilising existing sources of information

OB

JE

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PR

OC

ED

UR

E &

QU

AN

TIT

Y S

TR

UC

TU

RE

8548 data records

929 recalls

Transport Canada (Canada)ADAC (Germany)

DVSA (UK)Rapex (Europe)

NHTSA (USA)

750 different error characteristics


The available data can be used to learn from mistakes (of others).

Hypothesis: The causes of recalls repeat themselves. If the causes in the value-adding processes are addressed consistently,

recalls can be significantly reduced in the medium term.

We have already piloted the outlined method in two companies.

Possible approaches for using the available information

Recalls in the Automotive Industry 2018S

TE

P 1

Quick risk analysis

If necessary, enhancement with additional information (concept, suppliers, production technologies, etc.)

Distribution to internal experts (Development, Procurement and Production)

Implementation of a risk assessment for own products

ST

EP

2 Sustainable

elimination in the

entire value chain

Check whether all options have been exhausted to avoid the recall in the future

Development: Integration in FMEA, adaptation of specifications (components, complete vehicle), definition of

development standards, supplementation of test specifications, etc.

Suppliers: Supplement P- and D-FMEA, extension of control plan, definition of special features, etc.

Production: Integration in work instructions, tightening of Q-Gates,

optimisation of test plans, etc.

Overlapping: Establishment of individual part traceability,

supplement audit catalogue, etc.


The proportion of German premium OEMs in the evaluated worldwide recalls averages around 28 percent.

In comparison, Mercedes-Benz has the highest number of recalls with 122 - followed by VW with 60 and BMW with 41.

We will be happy to provide you with a complete overview of recalls in 2018.


0

5

10

15

20

08/18 11/1802/18 10/1801/18 04/18 07/1805/18 06/18 12/1809/1803/18

14 16 14 13 21 27 19 24 29 29 29 34

54 4661 55

62 46

28

5367 60

73 55

0

20

40

60

80

100

120

02/1801/18 03/18

89

04/18 07/18

89

05/18 06/18 08/18 09/18 10/18

6862

7568

8373

12/18

47

77

96

11/18

102

Recalls: Number of analysed recalls

Rest

Premium OEMs

PR

EM

IUM

WO

RLD

WID

E

122

41

60

32

14

660

269


Around 2/3 of the error characteristics were caused at the OEM.

One focus is on assembly and the OEM's concepts.


Error characteristics: Cause of recalls1)

OE

MS

UP

PL

IER

S

238

OEM

512

Supplier

112

28

16

82

Assembly errors

Production/manufacturing defects

Design errors

Software errors/Programming

Suppliers

69

183

90

170

0 50 100 150 200

Software errors/Programming

Number of error characteristics

Production/manufacturing defects

Design errors

Assembly errors

OEM

1) Assigned by KBC, causes partly with room for interpretation


CENTRALE E/E-

SYSTEMS

COCKPIT AND

INTERIOR

TRANSMISSIONS

LIGHTS AND SIGNALS

ASSISTANCE

SYSTEMS

AXLES AND WHEEL

SUSPENSIONS


Error characteristics: Tightened module structureM

OD

ULE

ST

RU

CT

UR

E

ENGINE / FUEL

SUPPLY

SEATS

AND SEATBELTS

ELECTRICAL DRIVES

INFORMATION AND

COMMUNICATION

All vehicle components can be assigned to the module structure.

The 750 error characteristics from 2018 were assigned to the 15 modules.

EXTERIORDOORS AND PANES STEERING SYSTEM

AIRBAG SYSTEMS

WHEELS AND BRAKE

SYSTEMS


Module 01/18 02/18 03/18 04/18 05/18 06/18 07/18 08/18 09/18 10/18 11/18 12/18 Total

Engine/Fuel supply 11 13 14 13 12 8 8 9 16 20 19 15 158

Axles and wheel suspension 2 1 1 2 7 4 6 9 7 8 3 3 53

Seats and seatbelts 6 5 6 8 6 9 4 8 8 7 10 4 81

Airbag systems 4 7 6 5 8 8 2 4 7 5 11 9 76

Doors and panes 1 3 2 4 9 6 3 2 2 5 6 9 52

Wheels and brake systems 3 5 7 5 6 4 3 14 9 7 7 6 76

Exterior 5 1 3 3 4 4 3 3 3 4 1 4 38

Central E/E systems 2 0 0 0 4 4 2 2 2 5 2 2 25

Other 1 3 2 1 1 3 2 0 0 4 5 3 25

Transmissions 0 1 3 4 3 2 4 5 6 2 2 2 34

Steering system 1 2 4 2 2 2 2 3 4 2 5 4 33

Electrical drives 0 0 2 0 0 2 0 1 3 1 1 0 10

Lights and signals 0 0 1 3 3 0 0 0 2 2 3 2 16

Assistance systems 2 4 2 1 1 3 1 4 8 4 4 5 39

Cockpit and interior 1 2 2 2 1 0 2 3 6 3 1 3 26

Information and communication 2 0 2 0 0 0 0 0 0 1 3 0 8

TOTAL 41 47 57 53 67 59 42 67 83 80 83 71 750


Error characteristics: Number acc. to modules

The TOP 3 of the modules affected by recalls in 2018 are assigned to Drives and Interior.

These are mostly safety-relevant volumes.

The focus in the Engine/Fuel supply module is on faulty installation, software problems and leaking lines.

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Maximilian Klee

Senior Partner

Kemény Boehme & Company GmbH

Lyonel-Feininger-Str. 28, 80807 Munich

Tel.: +49 (0) 151 14 84 72 07

E-Mail: [email protected]

www.kbc-consultants.com

Larissa Fahrmeier

Senior Consultant

Kemény Boehme & Company GmbH

Lyonel-Feininger-Str. 28, 80807 Munich

Tel.: +49 (0) 151 14 84 72 03

E-Mail: [email protected]

www.kbc-consultants.com

Your contacts


Quality

We leave no room for errors.

Product Development

We address problems at their source.

Procurement & Production

We deliver optimal results.

After Sales

We keep you on the road to success.

Project management & Digitalisation

We are with you from the idea to

implementation.

Management:

Stefan Kemény, Felix Feuerbach, Georg Huber,

Maximilian Klee

Sectors and Approach:

Sectoral focus on Automotive and Technology, from

the OEM to the supplier

Technical & business know-how paired with a hands-

on mentality

A holistic consulting approach - from strategy to

operational implementation

Awards:


PROJECT MANAGEMENT & DIGITALISATIONComprehensive control and creation of transparency in complex programmes and projects. Your

partners for digital positioning, strategy and transformation.

Kemény Boehme and Company GmbH (KBC)

Our expertise is divided into five focal consulting points.

PRODUCT DEVELOPMENTSupport and expansion of the product development process from the idea to its implementation

based on sound technical and methodological know-how.

AFTER SALESAnalysis and further development of the after-sales strategy, organisation and processes

to increase customer satisfaction and sales at optimised costs.

QUALITYDesigning and continuously improving reactive and

preventive quality work at organisational, process and product level.

PROCUREMENT & PRODUCTIONStrengthening and securing supply throughout the entire product life cycle along the value chain.

recalls in the automotive industry 2018 competitive ... · kemény boehme and company gmbh (kbc)...

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