Groupement pour l Amélioration des Liaisons dans l Industrie Automobile

Transcription

1 a member of Odette International Groupement pour l Amélioration des Liaisons dans l Industrie Automobile

2 MEMBERS OF GALIA BOARD OF DIRECTORS Names Companies Christophe BEGIS François BRUNET Jacky COUSIN Dominique DE BENGY Jean DE WAILLY Didier FEGLY Annick GENTES-KRUCH Michel GODIN Christophe GRAS Didier HUET Antoine MOGLIA Richard PIMIENTA Jean-Luc SALAUD Didier VIGOUROUX Jean-Claude VINCENT VERNET / Director of Information Systems RIETER AUTOMOTIVE FRANCE / Logistics Manager GALIA / Director of GALIA RENAULT / Manager of the Department Process Organisation MICHELIN / OE Account Executive SACRED / Chairman and Managing Director PSA PEUGEOT CITROËN / Manager B2B (Vice-Chairman of GALIA) FAURECIA / Manager of Purchase Information System ARCELOR AUTO / Manager of the Information Department VALEO MANAGEMENT SERVICES / Branch Supply Chain & Logistics Dire c t o r GLAVERBEL FRANCE / EDI Manager RENAULT / Director B2B HUTCHINSON / Director of Group Strategy MAGNETI MARELLI MOTO PROPULSION / Managing Director PSA PEUGEOT CITROËN / Director, Supplier Resources and Logistics (Chairman of GALIA)

3 CONTENTS ORGANISATION OF GALIA page 2 EDITORIAL page 3 INTRODUCTION OF GALIA page 4 MISSIONS AREAS COVERED FUNCTIONING/OPERATING MODE GALIA S RELATIONSHIPS page 5 SERVICES PROVIDED BY GALIA page 6 GALIA/Odette s ACTIVITIES page 8 THE LOGISTICS DOMAIN THE ENGINEERING DOMAIN THE B2B DOMAIN PROJECT A.L.F.A. page 36 THE ENX NETWORK page 42 MEMBERS OF GALIA page 47 1

4 ORGANISATION OF GALIA Chairman Director Jean-Claude Vincent Jacky Cousin L og i s t i c s E n g i n e e r i n g B 2 B E N X Chairman Chairman Chairman Chairman Bruno Schweitzer Alain Badoux Jean-Claude Fichera Michel Le Méro Project Manager Project Manager Project Manager Project Manager Thierry Koscielniak Alexandre Loire Dominic Walton Nadine Buisson-Chavot 2

5 EDITORIAL Jean-Claude VINCENT It is a pleasure to introduce this report on GALIA s activities in The aim of the report is to keep you informed on the work being done by GALIA (nationally and at European level in Odette) in each of our domains (Logistics, Engineering, B2B and ENX), in addition to the A.L.F.A. project. Jean-Claude Vincent Director, Supplier Resources and Logistics (PSA) Chairman of GALIA In 2005, a great deal of work was done in the Logistics domain. European companies (vehicle manufacturers, parts suppliers) have been involved in developing standards, as well as in implementing them. The Board of GALIA has decided to welcome carri e rs and logistics service prov i d e rs as members. The Engineering domain has seen the creation of a number of g l o b a l recommendations under the aegis of SASIG (USA, J a p a n, Fra n c e, G e r m a n y, S w e d e n ). It is imperative that the group of participants in studies should be widened and their work made more widely known in order to encoura ge implementation. Several standards have been validated in the B2B domain. In 2006 we shall be entering an implementation phase and a period in which new topics will be selected and prioritised has been a major year for the initialisation of the A.L.F.A. project (implementation of ICT [Information and c o m munication Te ch n o l ogy] in second-tier automotive SMEs). We have put in place national and re g i o n a l organisations, mobilised project promoters in the regions, along with the funding bodies and have started up the pilot programme in the first 150 firms. In what is an extremely competitive context in European automotive markets, the GALIA team is focusing all its efforts on the development and more especially the deployment, of standards and processes that can make a direct contribution to improving the efficiency and competitiveness of its members. I wish you pleasant reading and remind you that we are here to listen to your concerns and to serve you. Jean-Claude V i n c e n t Chairman of GALIA N B : A very large number of requests from abroad testifying to the interest taken in our work have led us to translate this document into English. 3

6 INTRODUCTION OF GALIA GALIA is a French organisation governed by the French law of July 1st, It was created in 1984 because of an urgent need for improvements in exchanges between the partners in the automotive industry. GALIA counts approximately 400 member companies to date. industrial companies (car makers, equipment specialists and other suppliers) service provider companies (information, logistics providers, carriers) organisations The missions of GALIA are varied GALIA develops recommendations for the product and information exchange between partners of the automotive industry. GALIA provides its members with recommendations. GALIA promotes implementation by the automotive industry companies of solutions resulting from these recommendations. GALIA contributes in the production of tools in conformity with the specifications of these recommendations. GALIA informs the potential users of these tools. GALIA re p resents and stands up for its members interests close to the Fre n c h, E u ropean and international organisations working in the same areas and on the same topics. Areas covered Logistics Engineering Electronic trade (B2B) ENX (European network, private and secure) Functioning/Operating modes The Board of Directors is composed of 14 members (2 from PSA, 2 from RENAULT, 10 suppliers). The Board elects the Chairman, the Vice-Chairman and the Treasurer. The Executive Committee is composed of the Director and the Project Managers of each domain. Logistics, Engineering, B2B committees Each committee consists of the Chairman, one Project Manager of GALIA and re p re s e n t a t i ves of the member companies. ENX users group consists of the Chairman, one Project Manager of GALIA and representatives of member companies. The Director of ENX participates in this committee. 4

7 GALIA S RELATIONSHIPS In France G A L I A d evelops relationships with many technical federations and committees part i c u l a r ly : FIEV (Suppliers industry Federation for vehicles), CCFA (Automotive French supplier committee), CLIFA (Automotive supplier connection committee) composed of the FIEV, SNCP, GPA, FIM, FIEEC, French foundry workers, CGI (Wholesale and international business), numerous institutional bodies within the scope of the A.L.F.A. Programme such as DIGITIP, Regional Councils, Chambers of Commerce, the DRIRE, CETIM, CTDEC, CTN, PN2E, PERFORMANCE 2010, PERFO EST, PPRA, CGS (École des Mines), AUTOMOTIVE AREA for the Central Region, PÔLE D'EXCELLENCE AUTOMOBILE of CHAMPAGNE-ARDENNES, FIEEC. In Europe GALIA is the French member of the European body Odette International composed of eight members: GALIA in France,VDA in Germany,ANFAC in Spain, SMMT in England, Odette Sweden, Odette Czech Republic, Odette Benelux, Odette Romania. In the World GALIA takes part in global projects with the AIAG (American) and JAMA/JAPIA (Japanese) organisations. 5

8 SERVICES PROVIDED BY GALIA Documentation Approximately 150 recommendations have been drawn up since 1984.The members of GALIA can consult all documentation on our site ( Information Le site web The website Two possibilities are offered: a public and a private area. Only members of GALIA can enter the private area. Each month, more than people consult our site. The monthly GALIA Newsletter covers a main topic, a testimony and current news.a specific area has been created for A.L.F.A. Conférence and forums GALIA organises an annual conference in France as well as regional forums in collaboration with local partners. GALIA s Webinar Every two months a seminar by Web conference is organised.the aim is to use Internet tools to connect a speaker with an audience of several hundred in their office. Service provider Club GALIA organises at least one meeting a year to inform the solution provider members of GALIA of the current and future projects. Collaboration area The solution provider members have an area allocated to them exclusively to present their products to the whole Frenchspeaking automotive community. Training courses The training courses programme is as follows: Introduction to technical electronic exchanges in the automotive industry. EDIFACT. Standards used by car-makers (Messages, DN, Labels).Training courses in French and in English. Introduction to XML. Engineering training course in development. Contact: [email protected] LKPI.Training courses in French and in English. Global EVALOG. Global EVALOG practical training course in French and in English. Contact: [email protected] 6

9 SERVICES PROVIDED BY GALIA Homologation of solutions Web EDI makes it possible to exchange data corresponding to particular functional needs (logistics and accounting) with part n e r s, through forms accessible on a computer and an Internet connection. By the end of December 2005, GALIA had approved 5 applications in conformity with the Odette e-forms V2 recommendation (three other applications are being developed). Support GALIA supports active member companies in implementing all or part of their logistics or EDI project. The Project Managers intervene as advisers. Other functions Micheline Sinseau Manager s Assistant Membership, Sales of Standards Catherine Langevin Assistant for Logistics Engineering, ENX T h i e r r y Ko s c i e l n i a k Communications Manager Sylvie Jean B2B Assistant, Communications (publications, events, website) Catherine Petit Administration Accounting Nadine Buisson-Chavot Informations Systems Alexandre Loire A.L.F.A. project Manager-National 7

10 THE LOGISTICS DOMAIN A WORD FROM THE CHAIR OF THE GALIA LOGISTICS COMMITTEE: Bruno Schweitzer Chairman T h i e rry Ko s c i e l n i a k Project Manager As you will see in this activity report, 2005 was a rich and fruitful year for the logistics domain at both European and national levels.this success can also be explained by the determination in Odette to carry forward projects of global importance, taking into account the increasingly close cooperation binding it to its sister associations: AIAG in North America and JAMA-JAPIA in Japan. Among the important points at European level, we can point to the following: - The gradual integration of the Eastern European Countries into the Odette commu n i t y (first practical illustration of this: the setting up of Odette Romania). - A radically overhauled and strengthened Logistics Functional Committee. We now find in its membership the following: 8 vehicle manufacturers (AUDI/VW, RENAULT,VOLVO CARS,VOLVO TRUCKS and SKODA, plus two new representatives, BMW and DACIA Group), 6 automotive suppliers (ROBERT BOSCH, LEAR, TRÈVES and three new representatives, SIEMENS VDO, ZF and VALEO), 8 national organisations (GALIA,VDA, Odette Czech Republic, SMMT, Odette Spain, Odette Benelux, Odette Sweden and Odette Romania), plus Odette International.This level of mobilisation has made it possible to define a number of recommendations at both European and international levels and several projects are on the point of starting up. GALIA has drawn on the dynamic created at European level to redefine and relaunch Logistics activities at national level. - An expanded Logistics Committee with three new representatives (MICHELIN, HEULIEZ and ROBERT BOSCH) joining two French vehicle manufacturers and ten automotive suppliers (AB INDUSTRIE, ARCELOR, FAURECIA, GLAVERBEL, MAGNETI MARELLI, MECAPLAST, MGI COUTIER, RIETER, SNOP,TRÈVES). - A mission more focused on promotion, training and the deployment of the standards developed at European or global level. I hope that you will find this document useful. Bruno Schweitzer Chairman The new recommendations LOGISTICS PERFORMANCE INDICATORS:THE Odette LKPI RECOMMENDATION The European recommendation entitled Logistics Key Performance Indicators (LKPI) lays down six logistics performance indicators common to suppliers and their customers in the parts supply phase or in serial production. LKPI no. 1 = Presence and quality of AVIEXP LKPI no. 2 = Service Ratio LKPI no. 3 = VMI Indicator LKPI no. 4 = Packing and labelling conformity LKPI no. 5 = Logistics incident track record LKPI no. 6 = Measurement of performance for these three processes: - reception of delivery requests - processing logistics incidents - cooperation on logistics projects 8

11 THE LOGISTICS DOMAIN The new recommendations SUPPLIER DELIVERY MANAGEMENT: GLOBAL CMI MIN/MAX RECOMMENDATION This global recommendation entitled C o l l a b o r a t i ve Managed Inventory (CMI) describes a method of managing supply in which the customer commits to sending to the supplier in real time (using EDI) his stocking forecasts and levels of inventory in order to allow the supplier to draw up a proposal for inventory replenishment in accordance with rules previously laid down between the two parties. The proposal thus drawn up is considered to be binding. STANDARDISATION OF PACKING: LABEL HOLDERS This national standard, c u rre n t ly in the process of finalisation, lays down specifications for GALIA approved label holders.two designs are described, each for a diffe re n t application (metal label holder: for plastic trays / plastic label holder: for metal trays). LABEL STANDARD FOR C40 CARTONS Functional requirements linked to the development of PSA and RENAULT logistics ( Ex-Works and Alternative Logistics projects) made it necessary to supplement Logistics label ET19 with a new label sized 210mm by 40mm specifically intended for C40 carton packing in which the free space between the bottom of the slip-over lid and the bottom of the carton body is only 44mm deep. C40 carton New C40 carton label Therefore, to provide information on this topic, a new recommendation is available under the Standards heading in the Members section of the GALIA website - See under Logistics label for C40 cartons (ET19-1). CHANGES IN DELJIT / CALDEL AND AVIEXP MESSAGES Functional requirements linked to the development of PSA and RENAULT logistics have made it necessary to supplement the range of data exchanged with suppliers, especially regarding EDI transmissions relating to forecasts, firm calls for supply and despatch notices. The decision was taken to seek to minimise the impact on suppliers and for this reason to make changes to the messages as currently used rather than migrating to totally new messages (GLOBAL messages for example). 9

12 THE LOGISTICS DOMAIN The deployment of Logistics recommendations REUSABLE CONTAINER MANAGEMENT: AN EXAMPLE OF ITS IMPLEMENTATION THE PVS PROJECT (PVS = PACKAGING VISIBILITY SYSTEM) The PVS project (PVS = Packaging Visibility System) is the new tool for Reusable Container Management as developed and used by RENAULT and NISSAN Europe. Through the sharing of information on stock levels and flows between the manager of the container stock and user sites, this tool makes it possible to optimise the use of packaging and to make empty packaging av a i l a b l e. The system operates on a basis similar to VMI (Vendor Managed Inventory). All user sites declare their packaging flows, both incoming and outgoing.these declarations enable inventory levels and stock in transit to be updated in real time.the figures can be used to define forecasts for consumption and minimum/maximum inventory levels to be granted to each site for each type of packaging it uses and the container store manager triggers replenishments to ensure that the inve n t o ry available on site fluctuates constantly between the predefined extreme values. This mode of operation is based on a GALIA recommendation (GEDV4) published in The SNOP site in Gacé (Orne, France) manu f a c t u res structural parts in metal which it delivers to all R E N AU LT factories located in Western Europe and Turkey. As a user of standard packaging types (90% metal packaging and 10% plastic trays) this site uses PVS to manage its flows of reusable containers to and from RENAULT. Following several months of use, Ms Blandine Lebonvallet, logistics manager for the site and Ms Nathalie Livet Pires, packaging manager, tell us about their own personal experience on this. The Experience of the SNOP plant in Gacé Ms Lebonvallet, how did your site experience the arrival of PVS? Ms Blandine Lebonvallet, logistics manager (left) Ms Nathalie Livet Pires, packaging manager (right) BL: Internally, we experienced the arrival of PVS as an extension of the deployment of the supplier s portal. SNOP, both centrally and at the manufacturing sites, has always wanted RENAULT to designate us as a pilot site and as a driver for deployment of new tools made available on the RENAULT portal. For example, we were very quick to adopt tools such as IPPRF to do effective work on our logistics performance and on increasing customer satisfaction, which RENAULT measures and publishes on its website. The arrival of PVS as a packaging management tool available on the portal confirmed our view that the supplier portal promotes progress in communication and dialogue with the customer. In addition, the development of specific trade sections - logistics in our own case - makes it easier to deploy new projects on our site.we now have a single entry point for access to the information and tools we need. Ms Livet Pires, what was your experience as packaging manager of the arrival of PVS? NLP: As far as I am concerned, my point of view of this deployment is very focused on the operational level. From early 2005, we received several newsletters indicating that a new tool would be arriving for the management of RENAULT containers. As time went on, this communication became more detailed up to the point when direct contact was established with the deployment team during the month of May. It was then that we really began to work with PVS.With the guidance of the RENAULT deployment team, I then trained myself using the self-training module available on the portal. After this, my contact at RENAULT checked that I had correctly understood the project by asking me a few questions. At the same time he provided me with some extra information to facilitate my task and to help me start work with PVS more easily. So you then began to make full use of the tool? NLP: We really began to exploit it in June, but we started by using it in parallel with the old system based on an exchange of forms under Excel. It was only after the summer holiday period that RENAULT authorised our site to use PVS alone.we then demonstrated that we were capable of using the system effectively and reliably. 10

13 THE LOGISTICS DOMAIN Have you seen an improvement in packaging container flows since you have been using PVS? NLP: There is undeniably an improvement. The immediate benefit of PVS is the sharing of information in real time. We are sure that RENAULT and ourselves have the same view of our inventory levels and container flows.this does not mean however that all problems of supply have completely disappeared as of the present time but we are confident of the future.the fact that we can track and monitor all flows will highlight any dysfunction and let us see who is at fault.targeted action plans should make it possible to resolve such problems swiftly. And what do you think, Ms Lebonvallet? BL: My opinion is the same. Nevertheless, I would like to add to Nathalie s answer. Currently, PVS is not yet operating in the target mode, by which I mean that all flow declarations must still be entered manually in the system.the process provides in principle for the direct entry of our AVIEXP data into the tool, thus freeing us of the need to type in all our despatches of full containers.this manual process takes time and stops us working totally in real time mode.this is because there is a slight time lag before Nathalie can type the delivery documents into PVS after receiving them from our despatch department. But the goal is clear. We are working on it, checking that our AVIEXP messages are compliant and can be interpreted by PVS and we know that RENAULT is preparing to deploy this functionality. In your opinion, what are the positive benefits of implementation of this tool? BL: Without doubt, RENAULT S operational assistance. Nathalie has been guided and assisted throughout the entire deployment phase. Specifically, she has always been able to contact the RENAULT team easily to arrive at a quick solution for problems she has encountered. Additionally, the initial results are already being felt. Now that we have got a taste of PVS, we would not want to move back to the previous system. Do you feel there are lessons to be learned from the implementation of PVS? BL: Over and above the positive benefits I have mentioned, I think that the communication on the project and the roll-out of the tool could be more broadly based.all actors in the logistics chain are affected by packaging issues. I would want everybody (line re p l e n i s h m e n t, b u ye rs, p roject manage rs, e t c. ) to understand how this tool works and how to use it, or at least how to extract information from it.this would help us communicate more effectively by using concrete examples.we could in this way illustrate what we have to say and explain our situation when we come up against a packaging problem. It would undoubtedly be useful to communicate more widely about this resource. And a last word from the packaging manager? NLP: I would sum up our point of view on PVS by saying that its deployment went well on our site even if, as we have said, some things still need to be done.we are now waiting for the next phase, which will enable us to declare our full container flows using our AVIEXP messages. Next, because we also supply the NISSAN plant in Sunderland, we are expecting to deploy PVS for this flow as well.this will be a genuine benefit for us to be able to use processes common to both customers.we have already been contacted by Nissan on this point and all we need now is the green light from them to start work. In conclusion, from an operational standpoint, all the issues have not been resolved but the contribution made by PVS is undeniably valuable and the progress is noticeable.what we need to do now is to use this new resource effectively to ensure that container management is optimised. Remarks in conversation with Thierry Koscielniak LOGISTICS EVALUATION: FEEDBACK ON THE SURVEY CONDUCTED ON THE USE OF GLOBAL MMOG / LE BENCHMARK CRITERIA FOLLOWING TRAINING Concerned to find out what the Global MMOG / LE training courses have led to, at both staff and enterprise leve l s, GALIA drafted a questionnaire intended for the manufacturers who attended the various sessions. The 20 questions were sent to all those concerned with the aim of obtaining a maximum number of returns by the end of April Of the 210 individuals that were questioned, 40% responded.a summary of their responses is available on the GALIA website. 11

14 THE LOGISTICS DOMAIN IDENTIFICATION: APPLICATION OF THE Odette OTL3 RECOMMENDATION CAPITALISING ON GOOD PRACTICE: To accompany the deployment of the new ETI 9 / OTL 3 label, GALIA, in conjunction with RENAULT and PSA, organised a feedback exercise involving the suppliers who have already implemented it.the aim was to identify good supplier practice in order to reduce implementation costs and to facilitate the label s deployment.a summary of these activities is available on the GALIA website. MONITORING DEPLOYMENT: In 2005, GALIA set out to monitor the deployment of the new label. (See the comments by Jean-Christophe Ruck - R E NAU LT P i l o t for Identification - and Siham Cherfa - PSA Pilot for Identifi c a t i o n ). Implementing the Odette OTL3 recommendation at RENAU LT and PSA Jean-Christophe Ruck Siham Cherfa TK: Can you give us a quick overview of the deployment of the OTL3 standard and some indications on prospects for 2006 in this area? RENAULT: L3P logistics (high-performance workstation logistics) requires use of small packaging containers.the ETI1/ OTL1 label placed on these small containers tends to fold in the presence of moisture. If this happens it no longer plays its proper role in guiding flows and identifying the containers. The ETI9 / OTL3 label resolves these problems. To date, 50 supplier sites are making daily deliveries to our plants using the OTL3 label. Deployment is under way with numerous other suppliers. Our goal is to use OTL3 on all our L3P flows in all our plants and this should be achieved in Distribution of trays and pallets becomes significantly easier, which is a substantial step forward for us. PSA: In 2005, the GALIA ETI9 label became PSA PEUGEOT CITROEN S target identification resource for logistics. The operational deployment of flows is conditional on a validation stage called EDIFACT V2. At this stage, which is centralised for the series production and spare parts sectors, the despatching site must check that it is in a position to implement all functional modes used by PSA PEUGEOT CITROEN, complying with all technical standards (messages, labels, delivery notes). This development is linked to the deployment of the alternative logistics project (APOLO) which aims to optimise inventory management functions by using information contained in the transmitted order and reproduced on the GALIA labels of delivered supply replenishment containers (UC or UM), as well as meeting an operational requirement identified for low-profile labels because in the presence of moisture ETI1 will bend, making the label impossible to read for logistics personnel. All despatching sites at all PSA PEUGEOT CITROEN suppliers are involved in the switch to ETI9.To cut a long story short, deployment is in progress and is to be staged essentially over 2005 and It is being driven by PSA PEUGEOT CITROEN to reflect project priorities. By the end of October nearly 1,000 despatching sites will have been consulted and about a third are now approved. In 2006, we will be meeting with 1,000 more sites. TK: How is this label perceived by your suppliers? RENAULT: Our suppliers are fully in phase with this approach.the impact on their information systems (label format) and their despatch systems (printout devices, change management) require major input from them.today I can only say I am pleased to see how committed they are. PSA: The deployment of this label required a major level of involvement from our suppliers.they have demonstrated both commitment and imagination in adapting their technical resources and organisational structures to this new label. Additional information from GALIA: Capitalising on good practice following the feedback exercise conducted by GALIA / PSA / RENAULT with the suppliers who had implemented the new label made it possible to identify a whole raft of good ideas capable of making the production of this label easier. Remarks in conversation with Thierry Koscielniak 12

15 THE LOGISTICS DOMAIN WEB EDI: FEEDBACK ON E FORMS V2 APPROVAL Web EDI makes it possible to exchange data on specific functional requirements (logistical and accounts-related) with partners using forms that can be accessed on a PC display plus Internet connection. In 2005, GALIA organised an approval process based on the Odette E forms V2 recommendation, approving five applications: Covisint,TX2,Ténor Conseil, Planexware (an Argentinian company) and GXS. CAPACITY DEMAND MANAGEMENT: APPLYING THE Odette DCP RECOMMENDATION Feedback on the pilot trial conducted in 2005 between RENAULT, PSA, ROBERT BOSCH, PILKINGTON and FAURECIA. Starting out from the recommendation, RENAULT and PSA decided to conduct a multi-customer trial on adjustment of capacity to meet demand otherwise known as DCP, or Demand Capacity Planning.This recommendation is aimed at formalising the processes to be put in place in order to establish improved collaboration between suppliers and vehicle manufacturers and especially to anticipate and resolve capacity issues. The first conclusions to be drawn from this study are the following: Participants confirmed the advantages of the Odette DCP recommendation. The recommendation applies to all supplier parts and capacity. There was a consensus among participating vehicle manufacturers and suppliers on the need for notification of part requirements over a despatch date-based rolling 12-month period, with a monthly review. There was agreement on staged deployment of the recommendation. The first stage involves the provision to suppliers of a notification of requirement as defined above with feedback from the suppliers via the usual channels on capacity issues they are unable to resolve internally. Subsequent stages must allow suppliers to provide feedback on capacity characteristics to their customers and begin collaborative work. Suppliers confirmed the necessity of ensuring that all their customers take account of what is expected in terms of expression of requirements. Changes in part references must be taken into account for the expression of requirements as early as possible after their validation. There is a need to develop the recommendation further to include elements validated on the expected characteristics of the expression of the vehicle manufacturer s production requirement. There is a need to succeed in bringing into the process other manufacturers and especially other suppliers. There is a need for communication with software publishers to ensure that they take account of the specifications of the recommendation and propose to vehicle manufacturers and parts suppliers the tools capable of meeting the needs of the recommendation. A joint RENAULT/PSA presentation of the pilot trial was given by Olivier Sancier (PSA) and Frédéric Ferréol (RENAULT) at the Odette conference held on November in Paris in order to communicate on the conclusions and to find new partners for actions to be carried forward at all levels: vehicle manufacturers, suppliers and software publishers. 13

16 THE LOGISTICS DOMAIN Reactions to the DCP pilot trial Olivier Sancier is the Industrial Resources Manager in PSA s Supplier Resources and Logistics Division. He offers us here his first impressions on the pilot trial conducted in collaboration with RENAULT around the DCP (Demand Capacity Planning) recommendation. T K :What importance do you attach in your specific context to the implementation of GALIA/Odette standards? Olivier Sancier O S: GALIA/Odette standards are already widely used in PSA where EDI messages are concerned ( E D I F AC T ), in addition to systematic requests for use by suppliers of Global EVALOG to assess their l ogistics performance and the implementation of the new OTL3 label. The Odette Demand Capacity Planning s t a n d a rd is a logical extension of the exch a n ges of information between vehicle manufa c t u re rs and their suppliers.this standard makes it possible to conduct collaborative exch a n ges not only between vehicle manufa c t u re rs and suppliers but also between the suppliers themselves. It will improve management of capacity constraints by anticipating fluctuations in demand over a ro l l i n g p e riod of one ye a r. TK: Coming back to one of these standards the DCP recommendation what was the reason for the pilot trial? OS:The re c o m m e n d a t i o n s hori zon is the medium term and the long term (one to three ye a rs) with vehicle manufa c t u re rs capable of shari n g the same resources on suppliers sites. RENAULT had already undertaken a study of single-customer type which yielded a positive result but which did not address the multicustomer context. The sharing of resources entails a level of data confidentiality and standardisation that needs to be looked at if the recommendation is to be credible. A reading of the recommendation and the conclusions reached by RENAULT fed into our reflection on this and encouraged us to raise some questions.vehicle manufacturers already exchange data with suppliers but what data do we know how to exchange? Do we have data based around common structures? Do we know how to meet the demands of DCP at the furthest horizon (3 years)? Will suppliers find benefits in this approach? Will they be able to provide the right information? TK:What are the key factors for success in this kind of operation? OS: A study of this kind required an open attitude and commitment to the recommendation. If the study was to be representative, it was necessary to have a panel of suppliers with very different production philosophies.when all these elements were brought together, it was necessary to look at the study leaving IT resources out of account in order to find answers and focuses that would allow us to validate the recommendation.the software allowing data exchange is an end result and must not shape the concept itself if the right conclusions are to be drawn. Lastly, we had to define one or more constraints shared by customers.that is what we succeeded in putting together with the project team comprising RENAULT, BOSCH, PILKINGTON AND FAURECIA. TK:What benefits do you expect to gain from the DCP standard? OS:The first benefit is obviously the exchange of information between customer and supplier.the situation will move from a mode in which volumes of data are transmitted from time to time using tools such as the supplier portals used by vehicle manufacturers with the supplier being expected to react to the data transmitted, in the direction of a collaborative system in which exchanges are regular and structured. Since the concept is of multi-customer type, the supplier will benefit from a standardisation of the data.this means not only better anticipation of information but also less time lost for our activities. TK: How is this recommendation perceived by suppliers? OS: Initially, the concept is of interest to suppliers constantly wishing to have more and more information to enable improved definition of their industrial processes.the idea of volumes of data communicated by all their customers to a horizon of 12 consecutive months under a common standard avoids the need for them to consolidate the volumes of data sent by his customers and allows him to monitor those volumes with much greater interactivity.the supplier can also duplicate this relationship with his customer in dealings with his own suppliers. Remarks in conversation with Thierry Koscielniak 14

17 THE LOGISTICS DOMAIN Subjects in progress THE LAUNCH OF FOUR Odette PRIORITY PROJECTS IN LOGISTICS The Board of Odette has validated the project details for four Odette priority subjects in the logistics domain as chosen by the European Logistics managers present at the meeting on 18/1/2004. In most cases, these projects started up in September Logistics performance indicators (Carriers & Logistics Service Providers) This project is intended to define common logistics performance indicators (for Carriers & Logistics Service Providers) for the European industry as a whole.a working group was started in November 2005.A recommendation on this is to be published in late Use of standards in Emerging Markets (China) This deployment project is aimed at the promotion of the use of GALIA/Odette standards in the Logistics field in China on the basis of concrete applications. The utmost priority will be assigned to information flows [implementation of a solution that is simple and quick to put into operation (Web EDI solution with GALIA E-forms V2 approval)]. Use of standards in Emerging Markets (Eastern Europe) This deployment project has the primary aim of promoting the use of GALIA/Odette standards in Logistics in Eastern European countries (logistics evaluation, the new OTL3 label, EDI messages (EDIFACT),Web EDI based on a solution with GALIA E-forms V2 approval).this project is also intended to enable these countries to become members of the Odette community in order to allow them to take an active part in the work done by this organisation (Romania has in fact given its agreement to membership of Odette from the beginning of 2006). Definition of Logistics training This project is intended to enable the definition, as a first phase, of a training programme focused on logistics perfo r m a n c e indicators for the entire European industry.a working group was started in September 2005.The first training courses in this field are planned for the first quarter of REVISION OF GLOBAL MMOG / LE BENCHMARK CRITERIA After two years use, Odette and AIAG have decided to make some adjustments to the Global MMOG / LE benchmark criteria with a view to making them more comprehensible to users.after using 2005 to begin with the collection of detailed ideas on all the changes desired by national organisations, a global level working group will define priorities and revise the document. The objective is to bring out a new version during AIAG and Odette will be hold two meetings a year on Global MMOG / LE (one during the Odette conference and the other during the Autotech show) in order to carry forward what is a maintenance process. GLOBAL LKPI This global level project (based on the European LKPI recommendation) is intended to enable definition of logistics performance indicators that are common to both suppliers and customers in the parts supply phase or in serial production.a working group was started in November 2005.A recommendation on this topic is to be published in late GLOBAL INVOICE: STUDY OF A GALIA PROFILE Following the recent changes in terms of invoicing in Europe, at the request of vehicle manufacturers and a number of parts suppliers, it has been suggested that the invoice issue be revisited and that a profile should be defined on the basis of the Odette Global data model.the Global Invoic V2 message chosen is a model developed by manufacturers in the international automotive industry represented by four organisations: Odette, JAPIA, JAMA and AIAG. The GALIA Invoice working group has the following objectives: To define a GALIA Invoice profile based on the Global Invoic V2 message with identical functionalities to INVOIC V5 and V3 messages as currently used (goods invoice, self-billing invoice, credit note, debit note, proforma invoice). The domains affected will relate at one and the same time to goods invoices, service invoices and combined service & goods invoices (e.g. goods + carriage). To look at the possibility of managing new functionalities such as: reference to tax exemption legislation, request for payment on account, request for reimbursement, request for holdback. To overhaul the interchange agreement for the dematerialisation of invoices for tax purposes. To produce a guide to best practice on DMF with an appended summary of the statutory provisions with a major impact on DMF (e.g. Article 289b, annex IV of the French General Code of Tax Law [CGI]). The PSA and RENAULT deployment targets: new partners in EDI Invoic, essentially service providers, plus all partners making an express request for deployment. 15

18 THE LOGISTICS DOMAIN AUTOMATIC IDENTIFICATION BY RADIO FREQUENCY (RFID) This technology, whose technical specifications are currently in the process of ISO standardisation, can make it possible to identify logistics flows (packaging containers for example), following them from the supplier s loading bay to the assembly lines, and downstream from the latter (although this vector in fact falls outside the remit of GALIA). The European association Odette maintains a technology watch on this topic based around a group set up in April In this RFID group, thought is given to the issues in conjunction with vehicle manufacturers and parts suppliers.the objectives are the following: the promotion of RFID in the Automotive Industry, exchanges of information focused around national pilot projects, exchanges of information on a quarterly basis with AIAG and JAMA / JAPIA, discussion of ISO standards in this field and the legal constraints (e.g. operating frequencies), definition of the possible use of RFID in the Logistics Chain, definition of a European position on EPC identification. Ty re identification using R F I D : the M I C H E L I N ex p e r i e n c e Christian Mory M I C H E L I N S t a n d a rds & Regulations T K : W hy and at whose request are you preparing for RFID identification of tyre s? CM: MICHELIN is a company that develops by innovating and listening to what the customer wants.the emergence of RFID in perfectly in phase with both these focuses. Firstly, RFID will bring with it a genuine technological revolution and not only where logistics is concerned. An electronic chip on a tyre might for example be the first element in a broader electronic system operating in symbiosis with the vehicle and its components and forming a part of the interface with the driver, or even the vehicle s external environment. A tyre is a product with a large number of technical characteristics and it could fine-tune the way a vehicle functions simply by sending out information on those characteristics. Secondly, MICHELIN is a participant in the OEM and aftersales markets and we have observed that customers in both these markets are looking to make the use of RFID compulsory. Our concern is to ensure that the demand for RFID is coherent with regard to these different customer categories because we want to avoid having to fit our tyres with different chips to suit specific features required by different customers or markets. And fi n a l l y, p rojects exist in the re g u l a t o ry field aimed at improving the traceability of products and for which RFID is an appro p riate solution. TK: So RFID will soon be on our tyres? CM:Yes and no.ye s, we are pre p a ring for this by conducting studies and tests both alone and along with part n e rs among our customers. N o, because if it is to be used ro u t i n e l y, the economic equation must come out positive, that is to say that the customer has to agree to pay fo r the added-value provided by RFID.This means that ev e rybody must do the necessary calculations and identify the benefits offe red by RFID. We are taking advantage of this to look very closely at the consequences of introducing RFID for the Supply Chain and the IT manage m e n t that flows from this. 16

19 THE LOGISTICS DOMAIN TK:Where do we stand currently on RFID implementation in Europe? CM: Unlike the situation in the United States, the forces driving the emergence of RFID are not yet active in Europe. In North America three vectors exist for the promotion of RFID. Firstly, there is the TREAD Act which has led to new requirements in terms of recalls. FORD took the initiative, pushing for the creation of a standard, standard B11, which provides a perfect definition of the parameters of RFID for tyres.this standard has the advantage of actually having been defined and being shared by vehicle manufacturers and tyre manufacturers. Its implementation awaits only the right economic environment. Next, the retail store giant Wal-Mart (a distributor of tyres among other things) wants a staged process to make RFID obligatory for its main suppliers. Such use will be ramped up by extending its geographical scope and by rolling it out to all suppliers (only the biggest are currently involved). Finally, the US Department of Defense wants to implement RFID-based management of its logistics.you can see then that the development of RFID in the USA is being driven above all by the imposition of obligations. In Europe, we have not yet seen such obligations arise except, perhaps, from the German retail chain Metro, which is going down the same road as Wal-Mart. TK:What do you expect from GALIA/Odette RFID group? CM: First of all, the European industry must not lag behind what is being put in place elsewhere around the world. GALIA and Odette are especially useful forums for the raising of awareness to the RFID issue. In addition, standards are in the process of being put in place and GALIA and Odette are exactly the right organisations to define those standards. And to conclude, given the importance of the European automotive industry, it must take part in the debate, which is currently dominated largely by the large retail chains and logistics professionals. Odette is the natural vehicle for the views of the European automotive industry on these topics. Remarks in conversation with Thierry Koscielniak BROADENING OUR MEMBERSHIP TO INCLUDE CARRIERS AND LOGISTICS SERVICE PROVIDERS On the basis of the interv i ews conducted (L E - R AY Tr a n s p o rt & Logistique G E O D I S N O R B E RT DENTRESSANGLE G E F C O DA H E R M O RY), GALIA provided to the members of its Exe c u t i ve Committee (R E N AU LT PSA RIETER MICHELIN VERNET TRÈVES VALEO FAU R E C I A ARCELOR MAGNETI MARELLI HUTCHINSON GLAVERBEL) a summary presentation setting out the growing importance of carriers and logistics service providers in the Automotive Supply Chain.The conclusions drawn by this presentation highlight the benefits for carriers and Logistics service providers in taking a more active part in the work of GALIA/Odette in direct contact with its members. For this reason, it was decided, in conjunction with the members of the Executive Committee, that these sectors can now become members of GALIA and contribute to improving the exchange of views and information within the automotive industry. Future prospects TRACEABILITY Federal legislation in the USA defines the elements in general those relating to safety which must be tracked.to comply with these requirements there is a need to make use of ISO techniques for the automatic identification of parts and packaging containers and to manage that information to connect it to the information provided electronically (EDI and IT systems in production) from the beginning of the life cycle of each component right up to the end of the life of assemblies and whole vehicles (ISO definition). To date, there is no European Directive that deals precisely with this point, but we need to prepare for one by basing our efforts on what does exist in the USA. Each vehicle manufacturer is considering this issue internally. It may be thought appropriate to examine a transposition of the American work, adapting it to the modes of operation in Europe with a view to providing elements for the consideration of the European Commission. 17

20 THE LOGISTICS DOMAIN Logistics training - TRAINING ON LABELS AND MESSAGES In order to promote better understanding and to assist suppliers in applying the GALIA/Odette recommendations used by French vehicle manufacturers in the context of the deployment of L3P logistics policies and the CINDI project (RENAULT) and Alternative Logistics (PSA), in April 2005 GALIA held a training day on message and label standards recommended by these two major customers.already this year more than 50 people have participated in the training. - E-LEARNING TRAINING ON EDI / WEB EDI An e-learning programme on EDI / Web EDI is available for public access on the GALIA website. This was designed in the context of the A.L.F.A. programme (A.L.F.A. = Amélioration des Liaisons dans la Filière Automobile / improving links in the automotive industry) and enables you, as a manager, IT specialist, logistics manager or member of sales staff in a company active in the automotive sector to become more familiar with the standard tools that will allow you to optimise or automate your customer/supplier pro c e s s e s. Depending on your precise profile, you will follow a personalised course based on a series of modules, lasting approximately 20 to 30 minutes. - TRAINING ON GLOBAL MMOG / LE The experience of L og & PI Sébastien Caillau (trainer) Log & PI Consulting A short overview of Global MMOG / LE After a promising year in 2004, 2005 confirmed the existence of a positive dynamic among the actors in the automotive industry where the implementation of Global MMOG / LE is concerned. Just to recall the context briefly, this recommendation, developed and promoted by Odette in Europe and AIAG (Automotive Industry Action Group) in the United States, is a method for continuous improvement in automotive sector logistics. It is based on a set of benchmark criteria for evaluation enabling comparison of the logistics organisation at a given site with documented best practice in the industry and validated as such on both sides of the Atlantic. The outcome of the evaluation constitutes a real diagnostic analysis highlighting shortfalls in organisation that a specific plan of action will be able to remedy.the construction of the action plan requires as a matter of priority the selection of the items that are most important in terms of the enterprise s strategy, what its customers expect and the constraints on its suppliers. This selection must then lead on to the launch of an ambitious but realistic work programme. The effectiveness of the actions undertaken will then be measured in a further evaluation exercise that will also make it possible to identify once again the avenues for progress which, after analysis, will be defined as new priorities.this cycle forms the bedrock of the approach focused on continuous progress that can be implemented by companies of all sizes. In order to assist in the deployment of this recommendation, GALIA has offered two types of inter-company training since One-day, so-called familiarisation, courses providing an initial approach to the set of benchmark criteria and the implementation strategies associated with them. Plus a three day practical course with the intention to train future key users.these training modules can be given not only in French but also in English. GALIA training courses in 2005 In 2005, GALIA trained more than 150 people in these two courses. A third participated in a familiarisation day and the other two-thirds attended the practical course one session of which was conducted entirely in English, a first for GALIA.The reactions of participants were very satisfactory although this assessment does need to be qualified somewhat.we noted a degree of frustration in those attending the oneday courses, since they have had a taste of the scope and power of the tool and want to go one step further to be fully in a position to implement it.with regard to the three-day course, the vast majority of participants come out feeling well equipped to apply the approach while expressing also a need to deepen their knowledge of the techniques for building and monitoring action plans. 18

21 THE LOGISTICS DOMAIN Customised training courses During 2005 and in parallel with these conventional training sessions, GALIA has responded to further requirements. For example, some companies wished that the practical training could, on request, be organised as an intra-company course.there are more and more companies opting for this formula, one which enables them to make Global MMOG / LE a cornerstone of their systems for driving progress and, over and above this, their logistics strategy. During the second half of 2005, four courses of this type were given and the demand continues to be sustained for early 2006 (ANTOLIN, RENAULT TRUCKS, RENAULT pars (Iran)).We can point to two instances of this:textron Fastening Systems, a division of the Textron group specialising in fastenings, arranged for training for 13 of its logisticians from four plants and central logistics departments. For this company, which generates 75% of its annual revenue in the automotive sector, Global MMOG / LE has become a structural component enabling all its sites to adopt a common language, to share the same organisational targets and by the same token to standardise their individual practices.the benchmark criteria are in this way made an integral part of the logistics strategy of the company. Similarly, TRÈVES has had training provided for its operations management in a new plant located in Kezmarof (Slovakia).The aim of this training was to give the site some keys to building its organisational structure by adopting best practice right from the outset. In addition, GALIA has supported the promotion of this resource on the basis of training campaigns organised in partnership with two higher education establishments: the École Nationale des Mines in Paris and the Faculty of applied sciences in Bethune. In both these cases, the task was to train a dozen students in the progress-focused approach of which Global MMOG / LE is a part and to enable them to implement it in the corporate environment. In this way, students and manufacturers were able to exchange their views with a focus on concrete, real issues while discovering together the benchmark criteria and how they can be a pulling force for progress.the success of these operations obviously argues in favour of a repetition in A highly positive end result All in all, the demand for training was very sustained this year and demonstrates the interest taken by companies in this recommendation. Supply has also diversified with one session conducted in English and the organisation of courses within individual companies. And lastly, training has shown itself to be a very good vector for promotion of the recommendation given that, when assimilated by students, it enables them to move seamlessly from theory to practice while at the same time highlighting the advantages of this approach for a number of manufacturing companies. Where 2006 is concerned, demand seems to be following the same trend. Monthly inter-company sessions have already been timetabled, alternating the 1-day and 3-day courses. In addition, demand for intra-company training is increasing, providing proof of the way in which these benchmark criteria are more and more deeply embedded in the logistics strategies of the actors in the automotive industry. To conclude, 2006 will see additional training courses in Global MMOG / LE coming on stream. For example, a one-day course devoted to the implementation of LKPI (Logistics Key Performance Indicators) will provide a close look at how to drive performance at customer/ supplier interfaces in the Supply Chain.This training course is to be validated in April Remarks in conversation with Thierry Koscielniak Communication on Logistics TWO GALIA LOGISTICS MEETINGS 28 January 2005: PSA s Alternative Logistics Project (240 registered attendees) Introduction (Jean-Claude Vincent, Chairman of GALIA and Director, Supplier Resources & Logistics) Presentation of the Alternative Logistics project (Francis Geuens, Head of the Alternative Logistics Project). 9 December 2005: the CINDI project of RENAULT NISSAN ALLIANCE (285 re g i s t e re d attendees) Introduction (Bruno Ancelin, Director of Logistics) Presentation of the CINDI project (Dominique de Bengy, Head of the Process Organisation Department) 19

22 THE LOGISTICS DOMAIN PARTICIPATION IN A RANGE OF EVENTS SAP Users Club:Automotive Committee 9 March Presentation by GALIA (Thierry Koscielniak and Nadine Buisson Chavot) and two French vehicle manufacturers (Jean-Yves Kerjan (PSA) and Dominique Elie (RENAULT)) to the SAP France Users Club.The main objectives of this meeting were to present GALIA (how it operates at national and European levels, the work it has done and the work currently in progress) and to indicate the developments that have occurred in the logistics field in vehicle manufacturing companies since the implementation of the new logistics policies (Ex-Works and Alternative Logistics in the case of PSA DL Départ, L3P and the CINDI project in that of RENAULT). Odette Conference Czech Republic 7 June 2005 in Brno (Czech Republic) Gerhard Paulinz (VOLVO TRUCKS) and Thierry Koscielniak (GALIA) provided a joint presentation of Global MMOG / LE at the Odette Conference in the Czech Republic on 7 June 2005 in Brno before an audience of nearly 200 (75% suppliers to the automotive industry in the Czech Republic and in Slovakia). The aim of the presentation was to encourage the use of Global MMOG / LE benchmark criteria in the Czech Republic and in Slovakia. The gathering of Czech and Slovakian suppliers AUTOMOTIVE Meetings congress on 8-9 June 2005 at the CNIT in Paris (La Défense) A presentation given at the conference - The Manufacturer/Supplier Relationship: are the roles changing? - led by the editor in chief of Vehicle News. This paper provided an opportunity to recall the significant changes to be seen in the automotive sector, the consequences of these developments in the logistics field and the contribution of GALIA/Odette to achieving the goals. The presentation was followed by a description of experience in two contexts: GALIA/Odette recommendations and the logistics strategy of the ve h i c l e manufacturer PSA (Jean-Claude Vincent, Supplier Resources & Logistics Director) the importance of the Odette Global MMOG / LE benchmark criteria (Damien Derlot, SNOP Logistics Manager). Thierry Koscielniak (GALIA) Europack October, Parc des Expositions, Lyon A presentation given at the conference Reusable Container Management and Standardisation in the Automotive Industry led by Gilles Solard (Editor in chief of Stratégie Logistique).This paper provided an opportunity to recall the role played by GALIA in the standardisation and management of packaging by defining a number of recommendations which have been applied in the automotive supply chain.this presentation of GALIA was illustrated by descriptions of the experience gained in two individual cases: Michel Panouillot for RENAULT, recalling the group s packaging policy and Jean Bédier for GEFCO. RFID show October, Palais des Congrès, Paris, Porte Maillot Gerhard Paulinz (Volvo Trucks) A presentation was given at the conference RFID and the Automotive Industry.This paper provided an opportunity to describe the work undertaken by GALIA/Odette in this area (possible use of RFID in the logistics chain, potential benefits of RFID in the logistics chain, challenges posed by RFID in the automotive logistics chain, automotive standards and recommendations associated with RFID, RFID projects currently in progress, RFID action plans in Europe and RFID activities in the USA).This presentation by GALIA was illustrated by descriptions of actual experience in several individual cases: Geodis (implementation of a RFID pilot project for tracking packaging containers) Balogh (implementation of RFID in manufacturing processes) and Dalalogic (use of RFID in a constrained automotive environment: the vehicle painting sector). 20

23 THE LOGISTICS DOMAIN Odette Conference November, Palais des Congrès, at the CNIT in Paris (La Défense) GALIA contributed to organising a number of Logistics workshops the dominant role of carriers and logistics providers in the Supply Chain with Peter Reinshagen (GEFCO) / Feedback on an RFID pilot project with Jean-Christophe Crespel and Joël David (GÉODIS). Using RFID to identify vehicle tyres with Christian Mory (MICHELIN) Managing logistics performance by monitoring indicators with Valérie Gautsch (NISSAN EUROPE), Damien Derlot (SNOP) and Marjorie Huertas (RENAULT) / Feedback on the implementation of the DCP recommendation with Oliver Sancier (PSA) / Deployment of the GALIA Reusable Container Management recommendation at RENAULT with Jacques Diavet. This conference also provided an opportunity to reward RENAULT for its involvement in the work in Logistics and Jan de Wit (RENAULT) for his management of the LKPI project. PRODUCTION OF SEVERAL PRESS ARTICLES Stratégie Logistique The Global MMOG / LE Operation in partnership with the École des Mines in Paris (03/2005) Reusable Container Management and Standardisation in the Automotive Industry (11/2005) Véhicule News The importance of GALIA/Odette standards in developing the relationship between Customer and Supplier (07/2005) Feedback on the Autotech 2005 show in Detroit (10/2005) Feedback on the Odette 2005 conference in Paris (12/2005) 21

24 THE ENGINEERING DOMAIN A WORD FROM THE CHAIR OF THE GALIA ENGINEERING COMMITTEE Alexandre Loire (GALIA) Alain Badoux (PSA P E U G E OT CITRO Ë N ) The Engineering domain already has a number of concrete ach i evements to its cre d i t on which we need to build. We can point for example to the ENGDAT V3 format, already available for over a year now and whose deployment is only just beginning. Our work must therefore involve initially an awareness of what we have already achieved. This capitalisation is fundamental if we are to illustrate the contribution made by our committee. Such on-the-shelf availability must go on to concrete implementation in the field. We must assist our members in arriving at a sense of ownership and at effective application of our recommendations. Not all our members are aware of the advantages that participation in GALIA can have for them. Steps must be taken to promote what we have achieved to enable everyone to reap the benefit of GALIA membership. I note that the participants in our committee are largely members of the main IS management in a small number of member companies. A broadening to include actual users is necessary to improve our contact with the field.to achieve this, we must remain open to dialogue and learn how to listen to both vehicle manufacturers and their suppliers. Much has been done and we will also have much to contribute in the future with the support of the engineering department managers. Alain Badoux Chairman The new recommendations To d ay, the automotive industry is organised on a planetary scale. It is a continuous chain extending from the vehicle manu f a c t u re r to the humblest lower-tier supplier. Exchanges of information are therefore frequent and cooperation between partners must be flawless in so far as a great deal is at stake in terms of confidentiality, expertise and markets. If the industry is organised in this way, it is partly because its market has become global and disparities in labour costs, taxes and raw materials are fuelling ferocious competition. Only greater collective efficiency can allow us to cope with this situation. Our industry has proved capable of adapting by applying two main sets of measures: Reductions in design and development lead-times, involving: - Intensified cooperation between vehicle manufacturers and subcontractors. - Structured exchanges of information between them. Improvements in vehicle manufacture and distribution, involving: - Constant adjustment of the industrial resource on a day by day basis in response to customer demand. - Coverage of all aspects of logistics and information processing from the initial order right up to vehicle delivery. Everything therefore depends on the reliability, security and organisation of information transfers.this is precisely the focus of the new recommendations published this year.they are the outcome of work on global harmonisation with our partners in the SASIG consortium - these being Odette Sweden, VDA (Germany), GALIA (France), AIAG (USA) and JAMA / JAPIA (Japan). These recommendations, which are available on the Odette International website, refer to the following: SASIG XMTD (ENGDAT V3) : Exchange and Management of Technical Data To sum up briefly, the aim is to send a set of technical data from a source A (with a precise and correct add ress) to a re c e i ver B (with the right parameters). In many cases, due to lack of precision in add re s s i n g, data is delayed in leaving and/or arriving at the right place. The types of information exchanged are CAD data, c o m p u t a t i o n s, Bills of Materials and all the types of document that may accomp a ny these (documentation, t a b l e s, d r aw i n g s, i m a g e s, e t c. ).The formats used are native to CA D / CA M,TDMS and computation softw a re or neutral data exchange fo r m a t s : S T E P, S E T, I G E S, U N I S U R F,V DA, S PAC, e t c. Exchanges are structured in the SASIG XMTD recommendation around four main stages: re q u e s t, transmission and reception of data, plus the processing of acknowledgements of re c e i p t. All these stages are codified in the ENGDAT message.the overall flows and organisational structures invo l ved in exchanging data can be seen in the fo l l owing diagram. 22

25 THE E N G I N E E R I N G D O M A I N The advantage of formalising such information exchanges is therefore to arrive at as single mechanism common to all vehicle manufacturers and their subcontractors at all levels, based on an automotive global communication standard.this leads to major savings since: t h e re is only one system for information exchange throughout the entire supply chain and therefore the return on investment is immediate, productivity is improved because users need to be trained o n ly once to exchange CAD or TDMS data in an integrated manner, there is less delay between the availability of information for transmission and its actual reception and this contributes significantly to the reduction in cycle time given that such transmissions are automated, the quality of both processes and products is improved because the data is reliable and integrated and digital models arrive all at the same time and at the right destination. To conclude, the SASIG XMTD recommendation will be used by software publishers to implement all the above concepts in data exchange solutions available in the near future. SASIG PDQ: Product Data Quality The global automotive industry is increasingly dependent on digital product data to design and make vehicles. This means that Computer Assisted Design software is extremely important. Because of this dependence, quality shortfalls in CAD data bring with them problems during the development of a new car. The most effective approach has been, for the members of the SASIG consortium, to build a common set of criteria enabling the evaluation of the quality of digital modelling and to correct problems on the basis of the criteria laid down by the customer.the task of the working group was to develop a comprehensive recommendation that would provide a neutral definition of quality criteria with a view to automated analysis of product data quality in the following areas: geometry, non-geometric data (layers, etc.), meshing, manufacture, tolerances, quality Inspection. The SASIG PDQV2.0 recommendation has not only served as a basis for the development of numerous product quality analysis tools, but it has also been filed with ISO, which has determined that it should be a Publicly Available Specification, a first step toward total certification, in order to allow all users of CAD software to benefit from it where they need to exchange designs between partners in all branches of industry. SASIG PDM: Product Data Management Digital mock-ups are increasingly used today in engineering offices and this tool makes it possible for suppliers to be incre a s i n g ly i nvo l ved in the various stages of vehicle design.this means that in addition to parts in digital fo r m a t, it is necessary to exchange whole assemblies in 3D format. In order to build, visualise and manipulate a digital model providing a virtual representation of the product and its various configurations, technical data management systems are used to make it possible to save the data-tree for a product as it is designed and as it will be manu f a c t u red and maintained.the recommendation drawn up by this working group compares the various standardised approaches to the exchange of product information derived from such data management systems. On the basis of such comparisons, the recommendation proposes solutions common to all partners in the global automotive industry in the fields of assembly data exchange and production change management. 23

26 THE E N G I N E E R I N G D O M A I N This recommendation thus enables the following: identification and modelling of engineering process scenarios, identification of data and specification of the relationship between data in the case of each scenario (synchronous, on line, etc.), development of A SINGLE comprehensive solution based on STEP and XML, harmonisation of the efforts to implement and validate each solution, substantial savings on the e 1.4bn that such data exchanges have cost on the North American continent alone. SASIG DEV: Digital Engineering Visualisation The communication and validation process based around the design universe are changing.we have seen in the past information exchange and validation meetings structured around: physical prototypes, CAD workstations, based on exchanges of native CAD data (with or without metadata), based on exchanges of CAD data with specialised visualisation tools (with or without meta-data). Now, with the arrival of digital end-to-end continuity and web-based resources the requirements for visualisation are affecting an increasing number of other actors both inside and outside companies.a few examples: buyers need to look at the 2D or 3D data on their PC, validation meetings take place increasingly frequently as videoconferencing sessions; toolmakers need to have the data from the CAD files as soon as possible to make their tools or conduct process simulation sessions; garages use the data from CAD files to illustrate repair procedures and so on and so forth. Hence the creation of the concept of the Master Document for wide-ranging uses and reuses with the visualisation of engineering data. Aware as they are of this context, American, Japanese and German vehicle manufacturers and parts suppliers have created a body k n own as SASIG in which the French automotive sector is not adequately re p re s e n t e d. The SASIG DEV (Digital Engineering Visualisation) group has drafted a (guideline) document setting out best practice in terms of visualisation, technologies and standards to be referred to in order to facilitate implementation of visualisation based on design data such as CAD g e o m e t ry, p roduct structure, computation re s u l t s, a n n o t a t i o n s, tolerances and tessellated data. The goal is to improve collaboration between vehicle manufacturers and parts suppliers. For example, this recommendation should be capable of allowing the fo l l owing to be optimised: Costs: - by reducing the number of CAD licences, physical prototypes, modifications and by optimising work stations, - by eliminating the need for 2D drawings in many cases. Lead-times: - by providing broadly-based access to engineering data throughout the Extended Enterprise, thus facilitating collaborative work, - by speeding up the process whereby products are brought to market. Deploying recommendations in Engineering Where deployment is concerned, most recommendations in the Engineering domain are intended to be integrated into software available on the market.while not promoting any particular solution, GALIA wishes to be in a position to analyse the deployment of existing recommendations by putting appropriate indicators in place. This will make it possible to detect the possible obsolescence of certain recommendations and to assess whether an update is necessary. Among the current lines of thought, the Engineering Committee is looking at the possibility of developing a guide and a questionnaire to optimise implementation of collaborative engineering end-to-end along the value chain (along the lines of Global Evalog) and the possibility of measuring the degree to which recommendations have been integrated into commercially available solutions.this would take a form that remains to be determined. As a corollary to these steps, the Committee wishes to open up to small and medium enterprises in synergy with the A.L.F.A. project, listening to their specific requirements and going out into the field in order to promote the recommendations and assist second and third-tier suppliers in implementing the processes recommended by their customers. 24

27 THE E N G I N E E R I N G D O M A I N Topical subjects EXCHANGING INFORMATION IN THE CATIA V5 ENVIRONMENT (PILOT PHASE) The arrival on the market of the latest version of the CAD program from DASSAULT SYSTÈMES has provoked a great deal of thought and some questioning of the methods used up to now.the work done by the GALIA group follows on from that done in the area of digital data quality and extends the recommendations already published (and which were used as a set of technical specifications to be met by publishers of CAD data quality analysis programs, or checkers ) by looking at the specific case of CATIA version 5 in so far as French vehicle manufacturers and parts suppliers are currently receiving or preparing to receive data derived from this software in most cases. In the case of parts suppliers who are obliged to work in the environments used by each customer, ease of data exchange is important. The working group has therefore considered the problems posed by exchanges in the CATIA V5 environment both in file mode or using a technical data management system.the recommendation currently in the process of definition is aimed at presenting the criteria that need to be met to ensure that the data coming from CATIA V5 or entering the system in file mode can be correctly read and used. To date, around a hundred criteria have been listed and a pilot phase should enable them to be validated in the first quarter of MANAGING MODIFICATIONS How modifications are managed has a major impact on the automotive industry. This is because during the development of vehicle the various parts go through many evolutionary stages which often have a knock-on effect on other components.this affects not only purchasing but also other departments such as the engineering design, methods and project planning, line supply replenishment and logistics. It is therefore fundamental for a supplier to be informed immediately of any modification that has an impact on one of the products it has the job of designing. The lack of availability of this kind of information, or even simply a delay in providing it, can have the effect of letting a supplier continue work on outdated items, with all the ensuing consequences for costs and lead-time. There is therefore an urgent need to harmonise and standardise the management of modifications in order to ensure: an effective relationship between each supplier and the customer by reducing the number of variants in communication throughout the process as a whole, a reduction in the time spent between partners, an increase in process quality and robustness, improved transparency in monitoring between suppliers and customers. In 2000 and 2001, a GALIA working group had already been set up with the aim of addressing these issues.the outcome of this work was a set of functional specifications and a set of technical specifications enabling a definition of a standard communication process.a model for this was designed with the intention of programming and testing it in pilot projects. With the creation of COVISINT, the emergence of a solution potentially capable of resolving the modification issue led to suspension of this work. Last April, when it had become obvious that this solution was not to materialise, the work was reactivated.the conclusions of this first meeting and the conclusions reached in the work done in the past were analysed. This confirmed the maturity of the model that had been designed and allowed an initial work programme to be built up in order to arrive swiftly at the first results. As of the present time, the expected benefits can be defined as follows: the elimination of any confusion that may arise due to the multiplicity of processes for managing modifications, the elimination of task duplication and reworking following modification throughout the process, the reduction of training in the process by adopting a format and messages common to all, the reduction of obstacles through the automation and interoperability of the process. 25

28 THE E N G I N E E R I N G D O M A I N The project team brings together representatives of the two French constructors along with the main parts suppliers to the French automotive industry. The required profiles are those of actors in the buying process for engineering and IT. On an occasional basis, outside actors (consultants and publishers) may be invited to share their expertise. In a second phase, we envisage the creation of links with groups dealing with related subjects in the areas of logistics and B2B portals. It is clear that in today s world, this kind of project cannot remain purely French.As a full member of two international associations, Odette International and SASIG, GALIA is seeking to give this topic an international profile.the CAD CAM AK group in VDA has already addressed this issue. It seems to us to be fundamentally important to consolidate the German and French work to handle the question of information exchange within the SASIG consortium. Initial discussions have made possible an assessment of the need for cooperation in this field.a working group is to start up in the spring of Future prospects The experience of Alain Jord a n (RENAULT) on GALIA and Odette Alain Jordan (RENAULT) GALIA: Alain Jordan, you are the director of IT systems for RENAULT Vehicle Engineering.You have just become a sitting member of the Board of Directors of Odette International, representing the interests of the French automotive industry. Can you tell us about your objectives to drive standardisation in the engineering field? Alain Jordan: If I had to sum up my experience in a few key points, I would say that it is necessary: To base any standard on a pragmatic approach.this is because when thorny issues are addressed it is better to reach agreement on a limited set of straightforward, useable items offering rapid benefits, such as dictionaries. If this is not done, there is a risk that the enterprise will fail outright or get bogged down in interminable discussion in a situation in which it is impossible to get any agreement on information or practices that are too sensitive.another pragmatic idea: don t reject out of hand the standards that have been more or less adopted de facto by the market.this is because they have been adopted quite naturally by the actors in the supply chain and they enable suppliers to avoid finding themselves with the same number of IT products and environments as they have customers! You just have to be careful not to be led astray by publishers contradictory sales arguments; To aim at the application of standards and not simply at their definition.this is because unless a standard is actually deployed and used in practice, in the first place the work done on it is superfluous and secondly you will not find experts who will free up time to participate in working groups.this entails the exercise of control over deployment and the definition of status indicators, verifications, training and so on. We must not lose sight of the fact that practical use is the real goal of standards bodies; And lastly, it seems to me to be particularly important at a fundamental level, given the trend toward inter-company agreements and the effects of the outsourcing of certain tasks, to work on all types of information exchange in the engineering field (exchanges in a CATIA Version 5 environment for example, but not this environment alone). Data in 3D is important but never forget that increasingly frequently we are exchanging assembled items and largish sections of digital models.there is a need to keep an eye on the quality of exchanges of data on project management (timetabling, etc.) and on the validation of that quality. Project Quality Assurance seems to be to an excellent subject, even if it is a sensitive one because it entails disclosure of practices intrinsic to individual companies. There is a whole raft of work to be done in the automotive engineering field.the required human resources must be devoted to this, along with the time and the right focuses to arrive without delay at visible results that can be applied at day-to-day level.where I am concerned, I am ready and willing to do that work. Training in the engineering domain The recommendations built up in the engineering domain are virtually always integrated into the development of solutions sold by independent software publishers. It is no part of the remit of GALIA to offer training in products available on the commercial market. However, we can train members of engineering and methods departments in good practice linked to engineering recommendations.this is the reason why we are in the process of defining partnerships with bodies such as CETIM and the IUT (university technology department) in Mantes in the Yvelines (France). Mantes IUT is celebrating 10 years of existence this year. It awards four university technology diplomas (DUT), two service industry training courses (Corporate and Administrative Management and Sales and Marketing Techniques). Each DUT training programme offers a vocational degree course (level = high school diploma + three years formal education or training) and two second-line courses (Mechanical Engineering and Computerassisted Production and Industrial Engineering and Maintenance). These s e c o n d a ry specialities developed at the IUT are dire c t ly linked to vocational degrees: Mecatronics and Integrated Engineering. 26

29 THE E N G I N E E R I N G D O M A I N Mantes IUT in fact offers an unusual training course in Integrated Engineering. This enables students to get in contact with the corporate world and especially small to medium-sized companies. The topics addressed are for example the concepts of the Extended Enterprise, the potential of CAD, information exchange issues and so on.the main goal of these courses is to help small to medium-sized enterprises in the automotive industry to establish procedures that will optimise their use of CAD software tools while abiding by the constraints imposed by automotive manufacturers.this will let them respond rapidly and positively to invitations to tender and to build digital models that can evolve and remain useful over time along with assured optimu m traceability. the possibility of offering targeted training programmes; At the end of these courses, it is possible for companies making the request to obtain assistance from a student to facilitate the implementation of what has been seen during the programme. This provides a phase in which skills can be improved further. It will then be possible to look at: audit processes in engineering departments in order to find out h ow they actually function and identify ways fo r w a rd for the f u t u re ; helping companies in connection with projects, internships or apprenticeships on the following topics: optimisation of the use of CAD software tools following procedures laid down by the customer, the deployment of new software solutions, participation in mechanical design projects in the context of an approach of Integrated Engineering type and so on. The above is governed by a partnership between Mantes IUT and GALIA. Communication in the engineering domain In addition to contributions made by the Engineering domain to the GALIA newsletter, numerous communication campaigns have been conducted: the GALIA meeting to present the working groups, presentations given to MICAD, leadership of two streams at the Odette 2005 conference and participation in numerous symposia devoted to Collaborative Engineering and PLM. In any event, it has been possible to present the state of the art in engineering at GALIA and to demonstrate the importance of the work being done in this domain. NB: At the Odette conference, Jean-Jacques Urban-Galindo (PSA), Chair of the GALIA Engineering Committee until September 2005, received from John Zobeck the current President of Odette International, an award to thank him for the time and effort devoted to leading the Engineering Committee since 1999 and his many papers given at annual Odette conferences. 27

30 THE B2B DOMAIN The new recommendations 1) Odette S2R The experience of A y m e r i c Ta d d e i, head of the VA L E O c e n t re of competence on customer port a l s What is the S2R project? S2R stands for Security and Reduction of Risk.The project is being conducted within the framework of the Odette International association ( The primary objective is to offer the various actors in the automotive industry recommendations and standards on the use and management of B2B portals with a view to optimising security and exchanges. Aymeric Taddei What is your role? And what is your interest in the S2R project? I am the head of the re s p o n s i b i l i t i e s side of the S2R pro j e c t, a sub-group that will be defining the ro l e s and responsibilities of the various actors contributing to exch a n ge processes using B2B port a l s. VALEO S interest in the project is in two main areas: - Standardisation of the management of rights of access to customer portals. On this basis a recommendation aimed at unifying security procedures for such portals would enable us to enhance the quality of the service provided to our customers and therefore to meet their expectations and conditions more effectively. - Harmonisation through awareness of the resources applied by the actors in the automotive industry in order to enhance the security of this type of exchange. Why S2R? The project was initiated by Odette International in response to demand from first-tier suppliers. Most customers have built widely differing B2B portals in the belief that they are absolutely self-sufficient where the security aspect was concerned. We can see that first-tier suppliers have succeeded in some cases in putting in place procedures for the management of B2B portals, but as the information cascades down the supply chain, we observe that the security surrounding the information exchanged drops off.the resources to be applied in the context of user access conditions for each customer portal are not uniform and are difficult to satisfy. Harmonisation and standardisation of roles and responsibilities can only help ensure that implementation is under greater control and is more secure. What are the objectives of S2R? The objectives of this project are: - to provide a recommendation for actors in the automotive industry in order to secure their external exch a n ges of information with the various part n e rs ; - to develop a SINGLE, S TANDARD security process in order to encoura ge proper application of the pro c e d u res inv o l v e d. And to arri v e at this, four needs have been identified to date: 1. to define actors and their roles and responsibilities on B2B port s ; 2. to define a security policy for the tools used to access such portals (softwa re for virus pro t e c t i o n, intruder detection, e t c. ) ; 3. to define levels of security for the various methods of access; 4. to define a policy for stora ge and control of the information exch a n ge d. What has the group decided? Currently, the group has reached agreement on the definition of the component parts of the S2R project, on an organisation based around a small number of groups and on the timetable for the project.the project leader has been appointed Ilja Ohliger from BOSCH. What stage have your reached on the Odette recommendation? The recommendation is currently being defined and we are planning to make it available early in It will comprise recommendations on security and on the definition of the roles and responsibilities of those involved.this will enable partners to control in a single unified manner the security of information obtained and sent out via B2B portals. 28

31 THE B2B DOMAIN Which companies are participants in S2R? Although many companies will benefit from the results of this project, those participating directly with the national organisations are BOSCH,VALEO, BMW, SKF, WEBASTO, PSA PEUGEOT CITROËN, RENAULT and VOLKSWAGEN. And what comes next? - A final recommendation at the end of the first half of Roll-out to the corporate sector. 2) Odette PID (PARTNER IDENTIFICATION & DATABASE) An Odette B2B project for the management of supplier information on customer portals. The issues underlying the PID project The pro l i feration of B2B customer portals and the need for suppliers to maintain their corporate data in customers systems by means of those portals have pointed to the importance of the issue of customer identification and specific database terms and conditions. All B2B portals use a coding system to identify their partners and s u p p l i e r s. Most vehicle manu f a c t u rers have their own internal codes. S everal have chosen the DUNS number allocated by Dun & Bradstreet but others use a combination of the DUNS number and their own coding system. One of the main services available through B2B portals is the Partner or Supplier Database which is also used by other services available through the B2B port a l. This Database differs from one B2B portal to the next: the structure diffe r s, a s does its management, with the information often being the same but not identical in presentation or involving differing re p resentations of the partner hierarc hy. FAURECIA SIEMENS/VDO BMW DAIMLER CHRYSLER EU DAIMLER CHRYSLER US FORD R7GZA J38AA GM NISSAN NA PSA 48837H S A 01 RENAULT VW DELPHI The code by which each partner is known on the B2B portal is not unique and Partner Information differs on each B2B portal. This leads to dissatisfaction, inefficiency and extra work, offsetting the benefit of some of the advantages associated with B2Bbased collaboration. The origin of the PID project The PID project was born in 2003 fo l l owing its validation by agreement between the participants of the Odette B2B committee, n a t u r a l ly assisted by GALIA and many of its members.t h rough Odette, E u ropean vehicle manu f a c t u rers and first-tier suppliers are working together to develop a recommendation for a universal identification code and a common set of base data which can be exchanged electro n i c a l ly with all customers in the automotive industry. The project was known at that time as SID, with S for S u p p l i e r. Since 2005, the acro nym has changed to use the term P a rt n e r g i ven that B2B exchanges are conducted between partners rather than between customers and their suppliers. 29

32 THE B2B DOMAIN Who are the actors in the PID project? The project team comprises vehicle manufacturers (BMW, DAIMLERCHRYSLER, PSA PEUGEOT CITROEN, RENAULT and VW) and first-tier suppliers (BAMESA, FAURECIA, RIETER,VALEO,WEBASTO, ZF), market-places (Covisint and SupplyOn) along with the organisations Odette, GALIA and VDA. The main objectives are: to develop a UNIQUE and STANDARDISED system for the identification of partners on B2B portals, to draw up a list of UNIQUE, COMMON and STANDARD attributes: - which will personalise each partner organisation on a B2B portal, - which can be used to initialise and update partner information. What is to be found in the Odette recommendation? Until mid-2005, the management of the project was the responsibility of Juan Ramon Martinez at FAURECIA, who has since moved to another post in the company. Rob Exell (Odette B2B programme manager) is now in charge of guiding the PID project. Juan Ramon Martinez Rob Exell The PID recommendation will comprise three core elements: a universal identifier to replace the current multiplicity of assigned customer identifiers, a data model which should meet the basic requirements of supplier information for most automotive customers, a set of XML messages which can be used by suppliers to exchange data with their customers. The identifier the PID code (18 characters) breaks down into three segments: segment 1 (four characters): the ICD (International Code Designator) the supplier of the code used in the second segment, segment 2 (9 characters): the heart of the code the DUNS number, segment 3 (5 characters): the identifier for the partner site A Odette will recommend the use of a universal partner identification code based on the DUNS code.the latter, which is managed by Dun & Bradstreet, is the one that seems to offer the best global assurances and is also used by many companies in the automotive industry as a least a secondary identifier in their current supplier databases.the content of the data has now been completed.what remains to be determined is the content of the XML messages. The PID project team represents part of the European automotive industry and makes no claim to represent the views of individual members of the sector. The actors in the industry are at liberty to make comments which could result in changes being made to the recommendation. 3) PUG (PORTAL USER GUIDE) STANDARDISED PORTAL NAVIGATION ASSISTANCE What is the PUG project? PUG stands for Portal User Guide and was created by GALIA following work done under the Odette UAM project. Portal access management can optimise the time spent on information exchanges between companies. Standardised navigation procedures could further reduce the time lost to a minimum. 30

33 THE B2B DOMAIN Why PUG? This project was initiated by GALIA in response to demand from first-tier suppliers. The multiplicity of vehicle manufacturer portals (first-tier suppliers have to cope with up to 30 different portals) with differing access modes, using several languages, plus the security constraints, has created problems for first-tier firms in maintaining and communicating their information, as well as keeping abreast of technical changes. Users encounter difficulties in identification, access and using differing applications. What has the group decided? The core task of the group was to define in practical and pragmatic terms a solution for a User Guide composed of short standardised texts. The working group kept in mind at all times that the chosen model should be: pragmatic and practical, useable on all the various vehicle manufacturer portals and indeed on first-tier portals. The guide is based on a matrix covering the various applications of the users and the domains in which the Customer is active. It enables the user: to make a direct link between his function and the applications relevant to him, to obtain a short descriptive text for each module. It works in the following way: on connecting to the Customer portal, the user chooses the guide function. He will see displayed a matrix made up of company applications (column headings) and possible domains for Customer applications (line titles).a cross will indicate the domains that relate to his own speciality and if he clicks on this he will see the short descriptive text or texts. Each such text will indicate the purpose of the application, the rules for accessing and using it, along with further links displayed in accordance with the portal s presentation. Which companies have taken part in the PUG project at GALIA? Companies participating directly in the project with GALIA are as follows: BOSCH FRANCE, FAURECIA, HUTCHINSON,VALEO, ZF and RENAULT. Recently, some German companies have also taken part by Web conference. What stage have you now reached? The GALIA recommendation from the working group has now been completed and the recommendation is being put forward at European level with a view to its becoming an Odette recommendation in The deployment of recommendations in the B2B domain 1) THE PFI PROJECT (IDENTIFICATION OF PRODUCTS FOR INDUSTRIAL OPERATIONS) The PFI committee, set up in 2002 in GALIA, has had as its core task the extension of the initiative for identification of nonproduction items initialised by RENAULT and PSA PEUGEOT CITROËN in 2000 to address the management cost and data - quality issues raised by their respective referentials for non-production items. The objective The goal of this study was to find solutions to replace the current system of identification specific to PSA P E U G E OT CITRO Ë N and R E N AU LT with a single system of international industrial functional identification, a l l owing the two groups to make cost sav i n g s. 31

34 THE B2B DOMAIN PFI Scope The scope of PFI covers all items very broadly defined as contributing directly or indirectly to the manufacture of a vehicle without however being directly incorporated into that vehicle.two-thirds of the 800,000 items of this kind managed by one or other of the two manufacturers are for maintenance use (spare parts and consumables used in production equipment) and 60% of those are items available on the open commercial market (detectors, pneumatic/hydraulic cylinders, motors, tools and the like). Currently, all these items are identified in two system applications: SICIM at PSA and SACIM at RENAULT. These applications contain for each referenced item a coding that is specific to either PSA PEUGEOT CITROËN or to RENAULT (MABEC code 600,000 codes), plus a classification, technical descriptions, identification details for the maker(s), the specific references used by the latter and so on. Every month, around 4,500 to 6,000 codes are created in each of the two groups, keyed in manually using proprietary formats. The target situation In order to put in place a system to identify this type of item, two programmes have been conducted in parallel: A common international coding applicable throughout the purchasing process for an item, from the manufacturer/distributor right up to the end consumer (PSA PEUGEOT CITROËN, RENAULT, etc.). High-performance search tools are used, supported by a system of classification and description meeting international standards.the application of international standards is intended to facilitate the implementation of the exchange of computer data, thereby reducing the costs entailed by the management of the reference databases.the PFI committee comprises RENAULT, PSA PEUGEOT CITROËN, CGI (the confederation of wholesale and international) and GALIA. The Committee s core tasks are: to define an approach based on normalised (or standardised) concepts, the result of which is a PFI proposal available on the GALIA website, to promote that approach for all actors involved in the French industry through communication and lobbying. The PFI proposal: Coding: A coding system compliant with ISO standard is requested for catalogue items available in the commercial market. Standards such as EAN, EDIFICE, Dun & Bradstreet, Odette, CEFIC and so on, are governed by this ISO standard, with EAN clearly being the most widespread and broadly used solution. Classification: Of the most widespread classification systems at the present time, ecl@ss, the best suited to the industry, is recommended, although other systems are not ruled out. Information systems are now capable of managing more than one classification system simultaneously if this is needed. Description: A body of international standards exists on data ontology: ISO standards The P-LIB concept, comprising among other things data dictionaries or models, meets the requirements of this standard.to date, a small number of domain-related dictionaries are currently in the process of being formalised under ISO: cutting tools, measuring instruments, electronic components mechanical components (fastenings, screws, bolts, bearings, etc.). Standardised dictionaries are to be used where these exist or, failing this, Community dictionaries (ecl@ss) or shared dictionaries (PFI). Project lead and partners R E N AU LT and PSA P E U G E OT CITRO Ë N, working within the GALIA organisation, h ave initiated this ap p ro a c h, but they have e n s u red that it is not targeted solely on the French automotive industry, but can be adopted by industry in many sectors and by all actors in the pro c e s s es associated with products re q u i red for industrial operations: m a nu f a c t u rers of industrial components, s u p p l i e r s /d e a l e r s, designers of industrial re s o u rc e s / O E M s, end users/maintainers of production re s o u rces and firms offe r i n g solutions and serv i c e s. For this re a s o n, the trade federations (FIM the mechanical industries fe d e r a t i o n, FIEEC the federation of electrical and electronic and communications industries and so on) have been associated with the programme along with the s t a n d a rds bodies (UNM,A F N O R, CEN and ISO). All communication documentation and other useful information can be found on the GALIA website (go to G roupes de trav a i l / P F I ). 32

35 THE B2B DOMAIN Goals and issues The expanding use of E-Business applications brings with it an increasing need for cross-category approval, implementation and standards for the storage and transmission of data in the industrial process.the current variety of solutions specific to individual firms or sectors is generating high levels of cost, especially for manufacturers and suppliers producing and exchanging data used in common and exchanges with end users (those designing or maintaining industrial resources). This issue can certainly be addressed satisfactorily if common inter-sector standards are put in place.the failure to recognise or to use standards or norms in E-Business demands increased effort and leads to extra process costs, along with diminished competitive performance in international markets. In addition, over and above the costs of retyping data into parts reference databases specific to the company (several hundred kilobytes per year per firm), it is a source of error and by the same token loss of quality which can in turn generate numerous disputes, or even lost production (in the case for example of a wrongly referenced spare part and therefore its absence in stock at the time a break-down occurs in the industrial resource requiring that part!). The expected impact In addition to the economic gains described above under goals and issues, the expected impact of this programme is to ensure greater openness to international markets. For this reason, the programme was presented on 9 February 2005 (in Poissy) to the Odette Functional Committee meeting on B2B (it will be remembered that this topic and its genesis at PSA PEUGEOT CITROËN and R E N AU LT we re cove red in a paper given at the Odette confe rence in 2001 in A m s t e rdam) and also to the GALIA B2B c o m m i t t e e on 9 March Association with ecl@ss is envisaged, the latter having entered into a partnership agreement with DIN (the German standards body) and VDMA and which declares itself to be highly interested in our work, with, alongside DIN, European and even global ambitions (a representative office has been opened in China and one is currently in the process of being opened in the US): work on the PLib concept is also being conducted in China, Japan and Germany. The work with AFNOR is intended to provide input at a later date for European and international work on standards.the PFI initiative is an integral part of GALIA s A.L.F.A. project and a number of projects could be included similarly. PFI is curre n t ly the subject of an Odette proposal for 2006, k n own as NPMI (Non-Production Material Identification), which is aimed at defining a European recommendation based on the work done in GALIA s PFI gro u p. 33

36 THE B2B DOMAIN 2) THE Odette UAM (USER & ACCESS MANAGEMENT) PROJECT PORTAL ACCESS MANAGEMENT The underlying principle of the UAM recommendation is to create standardised messages enabling automated transfer of user data without obliging them to type in once again the information concerned.this means that it will be necessary to sign on just once to access partner portals. A reminder of the project s objective: UAM helps ensure that the gains made due to improvements in e-business processes are not cancelled out by an increase in administrative waste. The companies engaged in this project are: BMW, DAIMLERCHRYSLER, PSA PEUGEOT CITROËN, RENAULT,VOLKSWAGEN, G RUPO A N TO L I N, BA M E S A, B O S C H, FAU R E C I A, M I C H E L I N, R I E T E R, S I E M E N S V D O, VALEO W E BA S TO, Z F FRIEDRICHSHAFEN and SupplyOn. Efficiency is enhanced by 30% to 60% through avoidance of the need to type in data manually and by making data transfer automatic. Data accuracy is enhanced through avoidance of error due to manual entry of user data. Data updating is enhanced through simplified/automated data update cycles and the possibility of backend system i n t e g r a t i o n. 34

37 THE B2B DOMAIN Prospects for 2006 The new topics proposed by Odette for 2006 are: ISC (Interoperability of Security Certificates) Robust authentication pro c e d u res for users, p a rtners and suppliers. The advantages: Good security. Faster deployment of high technology. Reduction of the legal formalities re q u i red for agre e m e n t s / c o m m i t m e n t s. PFI = > NPMI (Non-Production Material Identification) The French acro nym PFI is given a new English name NPMI for the purposes of a European recommendation based on the GALIA PFI pro p o s a l. The advantages: A standard for the European automotive industry. Greater clarity in information exchanges. Standardised Electronic Catalogues. TCP (Terms and Conditions in the usage of Portals) A set of generic terms and conditions. The advantages: Faster B2B exchanges, Responsibilities are clarified. All these various subjects are currently in the detailed documentation phase with regard to their precise content.analysis is under way with the members of Odette to assess the interest and priorities for this and to determine the forces to be supplied by each company for the working groups.this action is led by GALIA in France (Project Head: Dominic Walton). 35

38 PROJECT A.L.F.A. When the value chain becomes a chain of solidarity Ownership of Information and Communication Technologies by all actors in the automotive logistics chain has become a necessity and for many companies an absolute precondition if they are to compete and survive. Although this is well understood by vehicle manufacturers and the major parts supply groups, the same cannot be said of the second and third-tier small and medium-sized suppliers in the of the supply chain. Aware of these realities, the Executive Board of GALIA decided in July 2003 to launch a wide-ranging programme to assist secondtier actors in the automotive industry, under the title P roject A. L. F. A..The project is organised at both national and regional leve l s. Nine French regions have been chosen to conduct pilot operations: B r i t t a ny, C e n t re, Champagne A rd e n n e s, F r a n c h e - C o m t é, Normandy (Upper and Lowe r ), P ays de Loire, Poitou Charente and Rhône A l p e s. The tools invo l ved in this project fall into three domains in which GALIA is active: B2B referencing and responding to invitations to tender from customers via their supplier portals, ensuring the availability of an efficient website, conducting efficient meetings and saving time by using web conferencing tools. Logistics implementing computer-assisted management software or optimising the existing tool, communication via an EDI workstation, communication using WebEDI services. Engineering learning design project management via a collaborative work platform, installing a virtual office suite online with customers, communication via an ENX workstation. The project will unfold in three phases: : pilot phase Involvement of 100 companies : first deployment phase 1,000 companies targeted in the pilot and additional regions : second deployment phase The rest of the panel (5,000 firms) should install at least one of the A.L.F.A. tools. The A.L.F.A. project strategy is defined by the national strategy committee, on which all the partners sit (main management of companies and the Digital Economy Mission of the French Ministry of Finance and Industry, trade federations belonging to CLIFA, technical centres (CETIM and CTN, Caen), representatives of promoters of the project in the regions, the École des Mines in Paris, a representative from the vehicle manufacturers and a representative from second-tier subcontractors). Each of the stages in the project is guided by the National Steering Committee, which operates out in the regions through Regional Steering Committees on which the funding bodies (DRIRE and regional government partners) naturally sit. Let s now look at the way in which the regional A.L.F.A. projects have been organised in the pilot regions. A.L.F.A. REGION BRITTANY PAYS DE LA LOIRE AND POITOU CHARENTES Regional promoter of the project: Performance 2010 GALIA Regional Delegate Thierry Koscielniak The following targets have been set for the pilot phase: 10 companies in Brittany Pays de la Loire with 20 pilot projects 5 companies in Poitou-Charentes with 10 pilot projects Marie-Thérèse Crozet Head of the Performance 2010 Project 36

39 PROJECT A.L.F.A. Brittany Pays de la Loire The operation is funded by official bodies in the regions (DRIRE and regional government) to carry the projects fo r w a rd to c o m p l e t i o n.the contracts we re signed in December The project is led and implemented on the ground by Pe r formance 2010, with the help of GALIA and two regional organisations, Meito and Pays de la Loire Innov a t i o n. The first meeting of the steering committee was held on 12 Janu a ry 2006 and an invitation to tender for consultancy services sent out on 15 J a nu a ry S t a rt-up of projects within the companies has been set for March Since the inception of the pro j e c t, Pe r formance 2010 has raised aw a reness in these two French regions within e l even companies, who responded favo u r a b ly to the request for pilots. The participants are suppliers of part s, re s o u rces and logistics serv i c e s. The projects are defined fo l l owing a pre l i m i n a ry diagnostic assessment in the c o m p a ny. It turns out that there is particular interest in we b c o n fe re n c i n g, WebEDI and EDI.These stages will make it possible fo r secondtier firms to improve their competitive performance befo re moving on to other ICT pro j e c t s. Project funding for Poitou-Charentes is to be provided early in 2006 Performance 2010 is the promoter in these three regions of a project known as the High End Automotive Centre of Excellence validated by CIADT (the French interministerial committee for regional development) on 20 December A.L.F.A. IN THE FRENCH CENTRE REGION Emilien Bobbé Head of the A.L.F.A Project for the Centre region Regional promoter: CRCI Centre / GALIA Regional Delegate:Alexandre Loire The automotive sector, the leading industry in France s Centre region With a combined sales revenue of 6 billion annually, 350 individual firms and a total workforce of 40,000 (more than 20% of the entire industrial workforce) the automotive sector is the primary industry in the Centre region. The Centre region ranks 5th in France for automotive activities and 3rd for parts supply to the industry in terms of numbers of sites, the leaders being the Île-de-France (Paris) and Rhône-Alpes regions (source: FIEV 2004). T h e re are two domains of ex c e l l e n c e : mechanical engineering and metallurgy, rubber and plastics processing. And very high levels of skill in: design, electronics, testing and measurement, toolmaking. The importance of this industry for the region led the DRIRE office for the Centre, regional government and the network of Chambers of Commerce to create an A u t o m o t i ve Division in April 2005 whose core task is to channel and energise the re g i o n s a u t o m o t i ve sector. The Centre : an A. L. F. A. pilot region The A u t o m o t i ve Division has set itself the target of energising the relationship between customers and suppliers. It is for this re a s o n that it wished to take part in the A. L. F. A. p rogramme in order to ensure ICT deployment in the re g i o n s automotive SMEs.The Centre is the first region to have come fo r w a rd to GALIA as a candidate, the first to have allocated a budget to the A. L. F. A. p rogramme and the first to have started work in companies in September Twenty-five SMEs in the region will be able to benefit from financial support to help them implement ICT (Information and Communication Technology) tools. They will then serve as a benchmark for other SMEs which the Division will contact to determine whether one of the nine A.L.F.A. tools might be useful to their corporate development strategy. If you are a First-tier Supplier, whether or not you are present in the region and you want one of your suppliers based in the Centre to use an A.L.F.A. tool, do not hesitate to get in contact with us. If you are a Second-tier SME based in the Centre region, you are eligible for an A.L.F.A. grant. Once again, do not hesitate to get in contact with us. 37

40 PROJECT A.L.F.A. A.L.F.A. IN THE CHAMPAGNE ARDENNES REGION Regional promoter: Charleville-Mézières CRITT GALIA Regional Delegate:Thierry Koscielniak The Champagne-Ardennes region started its A. L. F. A. p roject in early It is one of the pilot re g i o n s chosen by GALIA for this operation. The project s promoter is CRITT-MDTS (the regional bureau for innovation and technology transfer) and it is led by the centre for automotive excellence.the aim is to train ten second-tier manufacturing firms in the automotive sector in Jean-Philippe Mercier Head of the A.L.F.A Project The project is funded by DRIRE (the government agency for technology and research), regional government and the manufacturing sector. A regional steering committee has been meeting eve ry two months to validate the pro j e c t s functional policies and to guide it in the right dire c t i o n. In addition to the funding bodies, G A L I A, the CRITT for Champagne-Ardennes and the centre for automotive excellence all sit on this committee. First-tier suppliers are represented by PSA (Charleville-Mézières plant) and second-tier suppliers by the firms NPL and SCDC. Consultants for each tool have been engaged for project implementation fo l l owing an invitation to ten-der issued in November Alongside this, an initial commercial programme was launched early in Janu a ry 2006: four companies are ready to start wo r k.the ro l l - out to all companies in the automotive sector will unfold over a period of three ye a r s. F u rther recruitment is under way to ensure that the participating SMEs are monitored at the operational leve l. This project rounds out the actions set in motion by the centre for automotive excellence to assist re-gional automotive firms in improving their competitive n e s s. A.L.F.A. IN THE FRANCHE-COMTÉ REGION Nathalie Rebert (Baotic) Pierre Schmitt (Perfo Est) Regional promoter: BAOTIC GALIA Regional Delegate: Dominic Walton The Franche-Comté region, home of the PSA PEUGEOT CITROËN group, is the second biggest industrial area in France and some 400 second-tier suppliers to the automotive industry are based there.the sector is structured around the not-for-profit association Pe r fo Est (whose aim is to improve the performance of its members, all of whom are active in the automotive industry ) and in 2005 also structured around the Centre for the Vehicle of the Future, k n ow as the Pôle de compétitivité by the Fre n c h G ove r n m e n t. In this strong industrial sense, the local authorities decided to create Numerica, a multimedia pole to diversify the regional economy tow a rds the digital age in art s, multimedia and industry. Baotic is the body responsible within Numerica for assisting industrial companies going through this process of change. Today, BAOTIC is the promoter of the A.L.F.A. programme in partnership with Perfo Est.The programme has received financial support from the European Union, the French government and Franche-Comté regional government to enable ten pilot projects to be conducted.another application relating to ten more pilot projects is likely to be approved by the authorities early in

41 PROJECT A.L.F.A. An initial presentation of the A.L.F.A. programme led to the drawing up of a list of fifteen or so projects, mainly relating to EDI, WebEDI, ERP and website creation tools. This programme was subsequently the subject of presentations at several events organised by Numerica and in association with the Centre for the Vehicle of the Future in The programmes began in May 2005.The first step was to get back in contact with the companies that had already been made aw a re of the issues in order to carry out the pre l i m i n a ry A. L. F. A. diagnostic assessment. Eight firms we re visited, f i ve pre l i m i n a ry assessments we re conducted and five pilot projects are now awaiting fo r m a l i s a t i o n.two other pre l i m i n a ry assessments are planned for late J a nu a ry. Contacts are in pro g ress with seven other companies.an initial panel of seven A. L. F. A. consultants has been selected. O t h e r consultants are awaiting their own ap p roval by the A. L. F. A. regional steering committee. An A.L.F.A. workshop was held on 24 January 2006 on the topic of collaborative platforms at which three firms using these tools recounted their own experience.the first Franche-Comté A.L.F.A. forum will take place on 18 May 2006 at Numerica. Organised on the basis of free access with respect to the meeting side of the event with ICT professionals throughout the day, it will also comprise two conferences for which the themes are currently being determined.thematic workshops will provide a first contact with various A.L.F.A. tools.the aim of the day is to attract an attendance of around 200 manufacturing enterprises from the East of France (Alsace, Lorraine, Franche-Comté) and to show them what A.L.F.A. tools can contribute to the improvement of their corporate performance. A.L.F.A. IN NORMANDY (UPPER & LOWER) Bernard Delbreil CTN Benjamin Quedeville PN2E Regional promoters: CTN (Lower Normandy) and CRCI (Upper Normandy) GALIA Regional Delegate: Jacky Cousin The A.L.F.A. project started up in January 2005 in Lower Normandy and in January 2006 in Upper Normandy. It is promoted by the CTN (Centre for new technologies) in Lower Normandy and by the CRCI (Regional Chamber of Commerce and Industry) in Upper Normandy, assisted by PN2E (the Normandy centre for electronic exchanges) in Upper Normandy.The CTN also acts as the lead organisation for Normandy (both Upper and Lower) in dealings with the national level of the programme. A.L.F.A. Normandy is funded by DRIRE and the Upper and Lower Normandy regional government bodies. The promoters of the project in the two regions are 100% coordinated and have each committed to a target of 10 piloted pro j e c t s. A.L.F.A. Lower Normandy will last from January 2005 to June 2006,A.L.F.A. Upper Normandy from January 2006 to June This project, which is aimed at instilling ownership by second-tier suppliers of ICT tools relevant to the automotive industry will eventually cover around 600 enterprises based in five territorial departments in Normandy. In addition, Normandy has eight vehicle manufacturing plants and thirty or so sites operated by parts supply companies.the automotive sector employs a workforce of around 65,000 and makes 15% of all French vehicles. In Lower Normandy, five small to medium-sized manufacturing enterprises have become part of the operation following completion of an ICT diagnostic assessment by the CTN. A.L.F.A. Normandy is also being conducted in close conjunction with vehicle manufacturers and parts suppliers committed to progressfocused programmes with their second-tier suppliers and present in Normandy, such as RENAULT TRUCKS, FILTRAUTO, MGI COUTIER METAL, RIETER and VALEO. 39

42 PROJECT A.L.F.A. A.L.F.A. IN THE RHÔNE-ALPES REGION Programme coordination: PPRA GALIA Regional Delegate: Nadine Buisson-Chavot The Rhône-Alpes region has a high level of subcontracting activity, especially in the automotive sector, in which heavy goods vehicles and buses figure very largely, a fact which has led regional government and the Ministry of Industry to put in place an Automotive Cluster and more recently a centre for competitive excellence (Lyon Urban Trucks and Bus). Gilbert Liegeois PPRA general delegate Since 2000 therefore, programmes have been put in place with a focus on the organisation of systems for the production and use of Internet technologies, the aim being to improve performance in small to medium-sized manufacturing enterprises. Regional government has also funded industrial technology platforms such as the OREE collaborative working platform, their purpose being to facilitate corporate ownership of these types of technology. It was therefore against this background rich in initiatives that the A.L.F.A. programme was put in place in the Rhône-Alpes region. PPRA (the Rhône-Alpes centre for excellence in computer-assisted production management) was entrusted with the task of facilitating the implementation of the actions under the programme, which took a somewhat different form from that chosen in other regions. This was so because the funding bodies wanted actions under A.L.F.A. to follow a logic based on those already in progress, using as vehicles those actors most capable of carrying them forward. In add i t i o n, in order to provide a seamless continuity with other collective measures in the re g i o n, it was requested that A. L. F. A. a c t i o n s should be h o m o g e n e o u s, bringing together industrial firms with identical concerns. For all these reasons, the first programme to be put in place was one focused on EDI-WebEDI, promoted by ENE (enterprise digital space) as part of regional programme and led by Denis Bourgeois. The six firms registered for this are all second or third-tier subcontractors.a decision was taken to launch the programme on 16 September 2005 and it is planned to end in May Immediately the action was started, GALIA and the centre for excellence in computerassisted production management began work on another programme, this time with a focus on integrated management programs. This action, promoted by another actor in the Rhône-Alpes region,thésame, is aimed at assisting a group of 10 small to mediumsized manufacturing enterprises in their efforts to improve their information exchanges in relationships between primary manufacturers and subcontractors or suppliers. The programme seeks to stimulate and assist thinking on the optimisation of existing management programs through implementation of supplementary software and particularly the creation of a permanent progress-focused dynamic centred on ERP. The funding for this is currently being brought together and the programme should start up in about three months time; it will be staged over approximately one year. At the same time, PPRA has taken a closer look at the topic of Collaborative Working in the context of A.L.F.A.. Before moving on to a more intensive phase, PPRA has assisted in an experimental programme of Collaborative Working on the regional platform OREE, promoted by ENE. The project developed concerned the Co-Development of a vehicle door connector.the pro j e c t re q u i red the invo l vement of several actors (multiskilled) using a heterogeneous range of CAD and CAPM tools. It provided nu m e rous lessons on how to implement this type of tool in a group of partner enterprises. Today, the knowledge acquired is making it possible to build a larger-scale collective action in the region. To summarise for A.L.F.A. the year 2005 has been heavy and 2006 is rich in new proposals for the Automotive Cluster in the Rhône-Alpes region. The upshot of all the above is that 2005 has been a very intensive year for A.L.F.A. and 2006 will bring with it a wealth of new programmes that will be offered to companies in the Rhône-Alpes Automotive Cluster. All the actions described here thus testify to the dynamism and attractiveness of the A.L.F.A. project. The regional delegates of GALIA, who are at the service of the regions to assist in implementing programmes, have the opportunity of meeting with management in SMEs and, thanks to preliminary diagnostic assessments, to observe just how much companies in the automotive industrial fabric want to move forward in line with the changes currently under way. With all our committed partners, we are setting a date with the French Motor Show in 2006 to look at what has been achieved in a project that began with the French Motor Show in

43 PROJECT A.L.F.A. Interview: a founding partner of Project A.L.F.A.: the École des Mines in Paris Determined to ensure the best possible deployment of Project A. L. F. A. to the 5,000 second-tier sub-contracting enterprises, GALIA asked the re s e a rch centre fo r scientific management at the École des Mines in Paris to help it with the pro g r a m m e. Two re s e a rch lecturers we re assigned to this adve n t u re : Eric Ballot and Frédéric Fo n t a n e.t h ey answer a few questions below. GALIA: Gentlemen, in just a few words, can you tell us about your research centre? Frédéric Fontane Eric Ballot EMP:The job of the research centre for scientific management at the École des Mines is to study the practical application of decision aid theory in the corporate environment.this requires operational research, public management, rationalisation of production and design theory that our students are called upon to apply in companies we work with. Naturally, like any other research facility, we conduct management research projects. GALIA:What methods do you use? EMP : Our methodological approach has four main thrusts: - Going beyond the standpoint of the neutral observer, - Committing to work with industrial firms and looking at the issues of concern to them, - Understanding organisations and their goals through the ways in which they change. - Extracting basic principles that can be generalised. GALIA: It is easy to understand why the GALIA Executive Board chose to invite you to assist it with Project A.L.F.A.What are your objectives for each of its phases? EMP: In the pilot phase, we will be choosing 10 pairings (enterprises and tools) selected for detailed assistance.we shall be devoting eight days work to each case, 4 or 5 of these being spent in the company during the actual unfolding of the project.then we shall write up 10 case studies on the following topics: the reasoning that led to adoption, braking factors, changes in processes with an impact study on the organisation and lastly, a project balance sheet. In 2006, we will be analysing the positions of companies that do not wish to start an A.L.F.A. programme and at the end of 2006 we will publish a collection of accounts of experience of A.L.F.A. intended for enterprises in the second phase of A.L.F.A. deployment.this publication will offer a grid for analysis to facilitate the launch of further projects. Remarks in conversation with Alexandre Loire 41

44 THE ENX NETWORK A WORD FROM THE M A NAGING DIRECTOR OF ENX A S S O C I ATION ENX, the European multi-provider network for the entire automotive industry, was founded in June 2000 by the European automobile manufacturers, the suppliers Bosch and Siemens VDO as well as four national associations.the ENX network enables all its users to interconnect and to exchange data in a standardised way. Lennart Oly Managing Director, ENX The ENX Association s main task is to set up, maintain and run the ENX network. GALIA is among ENX s founding members and one of its main contri b u t o rs. J a cky Cousin, d i rector of GALIA, is not only a member of the executive board and treasurer of the ENX Association, but also its vice-president since November 3rd, Prof. Dr.Armin Vornberger of leading automotive supplier Wilhelm Karmann GmbH has been appointed president of the ENX Association the same day. The infrastructure and accesses are provided by leading telecommunications companies such as France Télécom,T-Systems,Telefónica and BT Infonet.These providers - certified by us - guarantee an exceptional level of reliability, security and performance for all users throughout the network. We celebrated the 5th anniversary in 2005 and are pleased to see that our network is still growing. This year, the DGA (General Delegation of Armament) became a member, with the consequence of ENX also extending to the defence industry. Being a member allows the DGA to increase the data exchange with its industrial partners all over Europe.To use the words of Michel Cadic, former head of the DGA s Armaments Portal Project: For us, ENX is a strategic tool for the development of electronicallybased administration. ENX is a secure private virtual network operating outside the Internet.The status of ENX provides us with both, significant savings and indispensable security. Furthermore, the number of users is constantly rising. Since the end of 2004, the number of new accesses has increased by 50%.This indicates that in the automotive industry the ENX network is not simply a communications platform but also an instrument for the re d u c t i o n of complexity and related costs. In December 2005, there were over 800 accesses corresponding to over 4,800 individual connections with partners throughout Europe. Important automobile manufacturers, which have not been users in the past have decided to use ENX for secure data exchange in Hans Lawitzke of Ford explains the move towards our network: There were many reasons for us to join ENX as for example the cost savings of our suppliers and the reduction of engineering project lead times. ENX meets all our criteria in regard of our long-term needs. At the end of 2005, about 30 companies were already connected to Ford via ENX.We expect many others to follow in Finally, we have achieved our aim of reducing access costs, esp. in France and Germany. Since the beginning of my term as managing director of ENX Association, the focus is on costs.we are trying to do everything possible to guarantee profitability for the various categories of users.we are having a close interest in ensuring that the network is affordable for small and medium-sized enterprises. After the first price cut from France Télécom in 2003, the new range of products for SMEs released in October 2005 made ENX much more attractive for the smaller partners in our industry. Although ENX is based in Euro p e, the ENX Association is still working towa rds global cov e ra ge. In 2005, the CSPs established sev e ral accesses outside Europe.We will continue to deepen our engagement in global coverage wherever individual partners are in need of it, especially in developing automotive regions.. Lennart Oly Managing Director, ENX 42

45 THE ENX NETWORK Important events in 2005 The DGA is now a member of the ENX Association and has been a participant in the executive board of ENX since January Other sectors such as defence procurement and finance also use the ENX network. N ew DSL offers for SMEs: for example, since 1 October 2005, France Télécom is offe r i n g : ADSL Light : 512/128 Kbps - Prices starting at 150 e monthly; SDSL Multiservice 512 Kbps, 1, 2 and 4 Mbps - Prices starting at 385 e monthly; SDSL Multiservice Plus - Prices starting at 630 e monthly; The Permanent Access options continue to be on offer from France Télécom and remain necessary in geographic areas without ADSL coverage.the aim of France Télécom on this topic is to cover 98% of French national territory (eligibility for ADSL/SDSL) by the end of For all information on France Télécom s ENX offers, please contact Sandrine Duong ([email protected]), indirect sales engineer with responsibility for ENX. Development of the use of applications on ENX and especially EDI: 68 Renault supplier sites use EDI on ENX. Renault encourages those of its suppliers who already have an ENX access send their EDI messages via this network. Expansion of over 92% since the first quarter of 2004: 830 accesses in December 2005 distributed over 19 countries (corresponding to around 4,800 individual connections); The use of ENX is developing outside Europe: in the US, Brazil and South Africa. Four ENX certified service providers offer a single point of access to the entire European automotive industry 43

46 THE ENX NETWORK Deployment of the ENX network In 2005, the general upward trend in ENX accesses was c o n fi r m e d : 830 ENX accesses in December 2005, w h i ch corresponds to some 2,500 tunnels (logical connections). Numbers of tunnels (connections between ENX partners) for the biggest users of ENX and global coverage outside Europe. The ENX user group and the topics addressed A WORD FROM THE CHAIR OF THE ENX USER GRO U P This ye a r, the ENX Association is celebrating its 5th annivers a ry.with over 800 companies online, a capacity of 355Mbits and 4,800 individual connections, ENX has confirmed its success in Europe in the automotive, defence procurement and administrative sectors. Michel Le Méro (RENAULT) President Nadine Buisson-Chavot Project Head Our GALIA ENX user group has been an important actor in this success and has led the deployment of the network by helping to make new applications available on ENX, and especially by validating the use of ENX for EDI transfers.we have also worked to improve operational procedures with providers and contributed to communication campaigns targeting potential users organised by the ENX Association, GALIA and ODETTE. In 2006, while continuing with these core measure s, we will be mobilising our effo rts to speed up the international deployment of the network and to propose suitable solutions for connecting our suppliers in the emerging economies, in conjunction with the prov i d e rs and with support from the ENX A s s o c i a t i o n. We shall also strengthen our actions targeting tier 2 suppliers to improve their connection rates to the ENX network and to ensure the continuity of exchanges of digital services end-to-end on the design, manufacturing and supply chains. Your contribution to the GALIA ENX user group is more important than ever if we are to continue to deploy effective and reliable B2B exchanges which are vital for our industry. Michel Le Méro RENAULT ENX Project Manager 44

47 THE ENX NETWORK The ENX user group meets once a quarter. List of participants: Automobile manufacturers and organisations (4): RENAULT PSA ENX DGA Suppliers (14): HONEYWELL GARRETT FAURECIA MAGNA STEYR RIETER SIEMENS FREUDENBERG LEAR MAGNETI MARELLI MICHELIN MGI COUTIER VALEO TREVES PLASTIC OMNIUM PAULSTRA TOPICS ADDRESSED IN THE ENX USER GROUP Monitoring deployment in Europe and the rest of the world. Feedback from connected users. Assimilation of the needs of users in terms of reporting: utilisation statistics are now part of most ENX products from France Télécom. Discussions on the use of new applications on ENX and monitoring the deployment of EDI over ENX.The following PSA and Renault applications and services are available via ENX: transfer of CAD files, access to standards, technical documentation, quality indicators, purchasing, marketing, access to a design environment: digital modelling, ENX messaging providing security and confidentiality for exchanges, logistics (including EDI), video or CAD conferencing, engineering (transfer of CAD files, access to digital modelling), collaborative work applications (auctions, calls for tender, catalogues, managing shared documentation), finance. To find out more: the GALIA website, section Services / ENX PSA and RENAULT supplier portals. Development of projects for ENX connection pooling: the launch of Visio Concept on the premises of Numérica in Montbéliard in October to find out more on the Visio Concept resource centre, go to the GALIA website, section News / Archives. Improvement of the interconnection among ENX certified service providers (France Télécom, Deutsche Telekom, BT Infonet, Telefónica). Several presentations were given in 2005: DGA (website partner area), France Télécom (customer support centre), GXS (EDI via ENX), ICD International, Numlog. 45

48 THE ENX NETWORK Future prospects Continuing with deployment In the automotive industry. Online connection of further manufacturers: NISSAN, HONDA, FIAT. Development of connections between tier 1 suppliers. Connection of tier 2 suppliers notably via the ALFA project. In the defence procurement sector with DGA partners. Developing the use of ENX in other sectors of activity Aeronautical engineering Accelerating the international deployment of ENX, e.g. in India Morocco China Continuation of exchanges with other networks similar to ENX:ANX (North America) and JNX (Japan) Developing the services provided by the ENX network Class of Service (CoS) and Quality of Service (QoS). Continuation of communication and promotional programmes for the ENX network Facilitating implementation through solutions adapted to suit individual partners: My ENX Simplification of the registration procedure. Development of the services relating to the Yellow Pages. Improvement of the request procedure for the creation inter-csp tunnels. Improvement of the escalation procedure: trouble ticket submission. Communication An ENX workshop was held on 25 May 2005 at which a range of presentations were given: By the Managing Director of ENX, who set out the future prospects for the network. By automobile manufacturers (with an online ENX demonstration on access to PSA digital modelling): RENAULT, PSA, FORD. Parts suppliers and an engineering design department: TRÈVES,VALEO, HEULIEZ, RIETER and TWIN SERVICES. ENX certified service providers: FT, DT, BT Infonet. Service providers offering assistance for the implementation of ENX accesses: ICD International, Numlog. This workshop was held in the offices of DGA and attracted 70 participants. All the presentations are available on the GALIA website. A complete relaunch of the ENX website ( March 2005 An ENX brochure and a datasheet with key figures in French, English, German and Spanish, downloadable from the ENX website. An ENX meeting on 20 September: 70 participants Status and Outlook (by Lennart Oly, Managing Director of ENX). The ENX offering from France Télécom, ENX certified service provider. Participation in conferences MICAD April: presentation of ENX on the Numérica stand. SIFAO May Automotive Meeting 8-9 June: Conference on Managing R&D for improved co-development : paper by Lennart Oly (Managing Director of ENX) and Hans Lawitzke from FORD. Launch of Visio Concept, 20 October. Odette Conference, November. 46

49 Members of GALIA ACTIVE MEMBERS AB INDUSTRIE AFC ALCOA FIXATIONS SIMMONDS SAS AMIS (SIFCOR) APM APPLIFIL ARCELOR AUTO ARDEPA A RVIN MERITOR LIGHT VEHICULE SYSTEMS FRANCE AUTOLIV FRANCE AVON POLYMERES FRANCE BEHR FRANCE BENTELER AUTOMOTIVE BERTUCAT INDUSTRIE BERU EYQUEM SAS BOLLHOFF OTALU BOSCH SYSTEMES DE FREINAGE BOURBON BOURGUIGNON BARRE BRETAGNE ATELIERS BUSAK PLUS SHAMBAN CAB MECANIQUE CAILLAU CARCOUSTICS CARPENTER CML INNOVATIVE TECHNOLOGIES COMPAGNIE DEUTSCH CONTINENTAL FRANCE COOPER-STANDARD AUTOMOTIVE FRANCE DANA NOBEL PLASTIQUES DAPTA SAS DEFONTAINE DELCAR DOURDIN DUFERCO COATING EDSCHA FRANCE ELECTRICFIL AUTOMOTIVE ELECTROPOLI PRODUCTION EMT-25 EPE EUROPE ERGOM FRANCE ETAPE 63 EURO CN FABRIS FAURECIA FCI AUTOMOTIVE FRANCE FEDERAL MOGUL GARENNES FEDERAL MOGUL OPERATIONS FRANCE SAS FEDERAL MOGUL SEALING SYSTEMS FEDERAL MOGUL SYSTEMS PROT E C T I O N GROUP FIDAY GESTION FILTRAUTO FONDERIE DE GENTILLY FORGES DE COURCELLES FRANCE JOINT FRANK & PIGNARD FRANTZ ELECTROLYSE FREUDENBERG FREUDENBERG MEILLOR SAS GALVA 45 GATE FRANCE GATES SAS GF GARCONNET GGB FRANCE EURL GKN DRIVELINE SA GLAVERBEL FRANCE GOODYEAR DUNLOP TIRES FRANCE GRIFFINE ENDUCTION GRIS DECOUPAGE GROUPE NEYR PLASTIC HARMAN BECKER HBS TECHNOLOGIE HELLERMANN FRANCE HEULIEZ HITACHI COMPUTER PRODUCTS HONEYWELL GARRETT HUTCHINSON HYDRO ALUMINIUM STRUCTURES INA FRANCE INERGY AUTOMOTIVE SYSTEMS FRANCE INOPLAST INOX ASPECT ITW FRANCE COMET ITW RIVEX JOHNSON CONTROLS CONFLANS KEY PLASTICS INTERIORS SA KEY PLASTICS INTERNATIONAL KIRCHHOFF FRANCE KONI FRANCE LEGRIS LINPAC MATERIALS HANDLING FRANCE LISI AUTOMOTIVE FORMER LYDALL THERMIQUE ACOUSTIQUE M AGNETI MARELLI MOTO P ROPULSION FRANCE M AGNETI MARELLI SYSTEMES ELECTRONIQUES SAS MAHLE FILTERSYSTEME MAHLE PISTONS FRANCE SARL MANN + HUMMEL FRANCE MANULI AUTO FRANCE MANZONI BOUCHOT MARK IV SYSTEMES MOTEURS MARTIN TECHNOLOGIES MECANINDUS MECAPLAST METALDYNE INTERNATIONAL FRANCE METZELER AUTOMOTIVE PROFILE SYSTEMS MGE MGI-COUTIER MICHEL THIERRY MICHELIN MOLEX AUTOMOTIVE SARL MOLLERTECH EUROSTYLE MOTEURS LEROY-SOMER MOTOROLA SAS NEW STEEL NIEF PLASTIC NO-SAG 47 OBERTHUR CARDS SYSTEMS OSRAM PENNEL AUTOMOTIVE PERNAT EMILE & FILS PEUGEOT JAPY INDUSTRIES PLASTI 23 PLASTIC OMNIUM PLASTIQUES PÖPPELMANN FRANCE PLASTO PLASTOHM POLYONE FRANCE PRECIFORGE PRODEMA-MOTTAZ PROFIL STYLE AUTOMOBILE PSA PEUGEOT CITROEN RECTICEL REHAU RENAULT RENCAST RIETER AUTOMOTIVE FRANCE RIVORET ROBERT BOSCH FRANCE SAS ROULUNDS CODAN FRANCE SA GPI - GROUPE GERGONNE SAB SACRED SAG FRANCE SCAPA FRANCE SCHEFENACKER VISION SYSTEM FRANCE SCHERDEL HERCKELBOUT-DAWSON SCHMITTER FRANCE SCHOELLER ARCA SYSTEMS SCHRADER SEFI SENIOR AUTOMOTIVE SETFORGE L HORME SGI SIEMENS VDO AUTOMOTIVE SILVATRIM SKF FRANCE SNOP SOCIETE DES COLLIERS NORMA SOCIETE PARISIENNE DE RESSORTS SOFAIREL-MAYET SOTIRA SPICER FRANCE STEEP PLASTIQUE STREIT MECANIQUE TECMAPLAST TELEFLEX AUTOMOTIVE FRANCE TENNECO AUTOMOTIVE FRANCE TEXTRON FASTENING SYSTEMS THYSSENKRUPP SOFEDIT VENDOME TI GROUP AUTOMOTIVE SYSTEMS TRAMICO TRELLEBORG AUTOMOTIVE FRANCE TRESSE METALLIQUE J. FORISSIER TREVES TROIS M FRANCE TRW FRANCE

50 Members of GALIA TUBEST FLEXIBLE SOLUTIONS TWIN SERVICES TWL EURODEC TYCO ELECTRONICS UGIMAG VALEO MANAGEMENT SERVICES VALLOUREC COMPOSANTS AUTOMOBILE VALLOUREC PRECISION ETIRAGE VELOCAR VERNET VIP VISION SYSTEMS AUTOMOTIVE SAS WAGON AUTOMOTIVE WEBASTO SYSTEMES CARROSSERIE WECOSTA WOCO DECIZE S.A.S. ZANINI FRANCE ZF LEMFORDER METAL FRANCE ZF LEMFORDER TUROVER ZF SACHS SUSPENSION FRANCE ASSOCIATE MEMBERS A AGC AUTOMOTIVE EUROPE ALBERT BRIFFAZ ARCELOR TUBES ARIES MECA ARVIN EXHAUST ASEC AUTOLIV LIVBAG BTR CAMELIN CARPENTER ANJOU CHAUSSON OUTILLAGE CISATOL DUNLOP ROUES FONDERIES DU POITOU ALUMINIUM FRANÇAISE DE MECANIQUE GEFCO GOBIN DAUDE HARMAN-BECKER AUTOMOTIVE SYSTEMS HONEYWELL MATERIAUX DE FRICTION HPI HUTCHINSON SNC INDUSTRIELLE DESMARQUOY SNC LA SOURCE COMPOSANTS MOTEURS LAJOUS INDUSTRIES LAMINOIRS ET ATELIERS DE JEUMONT LE JOINT FRANCAIS LISI AUTOMOTIVE RAPID MB AUTOMOTIVE METALTEMPLE MGI-COUTIER MUREAUX MGI-COUTIER SEIM MPAP NADELLA NOMEL PAUL JOURNEE PAULSTRA PTB TEXTRON PUM SSC QAD EUROPE RENAULT ACI SAINT JEAN COMPOSANTS MOTEURS SBFM SMAN SNR ROULEMENTS SOCIETE DES FORGES DE FRONCLES SOFANOU SOFASA SOFIB SOFRASTOCK INTERNATIONAL SOLBLANK STA TELMA TIXIS SYSTEMS TRELLEBORG FLUID SYSTEMS TRELLEBORG MODYN TREMOIS TREVEST TRW CARR FRANCE TRW COMPOSANTS MOTEURS UGINE VALEO CLIMATE CONTROL VALEO DISTRIBUTION VALEO DRN MOTEUR VALEO ELECTRONIC AND CONNECTIVE SYS T E M S VALEO ELECTRONIQUE VALEO ENGINE COOLING VALEO LIGHTING SYSTEMS VALEO MOTORS AND ACTUATORS VALEO SECURITE HABITACLE VALEO SECURITY SYSTEMS VALEO SLOVAKIA VALEO SWITCHES AND DETECTION SYSTEMS VALEO SYSTEME D ESSUYAGE VALEO SYSTEMES ELECTRIQUES VALEO THERMIQUE HABITACLE VALEO THERMIQUE MOTEUR VALEO TRANSMISSIONS VALEO VISION VALEO VISION BELGIQUE VALEO WIPERS SYSTEMS VALFOND REYRIEUX VALMEX VICKERS VISTEON SYSTEMES INTERIEURS WIMETAL ASSOCIATE MEMBERS B CCFA CETIM CT DEC CTN FONDATION AMIPI - BERNARD VENDRE GIFAS ICARE PERFORMANCE 2010 PÔLE PRODUCTIQUE RHÔNE-ALPES SFEPA (FIEV) UTBM CLUB MEMBERS ACR DSIA FRANCE ADONIX AISAN BITRON EUROPE ALLIBERT BUCKHORN FRANCE ATOS ORIGIN INTEGRATION AUTOLOG NORBERT DENTRESSANGLE AXEMBLE AXWAY BMA CONSULTING CEGEDIM DPT EDIPHARM CEGID CELTIC CONSEIL CGEC COVISINT SUBSIDIARY OF COMPUWARE CSC PEAT MARWICK DASSAULT SYSTEMES DAYCO EUROPE DESKOM EBUSINESS EXPERT EDT ELCO FORUM TRAFIC FRANCE TELECOM GALION SOLUTIONS GEORG UTZ GXS ICD INTERNATIONAL ICON SCM IDESTYLE SERVICES IFS FRANCE 1 LOGISTICS ZURALSKI INFFLUX INFLUE ILLICOM INFODEV-INAROB INFOR GLOBAL SOLUTIONS BREISACH IPOINT-SYSTEMS/ICOMAU JPV CONSULTANT LE RAY TRANSPORTS ET LOGISTIQUE LEAR AUTOMOTIVE LOG & PI CONSULTING MADRAS DIGITAL MANAGER NEDSCHROEF FASTENERS NUMLOG PARAGON IDENTIFICATION PEA CONSULTING PLANEXWARE PLUVIAUD ORGANISATION TPO PNEUS PIRELLI ROMRADIATOARE SAP FRANCE SCHOELLER PLAST SEEBURGER FRANCE SEEMAGE SERES SILVERPROD SOCIETE NOUVELLE BEGEY SOFRASAR SOFT & COM SOLAR SERVICIOS ON-LINE ARGENTINA SORMA FRANCE SPRING TECHNOLOGIES STERLING COMMERCE SUPPLYON TENOR CONSEIL TPV TX2 CONCEPT UNILOG IT SERVICES BD DELTA VERITAS VISEO AUTOMOTIVE WOPLA 48

51 For more information consult our web site GALIA.COM

52 a member of Odette International 9 6, a venue du Général Leclerc Boulogne-Billancourt T é l. : +33 (0) Fax : +33 (0) [email protected] w w w. g a l i a. c o m