Challenges and approaches to startup scenarios in the automotive industry



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Presentation: Challenges and approaches to startup scenarios in the automotive industry Prof. Dr.-Ing. habil. Dieter Specht Institute of Product Research Brandenburg University of Technology Cottbus 1

Serial start-ups represent the link between product development and full-scale production. Definition of serial start-up The The serial serial start-up start-up defines defines the the timeframe timeframe in in which which the the total total production production is is brought brought up up to to the the determined determined target target number number of of units units per per day, day, including including the the pilot pilot series series phase phase as as well well as as the the start start of of production, production, and and the the subsequent subsequent ramp-up ramp-up period. period. Production capacity in % 100 Ramp-up curve 0 Serial development Commissioning Ramp-up Serial production Phases 2 Pilot series Serial start-up Ramp-up period Source: Based on Fleischer, Spath, Lanza 2002, p. 51 and cp. Kuhn et.al. 2002, p. 8

The start-up of a serial product contains all activities and measures regarding the planning, control and enforcement of the start-up process based on the associated production systems. Start-up in the process of product genesis Phases Serial development phase Pilot series Start-up phase SOP Target Product Development Change Producttion Development of Production system Production preparation... assembly & conversion...... Commissioning and adjustment of the production system Ramp-up Consideration emphasis Start-up (in cooperation with suppliers and plant constructers) 3 Source: Based on Wiesinger, Housein 2002, p. 506

By reducing the start-up time, the planned target number of units per day can be achieved faster Reduction of start-up time Production capacity in % 100 Planned curve Real curve Ridge line 0 Time t 1 t 0 4 Source: Based on Fleischer, Spath, Lanza 2002, p. 50

Prerequisite for the reduction and control of the start-up process is the mastery of the problem areas. Challenges within the start-up process 1. Complexity of the start-up process Consideration of the value chain 2. Opacity of the start-up process OEM / Serial manufacturer Horizontal consideration Producer of investment Supplier / goods Serial manufacturer 3. Performance measurement during the start-up process Vertical consideration Supplier 4. Conflict of interests during the start-up process 5

The horizontal as well as the vertical consideration of the start-up process is specified by elementary and organisational aspects. Horizontal and vertical consideration of the start-up process Horizontal consideration of the start-up process Elementary: Fast control of all processes Adaptation of the material flows and capacities of both the production and logistics system Horizontal consideration Producer of investment goods OEM / Serial manufacturer Supplier / Serial Supplier manufacturer / Serial manufacturer Vertical consideration of the start-up process Elementary: Fast implementation of customer requirements Inter-company coordination of operational functions Control of the complexity within the value chain Vertical consideration 6 Organisational: Control of how a process s degree of maturity develops as well as control of the efficiency of capacity- and technology-driven start-up processes Supplier Supplier Organisational: Control of inter-company processes and thus of the efficiency of product- and technology-driven start-up processes

In the scope of a logistic-based start-up, a number of tools and methods is suggested, in order to optimise start-ups in the automotive industry. Modules of a logistic-based start-up (I) Process planning and and strategy Project Project Project culture culture Project organisation Variant Variant Change Change Tool Tool Supplier Supplier Knowledge Knowledge Logistics Logistics Human Human Resource Resource Management Management Data integration 7 System border Source: Risse 2002, p. 219

The target-based process is to ensure the mastery of all processes that are required until the target number of units per day is achieved. Target-based process (I) (1) Fundamental procedure (2) Fundamental prerequisites Ramp-up targets Sufficient maturity of the product, process and organisation Derivation of process targets Depiction of the processes by means of ratios Description of the processes and their results Essential characteristic of the target-based process is the continuous gathering of process ratios and the comparison of these ratios to the determined targets. 8 Source: Cp. Laick, Warnecke 2002, pp. 43-45

Simulations facilitate both an early warning system of disadvantageous developments and an optimisation of the production system. Planning and process related simulations of the production system (I) expected quality UT Tolerance OT Developments of the performed process-related quality capability form the basis of quality simulations Process repetition UT Tolerance OT Fundamental process 1 Fundamental process 2 Basic components within the simulation Fundamental process 3 The fundamental procedure is based on the breakdown of the considered production process in predetermined modules. With the knowledge of the influencing factors (man, machine, process, material, and environment), which effect the performed quality of the fundamental processes, the effectiveness of the fundamental process with respect to the fulfilment of quality requirements can be determined. 9 Source: Fleischer, Spath, Lanza 2003, p. 52

For the optimisation of the start-up process, a closer consideration of start-up costs is required. Saving potentials within the start-up process Costs to make up for lost time Material costs (tools, samples) Components made by prototyping or pilot series tools Costs of logistics Costs of stocked goods Insufficient availability of components by the suppliers Costs of extra freight Start-up costs Personnel expenses Prototyping/ pilot shed/ start-up team Reworking measures in the case of quality deficiencies Bonus payments for special shifts Lower productivity in other divisions due to withdrawal of qualified employees Modification costs - production - Additional planning effort Communication effort Additional investment in machines and facilities Costs of information technology Additional investment in information and communications technologies Loss of marginal income lost sales Lower market share in the case of delayed market launch Depreciation period 10 Modification costs - product - Costs for new and modified components Re-sampling and anew release Scrapping costs (workpieces, supplier components, tools) Source: Based on Wiendahl, Hegenscheidt, Winkler 2002, p. 653

Control of efficiency Mastering and shortening the start-up process Strategies to respond Coordination of interests of all involved persons The effects of disruptive factors on the start-up system are investigated in the following step. Based on this investigation, improvement measures and strategies to react respectively can be developed. Examples for disruptive factors Company 2 Company 1 Orders on hand Investment in new tools Time between purchase order and approval Purchase orders Number of placed purchase orders for new machines Disruptive factors Tool availability Production of new machines Qualification level of employees Delivery time Quality level of Scrap rate of 40 production production - Delivery of new machines - Necessity of investment in - new machines - Need of new products Demand for a new product The cause of disruption originates from the system start-up The cause of disruption originates from preliminary or temporally parallel processes internal external - lacking process maturity of new production facilities - compatibility of the sub-systems of the production machinery - no series conditions for supplier components and tools during the first production start-ups - incomplete data base within the start-up phase - quality control involves difficulties due to product modifications and technical problems - unplanned product modifications - incorrect software - bad delivery performance, as supplier components may possibly be in the start-up phase, as well - many start-up projects at same time - problems to integrate the production machinery into the plant s or company s infrastructure 11 Source: Cp. Wiendahl, Hegenscheidt, Winkler 2002, pp. 653-654

Only by an integrated, inter-company spanned cooperation, the mastery of the start-up process is possible. Conclusion (I) The realisation of start-up targets as well as the effective exposure to challenges of the start-up process requires the consideration of the entire value chain. Isolated solutions do not consider the manifold interdependencies within the value chain. Producer of investment goods Diagonal information exchange OEM / Serial manufacturer Supplier / Supplier Serial producer / Serial manufacturer Supplier Vertical information exchange about critical subprocesses as well as the state of the start-up process according to the perspectives (employee, machine, process, material, environment) Horizontal information exchange about the critical sub-processes 12

Literature Fleischer, J./ Spath, D./ Lanza, G. (2003): Qualitätssimulation im Serienanlauf: Vorbestimmte Qualitätsfähigkeitskurven von Elementarprozessen. In: wt Werkstattstechnikonline, 93, (1/2): 50-54. Klinkner, R./ Risse, J. (2002): Auf den Anlauf kommt es an. In: Logistik Heute, 2002, (3): 38-39. Kuhn, A./ Wiendahl, H.-P./ Eversheim, W./ Schuh, G. (2002): Fast ramp-up: Schneller Produktionsanlauf von Serienprodukten. 1. ed., Dortmund, 2002. Laick, T./ Warnecke, G. (2002): Produktionshochlauf neuer Prozesse in der Produktion. In: ZWF, 97, (1-2): 43-46. Risse, J. (2002): Time-to-Market-Management in der Automobilindustrie: Ein Gestaltungsrahmen für ein logistikorientiertes Anlauf. Dissertation Technische Universität Berlin, Berlin, 2002. Wiendahl, H.-P./ Hegenscheidt, M./ Winkler, H. (2002): Anlaufrobuste Produktionssysteme. In: wt Werkstattstechnik online, 92, (11-12): 650-655. Wiesinger, G./ Housein, G. (2002): Schneller Produktionsanlauf von Serienprodukten: Wettbewerbsvorteile durch ein anforderungsgerechtes Anlauf. In: wt Werkstattstechnik online, 92, (10): 505-508. 13