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Presented at DUTIV.org September 2004 Canadian Automotive Industry Canadian Assembly Plants ASSEMBLER PRODUCTS Vehicles Key to the North American Market CAMI Suzuki Equinox * ** DAIMLER/CHRYSLER Magnum / 300M * ** Dodge Caravan / Chrysler Town & Country 2004 Pacifica* FORD

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Presented at DUTIV September 2004


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presented at dutiv org september 2004
Presented at DUTIV.org

September 2004

Canadian Automotive Industry

slide2

Canadian Assembly Plants

ASSEMBLER

PRODUCTS

Vehicles Key to the North American Market

CAMI

Suzuki Equinox * **

DAIMLER/CHRYSLER

Magnum / 300M * **

Dodge Caravan / Chrysler Town & Country

2004 Pacifica*

FORD

Freestar * (formerly Windstar)

F-Series Pickup

Crown Victoria / Grand Marquis / Marauder*

GM

Chevrolet Impala, Monte Carlo *

2004 Grand Prix*

Chevrolet Silverado / GMC Sierra Trucks

Buick Century, Regal *

HONDA

Acura EL* / Civic Hatchback *

Odyssey, Pilot*

Acura MDX

Coming- A Pick-up Truck

TOYOTA

Corolla

Matrix, Lexus RX 330

Canadian Auto Industry - ABCAN Consulting©

* Solely Ontario-Sourced ** New Vehicle Launch

Source: APMA

canadian assembly plants
Canadian Assembly Plants

Total 550,000 people employed in the industry.

20 assembly plants

550 parts manufacturing plants

Capacities (000):

Oshawa (566)

Brampton (250)

Alliston (368)

Oakville (294)

Cambridge (211)

Ingersoll (107)

Windsor (273)

St. Thomas (237)

Source: APMA

Canadian Auto Industry - ABCAN Consulting©

parts manufacturers
Parts Manufacturers

International

  • Dana
  • Delphi
  • Ube
  • Nemak
  • Eaton
  • Textron, Oetiker
  • TRW, Lear Seating
  • Johnson Controls

Canadian

  • Magna
  • Woodbridge
  • Linamar
  • Wescast
  • ABC Group
  • Dominion
  • AG Simpson
  • Trillium Metal

Canadian Auto Industry - ABCAN Consulting©

vehicle production 1992 2003

3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

0

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004 Est.

Source: APMA

Source: APMA

Vehicle Production 1992-2003

Canadian Auto Industry - ABCAN Consulting©

oem supplier shipments 1991 2003
OEM Supplier Shipments 1991-2003

NAFTA

Source: APMA

Canadian Auto Industry - ABCAN Consulting©

canada us automotive trade
Canada – US Automotive Trade
  • $67 b cars and trucks
  • $24 b parts, engines
  • $26 b cars and trucks
  • $38 b parts, engines

Source: Statistics Canada 2002

Canadian Auto Industry - ABCAN Consulting©

automotive statistics canada
Automotive Statistics, Canada
  • Shipments of all vehicles and parts: $100 billion+
  • 23.2 hours of labor per vehicle (19.9 per light) car assembly
  • Total 550,000 employed by the industry
  • 20 plants, 554 parts manufacturers, 3,600 dealerships
  • 2.6 million units production, 1.7 million units domestic sales
  • Production: 55% cars, 45% light trucks, vans, utility
  • 19 million vehicles in operations, 2.3% of world’s share
  • $82.7 billion vehicles sold at 3,600 dealers in 2002
  • $17.4 billion parts sold at after market

Canadian Auto Industry - ABCAN Consulting©

automotive statistics canada9
Automotive Statistics, Canada
  • 12% of GDP comes from the automotive sector
  • 85-90% of production is exported
  • 8th largest vehicle manufacturer in the world
  • $22 billion direct investment over the last decade
  • $7.2 billion trade surplus per year
  • Cost of manufacturing: USA = 100, Canada = 94

Canadian Auto Industry - ABCAN Consulting©

automotive statistics north america
Automotive Statistics North America

2002CanadaUS Mexico

Population 32 m 290 m 102 m

Vehicle Sales 1.7 m 17.1 m 1 m

Production units 2.6 m 12.3 m 1.8 m

Assembly Employees 51,000 331,100 57,500

Parts Mfg. Employees 98,100 489,400 390,000

Vehicles per Assembler 52 37 31

Light Auto labour hrs. 20-24 21-29 …

Production per 1000 84 43 18

Sales per 1000 people 55 59 10

Canadian Auto Industry - ABCAN Consulting©

competitive applications
Competitive Applications
  • Continuous productivity improvement and cost reductions
  • JIT and TQM applications, especially on shop floor
  • Focus on certification of suppliers
  • More modular systems manufactured by Tier 1 suppliers
  • Integrated R&D with OEM using concurrent engineering
  • Integration of supply chain, shop floor control, ERP systems
  • Sequenced delivery, eliminating inventory for expensive items
  • QS9000 and TS16949 standards with process orientations

Canadian Auto Industry - ABCAN Consulting©

trends to watch
Trends to watch
  • Supply chain visibility from OEMs into Tier 2 companies
  • Synchronized planning and execution (OEM  Tier 1  Tier 2 )
  • More ERP, CRM and SRM integration
  • Collaborative Planning Forecasting and Replenishment (CPFR)
  • Six sigma and lean manufacturing applications
  • Tier 0.5 concept is in the works
  • Outsourcing of IT, logistics, HR, and similar services
  • Global optimization of after market supplies
  • Environmentally friendly and fuel-efficient vehicles
  • Hybrid vehicles, fuel cells, solar power

Canadian Auto Industry - ABCAN Consulting©

inventory in supply chain

Inventory

Inventory

Inventory

Inventory

Inventory

Inventory

Inventory in Supply Chain

WIP

FG

RM

OEM

Tier 1

Tier 2

TRADITIONAL MANUFACTURING COMPANIES

Lead times are long, weeks or months

planning

SRM

planning

SRM

planning

OEM

Tier 2

Tier 1

Delivery

Delivery

Manufacturing

Assembly

Manufacturing

ADVANCED COMPANIES REPLACE INVENTORY WITH INFORMATION

CAPACITY IS REPLACED WITH CAPABILITY TO DELIVER

Lead times are very short; hours or minutes

Canadian Auto Industry - ABCAN Consulting©

just in time delivery example

JIT

OEM

Bulk delivery

Just in Time Delivery - Example

JIT Warehouse

Supplier

Demand Pull

  • Supplier delivers bulk shipments to JIT Warehouse based on use and set limits
  • Warehouse breaks the inventory into smaller delivery containers
  • OEM sends Kanban pull request to the warehouse based on consumption
  • Warehouse delivers specific replenishment quantity to OEM

Canadian Auto Industry - ABCAN Consulting©

slide15

Other 1st Tier Suppliers

OE Painted

Body Storage

Point of Pay

OE Assembly Line

1st Tier

Facility

JIT Broadcast

Point of Assembly

JIT

Sequenced

Sequencing Assembly Line

Returnable containers

JIT Synchronization - Example

Canadian Auto Industry - ABCAN Consulting©

oem satellite model
OEM Satellite Model

2nd

Tier

2nd

Tier

2nd

Tier

1st

Tier

2nd

Tier

2nd

Tier

1st

Tier

OEM

Tier

0.5

2nd

Tier

2nd

Tier

2nd

Tier

2nd

Tier

2nd

Tier

2nd

Tier

1st

Tier

2nd

Tier

2nd

Tier

2nd

Tier

Canadian Auto Industry - ABCAN Consulting©

canadian investments in automotive industry turkey
Canadian Investments in Automotive Industry - Turkey
  • Dominion Spring and Stamping (Dominyay ve Makina Sanayii) serving Mekaplast, Bosch, Teba, Arcelik, etc.
  • Intier (via Italy)
  • Technology transfers possibilities
  • License agreements possibilities

Canadian Auto Industry - ABCAN Consulting©

canadian turkish business council www ctbc ca
Canadian Turkish Business Councilwww.ctbc.ca
  • Promotes bilateral trade/investment between Canada and Turkey
  • Volunteer and not-for-profit, run by corporate representatives
  • Establishes a forum for business and investment
  • Provides networking and experience sharing
  • Facilitates access to each market
  • Regular trade missions by senior level business and government, one scheduled Spring 2005 to Turkey
  • Advocacy for Canadian-Turkish business interests
  • Sponsored by Canadian Manufacturers and Exporters, Ontario Investment, International Trade Canada, …
  • Counterpart: DEIK and Turkish Canadian Business Council

Canadian Auto Industry - ABCAN Consulting©

abcan consulting inc www abcanconsulting com

ABCAN

ABCAN Consulting Inc.www.abcanconsulting.com
  • Consulting in supply chain, operations management, industrial engineering, enterprise resource planning
  • Solutions for manufacturing companies in supplier relationship management (SRM), ERP, JIT, CI
  • Education and training in operations management
  • 25 years of expertise in manufacturing, ERP, JIT, SCM, SRM and integration of business systems
  • Offices in Canada, US and Turkey

Canadian Auto Industry - ABCAN Consulting©