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Build to Order in The Automotive Industry May 10 & 11, 2006 (002) Agenda Introduction Automotive industry and trends from a supplier's angle The Automotive supply chain Build to Order fulfillment and production aspects

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Presentation Transcript
slide2

Agenda

  • Introduction
  • Automotive industry and trends from a supplier's angle
  • The Automotive supply chain Build to Order fulfillment and production aspects
  • Supply chain execution and the role of RedPrairie's Build to Order Solution
slide3

Agenda

  • Introduction
  • Automotive industry and trends from a supplier's angle
  • The Automotive supply chain Build to Order fulfillment and production aspects
  • Supply chain execution and the role of RedPrairie's Build to Order Solution
slide4

Introduction

  • Personal
    • Henrik Bloch
    • Build to Order Product Manager
    • Product management, business consultant, including sales support
  • Background
    • IT background
    • Been working in the European Automotive Industry for 15 years
    • Worked with early JIT/sequencing systems as consultant in Germany
    • Working with implementing a commercially available standard BTO order fulfillment system for automotive suppliers from 1997
slide5

Agenda

  • Introduction
  • Automotive industry and trends from a supplier's angle
  • The Automotive supply chain Build to Order fulfillment and production aspects
  • Supply chain execution and the role of RedPrairie's Build to Order Solution
oems manufacturing strategies
OEMs Manufacturing Strategies
  • Move towards Build to Order and/orSequencing (ILVS/SILS) supply
  • Common Platforms
  • More car models
  • More car models on the same assembly line
  • Modular Supply
  • Outsourcing of the supply chain
  • Supply Base reduction
  • Lean production
  • Integrated quality management & process optimization
different cars one platform

Golf

Bora

Beetle

A3

TT

Octavia

Toledo

Leon

Different cars – one platform…
modules systems driving build to order
Modules & Systems - driving Build to Order

Modules & Systems requires that the supplier delivers:

Just-In-Time (JIT)

Products with low variability

or

Sequence-In-Line Supply (SILS)

Just-In-Sequence (JIS)

In Line Vehicle Sequencing (ILVS)

Build to Order (BTO)

The Same processes with different names

Products with high variability

slide10

Pressures on the automotive supply chain

  • Vehicles are made to order
    • Challenge of managing very complex supply chain
  • Increasing number of options
    • Requires late customization and in-sequence supply
  • Shorter lead time requirements
    • Process becomes mission critical with increased risk
    • Responding to rapid changes in ‘real-time’
  • OEMs are pushing inventory back up the supply chain
  • Inventory has to be minimized in the supply chain
slide11

Agenda

  • Introduction
  • Automotive industry and trends from a supplier's angle
  • The Automotive supply chain Build to Order fulfillment and production aspects
  • Supply chain execution and the role of RedPrairie's Build to Order Solution
slide15

Agenda

  • Introduction
  • Automotive industry and trends from a supplier's angle
  • The Automotive supply chain Build to Order fulfillment and production aspects
  • Supply chain execution and the role of RedPrairie's Build to Order Solution
slide16

Why did we want to target the automotive market?

  • RedPrairie has made some recent good wins in the automotive sector
  • Acquisition of the market leading Build To Order product (PowerB2O)
  • Ever increasing complexity of

automotive industry suits

Best of Breed solutions

redprairie value proposition
RedPrairie value proposition
  • RedPrairie offers market leading BTO process / assembly control
    • Operations are complex / one piece flow
    • High integration with line / test equipment
    • Not possible without best-of-breed systems
  • RedPrairie represents a proven and reliable BTO process and partnership
    • All applications are mission critical
    • Penalties of $25,000/minute/line for line stoppage - typically 5000 people per assembly plant
build to order customer references
Build to Order Customer references

Tier 1 Supplier Customers

slide23

Global challenge of automotiveMet by RedPrairie

Expanding Market = Eastern Europe, Mexico and China