It is right to link this topic to what we discussed inChap. 1regarding ‘‘make-or- buy’’ policies and technological aspects developed autonomously by Specialized Suppliers (Sect. 1.5).
It is to be underlined that the actual trend in vehicle development, as much as possible in a modular concept, on one hand simplifies final assembly operations and on the other obliges first level suppliers to localize their productive activities near the Final Assembly Plants.
Purchasing policies adopted recently by ‘‘carmakers’’ tend to create stable and even more engaging relationships, according to the ‘‘extended enterprise’’ model, which involves first level suppliers in ‘‘co-makership’’. As a consequence, less expensive and higher quality supplies are obtained through open agreements over the long term and through shared efficiency plans, in relation to final product competitiveness targets.
Changes that occurred in the main ‘‘carmaking’’ organizations and new trends affirming the supply of vehicle space frame modules (brakes-suspension modules) are summarized in the scheme in Fig.7.1.
Another example is represented by vehicle air conditioning systems: from the procurement of single components to complete conditioning subsystems, made by components partially connected to cockpit modules (controls, controlling devices and secondary thermal traders), partially to the vehicle’s ‘‘front-end’’(sensors and primary thermal traders) and partially to the engine (compressor). Pipes for
air diffusion and relative regulation systems inside the vehicle are developed in
‘‘co-design’’.
First level suppliers are even more involved as co-makers, sharing new models launched by the ‘‘carmakers’’ risks and opportunities. At the right time, component producers must try to expand their deliveries to more
‘‘carmakers’’ so that they can reach a good economy of scale, avoiding dependence on only ‘‘one customer’’.
‘‘Co-design’’ is a critical factor for success in ‘‘co-makership’’ and can be achieved by extending Simultaneous Engineering methodologies to First Level Suppliers, according to methods indicated inChap. 2.A First Level Supplier receives from the Purchaser prescriptions for functionality of components and subassemblies to be developed, and proceeds autonomously in industrialization, up to the final supplied product qualification, engaging to respect development programs, obtaining established functionality and quality requirements (Product Functional Deployment and Quality Rate, according to what was discussed inSect. 2.1) and assuring availability of quantities at the shared cost.
In Table7.1, know-how profiles are laid out for cooperation between carmakers and suppliers, related to the development of the vehicle’s components and subassemblies.
Modules and subsystem suppliers must have an appropriate engineering and research centre; they must be able to coordinate their sub-suppliers, assuring necessary integration; to determine product functions, they must also set a tech- nical after sales network, to support the carmaker properly in the several geo- graphical areas of vehicle commercialization.
In choosing suppliers in class A), B) and D), the capacity to promote innovative solutions and supply competitive products is the first consideration; another important point to evaluate is the availability of productive sites near the car- maker’s Final Assembly Plants (whenever logistic complexities and special cus- tomers’ taxes are in place).
In Table7.2, purchasing policies actually used by major carmakers in relation to the respective targets are shown.
STANDARD AND SPECIFICAL SEMIFINISHED
PARTS SUPPLIES
STANDARD PARTS, SUBASSEMBLIES AND COMPONENTS SUPPLIES
INTEGRATED FUNCTIONAL MODULES
AND COMPONENTS SUPPLIES
iron castings, forged and printed steels, ball bearings, brakes system components,
shock absorbers and suspension springs, sensors
and ABS devices
wheel brakes axle subassemblies, suspension and
brake system other components, electronic control
system
wheel groups, other suspension elements, integrated braking system
In the past Actually In the future
Fig. 7.1 Carmakers historical trend for global sourcing
The matrix shown in Fig.7.2 lays out the logic for suppliers’ choice and industrial co-operations and the development decision-making process.Please note that while Supplier Know-How reflects the level of technological complexity of the supplies, the Supply Logistics’ Complexity reflects exactly what was examined inSect. 6.3in terms of material handling (material classification).
Table 7.1 Carmakers—suppliers co-operations A Modules and subsystems supplier, co-
design with ‘‘carmaker’’
•More capacity for technological integration
•Autonomous capacity for development and experimentation
•Establishment of project’s attitude, with setting of challenge targets
•Market leadership in business area B Components supplier, developed
autonomously and in relation to specific applications
•High technological specialization
•Autonomy in development of standard solutions
•Wide customer range
•High economy of scale C Components supplier with carmaker
design
•Design contribution focused on manufacturability
•Ownership of production processes
•Lean production organization D Standard components and raw materials
supplier
•Capacity to offer materials with current technologies
•Capacity to offer materials with continuity and at competitive prices, according to market trend
Table 7.2 Carmakers purchasing policies
Policies Objectives
Rigorous selection of suppliers based on innovation capacity, qualitative levels and competitiveness of products and services offered
Concentration on a few highly qualified suppliers, with advantage of economy of scale and avoiding monopoly positions
Supply management simplification Development of range of suppliers on a
worldwide basis, switching to dedicated and, when possible, localized industrial sites
Activate supplies from worldwide industrial areas, based on lower industrial cost logic Following vehicles’ productive capacity development in the strategic worldwide markets
Involving Suppliers for product innovation and to realize highly competitive productive capacities
Offer final product consistent with market requirements to customers
Shorten new products’ ‘‘time-to-market’’
Reduce carmaker investments Use of modern WEB techniques and ‘‘e-
Procurement’’methodologies
Make easier exchanges on a worldwide basis Optimize purchasing tenders
Minimize structures dedicated to supplies