Implementation of concurrent engineering in the suppliers to the automotive industry

Abstract

In the past the main processes in the introduction of a new vehicle into the market were developed by large manufacturers, or original equipment manufacturers (OEMs), and the vast majority of concurrent engineering (CE) research work was based on issues relevant to them. Today the situation has changed world-wide. Large companies outsource a great deal of high level engineering work to suppliers. This outsourcing is justified by lower costs and higher quality, and at the same time every company can use its resources in the areas it has technical expertise. However, most suppliers still follow the ‘build and break’ approach. The cost of introducing new approach such as CE, and adopting new technologies such as computer aided engineering (CAE) is substantial, as this cost adds to the operating costs and is only justifiable if it enables the development of higher quality products in less time with fewer people. The authors have examined a number of available CE frameworks and noted that these frameworks dealt with different aspects of CE in different degrees of detail. But they did not differentiate between the introduction of CE in large manufacturers on one hand and their suppliers on the other. This project is based on the recognition that a different approach to CE implementation is needed at the suppliers’ level. A three level framework has been proposed, i.e., (i) the environment in which the suppliers operate, (ii) a five stage implementation approach, and (iii) a CE tool portfolio. Implementation of the three level framework has started successfully at Tickford Engineering Ltd., which is a typical and fast growing supplier to the automotive industry.