Involving suppliers in concurrent engineering: learning from Japan in US auto

Abstract

The Japanese supplier management system is considered a benchmark for providing high quality products with short lead times, achieved through close integration between manufacturers and suppliers in the early stages of product development. US automakers have been reengineering their product development systems along the lines of the Japanese model and outsourcing an increasing level of vehicle content and design responsibility to their supply bases. The purpose of this paper is to report on the evolving models for supplier involvement in concurrent engineering in US auto, through interviews conducted from 1998-1999. Case examples illustrate that the US auto companies have been evolving the Japanese model, including higher levels of outsourcing of modules and systems. Yet, OEM policies and practices have not evolved to a point needed to support the great responsibility being shunted onto suppliers. The auto case identifies a variety of models of supplier integration in concurrent engineering and the necessary infrastructure for effectiveness.