Automotive Supply Research Articles

Safety Concepts for Future Electromechanical Brake Central Control Systems

<div>Electromechanical brakes (EMB) are currently coming into focus in the automotive industry. This trend was confirmed in 2022, when a first automotive supplier [<span>1</span>] announced the series production of EMB systems. One major driver is safety, especially if EMB systems are implemented with smart actuators that install redundant electronic control units (ECU) and distributed software [<span>1</span>]. Earlier, the authors have addressed safety mechanisms in EMB actuators [<span>2</span>]. In this article the authors extend their investigation to address safety mechanisms in future EMB central control systems (CCS). Impact of different brake system topologies (X-, H-, centralized) vis-à-vis potential safety mechanisms within communication buses and ECUs is analyzed.</div>

Mitigating data inaccuracy and supply chain challenges in Western Romania's automotive industry

The purpose of this paper was to emphasize the importance of data accuracy within internal logistics systems and their extended influence on supply chains in automotive industry through 6-month multiple case studies conducted on 3 first tier original equipment manufacturers (OEM) based in Western Romania. The study investigates the most common causes of data inaccuracies among automotive suppliers and their approaches to reduce consequential supply chain issues and be more agile. Data collection and analysis revealed that main issues arise due to ordering quantities mismatching actual customer demand, a wide range of order lot sizes, lead times and delivery reliability concerns and the reluctance to shift away from mainstream cost-effectiveness and towards strategic added value thinking. These issues sourced significant other related operational challenges such as excessive inventory, short-term stockouts and subsequent express shipping services or product-related inconveniences (quality and capacity levels, contracted volumes and dedicated lines). The paper sources different logistics and supply chain strategies used by the 3 OEMs, their features and operational performance, as well as their overall effectiveness, which can be applied by other automotive industry suppliers to improve own results. Introducing more reliable real-time data collection tools and performance metrics has started hauling more focus towards solving these prevalent issues with some ongoing improvement projects showing up to 25% better results. For one of the 3 OEMs introducing a new warehouse management system has already sourced an overall quality increase (5 percentage points) due to a 60% higher utilization of its production equipment.

Are German Automotive Suppliers in the Commodity Trap? Risks and Potentials of the Taiwanese Platform MIH EV Open

Are German Automotive Suppliers in the Commodity Trap? Risks and Potentials of the Taiwanese Platform MIH EV Open

Total Quality Management Lean Practices and Firm Performance: Integrated Approach Using MBNQA Criteria in the Thai Automotive Industry

Abstract In an increasingly competitive global automotive landscape, the strategic integration of Total Quality Management (TQM) and Lean Practices (LP) has emerged as a crucial determinant of operational excellence and sustained organizational performance. Grounded in empirical evidence from the Thai automotive sector, this study explores the intricate synergies between TQM with Malcom Baldrige National Quality Award (MBNQA) dimensions, lean implementation, and firm performance. This study employs the quantitative research method, where the measurement scales for each construct were adopted from the literature and reviewed by academics. Data were collected from 854 manufacturing firms in Thailand through a mail survey method. This study applied a two-step structural equation modeling (SEM) process. The findings reveal a robust direct effect of TQM (leadership, strategy planning, customer and workforce focus) on firm performance, underscoring its pivotal role. Notably, TQM also exhibited a substantial indirect effect on business performance, mediated sequentially through lean practices including continuous flow, 5S, and total preventive maintenance. Lean practices similarly demonstrated significant direct and indirect effects on firm performance. Collectively, the combined effects of MBNQA and lean practices on firm performance was also observed, substantiating their complementary contributions. These findings hold significant implications, both from an academic and a practical standpoint. From a theoretical perspective, this research enriches the discourse by providing empirical insights into the mediating roles of lean practices, elucidating the paths through which TQM's performance-enhancing effects can be transmitted. Concurrently, the magnitude of the impact these practices have on firm performance underscores their practical relevance, and insights derived from this study could play a key role in guiding automotive firms and suppliers to align critical components to drive performance excellence.

An AHP-based evaluation framework for automotive stamping suppliers

PurposeThis study aims to establish a robust evaluation framework for suppliers within the automotive supply chain, specifically in the stamping sector. The primary objectives are to elucidate the performance criteria of suppliers, identify indicators and scales for measuring these criteria and find the importance of the criteria.Design/methodology/approachThe evaluation framework comprises a criteria hierarchy and indicators developed based on the evaluation criteria of major automotive manufacturers. Specific indicators and measurement scales are recommended for assessing suppliers. Importance weights for the criteria are assigned based on the input of nine experts using the Analytic Hierarchy Process (AHP). Finally, four sheet metal stamping tooling (SMST) suppliers are evaluated by four specialists using the proposed evaluation framework.FindingsThe study introduces a novel classification of criteria, encompassing financial and commercial perspectives, delivery capability, supplier facility and cultural approaches and business process necessities. The findings underscore the significance of financial and commercial stability in the selection of SMST suppliers, emphasizing their role in mitigating risks associated with disruptions, bankruptcies and unforeseen events. Additionally, several SMST evaluation factors identified in this study contribute to the development of resilience capabilities, highlighting the crucial importance of their inclusion and assessment in the proposed evaluation framework.Originality/valueThis research presents a comprehensive model for evaluating SMST suppliers, which tackles the multidisciplinary challenges within the automotive supply chain. Given the inadequacy or nonexistence of current SMTS selection models, this study bridges the gap by exploring potential and necessary criteria, alongside 116 specific indicators and measurement scales.

Role of IIoT as New Business Model Innovation in the Manufacturing Industry

The manufacturing Industry in Europe plays a significant role in economic growth and development. Given the increased role of technology in this sector, the Industrial Internet of Things (IIoT) is one of the technological advancements that improve the Business Model (BM) efficacy in various manufacturing industries. However, research into the role of IIoT as a BM in the manufacturing industry is limited despite its contribution to the success and performance of the firms. Therefore, this study explores the role that IIoT plays as a BM in various manufacturing industries. A survey was conducted utilizing open-ended questionnaires across 60 manufacturing firms in Europe including automotive suppliers, information and communication, machine and plant engineering, electrical engineering, and medical engineering. The findings indicate that IIoT as a BM has different levels of contribution across the manufacturing industry with glaring variations in terms of performance between information and communication firms as well as automotive. This study can act as a guideline for further research on the complex relationship between IIoT as a BM and firms’ performance to influence decision-making processes within the manufacturing industry. Given that this is a pre-study, the limitations, and recommendations for future research are highlighted.

Self-optimizing digital factory twin: an industrial use case

AbstractDigital Twins (DTs) are intended to be utilized for a wide range of applications, promising benefits like visualization, monitoring, simulation and control of a physical system. Not only the development of a DT for a production facility is a time-consuming task, but also to keep the virtual counterpart up to date in the use phase. In this work, the implementation of an industrial-scale DT of an automotive supplier production site based on a Discrete-Event Simulation (DES) model with self-optimization capabilities for easier maintainability and increased simulation accuracy is presented.

Differences in CEO Communication Strategies between High- and Low-Performing Firms in the Global Auto Parts Industry

This study focuses on how global automotive suppliers manage innovation by analyzing keywords in CEO messages. Given that CEOs significantly shape innovation strategy, the intricate dynamics of open innovation and the role of CEO characteristics in its adoption warrant further investigation. Accordingly, the research unfolds in three stages: (1) extracting keywords related to innovation highlighted in CEO communications, (2) contrasting the deployment of these keywords between high-performing and low-performing companies, and (3) deciphering the nuances of innovation management by interpreting the underlying meaning and structure of these keywords. This comparative analysis between top and bottom performers underscores stark contrasts in keyword emphasis. Through eigenvector centrality, mapping open innovation’s success factors pinpointed provision of resources and governance as pivotal in top-performing firms. Notably, the preferred keywords among leading firms reflect their current challenges and innovative management direction. Thus, to embody agile and visionary leadership in open innovation, CEOs should strategically incorporate and highlight keywords aligned with critical factors of open innovation in their communications. These insights offer valuable benchmarks for less successful firms aiming to refine their approaches to innovation management, vision, and strategy.

Investigating the impact of smart manufacturing on firms' operational and financial performance

PurposeSmart manufacturing (SM) lies at the core of Industry 4.0. Uniform adoption of SM across business partners is crucial to exploit its value creation potential. However, firms' willingness to invest in SM is limited by insufficient or inconclusive evidence on its performance-related benefits. To close this gap, this paper develops and tests a model linking SM adoption to firms' financial performance. Improvements along the four dimensions of operational performance (i.e. cost quality, delivery and flexibility) mediate this relation.Design/methodology/approachThis study follows an empirical research approach. In particular, survey data from 234 automotive component suppliers are analyzed via covariance-based structural equation modeling to explore the link between SM adoption and operational performance. Survey data are then matched with secondary data from balance sheets of 81 firms to investigate the impact of SM on financial performance via partial least square structural equation modeling.FindingsFindings highlight that adoption of SM results in improvements in cost, quality, delivery performance, thus suggesting that SM is a mean to overcome performance trade-offs. Improvements in operational performance enabled by SM do not give rise to superior financial performance, thus implying that SM might support firms in maintaining the competitive position in the market, but could be insufficient to generate higher margin.Originality/valueResults have implications for SM research and for manufacturing executives engaged in the adoption of SM, as they provide a detailed analysis of the impact of SM on operational performance and clarify the effect that SM adoption has on financial performance.

Roadmap to achieve operational excellence through Lean Management implementation and quality management system conformance

Automotive companies are facing major challenges, namely competitiveness and the evolution that characterizes the sector. To ensure their sustainability, companies operating in the automotive industry are concentrating their efforts on reducing waste sources throughout the supply chain by implementing a variety of Lean Management tools. The compliance of the quality management system with the requirements of the international automotive standard IATF 16949:2016 is also a top priority for automotive suppliers. IATF certification is required to operate in the automotive market and enables organizations to meet customer requirements and demonstrate the quality assurance of their systems. This paper analyzes the principles of the Lean Management organizational tools in correlation with the requirements of the IATF automotive standard and determines their synergistic impact on operational excellence. Based on the correlation analysis performed, an original roadmap that will serve as a guide for automotive companies has been developed. The findings show that in order to achieve operational excellence, it is necessary to implement the five Lean Management organizational tools in correlation with the operational requirements dictated in chapter 8 as well as the leadership requirements outlined in chapter 5 of the international automotive standard.

Making Cognitive Ergonomics in the Human–Computer Interaction of Manufacturing Execution Systems Assessable: Experimental and Validation Approaches to Closing Research Gaps

Cognitive ergonomics and the mental health of production workers have attracted increasing interest in industrial companies. However, there is still not much research available as it is regarding physical ergonomics and muscular load. This paper designs an experiment to analyze the cognitive ergonomics and mental stress of shop floor production workers interacting with different user interfaces of a Manufacturing Execution System (MES) that is adjustable for analyzing the influence of other assistive systems, too. This approach is going to be designed with the Design of Experiments (DoE) method. Therefore, the respective goals and factors are going to be determined. The environment will be the laboratories of the University of Applied Sciences Amberg-Weiden and its Campus for Digitalization in Amberg. In detail, there will be a sample assembly process from the automotive supplier industry for demonstration purposes. At this laboratory, the MES software from the European benchmark SAP is installed, and the respective standard Production Operator Desk is going to be used with slight adaptions. In order to make the cognitive ergonomics measurable, different approaches are going to be used. For instance, body temperature, heart rate and skin conductance as well as subjective methods of self-assessment are planned. The result of this paper is a ready-to-run experiment with sample data for each classification of participants. Further, possible limitations and adjustments are going to be discussed. Finally, an approach to validating the expected results is going to be shown and future intentions are going to be discussed.

A web-based interactive decision support system for a multi-objective lot-sizing and production scheduling model

In the course of globalization and the corresponding steadily growing market dynamics, companies are faced with an increasing challenge to remain competitive. Therefore, the efficient use of the available resources, while maintaining a high level of service and customer satisfaction, is a key instrument for ensuring success. Within this framework, production scheduling can be seen as one of the most decisive operational activities of a manufacturing company, with the production orders being sequenced in a way that allows the achievement of an efficient allocation of the available resources. Furthermore, the correlated lot-sizing represents a crucial influencing factor in production scheduling. In this article, a novel methodology to solve multi-objective lot-sizing and production scheduling problems is proposed. Essentially, it provides an interactive three-phase framework that supports a procedure for simultaneous decision-making regarding lot-sizing and production scheduling. The main goal is not only to find an appropriate production schedule that best meets the decision-maker’s preferences but also to gain a deeper insight into the relationship among criteria and a better understanding of possible trade-offs between competing objectives. To guide the user through the whole decision-making process, a web-based interactive application was developed. The proposed methodology was applied to a case study regarding an automotive supplier company, revealing itself as a viable and practical technique able to solve real-world multi-objective lot-sizing and production scheduling problems in the manufacturing industry.

The Electric Vehicle Supply Chain Ecosystem: Changing Roles of Automotive Suppliers

The automotive industry is evolving due to the increasing adoption of Electric Vehicles (EVs). This transition has impacted automotive vehicles and led to profound changes in the supply chain ecosystem. Through a comprehensive review of the available literature and industry reports, this research investigates the automotive industry’s transition towards EVs and subsequent supply chain transformation, focusing on the changing roles of automotive suppliers. In this paper, we assess these transformations from economic, environmental, and strategic viewpoints. We examine the impact of these changes on supplier relationships, supplier OEM collaboration, and new entrants’ potential for disruption, as well as propose strategies for suppliers to effectively navigate this transformation, ensuring competitiveness in the evolving EV landscape. Finally, we discuss opportunities and challenges in EV supply chain research.

Examining the dynamics of bargaining power in buyer-supplier negotiations: insights from a case study in the German automotive industry

ABSTRACT Buyer-supplier negotiations play a central role in supply chain networks regulating the conditions for the exchange of goods. This paper investigates the relationships between influencing factors and their impact on bargaining power. In a multiple case study, we triangulate secondary data from 12 German automotive suppliers. Following a structural equation modelling approach, bargaining power and the effects of those influencing variables are analysed. Four relationships can be found. (1) The availability of internal resources and the existence of strong buyer-supplier relationships have a positive effect on bargaining power. (2) A positive influence of buyer-supplier relationships on gaining access to internal resources can be identified. (3) External market conditions have a small negative effect on bargaining power. (4) No significant effect can be found looking at the impact of external market conditions on internal resources or buyer-supplier relationships. The findings support theory by showing that internal resources and strong buyer-supplier relationships positively influence bargaining power. Based on these results, managers are advised to prioritise strategic resource allocation, implement win-win strategies, and employ benchmarking techniques to enhance competitiveness and strengthen bargaining positions.

How Do External Networks and Strategic Targeting Impact Open Innovation in the Global Auto Industry

This research examines the interactions between open innovation (OI) strategies and competitive behavior in global automotive assemblers and suppliers. We show that these firms behave differently when engaging external networks to limit downside risks when dealing with competitors (and rivals). Specifically, we find that firms cross external firm boundaries for incremental, but not radical technology projects using nominal external links. Our results are aligned with emerging innovation trends in the auto industry where the locus of innovation has evolved upstream in the digital age, from final assemblers to suppliers. This study provides support for a theory to explain inter-firm competitive dynamics within OI contexts. In particular, it provides an explanation for boundary selection criteria when engaged in OI projects. We conclude with implications for theory and practice and provide guidance for potential future research.

Uninterrupted in-situ compression of automotive expanded polypropylene, imaged via synchrotron X-ray computed tomography

Synchrotron radiation at the ESRF was used to scan an uninterrupted uniaxial compression test of Expanded Polypropylene samples sourced from two automotive component suppliers. The samples, nominally 80 kg.m-3 were compressed at a constant quasi-static rate of 10 μm.s-1, avoiding an interrupted, stop-start approach that has previously been adopted for scanning cellular solids.

The Impact of Industry 4.0 on Business Performance: A Multiple Case Study in the Automotive Sector

Industry 4.0 (I4.0) is a transformative industrial paradigm that encompasses a set of technologies and principles that are increasingly essential for companies operating in the automotive sector. By embracing the principles and implementing the associated I4.0 technologies, automotive companies have the potential to improve their overall business performance, foster greater collaboration within the supply chain (SC) ecosystem and thereby strengthen their competitive edge. These technologies drive innovation, enabling the development of sustainable solutions and the alignment of products with ever-evolving customer demands. Therefore, this study explores the complex interplay between I4.0 technologies and business performance by providing insights from a multi-case study in the automotive sector. As the exploratory nature of this research is driven by the exploration of pathways, topics such as the implementation of I4.0 technologies, their impact on business performance and current important industry issues such as reshoring and the circular economy (CE) were also discussed. A research protocol was developed and semi-structured interviews were conducted with senior managers from six leading European automotive suppliers. The results show how significant improvements in business performance can be achieved by implementing advanced I4.0 technologies aimed at automating processes and making production lines more flexible. This led to improvements in productivity and product quality, while reducing production costs through the strategic use of available data. Furthermore, European automotive suppliers are engaging in collaborative initiatives with other SC actors to stay abreast of emerging innovation trends, to meet customer needs and to help share knowledge and resources. Overall, the implementation of I4.0 technologies leads directly and indirectly to more sustainable production and efficient resource management, as I4.0 technologies are designed to be energy efficient and reduce emissions.

Emotional intelligence and analytical skill as human capital factors influencing competitiveness through analysis of Toyota Kata, Kaizen and Quality 4.0: empirical study conducted during COVID-19

PurposeThis study empirically tests a model of human capital (HC) factors affecting the organisational competitiveness (OC) of automotive parts suppliers in the Industry 4.0 framework, including concepts such as Toyota Kata (TK), Kaizen and Quality 4.0, during the coronavirus disease 2019 pandemic.Design/methodology/approachAn instrument was created to measure emotional intelligence (EI) and analytical skill (AS) as input variables and OC as the output variable. The instrument was distributed electronically to Tier 1 non-technical employees in Nuevo León and Querétaro, México. A total of 195 surveys were obtained. The instrument used stepwise multiple linear regression.FindingsThis study proposes a model to strengthen the OC of Tier 1 automotive parts supply industry from the perspective of HC factors. Furthermore, it is shown that EI and AS have a positive and significant impact on OC.Practical implicationsFrom an HC perspective, this study provides a useful basis to improve OC for researchers, industry experts and managers at different levels of the automotive industry, including the triple helix (academia, industry and the government).Originality/valueNo studies simultaneously test the relationship of EI and AS to OC; therefore, this study fills a gap in the literature. Furthermore, the study explored the literature on individual Kaizen (IK) and TK, leading to a contrast between the definitions of EI and AS. Finally, for EI, a reference to motivation was found in the IK. In the case of AS, an orientation to ability of problem solving was found in TK.

Improving Automotive Component Supplier Service through Physical Distribution Activities to Original Equipment Manufacturers (OEMs)

Purpose/objectives: The purpose of this study was to investigate whether physical distribution activities can significantly improve customer service for automotive component suppliers to Original Equipment Manufacturers (OEMs) in the Eastern Cape. Design/methodology/approach: By means of non-probability sampling, namely convenience sampling, 50 automotive component suppliers in the Eastern Cape were visited. Each business firm received four questionnaires to be completed by logistics practitioners. Altogether, 126 usable questionnaires were returned. The data were collected by means of a survey using a self-administered, structured questionnaire. Findings/results: The results indicated that physical distribution activities, such as transportation management and order processing, were significant predictors of customer service. Practical implications: The results have managerial implications where the logistics department should continuously update its transportation and order processing systems to keep abreast of the best practices within the automotive industry. The results could be used by managers to highlight the benefits of improved customer service, focusing on a firm’s transportation and order processing activities. Originality/value: Based on the results of the study, it is recommended that automotive component suppliers in the Eastern Cape employ transportation management and order processing (activities of physical distribution) to improve customer service. It is also recommended that the automotive component suppliers regularly benchmark their logistics practices against world-class business firms, as the results may have a positive effect on the way transportation and order processing activities are managed and executed if customer service is to be improved.

Implementation of Apriori Algorithm for Determining Spare Parts Product Recommendation Packages

The aim of this research is to determine recommended product packages for spare parts from an automotive parts supplier. Shop owners have faced challenges in meeting customer demands over the past few months, experiencing frequent stockouts of spare parts due to a manual transaction recording system and a manual checking system for spare parts storage. This inefficiency and lack of accuracy in managing in-demand spare parts prompted the application of the apriori algorithm, a data mining method. Data was collected from the total sales over the past three months, subsequently cleaned and transformed for manual and Python-based apriori calculations. The results, obtained through both manual and Python implementations of apriori, indicate that the two frequently occurring item sets are oil filters with a confidence value of 68% and air filters with a confidence value of 63%. Based on these findings, the study recommends spare parts stores to maintain higher stock levels of oil filters and air filters compared to other spare parts.