Global Automotive Manufacturing Research Articles

Implementing Zero Impact Factories in Volkswagen’s Global Automotive Manufacturing System: A Discussion of Opportunities and Challenges from Integrating Current Science into Strategic Management

The current exceeding of six out of nine planetary boundaries requires a significant transition of human societies towards absolute sustainability. Industrial manufacturing systems were and still are an important motor for socio-economic development but at the cost of a significant negative impact on the biosphere. Current concepts in absolute sustainability and sustainable manufacturing provide solutions for sustainability transitions in industry, but various methodological, technical and procedural challenges arise during their adaptation in industrial practice. The development and operationalization of a “zero impact factory” strategy by Volkswagen Group has identified various implementational challenges, which are discussed in this article. First, an overview of motivations for “zero impact” transformations in industry are pointed out. Second, relevant aspects for the strategic management of sustainability transitions in manufacturing companies are highlighted based on a literature analysis. Third, the strategy development process is explained based on a systematic structure, which includes design-thinking principles for sustainability transitions of large technical systems such as factories in global manufacturing systems. Fourth, the developed strategy content is presented, including (1) the strategy vision, (2) the defined quantified “zero impact” goals, (3) a system model and a prototype of a zero impact factory, (4) the developed “Impact Points” and the “Site Checklist” methods (for evaluating the environmental transformation of a factory) and (5) the definition of processes for strategic management during strategy operationalization. Finally, various organizational challenges and opportunities are pointed out, which are considered novel insights from industrial practice and relevant for the science-based strategic management within automotive companies and other global industrial manufacturing organizations, as well for advancing sustainability concepts in applied industrial science.

Material substitution to reduce the environmental impacts in construction of car body manufacturing plants

The efficient use of resources is a key driver for reconciling nature and technology in the automotive manufacturing process. Resource efficiency not only considering the final product but also the construction of the manufacturing system is therefore essential for achieving the sustainability goals pursued by global automotive manufacturers. In this context, the substitution of energy-intensive primary materials with renewable raw materials represents a significant potential for reducing the environmental impacts of automotive plant engineering. However, the use of new materials often leads to conflicting objectives in terms of environmental and economic aspects as well as technical feasibility. To ensure an effective contribution to sustainability, it is necessary to evaluate the entire product life cycle of the substitute material, to localize the resulting secondary effects and to develop target-oriented solution concepts. Against this background, an approach is presented for the implementation of material substitution. The feasibility is demonstrated with a case-study on the substitution of energy-intensive steel with renewable wood material for the structural elements of a vertical conveyor pallet in the car body construction. The technical development and series testing is described and subsequently a comparative environmental and economic evaluation is carried out to analyze the potential benefits compared with the status quo while considering the resulting secondary effects. Finally, a potential assessment is made based on a reference body shop.

Exploring Effective Approaches To Minimize Downtime In Final Assembly Line Of Braking Systems

The global automotive manufacturing industry's growth in downtime reductio is substantial, valued at $3272.6 billion USD with a 3.01% growth rate.This growth in downtime reduction underscores the industry's commitment to enhancing efficiency, quality, and overall productivity across its diverse range of operations. Downtime in the braking system assembly line can lead to utilization loss or technical availability loss. In this context, many proactive maintenance strategies are explored but there's limited focus on addressing error-prone machines and utilizing Machine Learning for predicting downtime. The objective is to prioritize downtime reduction through error analysis, critical machine identification, and implementing ML-based solutions.
 This comprehensive research delved into the significance of minimizing downtime in the braking system final assembly line through meticulous data analysis, visualization techniquesand targeted interventions and then identified key issues and achieved tangible improvements in operational efficiency. The analysis revealed significant findings and then employed the Pareto Principle to identify top downtime machines, illustrating their distribution through a Pareto chart of machine defects. Furthermore, Exceptions and Problem Areas were identified utilizing statistical process controls, offering insights into critical error contributors. Notably, a comprehensive exploration of the most prominent downtime machine was undertaken, evidenced by LCL and UCL charts and a Fishbone Diagram detailing causal relationships. The research leverages real-world data involving dates, machine names, and downtime durations to develop a predictive model that aids in proactively managing production disruptions.
 The application of RPN calculations before and after error correction demonstrated a substantial reduction from of 432 to 75, validating the efficacy of the corrective actions. The real-time data was used to build a model that can predict when production machines downtime might happen. This helps us be prepared and manage any possible disruptions in production.The outcome of the project highlights the intrinsic link between downtime reduction and assembly line efficiency, emphasizing the importance of data-driven interventions. This culminated in the resolution of key issues, illustrated by the mitigation of the PCBA Pressin machine and LVDT sensor errors, yielding tangible reductions in downtime and notable productivity improvements. In this direction, exploring AI-driven predictive maintenance holds immense potential for advancing downtime reduction strategies. Leveraging AI algorithms to analyse live data streams from machinery and sensors can enable the detection of patterns indicating imminent failures and can pre-emptively prevent downtime.

Automating the Assembly Process of Passenger Car Gearboxes

Aims: The study aims to identify ways and potential solutions to automate the assembly and production process for passenger car gearboxes.
 Object of Research: Assembly and production process for car gearboxes.
 Subject of Research: Modern and evolutionary automation tools that have the potential to be implemented in the assembly processes of automotive transmission controls.
 Methodology: To achieve this goal, as part of this study, it is planned to apply methods of bibliometric analysis of leading scientometric databases to obtain correlation relationships and analytical conclusions regarding the vector of development of automation means of passenger car gearbox assembly process.
 Results: As a result of the research by means of scientometric analysis and correlation the vector of probabilistic technical solutions of integration and development of automation means of the sequence of production operations during the assembly of the transmission, as well as adaptive framework-design solutions for the implementation of tools of the fourth iteration of industrial-industrial progress in the production processes of assembly of the studied technical control means and logical-technological connection of the elements of the transmission system, which affect the overall process of automotive manufacturization.
 Conclusion: The passenger car gearbox is a multi-component, complex system whose assembly is a complex multi-operational process, and given the high responsibility of this machine element, there is an urgent need to introduce modern automation tools into the assembly and production processes, which will significantly optimize global automatofactoring. The practical results of the present study consist in the formation of a focus scientometric database of profile data, identification of a potential vector of development of means and systems of automation of assembly-production operations, identification and formation of solutions for the implementation of modern means of automated production in the actual global automotive manufacturing, which allows to get the optimum ratio of production costs/quality of products by improving the manufacturability, productivity and flexibility of processes of assembly of multi-element and multi-component automotive systems and structures.

Supplier-Selection Practices for Robust Global Supply Chain Networks: A Simulation Of The Global Auto Industry

How can companies develop and maintain global supply chain networks that are robust—that is, capable of maintaining an uninterrupted flow of goods and materials—when confronted with a geographically spreading disruption that could cause the shutdown of multiple suppliers at once? To answer this question, this article combines an empirical analysis of supply chain networks of three global automotive manufacturers with computational experiments. The results reveal that even when a small fraction of buyers adopt regionalizing supplier-selection practices—those in which a buyer chooses geographically proximate suppliers, whether to the buyer or its current suppliers—the supply chain network becomes more robust.

Systems Integrators’ Search in the Supplier base: The Case of Mature and Emerging Technologies

Systems integrators are firms that coordinate and integrate several different component technologies into complex products. Despite research evidence that these firms develop a broad knowledge base encompassing not only internalized components but also those outsourced to suppliers, we still know little about how these firms obtain external technological knowledge. Drawing from the concept of innovation search, we seek to understand how systems integrators search and generate new inventions by searching its supplier base. Moreover, since individual component technologies evolve unevenly within products, we pay attention to the differences between emerging and mature component technologies. Drawing from a longitudinal sample of all major global automotive manufacturers and their most relevant components, we provide empirical evidence that systems integrators intensify their search in suppliers in the context of emerging technologies. Yet, they also attain more successful innovations when increasing search in suppliers in both mature and emerging component technologies. However, while vertical integration leverages this relationship in mature component technologies, it has a dampening effect on the benefits of search in suppliers in the context of emerging component technologies.

Innovating Across Technologies: How Systems Integrators Increase Outsourced Components’ Innovations?

This study addresses the question of how firms taking the role of systems integrators can increase innovativeness by adding new features to their products from outsourced components. We focus on a sample of global automotive manufacturers which have systematically outsourced production of several key components while at the same time remained active in terms of innovation efforts around these component technologies. We provide evidence that as systems integrators increase innovation efforts around outsourced components, they are able to increase new outsourced component introductions that provide important new features to their final products. Yet, we also investigate how systems integrators manage their search efforts regarding these outsourced components’ technologies. We find that while increasing search from suppliers’ knowledge base for innovation is beneficial to a greater deployment of new components, increasing search from competitors in this context has a detrimental effect on the frequency of new outsourced components’ introductions.

Evolution of Global Manufacturing Networks and xKD Supply Chains: A Cross Case Study of Six Global Automotive Manufacturers

The implementation of different types of knocked down (xKD) supply chains have been one main element of the internationalization strategies of automotive original equipment manufacturers (OEMs). The original plants in the industrialized home markets create handling kits that are imported by the oversea plants where the kits can be easily assembled in high quality despite lacking qualification of local workforce and without a local supplier base. Over time, the global manufacturing networks mature and the oversea plants increasingly overtake value-adding processes and integrate local suppliers. However, typically the supply chain management and design are not adapted to this maturing process and the supply chains are characterized by high inventories and long lead times. In this research, we develop an integrated framework to align the global manufacturing network and xKD supply chains in order to improve the logistics performance and to exploit cost potentials by means of a six-fold cross-case study of globally operating automotive OEMs.

Integration of global manufacturing networks and supply chains: a cross case comparison of six global automotive manufacturers

Striving for new business opportunities automotive original equipment manufacturers established overseas plants in emerging markets and global manufacturing networks evolved. In this regard so-called knocked down supply chains have been the key for the establishment of successful overseas operations. Importing all parts required from the original plants in form of easy to be handled kits secures a high product quality and stable supply despite lacking qualification of local workforce and supplier bases. Over time the overseas plants and global manufacturing networks have matured by increasingly taking over value adding processes and integrating local suppliers. However, the supply chain structure and management have not been adapted accordingly and still comprise high inventory buffers and lead times. There is little research on the integrated design of global manufacturing networks and knocked down supply chains. This research aims to contribute to close this research gap by means of a cross-case study with six globally operating OEMs investigating the fit of knocked down supply chains and global manufacturing networks. On the basis of transaction cost theory, we develop an integrated framework to align global manufacturing networks and knocked down supply chain design that can serve as guideline to open logistics performance and cost potentials.

Gate-to-Gate Life Cycle Assessment for Determining Carbon Footprint of Catalytic Converter Assembly Process

With the pursuit of embracing the circular economy, having upward trend in vehicle sales and environmental concern, sustainability has become an imperative part of the global automotive manufacturing strategies. One of the tactics to achieve this sustainable goal is to conserve and enhance the resource base by salvaging the embedded values from end-of-life product and for which, the remanufacturing can be considered as one of the most prominent epitome. Even though many of the auto parts like engine, transmissions, starters, alternators and etc. have been assessed for remanufacturability since last few decades, being a major component of a car body the Catalytic Converter (CC) still remains unfocused in literature. However, to examine the remanufacturability of CC, a comprehensive study for assessing its economic, social, and environmental impact is inevitable. Therefore, with an underlying aim of designing the remanufacturable CC, in this endeavour an attempt has made to evaluate the environmental impact of its welding operations by means of energy consumption through gate-to-gate life cycle assessment. Real life data are collected from a Local Malaysian CC manufacturer. The obtained results show that the welding section has a carbon footprint of 0.203 kgCO2e/unit with major emission coming from the plasma arc welding. In addition to that, it is also observed that the value of carbon footprint is not only sensitive to the emission factor and processing time, but also it is responsive to the nature of the processing operations. Certainly, this observation will motivate to change the product design from the prospect of remanufacturing.

Technology strategy to meet China’s 5 L/100 km fuel consumption target for passenger vehicles in 2020

In an effort to solve the growing energy and environmental issues, China launched the fuel consumption regulation, which requires the fleet average fuel consumption of new passenger vehicles to reach 5 L/100 km in 2020. The technology strategy to meet the regulation target has become a major concern for the Chinese as well as global automotive manufacturers. This paper aims to systematically and critically appraise the technology strategy from two perspectives, namely the ‘energy-saving’ and ‘new energy’ strategies. Our analysis indicates that conventional powertrain still has great potential for energy conservation. Potential from existing engines should continue to be explored. The developing of transmission system should be more fuel efficiency oriented. Vehicles that use lightweight materials to conserve energy should be fully explored. From the system perspective, the assembly and overall design of vehicles need to be optimized. New energy vehicles are yet capable of competing with conventional vehicles. They face the challenges of power generation transformation, battery technology immaturity, and lack of charging infrastructures. Hybrid electric vehicles are the appropriate embodiment of technological transition from conventional vehicles to new energy vehicles.

Identification of Product Safety-relevant Tasks for Global Automotive Manufacturers

Product Safety has become a lot more relevant in recent years. For instance, have re-calls quadrupled in Europe in the eight years between 2004 and 2012. The risks for global manufacturer became enormous. This study presents a framework that positions Product Safety in the light of Risk Management. It thereby outlines, that manufacturing organizations need to know which of their activities have impact on Product Safety. Based on this, a systematic four-step method was presented of how global automotive manufacturers can identify their individual tasks and processes that have a proven impact on Product Safety. Therefore, criteria that improve Product Safety and minimize liability risks have been developed. The application of this method allows organizations to identify their individual Product Safety Core Tasks. This represents a basis for the development of a special treatment and attention to those activities, thereby ensuring their conformity and minimizing liability risks.

A review of trends in the global automotive manufacturing industry and implications for developing countries

This review explores the literature investigating recent global trends in the automotive manufacturing sector, particularly in developing countries. The role of globalisation has been an underlying factor in several key trends: The shift from west to east in terms of production and consumption; the concentration of the supply chain, with a handful of firms gaining control of most of the industry; a greater distribution of production activities around the globe, encompassing regional and local markets; and the concentration of innovation activities in the developed countries. Key trends in developing countries include continuing liberalisation and globalisation, increased foreign investment and ownership, and the increasing importance of follow-source and follow-design forces. Large developing countries have attracted greater critical mass for production and local product adaptation. Smaller developing countries increased their production capacity but not their innovation capacity. Developing countries bordering large markets became low-cost production hubs with lower levels of technological upgrading. Technological transfer has increasingly been facilitated through the purchase of knowledge-intensive assets in developed countries. The global financial crisis has had a large impact on the industry, particularly for developed countries. However, developing countries have generally been less affected. For most developing countries, the primary effect was an acceleration of the global market shift, as well as the accelerated consolidation of the supply chain. The trend of developing country firms purchasing knowledge-intensive industry assets from developed countries also accelerated.

Cost Benefit Analysis of Using Clean Energy Supplies to Reduce Greenhouse Gas Emissions of Global Automotive Manufacturing

Automotive manufacturing is energy-intensive. The consumed energy contributes to the generation of significant amounts of greenhouse gas (GHG) emissions by the automotive manufacturing industry. In this paper, a study is conducted on assessing the application potential of such clean energy power systems as solar PV, wind and fuel cells in reducing the GHG emissions of the global auto manufacturing industry. The study is conducted on the representative solar PV, wind and fuel cell clean energy systems available on the commercial market in six representative locations of GM’s global facilities, including the United States, Mexico, Brazil, China, Egypt and Germany. The results demonstrate that wind power is superior to other two clean energy technologies in the economic performance of the GHG mitigation effect. Among these six selected countries, the highest GHG emission mitigation potential is in China, through wind power supply. The maximum GHG reduction could be up to 60 tons per $1,000 economic investment on wind energy supply in China. The application of wind power systems in the United States and Germany could also obtain relatively high GHG reductions of between 40–50 tons per $1,000 economic input. When compared with wind energy, the use of solar and fuel cell power systems have much less potential for GHG mitigation in the six countries selected. The range of median GHG mitigation values resulting from solar and wind power supply are almost at the same level.

Alternative fuels: Challenges and opportunities for the global automotive industry

The second largest revolution in global automotive manufacturing is currently under way: the race to develop environmentally clean, cost-effective, yet user-friendly automobiles. Despite being the world's largest automobile producer, the United States is currently not ranked within the top 10 countries in the development of alternativefueled vehicles worldwide. Bold government decisions and a unified industrial strategy seem to be the key components of success as demonstrated by Brazil, the EC countries, New Zealand, Japan and Canada. This essay stems from an article that was first published in-house by the U.S. International Trade Commission in July 1993.