P1246990946czmwP

1
Low Volume Vehicle Production
or Learning to Surf the Pipeline
John WaraniakStrategic Director, Head of
Automotive Solutions LabTATA Consultancy Services
Traverse City, MI USA01 August 2005
2
CAR LVVP Program Objectives

• Research
• The LVVP program will identify manufacturing
  processes, technologies and business models that
  enable the manufacturing and production of
  profitable low volume vehicles.
• Best practices and lessons learned from this
  research will be provided to industry
  stakeholders to accelerate and promote niche,
  specialty and low volume vehicle solutions.
• Commercial
• The LVVP consortium will pursue low volume
  vehicle programs using strategies identified by
  the consortium's research efforts.
• These programs will create opportunities for
  member companies to develop and deliver
  innovative processes, technologies and services
  that enable the successful engineering,
  production and launch of niche, specialty and low
  volume vehicle programs.

3
LVVP Definitions and Initiatives

• LVVP is defined as 5,000 to 30,000 units
• Body-in-White manufacturing opportunities
• Chassis, Engine Compartment, Body Panels, Trim
• Opportunities after BIW
• Distribution, Paint, Factory Integrated,
  Aftermarket
• Second Stage Manufacturing, Supplier Assembly
• Define NA LVVP business models and strategies
• Co-Branding and Lifestyle Customization (SEMA)
• Collaborate with OEMs to ensure compatibility
• Identify technologies and processes for LVVP
• Identify current gaps for profitable LVVP
• Disseminate findings via reports and workshops

4
LVVP Program Participants

• ASC
• BMW
• KUKA
• Dana Corporation
• McKinsey Consulting
• TATA Consultancy Services
• Diversified Tooling Company
• American Plastics Council
• West Michigan Tooling Coalition
• Michigan Economic Development Corporation

5
LVVP Business Model Decision Alternatives
Flexible Manufacturing Technologies -- Generic
Product Architectures -- Innovative Business
Models
6
OEM Engineered OEM Assembly or Outsourced
Assembly?

• OEM/Integrator manufacturing engineering
  resources
• OEM manufacturing system and plant capacity
• Flexible Body Shop approaches
• GBL (Toyota)
• IBAS (Nissan)
• Intelligent Robots (Honda)
• Rotating Jigs (Mazda)
• C-flex (GM)
• Low-cost dies, molds and tooling for LVVP
• Common hard points (DFS) for all derivative
  models
• Labor contracts and Integrator assembly
  capability
• Component fabrication (stamping, molding)
  capability

7
OEM Assembled Stand-Alone or Integrator Assembly
Line?

• Body Shop Flexibility of Systems and Equipment
• Model Mix Capability
• Capacity Expandability
• Launch Speed and Integration
• Part and Process Commonality
• Floor Space and Inventory Requirements
• Cost of Incremental Stand-Alone Assembly
• Paint Shop Flexibility -- Stand-Alone and
  Integrated
• Final Assembly
• Work Load -- Line Rate and Takt Time
• Inventory and Delivery Requirements

Pathways to LVVP Profitability Margin x Mark
Share x Market Size
8
Low Volume Vehicle Production WorkshopMonday
Afternoon 130-430 PMMackinac Rooms ABCMark
Reuss and LVVP Consortium Presenters