Professor: ShuoYan Chou

1
Collaborative Product Development

• Professor Shuo-Yan Chou
• Student Phan Nguyen Ky Phuc
• Bui Le Anh Tuan

2
Automotive industry
3
Contents
Main issues of modern market
Key of success
Benefit
CPD
Relationship OEMsupplier
Relationship 1st and 2nd supplier
Solution
Reference
4
Main issues of modern market

• Lower cost
• Faster time for market
• High quality automotive design processes.

Brand management
refocus
Customer service
Assembly
5
Keys of success
6
Traditional supply chain
7
Main facing issues of suppliers

• Provide customers with significant know-how
• Produce at extraordinary high levels of quality
• Provide a variety of services for the customer
• All while continuously reducing the cost at which
  they provide the above mentioned point

8
Reasons

• It costs too much to develop new product
  penetrate new markets
• Collaboration economic advantges

9
Benefits

• Increasing product complexity
• Increasing customer demand gt new platform
  technology noncore technologies in products
• The complexity of new technology development may
  be overcome by collaboration
• Collaboration in design period can enhanced
  product for end-customer
• Sharing information about technologies
• Influence or adapt with new technologies each
  other

10
Benefits

• Faster product development with shorter design
  cycles
• Managing several stages simultaneously gt
  decrease design cycle time
• Shorten product development time
• More flexible in adopting new technologies
• Move faster with the pace of changing market
  conditions
• Respond better to new customer requirements.

11
Benefits

• Increasing development cost
• Reduction of costs in product development gt
  strong requirement
• Collaboration share the costs and risk
• Communication between OEM suppliers gt
  increasing confidence in defining specifications
  , prevent design changes
• Ensure full compatibility between component
  design and process capabilities The more
  compatibility predominates, the fewer costs

12
Relationship OEMsupplier

• OEM depents a lot on suppliergt no longer has
  enough internal capabilities, resources and
  skills to develop all of its own components.
• Unclear requirements, specifications and target
• Cost pressure
• Lack of trust

13
Relationship 1st and 2nd supplier

• Cost time pressure
• Last link so have less time to adapt to change in
  design
• Responsiveness
• Just claim they can do it to get the contract
• Lack of trust
• Financial engineering data

14
Relationship 1st and 2nd supplier

• Cost time pressure
• In addition to the cost pressure the suppliers
  also felt a strong pressure regarding timing. The
  product had to be developed in to a shorted time
  and a lot of changes in the course of the
  development reduced the remaining development
  time even more.
• This caused a lot of problems especially for the
  second-tier suppliers as they are one of the last
  links in the supply chain and usually their
  development time is shortened by the time that
  the OEM and/or the first-tier supplier have lost.

15
Relationship 1st and 2nd supplier

• Responsiveness
• The first-tier suppliers complained about the
  slow responsiveness from their second-tier
  suppliers.
• If the second-tier suppliers had problems they
  often did not report them to their first tier
  supplier or waited for a long time until they
  talked about their problems which causing the
  first-tier suppliers much more work.
• The first-tier suppliers reported that the
  quality of communication with some second-tier
  suppliers was not satisfactory, as they needed to
  be chased all the time and leave everything to
  the last minute.

16
Relationship 1st and 2nd supplier

• Lack of trust
• First and second-tier suppliers have a business
  relationship where a lot of money and risk is
  involved, they will never be unlimited trust
  between each other.
• They did not share financial data and information
  as willing as engineering data.

17
Restate issues

• Cost and time pressure
• Unclear requirements and specifications
• Late changes
• Lack of trust

18
Solution

• Trust and good personal relationships
• If partners have trust in each other, they can
  benefit a lot, as participants are more willing
  to share information, more likely to ask for help
• The development of a good reputation for
  trustworthiness can be seen as an important
  strategic management tool, as it can offer a
  company a wider choice of partners to work with.

19
Solution

• Regular lessons learnt reviews with all parties
• By having regular lessons learnt reviews and an
  open sharing of learning between the OEM and the
  first-tier supplier as well as between the
  first-tier supplier and second-tier supplier and
  by implementing the lessons learnt in future
  processes, a lot of frustration, time and money
  could be saved.

20
Solution

• Long-term planning and long-term relationships
• Lack of long-term planning and long-term
  contracts from the OEM and first-tier suppliers
  reduces the ability of sub-suppliers to invest,
  in terms of both machines and personnel.
• If the OEM want to keep their supplier for future
  projects and used what they have learnt from
  previous together, they could save lots of money
  and effort for future projects.

21
Reference

• Martina Eberle, Joy Batchlor and Caroline Ramsey,
  Journeying toward Collaborative Product
  Development Case Study in the Automotive
  Industry,