IE Research Paper

                             MODULAR  VEHICLE  PRODUCTION METHOD

                                                         FOR

 IMPROVED EFFICIENCY, QUALITY, AND ENVIRONMENTAL RESPONSIBILITY

       Author:      K. Todd Matsubara , Hamid Pourmohammadi

ABSTRACT

Modular vehicle design and construction are nothing new or groundbreaking – several patents even exist for such ideas. However, the modular methods discussed here are new to the automotive industry, by virtue of their application, implementation, and purpose. It is for this reason that the theories presented here are indeed unique. While the implementation of Toyota’s revolutionary Toyota Production System (TPS) has proven time and again to be very successful - and has become the vehicle production industry standard - the next chapter of automotive production development will need to incorporate increased dependence on suppliers and the TPS/Just-In-Time theory. With environmental issues at the top of virtually all agendas today, the next phase in automotive production development will also require innovations in green methods and ideologies. Truly modular vehicle design and construction methods can accomplish these next evolutionary steps, satisfying not only substantial improvements in efficiency and quality, but green, renewable practices as well.

1.      Introduction

Supplier relationships and quality in the automotive industry have seen significant evolution since its inception just over 120 years ago. While vast production improvements were initially offered by Henry Ford’s introduction of the moving assembly line in 1913, the automotive industry has seen its greatest strides in the past 20-25 years in its quality, engineering, efficiency, and customer satisfaction. As anyone involved  with  Supply  Chain  Management  or  Production  Engineering  is  well  aware,  a  significant percentage of this can be attributed to Toyota and its lean production-based TPS business model. Toyota’s TPS concepts brought drastic improvements not only to the automotive production world, but to the entire industrial world as we know it today (Womack, et al, 2007).

2. TPS QUALITY AND EFFICIENCY IMPROVEMENTS THROUGH PROPER USE OF SUPPLIERS

At the heart of the TPS is a production system that has become known as Just-In-Time (JIT). The JIT method states that instead of inefficiently carrying large amounts of inventory, a manufacturer relies on their supply chain to have the proper components available for production at the right time, at the right place, and of course in the right quantity and at the right quality (Drake, 2006). This heavy reliance upon suppliers is what makes the TPS work, but definitely requires a secure and trusting relationship with suppliers in the supply chain - and the suppliers’ suppliers as well (Womack, et al, 2007).

3.  A NEW & ENVIRONMENTALLY FRIENDLY APPLICATION OF JIT/MODULAR

While the preceding parameters may seem insurmountable at the present time, the implementation of the modular vehicle construction principles outlined here can easily satisfy these requirements, along with improvements in other important areas as well, some of which include customer satisfaction and transportation costs. Reduction of holding costs, labor repair time and costs, and production delivery time can also be significantly reduced with the application of this production model.

4.     SPECIALIZED ASSEMBLY FACILITIES & JIT LOCAL SUPPLIERS

The facility was designed with a campus-type layout. This layout enabled additional dock doors to be placed around the exterior of the main factory building, (130 total), allowing for more efficient receipt and processing of deliveries from the surrounding departments, as well as from their local tier-1 suppliers. These dock doors along the perimeter of the building allow deliveries to be as physically close to the point of installation as possible, significantly increasing efficiency by reducing handling time - sometimes down to only a matter of seconds - before the part is installed on a vehicle. With this operation, lead time for orders placed to the local departments or suppliers is approximately two hours, at which time all relevant product details, options, and specifications are provided, including delivery time and location (Kalson, 2008).

5.     MODULAR VEHICLE DESIGN & CONSTRUCTION VERSUS CURRENT METHODS

Body-on-frame vehicles are similar, adding a frame for the body to sit on. Nonetheless, the production method for either type of vehicle is the same: a main body or frame travels down an assembly line, while parts or groups of parts are added along the way. In recent years, the consolidation of certain portions of the vehicle have made the work on the actual assembly line much easier, such as complete instrument panel assemblies, complete subframe assemblies with engines already installed, complete door assemblies, etc. However, it is at this point where the limits of this production method materializes: Parts or assemblies are still required to be delivered to a certain place at a certain time to be attached onto a vehicle traveling down the assembly line at a factory.

6. POTENTIAL DRAWBACKS OF MODULAR PRODUCTION

Ø  Danger of proprietary method or information loss is always present

Ø  The actual installation of delivered components by the supplier can pose problems with consistency and final quality

Ø  This allows for tighter regulation and quality control by manufacturer personnel, and contributes to brand integrity as well (Marinin & Davis, 02).

7.     AFTER-SALE BENEFITS – SERVICEABILITY & IMPROVED CUSTOMER SATISFACTION

An additional byproduct of a vehicle produced in this way would be easier after-sale repair in the case of damage or collision, as each section of the vehicle could be replaced if necessary, with no trace of the previous damage. This is oftentimes not possible with the current unibody-type construction that most vehicles currently employ. Lower labor costs would result due to quicker repair times, and a sizable credit could be issued to the customer for portions of the exchanged modular section that are not damaged, or are reusable or recyclable. This could significantly lower not only repair time, but repair costs as well, resulting in a further increase in customer satisfaction (Cohen, et al, 2000).

CONCLUSION

Our modularization methods presented here are key to creating a green and sustainable automotive production industry. This ideology should already be at the forefront of every automotive manufacturer’s current and ongoing agendas, and can be realized with the implementation of the ideas presented in this paper. At the same time, quality improvements, increases in profits, and customer satisfaction can also be achieved by simple virtue of adopting these production methods.

A forward-thinking manufacturer, if able to capitalize on this modular concept, could achieve a significant first-to-market advantage, not only in marketing, but with initiating new recycling credit programs or more stringent environmental programs with the government, thereby raising industry standards for all to follow. Environmental sensitivity is an important factor for any industry today, especially when looking towards the future. This modular concept, with its complete business process reengineering, substantial gains in environmentally  friendly  production  over  current  levels,  along  with  its  significant  improvements  in efficiency and quality, would truly begin the next generation of automotive production methods.

REFERENCES:

Improved Efficiency, Quality, and Environmental Responsibility
Author:K. Todd Matsubara , Hamid Pourmohammadi

Christopher, M. and Towill, D.R. (2000), “Supply Chain Migration from Lean and Functional to Agile and Customised”, Supply Chain Management: An International Journal, Vol. 5, No. 4, pp. 206-213.

Cohen, M.A., Cull, C., Lee, H.L. and Willen, D. (2000), “Saturn’s supply-chain Innovation: High value in

after-sales service”, Sloan Management Review, 41(4).

Coyle, J.A., Bardi, E.J. and Novack, R.A. (2006),  Transportation, Sixth Edition, Thomson South-Western, Mason, OH.

Sumary:

Modular vehicle design and construction are nothing new or groundbreaking – several patents even exist for such ideas. However, the modular methods discussed

Here are new to the automotive industry, by virtue of their application, implementation, and purpose. It is for this reason that the theories presented here are indeed unique. 

While the implementation of Toyota’s revolutionary Toyota Production System (TPS) has proven time and again to be very successful - and has become the vehicle production industry

standard - the next chapter of automotive production development will need to incorporate

 increased dependence on suppliers and the TPS/Just-In-Time theory. 

With environmental issues at the top of virtually all agendas today, the next phase in automotive

production development will also require innovations in green methods and ideologies.

Truly modular vehicle design and construction methods can accomplish these next evolutionary steps, satisfying not only  substantial improvements in efficiency and quality, but green, renewable practices as well.

A forward-thinking manufacturer, if able to capitalize on this modular concept, could achieve a significant first-to-market advantage, not only in marketing, but with initiating new recycling credit programs or more stringent environmental programs with the government, thereby raising industry standards for all to follow. Environmental sensitivity is an important factor for any industry today, especially when looking towards the future. This modular concept, with its complete business process reengineering, substantial gains in environmentally  friendly  production  over  current  levels,  along  with  its  significant  improvements  in efficiency and quality, would truly begin the next generation of automotive production methods.