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Build to Order in The Automotive Industry May 10 & 11, 2006 (002)

Build to Order in The Automotive Industry May 10 & 11, 2006 (002) Agenda Introduction Automotive industry and trends from a supplier's angle The Automotive supply chain Build to Order fulfillment and production aspects

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Build to Order in The Automotive Industry May 10 & 11, 2006 (002)

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  1. Build to Order in The Automotive IndustryMay 10 & 11, 2006 (002)

  2. Agenda • Introduction • Automotive industry and trends from a supplier's angle • The Automotive supply chain Build to Order fulfillment and production aspects • Supply chain execution and the role of RedPrairie's Build to Order Solution

  3. Agenda • Introduction • Automotive industry and trends from a supplier's angle • The Automotive supply chain Build to Order fulfillment and production aspects • Supply chain execution and the role of RedPrairie's Build to Order Solution

  4. Introduction • Personal • Henrik Bloch • Build to Order Product Manager • Product management, business consultant, including sales support • Background • IT background • Been working in the European Automotive Industry for 15 years • Worked with early JIT/sequencing systems as consultant in Germany • Working with implementing a commercially available standard BTO order fulfillment system for automotive suppliers from 1997

  5. Agenda • Introduction • Automotive industry and trends from a supplier's angle • The Automotive supply chain Build to Order fulfillment and production aspects • Supply chain execution and the role of RedPrairie's Build to Order Solution

  6. OEMs Manufacturing Strategies • Move towards Build to Order and/orSequencing (ILVS/SILS) supply • Common Platforms • More car models • More car models on the same assembly line • Modular Supply • Outsourcing of the supply chain • Supply Base reduction • Lean production • Integrated quality management & process optimization

  7. Increasing number of new models

  8. Golf Bora Beetle A3 TT Octavia Toledo Leon Different cars – one platform…

  9. Modules & Systems - driving Build to Order Modules & Systems requires that the supplier delivers: Just-In-Time (JIT) Products with low variability or Sequence-In-Line Supply (SILS) Just-In-Sequence (JIS) In Line Vehicle Sequencing (ILVS) Build to Order (BTO) The Same processes with different names Products with high variability

  10. Pressures on the automotive supply chain • Vehicles are made to order • Challenge of managing very complex supply chain • Increasing number of options • Requires late customization and in-sequence supply • Shorter lead time requirements • Process becomes mission critical with increased risk • Responding to rapid changes in ‘real-time’ • OEMs are pushing inventory back up the supply chain • Inventory has to be minimized in the supply chain

  11. Agenda • Introduction • Automotive industry and trends from a supplier's angle • The Automotive supply chain Build to Order fulfillment and production aspects • Supply chain execution and the role of RedPrairie's Build to Order Solution

  12. Build to Order & Sequencing In a nutshell

  13. Requirements for Build To OrderA simple example - a Volvo headliner module

  14. Headliner options result in 2880 theoretical versions… 2x3x2x3x8x2x5=2880

  15. Agenda • Introduction • Automotive industry and trends from a supplier's angle • The Automotive supply chain Build to Order fulfillment and production aspects • Supply chain execution and the role of RedPrairie's Build to Order Solution

  16. Why did we want to target the automotive market? • RedPrairie has made some recent good wins in the automotive sector • Acquisition of the market leading Build To Order product (PowerB2O) • Ever increasing complexity of automotive industry suits Best of Breed solutions

  17. Positioning RedPrairie’s Build to Order

  18. Rapid deployment focus,based on Solution focus

  19. RedPrairie value proposition • RedPrairie offers market leading BTO process / assembly control • Operations are complex / one piece flow • High integration with line / test equipment • Not possible without best-of-breed systems • RedPrairie represents a proven and reliable BTO process and partnership • All applications are mission critical • Penalties of $25,000/minute/line for line stoppage - typically 5000 people per assembly plant

  20. Build to Order Customer references Tier 1 Supplier Customers

  21. Global challenge of automotiveMet by RedPrairie Expanding Market = Eastern Europe, Mexico and China

  22. Questions?Please come see us @ booth 93Thank you…!

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