Achieving a transparent and visual automotive value chain with ICT-support

Abstract

Raufoss Chassis Technology (RCT) manufactures wheel suspension parts in aluminium for cars. Large volumes of identical parts, fully automated production lines combined with the extreme demands on speed, precision and quality makes fast response to changing demands important for the overall competitiveness. The manufacturing unit has been built and implemented based on Lean Manufacturing and Extended Enterprise Principles. The concept of extended enterprise is directly applicable, and provides a platform for understanding, discussion and decision. The need to establish basic principles prior to the development of solutions is important. The need for a common visual description of the value chain is vital. Showing the value chain, its partners and material flow, the information flow, the processes etc. The Extended Enterprise model, along with other tools and methods, have proven useful, but far from complete. The case also shows that there is still lack of flexibility in ERP systems. RCT has a very simple BOM (2 levels) and the ERP system should not force a complicated and resource-demanding planning process onto the company! As a consequence the strive for Lean ICT solutions must continue, where the systems and the use of them can be upsized or downsized in fluctuation with the product range, product complexity, demand fluctuations and emerging markets. The need to achieve transparency without creating nervousness is an important challenge when allowing huge amount of information to be available throughout the value chain. Indicators of performance and status of the value chain flows are important. The RCT case is an example of how theory, models and concept can directly be applied to support industrial development. And the case feeds back updated needs for further research and development on Extended Enterprise and Supply Chain Management. © 2003 by Springer Science+Business Media Dordrecht.