Moving towards BTO -An engine case study

Abstract

This chapter introduces a case study that focuses on a first-tier supplier delivering engines to several OEM vehicle plants. Assessing the global product strategy of the engine plant analysed and its OEMs, it could be foreseen that the current build-to-stock (BTS)-orientated production system will change to a more flexible, customer-orientated production system with fewer safety stocks and shorter lead times. To avoid large engine inventory and enable more flexible, costefficient production the supplier is urged to switch to a stockless BTO production and a just-in-sequence (JIS) supply of engines within 4 days of call-off. Consequently, the case study covers the challenges in implementing BTO at this first-tier supplier, i.e. the development and validation of a new logistics concept, including planning and material flow processes for production, supply concepts for engine modules, late configuration and JIS delivery concepts for engines. The visionary state for the engine assembly provides remarkable progress towards the BTO paradigm and demonstrates a real-world application of the BTO paradigm. Furthermore, it demonstrates the successful application of the guidelines and methods described in the chapters before. © 2008 Springer-Verlag.