January 20, 1997 (Ann Arbor, MI) -- Auto suppliers with the best cost performance are involving their customers and suppliers early in the product development process, according to a new study from the Automotive Consulting Group, Inc. (ACG).
In total, 138 automotive suppliers participated in ACG's Automotive Supplier Product Development Study, which examined the product development performance of system, subsystem, component and material suppliers. The study targeted both transplant and domestic (US) suppliers. Of the 138 participants, 101 firms are classified as designers.
ACG's study reveals that higher performing suppliers, with primary design responsibility for the parts or systems they produce, are involving their own suppliers and customers early in their product development efforts.
"Synchronous simultaneous engineering among suppliers and customers is necessary as performance requirements increase and the OEMs continue to outscore design and engineering responsibilities," said Dennis Virag, President. "For example, supplier firms with better cost performance are more likely to be involving their own suppliers during the concept development phase of their product development activities."
Virag added, "Suppliers with better time-to-market performance are involving their own suppliers and customers during the specification and quote packaging phase of product development. Companies with performance problems are more likely to be involving their suppliers during prototyping, launch and volume production phases." This is commonly referred to as 'fire-fighting.'
"Improvements to the product development process among North American auto suppliers are critical in light of challenges like increased customer expectations, the strengthening dollar and shrinking product life-cycles," said Virag. "The automotive supply-base is responding well to market pressures, but it may be impossible for a typical company to match, never mind surpass, the top performers."
As a component of the study, ACG analyzed the practices of best-in-class companies. Excellence in product development correlates with management practices such as cross-functional core teams, business-based milestone reviews by senior executives, well documented and measured development road-maps, and integrated development tools and techniques.
he Automotive Consulting Group is recognized as a leading management consulting firm serving the global automotive industry. Specializing in strategic market positioning, technology planning and business performance improvement, the company helps clients through a combination of industry analysis, project consulting and management support.
Companies wanting more information on the report, Best Practices in Product Development Among Automotive Suppliers, should call ACG at (734) 973-1110.