Sections
Document Actions
It has become apparent that the current business model in the automotive
industry of mass producing identical products, is flawed and becoming
dysfunctional. The industry suffers from global overcapacity and rising
stock levels in the market (especially on the distribution side), resulting
in inherently low profitability.
The "EU 5-Day Car Initiative" represents a radical leap for the European automotive industry from the "stock push" and "mass production" thinking of the last century to a stockless "build-to-order" (BTO) and "mass customisation" production strategy. This will benefit the complete automotive value stream, from material producers to end consumers of cars, through a cost-optimised system delivering what the customer really wants without delay.
Within the wider framework of the "EU 5-Day Car Initiative", the Integrated Project "Intelligent Logistics for Innovative Product Technologies ILIPT" focuses on the product configuration for build-to-order supply chains (addressing new product technologies, tools and methods to manage these), new concepts in delivering flexible production networks (addressing collaboration across complete value streams and interoperability of these processes) and novel methods and tools for demonstrating the feasibility and applicability of these new concepts. This is examined in the 5-day car context, demonstrating the economic and financial viability and benefits of a BTO strategy for the European automotive sector.
The initiative's true breakthrough is the realisation of a stockless vehicle supply system in Europe to supply a customer-ordered vehicle within 5 days. It goes beyond the industry's usual response of shutting down assembly plants or increasing production capacity to capitalise on orders for popular models. Here, the real challenge for the automotive sector will be the development of a phenomenon - 'build-to-order' - that, when fully developed in the auto industry, will be highly transferable into other manufacturing and transport industries in Europe that are subject to similar time and cost pressures.
ILIPT is organised in three Themes focusing on the main elements of the 5-Day-Car concept, i.e. on management of product configuration for flexibility, on design of innovative logistics, material flow and information flow concepts as well as on design of flexible BTO network structures and processes. The three Themes of ILIPT are:
The "EU 5-Day Car Initiative" represents a radical leap for the European automotive industry from the "stock push" and "mass production" thinking of the last century to a stockless "build-to-order" (BTO) and "mass customisation" production strategy. This will benefit the complete automotive value stream, from material producers to end consumers of cars, through a cost-optimised system delivering what the customer really wants without delay.
Within the wider framework of the "EU 5-Day Car Initiative", the Integrated Project "Intelligent Logistics for Innovative Product Technologies ILIPT" focuses on the product configuration for build-to-order supply chains (addressing new product technologies, tools and methods to manage these), new concepts in delivering flexible production networks (addressing collaboration across complete value streams and interoperability of these processes) and novel methods and tools for demonstrating the feasibility and applicability of these new concepts. This is examined in the 5-day car context, demonstrating the economic and financial viability and benefits of a BTO strategy for the European automotive sector.
The initiative's true breakthrough is the realisation of a stockless vehicle supply system in Europe to supply a customer-ordered vehicle within 5 days. It goes beyond the industry's usual response of shutting down assembly plants or increasing production capacity to capitalise on orders for popular models. Here, the real challenge for the automotive sector will be the development of a phenomenon - 'build-to-order' - that, when fully developed in the auto industry, will be highly transferable into other manufacturing and transport industries in Europe that are subject to similar time and cost pressures.
ILIPT is organised in three Themes focusing on the main elements of the 5-Day-Car concept, i.e. on management of product configuration for flexibility, on design of innovative logistics, material flow and information flow concepts as well as on design of flexible BTO network structures and processes. The three Themes of ILIPT are:
Created by
woehrmann
Last modified 19.08.2005 10:22
Last modified 19.08.2005 10:22