AUTOMOTIVE PRODUCT DESIGN & DEVELOPMENT DELPHI by MANUFACTURING, ENGINEERING, AND TECHNOLOGY GROUP CENTER FOR AUTOMOTIVE RESEARCH MARCH 2005 Sponsored by Parametric Technologies Corporation The statements, findings, and conclusions herein are those of the authors and do not necessarily reflect the views of the project sponsor. ACKNOWLEDGEMENTS Many people from many organizations participated in this study and whose contributions are herewith acknowledged. First, the people at PTC without whose financial and intellectual support this study would never have been conducted. Second, a thank you to the people of CAR, specifically Chris Gulis, who analyzed the data, and Dr. David Cole, Brett Smith, and Wendy Barhydt, who edited the report and provided insight into the many conclusions that were drawn from the study. Lastly, we all owe a debt of gratitude to the members of the panel, who donated their time and thoughts to a topic they believed to be one of the most important in the industry today. Richard J. Gerth, Ph.D. Center for Automotive Research 1 GLOSSARY N.A. North American (United States, Canada, Mexico). Off-Shore All other countries not in N.A. PD&D Produce Design and Development. Product Specific Characteristics Main or major characteristics that define the product. For example, the major characteristics for car bodies are the surface finish, gaps, flush, and crash performance. Some major characteristics for engines are horsepower, torque, and fuel efficiency. 2 I. EXECUTIVE SUMMARY...........................................................................................................................1 II. INTRODUCTION.........................................................................................................................................7 III. WEIGHTED ANALYSIS ...........................................................................................................................10 III.1. CATEGORY WEIGHTINGS...........................................................................................................................12 III.2. QUESTION WEIGHTINGS ............................................................................................................................14 III.3. OVERALL WEIGHTED FACTOR COMPARISON ............................................................................................17 III.3.a. Communication within the Organization ........................................................................................18 III.3.b. Communication with Suppliers .......................................................................................................22 III.3.c. Communication with Customers .....................................................................................................27 IV. BUSINESS PHILOSOPHY, ORGANIZATIONAL FACTORS AND SUPPLIER CAPABILITIES.31 IV.1. BUSINESS PHILOSOPHY FOCUS ..................................................................................................................32 IV.2. IMPACT OF ORGANIZATIONAL FACTORS....................................................................................................35 IV.3. IMPACT OF SUPPLIER CAPABILITIES ..........................................................................................................38 V. DESIGN METHODS, TOOLS, AND CRITERIA ...................................................................................41 V.1. IMPACT OF DESIGN METHODS ...................................................................................................................42 V.2. IMPACT OF DESIGN TOOLS ........................................................................................................................45 V.3. INFLUENCE OF DESIGN CRITERIA ..............................................................................................................48 V.3.a. Engine / Transmission .........................................................................................................................49 V.3.b. Interior.................................................................................................................................................51 V.3.c. Body.....................................................................................................................................................53 VI. INTERACTIONS AND COLLABORATION..........................................................................................55 VI.1. COMMUNICATION METHODS.....................................................................................................................56 VI.1.a. Communication within an Organization.........................................................................................57 VI.1.b. Communication between an Organization and its Suppliers ..........................................................59 VI.1.c. Communication between an Organization and its Customers (Suppliers only)..............................61 VI.2. IMPACT OF ORGANIZATIONAL AND HUMAN RESOURCE MANAGEMENT FACTORS ....................................64 VII. GENERAL QUESTIONS...........................................................................................................................67 VII.1. ENGINEERING EFFICIENCY ........................................................................................................................68 VII.1.a. Improvements..................................................................................................................................69 VII.1.b. Metrics ............................................................................................................................................72 VII.2. COLLABORATION ......................................................................................................................................75 VII.2.a. Interactions between functions........................................................................................................76 VII.2.b. Enablers for increased interactions................................................................................................78 VII.3. ALLOCATION OF DEVELOPMENTAL RESOURCES .......................................................................................82 VII.3.a. Interiors ..........................................................................................................................................83 VII.3.b. Body and Chassis / Suspension.......................................................................................................85 VII.3.c. Engine/Transmission.......................................................................................................................87 VII.4. SOURCES OF INNOVATION .........................................................................................................................89 VII.5. DEVELOPMENT TIME.................................................................................................................................91 VII.5.a. PD&D Development Time (New Platform).....................................................................................92 VII.5.b. PD&D Development Time (Carryover Platform)...........................................................................97 VII.5.c. Tool Release Time.........................................................................................................................102 VII.6. BARRIERS IN PRODUCT DEVELOPMENT CYCLE .......................................................................................104 VII.7. PD&D MISCELLANEOUS .........................................................................................................................107 3 VIII. APPENDIX: MEDIAN SCORES AND QUARTILES FOR ALL FACTORS BY VEHICLE SYSTEM AND COMMUNICATION METHOD. ...............................................................................................110 VIII.1. SCENARIO 1: INFLUENCE OF DESIGN CRITERIA ON INTERIORS AND COMMUNICATION METHODS WITHIN AN ORGANIZATION ................................................................................................................................................111 VIII.2. SCENARIO 2: INFLUENCE OF DESIGN CRITERIA ON INTERIORS AND COMMUNICATION METHODS WITHIN THE SUPPLY CHAIN................................................................................................................................................114 VIII.3. SCENARIO 3: INFLUENCE OF DESIGN CRITERIA ON INTERIORS AND COMMUNICATION METHODS WITH THE CUSTOMER .....................................................................................................................................................117 VIII.4. SCENARIO 4: INFLUENCE OF DESIGN CRITERIA ON BODY AND COMMUNICATION METHODS WITHIN THE ORGANIZATION .....................................................................................................................................................120 VIII.5. SCENARIO 5: INFLUENCE OF DESIGN CRITERIA ON BODY AND COMMUNICATION METHODS WITHIN THE SUPPLY CHAIN.......................................................................................................................................................123 VIII.6. SCENARIO 6: INFLUENCE OF DESIGN CRITERIA ON BODY AND COMMUNICATION METHODS WITH THE CUSTOMER 126 VIII.7. SCENARIO 7: INFLUENCE OF DESIGN CRITERIA ON ENGINES/TRANSMISSIONS AND COMMUNICATION METHODS WITHIN THE ORGANIZATION .................................................................................................................129