Automotive Manufacturing
Name
Title
Microsoft Corporation
Agenda
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Automotive Market
Stakeholders and Business Issues
Microsoft and Automotive
Call to Action
Microsoft In Automotive Manufacturing
Vision
Enable the global automotive industry to anticipate, innovate,
and deliver world class products and services through
visionary technology leadership
Top Automotive Supplier Countries
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U.S.A. (> 11,000)
Japan
China
Brazil
U.K.
Italy (~3,000)
India
South Africa
Spain
Australia
Germany
Mexico
France
Canada
Ireland (>1,000)
OEM Tiered Supply Chain
• Tier 1 – System Suppliers (e.g., engines)
• Tier 2 – Sub-Assembly Suppliers
(e.g., brake component assemblies)
• Tier 3 – Fabricators (e.g., brackets)
Aftermarket Manufacturers
Photos taken at AAPEX/SEMA shows; Las Vegas, NV – November, 2005
Motor Homes, Motorcycles, Travel
Trailers, Bus Bodies, Truck Trailers, Etc.
Process Line, Machine Tools,
Die, And Mold Manufacturers
Automotive And Parts Distribution
Retail And Service
Dealer Management
The Changing World Of Manufacturing
• Dynamic industry with continuing change
• New and evolving business practices
and processes
• Much more than just managing inside the four
walls of a factory
• Manufacturing is a key node in an increasingly
diverse Supply Chain
Manufacturers’ Challenges
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Global competition
Customer service level demands
Global capacity exceeds demand
Global supply chain participation
– Customers
– Suppliers
– Sub-contractors (Outsourcing)
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Profit margin contraction
Operational cost reduction
Accelerating new product life cycle
Regulatory and environmental requirements
Meeting The Needs Of All Stakeholders
Planning and Control
Manufacturing
Demand Variances
Scheduling
Outsourcing
Material Utilization
Productivity
Changeovers
Staffing
IT
Data Requirements
EDI
Data Integrity
System Availability
CEO
Company Profitability
Supply Chain Competitiveness
Cost Containment
Business Analytics
Engineering
Sales and Marketing
Product Design Collaboration
Supplier Viability
Standards and Specifications
Shipments
Customer Satisfaction
Contract Acquisition
Business Issues
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Cost Reductions
Outsourcing/Foreign Manufacturers
B2B Transactions and VAN Alternatives
Shortened Time-to-Market
Supplier Consolidation
Collaborative Designs
– Product Design
• Burden shifting in the supply chain
– Product Data Management and Product Lifecycle
Management (PLM)
Business Issues
• Compliance
– TREAD Act
– European Parliament End-of-Life 2006
– RFID/Electronic Product Code (EPC)
• Charge backs, revenue collection, out of stock, brand protection,
shrinkage, counterfeiting, BOM tracking, lot tracking, operational
and handling costs, shipment visibility, QA, component inventory
visibility, finished goods visibility, planning, synchronization
• Issues include ROI, cost, metal, liquids
Business Drivers
• Lean Manufacturing
• Complex Supply Chain Relationships
General
Motors
FORD
Chrysler
Johnson
Controls
Excel/Atwood
Lear Favesa
Douglas and
Lomason
R-R Spring
Rockford
Spring
Collins and
Aikman
Miliken and
Company
Specialty
Screw
Dudek and
Bock Spring
Textileather
Technotrim
Canadian Fab
Business Drivers
• Geographical Trends
– China
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Local ownership 50%
Projected to be second largest
market by 2015
– Slowing in late 2004
$12B invested since 1994 for assembly plants
Issues: Steel consumption, currency
– U.S.
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Michigan
– Forth highest high-tech workforce in the nation
– 85% of U.S. automotive R&D
Southeast
– Mercedes, Honda, Toyota, BMW, Hyundai, Ford, GM, Nissan, Michelin, etc.
– 2.5M produced by 2005 (750K in Alabama)
Microsoft In Automotive
Delivering The Total Solution
Business Solutions
Enterprise
Resource
Management
Solution Categories:
Financials, Human Resources, Payroll,
Project Management
Analytics
Solution Categories:
Analysis and Reporting, Forecasting,
Budgeting, Consolidation
Solution Categories:
Inventory, Sales Orders,
Purchasing, E-commerce, Retail
Management, Manufacturing
Client and
Productivity
Platform
Supply Chain
Management
Customer
Relationship
Management
Solution Categories:
Sales, Marketing, Service
Manufacturing Solutions Scope
Plan
Demand
planning
Supply chain
collaboration
Product management
Engineering
Change management
Manufacturing
resource planning
Capacity planning
Forecasting
Available/capable to
promise
More…
Source
Inventory
management
Procurement
Vendor management
Quality control
Outsourcing/
subcontracting
Purchase
management
Direct materials
sourcing
Supply management
Product life cycle
management
More…
Make
BOMs and
routings
Production planning
Production
scheduling
Production control
Manufacturing order
management
MRP
Configuration
Job scheduling
Shop floor data
Collection
Quality control
Costing
More…
Deliver
Customer relationship
Management
Distribution
Management
Product configuration
Contract management
Catalog management
Transportation
management
Warehouse
management
Customer self-service
portal
More…
Automotive
Core Manufacturing
High-Tech
Mfg
Industrial
Equip/Mach
Financial
Management
Core Retail
Life Sciences
Government
Core Distribution
CRM
SCM
Core
Healthcare
Core Professional
Services
Not-for-Profit
Analytics
Religious Schools
Private Schools
State Schools
NGOs
Charities
Religious Orgs
Clinics
Hospitals
Physicians
Local
State
Federal
Nutriceuticals
Biotechnology
Medical Devices
Pharmaceutical
Industrial Mchry
Components
Material Handling
Construction Eqp
Machines
EMS
Components
Semiconductors
Systems Mfrs
OEMs
Components
Aftermarket
Motor Homes
Trailers
Campers
Microsoft Dynamics Vertical Industry Business Model
K-12
Education
Vertical
Core Public Sector
Automotive Manufacturing
Typical Product Needs
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Release Accounting
Integrated EDI and Bar Coding
Lean Manufacturing
Subcontracting
Contract and Supplier Management
In Line Vehicle Sequencing
Shop Floor Data Collection
Collaborative Design and Engineering
Microsoft Helps You Hurdle These Roadblocks
Comprehensive and robust
business systems and technology
at an affordable price
Increase production
throughput while
reducing costs
Improve customer
service while
increasing profitability
Applications And Architecture
Affordable Adaptability
Call To Action
© 2006 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.
© 2006 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.