Page 40 - MetalForming April 2014

The Automotive
The Automotive
Uptick—
Uptick—
Working Through
Working Through
the Challenges
the Challenges
BY BRAD F. KUVIN, EDITOR
A t the Precision Metalforming Association’s upcoming aimed right at the hearts of automotive tier suppliers. A few
21st annual Automotive Parts Suppliers Conference
(APSC), April 30-May 1, 2014, industry executives will gain a huge dose of what it will take for the metalforming- industry supply base to grow much-needed capacity. And, many suppliers need to invest in technology to meet increased demand for stronger, lighter parts and assemblies.
For an up-close look at the supply-chain perspective of one automotive-OEM executive, here we reprint (with permis- sion) a recent article from Automotive Supply Chain maga- zine. Its editor, Sam Ogle, interviews Chrysler director of sup- plier relations Sig Huber, who discusses the firm’s World Class Manufacturing initiative with suppliers, its use of a new pre-sourcing strategy and other important and trending topics.
Also, we interviewed executives at Chrysler supplier Clips & Clamps Industries, for their thoughts on the automotive sup- ply chain as it specifically relates to the metalforming indus- try. Before I bring you those stories, here’s some perspective:
Forecasts from the Federal Reserve Board and the Manu- facturers Alliance for Productivity predict a 4-percent rise in U.S. production of motor vehicles and parts in both 2014 and 2015. This comes on the heels of a 7-percent uptick in 2013. Growth will continue, the forecast shows, by 2 percent per year in 2016, 2017 and 2018. That would move annual vehi- cle production to a supply-chain-straining 16.7 million units.
But that’s not the only looming challenge. In January, Automotive World unveiled its Top 10 Lessons for 2014,
38 MetalForming/April 2014
www.metalformingmagazine.com
key quotes:
• “Increasing production agility in 2013 has driven a num-
ber of trends and posed numerous challenges for suppliers to overcome. These are broken down into four main areas: a high volume of run-out vehicle models causing fluctuations in supplier demand and stock reserves; Tier 1 customers mov- ing production lines to develop more flexible and efficient methods; changes in OEM demand and variance of specifi- cation resulting in a need for adaptability and capacity to accept last-minute changes to orders; and fluctuating fore- casting resulting in a need for effective stock balancing and inter-plant communications.”
• “The pressure on OEM logistics has been increased by more sophisticated methods for production management, which involve more detailed parts call-offs from suppliers: Instead of an agreed number of parts being required each day, some OEMs are moving towards a trend whereby they detail each part for a specific car moving down the production line. New schemes such as this have sometimes stumbled on first implementation, highlighting the need for extensive consultation and preparation at all parts of the supply chain for harmonious introduction of new methods.”
• “Variance of specification and fluctuating demand has led to some suppliers nearing peak capacity. This can have a negative impact on part quality, with defects not always detected until on the production line. Safety stock contingency avoids initial delays, but suppliers can struggle to replenish the