Audi saves millions by reducing number of possible option combinations and the build complexity of variations on the assembly line, reports Automobilwoche.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The newspaper quotes Klaus Alders, head of complexity management in Ingolstadt, who was surprised to find that up until two years ago there were 36 possible configurations of the steering wheel for the A4.
One more absurd example is that there were 130 different part numbers for the small internal light and light switch module in the headliner. The logistics involved in organising all these parts was unsustainable, said Alders, in an interview with the newspaper.
For the last four years Audi engineers have been working to stem the proliferation of variant combinations. Alders explained to Automobilwoche that the pressure for so many variations came from many different areas of the business from product development to marketing, purchasing and production.
The only way to overcome the problem is a more disciplined approach to change management, said Alders. Now Audi uses a special software, which can visualise the amount of variation as a ‘variant tree’. The new A3 and A6 have benefited from this approach and complexity has been drastically reduced with cost-savings of millions of euros. The internal roof light module now has just 32 variants.
The next A4 due in 2007 will have an average of 30% less variation that the customer will not notice. Customers will still be able to customise their vehicles.
The next step is to integrate suppliers into the process to help them reduce their costs. In parallel with the ‘variant tree’ software Alders is using the ‘Network of Automotive Excellence’ to spread his methodology and philosophy and improve the competitiveness of the sector, reports the newspaper.
