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Vehicle Design and Integration — Overview

Style Freeze
-28 -26 -24 -22 -20 -18 -16 -14 -12 -10 -8 -6 -4 -2 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28
-24 -20 -12 0 12 18
Toyota
Sales
Chief Engineer Preparation
Total Product Product Product Development
Product Concept
Planning Design & Engineering Trial-
Development Production
-16 Packaging/layout Design Revision for Mass
Productions + 12
Develop Needs Product Design

- 8 Mule mfg and evaluation 0

Hyundai -22 -12 0 6 15 24

Concept Product Product


Design Prototyping
Development Planning Preparation

– 17 Package Layout 0

- 14 Develop Draft Design -6 +6 +21


Develop Design Master Detailed
-5 Plan Drawing
Manage Engineering Changes
- 14 - 11 -8 +1
T-car T-car
Pre-evaluation of T-car
Design Mfg.

TML (As -17 -12 -6 0 10 16 22 27


Defined Design
in NPI) Product
Concept Concept Product Design Validation
and Ramp-up
Strategy and Pre-production
Evaluation Development and Development Productioni-
Planning
sation

Packaging
BIW, Closures, Trim Design

Vehicle Integration

Source: A.T. Kearney research, analysis and interviews A.T. Kearney 82/6865 4
Product design needs identification — Toyota definition

Start Time/Finish Time (From SF) Scope of Work /Activities Departments Involved Role FTEs Key Best Practices
New: -20 / +12 Build consensus on basic Product engineers at VDCs R 20 • Set based approach
Minor: -12 / +8 architecture and development needs • Aggressive reuse of
Carry Over: -7 / +4 • Define basic architecture/structure CE and Staff R 10 existing
per system/components Manufacturing Engineering S Need basis parts/components
Inputs for Source • Finalize carry-over/modification • Ohbeya activity
Work Stream of Inputs plan
• Product plans • Product • Finalize items to which new Facilities and Tools
• Product concept management technology will be applied
• Key dimensions dept. Present at CE concept review •
• Available • CE and staff
parts/component • Power train Supplier Role//Nature of
• Status of office/Vehicle Integration Involvement
Advanced Technology
component office • Suppliers with long term • Provide inputs and hold
development relationship and mutual discussions on latest
trust like Denso, Aishin, technologies
Araco etc. (the Keiretsu)
participate unofficially
Outputs From Parallel Work Key Review and Decision
Work Stream Streams in VDP Decisions Making Forum
• Direction of • Styling design • Platform / component / • ECE & CE
platform/component/parts design; • CE concept development parts carry over strategy • EVP of Engineering
e.g. vehicle architecture, component • New technology • VDP Centre Head
families, carryover / modification deployment plan • VP of Vehicle Planning
plan • VP of Production
(Some of the above are
Toyota Board members)

Source: A.T. Kearney research, analysis and interviews A.T. Kearney 82/6865 8
Packaging/Layout — Toyota definition

Start Time/Finish Time (From SF) Scope of Work /Activities Departments Involved Role FTEs Key Best Practices
New: -16/ 0 Conduct design Styling design dept R 20 • Set based approach
Minor: -9/0 • Review key requirements for • Front loading
Carry Over: -6/ 0 packaging/layout Product/evaluation engineers at A Need basis • Simultaneous
• Develop rough dimensions and VDCs engineering
layout based on the category and CE and Staff A Need basis • Close work with styling
Inputs for Work concept of the vehicle design studio
Stream Source of Inputs • Develop packaging/layout plan in Manufacturing Engineering S Need basis
accordance with styling design
• Direction of • CE and staff Facilities and Tools
options
platform/compo • Styling design
• Finalize packaging/layout • CATIA V5
nent/parts design
Present at design check gate review • Engineering standards
• Styling options
• Product plans Role//Nature of
• Product Supplier Integration Involvement
positioning
• - • -

Review and Decision


Outputs From Work Stream Parallel Work Streams in VDP Key Decisions Making Forum
• Frozen detailed dimensions and • Styling design • Detailed dimensions and • ECE & CE
package layout • Product design layout freeze • EVP of Engineering
• Design in activity by key suppliers • VDP Centre Head
• Manufacturing process design • VP of Vehicle Planning
• VP of Production
(Some of the above are
Toyota Board members)

Source: A.T. Kearney research, analysis and interviews A.T. Kearney 82/6865 11
Product Design — Toyota definition

Start Time/Finish Time (From SF) Scope of Work /Activities Departments Involved Role FTEs Key Best Practices
New: -12/ 0 Conduct design Product/evaluation engineers R 100 • Set based approach
Minor: -7/0 • Develop layout plan in accordance at VDCs • Front loading
Carry Over: -4/ 0 with styling design options • Simultaneous engineering
• Develop drawings/3D models based Styling design dept R 20 • Strong involvement of
on R&D standards and CE and Staff A Need basis manufacturing
Inputs for Source packaging/layout plan engineering function
Work Stream of Inputs • Give approval for design-in parts Manufacturing Engineering S Need basis
• Product Design • CE and staff • Develop physical pre-proto Facilities and Tools
Needs • Styling design subsystems and evaluate for new
• Direction of subsystems by using mules • CATIA V5, Pro/Engineer, In-house CAD/CAM/CAE
platform/compo • Develop bill of material system: existing parts
nent/parts Present at design check gate review • Engineering standards
design • Prototype developing plant
• Available Supplier Role//Nature of
parts/component Integration Involvement
• Key dimensions
• Styling options • Key design-in suppliers • Design and evaluate parts
• Product plans • Request for approval
• Product
positioning
• Target cost
Outputs From Parallel Work Key Review and Decision
Work Stream Streams in VDP Decisions Making Forum
• Drawings and 3D models of • Styling design • Detailed dimensions and • ECE & CE
components and parts • Design in activity by key suppliers layout freeze • EVP of Engineering
• Bill of material for prototyping • Manufacturing process design • Approval of parts • VDP Centre Head
drawings and bill of • VP of Vehicle Planning
material • VP of Production
(Some of the above are
Toyota Board members)

Source: A.T. Kearney research, analysis and interviews A.T. Kearney 82/6865 12
Vehicle Design and Integration — Product design modification for mass production

Start Time/Finish Time (From SF) Scope of Work /Activities Departments Involved Role FTEs Key Best Practices
New: 0/ +12 Modify design based on prototyping Product/evaluation engineers at R 110 • Documentation of
Minor: 0/+10 • Result of pre-production VDCs lessons and learns
Carry Over: 0/ +8 • Result of pre-production vehicle • Extensive use of digital
tests Prototyping A Need basis assembly and virtual
Present design check gate review CE and Staff A Need basis testing
Inputs for Source Release product drawing for Pre • Strong involvement of
Work Stream of Inputs production and mass production Manufacturing Engineering S Need basis manufacturing
• Drawings and • CE and staff Facilities and Tools engineering function
3D models of • Prototyping
components and engineers • CATIA V5, Pro/Engineer, In-house CAD/CAM/CAE
parts • Product / system: existing parts
• Bill of material evaluation • Engineering standards
for prototyping engineers at • Prototype developing plant
• Prototyping and VDCs Role//Nature of
vehicle Supplier Integration Involvement
evaluation
results • Key design-in suppliers • Design and evaluate parts
• Request for approval

Outputs From Parallel Work Key Review and Decision


Work Stream Streams in VDP Decisions Making Forum
• Drawings release for pre-production • Development and evaluation of • Detailed dimensions and • ECE & CE
and mass production pre-prototypes layout freeze • EVP of Engineering
• Die design and development • Approval of parts • VDP Centre Head
• Manufacturing process design drawings • VP of Vehicle Planning
• Suppler selection for mass • VP of Production
production (Some of the above are
Toyota Board members)

Source: A.T. Kearney research, analysis and interviews A.T. Kearney 82/6865 19
Facilities and tools

Facilities and Tools Description


IT Tools • CAD/CAM/CAE • CATIA V5
— Used for parts made from sheet metal like body design to develop “surface” model
• Pro/Engineer
— Used for power train and engine design to develop “solid” model
• In-house CAD/CAM/CAE system
— Mainly used for modification of existing parts developed by using the in-house system
• Test and Communication • V-Comm
— A space consists of three 200 inches screen and CAE tools (Delmia) in order to observe and evaluate
digital mock-ups- visual appearance, interference, various ergonomic situation in manufacturing, etc.
— Basically led by manufacturing engineering depts.
— 20 locations in Toyota and key suppliers (mainly body makers)
• Virtual Real Simulator
• VCS (Visual Communication Service)
— Communicate result of each digital mock-up evaluation to all related engineers by email enclosed
URL address where snap shot of digital mock-up shown with some comment on design problems
Design Standard • Component/Parts layout standard
— A standard defined parts and component layout/anatomy
• Engineering check list
— A design guideline and checklist, continuously updated by the responsible engineer
• Requirements provided by Manufacturing Engineering
— Requirements to be obeyed in product design stage, considering manufacturability and constraints of existing production equipments
Prototype Manufacturing • Huge machining line and flexible assembly line to develop pre-prototype vehicle beside Toyota R&D center
Factory (In-house)

Source: A.T. Kearney research, analysis and interviews A.T. Kearney 82/6865 22
Vehicle design — Sequential validation process versus functional build

Definitions
Sequential Build — Process of validating the specs of components, sub-assemblies and the vehicle in a bottom-up, serial and hierarchical manner
Functional Build — Integrated process of validating the components, sub-assemblies and the vehicle at a single point in time

Sequential Build Process (Hyundai way) Functional Build (Toyota way)


• Fundamental assumption that quality of each higher assembly is dependant • Quality and fit of final assembly is paramount over that of individual parts
on quality of incoming lower level components • Process takes into account the fact that components dimensions change
• Bottom up approach to validation while handling, welding and assembly; therefore need to hold component
— Components level re-work till after assembly stage
— Sub assemblies • Integrated process of validating components, sub-assemblies and finished
— Finished body body i.e. Functional Build
• Components need to pass stringent dimensional norms before validating sub • Components and sub-assemblies with dimensional deviations may not be
assemblies; sub assemblies need to be developed to specs before reaching corrected immediately
the finished body validation stage • Decisions are taken at “screw-body” stage when all components and sub
• The approach often leads to high lead time, high cost and excessive rework assemblies are screwed/riveted together to create a “screw-body”
— Components are checked for specs before they are tried in • Focus is on “what is important to customer”; do not commit resources to
subassemblies / final assemblies correct dimensions that are un-important to customer
— Dies need to be reworked if components do not meet specs • Treat original part dimensions as targets rather than given or absolute
• The original part dimensions are required to be treated as absolute requirements
requirements though in reality changes take place • Shifting of designers’ view from components to entire body
• Relatively narrow focus of design engineers – trying to perfect the • Final specs for components within an assembly are determined concurrently
components through re-work and iterations along with approval of assembly
• Requires active downstream involvement of designers in the validation
process

Toyota pioneered the functional build approach; NA OEMs


are beginning to adopt this approach, although slowly

Source: A.T. Kearney research, analysis and interviews A.T. Kearney 82/6865 33
Package layout — Hyundai definition

Start Time/Finish Time (From SF) Scope of Work/Activities Departments Involved Role FTEs Key Best Practices
• New • -17 / 0 • Review 1st product plan • Product Dev. Team 1, 2, • R • ~12 • Close and frequent
• Facelift • -8 / 0 • Develop basic layout 3 coordination among
— Engine related functions/
— Transmission • Project Manager • A • Need basis work streams
— Chassis • Product Planning • S • Need basis • Continuous real-
Inputs for Work Source of — Electricals time benchmarking
• Set weight target • Engineering Design • S • Need basis • Quick adoption of
Stream Inputs
• Prepare styling requirement and provide Facilities and Tools best practices and
• Product • Product inputs to Styling global benchmarks
initiation report Planning • Specify and refine package layout • CAD
• 1st/2nd product • Conduct layout presentation meeting
plan • Release skin layout and freeze layout
Supplier Integration/ Role/nature of
• Identify interferences and propose
Involvement of Suppliers Involvement
Outputs From Work Stream potential solution
• N/A • N/A
• Skin layout
• Finalised package layout
Parallel Work Key Review and Decision
Streams in VDP Decisions Making Forum
• Product planning (R&D and marketing) • Confirmation of final • Layout presentation
• Sales planning package layout meeting
• Quality targeting • Project Manager
• Styling design • Head of Product Dev.
• Draft design and T-car evaluation Center
• Product profitability review • Head of R&D
• Material cost estimation
• Production preparation
• Supplier selection for long lead time parts

Source: A.T. Kearney research, analysis and interviews A.T. Kearney 82/6865 38
Develop design draft and plan — Hyundai definition

Start Time/Finish Time (From SF) Scope of Work/Activities Departments Involved Role FTEs Key Best Practices
• New -14 / -6 (draft)
Develop Design Draft • Eng. Design Center R ~90 • Close and frequent
-5 / 0 (plan) • Define basic structure of key vehicle coordination among
• Facelift -6 / -3 (draft) systems • Project Manager A Need basis related functions/ work
-2 / 0 (plan) • Incorporate learnings from past field • Product Engineering S Need basis streams
claims/issues in design • Quick adoption of best
Inputs for Source of • Develop approaches to realize product and • Powertrain R&D S Need basis practices and global
Work Stream Inputs performance targets benchmarks
• Define items to which new technology will Facilities and Tools
• Past claim/issue • Product
data planning be applied • CAD/CAM/CAE
• Principles in • Product Dev. • Arrange design draft presentation meeting
applying new Center (I) Develop Design Plan
technology • Parts • Specify design concept draft
• Parts Development — Define target dimensions
commonization (in — Clarify design target for key vehicle
plan Purchasing systems
• Approved BU) — Reflect new technologies
design draft • Eng. Design — Solve past issues in the new design
• 1st/2nd// 3rd Center • Arrange design plan presentation meeting
Supplier Integration/ Role/nature of
product plan Involvement of Suppliers Involvement
Outputs From Work Stream • Key suppliers (most are
Level III integration • Propose new tech. and
• Design draft suppliers) products
• Design plan
Parallel Work Key Review and Decision
Streams in VDP Decisions Making Forum
• Product planning (R&D and marketing) • Design draft approval • Design draft
• Styling design • Design plan approval presentation meeting
• Sales planning • Design plan
• Quality targeting presentation meeting
• Product profitability review • Head of R&D
• Material cost estimation
• Production preparation
• Supplier selection for long lead time parts

Source: A.T. Kearney research, analysis and interviews A.T. Kearney 82/6865 39
Master/detail drawing — Hyundai definition

Start Time/Finish Time (From SF) Scope of Work/Activities Departments Involved Role FTEs Key Best Practices
• New +1 / +6 • Validate Lay Out (powertrain, body, chassis, • Eng. Design Center R ~100 • Close and frequent
• Facelift +1 / +5 trim, electrics) • Vehicle Electronic R ~20 coordination among
— Check part-to-part fitness Center related functions/
— Check mass production feasibility work streams
• Develop parts/assembly drawings which • Powertrain R&D S Need basis • Quick adoption of
meet regulation, reliability, and proto design best practice and
standards • Production S Need basis global benchmark
Inputs for Work Source of
• Conduct design review meetings Engineering
Stream Inputs
— Master drawing presentation meeting
• List of Black Box • Product Facilities and Tools
(Master drawing step)
items planning — Product drawing final review meeting • CAD
• Proto design • Product Dev. (Detail drawing step) • FMEA (Failure Mode Effect Analysis)
standard Center • Release product drawing
• Existing model • Parts — Provide dimension spec. of MIP, black Supplier Integration/
BOM drawing Development box item, detail-controlled items Involvement of Suppliers Role/nature of Involvement
• List/data of • Eng. Design • Suppliers for black box • Propose new tech. and
commonization Center items and detail products
parts controlled parts • Supplier design-in
• Parts numbering activities
system
• Existing model
Parts Catalogue
• Joint cost review
• Design draft
• Design plan
• Package layout Parallel Work Key Review and Decision
• PEI Streams in VDP Decisions Making Forum
Outputs From Work Stream • Product planning (R&D and marketing) • Approval of product • Master drawing
• Product drawings which include • Sales planning • Drawing • presentation meeting
dimension spec. of MIP, black box • Quality targeting • Product drawing final
item, detail-controlled items) • Product profitability review review meeting
• Material cost estimation • Head of R&D
• Production preparation
• Supplier selection for long lead time parts

Source: A.T. Kearney research, analysis and interviews A.T. Kearney 82/6865 40
Inputs from parallel workstreams linked with vehicle design

-20 -19 -18 -17 -16 -15 -14 -13 -12 -11 -10 -9 -8 -7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6
Product 1stStyling 2ndStyling Model Model Start
Key Milestones Initiation Evaluation Evaluation Approval Freeze Die Design
▼ ▼ ▼ ▼ ▼ ▼
Product
Layout Design Draft Design Plan Master Drawing Drawing
Presentation Presentation Presentation Presentation Final
Product Meeting Meeting Meeting Meeting Review
Planning (R&D) Product Planning & PEI
1st Product 2nd Product 3rd Product
Plan Plan Plan

Product Package Layout


Development
Skin Layout Layout Freeze

Concept Sketch
Styling Rendering & Tape Drawing
Design
External/Internal Modeling CAD data for model ready
for mass production

Design Draft
Eng. Design Plan
Design Master/Detail Drawing
T-Car Design

Prototyping T-Car Mfg.


T-Car Mfg. (2)

T-Car Test Results


Test
T-Car Test/Evaluation

Source: A.T. Kearney research, analysis and interviews A.T. Kearney 82/6865 41
Inputs/outputs of vehicle design workstream

• Past claim/issue data • Approved design draft • Approved design plan


• Principles in applying new tech. • Skin layout • CAD data for model ready for mass
• Parts commonization plan • 3rd product plan production
• 1st/2nd product plan • T-car test results
Input Input Input

Develop Design Draft Develop Design Plan Master/Detail Drawing


Output Output Output

Design Draft Design Plan • Product Drawing


• Basic structure for key systems • Specified structure for key systems — Mainly, dimension spec. of MIP,
— Body/Chassis/Trim/Electricals/Po — Body/Chassis/Trim/Electricals/ black box, detail-controlled
wertrain Powertrain items (Test spec. is usually
• How to reflect/solve past claim/issues • How to reflect/solve past claim/issues finalized during Pilot 1 period)
in design in design
• Design approach to achieve targets Specify • Design approach to achieve targets
— Performance And — Performance
— Durability Refine — Durability
— New Tech. — New Tech.
— Automation — Automation
— Cost — Cost
— Weight — Weight
• FMEA* plan by system • FMEA* plan by system
— Body/Chassis/Trim/Electricals/Po — Body/Chassis/Trim/Electricals/
wertrain Powertrain
* Failure Mode Effect Analysis
Source: A.T. Kearney research, analysis and interviews A.T. Kearney 82/6865 42
T-car design, manufacturing, and evaluation — Hyundai definition

Start Time/Finish Time (From SF) Scope of Work/Activities Departments Involved Role FTEs Key Best Practices
• New -14 / -12 • Design T-car (Eng. Design Center in- • Eng. Design Center R Not available • Install powertrain for
(Design) charge) 2nd T-Car to 1st T-
-11 / -9 (Mfg.) — Review 1st/2nd product plan for input • Prototyping Office R Not available
Car, and modify these
-8 / +1 (Test) — Design T-car layout • Test Center R Not available vehicles suitable for
• Manufacture T-car (Prototyping Office in- 2nd T-Car test
charge) Not available (thus avoid
Inputs for Source
Work Stream of Inputs — Manufacture T-car body, chassis, trim • Project Manager A Need basis manufacturing
(Existing models are used) additional vehicles for
• Product plan • Product — Install powertrain for 1st T-car Facilities and Tools 2nd T-Car test)
— Key specs planning — Release 1st T-car • CAD • Reflect T-car test
— Powertrain (R&D • Test/Evaluate T-car (Test Center in-charge) • Proto Assembly Line (In-house) results in early stage
selection/ focused) — Conduct powertrain mountability test of VDP
installation and basic test in 1st T-car Supplier Integration/ Role/nature
plan — Install powertrain for 2nd T-car to 1st T- Involvement of Suppliers of Involvement
— Platform car and release 2nd T-car • Suppliers for assembly • Outsource T-Car
sharing plan — Conduct vehicle power performance work assembly work in in-
— Configuratio test, emission test, gear ratio test in 2nd house Proto Assembly
n plan for T-car line
body, — Input test results to VDP
chassis,
powertrain,
etc.
Outputs From Work Stream
• T-Car test results Parallel Work Key Review and Decision
• Engineering changes input Streams in VDP Decisions Making Forum
• Product planning (R&D and marketing) • T-car release/test schedule • Project manager
• Sales planning mgt. • Functional managers
• Quality targeting • Reflection of T-car test (product planning, eng.
• Styling design results to eng. design design, prototyping, test,
• Development of design draft and plan powertrain R&D)
• Product profitability review
• Material cost estimation
• Production preparation
• Supplier selection for long lead time parts

Source: A.T. Kearney research, analysis and interviews A.T. Kearney 82/6865 43
HMC is executing sequential validation process, using FMEA activities

FMEA* Interpretation Level Validation Approach


Characteristics
• Fundamental assumption that
Vehicle quality of each higher assembly
is dependant on quality of
System Level Impact to
incoming lower level
FMEA Vehicle
System components
• To interpret a failure that took
Sub-system Level Impact to place, failures are analyzed in
FMEA System the reverse order, or from small
Sub-system
Bottom-up to big parts like “component
failure→impact to sub-system
Impact to functions→impact to system
Assembly Assembly Level functions”
Sub-system
FMEA • Components need to pass
/Assembly
stringent dimensional norms
Sub-assembly before validating sub
Impact to assemblies; sub assemblies need
Component Level
Assembly/ to be developed to specs before
FMEA
Component Sub-assembly reaching the finished body
validation stage
Note: *Failure Mode Effect Analysis

Source: A.T. Kearney research, analysis and interviews A.T. Kearney 82/6865 46
Facilities and tools used in the work stream

Facilities and Tools Description


• CAD (Catia V5)
• FMEA (Failure Mode Effect Analysis) • A means to estimate and interpret potential failures, its
impact to customer and the root cause of the failure in the
product under development.
• This is conducted during design stage to secure product
quality in the earlier phase of product development and to
ensure quality products are delivered to customers.
• Objective of FMEA is
— To identify potential failure modes and assess its
impact
— To identify key characteristics that should be checked
with extra care
— To prioritize potential mfg/design failures
— Help eliminating/preventing product and process
issues
• In-house Proto Assembly Line • Assembly line to manufacture proto-car is also used for
manufacturing T-car
• The assembly line is located within Namyang R&D
Center

Source: A.T. Kearney research, analysis and interviews A.T. Kearney 82/6865 49
Key Best Practices

Participation by all relevant functions in the design presentation/review meeting has been introduced as a formal process
in Vehicle Development Process to emphasize cross-functional consensus
With recent focus on quality activities in the NPD process, quality-related activities are given high priorities
• FMEA activities
• Planning/Reflection activities to solve Initial Quality Study (IQS) / past claim issues
Cost reduction by avoiding additional T-Car manufacturing
• 2nd T-car is not manufactured separately, instead, 1st T-car is modified for 2nd test

Note: Initial Quality Study: Regular survey conducted by J.D. Power to identify customers’ claims on a vehicle quality 3 months after their purchasing.
Source: A.T. Kearney research, analysis and interviews A.T. Kearney 82/6865 50
Parallel Workstreams

-22 -20 -18 -16 -14 -12 -10 -8 -6 -4 -2 0 2 4 6 8 10 12 14 16 18 20 22 24

Phases Concept Development Product Planning Design Prototyping Product Preparation

Develop Concept

Product Planning and Development of PEI

Product Planning (Marketing Side)

Rendering
Concept Sketch & Tape Drawing External/Internal Modeling

Package Layout

Develop Draft Design Develop Design Plan Master Detailed Drawing Manage engineering changes

T-car Design T-car Mfg. Pre-evaluation of T-car 1st Prototyping 2nd Prototyping

2nd Test /
1st Test / Evaluation
Evaluation

Select Suppliers for Long Lead Parts Select Suppliers for Other Parts

Develop Prototype Parts

Develop Pilot Parts Initial Sample Inspection

Development Schedule Management

Prepare Die and Jig Modification

Production Prep
Secure Process Capability
.Draft /Plan

P1 P2

Final Test/Eval.
VDP Phases
Cost Estimation & Target Cost Review
Core workstream Ensure Quality

Parallel work streams


Material Cost Estimation

Source: A.T. Kearney research, analysis and interviews A.T. Kearney 82/6865 51

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