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Addressing Today’s challenges in automotive remanufacturingVIDEO ON THE TOPIC: Volkswagen Auto Parts Production Kassel
Automotive remanufacturing companies are nowadays facing a wide range of challenges. Typical challenges from the point of view of suppliers, producers and customers. Several process steps are analysed and problem fields are dissected: From the core management, to disassembly and cleaning to machining and testing. The main fields of challenges analysed in this paper are: the vagueness in respect of fiscal value, environmental regulations and taxation of core parts, the important need for a continuing qualification of staff and engineers, an efficient core management, the adaption of pricing models and the competence to handle the growing variety and complexity.
The focus of this analysis lies on activities of the independent after-market IAM for remanufactured products. Automotive remanufacturing is of growing importance within the automobile industry. Nowadays every OEM has programs with remanufactured parts and their market volume is growing [ 12 ]. Targeting for an earlier end of production EOP of new spare parts, OEMs establish more and more remanufacturing systems. Reasons for this are rising production costs per produced part as an effect of decreasing production output.
In many cases production lines and the resources e. Like all other branches the remanufacturing companies have to address challenges to stay competitive. The aim of this paper is to put important remanufacturing-specific challenges together and create awareness of all responsible parties involved and focuses herby on the automotive car remanufacturing industry in Germany.
Where possible, challenges are evaluated and potential solutions are given. In the end a recommended course of actions is given and an outlook concludes this paper. To obtain and verify the necessary information for the above mentioned problems, different methods and techniques have been applied:. Like every other industry as well, the remanufacturing business is subject to local, national and international restrictions, regulations and laws.
In general some facts can make remanufacturing business in the interaction with authorities and the state more complicated in comparison to other businesses:. Definition of the status of cores: The interpretation of the status of cores is often a matter of discussions.
Can cores be seen as a used spare part? As old metal? As a scrap part? As hazardous waste? Definition of status of remanufactured exchange parts: Equivalent to the discussion concerning the status of cores see above , there are different points of view on how to evaluate a remanufactured exchange part.
Can it be seen as a new spare part? As a used spare part? As a repaired spare part? But moreover the important field of duration of warranty is affected. Special tasks around the remanufacturing-specific transformational process: The remanufacturing process consists of process steps which differ from other transformational processes.
Some of these steps are of special interest to authorities and regulations, often dealing with environmental task:. Used parts are being transported — often over long distances — and are usually contaminated with material and liquids which could harm the environment. Therefore transport packaging has to therefore meet other, more strict demands. Very often authorities are demanding a complex and time-intensive reporting and communication process.
On the one hand it can be seen in our model as a counterbalance to politics and industry. A party which evaluates the actions of the other two parties in a critical form.
In this respect the actual attitude of the society towards remanufactured products is of interest. Last but not least the actual overall economic situation within a society is of high importance for the remanufacturing industry, too. These views on remanufactured products are very important for remanufacturing companies, as the society is the potential client of every company operating in this business.
Even if companies in the short term are just dealing with OE-customers: A product which has no acceptance within a society is non-marketable in the medium term. To generate, conserve and extend this attitude is an important challenge of the complete remanufacturing industry.
Remanufactured parts have to be seen from the customer side as environmentally and economic worthwhile [ 5 ]. On the other hand the society and the actual development in itself affect the framework of the potential activities of remanufacturing companies.
Important developments within the society with influence on remanufacturing are [ 12 ]:. Even though the total number of registered cars in Germany is rising constantly, the average mileage per car stays on the same level. Breakdowns of parts are highly dependent on usage and the spare part market does not grow equivalently to the total car market. The numbers of cars per family rises. But the total mileage per family does not rise.
The result is a lower mileage per car with the same effect as described in the first point. The switching to public transport and car sharing systems is resulting in a leak of potential customers for the automotive remanufacturing industry.
Some of the latest trends in the automotive industry were disadvantageous for the automotive remanufacturing industry. Some volitional, intended from OE-side, some unintentional. The composition and quality of materials as well as techniques and procedures of production have improved significantly in the last years. Moreover improvements in the field of operation liquids and the usage of early-warning systems as for example ODB On-Board-Diagnosis-System help to prevent fatal breakdowns of parts.
All these facts have led to a decrease in the failure rate of mechanical parts, which can in general be seen as a positive trend. The side-effect is that the need for exchange parts gets smaller and the competition in the remaining market gets bigger [ 1 ]. These new components are offering a new field of activity for remanufacturing companies. As all other parts too, electronic components break down and spare parts are needed. A lot of the traditional remanufacturing companies are today not prepared for this new challenge or are in the process of building up knowledge and competences in the field of electronics including core management, spare part sourcing, technical information and the supply of operating software [ 9 ].
In addition [ 4 , 6 ]:. Some materials in the construction of engine blocks e. Nikasil, Alusil make it hard or even impossible to machine and remanufacture them in the classical way by drilling and honing the cylinders.
The lightweight construction of engine blocks, that is getting more and more common, makes drilling and honing of cylinders hardly possible, too, as necessary tolerances can no longer be complied.
Products are becoming more complex and more heterogeneous: Components sometimes contain hazardous parts e. The demand for remanufactured parts is very often announced from OE-side at a very early point in the product life-cycle, but not so the spare part logistic from the OEM.
The production line of the new part is running, but the after-sales-department has not yet generated articles in the ERP. Moreover these parts are not stored in the central warehouses.
The original manufacturers of the spare parts are at that point only supplying the production lines. Contracts between the spare part manufacturer and the after-sales-organisation of the OEM are most often non-existent. Frequency of delivery, form of packaging, content and scope of delivery are not adaptable to spare part demand of remanufacturers.
These are reasons spare parts can often not be sourced, even though they are still produced and used in serial production lanes. In many cases the way of packaging and the packaging size is not adaptable to remanufacturing processes. This effect can occur in two characteristics:. In a serial production of remanufactured parts: Parts are sometimes available on the market but are provided in a form which is not adaptable to serial processes.
Delivery batches are too small, processes in the central warehouse logistics of the supplier are not designed for larger demands of a small quantity of spare part numbers and the form of packaging is adapted only to small bulk usages.
In small batch productions and in 1-toremanufacturing: A contrary effect can be seen in the remanufacturing process in small batches or of a single part 1-toremanufacturing; batch size 1. Spare parts on the market are not available in the required quantity. Even if the planned output is known, additional core parts have to be obtained to replace missing returns from customers.
Minimum inventory levels have to be held up high, even if this is non-economical. The quality of the core parts planned to return from customers is not clear. The effect is the same as described in the first point. The need and value for core parts is not known or not respected by all responsible persons on OE-side. The complexity of the available core parts is leading to an immense effort. This complexity has to be managed, the identification gets severe and inventory levels rise.
The specific date a core part is returned from the customer and available for the production process is hard to define. Planning systems have not yet found reliable techniques to forecast this point of time sufficiently. Modern electronic systems are discussed and tested to improve this fact [ 8 ]. This procedure is the first value added process step in the automotive remanufacturing business.
Insufficient execution of this process is leading to faulty identified parts and incorrect quality decisions which are leading to problems in the production process. A research lately made by a German university came to the conclusion that the highest number of identified effects for successful remanufacturing lies in the field of handling variety and resulting complexity.
A remanufacturer could and should strive for a unification of dress levels. According to one of the interviewed remanufacturing company mangers the following critical effects of remanufacturing can be illustrated in as Fig.
In the process step of disassembly, cleaning and second inspection challenges in the matter of design, technical evaluation and environmental regulations have to be accomplished.
These are first and foremost:. Core parts are most often heavily contaminated with oil, fat, particles, oxide and other operational liquids. Kind and level of contamination are often unknown before receiving the parts. The cleaning process itself is a great challenge for the companies and is often seen as the main competence and a unique feature of remanufacturing companies [ 6 ].
In Fig. The transformational process, which is in the main the remanufacturing production process, is the process step with the highest added value. In fact it is not only one process. Depending on the product and the depth of added value it can consist of a larger number of processes.
We now have two units, one in Pune and one in Nagpur. Lytraceae Article in Acta biologica Cracoviensia. Fiat has a manufacturing plant at Ranjangaon, Maharashtra, which has an installed capacity to produce , cars and engines, besides aggregates and components. General Characteristic of the District. Member for 4 Years. Its authorized share capital is Rs.
IP Challenges And Remedies In The Automotive Spare Parts Industry
Account Options Sign in. Industry statistics. United States. Bureau of the Census. Government Printing Office , - Manufactures. Selected pages Page Page
Account Options Sign in. Industry statistics. General summary and major groups 20 to Major groups 29 to United States.SEE VIDEO BY TOPIC: Auto Parts, Rubber Parts, Filters & Plastic Components Manufacturer Steelbird International India
Millenniums after the invention of the first wheel, the auto industry has come a long way. It has been a source of many innovations in manufacturing technology i. Today there are a greater number of auto manufacturers thriving the competition than ever before! Many industries have witnessed that the deployment of lean inventory levels does yield desirable result, but it is also seen to yield disappointing result in about a third of manufacturing industries. For a high-value product like an automobile, inventory is the biggest asset. Most of the auto manufacturer try to hold optimum inventory for various reasons like —. Most businesses hold inventories on hand to smoothen such seasonal demands. For example, every major festival, retailer, distributors, and auto manufacturers go in top gear to stabilize and meet the upcoming festival demands of customers.
SAP IBP for Auto Manufacturing Industry – Focus on Optimum Inventory Performance
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Automotive remanufacturing companies are nowadays facing a wide range of challenges. Typical challenges from the point of view of suppliers, producers and customers. Several process steps are analysed and problem fields are dissected: From the core management, to disassembly and cleaning to machining and testing. The main fields of challenges analysed in this paper are: the vagueness in respect of fiscal value, environmental regulations and taxation of core parts, the important need for a continuing qualification of staff and engineers, an efficient core management, the adaption of pricing models and the competence to handle the growing variety and complexity. The focus of this analysis lies on activities of the independent after-market IAM for remanufactured products. Automotive remanufacturing is of growing importance within the automobile industry. Nowadays every OEM has programs with remanufactured parts and their market volume is growing [ 12 ]. Targeting for an earlier end of production EOP of new spare parts, OEMs establish more and more remanufacturing systems. Reasons for this are rising production costs per produced part as an effect of decreasing production output. In many cases production lines and the resources e.
Track Parts and Materials on the Fly
Account Options Sign in. United States Census of Manufactures, Industry statistics. United States. Bureau of the Census. Government Printing Office , - Manufactures.
When you manufacture on-demand you need to know where everything is at any given time , including components, people, equipment, freight and finished goods. This is becoming an essential part of the automotive industry.
Account Options Sign in. United States.
Account Options Sign in. United States.