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Standardization vs. optimization in automotive design: as a supplier, are you prepared when the economies of standardization win?

Publication: Automotive Industries
Publication Date: 01-JUN-04
Format: Online
Delivery: Immediate Online Access
Full Article Title: Standardization vs. optimization in automotive design: as a supplier, are you prepared when the economies of standardization win?(Plante & Moran)

Article Excerpt
In the battle between standardization and optimization, with each new automotive design, optimization has historically been the favorite, especially with the traditional Big 3. Suppliers have enjoyed the benefits of this with more parts and more opportunities. But the case for standardization is building and the tide has significantly shifted. Is your supplier organization ready to compete and succeed in this changing environment?

The Case Against Optimization

With each new American vehicle, design engineers have traditionally strived for the best new design to incorporate new technology or address performance issues and achieve the optimal component or system design for each particular vehicle. The pursuit of optimal design with each passing program has led to a proliferation of system variations, unique components and significantly new manufacturing tooling and equipment.

Obviously each make and model needs unique aesthetics, features and performance characteristics to be differentiated in the marketplace. One vehicle fits all hasn't worked with the automobile consumer since the peak Model T production in 1923. However, optimization has driven variation into parts of the vehicle that are undifferentiated to the consumer.

Why does each manufacturer have as many variations as they...

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