Complexity Management for the Automotive Industry:
Modular Product Concepts to Reduce Complexity
Do your new car customers prefer white, silver or orange vehicles?
The answer is not based purely on individual preferences. It actually
depends largely on where in the world your customers are located. The
same goes for how many cup holders, or if radio speakers should be in
the rear of the car only or also in the side door panels. Not only do
customers’ preferences differ, but also environmental factors and other
standards vary depending on geographic region.
Globalization is forcing the automotive industry to provide numerous
options and custom features. In addition to the vast product range, and
the increasing number of components in new vehicles, companies must also
deal with the proliferation of new technologies. To thrive in today’s
global market, automotive companies must first get a handle on their
complexity.
A.T. Kearney helps automotive companies create modular product concepts
to reduce complexity on the product and component level. With modules,
companies can meet market demands more economically and standardize
interfaces irrespective of who their customers are or where they live.
Our work includes assessing potential future markets and product
combinations, and using target costing to evaluate the costs of future
strategies. Overall, we help our clients reduce complexity through
optimal systems that are designed to streamline production, eliminate
costs, and improve global transparency.
A.T. Kearney Automotive Complexity Expertise includes:
- Commonality strategies — we work with companies to capture
and leverage engineering knowledge that automates repeatable processes
to deliver more product features for the same cost, lower cost for the
same parts, improve quality, and reduce lead times
- Target costing — we assist companies in developing
data-driven and fact-based cost models to determine the best practice
costs to increase global material cost competitiveness
- Product development organizational effectiveness — we help
companies improve their engineering effectiveness by identifying
required core competencies, identifying efficiency gaps, and defining a
strategy or vision for product development within the organization
For a follow-up discussion, Contact The Automotive Consulting Practice.
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