7/27/2019 What is the Highly Optimized Manufacturing Process

1/3

What is the highly optimized manufacturing process?

Management had agreed on a basic imperative that company would use highly

optimized manufacturing process.

Intent Higher volume, Lower Cost manufacturing

ITT-Teves was the Worlds leading supplier of four wheel passenger car ABS and

TCS.

ITT-Teves - Market Leader ABS & TCS

ITT acquisition Strategy

Bosch introduced and Alfred Teves following in 1985.

Till 1988 Alfred had MK2, in 1990 they launched

ITT-Automotive manufacturing is driven by Market

Opening up plants in Ashville and Morganton.

Shorter Product Life Cycles

MK2 6Years

MK4G -

7/27/2019 What is the Highly Optimized Manufacturing Process

2/3

US They go and check the contract

Vol req 50000 to 400000

Japan

Target pricing approach 90% of this project was about getting costs down.

Worry about volumes and passing Bosch

Not enough time to optimize all manufacturing equipment in advance of installation

in the plant

Concept of Simultaneous Engineering

Have they considered voice from US during Simultaneous Engineering?

Was EU manufacturing team in touch with US team during development?

Unfortunately, not all the members took the opportunity to participate

DFM

Self Clinching required a perfect fit High quality inspection needed?

Increased complexity of design

To meet future challenges more improvements are necessary - Does this

mean MK20 higher versions expected?

Modular Design

Very good R&D Team

- FSR & EBD Proprietary technology

Modularity & Standardization -> great deal of Manufacturability and Low cost ->

trade-offs in reduced product variety and customization

Manufacturing Strategy for the MK20

To cut labor costs in response to customer demands for lower cost products

Transfering manufacturing of highly labor-intensive or relatively unsophisticated

products outside Germany

7/27/2019 What is the Highly Optimized Manufacturing Process

3/3

Frankfurt plant focus on supplying customer in Europe.

Morganton and Asheville Plant would primarily supply customers in North America

Production Capacity

Frankfurt - 2Mn/Y

Mechelen - 1Mn/Y

Morganton - 1Mn/Y

Asheville - 3Mn/Y

Standardized Process Technology

Use the same assembly process in all the plants

Company to source Globally

- Earlier Frankfurt plant had sourced to Morganton Plant for Chrysler

Global Sourcing could allow ITT to run preproduction series for customers

Didnt have to invest in production capacity in advance

How flexibility is needed?

High degree of flexibility

First time yields - 98%

Second time yields 99.7%

25% of the Capital equip costs for MK 4 were related to QA.