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Opportunity and Constraints analysis

Joint architecture development programs. Opportunity and Constraints analysis. Nevio DI GIUSTO Vice President – Product Development. Platform development at F iat on stand-alone projects Platform development challenges Benef its from a m odular approach Joint platform development programs

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Opportunity and Constraints analysis

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  1. Joint architecture development programs • Opportunity and Constraints analysis Nevio DI GIUSTO Vice President – Product Development

  2. Platform development at Fiat on stand-alone projects • Platform development challenges • Benefits from a modular approach • Joint platform development programs • Barriers to overcome

  3. FUNCTIONAL AREAS Dt A1 Dt A2 Dt A3 PLATFORM A … … … … … … PLATFORM B Dt B1 Dt B2 Dt B3 PLATFORM DEFINITION AT FIAT

  4. A COMPREHENSIVE VISION OF THE WHOLE PROCESS The platform ensures a comprehensive vision of the whole process, participating in Supply Planning and then being responsible for “Impostazione”, Development and Maintenance of the product family PRODUCTS MARKET OFFER - “IMPOSTAZIONE” / DEVELOPMENT MARKET OFFER MAINTENANCE MARKET OFFER -PLANNING SERVICES

  5. MARKET OFFER PLAN (Strategic) MARKET OFFER PLAN (Operational) LOGISTICS AND COMMERC. PLATFORM PRODUCT AND PROCESS development (Industrializzazione) “IMPOSTAZIONE” / PLATFORM PGP (“Piano Gamma Prodotti”) (TARGET SETTING STRATEGICO) PRODUCT MAINTENANCE TARGET SETTING OPERATIVO TARGET ACHIEVING “INNOVAZIONE” COMPONENTS DEVELOPMENT MANUFACTURING SUPPORT PROCESSES -120 -80 0 +20 -49.5 -41.5 PLATFORM - PROCESS MAP = Process integration

  6. Platform development at Fiat on stand-alone projects • Platform development challenges • Benefits from a modular approach • Joint platform development programs • Barriers to overcome

  7. PLATFORM DEVELOPMENT CHALLENGES • Comprehensive approaches to platform development process may become “monolithic” and, if this occurs, they present many drawbacks • Since platform development scope should span over 2 vehicle lifecycles, an enhanced flexibility and modularity is helpful in • optimizing investment • reducing costs and engineering expenses • The need for flexibility is further enhanced with regard to joint architecture development programs, in which the partners wish to differentiate on subsystems that affect customers’ perception of the vehicle

  8. PLATFORM DEVELOPMENT CHALLENGES • Two ways of addressing modularity needs • Disentanglement of some portions of the process • P.S.C. (Component Development Platform) • “Impostazione” Process • Definition of a perimeter of systems/subsystems • that can be harmonized • that have enough flexibility to last for 2 lifecycles or - at least – capable to be easily adapted to future requirements

  9. PLATFORM PROCESSES Maintenance “Impostazione” Development “Innovazione” Generation and Alternative Evaluation Process was anticipated to “Impostazione” phase

  10. Vehicle valuewithout powertrain 100% ARCHITECTURE 35% OTHER COMMON COMPONENTS 35% 30% Brand (out of scope) Second cycle First cycle Core entries Derivatives JOINT PERIMETER DEFINITION

  11. Developmentview Vehiclesview JOINT PERIMETER DEFINITION Common development (shared and specific) Brand CCD Architectural Center Joint Team Brand/ Style Other stand alonecomponents Architecture Dominant (Hard) ... Tuning/Brand .....

  12. Platform development at Fiat on stand-alone projects • Platform development challenges • Benefits from a modular approach • Joint platform development programs • Barriers to overcome

  13. PRELIMINARE BARRIERS TO OVERCOME IN JOINT PROGRAMS • Process • Corporate Culture • Language

  14. PROCESS • In some cases, vehicle development process re-design - that was underway in Fiat before the start of joint projects - helped the convergence on process • For instance the role of Platform director in Fiat was already aligned with the GME one • Nevertheless, process and standards alignment is still one of the main barriers that Fiat-GM joint development programs are currently facing “PLATFORM DIRECTOR” FIAT AUTO VEHICLE LINE EXECUTIVE GM EUROPE • Role • Relationship with Functional Areas • Core Team • Process Integration

  15. PROCESS Workgroups for Blue Book activities Workgroup 1 Architecture Development Process & Timing Workgroup 2Program Organization Charts & Roles and Responsibilities Workgroup 3 Key Business Processes and Information Systems

  16. CORPORATE CULTURE, LANGUAGE, ISP • Team building events, conducted with the support of Parent Co. HR departments, are helpful tools to share project members’ experiences • For Fiat-GM joint programs language represented a big issue; • Expatriates satisfaction

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