Manufacturing Industry

The tough get going; as consolidation in automotive supply chains continues, and OEMs hand off more R&D and production to Tier Ones, manufacturers are responding with a heightened level of collaboration.(Original Equipment Manufacturer)

Industry Week, March, 2005 by Teresko, John

COLLABORATION. THAT'S THE ONE word description of the rapidly evolving business practice that increasingly defines success for automotive suppliers.

Some Tier-One suppliers, such as Michael J. Burns, chairman and CEO of Dana Corp., Toledo, Ohio, describe the emerging need for collaboration as an epochal event in the evolution of the automobile industry. Boston-based Jim Champy, chairman of consulting at Perot Systems Inc., goes further. He says the significance of the emerging collaboration requirement overshadows even the past watersheds of Henry Ford's mass production and lean manufacturing.

The issue is not that OEMs and Tier-Ones never cooperated--rather it is the growing magnitude of what's needed to add ever more value to the OEM. "To succeed,...

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