Open Innovation in Automotive Industry
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Questions and Answers

What is the primary goal of open innovation?

  • To limit collaboration to internal teams only
  • To reduce the number of suppliers involved in product development
  • To create close collaboration on R&D and market introduction (correct)
  • To maintain complete control over the innovation process

    • Closed collaboration assumes that external knowledge is more valuable than internal knowledge.

    False

    Name one innovation from a supplier in the automotive industry.

    Fuel injectors by Bosch

    Early supplier involvement in new product development results in shorter __________ lead-time.

    <p>development</p> Signup and view all the answers

    Match the following innovations with their respective suppliers:

    <p>Fuel injectors = Bosch Car seats = Lear Tyre pressure sensor = Michelin Airbags = Autoliv</p> Signup and view all the answers

    What is a common source of new ideas during the Idea Generation stage?

    <p>All of the above</p> Signup and view all the answers

    Technological collaboration always leads to successful exchanges between partners.

    <p>False</p> Signup and view all the answers

    What is defined during the Definition Stage of product development?

    <p>Materials to use and physical requirements for manufacturing.</p> Signup and view all the answers

    At the Concept Study Stage, new product ideas are translated into a first conceptual ______.

    <p>design</p> Signup and view all the answers

    Match the following stages of product development with their descriptions:

    <p>Idea Generation = Emergence of new product ideas from customer contact Concept Study = Translation of ideas into a conceptual design Definition Stage = Decisions on materials and design testing Feedback Stage = Analysis of customer responses to product prototypes</p> Signup and view all the answers

    What is the primary role of a purchasing engineer?

    <p>To evaluate designs against purchasing-specific criteria</p> Signup and view all the answers

    Presidential engineering involves placing supplier engineers permanently within the organization.

    <p>True</p> Signup and view all the answers

    What is the degree to which customer requirements are met referred to as?

    <p>Quality</p> Signup and view all the answers

    A quality product is one where suppliers and customers agree on quality requirements and these requirements are ______.

    <p>met</p> Signup and view all the answers

    Match the terms with their definitions:

    <p>Quality management = Demonstrating that requirements are met objectively Purchasing engineer = Specialist connecting engineering and purchasing Presidential engineering = Co-locating supplier engineers within the organization Quality = Degree to which customer requirements are met</p> Signup and view all the answers

    What is the main focus of the product development phase?

    <p>Translating product design into prototypes</p> Signup and view all the answers

    In pre-production planning, the marketing department does not play a role in determining capacity requirements.

    <p>False</p> Signup and view all the answers

    What is the purpose of pilot production?

    <p>To manufacture several pre-production series and conduct thorough quality inspections.</p> Signup and view all the answers

    Early Supplier Involvement (ESI) allows suppliers to criticize future design and suggest alternative ________.

    <p>materials</p> Signup and view all the answers

    Match the following phases with their correct descriptions:

    <p>Product Development = Translating design into prototypes Pre-production Planning = Determining capacity requirements based on forecasts Pilot Production = Manufacturing pre-production series for inspection Start of Regular Production = Commencing actual production after resolving issues</p> Signup and view all the answers

    What are internal error costs primarily associated with?

    <p>Mistakes identified before product delivery</p> Signup and view all the answers

    External error costs include reputation loss.

    <p>True</p> Signup and view all the answers

    Name one cost included in internal error costs.

    <p>Cost of corrective measures.</p> Signup and view all the answers

    The process of handling customer complaints falls under __________ error costs.

    <p>external</p> Signup and view all the answers

    Match the following costs with their categories:

    <p>Cost of processing complaints = External error cost Loss due to product downgrading = Internal error cost Reputation loss = External error cost Cost of corrective measures = Internal error cost</p> Signup and view all the answers

    What is the purpose of quality assurance?

    <p>To systematically check that methods and procedures lead to desirable outcomes</p> Signup and view all the answers

    External assessments are also referred to as auditing.

    <p>False</p> Signup and view all the answers

    Name the best known standards in quality management.

    <p>ISO-9000</p> Signup and view all the answers

    The costs incurred when nonconforming products are reworked or scrapped are known as ______.

    <p>Correction Cost</p> Signup and view all the answers

    Match the following types of costs with their descriptions:

    <p>Prevention Cost = Costs related to actions aimed at preventing errors Assessment Cost = Costs incurred to recognize errors timely Correction Cost = Costs incurred for reworking or scrapping products</p> Signup and view all the answers

    Which of the following is included in assessment costs?

    <p>Final inspection of products</p> Signup and view all the answers

    Prevention costs only include costs related to employee training.

    <p>False</p> Signup and view all the answers

    Identify one activity that falls under prevention costs.

    <p>Conducting systematic product inspections</p> Signup and view all the answers

    What does Just-in-Time (JIT) management primarily aim to eliminate?

    <p>Hidden costs</p> Signup and view all the answers

    In Just-in-Time management, production activities can continue even when there are no customer orders.

    <p>False</p> Signup and view all the answers

    What is the major disadvantage of a supplier focusing on only one manufacturer in a Just-in-Time system?

    <p>It can become a threat to its continuity.</p> Signup and view all the answers

    JIT management implies that the production process is ____ by customer order.

    <p>pulled</p> Signup and view all the answers

    Match the following advantages and disadvantages of Just-in-Time management:

    <p>Supplier is regularly informed about quantities = Advantage Dependence on one manufacturer = Disadvantage Better planning for future production = Advantage Delayed delivery of zero defects = Disadvantage</p> Signup and view all the answers

    Study Notes

    Methods of Innovation in New Product Development

    • Open Innovation: Encourages collaboration with external parties to enhance research, development, and market introduction through shared business interests.
    • Closed Collaboration: Focuses on internal resources, with companies believing they possess the best knowledge for innovation.

    Role of Suppliers in New Product Development

    • Manufacturers generate more product and process innovations than suppliers but suppliers are crucial for innovation.
    • Example innovations from automotive suppliers include:
      • Fuel injectors (Bosch)
      • Sun protection and security glass (Saint Gobain)
      • Car seats (Lear)
      • Tyre pressure sensors (Michelin)
      • Airbags (Autoliv)
      • Retractable roofs (Inalfa)
    • Successful innovation requires closer involvement of suppliers, especially during initial product development stages.
    • Early supplier involvement can lead to reduced development lead-times, improved product quality, and faster market entry.

    Stages of New Product Development Process

    • Idea Generation: New product ideas arise from customer feedback and market trends noticed by sales teams.
    • Concept Study Stage: Ideas are transformed into a conceptual design focusing on functionality for the target market.
    • Definition Stage: Involves decisions about materials, manufacturing technology, and preliminary designs tested among potential customers.
    • Product Development: Focuses on creating and testing prototypes for durability, safety, and functionality across various conditions.
    • Pre-production Planning: Assesses production requirements and capacity based on market forecasts provided by marketing teams.
    • Pilot Production: Involves manufacturing pre-production series with thorough quality inspections for all parties.
    • Start of Regular Production: Begins once issues are resolved and involves initial product inspections.

    Early Supplier Involvement (ESI)

    • Invites proven "best-in-class" suppliers to participate early in development to provide design critiques and alternative solutions.

    Purchasing Engineering

    • Acts as a bridge between engineering and purchasing departments, integrating supply market knowledge into the design process for cost-targeted outcomes.

    Presidential Engineering

    • Co-locates supplier engineers within the manufacturing organization to collaboratively address design issues during development.

    Quality Management

    • Defined as meeting customer requirements and ensuring agreement on quality standards between suppliers and customers.
    • Involves quality assurance, maintaining and validating efficient quality management systems, internally assessed through audits and externally via verification.

    Cost Types in Quality Management

    • Prevention Cost: Expenses for quality error prevention actions, including inspections, training, and system development.
    • Assessment Cost: Costs associated with detecting errors early, ensuring goods meet quality standards.
    • Correction Cost: Expenses related to reworking or discarding nonconforming products.
    • Internal Error Cost: Costs from issues identified before product delivery, including corrective measures and production downtime.
    • External Error Cost: Costs resulting from post-delivery problems such as complaint handling, reputational damage, and processing returns.

    Just-in-Time (JIT) Logistics Management

    • JIT emphasizes material availability precisely when needed, reducing waste linked to storage and overproduction.
    • Requires electronic communication for better information flow between suppliers and manufacturers, aiding efficient production planning.
    • Advantages: Facilitates supplier planning and minimizes administrative overheads via electronic document handling.
    • Disadvantages: Supplier dependency on major manufacturers may threaten stability if focused on limited business streams.

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    Description

    This quiz explores the concept of open innovation, particularly within the automotive sector. It covers supplier involvement, innovation sourcing, and the dynamics between internal and external knowledge. Test your understanding of key concepts and real-world applications.

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