Open Innovation in Automotive Industry

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.

development Signup and view all the answers

Match the following innovations with their respective suppliers:

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

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

All of the above Signup and view all the answers

Technological collaboration always leads to successful exchanges between partners.

False Signup and view all the answers

What is defined during the Definition Stage of product development?

Materials to use and physical requirements for manufacturing. Signup and view all the answers

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

design Signup and view all the answers

Match the following stages of product development with their descriptions:

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 Signup and view all the answers

What is the primary role of a purchasing engineer?

To evaluate designs against purchasing-specific criteria Signup and view all the answers

Presidential engineering involves placing supplier engineers permanently within the organization.

True Signup and view all the answers

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

Quality Signup and view all the answers

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

met Signup and view all the answers

Match the terms with their definitions:

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 Signup and view all the answers

What is the main focus of the product development phase?

Translating product design into prototypes Signup and view all the answers

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

False Signup and view all the answers

What is the purpose of pilot production?

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

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

materials Signup and view all the answers

Match the following phases with their correct descriptions:

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 Signup and view all the answers

What are internal error costs primarily associated with?

Mistakes identified before product delivery Signup and view all the answers

External error costs include reputation loss.

True Signup and view all the answers

Name one cost included in internal error costs.

Cost of corrective measures. Signup and view all the answers

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

external Signup and view all the answers

Match the following costs with their categories:

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 Signup and view all the answers

What is the purpose of quality assurance?

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

External assessments are also referred to as auditing.

False Signup and view all the answers

Name the best known standards in quality management.

ISO-9000 Signup and view all the answers

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

Correction Cost Signup and view all the answers

Match the following types of costs with their descriptions:

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 Signup and view all the answers

Which of the following is included in assessment costs?

Final inspection of products Signup and view all the answers

Prevention costs only include costs related to employee training.

False Signup and view all the answers

Identify one activity that falls under prevention costs.

Conducting systematic product inspections Signup and view all the answers

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

Hidden costs Signup and view all the answers

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

False 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?

It can become a threat to its continuity. Signup and view all the answers

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

pulled Signup and view all the answers

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

Supplier is regularly informed about quantities = Advantage Dependence on one manufacturer = Disadvantage Better planning for future production = Advantage Delayed delivery of zero defects = Disadvantage 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.

Open Innovation in Automotive Industry

Questions and Answers

What is the primary goal of open innovation?

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

Name one innovation from a supplier in the automotive industry.

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

Match the following innovations with their respective suppliers:

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

Technological collaboration always leads to successful exchanges between partners.

What is defined during the Definition Stage of product development?

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

Match the following stages of product development with their descriptions:

What is the primary role of a purchasing engineer?

Presidential engineering involves placing supplier engineers permanently within the organization.

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

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

Match the terms with their definitions:

What is the main focus of the product development phase?

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

What is the purpose of pilot production?

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

Match the following phases with their correct descriptions:

What are internal error costs primarily associated with?

External error costs include reputation loss.

Name one cost included in internal error costs.

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

Match the following costs with their categories:

What is the purpose of quality assurance?

External assessments are also referred to as auditing.

Name the best known standards in quality management.

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

Match the following types of costs with their descriptions:

Which of the following is included in assessment costs?

Prevention costs only include costs related to employee training.

Identify one activity that falls under prevention costs.

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

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

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

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

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

Study Notes

Methods of Innovation in New Product Development

Role of Suppliers in New Product Development

Stages of New Product Development Process

Early Supplier Involvement (ESI)

Purchasing Engineering

Presidential Engineering

Quality Management

Cost Types in Quality Management

Just-in-Time (JIT) Logistics Management

Studying That Suits You

Description

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