Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News Mexico
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
  • News
    • Photos
    • Automakers
    • Suppliers
    • Sales By Market
    • Environment/Emissions
    • Latest Launches
    • Sales and Retail
    • Car Cutaways
    • On The Move
    • EU, Japan back automatic braking regulation
      German auto jobs at risk from hard Brexit
      Aston Martin to preview SUV for revived Lagonda nameplate at Geneva show
      How VW, Daimler, BMW, others are transforming into tech companies
    • Sweden's Veoneer forecasts flat sales in 2019
      Ionity boss has plan for stations across Europe; he just needs an EV boom
      Moscow's short-term car rental boom highlights threat to automakers from new players
      German auto jobs at risk from hard Brexit
    • Porsche, Alfa Romeo and Nissan take big hits as European sales fall 5% in January
      Russia sales rise nearly 1% in January despite VAT increase
      Audi, Fiat, BMW among losers as Spanish sales fall 8% in January
      Volvo, VW gain sales in UK market down nearly 2% in January as diesel plunge continues
    • Volvo blurs the wagon/SUV line with the V60 Cross Country
      view gallery
      7 photos
      New Range Rover Evoque designed for the 'urban jungle'
      Range Rover Evoque gets hybrid tech to cut emissions
      Tarraco gives Seat a flagship SUV to help retain wealthy buyers
    • Ferrari will unveil V-8 hybrid supercar this year
      Mercedes outsold Audi in China last month on sedan demand
      Tesla's Musk visits Norway to review delivery delays
      Europe's minicar segment to shrink as VW, PSA mull axing their smallest cars
    • Suppliers to the new Porsche Panamera
      Suppliers to the new Peugeot 5008
      Suppliers to the new Seat Ibiza
      Suppliers to the new VW Touareg
    • Daimler appoints Airbus exec as finance chief
      VW China CEO to join VW brand's management board
      Mini USA names marketing veteran McKenna head of product planning
      Dyson hires former Infiniti chief to head its electric-car business
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Auto Shows
    • Geneva Auto Show
    • Frankfurt Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
    • China EV startup Aiways will launch SUV in Europe
      Bentley revs up Bentayga with Speed variant
      Skoda will debut first EV at Geneva show
      VW Passat gets cleaner diesel, partial autonomy
    • Bugatti considers four-door model for 2024
      Frankfurt photo booth
      Frankfurt's best and wurst
      Merkel says German car industry must work to rebuild trust
    • Vietnam's first automaker now has names for first sedan, SUV
      Ferrari Monza supercars will earn $755 million in revenue
      China's GAC likely to debut in Europe with an EV
      Bugatti mulls SUV as part of broader model range
    • VW will launch SOL EV brand in China with subcompact crossover
      view gallery
      9 photos
      BMW's iX3 concept heralds electric expansion
      view gallery
      9 photos
      BMW will export iX3 electric SUV to Europe, U.S. from China
      view gallery
      11 photos
      Mercedes seeks to keep China luxury lead with stretched A class
    • view gallery
      7 photos
      Jeep finds green groove with plug-in hybrid SUV concept
      China's luxury market to grow to 3M a year, Audi, Mercedes predict
      view gallery
      10 photos
      Mercedes hints at new styling with sedan concept
      Foreign automakers embrace China as EV development hub
  • Opinion
    • Blogs
    • Luca Ciferri
    • Douglas A. Bolduc
    • Paul McVeigh
    • Ford's 'redesign' for Europe emphasizes SUVs, LCVs
      Russia's Google, Yandex, impresses with its self-driving tech
      Renault Twizy gets new life in Korea as motorcycle replacement
      Why the car is no longer the ticket to freedom
    • Ford's 'redesign' for Europe emphasizes SUVs, LCVs
      Russia's Google, Yandex, impresses with its self-driving tech
      Renault Twizy gets new life in Korea as motorcycle replacement
      Why the car is no longer the ticket to freedom
    • Ford's 'redesign' for Europe emphasizes SUVs, LCVs
      Russia's Google, Yandex, impresses with its self-driving tech
      Renault Twizy gets new life in Korea as motorcycle replacement
      Why the car is no longer the ticket to freedom
    • Ford's 'redesign' for Europe emphasizes SUVs, LCVs
      Russia's Google, Yandex, impresses with its self-driving tech
      Renault Twizy gets new life in Korea as motorcycle replacement
      Why the car is no longer the ticket to freedom
  • Maps
    • E-Car & Component Map of Europe
    • Powertrain Map of Europe
    • Assembly Plant Map of Europe
  • Supplements
    • Connected Car
    • Talk From The Top
    • BMW 100
    • Car Cutaways
  • EVENTS & AWARDS
    • Automotive News Europe Congress
    • Rising Stars
    • Eurostars
    • Leading Women
  • E-MAGAZINE
    • Read the latest issue
    • Download the app
    • Subscribe
  • More
    • E-Magazine
    • Contact Us
    • 2019 Media Kit
    • About Us
MENU
Breadcrumb
  1. Home
  2. Automotive News Europe
June 22, 1998 01:00 AM

MERCEDES VP'S ADVICE: YOU MUST GO MODULAR

  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    THE MERCEDES-BENZ US International plant in Vance, Alabama, is one of the world's leading practitioners of modular auto assembly.

    Mercedes uses 65 suppliers for the operation. Fewer than 20 deliver most of the vehicle's content. Delphi Automotive delivers a cockpit assembled from 35 sub-suppliers.

    Bob Birch, vice president of purchasing and logistics, spoke with Lindsay Chappell of Automotive News Europe, prior to the announcement that Daimler-Benz would merge with Chrysler.

    The Alabama factory is on the leading edge of using fewer suppliers and modular assembly. Can you offer any advice to others considering this approach?

    The modular system has really worked well for us. It's not a new idea. Most manufacturers now receive their seats as a complete module, delivered in sequence with production. All we really did was expand on that by doing most of the car in modules.

    It turned out to work extremely well for us with very few problems. Occasionally something might go wrong, and instead of broadcasting over the computer network to our suppliers, we'll resort to faxes. We get creative and we get by, and it's invisible to the plant.

    So you would recommend it?

    To be competitive, yes, the industry is going to have to go modular and deliver in sequence. It reduces your inventory dramatically. The capital investment is less because you can build the plant smaller.

    That's going to be the trend in the future: smaller assembly plants that don't need big warehouses. If you continue to build plants full of warehouses and material, you're going to have a hard time competing.

    How much of the vehicle is delivered in sequence?

    It's a large percentage of the vehicle: the cockpit, the headlights, headliners and seats. We will have 18 sequential suppliers this year.

    We're phasing in a few new ones, like the bumpers from Rehau. Until now, the bumpers were all the same color. Axles are starting to come in sequence. Before now, we only had one axle. But with the new V-8 engine, we have a second axle with different brakes. There will be other variations.

    It's important to start up the broadcast and in-sequence delivery before you take on a lot of part variations. It gives the suppliers some practice before you start using multiple parts.

    Does it also requires a closer working relationship with suppliers?

    When it comes to the in-sequence delivery, we have to deal more frequently with them on a day-to-day basis. They have to know what we're doing. We can't just decide on our own to work an hour's overtime, for example.

    We've got 18 suppliers out there moving in lockstep with us. If we work an hour's overtime, they have to be able to do the same. So it requires a lot of communication.

    You're working a fair amount of overtime now, aren't you?

    We run 10 hours a day, five days a week. No Saturdays. Our employees preferred not to work weekends.

    We hit the 270-vehicle-a-day mark that our original plan called for, and now we've moved on to 300 a day. We're expanding and adding people. But for now, we're doing it through overtime.

    How secure are your suppliers? Can you look for better deals?

    We have eight-year contracts with our suppliers, and that pretty much ties our hands against shopping around. If we have a problem on quality or cost, our contract allows us to look for other suppliers. But we haven't done that in any case.

    You've said in the past that you want Tier 1 companies to manage Tier 2 supplier issues. Are you there yet?

    We've made a lot of progress in that direction over the past year, especially in the area of quality.

    Just about every (Tier 1) supplier we have is now responsible for the quality of its own suppliers. Some of the smaller ones aren't as well staffed yet, and they've asked for a little assistance. Delphi, our cockpit supplier, has completely taken over on its Tier 2 quality issues.

    With the exception of a few parts, the Tier 1 modular suppliers are already selecting their own subcomponents. In the case of the Delphi cockpit, we kept a hand in choosing the audio system and the heating and air conditioning system.

    How tight is the schedule for your in-sequence suppliers?

    When we begin production, the supplier has 169 minutes to deliver its part to the line. We broadcast the order to the supplier when the vehicle comes out of the paint plant. The vehicles go into what we call our 'selectivity bank,' where we can choose from several vehicles. So if there's a breakdown in the paint plant, it can have a very dramatic effect on the schedule.

    In some cases, we've had to send messages to change a delivery. We're continually talking back and forth. Some of this was pretty new for the industry, and we didn't have the answers. We found the solutions just by working together with the suppliers.

    All of your North American suppliers have the ISO-9000 quality assurance certification. What's the next step for them?

    There is a German system, similar to the ISO system, called VDA 6.1. Our question is whether to also require VDA certification.

    Monthly E-Magazine
    Thumbnail
    View latest issue
    See our archive
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Automotive News Europe Monthly E-Magazine

    Sign up to receive your free link to each monthly issue of Automotive News Europe as soon as it's published.

    GET THE E-MAGAZINE
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584


    Email Us

    Resources
    • About us
    • Contact Us
    • 2019 Media Kit
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    Copyright © 1996-2019. Crain Communications, Inc. All Rights Reserved.
    • HOME
    • News
      • Photos
        • Geneva Photo Gallery
        • Beijing Photo Gallery
        • Frankfurt Photo Gallery
        • Paris Photo Gallery
        • Shanghai Photo Gallery
      • Automakers
      • Suppliers
      • Sales By Market
      • Environment/Emissions
      • Latest Launches
      • Sales and Retail
      • Car Cutaways
      • On The Move
    • Auto Shows
      • Geneva Auto Show
      • Frankfurt Auto Show
      • Paris Auto Show
      • Beijing Auto Show
      • Shanghai Auto Show
    • Opinion
      • Blogs
      • Luca Ciferri
      • Douglas A. Bolduc
      • Paul McVeigh
    • Maps
      • E-Car & Component Map of Europe
      • Powertrain Map of Europe
      • Assembly Plant Map of Europe
    • Supplements
      • Connected Car
      • Talk From The Top
      • BMW 100
      • Car Cutaways
    • EVENTS & AWARDS
      • Automotive News Europe Congress
      • Rising Stars
      • Eurostars
      • Leading Women
    • E-MAGAZINE
      • Read the latest issue
      • Download the app
      • Subscribe
    • More
      • E-Magazine
      • Contact Us
      • 2019 Media Kit
      • About Us