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The Supply Chain of the Audi A8 V8 4.0l Diesel Engine — A Case Study of Audi AG

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Keywords

Supply Chain Diesel Engine Critical Path Inventory Level Water Pump 
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References

  1. 54.
    By agreement between Audi and VW, a proportion of the profit is to be transferred to VW (AUDI AG, 2003d).Google Scholar
  2. 56.
    CKD stands for “completely knocked down”. It means that a car is sent in individual parts or in modules to its country of destination where it is then assembled (AUDI AG, 2003f).Google Scholar
  3. 63.
    There is only one exception to the statement that there is a one-to-one relationship: TCG Systemtechnik not only delivers water pumps to Audi Hungaria, but also to VW in Kassel (the central spare part warehouse of the VW Group). However, VW in Kassel has not been included in the critical path by the responsible people and, therefore, it is not considered in this dissertation. It seems that VW in Kassel is not a critical member of this chain because the amounts shipped to Kassel were very little compared to the ones shipped to Audi Hungaria (see Gisela Kastner, July 07, 2003).Google Scholar
  4. 65.
    The structure of a supply call-off is often standardized according to VDA 4905, and the structure of a precise supply call-off is often standardized according to VDA 4915 (VDA, n.d.). Both are standards defined by the Verband der Automobilindustrie. Audi uses both standards (VW Group Supply.com, 2003a). Two exemplary supply call-offs are shown in Figure 6 and Figure 7 in Appendix A.6.Google Scholar
  5. 68.
    If expedited shipping is necessary, the party which caused the problem has to pay (Jörg Binick, personal communication, July 07, 2003).Google Scholar
  6. 71.
    Binick (personal communication, July 07, 2003) claims that Audi Neckarsulm pursues a (s,S)-inventory policy; however, this seems to be a mistake because Audi Neckarsulm orders weekly, i.e. in fixed intervals by supply call-off which is sent to Audi Hungaria.Google Scholar
  7. 72.
    GEKO stands for “Ganzheitliche Ertragsorientierte Kettenoptimierung” and is one of several SCM projects that Audi currently pursues. The project is divided into two parts: One part includes product and value analyses and, thus, focuses on purchasing issues. The other part deals primarily with logistics, more precisely with SCMo (Scheidler, 2003b).Google Scholar
  8. 73.
    The turbo charger bottleneck has been resolved by now. Nonetheless, maximum production has not been increased to the originally planned 250 units of V8 4.0l diesel engines because there was not enough demand. It is even debated to reduce the maximum weekly production to 100 instead of 150 pieces (Katalin Szorady, personal communication, July 16, 2003).Google Scholar
  9. 74.
    This number has been calculated based on data received from Wahler (Markus Bedic, personal communication, July 17, 2003). All figures were added up and divided by the total number of figures available (see Table 5, Appendix A.7).Google Scholar
  10. 75.
    Wahler has a maximum production capacity of fifty thermostats per day, i.e. 250 per week (ICON, 2003d).Google Scholar
  11. 77.
    According to Andreas Heim, personal communication, July 10, 2003.Google Scholar
  12. 78.
    This number was calculated based on data received from TCG Systemtechnik (Kastner, personal communication, July 07, 2003). All figures were added up and divided by the total number of figures available (see Table 5, Appendix A.7).Google Scholar
  13. 80.
    Only if Audi Hungaria decreases its demand by more than 15 percent, it is obliged to take the water pumps even though it does not need them in that moment (Katalin Szorady, personal communication, July 16, 2003).Google Scholar
  14. 81.
    This number has been calculated based on data received from TCG Systemtechnik (Kastner, personal communication, July 07, 2003). All figures were added up and divided by the total number of figures available (see Table 5, Appendix A.7).Google Scholar
  15. 84.
    BETA93 is an IT-system for archiving data (Hinsenkamp, 2002a). In this case, the data extracted from BETA93 was originally from a system called “Materialfluss-Bewegungsverarbeitungs-und Bestandsführungs-System” (MABES), which is an inventory management system (Hinsenkamp, 2002b).Google Scholar
  16. 88.
    Note: The interest rate of nine percent is the one which Audi Neckarsulm uses. The other companies might use different rates, for example, Wahler uses five percent (Markus Bedic, personal communication, July 30, 2003). However, when calculating the cost of capital tied up in inventory, the same rate was used for all companies to ensure comparability.Google Scholar
  17. 89.
    This data originally came from a system called “Lieferabrufverteilungs-und Feinsteuerungssystem (LAFES), whose purpose it is to create and update supply call-offs (Hinsenkamp, 2003c).Google Scholar
  18. 90.
    Wahler also provided information on the quantities it delivered to TCG Systemtechnik (Markus Bedic, personal communication, July 17, 2003). The amount that Wahler claims to have delivered between March and June of 2003 is smaller than the amount that TCG Systemtechnik claims to have received in the same period of time: Wahler says it delivered 3,819 thermostats (Markus Bedic, personal communication, July 17, 2003), and TCG Systemtechnik says it received 3,934 water pumps (Gisela Kastner, personal communication, July 07, 2003). Although this difference ought to be explained, this point has not been investigated any further.Google Scholar
  19. 92.
    BESI2 is a system for determining future gross demand of parts based on the planned production of cars. In BESI2, gross demand is computed on a weekly basis (Hinsenkamp, 2002a).Google Scholar
  20. 97.
    In Table 19, only the OEM, tier 1, and tier 2 are included. Tier 3 (Wahler) is not considered because Wahler’s orders to its suppliers were not included in the examination study.Google Scholar
  21. 105.
    For a more detailed description of the Repeated Prisoner’s Dilemma and of the line of argumentation of the subsequent paragraphs, see Appendix A.2. The Prisoner’s Dilemma is discussed within the game theory and is a “theory of rational behavior for interaction decision problems. In a game, several agents strive to maximize their (expected) utility index by choosing particular courses of action, and each agent’s final utility payoffs depend on the profile of courses of action chosen by all agents. The interactive situation, specified by the set of participants, the possible courses of action of each agent, and the set of all possible utility payoffs, is called a game; the agents ‘playing’ a game are called players” (Sela & Vleugels, 1997). The Prisoner’s Dilemma is a game that deals with “the interaction and learning processes in populations of boundedly-rational agents” (Hoffman, 2001, p. 101).Google Scholar

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© Deutscher Universitäts-Verlag ∣ GWV Fachverlage GmbH, Wiesbaden 2006

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