Understanding the background of automotive electronics and the difference to consumer electronics in terms of history and industry culture.

1. APQP and Control Plan Seminar
11th July 2010
By Michael Wang
Rev.C

2. Contents
• Prologue
• Welcome you here
• History makes the difference
• What is APQP?
• Ok! Let’s start PPAP
• Control plan methodology
• Control the Many through the Few
• Q&A

3. Prologue
It was the best of times, it was the worst of times,
it was the age of wisdom, it was the age of foolishness,
it was the epoch of belief, it was the epoch of incredulity,
it was the season of Light, it was the season of Darkness,
it was the spring of hope, it was the winter of despair,
we had everything before us, we had nothing before us,
we were all going direct to Heaven, we were all going direct
the other way--in short, the period was so far like the
present period
From Charles Dickens’ “A Tale of Two Cities”.

4. Welcome you here
• Welcome to the world of automotive
electronics!
• Is it part of Auto industry? Or is it part of
Electronics industry?

5. Auto electronics 2008

6. Auto electronics 2008
Source: Automotive News

7. Automotive world today
Source: Carmagzine

8. Automotive world today
Source: Carmagzine

9. GM Century of Innovation
2008
Source: SAE Automotive Journal

10. A giant falls at 2009
Source: The Economist

11. Anyone who in business in
2012 will get business
Source: Newsweek

12. 趨勢圖示：車用電子市場年複
合成長率穩健攀升 2013年可
望上看1,737億美元
隨著市場上越來越多強調安全、舒適的
智慧型車輛紛紛上市，帶動了車用電子
市場的商機，對於汽車的自動化的需求
增加，車用電子市場呈現穩健成長之
勢，預估在 2008年將達1,145億美元，
2008~2013年將以年複合成長率(CAGR)
為9%的速度增長，到了2013年可望上
看1,737億美元，此外， 有鑑於市場對
於車內駕駛座的輔助、聽音樂或看視
訊、安全氣囊等的功能要求愈來愈高，
預期駕駛輔助系統、娛樂、安全系統性
領域所佔比重也將增加。(陳怡均)
Source: Digitimes

13. 到底有多難？難在什麼地方？
到底有多難？難在什麼地方？
Source: The Commonwealth

14. Process! Process! Process!
如果選擇店面的前三大考量是”Location, Location,
• 如果選擇店面的前三大考量是
那麼”Process, Process, Process”就
Location”, 那麼 就
是進入汽車電子的”葵花寶典 為什麼叫葵花寶典
葵花寶典” 為什麼叫葵花寶典?)！
是進入汽車電子的 葵花寶典 (為什麼叫葵花寶典 ！
什麼是Process?
• 什麼是
如何管理？
• Process 如何管理？
• Variation
• Stability vs. Capability

15. History makes the
difference!
• Henry Ford built his first auto in “production line” in
1903.
• Raw material arrived at the pier by Rouge river and
car running outside at another end.
• Highly integrated at the first beginning and “Big
Three” giants dominated Auto’s world in Detroit.
• American were proud of auto industry and auto’s
world was deeply influenced by the States for 70
years.

16. History makes the
difference!
• Two silent changes impacted auto industry in 70s.
• One is Honda/Toyota’s transplant during oil crisis.
• Toyota learned JIT in American supermarket and
created “lean” concept to beat Ford’s mass
production style which generated from economic
scale model.
• Edward W. Deming’s 14 principles supported
Japanese car quality and since then, “Quality”
haunted in every auto people’s mind.
• Ford ex-CEO Peterson invited Deming back to Ford
and created glorious era in late 80’s and early 90’s.
• Supplier partnership from “Keiretsu” was highlighted
and purchasing organization formed by Buyer and
STA (SQA/SQE, anyway) was conventionally
established in this industry.

17. History makes the
difference!
• Another giant industry creeping quietly into this
world- PC assembly industry (then EMS later on) by
the alliance of Intel 80X86/IBM PC/Microsoft DOS.
• In this different world, “Speed is everything!” being
genetic from “Moore’s law”.
• The supplier chain was formed crossly like ad hoc
task force, the partnership builds on price-quantity
bargaining.
• “The volume matters”, so Dell’s “Global Logistics”,
“BTO/BTC” worked in late 90 and early Millenniums.

18. Terry Kuo’s judgment
無神論
• Just like the religions, one is atheist (無神論
者), then Buddist or Christian doesn’t matter
as long as you heartily believe it.
• Ended by EMC tycoon Terry Kuo’s (郭台 郭台
銘)famous educational story within Foxconn,
“In electronic industry, we don’t have brand.
What we sell? We sell Speed, Quality,
Engineering Service, Flexibility, and Cost”.
(It’s a true story because several managers
used to be punished by standing attention
because they gave the “wrong order” of
these 5 competitiveness)