Presented to Rady student body as part of Students Teach Students on 10/19/11.

1. Automobile Development
October 19, 2011
Eric Norman
MBA 2012

2. Why don’t cars look like the beautiful car show
models?
Source: Toyota Europe (YouTube)

3. Historical Context
Mass Mass
Hand crafted
Produced customization
Image source: Toyota.com, Ford

4. …Modern variations can be in the millions
Variations offered on Ford Fusion:
Image source: MANAGING COMPLEXITY IN AUTOMOTIVE PRODUCTION

5. …and they must be made thousands of times per
month
Product Stanley HP DeskJet VW (new) Boeing 777
screwdriver Beetle
Annual 15,000 4 million 100,000 50
Production
volume
Sales lifetime 40 years 2 years 6 years 30 years
Sales price $6 $130 $20,000 $200 million
Parts 3 parts 200 parts 10,000 parts 130,000 parts
Team size 6 people 175 people 1,600 people 16,800 people
Development 1 year 1.5 years 3.5 years 4.5 years
time
Total cost $300,000 $75 million $900 million $6 billion
Source: Ulrich, Eppinger Product Design and Development

6. If you want one beautiful car, have a craftsman make
everything by hand
• http://youtu.be/La73Oy9ZGVw?t=2m8s
Source: CT Heritage

7. Ferrari makes more profit than Fiat does in revenue
(per vehicle)
Profit margin
Company Units Sold Rev (M Eur) Proft (M Eur)
(%)
Fiat 2,081,800 27,860 515 2%
Ferrari 6,573 1,919 302 16%
Per Vehicle:
Company Rev Profit
Fiat 13,383 247
Ferrari 291,952 45,946
Source: Fiat Group 2010 Annual Report

8. But if you want high quality at a fair price, design by
satisfying constraints quickly
Design
Sales Engineering
Production

9. First develop the car that you want (engineering
prototype)
youtube

10. Then prepare to build it thousands of times (mass
production)
youtube

11. Advanced version: do both simultaneously and iterate
（目的）
N-36 (month) N-24 (month) N-12 (month)
Engineering N
simultaneously
CE （ＣＥ構想）Development Styling - Design
Concept Proposal （開発提案） Approval （デザイン審査） - Production Engineering
▽ ▽ ▽ - Production (Plant)
Prototype Drawing （試作図面） - Supplier
Prototype Production （試作）
Vehicle SE
Development Prototype Evaluation （試作評価）
（車両開発） Regular Drawing （正式図）
Tooling & Equipment making
Production （型・設備製作）
Preparation
（生産準備）
Production Trial （号口試作）
Source: Toyota presentation 2004

12. An example of iterative flow in the Design Process
Paper Digital 3D Clay model
Design:
Sketches Drawings Rendering (full size)
3D
Engineering: CAD Doughboy
Drawings
Image source: Ford.com

13. When designers make the show car, they may not be
satisfying constraints for manufacturing and durability
Image source: Bloomberg

14. The ultimate goal is customer satisfaction (leads to
sustainable profits)
Image source: lexusenthusiast.com, carinsurance.org

15. KEY CONCEPTS

16. Clay models are used for design human ability to “feel
proper design”
Image source: BMW

17. Mules are a quick/cheap way to test ideas

18. Weld and paint quality checks are done by humans do
to incredible sensitivity of human hand
• http://youtu.be/rg1IPXiRva0?hd=1&t=3m57s

19. Simulations speed up design process…
Image source: Autoworld.com

20. … but live testing is required for confirmation
Image source: google image search

21. Previous evaluation ⑤ Re-try
① Put paint on inside of outer panel ② Set inner panel to outer panel
Repair → Re-design
③ Fitting confirmation ④ Modify part & re-design
by checking paint stuck porti on
Source: Toyota presentation 2004

22. Latest evaluation
＋
－
Inner panel
－ ＋
Outer panel
Digital Assembly
Interference
Source: Toyota presentation 2004

23. Buy a new car 6-12 months after a major/minor model
change
Major Major
6 years 6 years
Minor Minor
3 years 3 years
Annual Annual Annual Annual Annual Annual Annual Annual
1 year 1 year 1 year 1 year 1 year 1 year 1 year 1 year
• Minor problems sometimes cannot be addressed until the
next fix cycle
• Long-term testing takes time to complete
Camry life cycles (link)

24. Final cosmetic touches

25. Platform/Underbody is the heart of a car
• Like Windows 7
• Shared among vehices
• Defines major driving characteristics
• Engineering typically done at HQ
• See also:
http://en.wikipedia.org/wiki/List_of_Toyota_p
latforms
Camry platform (link)

26. APPENDIX

27. • http://www.youtube.com/watch?v=lolnxhYPEJc (Ford Escape
Mule on road)
• http://www.youtube.com/watch?v=KHtQDZOQJV0 (FT 86
pretty body)
• http://youtu.be/3SYJjE7Xrf4 (FT86 track test)
• http://www.youtube.com/watch?v=rg1IPXiRva0 (Kaikain
factory process)
• http://youtu.be/QXOguvLi9Fo?t=49s (Ontario factory)
• http://www.youtube.com/watch?v=La73Oy9ZGVw&feature=rel
ated (Ferrari hand made)
• http://youtu.be/1rA9qOdyEYs?t=3m59s (IS wood)
• http://youtu.be/hWjSOe55zPQ (RORO)
• http://youtu.be/zw-6gNd-bz4 (RORO 2)
• http://youtu.be/Mp8Y2yjV4fU (sudoku mind)

28. US PPI

29. Hand craftsmanship can have high variability
In January 1801 he went to Washington where
he made an unforgettable demonstration
before government officials. He spread out on
a table many parts of gunlocks, then randomly
picked up pieces to assemble a lock. He then
disassembled it and invited his astonished
observers to emulate him. In 1812 he was
awarded a contract to manufacture 15,000
muskets
Source: CT Heritage