A forecast from LMC Automotive indicates that North American light vehicle demand will level off at 20 million units through 2020. This, coupled with the increased number of models being launched, creates a high-mix-low-volume scenario that could likely strain automaker profitability. From 2015 to 2018, the number of North American vehicle models in production will jump 18 percent from 243 to 287. 

For continued profitable growth, the automotive industry must address the rising cost of manufacturing. This fact drove HRI/OESA to delve further in analyzing the Automotive Tooling Barometer to uncover key issues that are adding unnecessary cost to vehicle design and development, and vehicle tooling, in particular. 

Automakers

The overall feedback from automakers is that tools are over-engineered, and Tier 1 suppliers and tool shops create overly complex tools. Specifically, this group said Tier 1 suppliers implement excessive design standards related to materials and tool requirements. 

Traditionally in the building of a mold or tool, automakers provide a set of requirements to the Tier 1 supplier, which coordinates with the tool shop to produce that mold or tool. In some instances, the suppliers and tool shops are adding to those requirements, making a tool increasingly more complex and costly. 

The survey also indicates that automakers believe there is a lack of transparency throughout the quoting, design and build process for molds. Oftentimes, the three parties - automakers; Tier suppliers; and mold, tool and die shops - do not communicate directly. This can result in critical information being miscommunicated or not communicated at all, which can impact how a tool is quoted. 

Tier 1 suppliers

The primary issue leading to increased costs, according to Tier 1 suppliers, is engineering changes made by the automaker late in tool development. Thirty-eight percent of these respondents also indicated that constraints on current tool shop capacity and lead-time requirements are adding expenses in the value chain. 

Tool shops

The biggest drivers of unnecessary costs, according to this group of respondents, are initial designs, and specs and tolerances. Specifically, they cite poor initial design, such as those that are incomplete or unapproved. Once a tool shop receives a design and begins to work on it, any changes to that design will add to not only development time but also overall costs. 

Additionally, these tool shops indicated that it also believes that tool specs and tolerances are too tight. It is critical that a mold or tool functions correctly in order to produce a quality part, but tool shops said Tier 1 suppliers and automakers often require fine machining and tight tolerances in areas of the tool that do not impact its functionality. 

The final issue highlighted by tool shops was lack of communication, the same assertion made by the automakers. Only 24 percent of all tool shops surveyed say they are frequently involved in conversations involving both Tier 1 suppliers and automakers. 

(According to Moldmakingtechnology.com)