Impact of electronic data interchange in the Australian automotive industry

Information technology continues to play an increasingly significant role in the development of firms competing in the vast array of markets from those classified as global markets, such as the automotive industry, to the smaller nationally-based markets such as retailing. An objective of electronic commerce is to assist organisations to remain competitive and gain entry to markets which were previously unattainable. This study focuses on the organisational impact of one form of electronic commerce (electronic data interchange) on the component sector of the Australian automotive industry and examines the extent to which trading partner relationships have been affected. The research investigates the extent to which the integration of electronic data interchange (EDI) with an organisation’s internal application system may facilitate specific net benefits. The automotive industry became the first Australian industry to cooperatively adopt EDI. Research to date has not adequately examined the organisational impact of the nature and extent of net benefits gained from EDI adoption. To achieve the objective of assessing EDI net benefits, a conceptual model was developed. The model proposed that the level of EDI net benefits expected is influenced by the size of the organisation and the concentration of trade achieved within the industry via intervening links through (a) the level of senior management commitment and (b) the extent of system integration. Nine empirically testable research propositions are derived from the model, each testing the relationship between model constructs. Data was collected from 114 component suppliers to Ford Australia in 1992 and 1994 using a repeated cross-sectional longitudinal design. Structural equation modelling using partial least squares was adopted in the analysis of the data. A pure longitudinal model together with 12 case studies of selected component manufacturers supplemented the research design. The results of the research showed that the proposed conceptual model is a good description of the data. In particular, net benefits obtained from EDI adoption are directly determined by the size of the organisation, and the extent to which firms integrate EDI into their internal application systems. The level of net benefits is only indirectly influenced by the level of senior management commitment to the EDI project through (a) management commitment’s direct effect on integration, and (b) the direct effect the volume of trade a supplier achieves with the automotive industry on senior management commitment and system integration. The major benefits organisations experienced from EDI were enhanced productivity, clerical staff savings, improved data accuracy, enhanced customer service and reduced administration costs. The research showed that few suppliers gained inventory savings from EDI, a frequently claimed benefit from EDI adoption. Evidence of small improvements in product quality emerged from the results. In summary, this research attempts to make two primary contributions to knowledge, first in providing a method by which net benefits from electronic commerce can be measured within an industry adopting electronic trading, and second, by providing organisations with the knowledge of the specific net benefits organisations could expect from EDI adoption, together with the four major factors affecting these benefits. The research concludes with possible directions for future research, in particular an assessment of the impact of incorporating financial EDI into electronic trading.

Estimating quality costs in an automotive stamping plant through the use of simulation

The pressures of modern manufacturing require that the quality-cost benefits are determined when evaluating new procedures or alternative operating policies. Traditionally, cost reports and other quality metrics have been used for this purpose. However, the interactions between the main quality cost drivers cannot be understood at the superficial level and the effect that a new process or an alternative operating policy may have on quality costs is difficult to determine. An alternative to the traditional costing methods is simulation. The current work uses simulation to evaluate quality costs in an automotive stamping plant where the quality control is determined by operator inspection of their own work. Self-inspection quality control provides instantaneous feedback of quality problems, allowing for quick rectification. However, the difficult nature of surface finish inspection of automotive panels can create inspection and control errors. A simulation model was developed to investigate the cost effects of inspection and control errors and it was found that inspection error had a significant effect in increasing total quality cost, with the magnitude of this increase dependent on the level of control. Further, the simulation found that the lowest cost quality control policy was that which allowed a number of defective panels to accumulate before resetting the press-line.

An investigation of industry-wide emarketplaces in the Australian automotive industry

Covisint, a global, industry-wide eMarketplace in the automotive industry, has received considerable literature attention since its inception some four years ago. Despite predictions that it would transform the industry, it has made little impact on automotive markets in countries where its progress has been documented. A lack of literature concerning Covisint use in Australia makes understanding the Australian situation quite difficult.
This study addresses this deficiency by investigating several Australian automotive organizations and their application of Covisint in conducting supply chain trading with their business partners. The research found that the application of Covisint is significantly less than its potential.

Automotive can network response time analysis with variable jitter

Many methods to calculate message latencies for Controller Area Network (CAN) have previously been presented based upon the static worst-case behaviour of the system. With the use of modern simulation tools however, the behaviour of CAN networks can be simulated dynamically in order to find the likely worst-case response times for CAN messages. This paper shows the development of an automotive body control network model to be used as the basis for further simulations. A method to simulate the Worst-Case Response Time of this model is then presented, taking into account random queuing jitter.

Robust video/ultrasonic fusion based estimation for automotive applications

We describe how object estimation by a stationary or a non-stationary camera can be improved using recently-developed robust estimation ideas. The robustness of vision-based systems can be improved significantly by employing a Robust Extended Kalman Filter (REKF). The system performance is also enhanced by increasing the spatial diveristy in measurements via employing additional cameras for video capture. We describe a normal-flow based image segmentation technique to identify the object for the application of our proposed state estimation technique. Our simulations demonstrate that dynamic system modelling coupled with the application of a REKF significantly improves the estimation system performance, especially when large uncertainties are present.

Robust video/ultrasonic fusion-based estimation for automotive applications

In this paper, we use recently developed robust estimation ideas to improve object tracking by a stationary or nonstationary camera. Large uncertainties are always present in vision-based systems, particularly, in relation to the estimation of the initial state as well as the measurement of object motion. The robustness of these systems can be significantly improved by employing a robust extended Kalman filter (REKF). The system performance can also be enhanced by increasing the spatial diversity in measurements via employing additional cameras for video capture. We compare the performances of various image segmentation techniques in moving-object localization and show that normal-flow-based segmentation yields comparable results to, but requires significantly less time than, optical-flow-based segmentation. We also demonstrate with simulations that dynamic system modeling coupled with the application of an REKF significantly improves the estimation system performance, particularly, when subjected to large uncertainties.

In search of a future strategy for market research services : clients' views on market research suppliers

The market research environment is transforming rapidly and research suppliers may not be keeping up with changing research client needs. This paper examines research client perceptions of current research supplier performance and future competencies. The key findings are that research suppliers need to move their staffing profiles beyond technical expertise in conducting research (generating outputs) to functional expertise in understanding research outcomes within internal and external organizational contexts. The transition from data collector to expert advisor may involve anew business model and new pricing strategies based on intellectual expertise rather than margins on data collection services.

Computer aided ultrasonic thickness strain analysis of automotive sheet metal stampings using FEA information

This paper discusses a computer-aided methodology for thickness strain analysis (TSA) of sheet metal stampings using geometry and strain information that is extracted from finite element analysis (FEA) results. The system utilises both FEA results and an ultrasonic gauge capability expert system to assist press shop personnel, providing them with capabilities such as optimum measurement point location and an estimate of gauge error. Key advantages of this enhanced TSA methodology are related to overall efficiency and accuracy gains.