Enhancement of an implemented rating model and impact on existing risk management processes: A hands-on approach from financial supplier risk management within the automotive industry

The purpose of this paper is to conduct a methodical drawback analysis of a financial supplier risk management approach which is currently implemented in the automotive industry. Based on identified methodical flaws, the risk assessment model is further developed by introducing a malus system which incorporates hidden risks into the model and by revising the derivation of the most central risk measure in the current model. Both methodical changes lead to significant enhancements in terms of risk assessment accuracy, supplier identification and workload efficiency.

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.

Sheet forming simulation for AHSS components in the automotive industry

The trend in the automotive industry towards new advanced high strength steels (AHSS), combined with the ongoing reduction in program lead times have increased the need to get tool designs right, first time. Despite the fact that the technology used by sheet metal stamping companies to design and manufacture tooling is advancing steadily, finding optimal process parameters and tool geometries remains a challenge. Consequently, there has been a transition from designs based largely on trial and error techniques and the experience of the stamping engineer, to the increased use of virtual manufacturing and finite element (FE) simulation predictions as an indispensable tool in the design process. This work investigates the accuracy of FE techniques in predicting the forming behavior of AHSS grades, such as TRIP and dual phase, as compared to more commonly used conventional steel grades. Three different methods of simulation, one-step, implicit and explicit techniques, were used to model the forming process for an automotive part. Results were correlated with experimental strain and thickness measurements of manufactured components from the production line.

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.

Effect of bake-hardening on the structure-property relationship of multiphase steels for the automotive industry

The effect of a bake-hardening (BH) treatment on the microstructure and mechanical properties has been studied in C-Mn-Si TRansformation Induced Plasticity (TRIP) and Dual Phase (DP) steels after: (i) thermomechanical processing (TMP) and (ii) intercritical annealing (IA). The steels were characterized using X-ray diffraction, transmission electron microscopy (TEM) and three-dimensional atom probe tomography (APT). All steels showed high BH response. however, the DP and trip steels after IA/BH showed the appearance of upper and lower yield points, while the stress-strain behavior of the trip steel after TMP/BH was still continuous. This was due to the higher volume fraction of bainite and more stable retained austenite in the TMP/BH steel, the formation of plastic deformation zones with high dislocation density around the "as-quenched” martensite and “TRIP” martensite in the IA/BH DP steel and IA/BH TRIP steel, respectively.

Biodegradation of Coir and Sisal Applied in the Automotive Industry

This paper discusses the results of biodegradability tests of natural fibers used by the automotive industry, namely: coir, coir with latex, and sisal. The biodegradation of coir, coir with latex, and of sisal fibers was determined by monitoring the production of carbon dioxide (CO(2)) (IBAMA-E.1.1.2, 1988) and fungal growth (DIN 53739, 1984). The contents of total extractives, lignin, holocellulose, ashes, carbon, nitrogen and hydrogen of the fibers under study were determined in order to ascertain their actual content and to understand the results of the biodegradation tests. The production of CO(2) indicated low biodegradation, i.e., about 10% in mass, for all the materials after 45 days of testing; in other words, no material inhibited glucose degradation. However, the percentage of sisal fiber degradation was fourfold higher than that of coir with latex in the same period of aging. The fungal growth test showed a higher growth rate on sisal fibers, followed by coir without latex. In the case of coir with latex, we believe the fungal growth was not intense, because natural latex produces a bactericide or fungicide for its preservation during bleeding [1]. An evaluation of the materials after 90 days of aging tests revealed breaking of the fibers, particularly sisal and coir without latex, indicating fungal attack and biodegradation processes.