Search Results

Shortening the supply chain is a universal business goal in the global automotive industry. A shorter supply chain is generally recognized to be leaner, more agile, more “accountable,” and, most importantly, less expensive. However, the real economic value of a shorter supply chain has rarely been critically measured. In this paper, a case study involving molded composite parts is presented, and the value of removing a “link” from the supply chain is assessed. Traditionally, a separate compounder and molder are involved in producing molded composite parts. The compounder combines the ingredients-resin, reinforcements, additives-and produces a pellet or a sheet of material that is sold to the molder who, in turn, molds this material into a part. Today, an alternative is emerging. This alternative involves in-line compounding and molding, combining two “links” in the supply chain into a single “link.”

In order to determine the best way to evaluate materials selection from an economic standpoint, a discussion of conventional cost estimation is given versus a more precise technique, Technical Cost Modeling. Automotive body panels are used as an application for the costing techniques; conclusions about fabrication costs and parts consolidation are drawn with regard to these parts.