Search Results

Cost reduction in the automotive industry becomes a widely-adopted operational strategy not only for Original Equipment Manufacturers (OEMs) that take cost leader generic corporation strategy, but also for many OEMs that take differentiation generic corporation strategy. Since differentiation generic strategy requires an organization to provide a product or service above the industry average level, a premium is typically included in the tag price for those products or services. Cost reduction measures could increase risks for the organizations that pursue differentiation strategy. Although manufacturers in the automotive industry dramatically improved production efficiency in past ten years, they are still facing the pressure of cost control. The big challenge in cost control for automakers and suppliers is increasing prices of raw materials, energy and labor costs. These costs create constraints for the traditional economic expansion model.

China has become the world’s largest vehicle market in terms of sales volume. Automobiles sales keep growing in recent years despite the declining economic growth rate. Due to the increasing attention given to the environmental impact, more stringent emission regulations are being drafted to control traditional internal combustion engine emissions. In order to reduce vehicle emissions, environmentally-friendly new-energy vehicles, such as electric vehicles and plug-in hybrid vehicles, are being promoted by government policies. The Chinese government plans to boost sales of new-energy cars to account for about five percent of China’s total vehicle sales. It is well known that more electric and electronic components will be integrated into a vehicle platform during vehicle electrification.

With stringent emission regulations, aftertreatment systems with a Diesel Particulate Filter (DPF) and a Selective Catalytic Reduction (SCR) are required for diesel engines to meet PM and NOx emissions. The adoption of aftertreatment increases the back pressure on a typical diesel engine and makes engine calibration a complicated process, requiring thousands of steady state testing points to optimize engine performance. When configuring an engine to meet Tier IV final emission regulations in the USA or corresponding Stage IV emission regulations in Europe, this high back pressure dramatically impacts transient performance. The peak NOx, smoke and exhaust temperature during a diesel engine transient cycle, such as the Non-Road Transient Cycle (NRTC) defined by the US Environmental Protection Agency (EPA), will in turn affect the performance of the aftertreatment system and the tailpipe emissions level.

The growth of auto sales in emerging markets provides a good opportunity for automakers. Cost is a key factor for any automaker to win in an emerging market. This paper analyzes risks and opportunities in a low cost manufacturing environment. The Chinese auto market is used as an example and three categories of risks are analyzed. A typical risk assessment for cost reduction includes the analysis of environment risks, process risks and strategic risks associated with all phases of a product life. In an emerging market, emission regulations are a rapidly-evolving environment variable, since most countries with less regulated emission codes try to catch up with the newly- developed technologies to meet sustainable growth targets. Emission regulations have a huge impact on product design, manufacturing and maintenance in the automotive industry, and hence the related cost reduction must be thoroughly analyzed during risk assessment.

The application of Artificial Intelligence (AI) in the automotive industry can dramatically reshape the industry. In past decades, many Original Equipment Manufacturers (OEMs) applied neural network and pattern recognition technologies to powertrain calibration, emission prediction and virtual sensor development. The AI application is mostly focused on reducing product development and validation cost. AI technologies in these applications demonstrate certain cost-saving benefits, but are far from disruptive. A disruptive impact can be realized when AI applications finally bring cost-saving benefits directly to end users (e.g., automation of a vehicle or machine operation could dramatically improve the efficiency). However, there is still a gap between current technologies and those that can fully give a vehicle or machine intelligence, including reasoning, knowledge, planning and self-learning.

Fuel properties impact the engine-out emission directly. For some geographic regions where diesel engines can meet emission regulations without aftertreatment, the change of fuel properties will lead to final tailpipe emission variation. Aftertreatment systems such as Diesel Particulate Filter (DPF) and Selective Catalytic Reduction (SCR) are required for diesel engines to meet stringent regulations. These regulations include off-road Tier 4 Final emission regulations in the USA or the corresponding Stage IV emission regulations in Europe. As an engine with an aftertreatment system, the change of fuel properties will also affect the system conversion efficiency and regeneration cycle. Previous research works focus on prediction of engine-out emission, and many are based on chemical reactions. Due to the complex mixing, pyrolysis and reaction process in heterogeneous combustion, it is not cost-effective to find a general model to predict emission shifting due to fuel variation.

With stringent emission regulations, many subsystems that abate engine tailpipe-out emissions become a necessary part for engines. The increased level of complexity poses technical challenges for the quality and reliability for modern engines. Among the spectrum of quality control methodologies, one conventional methodology focuses on every component's quality to ensure that the accumulative deviation is within predetermined limits. This conventional methodology tightens the component tolerance during the manufacturing process and typically results in increased cost. Another conventional methodology that is on the other side of the spectrum focuses on tailoring an engine calibration solution to offset the manufacturing differences. Although the tailored engine calibration solution reduces manufacturing cost for components, it increases the development and validation cost for engines. Given the cost and time constraints, system integration plays an important role in engine development.