FIRST PREREQUISITE FOR A STABLE SERIES START: SUPPLIER MANAGEMENT

Supplier selection and Supplier Quality Assurance (SQA) are crucial to ensure a smooth and swift series start-up. An experienced and globally operating manufacturing partner like Magna naturally works with a network of renowned suppliers. Nevertheless, SQA sampling and performance tests ensure that suppliers can provide the relevant components in the required quality and quantity before the series start-up.

However, ensuring supply reliability is the most challenging aspect for manufacturers to control. Even the most diligent purchasing department is relatively powerless against external influences such as natural disasters, pandemics, or unforeseeable events. Good risk management helps minimize the risk of supply chain disruptions—for example, by always having a “Plan B” or even “Plan C” ready for production-critical components. This means the SE team must bring all parties together to establish a clear reporting structure and define key performance indicators. This allows critical points to be identified in advance and alternative scenarios to be prepared.

PRE-TUNED COCKPITS AS SECURITY MEASURES IN A CRISIS

Good start-up management can be compared to an airplane cockpit. A pilot receives a large amount of information via instruments and displays and has many levers and buttons to make quick decisions in an emergency. Similarly, transparent information and communication systems help manufacturers initiate the right measures—precisely worked out beforehand—to avoid supply failures. The clearer these “cockpits” are designed, the more effectively the plant and production can be managed, and the faster disruptions can be addressed.

In concrete terms, this means maintaining a clearly coordinated reporting system, a clear organizational structure, and accurate data, figures, and facts. Magna is well equipped in this respect. This has been demonstrated by incidents in recent years, such as the semiconductor crisis during the COVID-19 pandemic or the successful substitution of Ukrainian suppliers within days of the start of the Russo-Ukrainian conflict. OEMs’ pre-installed emergency processes and subsequent cooperation with Magna helped avoid severe short-term failures.

SECOND PREREQUISITE: ADVANCED PRODUCT DEVELOPMENT

In the case of a first start-up, the contract manufacturer must also carry out development work. Advanced product development is therefore an obvious prerequisite for ensuring that the vehicle can be produced without problems and that the series start-up can take place without delays. It is a major advantage if the manufacturing partner has strong in-house development expertise—like Magna.

THIRD PREREQUISITE: EMPLOYEE TRAINING AND PREPARATION 

The third prerequisite for successful start-up management is plant readiness. In addition to setting up production technology in a timely manner, this primarily includes optimally trained and skilled production employees. For a second start-up, the workforce can be trained more easily for the vehicle model in cooperation with the OEM at the primary plant. Experienced employees are selected in advance and trained on site. They can then train other employees at the contract manufacturer and pass on their knowledge.

Even for the first start-up of a new vehicle type, staff can train on the real product. Initial structures, known as mules, are assembled during the development phase so that work processes can be practiced. Later, prototypes are assembled at the plant and at suppliers. In these early phases, production staff are involved to learn specific challenges and pass on what they have learned in a snowball system. Experienced production staff can also provide valuable feedback to engineering regarding conceptual weaknesses.

AUTOMATION AND DIGITALIZATION - MORE ROBUST OR MORE VULNERABLE?

Even for smaller quantities, modern automotive production is inconceivable without extensive automation—if only to ensure consistently high quality. This is also associated with increasingly comprehensive digitalization of processes. Initially, this requires considerable investment, and digitalization makes many processes more complex. More specialized staff and robust software are needed.

All of this must be coordinated, completed, and ready for operation long before the series start-up. Good start-up management prevents programming and visualization problems from arising while the company is already dealing with processes, training, and product issues. However, if digitalization is rolled out properly, it offers the best opportunities to make series start-ups faster and more transparent through intelligent production control. That is why there is no way around digitalization nowadays. It needs to be embraced and robustly implemented in production. Only then can it help make ongoing series production more reliable and ensure that the start of production becomes smoother and less challenging.

Excellent supplier management, mature product development, comprehensive training, and Simultaneous Engineering are indispensable for a smooth series start in the automotive industry—they ensure quality, speed, and competitiveness.