RMIT AUTO1025 S2-2018: Automotive Systems and Control Report

This report, prepared for the AUTO1025 course, provides a comprehensive overview of automotive systems and control, addressing key aspects of manufacturing and supply chain management within the automotive industry. The report begins with an introduction to Detroit Bike Company, examining its logistics and supply chain strategies, emphasizing the importance of efficient information flow and OEM relationships. It then delves into the Toyota Production System (TPS), highlighting its principles of waste elimination and continuous improvement, and discusses the implications for a growing company. The analysis further explores mass customization techniques, specifically how Detroit Bike Company implements these approaches. The report also covers the use of manufacturing simulation software, its benefits, and associated financial considerations. Finally, it examines lean manufacturing principles, emphasizing waste reduction and productivity maximization. The report concludes by providing a summary of the implications of each approach for the company.

Running head: AUTOMOTIVE SYSTEMS AND CONTROL 1
Automotive Systems and Control
Name
Institution

AUTOMOTIVE SYSTEMS AND CONTROL 2
Task 1: Logistics and Supply
Introduction
Detroit Bike Company is considered one of the best bicycle manufacturing companies. It
averagely assembles 1935 bicycles per day making it one of the leading assemblers. They are
additionally driven by the motto “Streets are best explored on two wheels”. This motto has
encouraged more o customers to purchase these bicycles (KEEN, 2014). The company was
started in West Detroit by a group of six very talented workers.
Supply Chain Management
Detroit Bike Company mainly focuses on technology and quality, unlike other brands
whose focus is on marketing. The supply chain is closely knit and rich in precision machinery
development expertise (Islam et al., 2013). In fact, West Detroit, the supply is designed in such a
way that the distance between the suppliers and the OEM companies is made short. This, in turn,
helps in shortening the lead times in information flow and the access to materials (Christopher,
2016). They also have a dual strategy of OEM business and brand positioning that makes them a
big force in the industry.
The implication of our Company
Since our company is still a small and upcoming company, Detroit Bike Company could
be a very good choice if we are looking to improve our products. It could be important for the
company to know the logistics and supply chain management of Detroit. This would help the
company in growing and getting closer to other suppliers and consumers, therefore, increasing
the flow of products in the market.

AUTOMOTIVE SYSTEMS AND CONTROL 3
Task 2: Toyota Production System
Introduction
The Toyota Production System was developed during the 20th century and has
continuously been focusing on improvements to increase the efficiency and production speed of
products. This system has been adopted by several businesses with the aim of improving their
performances and becoming more efficient. The system is based on two concepts that include
Jidoka and just-in-time. It organizes logistics and manufacturing for automobile industries
including how to interact with customers and suppliers.
TPS
This system has several goals that include the elimination of wastes and inconsistencies.
Some of the ways that TPS ensure that they eliminate wastes include; eliminating the waste of
transportation, waste of time on hand, waste of underutilized workers, waste of movement, and
the waste of overproduction which takes the largest proportion. TPS also has some underlying
principles that guide its operation. These principles include respect for people, continuous
improvements, long-term philosophy, consistency in solving root problems, and following the
right processes to produce the right results.
The implication of our Company
Our company being a young company at the moment would draw a lot of ideas from TPS
to aid in its improvement. Some of the principles that guide TPS can form a basis for the growth
and development of any company. Just like TPS, our focus should be on the long-term even if it
means sacrificing our short-term financial goals.

AUTOMOTIVE SYSTEMS AND CONTROL 4
Task 3: Mass Customization
Introduction
Mass customization can be described as a process of delivering modified goods and
services to satisfy the specific needs of a particular customer. It combines the personalization of
products that are custom made and the flexibility with the low unit costs that are characteristics
of mass production (Tseng & Hu, 2014). Products of mass customization may also be referred to
as built to order.
Mass Customization at Detroit Bike Company
This technique allows the customer to customize certain features of the bicycles produced
by Detroit Bike Company while at the same time keeping the costs closer to that of products that
are produced in masses. As a result, the customers get the chance to combine different options
thus creating a semi-custom final product. This company recognizes the need to provide
outstanding services to the customer and thus they have invented new procedures to meet the
requests of every customer. It uses four approaches to customization that include the following;
transparent, collaborative, adaptive, and cosmetic approaches.
The Implications of our Company
Our company, with the desire to reach more customers can aim to apply the above
mentioned customization approaches. Through the collaborative approach, the company can
conduct dialogues with the customers to understand their needs. The product offered should be
standard but also adaptive to allow for customization (Tseng & Hu, 2014). But being an
upcoming company, it may still be a challenge to adapt a cosmetic approach as it may not be
possible to provide a standard product differently to various customers.

AUTOMOTIVE SYSTEMS AND CONTROL 5
Task 4: Manufacturing Simulation Software
Introduction
Simulation is a very powerful technique that helps in the analysis of manufacturing
systems, evaluation of the impacts of system changes and informed decision making. The
decisions that deal with the optimization, development, and reorganization are influenced by
several factors that are in most cases very costly. In most cases, decisions are made based on
experience and intuition and sometimes these approaches are way too risky (Mourtzis, Doukas &
Bernidaki, 2014). Manufacturing Simulation Software, therefore, allows companies to model
specific processes and strategies for purposes of effective analysis and the provision of an
efficient way of reducing the costs associated with testing in the real world.
Manufacturing Simulation Software
This software uses an interactive yet animated model to duplicate the operations of an
existing production system. Companies such as Detroit Bike Company use simulation to analyze
the efficiency of systems of manufacturing and safely test changes in the processes of
manufacturing thus improving the throughput and profitability. This simulation process has been
found to be more accurate when compared to the traditional processes such as spreadsheets.
The Implications of our Company
This technique is very expensive and can be very demanding in terms of financial
requirements for a company that is just starting up. It may, therefore, be wise to channel the finds
that may be required to set up manufacturing simulation software in other areas such as
production. In the long run, however, it could be a welcoming development to ensure that the
manufacturing process is effective and efficient.

AUTOMOTIVE SYSTEMS AND CONTROL 6
Task 5: Lean Manufacturing
Introduction
Lean manufacturing is an approach used to minimize or eliminate wastes from the
process of manufacturing. This process at the same time focusses on maximizing the productivity
of manufacturing companies. This approach is based on the Toyota Production Systems and is
also used by a host of other companies (Bhamu & Singh Sangwan, 2014). It is based on several
principles that include continuous improvement among other principles. Some of the benefits of
lean manufacturing include improved product quality and a reduced cost of operation.
Lean Manufacturing
Companies such as Detroit Bike Company along with the Toyota Productions Systems
apply this approach of production to improve on productivity by eliminating unnecessary wastes.
These companies identify values from the perspective of a customer. They understand well them
despite the fact that they create the values; these values are defined by the customers (Panizzolo,
Garengo, Sharma & Gore, 2012). Additionally, the companies map the value stream by
analyzing and recording the flow of information and other materials that may be required to
specifically produce certain products. They also pursue perfection by focusing on continual
process development.
The Implications of our Company
It could be important for our company to apply this approach to lean manufacturing as
waste is the last thing that we would want to experience. Elimination of wastes would be
important in ensuring that the production costs are reduced while at the same time ensuring that
productivity is maximized. This in turn aids in the growth of the company.

AUTOMOTIVE SYSTEMS AND CONTROL 7
References
Bhamu, J., & Singh Sangwan, K. (2014). Lean manufacturing: literature review and research
issues. International Journal of Operations & Production Management, 34(7), 876-940.
Christopher, M. (2016). Logistics & supply chain management. Pearson UK.
Islam, D. M. Z., Meier, J. F., Aditjandra, P. T., Zunder, T. H., & Pace, G. (2013). Logistics and
supply chain management. Research in Transportation Economics, 41(1), 3-16.
KEEN, P. B. J. (2014). Detroit. delta, 69.
Mourtzis, D., Doukas, M., & Bernidaki, D. (2014). Simulation in manufacturing: Review and
challenges. Procedia CIRP, 25, 213-229.
Panizzolo, R., Garengo, P., Sharma, M. K., & Gore, A. (2012). Lean manufacturing in
developing countries: evidence from Indian SMEs. Production Planning &
Control, 23(10-11), 769-788.
Tseng, M. M., & Hu, S. J. (2014). Mass customization. In CIRP encyclopedia of production
engineering (pp. 836-843). Springer, Berlin, Heidelberg.