12/3/2006 1

Automotive Industry Action Group (AIAG)

John Romankiw

12/3/2006 2

Agenda1. AIAG Defined

2. Brainstorming Exercise

3. Nuts and Bolts

4. How it works

5. Testimonies

6. Exercise

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AIAG’s Vision

AIAG is the catalyst for the global automotive industry’s efforts to establish a seamless, efficient and responsible supply chain

12/3/2006 4

Brainstorming Exercise

• Think of three problem areas in your supply chain

• Write these problems down

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Nuts and Bolts

What can AIAG do for your company?

• Automatic Identification and RFID

• Collaborative Engineering and product Development

• E-commerce

• Health Focus

12/3/2006 6

Nuts and Bolts (continued)

• Occupational Health and Safety

• Quality

• Emerging Markets

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Automatic Identification and RFID

• Standardized rules for are codes, 2-D symbols, and RFID

• Warranty Reduction

• Anti-counterfeit Parts

• RFID for Wheels and tires

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Collaborative Engineering & Product Development

• Global Metrology Quality Measurement Data Standard

Data exchange between gages and tools

Production time and money savings

• Dimensional Mark Up Language

Interoperability

Reduction of cycle time and manufacturing costs

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E-commerce

• Inventory Visibility and Interoperability Project (IV&I)

Reduction on Lead Time in Supply Chain

Auto Industry savings of $255 million

• Joint Automotive Data Model

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• Reduce waste in the supply chain

• Health Awareness

• Disease prevention and management

Health Focus

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Occupational Health & Safety

• Reduce Work Place Injury

• HAZMAT

• Vehicle Labels

• Small Lot Delivery

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Quality

• Production Part Approval Process (PPAP)

• Problem Solving Guidelines

• Statistical Process Control

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Emerging Markets

• B2B Survey in China

• Global Working Conditions

• Cooperation Agreement

12/3/2006 14

How It WorksHow Can You Become a Member of AIAG?

• Coorprate Membership

• Based on Annual Revenue

• Associate Membership

• Flat Fee

12/3/2006 15

Testimonials

"AIAG helps us to understand where technology is moving, even in something as simple as labeling. Because we were involved in AIAG, Freedom saw all the new Ford labeling requirements long before they were implemented publicly. Obviously, this knowledge helped us with our own customers, because we made sure we were Ford-compliant before they knew what was expected of them." Rick Scorey, President Freedom Technologies

12/3/2006 16

Testimonials "AIAG gives me the opportunity to improve the industry instead of

just sitting back and complaining about things that are not going right. The most rewarding part of my AIAG experience was the recent success of our IV&I proof-of-concept effort. We have finally found a way that will allow us to electronically connect the entire supply chain that will be affordable and effective for all involved. To know that adoption of the technology tested in this project will allow us to communicate inventory information much more quickly so that the supply chain won't have to carry excess inventory, especially at the lower tiers - that has to be the highlight for me." Terry Onica, QAD

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Exercise1. Draw a brief relationship diagram for your supply

chain.

2. Label all the areas that you are having problems with communication, quality, standardization of information, or any other thing that you can think of.

3. In what ways can AIAG help your organization smooth out problems in your supply chain?

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Summary• Streamline the industries processes and business practices

• Speed and improve industry supply chain

• Improve quality

• Foster relations among organizations in the auto industry

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Readings list

• Automotive Action Group http://www.aiag.org/Index.cfm

• FreeQuality http://www.freequality.org

• OpenStandards http://www.openstandards.net

• RFIDJournal http://www.rfidjournal.com/article/articleview/2778/