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© WZL/Fraunhofer IPT

Sustaining Capability for Innovation: A German Perspective Prof. Dr.-Ing. Dipl.-Wirt. Ing. Günther Schuh

Laboratory for Machine Tools and Production Engineering WZL RWTH Aachen University

6th Annual Manufacturing Summit at MIT

Boston, October 28th 2011


Quick, marketable innovations are the key success factor for high-wage countries

Source: WZL, BTM Consult ApS – 26 March 2007, World Wind Energy report 2008 -2010

Success factors for Germany as a high-wage country

1.  Achievement of a price premium by offering differentiated products fitting to heterogeneous market needs

2.  The use of commonalities offers the possibility of multi-variant product portfolios at high manufacturing productivity and competitive prices

3.  Reduction of the risks of imitation by highly innovative products

+53000 (759%)

+40000 (98%) +35000

(386%)

Newly installed wind power capacity (in MW) between 2006 and 2010

Asia 72%

13%

Europe

USA

15%

Production of wind power plants: Market share

Example: Wind power


Innovation by alignment of product and production

Only manufacturers achieve sustainable product innovation leverage – a German perspective

Product (Innovation)

Production (Innovation)

Internal & external

value chain

Sales market

Alignment of product innovation with customer needs

by proximity to sales market

Assuring and improving manufacturability of products by proximity to production

Missing link for Asian manufacturers?

Missing link for U.S. firms?


The three major objectives for manufacturing in high-wage countries

Innovation

Individuality Manufacturing Productivity

Meeting heterogeneous market needs by offering a diversified product range

Sustaining productivity of manufacturing by standardization of products and processes

Keeping up with dynamic advancement of customer needs and technologies by rapid evolution of products


The three major objectives form a trilemma for manufacturing in high-wage countries

Trilemma of Manufacturing in

High-wage Countries

Innovation

Individuality Manufacturing Productivity

Management of product and process diversity ties up

capacities for actual innovation

Standardization of product and processes constrains degree of

freedom for innovation

Increase in product individualization results in a

reduced level of economies of scale


Reduction of the dilemma between individuality and commonality by definition of intelligent product and process standards

Sources: Volkswagen Sachsen GmbH, Volkswagen AG, Audi AG, Skoda auto a.s., Seat s.a.

Standardized rear-axle interface

Standardized technical length

Standardized assembly sequence

Stan

dard

s

in p

rodu

ct a

rchi

tect

ure

and

prod

uctio

n

Div

ersi

ty

of p

rodu

ct

rang

e

Sub-Compact Compact Medium Coupe Crossover Transverse Modular Product Architecture (MQB) at Volkswagen


Harmonization of product and manufacturing by integrative standardization

Sources: Audi MediaServices, Autoreport.at

Product

Production

Standardized reference and lifting points constitute available design set for structural parts of car body

Standardized reference and lifting points allow for standardized processes

and equipment


The intelligent definition of standards not only effects manufacturing productivity but also innovation

Sources: Volkswagen AG

„Several models will get realizable at all, because they become profitable with the new modular product architecture.“ Dr. Ulrich Hackenberg, Head of Product Development at Volkswagen

Effects on innovation Effects on manufacturing productivity

100%

50%

0%

+10%

MQB

70%

PQ35

60%

2

4

0 PQ35

+98%

MQB

3,79 1,91

Sold units (milion units in 2016)

Percentage of common parts

The resolution of the individuality-commonality dilemma by implementation of the right level of standardization allows for freeing up capacity for innovation.


Alignment of product architecture and production structure for machine tools at MAG Corcom

Flow assembly RT

Shipping/ Receiving

RT ass.

Com

mis

sio-

ning

Spi

ndle

Test

bed

spin

dle

Assembly spindle HMC

Demounting repair spindle

Ship-ping

Ship-ping

Quality control

Manufaturing spindle shaft

Manufaturing spindle housing

Manufaturing rotary table

Tool pre-setting

Technical Laboratory

Manu-faturing special

parts

Receiving Man

ufat

urin

g m

ediu

m p

arts

(N

BH

290/

NB

H35

0)

Manufaturing special parts

Box assembly RT

Commissioning rotary table

SM

RT

SM

spi

ndle

Kanban

material

Assembly spindle TC

Product

Production

Standardized value streams constitute product architecture for machine tool program

Standardized product architecture enables

defined value streams in manufacturing

Sources: MAG Corcom GmbH


Standardized spindle diameter

Standardized packaging of axial drives

Friction honing

By the implementation of commonalities, niche markets can be opened up economically

Bore honing Peak honing

Plateau honing

Cyl

inde

r he

ads

Cra

nk-

case

s

Gea

r ho

usin

gs

Shi

ft sl

ider

ho

usin

gs

The technology of honing could be opened up economically applying the standardized product architecture

Spherical honing

Threading

Areas of application

Precision turning Drilling Milling

Cyl

inde

r bu

shin

gs

Gea

r w

heel

s

Pis

ton

ro

ds

Sources: MAG Corcom GmbH


Resolution of the trilemma of manufacturing by harmonization of product and innovation

Accurate level of standardization allows for actual innovation

Regularized individuality frees up capacity

for innovation

Innovation

Manufacturing Productivity Individuality

Harmonized standardization of product and

manufacturing decouples individuality and

manufacturing productivity

Conclusions:

n  There is a trilemma for production in high-wage countries between innovation, individuality and manufacturing productivity

n  By definition of harmonized standards for product and production the trilemma can be resolved

n  This harmonization necessitates a deep understanding of the product and the sales market as well as the production including the entire value chain

à Only manufacturers achieve sustainable product innovation leverage


Thank you!

Prof. Dr.-Ing. Dipl.-Wirt. Ing. Günther Schuh

Phone: +49 241 80 - 27404 Fax: +49 241 80 - 22293 Email: [email protected]


Appendix


Integrative product architecture and production research at RWTH Aachen Campus

Concept of RWTH Aachen Campus n  Enrollment of companies at RWTH Aachen

University n  Joint research and education with labs and

institutes of the university n  Direct transfer of knowledge and advanced

training

Demo Factory at Logistics Research Cluster

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