Automobile is the most significant innovation to mankind. Now a day we can’t think of life without vehicles. A wide range of companies and organizations are involved in the design, development, manufacturing, marketing, and selling of motor vehicles. The automobile industry employs a good no. of the workforce directly and indirectly. It is one of the world's most important economic sectors by revenue.
The automobile industry started its journey from the 18th century after the innovation of steam engine by James Watt. Henry Ford is believed as the person, who gave shape to the modern automobile industry.
Till 2012 United States was the leading manufacturer of automobiles and by 2012 China has become the largest manufacturer surpassing US and Japan. The global Production of Automobile in the year 2014 is 89,747,430, which is about 2.6% more than in 2013.
MAJOR CHALLENGES FACED BY AUTOMOBILE INDUSTRY
- Complexity and cost pressure:
The increase in regulations with respect to environmental and safety standards will raise costs but also increase complexity, as they need to be managed apart from domestic markets. The growing number of derivatives serving different vehicle segments and markets based on a single platform also raises complexity.
- Diverging markets:
Emerging markets’ share of global sales will rise from 50 per cent in 2012 to 60 per cent by 2020, while their share of global profits is also set to rise by 10 per cent. However, the location of current production and supply bases is not sufficiently aligned to future sales.
- Digital demands:
When it comes to buying a car, research shows that digital channels are already the primary information source for customers. For many, the next step could be online purchasing.
- Shifting industry landscape:
As OEMs seek to develop alternative powertrain technologies, suppliers will likely provide more of the value-added content per car.
- Quality management:
Quality management (QM) will, by becoming a cross-functional and cross-company concept over the whole value-add chain, help ensure that companies grow their maturity in resilience.
- Product development management:
Managing product development together with a focus on broadening competencies in new technologies will help enable OEMs to become more variable by the optimization of collaborative engineering.
HOW ARRELIC WILL HELP AUTOMOBILE INDUSTRY
- We will help to develop an effective and efficient maintenance program that will reduce your maintenance cost and improve your machine availability and reliability.
- Improving Reliability by adopting best in class RCM approach for Automobile Industry.
- We will Identify bad actors and mitigate the risk by adopting the automobile industries best practice which will further drive improvement in the reliability and maintainability of your systems.
- Using FRACAS (Failure Reporting, Analysis and Corrective Action System) to capture real time field data, Identifying, selecting and prioritizing problems and implementing corrective actions.
- Reduce operation and maintenance cost by implementing analytics driven MRO - Maintenance, Repair, and Overhaul.
- Better Management decision-making by measuring the availability of finished product and understanding the contributing factors to maintenance costs.
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to know more about how Arrelic will help automobile industry.