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Before we bring Norm Markert, a new product to the floor, we have cell design workshops where the product design president of Autoliv engineers, the process engineers, the machine North America people, and the production people get together as a team and design the production line, says David B Johnson, forecasting and planning manager for Autoliv s Airbag Module Facility Who better than the operators to tell you what works well and what doesn t They know what motion is hard to do or what process produces a lot of scrap We re getting user input, and some of the better improvements we ve seen on the floor have come from those line operators who are doing the work day in, day out After the new production system was fully operational at the Ogden plant, the results were dramatic.

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Defect rate for parts shipped to the customer dropped 67 percent over two years Inventory turns increased by 79 percent Productivity improved 45 percent by reducing labor minutes per part Total cost per unit dropped 30 percent over four years Tonnage shipped to landfills was reduced by 41 percent The early success in Ogden prompted Autoliv to implement the new production system at its Utah inflator plants, with similar results The combined accomplishments of the inflator and airbag assembly plants earned Autoliv the 2002 Shingo Prize for Excellence in Manufacturing..

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Seeing its supply chain as a strategic asset is nothing new for Autoliv. The company has a history of long-term productive relationships with its sup-

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pliers Our supply base represents over 60 percent of the total manufacturing costs for our products, says Markert So we recognize [that] our extended supply chain is vital both from a day-to-day operations sense and for our future process and product development For years, Autoliv used all the traditional approaches to manage its extended supply chain Commodity teams aggregated Autoliv s supply base demand across business units and monitored the global supply markets Prospective sup- represents over 60 pliers were qualified carefully, and once percent of the total engaged, their performance was monitored closely To support Autoliv s transformation manufacturing costs to the new production system modeled after for its products Toyota s, however, the company s supply chain strategy had to evolve.

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mix offensive and defensive strategies for each player. This way, each player gets to attack and to defend. What is more important, players can trade off defensive needs against offensive opportunities. Triangular relationships automatically spring from such situations. The essence of the value of triangularity lies in its indirection. A binary relationship makes direct conflict unavoidable; the antagonists must approach and attack each other through direct means. These direct approaches are obvious and expected; for this reason such games often degenerate into tedious exercises following a narrow script. A triangular relationship allows each player indirect methods of approach. Such an indirect approach always allows a far richer and subtler interaction.

UPS3: TO POWER A NON-LINEAR LOAD .TRAN 9.766U 10M UIC .FOUR 400HZ V(13) .PROBE V(1)=OUT V(15)=Q V(7)=FLTR1 .PRINT TRAN V(1) V(15) V(7) V(3) R1 15 7 4.7K C1 7 0 47N IC=0 V1 4 0 PULSE -2.5 2.5 10N 10N 10N 5U 9.766U V2 5 0 SIN 0 1.5 400 R4 5 0 1MEG R5 7 1 47K C2 1 0 8.2N IC=0 EB1 6 0 Value={ IF ( (V(5)-V(7)) > 0 , 2.5 , -2.5 ) } X2 18 0 8 11 10 XFMR-TAP Params: RATIO=.1 X4 10 0 2 SWITCH V3 11 0 24 L1 18 3 10M C3 3 0 1U X3 8 0 12 SWITCH EB3 12 0 Value={ IF ( V(14) > 0 , 10 , 0 ) } EB4 2 0 Value={ IF ( V(15) > 0 , 10 , 0 ) } X6 3 0 9 13 KBPC806 C5 9 13 1M IC=140 R10 9 13 150 X1 4 6 0 0 14 15 FFLOPZero .END

Beyond just tracking cost and performance of each component of the supply chain, Autoliv had to expand its focus and look at the bigger picture the total cost of ownership of its products and the flow of goods and information from one end of the supply chain to the other What we are finding, in many cases, is that there is not a lot of money to be saved in individual parts The real money to be saved is in the interfaces along the supply chain, Markert says There are trade-offs that can be made to realize substantial savings in a system that aren t readily apparent when you are looking at a component level So that has led us to increased collaboration, both within the company and with our supply base, to identify these interface costs and take them out of the supply chain.

Figure 7.12a Schematic and netlist of the push-pull converter driving a nonlinear load. Original con guration similar to Fig. 7.7.

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