AMR Report

AMR Report Root Cause Analysis Requires Rethinking Automotive Plant Software

Root Cause Analysis Requires Rethinking Automotive Plant Software

With vehicle manufacturers looking to shift 45%, or $5.4B, of warranty costs to suppliers whose part numbers were named as the "prime part" in a component failure, economics mandate better visibility into plant-floor operations by the automotive supply base.

Abstract

Given the fact that the prime part cost allocation method is less than 50% accurate, manufacturers will need to collect part and process information from their operations. However, traceability is about more than just decreasing liability exposure; industry leaders strategically view it as a source of sustainable competitive advantage through warranty expense reduction, better product quality, and improved Operational Equipment Effectiveness (OEE).