Automotive Industry Action

Group (AIAG)

John Romankiw

12/3/2006 1
 Agenda
1. AIAG Defined
2. Brainstorming Exercise
3. Nuts and Bolts
4. How it works
5. Testimonies
6. Exercise

12/3/2006 2
 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 3
 Brainstorming Exercise

• Think of three problem areas in your supply chain

• Write these problems down

12/3/2006 4
 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 5
 Nuts and Bolts (continued)
• Occupational Health and Safety
• Quality
• Emerging Markets

12/3/2006 6
Automatic Identification and RFID

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

and RFID
• Warranty Reduction
• Anti-counterfeit Parts
• RFID for Wheels and tires

12/3/2006 7
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

12/3/2006 8
 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

12/3/2006 9
 Health Focus
• Reduce waste in the supply chain

• Health Awareness

• Disease prevention and management

12/3/2006 10
 Occupational Health & Safety

• Reduce Work Place Injury

• HAZMAT
• Vehicle Labels
• Small Lot Delivery

12/3/2006 11
 Quality
• Production Part Approval Process (PPAP)
• Problem Solving Guidelines
• Statistical Process Control

12/3/2006 12
 Emerging Markets
• B2B Survey in China

• Global Working Conditions

• Cooperation Agreement

12/3/2006 13
 How It Works
How Can You Become a Member of AIAG?
• Coorprate Membership
• Based on Annual Revenue
• Associate Membership
• Flat Fee

12/3/2006 14
 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 15
 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

12/3/2006 16
 Exercise
1. 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?

12/3/2006 17
 Summary
• Streamline the industries processes and
business practices
• Speed and improve industry supply chain
• Improve quality
• Foster relations among organizations in the
auto industry

12/3/2006 18
 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/

12/3/2006 19