3 - Jacobs University
3 - Jacobs University
3 - Jacobs University
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internal processes and increases organization’s operational efficiency and therefore its profitability.<br />
Platforms reduce the number of components and therefore simplify OEMs’ inventory management<br />
(van Weele, 2010). Meanwhile, the larger volumes per component accelerate the learning process<br />
in production, which eventually results in improved quality. An important advantage of standardized<br />
platforms is also risk-pooling. In cases of shortages of components for a particular model, the<br />
OEM can quickly counteract by filling in the inventories with the same components stock-piled<br />
for other models (Veloso & Kumar, 2002; van Weele, 2010). This is particularly useful to offset<br />
misguided forecasts of customer demand such as unexpectedly high interest in particular products<br />
and lack of interest in others (van Weele, 2010).<br />
Due to the significant advantages which the platform use offers, very often the whole product<br />
portfolio of a particular automotive group is based on just a few standardized platforms. Quite<br />
common are also cases in which automotive business competitors would form alliances among<br />
one another and develop joint platforms. Recently, more daring projects aim at the even further<br />
integration of individual models in OEMs’ product ranges and therefore larger cost reductions.<br />
One such example is Volkswagen’s MQB strategy (from German Modularer Querbaukasten or<br />
modular toolkit). The target of Volkswagen’s new strategy is to develop a universal platform for<br />
the construction of transverse, front-engine, front-wheel-drive vehicles, which is intended to be<br />
highly standardized, but at the same time flexible enough to be incorporated in a very large number<br />
of different models in several different market segments 5 . The use of the MQB is an important<br />
pillar in Volkswagen’s business strategy. It is expected that the introduction of the MQB platform<br />
would reduce the one-off expenditure and the unit costs by up to 20% each, and the engineered<br />
hours per vehicle by up to 30% (Pötsch, 2011). MQB is also particularly useful for significant<br />
weight reductions and respectively lower emissions. The first mass production models based on<br />
the MQB concept are expected to roll off the Volkswagen production lines already in 2012.<br />
Despite their immense advantages, standardized platforms represent still another significant<br />
challenge for the quality management process and in particular for quality auditing. The fact<br />
that they offer a way to suppress rising development costs, and at the same time allow OEMs to<br />
maintain product portfolios with a large number of models, gives platforms a central position in<br />
OEMs’ production strategies. However, potential defects in the individual standardized production<br />
components immediately affect all models using the platform and respectively a very large amount<br />
of vehicles. Such undesired situations not only have serious financial consequences, but also are<br />
especially harmful for the image of the respective company. In the end of 2009 and the beginning<br />
5 Source: personal communication with Volkswagen AG employees.<br />
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