Chrysler Has New Product Process

According to AP, Chrysler has created a process to better develop, build and market new products. The process is based on the creation of 50 separate product innovation teams which would work closely throughout the design, engineering and marketing of Chrysler vehicles.

Dieter Zetsche, Chrysler Group president and chief executive, said the new process would result in a greater "commonality" within the company which could result in sharing vehicle platforms and components with the automaker's Mitsubishi unit. There is also the possibility of sharing components with Chrysler's corporate cousin, Mercedes Benz. Greater commonality also would mean reducing the number of different types of the same component. For example, Chrysler currently has 25 kinds of batteries. Wolfgang Bernhard, Chrysler's chief operating officer, believes that only five are needed.

Rich Schaum, executive vice president for product development and quality, said it was hoped the new process could accelerate the time it takes from idea to launch, with 18 months as an objective.

Source: Chrysler Hatches New "Process" (Associated Press, 12 July 2001)

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The management of 50 separate "product innovation" teams brings up two important challenges.

• Product architecture - How is the car decomposed into 50 chunks with maximum cohesion and minimum coupling. Assuming a degree of loose coupling (engineering tolerance) between the chunks, what are the consequences of this for the performance and reliability of the whole car? And how are the chunks assembled with minimum waste and zero feature interaction? 

• Development coordination - How are interactions between teams negotiated and controlled? How are procurement and supply chain issues coordinated? 

Another interesting aspect of the story is how the corporate interests within Chrysler appear to line up. At least as it is being described by Chrysler senior management, the new process seems to involve a shift of power away from "creativity" and "design" and towards "marketing" and "finance" - these are Chrysler's categories, not mine. A corporate programme of common components also helps to cement the merger between the US and German operations, and may also increase the bandwidth of the relationship with Mitsubishi.

Originally published at http://www.veryard.com/sebpc/manufacturing.htm