The Study Of FAW-VW Order Management Mode

The conflict between car market multiplicity demand and the effectiveness of car manufactuturer order management is one of the biggest challenge for auto industry. The mass production mode based on forecast created by Henry Ford at the beginning of 20th century when automobile industry marches into its second century already could not completely satisfy the customer individual demand, the automobile enterprise starts to attempt the new order management mode - "build to order ". However the internal order management and delivery process of the enterprise decides whether the order management mode could be successfully implemented.MIT IMVP project reseach shows that"Build to Order"(BTO) is the automobile industry future trends;"Build to Order"could solve the problem of product multiplicity and production organization effectiveness. Via BTO could meet the customer individual need, solve automobile industry many problems such as inaccurate forecast, stock backlog and profit drop. But as a result of the present automobile enterprise production and sale system ability problem, the enterprise should transit to BTO gradually and currently needs to adopt BTS, LTO, CTO and BTO mix mode. The final outcome of carrying out BTO have to be manifested in customer's response time, which is decided by the enterprise response ability. The enhancement of enterprise response ability needs the solving of process flexibility, the product flexibility and the output flexibility.This article through the description and the analysis to the OMDP (Order management and delivery process), discovered the most major problem in this process is the long order cycle of import parts which causes the OTD (Order to delivery) time is more than 14 weeks and the entire process difficulty to fulfill: The freeze period for sale forecast is too long, 12 weeks complete freezing, 12 ~ 20 weeks may have 5% ~ 15% flexibility; The production plan change frequently due to the inaccurate sales demand forecast; The order neet to be input 12 weeks in advance , which is very difficult, and the order input is also acting as the order basis for import parts at the same time which causes the order input function and the material disposition function to jumble together. The long import ordering cycle caused the entire OMDP extremely complex and moreover has concealed many other questions. The main idea for solving the long ordering cycle is to establish local stock and enlarges the domestic parts proportion.FAW-VW have at present used three kind of order management mode:The Audi individual order management mode most major problem is too long order delivery period, its essential reason is that it uses BTO production method, the idea for solving this problem is to use LTO and BTO mixed mode to meet individual order demand. Moreover the present individual order mode also exists production, quality assurance and delivery process problem. All of these problems need to establish corresponding process and set up priority for individual order.The Audi sale distribution order management mode most major problem is the push system, which is efficient when short of production. But it will be inefficient in intense market competition. The solving idea is one hand optimizes the current push system and on the other hand considering adopts VW quota based management mode and in future also transit to mixed mode.The VW quota based order management mode is in fact one kind of limited LTO, which realized on-line allocation of vehicles. The dealer has been allowed to carry on the pre- assignment to the pipeline resources and realized selling ahead of time. But at present the limitation is excessively much: forecast needs the concrete vehicle configuration and the order need to be raised 5 weeks ahead. The solving idea is open the limits gradually. Moreover the shortening of vehicle logistics time may consider uses the distribution storehouse, which has two aspects the consequences: The advantageous aspect is to reduce entire logistics time and enhance dealer rate of capital turnover, the disadvantageous aspect is to increase factory stock.This article biggest innovation is application innovation.This article through description of OMDP of FAW-VW reorganizes a very good knowledge property. The analysis based on this had found the essential question of OMDP, and elaborates the influence of each kind of question to the entire OMDP.This article embarks from FAW-VW order management mode theme, has carried on systematically the careful analysis for the first time to FAW-VW three kind of order management mode, discovers core question and proposes the solution and provides a very good reference for future development strategy of FAW-VW order management mode.Moreover this article uses the IMVP project research frame, conducts the research to present situation of FAW-VW order management mode, enable analysis of FAW-VW order management mode have certain theory depth.Moreover this article also provides certain reference for other automobile enterprises to solve the similar problem.