History
• Nicholas Hayek introduced the idea of Smart
• In 1991, Hayek teamed with Volkswagen
• In 1994 Micro-Compact Car (MCC) was formed
• In 1998 Swatch exited the project; MCC became a wholly owned subsidiary of Daimler-Benz,
now known as Daimler Chrysler.
1) The Concept
The Smart concept was new at every level.
The brand was new, the product was marketed as a new concept car, the distribution concepts and practices were innovative and
the production facility to support the concept was built from scratch.
Brand
Products
Distribution
Production
Value to the customer
2) The Car
• The Smart City Coupe is a two-seater car measuring
• 2.5 metres in length
• 1 metre 51 in width
• 1 metre 53 in height
•
• its 4 minimum size combines
• driver comfort
• safety
• customer choice
2) The Car
Modular Conception
product family
2001 2002 2003 2004
smart City-Coupé smart RHD smart crossblade
smart roadster/coupé
smart Cabrio
smart New Compact Car
3) Selling the concept
• Selling points of the car are
Technology
Design
Customisation
Space
Environment
3) Selling the Concept
points of sale (POS)
smart Center - Standard smart Center - Retrofit
smart Satellite
Number of POS 05/2002: 329
(+ Japan 162)
3) Selling the concept
Cars are built to the customers’ orders
But if Smart Centres do have cars in stock, the car can be customised at the centre according to the client’s
specification
•
Production postponement is a major element in customising the product
3) Selling the concept
• Single stage sales concept : Smart centres procure their cars directly from the production plant in
Hambach.
• Through, this concept Smart aims at minimising ordering and delivery time and reducing cost.
• Production planning is based on point of sale data
4) Smartville
MCC France and its partners
System Partners
Magna Système Chassis Sarl
Surtema/Eisenmann
Siemens VDO Automotive
Dynamit Nobel France Krupp Automotive
Magna Uniport SAS Systèmes France
Cubic Europe SARL
Krupp Automotive Systèmes
France
Logistic Partners
Schenker BTL-Stinnes
Logistics
Mosolf
Panopa
Part II
The supply chain structure
1) Modules concept
• Integrated Supplier (in-house) - Non-Integrated Supplier (outsource)
2) The Smart Plant Layout
3) Classic Model Vs. MCC Model
Classic Model
Supplier Manufacturer
MCC Model
Supplier Smart
Part III
Supplier relation and geographic locations
1) Supplier relation Goals
• Via its supplier relation, MCC is trying to achieve:
Flexibility In Production
Just In Time Operations
Short Supply Lead Time
2) Available to promise and Quality
• To become one of MCC suppliers, MCC requires
that all supplier should have:
• a specific level of available to promise
• a high level of quality to achieve their customer
satisfaction.
3) Building supplier relations
• Building a supplier relations was not a problem for MCC,
since Daimler Chrysler has a very strong and a good
relations with suppliers.
• New suppliers were trying very hard to assure MCC that
the can handle these operations.
4) Suppliers Competition
• MCC was evaluating the suppliers based on:
• A- The modules in terms of functions, materials, lay-out,
design etc.
• B-Suggested production technologies, processes and
location as well as logistic systems.
• C-Target Cost.
5) Supplier Location
• MCC found that the best way to reduce and minimize the
lead time between the final assembly and the suppliers is to
locate the Major suppliers within the same site of the plant.
• This strategy resulted in that the suppliers and partners of MCC
occupy a number of the on-site buildings and in fact the
investment in the factory development was shared with
suppliers.
6) Sharing MCC goals
• MCC is using a well designed financial compensation system
which encourage all suppliers to work hard toward specific
shared goals.
7) Suppliers Communication
Central area of the factory is designed as a meeting room
(functions as market place)
Use : open discussion of shortcomings
quality management and quality improvement meetings
Conclusion
1) Immediate and Long-term Issues
Supplier Relations
Measurement of Performance
Future Business Expansion
2) Innovative Achievements and Benefits
Cost Effectiveness regardless of Product variety
High Degree of Relationship with Suppliers
Fast Cycle Time and Short Lead Time
Ability of Car Customization
END