[s-cars] Longevity and

Djdawson2 at aol.com Djdawson2 at aol.com
Wed Apr 23 19:14:47 EDT 2003


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Doug in MN (where I'll be flying tomorrow to pick up another S4!!),

As a manufacturing engineer, your points are well taken.  There's no doubt
that economic disadvantages CAN exist.  However, we aren't even offered the
option of purchasing dated parts at a premium price.  In fact, I'd argue that
past model support from Audi is worse than any other comparable sized auto
manufacturer, and many smaller ones.

My work is in process reengineering... mostly in the maintenance arena
(facilities and fleets), but often in manufacturing.  Companies that are
highly evolved in "lean manufacturing," excel in quick setup of production
lines... meaning that they are able to quickly and efficiently switch gears
and start pumping different product through the same line.  The benefits are
many, but the 2 that come immediately to mind are: short production
runs/small quantities lead to minimal inventory holding costs.  In other
words, it is possible to attain production runs that approach JIT (relative
to sales).  The second, less tangible benefit, is that by embracing "lean
manufacturing" principles, your sales ultimately increase.  How much?  Who
knows.  If you, or I, or any other person on that owns an Audi COULD purchase
any of the currently NLA parts from Audi starting next week, what would that
volume of business amount to?  Certainly something, but I wouldn't guess how
much.  However, a net increase is certain.

The best example I've witnessed was with Ryobi power tools.  Look around a
Home Depot, and you'll notice the vast quantity of different products they
sell.  Watch their production line, and you'll see how good an organization
CAN be at producing huge quantities of widely varying products.  They produce
based on sales, not a market projection.  They can because their production
lines are "quick change."  If Audi had that same capability, they could keep
parts available longer.  It's not easy, and Audi has decided it isn't worth
the effort.  The customer suffers the consequences ultimately.
Sorry for the dissertation... but that's what I think.
Take care,
Dave in CO



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