IntroductionWelcometotheAutomotiveBestPracticesForum.TheForum’sgoalistocreateaninteractivebestpracticesdialogueamongparticipatingcompanies.Afterreadingthismemo,pleaseprovideuswithyourinputbycompletingandreturningtheenclosedquestionnaire.ArthurAndersenBackgroundDuringthepast18years,ArthurAndersenhasbeenaleaderintransferringknowledgewithintheautomotiveindustry.Wepublishedthefirstautomotiveindustry“DelphiStudy”in1979,andeveryotheryearthrough1991.Theresultsofthe1991studydirectedustointensivestudies,co-sponsoredbyFordandGeneralMotors,ofproductdevelopmentandcostmanagementbestpracticesatGerman,Japanese,andU.S.OEMsandsuppliers.Thestudiesshowedthatbestpracticecompaniessimultaneouslymanagequality,cost,andtime(QCT)toachievecustomersatisfactionandprofitabilitygoals.Sincethestudies,wehavefocusedattentiononimplementingwhatwelearnedaboutproductdevelopmentandcostmanagementbestpractices.Duringthe1980s,wewerethefirstorganizationtointroduceToyota’sJust-in-TimeProductionSystempracticestocompaniesinNorthAmericaandtoassistclientteamswithimplementationofthepractices.AutomotiveBestPracticesForumNowthatwehavesolidexperienceimplementingbestpracticesinproductdevelopmentandcostmanagement(includingtargetcosting),wearekickingoffArthurAndersen’slatestknowledgetransferactivitywithintheautomotiveindustry,theAutomotiveBestPracticesForum.TherearenocostsforparticipatingintheForum.Theonlyrequirementisthatyourorganizationiswillingtoperiodicallyparticipateinidentifyingordescribingbestpractices.Participationwillnotrequiresignificanttimeandeffortfromyourpeople.Eachmonthwewillpublishabestpracticesnewsletteronaspecifictopic.Thefirstnewsletterwilladdresseliminationofwasteinproductdevelopmentandwillbemailedshortly.Typically,thenewsletterswillbeaccompaniedbyashortquestionnaire.ThequestionnairesareintendedtoidentifyOEMandsupplierbestpracticesandassessimplementationstatus.Whenquestionnarieresultsidentifycompanieswithbestpractices,wemayvisitthemtodiscusstheirprocesses,andfurthershareourbestK:\AUTOBC\ABPFORUM\e8aee879-e592-48d7-aa46-268cf5a9eb0d.docJanuary1997AutomotiveBestPracticesForumKick-offByPeterC.VanHull,W.ScottBakerAutomotiveBestPracticesForumQuestionnairepracticesinsights.Periodically,questionnaireresultswillbesharedthroughspecialnewsletterswiththosepeoplewhohavecompletedthequestionnaires.TheForumwillprovideameansforsupplierstoidentifyOEMswithbestpracticesandthosethatrequireimprovement.SupplierscanusetheForumtoassesshowOEMsstack-upagainstoneanotherforvariouspractices.Then,wecancommunicateresultstotheOEMsthatareviewedasneedingtoimprove.Atthispoint,youmaybeaskingyourselfwhyArthurAndersenisestablishingtheAutomotiveBestPracticesForum.Theanswerissimple.Duringthelastfiveyears,wehaveinvestedsignificantresourcesinunderstandingspecificbestpracticesandinlearninghowtoimplementthem.But,manycompaniesarenotawareofwhatweknow.Therefore,wedecidedtoshareourknowledgethroughtheForum.TheForumalsoprovidesameanstokeepourandforumparticipantbestpracticesknowledgeup-to-dateovertime.ActionRequestedTokick-offtheAutomotiveBestPracticesForumandnewsletters,weneedinputfromyou.Pleasecompletetheenclosedquestionnairebyperformingthefollowingsteps:1.Selectorwrite-inthetenbestpracticestopicsyouaremostinterestedinlearningabout.2.ProvideusyourinputorideasabouttheForum.3.Identifyexecutivesinyourcompanyyoubelievewouldbeinterestedinthenewsletters,andprovideuswiththeirnames,titles,andaddressessotheycanbeincludedintheForum.Welookforwardtoyourorganization’sparticipationinForumactivities.Ifyouhaveanyquestionsorcomments,pleasecontact:PeterC.VanHull313596-7834313596-7750Faxpeter.c.vanhull@arthurandersen.comArthurAndersenLLPSuite2700500WoodwardAvenueDetroitMI48226-3424©1996ArthurAndersenAndersenWorldwide,SCAllrightsreserved.C:\Data\QCT\Autobp\e8aee879-e592-48d7-aa46-268cf5a9eb0d.doc