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Automotive Product Development Process & Product Development Services

OEMs typically do not consider other items, such as revenues and costs for product or feature updates, in their R&D steering approaches. Consequently, such steering is currently not based on a TCO perspective and a holistic business case. Furthermore, the strong focus on material costs can lead to a high number of variants in the product portfolio configuration. These challenges require automotive manufacturers and suppliers to shift their focus in product development capabilities, processes, and operating models from mechanical engineering toward electrical and electronics, software, and data engineering. While the automotive product development process as a whole seems daunting and wrought with complexity, there are steps you can take to ensure a smooth process—and Sterling can help.

There are several benefits of using a conventional production line in the automotive manufacturing industry. One of the prime benefits of the same is that it will help in achieving increased efficiency, and therefore reduced manufacturing costs and higher returns on investment. However, in order to succeed as a manufacturer in this industry or improve your manufacturing, it is important that you have a detailed understanding of the automotive manufacturing process.

Automotive Product Development

A flexible production line or discrete manufacturing is quite similar to a conventional production line. Lastly, a conventional production line helps in creating a better working environment for your employees while enabling better management of workplace stress. This is because when your workers specialize in one particular task, they become more efficient and skilled.

Additionally, they also tend to use less energy and water than other types of production systems. This is the last step in the automotive manufacturing process, wherein you ship your vehicles to dealerships. Thus, today, the new reality that you will need to adapt to as an automotive manufacturer is the inevitable shift to electric cars.

Additionally, even 3D-printed cars and autonomous vehicles will have a major impact on automotive manufacturing. A Detailed Guide on Automotive Manufacturing ProcessAs an automotive manufacturer, you will have a business that is engaged in the manufacturing of automobiles. Thus, the automotive manufacturing is the process of assembling components to build automobiles, trucks, cars, and other motor vehicles. If you are one of those manufacturers who is part of the automotive industry, then you are in for lots of competitiveness, dynamics in the market trends and consumer demands, and complexities in the manufacturing processes. Understanding the process by which automobile product planning and strategic business decisions are reached is a crucial foundation for developing sound approaches to meet the auto sector’s unique challenges related to energy use and climate change.


Such a regulatory shift may offer broad and important social benefits, but less perceived direct value to individual consumers—thus little incentive for the consumer to pay more for the technology and, less chance to recoup the losses. Developing and manufacturing a motor vehicle is a costly endeavor with uncertain paybacks. OEMs typically justify platform and powertrain business cases over a multi-year time horizon in order to meet internal rate of return hurdle rates or level of return on invested capital . Traditionally, OEMs incorporated engineering capabilities based on the collective experience of their engineers and experts with only limited data on customer behavior and product performance in the field.

automotive product development process

The components of a system generally consist of people, hardware (e.g., parts, tools, machines, computers, and facilities), or software (i.e., codes, instructions, programs, databases) and the environment within which it operates. The system also requires operating procedures and organization policies (e.g., documents with goals, requirements, and rules) to implement its processes and get its work done. The system also works under a specified range of environmental and situational conditions (e.g., temperature and humidity conditions, vibrations, magnetic fields, power/traffic flow patterns). The system must be clearly defined in terms of its purpose, functions, and performance capability (i.e., abilities to perform or produce output at specified level in a specified operating environment). Implementing an automotive manufacturing production system like Deskera MRP will help you in tracking income orders, demand planning, shop floor scheduling, and automating several other business processes. A conventional production line is one of the most common types of the automotive production line.

Often, flexible production lines are used in the automotive manufacturing process because they offer several advantages over other production systems. You must ensure that your vehicles are loaded carefully onto trains or trucks and then transported safely to their destination. Based on the distance to be traveled and various other factors, this step of the automotive manufacturing process can take days to weeks to complete. Once the design, development, and product analysis phase of automotive manufacturing is completed, the next step is tooling and equipment preparation. Here, as a manufacturer, you will need to create and source the tools and equipment needed for the mass production of your vehicles. OEMs historically have built powertrain business cases over at least a ten-year time horizon, straddling two or more vehicle programs.

Flexible Production Line

This will help your company in being more competitive in the marketplace while also increasing your ability to meet the demands of your customers. In fact, his ideas have not only impacted automotive manufacturing processes, but also lean manufacturing principles. Additionally, flexible production lines will also help you in reducing production costs because often they require less investment in terms of machinery and equipment.

Additionally, Deskera MRP will give you analytics and insights to help you make better decisions. However, what you must keep in mind while implementing jidoka for your business is that you need to have a clear understanding of what constitutes a defect or problem. This will vary from process to process, and thus it is important that you tailor jidoka implementation accordingly. The Toyota Production System is a world-renowned lean manufacturing system that is implemented across the globe and, in fact, in various industries. For instance, a moving assembly line might have stations that can be reconfigured to accommodate different tasks depending on the vehicle being assembled.

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Any given product program is but one element of a company’s full vehicle portfolio. An automaker’s cycle plan is the resource allocation timeline that compiles the full set of business propositions for every product in the portfolio. Auto companies address product planning activities and development decisions broadly, and increasingly globally, covering all their products and all their markets. A complete cycle plan usually spans 10 to 15 years, but the plan is most detailed for the immediate five years, when the timing of major design efforts and capital investments are well defined. Players shift the steering scope from SOP to life cycle management to enable “design for upgradability” and to enhance the lifetime of the product.

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This cooperation is based on the continuous give and take on both sides and thus the benefit for all parties. While the investment in innovative products results in potential new orders for the supplier, the advantage for the OEM is, apart from risk-sharing, access to new technologies and solutions as well as a stable and competitive supply chain. As explained above, customers involve their suppliers in different phases of the life cycle of their products. Sterling PLM is a NJ-based product development consulting firm that helps engineering companies implement proven processes that govern the design and development of their engineered products. Using Polarion ALM, Sterling offers a regulatory-compliant approach to engineering management that supports collaboration, innovation and visibility across the entire product development lifecycle.

automotive product development process

Optional features and accessories can change relevant vehicle parameters such as weight, rolling resistance and aerodynamics which may result in a change in fuel or energy consumption and CO₂ values. Vehicle loading, topography, weather and traffic conditions, as well as individual driving styles, can all affect the actual fuel consumption, energy consumption, electrical range, and CO₂ emissions of a car. Safety regulations for automotive manufacturing include requirements for machine guards, personal protective equipment, safe handling of hazardous materials, and proper storage of materials. However, the risk of just-in-time production is that any disruptions in the supply chain can cause production delays. Additionally, to implement it, you will need a significant up-front investment in equipment and training for workers.

How can Deskera Help You with the Automotive Manufacturing Process?

In fact, you should also implement an automotive manufacturing system like Deskera MRP. This is because it is used to create steel, a solid and durable sheet metal that is essential for the construction of the body parts of your vehicles. The primary purpose of these tests is to ensure that your vehicles are meeting all the safety and performance standards.

automotive product development process

As compared to traditional petrol or diesel cars, electric vehicles will have a smaller environmental footprint. Thus, this will put pressure on automotive manufacturers like you to adopt green manufacturing into their business. The first use case takes advantage of advanced simulation techniques to improve multiphysics simulations via surrogate models or virtual testing with an AI-based driver in the loop. The second use case involves data-driven development based on a state-of-the-art big-data architecture.

Additionally, it can also be used to identify issues in the production processes, which, when addressed, will ensure its prevention in the future. The assembly line methods of Ford Motor were first put into practice at the Highland Park, Michigan, manufacturing plant in 1913. As compared to the previous techniques, much higher production levels were made possible through this moving assembly line. One of the primary advantages of this type of production line is that it helps in increasing efficiency and productivity. This is because flexible production lines allow for a greater degree of customization.

Five ways to master automotive R&D challenges

What you must keep in mind is that in the automotive manufacturing process, there are several benefits of lean manufacturing. One of the primary benefits is that it will help you reduce waste and improve efficiency. With additional analysis and communication for and by the industry, investment community and public policy makers, the risks and costs of this cross road may be minimized and properly accounted for. Vehicle programs, in turn, take on the cost of these powertrain programs as they are allocated over the total unit volumes incorporated into the vehicle platform business cases. OEMs, rationally, design and engineer engine and transmission families to be used across as many vehicle platforms and nameplates to allocate the powertrain costs and market risks across as many units, market segments and vehicle designs as possible.

In the earliest part of the design phase, feasibility studies and risk analysis can be carried out to evaluate new concepts. The intention is to carry out fast evaluations to identify risks and problem areas early.Different design solutions can be considered, and the effect of design changes can be evaluated. Cesonia as an open application technology platform enables secure, efficient and data-driven collaboration across company boundaries.

Thus, considering the competitive marketplace of today which requires manufacturers to be able to respond quickly to changing market conditions and customer demands, a modular production line will be an ideal solution for you. Lastly, a flexible production line will help to improve communication and coordination within your company. It will allow your different departments to work together more closely, which in turn will lead to a more efficient production process. After the vehicles are built, they will need to undergo a series of safety tests and quality checks before you can sell them to dealers or customers.

The 1960s – “Muscle cars’ ‘ like the Ford Mustang and Chevrolet Camaro become hugely popular as a new generation of American consumers comes of age. In the second step, players need to prioritize their efforts and set up a transformation office to drive change. Requirements for change include conducting constant reviews, adjusting objectives as necessary, and tracking target achievements. “Rewiring car electronics and software architecture for the ‘Roaring 2020s,’” McKinsey, August 4, 2021. Design validation means establishing by objective evidence that product specifications conform to user needs and intended use.

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