Optimizing Research For FAW-Volkswagen Audi Brand JIT Logistics

The development of information technology, communication technology, advanced manufacturing technology and the rapid improvement of China automobile market lead to the fierce competition of automobile manufacturers and the personal requirement of automobile and then the deep reformation of China automobile market. Massive manufacturing automobiles could not fulfill the demand of customers and the requirement of market competition. So in order to gain competition advantage, almost all the automobile manufacturers join the development and manufacturing of individualized automobiles.FAW-Volkswagen grows up with the development of China automobile industry and the mature of China automobile market. As the first economically building up modern automobile manufacturer, FAW-Volkswagen understood the importance of individualized automobile in manufacturing and marketing, but due to the immature of technology and the market FAW-Volkswagen did not realized the manufacturing and marketing of individualized automobile. Recent years, with the development of information technology, communication technology, computer technology and the rapid improvement of China automobile market, the economical manufacturing scale had already increased from 150,000 to 300,00 even 600,000 car sets per year. Single product could not fulfill the demand of the economical manufacturing scale. If one automobile manufacturer want to reach the economical manufacturing scale of 600,000 car sets per year, it could not only rely on the release and the promotion of manufacturing, but also possess a abundant product line with multiplex model and large amount of requirements. The foreground and the space of the market make the manufacturing and marketing of individualized automobile come true. So under such circumstance, FAW-Volkswagen started the process optimization facing the future, and individualized automobile is one of the key points. And JIT Logistics is the the key point of individualized automobile.At the first stage, FAW-Volkswagen operated JIT Logistics just for certain purpose: parts with huge volume and less varieties or parts with minor volume and more varieties. With the development of the market and the multiplication of market requirement, more and more automobile models had been imported to China, more and more parts could be manufactured in China. The previous planning could not fulfill the varieties of increasing parts and the demand of increasing product lines.FAW-Volkswagen Audi brand JIT Logistics could be divided into 2 parts: JIT material flow and JIT information flow. JIT material flow could be divided into 3 parts: JIT local parts material flow, internal sequencing local KANBAN parts material flow and internal sequencing CKD KANBAN parts material flow. JIT information flow could be divided into 6 parts: order management information flow, requirement planning information flow, requirement calculating information flow, technical information flow, production controlling information flow and CP7 settlement information flow. JIT information flow goes through all the process of individualized automobiles in FAW-Volkswagen; JIT material flow just goes through a little part of it.The optimizing of FAW-Volkswagen Audi brand JIT Logistics could be divided into 2 stages: the first stage is to optimize the JIT material flow and the second stage is to optimize the JIT information flow. In order to reduce the high cost during the operation of JIT material flow, the corporation could build up a third party Logistics group covering all the Logistics processes of local parts and some CKD parts like customer clearance, business checking, transporting, delivering and sequencing. In order to optimize the processes of JIT information flow, the corporation could improve the capability of disposition, reduce the lead time, increase the precision of forecast, control the fluctuate of demand, reduce the cost of material disposition, eliminate the low stock and high stock, decrease the change of technical files and increase the varieties of JIT parts to decrease average cost.Individualized automobile is one kind of mature automobile sales methods, and widely applied. Most orders are individualize automobiles in these countries and the cost to buy a individualize automobile is even lower than a mass production automobile. And due to the short lead time of Logistics processes, individualize automobiles could attract more customers. But due to the low localized percentage in China, most parts need to be imported from abroad, the lead time of Logistics processes is very long. And at the same time, automobile manufacturers want to decrease the cost during Logistics process by using sea freight instead of air freight.But with the rapid development of automobile industry an economy of China, all the problems for individualized automobiles could be eliminated: first, the quantity of individualized automobiles will increase rapidly; secondly, the varieties of local parts will increase a lot, local purchasing will be available. And at the same time, the promotion of individualized automobiles will improve the development of automobile parts industry, Logistics and the automobile manufacturing industry and then improve the development of automobile industry an economy of China. Due to the rapid globalization, the trend of globalized resource sharing, global purchasing, global manufacturing and global marketing is becoming more and more obviously. The promotion of individualized automobiles must optimize all the processes of automobile supply chain, and then bring improvement to global automobile industry and related industry, even to the development of global economy and all the human beings.