Automotive Industry Action Group

Thomas JonesBusM 361 Sec. 1

11/29/05

Automotive Industry Action Group(AIAG)

“The Automotive Industry Action Group is a globally recognized organization founded in 1982 by a group of visionary managers from DaimlerChrysler, Ford Motor

Company, and General Motors. The purpose: To provide an open forum where members cooperate in developing and promoting solutions that enhance the prosperity of the automotive industry. AIAG's focus is

to continuously improve business processes and practices involving trading partners throughout the

supply chain.”

Agenda

•Overview

•Brainstorming

•AIAG In-depth

•Exercise

•Reading List

•Bibliography

Overview

•AIAG Origins

•AIAG Initiatives

AIAG Origins1980 - Arthur Anderson highlights the Japanese competitiveness in US auto market - AIAG is formed as a committee in APICS

1981 - The first project teams are formed

1982 - AIAG is officially incorporated - The first bimonthly newsletter (Actionline) is published

AIAG Initiatives

•Open forum

•Increase efficiency

•Training and publications

Open Forum

•Networking opportunities

•Technical assistance

•Non-competitive environment

•Collaboration

Increase Efficiency

•Decrease cost and complexity

•Increase speed to market

•Improve product quality

•Promote employee health and safety

Training and Publications

•Actionline Magazine

•AutoTech Conference

•Training sessions

•Variety of training publications

Brainstorming ExerciseHow could AIAG help our organization?

•Help to increase competitiveness in auto industry•Help train us in certain standards•Allow us a better working relationship with auto makers•Increase our awareness of automotive trends•Help stimulate innovation in our processes•Give us a voice in setting automotive standards

AIAG In-depth

•How to join?

•Who can participate?

•How to participate?

How to Join?•Memberships vary between $600 and $10,000•All employees are members•Must identify a voting representative•Fill out application based on size of company•Contact Customer Service Department to get more info 248-358-3003

What does the voting representative do?

•Will receive notification of meetings

•Will act out any voting interests–Can do this in person or by proxy

•Responsible for communicating info to other company employees.

Who Can Participate?

•AIAG was a US auto maker association

•Now, it is open to all auto makers, their suppliers, and other interested organizations

How to participate in AIAG?Non-members

Non-members may participate in up to 3 AIAG sponsored meetings if the following criteria are met.•The AIAG Membership Department must be contacted first•Non-members may not hold office, vote, receive awards, or have any other privileges that are reserved for members only

How to participate in AIAG?Members

•Board of Directors

•Meetings

•Voting

Board of Directors

•Elected from voting companies

•Between 15 and 25 board members

•Elected for three year terms

Meetings

•Annual meetings•Special meetings•Meeting announcements

Voting

•Fifty members form a quorum

•Each company gets one vote

Examples of AIAG Accomplishments

•IV&I will save the supply chain $255 million annually•AIAG was one of the first associations to become ISO 9001 certified•Has over 1,600 member companies with combined sales of $850 billion•Nearly 90 publications on how to improve your business processes

Exercise

•Rank every department in your organization on a scale of 1 to 5 with 5 being excellent and 1 being poor.

Exercise

•Now take the areas that ranked 3 or less and write some ideas on how AIAG could help that department improve.

Summary

•AIAG sets standards and seeks solutions to critical problems in the automotive industry

•Members of AIAG receive various benefits including networking, improved efficiency, and training.

Where to find more information

•Actionline Magazine

•AIAG Customer Service Department 248-358-3003

•http://www.aiag.org

Bibliography

•AIAG removes roadblocks over origin Tim Moran. Automotive News. Detroit: May 15, 2000.Vol.74, Iss. 5874

•http://www.aiag.org

•http://www.openstandards.net