The end of a classic production model

New-vehicle development processes up till the late 1980s had two salient characteristics:

• Vehicle design and production facilities were separate processes. The carmaker would start off by designing the car, and only then set to work on designing the production process for making it. This meant that decisions taken at the vehicle design stage would often have to be changed in the light of subsequent tooling developments;
• Corporate functions (design, process engineering, supplier relations, production plants) operated largely in isolation from each other, with each completing its mission then handing the results over to the next function.   

Renault reengineered this organization with two main purposes in mind:

• Products would be developed simultaneously with their manufacturing processes;
• Creativity would be stimulated by means of a project-based organization that encouraged interchange between all personnel involved in the development process.
  

Product-process design

To cut costs, shorten development leadtimes and stimulate innovation, the company must first of all make sure it has all the necessary tools and procedures ready. To do this, Renault has opted for a global product-process design approach, which involves planning the tools and processes that will be used for making the vehicle (paintwork, assembly, etc.) at the same time as designing the vehicle itself. This brings advantages of global vision, anticipation and performance. 

Cross-functional organization

Renault took a pioneering stance to manufacturing organization by adopting a cross-functional management system that dissolved the barriers between functions. This system is based on a matrix organization in which personnel working on new vehicle projects belong to a multidisciplinary project team as well as to their particular specialties. 

This organizational model has cut vehicle development leadtimes by close to one-third:

• 49 months to develop the Clio II, released in 1998;
• 28 months to develop the Clio III, released in 2005.   

Interaction 

The Technocentre was set up to stimulate interaction among design and development personnel. People from all relevant functions (engineering, design, purchasing, manufacturing, etc.) are brought together in project teams, which at certain development phases can grow to 600 people in size. The permanent capacity for immediate interaction brings a substantial boost in efficiency and creativity. Physical location at the same site facilitates interchange and decision-making, to shorten leadtimes and reduce development costs.

Project scheduling

Vehicle development projects are governed by a rigorous structured plan setting targets in terms of quality, costs and delivery times at each stage. 

The schedule is broken down into three main phases.

Package design phase: At this stage the main characteristics of the new vehicle are defined (vehicle size, broad performance levels, etc.).

• A pre-contract is signed, Renault formalizes the basic properties of the new vehicle and project feasibility. A director is appointed, along with key project personnel.
• At the end of the package design phase,  Renault's Management Committee decides on the actual design for the new vehicle, enabling engineers to proceed with detailed design work.  

Detailed design phase: Vehicle outlines, parts and tooling are specified in a process charted by several milestones:

• Contract: Following the vehicle design go-ahead, all departments involved (engineering, purchasing, manufacturing, etc.) commit to economic feasibility, quality and delivery times.
• Design freeze: The design of the new vehicle is set, enabling designers to proceed with detailed drawings of all parts.
• Prototyping: After several digital modeling runs, the first physical prototypes of the full vehicle are produced.    

Setup phase: Two main milestones mark the start and end of this phase:

• Final tooling: Interfaces between parts are set, allowing work to proceed on making the tooling to produce these parts. For Renault, this stage involves massive investments. 
• New vehicle entry into plant: The production process is finalized and volume production can go ahead.
  

Factoring customer expectations into the design process

Renault has developed a specific “V-plan” methodology to ensure that the project never loses sight of customer expectations. The two arms of the V represent the two main methodological phases:

• Downstroke representing rollout, i.e. definition of what is to be done;
• Upstroke representing convergence, i.e. verification of what is done (through digital tests, physical validation, etc.).  

The rollout phase involves six steps:

• Customer expectations: Expectations are probed by surveys, sociological analysis, etc.
• Renault response to customer expectations: Renault defines the properties of the new vehicle (acoustics, roadholding, etc.).
• Functional specifications: Physical values are set for each feature (e.g. noise level in decibels at given engine speed).
• System specifications: Specific system thresholds are set for reaching the overall targets set in the functional specifications.
• Part development: Parts are designed to the system specifications (on acoustics, comfort, etc.).  

The convergence phase breaks down into five steps:

• Verification of component characteristics, on physical prototypes.
• Validation of system specifications.
• Validation of feature specifications.
• Final validation, with engineers evaluating features and giving production go-ahead if the set targets are reached.
• Customer satisfaction, evaluated by surveys after the vehicle is released.   

The V-plan model ensures that corrections can be made early on in the design process. This makes for shorter development leadtimes, higher performance and lower costs.