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Case Study General Motors: The CAD/CAM/ CAE Journey - D Sirisha The case examines the reasons behind General Motors implementing Computer Aided Design/Computer Aided Manufacturing/Computer Aided Engineering (CAD/CAM/CAE) tools in the 1990s. It discusses in detail the concept of CAD/CAM/CAE and the benefits associated with the same. The case looks at how General Motors adopted these `New Age' manufacturing technologies and how it benefitted from them. The savings are tremendous in time and material. The engineering resourcesboth budget and peoplefreed up from the productivity gains are being reapplied to bring out more new models more quickly. - Jay Wetzel, Vice-President and General Manager, GM Technical Center, commenting on the benefits derived from CAD/CAM/CAE tools, in 2001. Introduction With earnings of US$1.5 bn on sales of US$177.3 bn, US-based General Motors (GM) was clearly the world's largest vehicle manufacturer of cars and trucks. In 2001, the company set industry sales records for truck and Sport Utility Vehicles (SUVs) in its largest marketthe US. GM sold more than 1 million SUVs and more than 8.5 million cars and trucks, accounting for 15.1% of the world vehicle market. GM also had the credit of selling more full size pick-up trucks than any other manufacturer in the world since 1978. The company had approximately 362,000 employees all over the world. Table I: GM Plant Locations Continent North America United States, Canada, Mexico. Albania, Austria, Belgium, Bosnia-Herzegovina, Bulgaria, Croatia, Czech Republic and Slovak Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Mercedonia, Netherlands, Norway, Poland, Portugal, Romania, Russian Federation and the newly independent states, Slovenia, Spain, Sweden, Switzerland, Turkey, United Kingdom, Yugoslavia. Argentina, Brazil, Chile, Columbia, Ecuador, Paraguay, Peru, Uruguay, Venezuela. Australia, China, India, Indonesia, Japan, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan, Thailand. Africa, Egypt, Israel, Kenya, Mideast, Nigeria, South Africa, Tunisia, Turkey. Countries

Europe

Latin America Asia Pacific Africa-Mideast

Source: www.gm.com

Established in 1908, GM had manufacturing operations in about 30 countries. Its products were sold in more than 200 countries, which included major markets such

as North America, Europe, Asia-Pacific, Latin America, Africa and the Mid-East. GM was also the owner of one of the world's largest financial services companyGeneral Motors Acceptance Corporation (GMAC) which offered automotive, mortgage and business financing and insurance services. GM had an extensive network of manufacturing plants in about 60 countries (Refer Table I). Since the US was the company's largest market, a majority of its products were manufactured in the US plants. GM's popular cars and trucks include the Chevrolet, Pontiac, Buick, Oldsmobile, Cadillac, GMC, Saturn, Hummer, Saab, Opel, Vauxhall and Holden. The company marketed its parts and accessories through GM Service Parts Operations under the brands of GM, GM Goodwrench and ACDelco. GM also had its presence in vehicle communications and information services segments (Refer Exhibit I for GM's business operations) through OnStar. OnStar was an industry leader offering services like personalized assistance; hands-free, voice-activated access to cellular phones and Internet-based information. These services were available on many of the company's cars and trucks. OnStar was also used in some vehicles of Lexus (US), Acura (US) and Subaru (Japan). Table II: GM Plant Profile Powertrain (Engine & Transmission) (53 plants) Metal Fabrication (40 plants) Assembly (67 plants) Casting Machining Powertrain Assembly Stamping Die Manufacturing Body Shop Painting General Assembly Source: www.emw.edu Hughes Electronics Corp., GM Locomotive Group and Allison Transmission Division were GM's major subsidiaries. To facilitate growth across the world, GM had strategic alliances with Fuji Heavy Industries Ltd., Suzuki Motor Corp., Fiat Auto SpA and Isuzu Motors Ltd. It also had vehicle ventures with Toyota Motor Corp. and Renault SA, and technical collaborations with Toyota Motor Corp. and Honda Motor Co. GM managed to build a huge loyal customer base over the decades and went from strength to strength, retaining its world leader crown (Refer Exhibit II for GM's financials). Exhibit I: General Motors Division Profile Automotive General Motors Automotive: GM North America (GMNA), GM Europe (GME), GM Latin America/Africa/Mideast (GMLAAM), GM Asia Pacific (GMAP) GM Locomotive Group Allison Transmission Division GM Defense GM Service Parts Operations Communications Services Hughes Electronics Corp.

Financing and Insurance GM Acceptance Corp. (GMAC) Operations GMAC/MIC (Motor Insurance Corp.) Other Operations Source: www.gm.com OnStar

GM's Manufacturing Inefficiencies The first cars manufactured were constructed individually and a single person assembled all the parts together. However, with the advent of the conveyor-belt based assembly line technique in 1913-14 (at a Ford plant), car manufacturing became much more efficient. Under this technique, a car moved along a belt as it was being built. Instead of all workers working on a single car, they added parts to the car as it moved along the belt. This made the manufacturing process faster and cheaper. Exhibit II: General Motors Key Financials (in $ mn) 2001 Automotive, Communication Services and Other Operations Total net sales and revenues Selling, general and administrative expenses Total costs and expenses Interest expense Net expense from transactions with financing and ins. operations Income (loss) from continuing operations before income taxes and minority interests Income tax (benefit) expense Equity income (loss) and minority interests Income (loss) from continuing operations Income from discontinued operations Net Income (Loss) Financing and Insurance Operations Total revenues Interest expense Depreciation and amortization expense Operating and other expenses Provisions for financing and insurance losses Total costs and expenses Net income from transactions with automotive, communication services and other services Income before income tax and minority interests Equity income (loss) and minority interests Net income finance and insurance operations Source: www.gm.com GM also adopted the assembly line technique. The company had 160 plants across the world and more than 300,000 employees. The manufacturing process was categorized into powertrain1, metal fabrication and assembly (Refer Table II). However, GM's cost of production in terms of time and labor was more than any other automakers in the world. The company's internal problems had reportedly resulted in the longest vehicle development process times, slow response to market trends and `dull products'. Toyota's (Japan) time-to-market was twice that of GM throughout the 1980s and early 1990s. Ford Motor Co., which was half of GM in size, was believed to be much more productive (Refer Figure I). GM reportedly used outdated procedures in many of its production processes. For instance, an assembly plant in Canada followed a manual, repetitive procedure for loading tires on the vehicles. The tire assembly process started at a station where tires were manually loaded on a conveyor. Based on the car being manufactured, -435 1038 -70 1768 -682 950 -20 1613 -308 951 -26 1534 25769 7839 5857 7106 2527 23328 24005 8737 5982 5805 1580 22104 20451 6922 5445 4595 1286 18248 -1358 -270 -79 -1167 -1167 2839 4581 1443 -299 2839 6536 2167 -327 4042 426 4468 151491 160627 156107 135620 138303 134111 151663 154549 148435 751 435 815 682 828 308 2000 1999

the line operator was informed which tire to be loaded on the conveyor. After the tires reached the assembly stations, they were matched to the rims, inflated, balanced and assembled to the vehicle. This procedure was extremely repetitive, and probability of errors was high. If an error occurred, the assembly line had to be stopped for a few minutes to load the correct tires. Louis Lajoie, systems manager at the plant explained, "With an assembly cycle time of 80 seconds-per-vehicle, we could have built two or three cars in the time it was taking to fix the problem. This resulted in a great deal of unnecessary downtime and expense." In the early 1990s, GM took various steps to improve its manufacturing efficiencies including the adoption of flexible manufacturing systems, labor rationalization and cutting down money-losing plants. However, according to analysts, there was no coordination between the design, engineering and manufacturing functions of the company. These functions were spread across the company's five automobile divisions. The company felt that its production process was excessively long. Designers and engineers seemed to be duplicating their efforts as a vehicle moved from the concept to the production stage. Due to the long and complex process, the company was also not able to make modifications at a later stage. Bob Lutz, ViceChairman, GM Product Development, said, "Our process has been so sequential that by the time we've got a final product into the product clinics and found out it's not doing so well, it was really too late to change."2 The lack of coordination between the various manufacturing functions resulted in long vehicle development time and assembly times and slow response to market requirements. Thus, despite being the world's largest vehicle manufacturer, GM earned the dubious reputation of being one of the most inefficient automakers. According to an analyst, "A crippling strike that shut down nearly all of its assembly plants finally forced General Motors to consider one simple fact. Inefficiency is the enemy, and GM is the most inefficient automaker on the planet." 3 To overcome these problems and to survive in the intensely competitive global automobile industry, GM realized it would have to replace its manual, paper-based design process with math-based electronic systems. Jack Smith, who took over as the CEO in the early 1990s, initiated a restructuring program to increase the coordination between the different functions. GM also adopted various new age manufacturing techniques, which drastically reduced its Vehicle Development Process (VDP) times, time-to-market and costs. About CAD/CAM/CAE By the late 1980s, automation and information technology at the shop-floor level had made manufacturing processes much simpler. With increasing competition, companies in the manufacturing industry were looking at ways to improve productivity, save time, reduce costs and increase customer satisfaction. The birth of Computer Aided Design, Manufacturing, and Engineering (CAD/CAM/CAE) systems helped accelerate the automation in the manufacturing industry and revolutionized many difficult fields. The term `CAD/CAM' refers to the application of computers in manufacturingfrom the drawing stage to the production, to the machine, to the assembly shop, to the quality control department and to the finished parts store. In a CAD/CAM system, individual functions in design and manufacture are computerized and integrated through a shared database. The system enables a user to interact with the computer through a graphics terminal and define a design configuration, analyze the structure and the mechanical behavior of the product involved. The system also enables model testing and produces engineering drawings automatically. Production personnel could then use the geometric description to develop Numerically Controlled (NC) programs for machines using CAM. They can also determine process plans, instruct robots to handle tools and workpieces, and schedule plant operation. With all these features, CAD/CAM became a powerful tool in designing and producing products. The manufacturers of food products, tobacco, glass products, textile mill products,

textile products, wood products, petroleum and coal products, furniture, and leather products initially adopted CAD/CAM systems for a wide variety of applications such as product design, plant maintenance, and plant engineering. However, the automobile industry emerged as one of the largest users of these New Age manufacturing technologies. CAD/CAM became immensely popular in the automobile industry because of their ability to save time in terms of product development, which was otherwise a highly time-consuming process. In traditional automotive development, clay models were built which were then translated into engineering designs. After a lengthy review procedure, a hardware prototype was built and tested. The deficiencies were recorded and then relayed back to the engineering design. The mock-up had to be rebuilt and tested. To achieve satisfactory performance, many such build-and-break iterations were required. This meant huge investments. Each hand-built mock-up took months of construction time and required an investment of US$300,000 to US$500,000. In addition, automakers had to invest millions of dollars for actual testing in labs and test tracks. Since the hardware prototype was not created using the actual production process, the performance did not reflect the behavior of the actual product. Many parts had to be redesigned, as it was difficult to determine loads and stress levels accurately. Similarly, as the sources of some specific problems could not be traced, the solutions to the problems were on a trial-and-error basis. Though these solutions solved the specific problem, they did not blend with the overall design of the vehicle. Further, some problems could not be detected until the production stage (Refer Exhibit III for differences in the traditional development and virtual prototyping processes). Another reason why the automobile industry embraced such technologies was issues related to the surfacing and aesthetics of vehicles, which are very important for a manufacturer. Initially, computer graphics could handle only lines, circles, regular cubes and flat surfaces. However, automobile design had much more than lines and curves. This need resulted in the development of advanced CAD software that offered `Body-in-White4' templates as a part of the surfacing component. Before the introduction of these templates, the design engineer had to build construction elements, add surfaces to these elements, and also modify the end result in accordance with technological and manufacturing constraints. With the Body-in-White template, the design engineer had to define the design and manufacturing specifications for the new automobile. The template automatically generated high quality surfaces and skins that complied with the specification provided. Over the years, CAD/CAM software have started offering high quality realistic views of automotive designs. They can handle mechanical design issues including fit, clearances, stress, strain, heat and vibration. As a result, designers could position parts relative to other parts taking into account the various constraints and dimensions that defined the design intent. In addition, design changes in one part passed through the entire assembly and updated the other parts and subassembly positions. This unique functionality enabled the designer to work in a `top-down-tobottom-up' approach, starting with a product structure. Designers were able to create more explicit designs of subassemblies. The whole process resulted in a complete electronic `mock-up' of the assembly. Designers could view the parts, assembly relations, constraints, and also the part and assembly-level properties with different densities specified for each part. The assemblies could be animated and viewed in motion. The lengths of individual parts could be changed during animation and the effect of these changes on the assembly could be recorded. As a result, vehicle models that took 82 days could now be designed in seven days. The design iterations that took a month, could now be done in a day with the help of the software. The evolution of CAD/CAM systems also reduced costs for the manufacturer. CAD/CAM software has unique abilities such as advanced surfacing 5 and advanced solid modeling6 components, robust manufacturing capabilities and Product Data Management (PDM). Some of the early adopters of CAD/CAM in the automobile industry were Ford Motor Co., Nissan and Toyota. Ford used CAD/CAM for the first time, to design an engine

(Ford 2.5 liter, 24-valve Duratec V6 engine). The company called it the `modular engine' as it could be modified readily to handle different applications. The engine was used in its Contour, Mercury Mystique, and Mercury Cougar models. Ford saved about US$40 mn in engineering expenses and more than US$1 bn in manufacturing. Nissan used CAD/CAM for developing improved Anti-Lock Braking Systems (ABS), which was used in its different models. Before the evolution of CAD/CAM/CAE, companies in the automotive industry competed on innovationstyling, engineering, economies of scale, and operating costs. However, the focus shifted to leveraging CAD/CAM/CAE for process change and business improvement. Inspired by the positive experiences of such automakers, GM also decided to adopt these technologies. It also wanted to put to rest the criticisms regarding its manufacturing inefficiencies. GM - Using CAD/CAM/CAE In 1996, GM initiated a program to substantially reduce its VDP time from 42 months to 24 months. In the same year, GM entered into an agreement with Unigraphics Solutions7 to use its CAD/CAM/CAE software Unigraphics. In 1999, GM signed a three-year with the company as a follow-up to the 1996 agreement. The agreement included the endorsement of Unigraphics' Internet-centric PDM application, iMAN8. The new US$139 mn software and services contract was believed to be the world's largest collaborative engineering network. The new software enabled GM's worldwide product teams to simultaneously access a lot of digital vehicle information. The global CAD/CAM system was used to maintain consistent processes and integrate various systems. The new system also helped eliminate redundancy, adopt best practices, decrease training costs, and offer more reliable technology. GM used the new system to model large, complex assemblies as parametrically controlled systems9. In the Unigraphics software suite, this functionality was enabled with the help of the UGWAVE technology. UGWAVE allowed GM to expand its CAD/CAM/CAE functionality and reduce vehicle development time. Ron Debrabant, Director (CAD/CAM Integration and Design Process), GM, said, "GM has worked hand-in-hand with UGS to define its engineers' needs regarding knowledgebased tools and digital math models. They met our needs and delivered value in both these areas with UGWAVE technology. This software will enable GM to implement a total systems engineering approach to vehicle design and significantly reduce the time it takes to design the entire vehicle. GM's process for die design and manufacturing is one area where the entire company has seen dramatic gains using UGWAVE." In September 1999, GM completed upgrading its CAD/CAM and PDM software in all its 9,200 engineering workstations. This helped GM and its global suppliers follow a total systems engineering approach to vehicle design, which significantly reduced the design process time. Unigraphics allowed sharing and updating of data and files to all the design teams, simultaneously around the world. This made GM one of the few automakers who synchronized files in `real' time on vehicle development process. Gene Consolo, Director (Engineering Operations) GM said, "We are using an integrated portfolio of computer math-based tools across the company, around the world and with our supplier community to further reduce our product development cycle (which stands) at 24 months today." Analysts felt that a single, integrated data management and CAD/CAM/CAE system gave GM competitive advantage over other automotive Original Equipment Manufacturers. GM used Design Studio Powerwall, a huge wall-sized visualization system for viewing and manipulating full-scale digital vehicle assemblies. The Diesel Division of GM of Canada Ltd. (DDGM) reaped huge benefits from the implementation of CAD/CAM. The division used large-scale immersive display systems and reduced the development time of Light Armored Vehicles (LAV) 10. The display system allowed design engineers to view data produced by the division's CAD/CAE processes. The CAD/CAM system was more important for this product since the production volume was low and physical prototype mode was not

advisable. Initially, DDGM viewed the models on the standard 2D monitors. However, as the product was large, the 2D format did not seem to help. In 1999, DDGM entered into an alliance with the National Research Council of Canada, Fakespace Systems Inc., SGI Canada, and the University of Western Ontario to build a Virtual Environment Technologies Center (VETC) in Ontario. Fakespace designed a variety of projected display systems for VETC, including a 10 ft x 10 ft Cave, an 8 ft x 24 ft Immersive WorkWall11, and two 6 ft x 8 ft WorkWalls. The VETC dramatically reduced the design review time at DDGM. Before the establishment of VETC, 2D drafting views of the models (created by Unigraphics) were made and hung in a meeting room for review, to track design problems and change the Unigraphics layout. However, as the production was started, this process was expensive and delayed product delivery. At VETC, fullscale stereoscopic models could be reviewed in a theater setting. This reduced the CAD development time since 2D views were not required. This enabled design engineers to record any manufacturing, mechanical and maintenance issues and correct problems before the start of the manufacturing process. Another example of the successful adoption of CAD/CAM was at the GM Metal Fabricating Division, which designed die stamping12 tools. Traditionally, the division started the design process with full-size car body blueprints and product drawings hung on a wall. For instance, a roof outer flange13 die involved 35 paper drawings each 20 ft long and numerous hand calculations. The stamping engineers adopted Unigraphics to design stamping tools, design the castings to make those tools and generate the associated machining programs. When a new die was made, the stamping engineer started by examining about five dies produced in the traditional way. The technical library of the division had the feedback for these dies from die shops and stamping plants about the construction process or about producing parts for previous models from those stamping tools. The engineers then used the feedback to create standard design geometries with new part designs. The 20 ft drawings could now be displayed on any of the division's 275 computer monitors of 17 inches. The die engineer could also cut any section from the model for viewing from different angles. An engineer of the division said, "When you're designing solid models, you're actually viewing the object, not a representation of the object. It can be articulated, moved around, sectioned, and opened up." The solid model had all the information including the thickness of every part. Thickness was the offset for the cutter path during the manufacture of the upper and lower dies. Unigraphics also calculated the weight of the model to estimate the iron required to prepare the die mold. Earlier, engineers had to manually calculate the weight, which was a complicated process. The formability14 of the die and the die stamping process was tested using the finite element analysis15 software. The solid model was then transmitted to tooling centers where Unigraphics CAM module generated cutter paths for cutting the finished castings. Reaping the Benefits GM claimed to have saved hundreds of millions of dollars with the CAD/CAM/CAE systems. The new systems allowed the company to launch innovative new cars and trucks in the market faster. The company successfully reduced its VDP time to 24 months. GM aimed at reducing the VDP time to 18 months. The company reported a 13% improvement in engineering productivity in 1997 and expected an additional 30% improvement by 2000. According to Jay Wetzel, the CAD/CAM/CAE tools enabled the company to save costs by reducing the number of physical validation builds. Cost savings were estimated at 30% during development and 10% during validation. The tools also enabled the company to reduce engineering charges by 50% and lead time 16 by about 50% for production tooling. Wetzel explained, "On just one global GM vehicle development program, life cycle savings are forecast to reach $200 mn. Discovering issues in the virtual world rather than during physical builds allows us

to avoid expensive tooling costs due to engineering changes late in the process." By 1999, GM had derived about US$1 bn worth of savings from the implementation of CAD/CAM/CAE. The company aimed at having the best vehicle development process in the industry. It claimed to be the only automotive OEM using a common CAD/CAM and PDM strategy across its body, chassis and powertrain product development and manufacturing organizations. Apart from the reduced time-tomarket and cost savings, CAD/CAM also enabled the company reduce warranty costs. At GM's metal fabrication division, CAD/CAM helped create `incredibly accurate' dies compared to the manual multistep process. The company said that the software enabled it to add `more exotic sculpture to the vehicles'. Exotic cutlines could be used between fenders and doors, front doors and rear doors, fenders and the hood. According to an engineer, "We can put those cutlines in, where in the past, everything wanted to be square and straight because it was simpler to match up. It doesn't matter anymore." Apart from time and cost savings, the division also gained physical space. In the old model, the division needed 35,000 ft to store all the engineering drawings for dies. And, these drawings had to be stored for 10 years until a part was produced. In the new model, the division needed only 500 ft, as all the drawings were online. However, more than the physical gains GM derived from its New Age manufacturing practices, what the company seemed to be happy the most about were the positive reports from industry observers. Though it had a long way to go before it could shed the tag of being one of the most inefficient automakers, the CAD/CAM initiatives seemed to have laid a strong foundation for GM's journey towards manufacturing excellence. The author is a Faculty Associate at ICMR. ICFAI Center for Management Research (ICMR), an affiliate of ICFAI. All Rights Reserved. For accessing and procuring the case study log on to www.ecch.cranfield.ac.uk. Also called a drivetrain, this term describes all of a vehicle's components that produce power and transmit power to the wheelsthe engine, transmission, transfer case, driveshafts, differentials, axle shafts and wheel hubs.
1 2

www.cardesignnews.com, January 28, 2001. www.edmunds.com, January 25, 2001.

A `body-in-white' is a complete body of the vehicle minus the interior and engine/drivetrain components.
4

Advanced Surfacing provides techniques for creating 2-Dimensional geometry (a surface or face) by interpolating a sequence of 1-Dimensional geometry (edges, coedges or wires), arbitrarily positioned in model space.
5

Solid Model describes both the exterior and interior of an individual part or assembly in 3-D. Parts represented as solids have volume. They can also have weight and mass if density is given. Solid modeling is the development of 3-D models that are topologically complete (no missing faces or gaps) on a CAD system that is specifically designed to modify, store and display such models.
6

Unigraphics developed and provided CAD/CAM/CAE software solutions and related services to improve product development processes. In October 2001, it was merged with EDS, the leading US-based information technology (IT) services
7

company. iMAN is an Internet-enabled product data management system that helps companies improve their product development processes by organizing, managing and communicating information throughout the product life cycle.
8

In a parametrically controlled system, a single modification in a component is automatically propagated throughout the assembly.
9

LAVs are 6-8 wheeled specialized vehicles produced for use by military and law enforcement organizations across the world.
10

Immersive WorkWall is a large-scale visualization environment tool that enables group viewing. WorkWall is a wide, flat, solid screen, flat wall display system. There are also WorkRooms, which are 10 ft cubicle structures that display 3D projected images on their walls and floor. Cave is also a cubic environment with projections on three walls and the floor.
11

Die stamping (also known as machine stamping) is a process in which sheet metal is cut and shaped between two dies, forming a pattern in relief. Two steel dies are used, the male die has the design in cameo (protruding); the female die has the design hollowed out. The male die is put on top of the metal, the female die is put on the underside of the metal. The press is forcefully brought down onto the dies and metal, forcing the metal into the shape of the mold.
12

A flange is a rib or rim for strength, for guiding, or for attachment of two objects and to prevent corner breaking.
13 14

The relative ease with which a metal can be shaped.

A powerful analysis feature of a CAD system. In this method, a body is represented by an assemblage of subdivisions called finite elements. These elements called nodes are interconnected at joints. Simple functions are chosen to depict the variation of desired function within the element. In this way, the entire object can be analyzed for desired characteristics such as stress, strain and heat.
15

The time between recognizing the need to place an order and the order being made available from stock.
16

References

1. Teresko John, The Auto Industry's New Race, www.industryweek.com, May 19, 1998. 2. Schmitz Barbara, Automotive Design Races Ahead, Computer Aided Engineering, May 1998. 3. GM Saves Millions, Cuts Development Time with Computer Tools, www.gm.com, October 9, 1998. 4. CAD/CAM Updates Help Reduce GM Vehicle Development Times, www.gm.com, July 7, 1999. 5. Gould Lawrence S, GM's Metal Fabricating Division Stamps its Approval of CAD/CAM, The Automotive Manufacturing & Production, July 1999. 6. General Motors Completes Worldwide Implementation of the Latest

Unigraphics Solutions Integrated CAD/CAM and PDM Software Suites, www.ugsolutions.com, September 20, 1999. 7. Immersive Visualization for Vehicle Design, www.fakespacesystems.com, May 2000. 8. Unigraphics and GM Sign $139 mn License Agreement, www.nasatech.com, June 28, 2000. 9. Christian Wardlaw, The Ultimate Reorganization of General Motors, www.edmunds.com, January 25, 2001. 10. Vasilash Gary S, Better, Faster and Simulated, Automotive Manufacturing & Production, January 2001. 11. Phelan Jim, GM Expects to Double Design Productivity and Increase Product Development Workflow by 70%, www.industry.java.sun.com, May 10, 2001. 12. Stevens Tim, Factories of the Future: Integrated Product Development, www.industryweek.com, January 6, 2002. 13. Gould Lawrence S, What Makes Automotive CAD/CAM Systems So Special? www.autofieldguide.com. 14. Smarter to Market with Functional Virtual Prototyping, www.adams.com. Questions for discussion 1. Comment on the circumstances that led GM to adopt CAD/CAM solutions at its plants. Why do you think the company had not adopted these tools earlier? 2. Analyze the evolution of CAD/CAM/CAE tools and explain their importance in the manufacturing industry in general and the automobile industry in particular. Briefly comment on the benefits associated with the adoption of such practices for a company of GM's stature. 3. Discuss critically GM's methodology in the implementation of CAD/CAM/CAE in its product development process. Comment on the changes introduced at the GM Canada Diesel Division and the GM Metal Fabricating Division. 4. How far have CAD/CAM/CAE helped GM realize its manufacturing goals? What were the benefits derived by the company through these initiatives? Case ANALYSIS General Motors: The Cad/Cam/Cae Journey - Dr. KS Srinivasa Rao Automation and information technology at the shop floor level made manufacturing processes much simpler by the late 1980s. With increasing competition, companies in the manufacturing industry were trying to improve productivity, save time, reduce costs and increase customer satisfaction. `CAD/CAM' refers to the application of computers in manufacturingfrom the drawing stage to the production, to the machine, to the assembly shop, to the quality control department and to the finished parts store. In a CAD/CAM system, individual functions in design and manufacture are

computerized and integrated through a shared database. The system also enables model testing and produces engineering drawings automatically. With all these features, CAD/CAM became a powerful tool in designing and producing products. The manufacturers of food products, tobacco, glass products, textile mill products, textile products, wood products, petroleum and coal products, furniture, and leather products initially adopted CAD/CAM systems for a wide variety of applications such as product design, plant maintenance, and plant engineering. The automobile industry was one of the largest users of these tools. In traditional automotive development, clay models were built which were then translated into engineering designs. After a lengthy review procedure, a hardware prototype was built and tested. CAD/CAM software could easily handle mechanical design issues including fit, clearances, stress, strain, heat and vibration. In addition, design changes in one part passed through the entire assembly and updated the other parts and subassembly positions. The whole process resulted in a complete electronic `mock-up' of the assembly. As a result, vehicle models that took 82 days could now be designed in seven days. The evolution of CAD/CAM systems also reduced costs for the manufacturer. Established in 1908, the US-based General Motors (GM) was clearly the world's largest vehicle manufacturer of cars and trucks, with manufacturing operations in about 30 countries. GM had an extensive network of manufacturing plants in about 60 countries. It also had vehicle ventures with Toyota Motor Corp. and Renault SA, and technical collaborations with Toyota Motor Corp. and Honda Motor Co. In 2001, the company set industry sales records for truck and Sport Utility Vehicles (SUVs) in its largest market, the US. However, GM's cost of production in terms of time and labor was more than any other automaker in the world. The company's internal problems had reportedly resulted in the longest vehicle development process times and slow response to market trends. The tire assembly process started at a station where tires were manually loaded on a conveyor. Based on the car being manufactured, the line operator was informed which tire to be loaded on the conveyor. The company felt that its production process was excessively long. The lack of coordination between various manufacturing functions resulted in long vehicle development time and assembly times and slow response to market requirements. In the year 1996, GM entered into an agreement with Unigraphics Solutions to use its CAD/CAM/CAE software Unigraphics. The new system helped eliminate redundancy, adopt best practices, decrease training costs, reduce vehicle development time and offer more reliable technology. In September 1999, GM completed upgrading its CAD/CAM and PDM software in all its 9,200 engineering workstations. This made GM one of the few automakers who synchronized files in `real' time on vehicle development process. GM used Design Studio Powerwall, a huge wall-sized visualization system for viewing and manipulating full-scale digital vehicle assemblies. The Diesel Division of GM (DDGM) of Canada Ltd. used largescale immersive display systems and reduced the development time of Light Armored Vehicles (LAVs). The CAD/CAM system was more important for this product since the production volume was low and physical prototype mode was not advisable. This reduced the development time since 2D views were not required. At GM's Metal Fabricating Division, the design process started with full-size car body blueprints and product drawings being hung on a wall. The stamping engineers adopted Unigraphics to design stamping tools, design the castings to make those tools and generate the associated machining programs. The technical library of the division got the feedback for these dies from die shops and stamping plants about the construction process or about producing parts for previous models from those stamping tools. The engineers then used the feedback to create standard design geometries with new part designs. The die engineer could also cut any section from the model for viewing from different angles. The formability of the die and die stamping process was tested using the finite element analysis software. The solid model was then transmitted to tooling centers where Unigraphics CAM module generated cutter paths for cutting the finished castings. GM saved hundreds of millions of dollars with the CAD/CAM/CAE systems. The new systems allowed the company to launch innovative new cars and trucks in the

market faster. The company successfully reduced its VDP time to 24 months. According to Jay Wetzel, Vice-President and General Manager, GM Technical Center, the CAD/CAM/CAE tools enabled the company to save costs by reducing the number of physical validation builds. The tools also enabled the company to reduce engineering charges by 50% and lead-time by about 50% for production tooling. The company aimed at having the best vehicle development process in the industry. Apart from the reduced time-to-market and cost savings, CAD/CAM also enabled the company reduce warranty costs. Apart from time and cost savings, the company also gained physical space. In the old model, it requires 35,000 ft to store all the engineering drawings for dies. The CAD/CAM initiatives indeed seemed to have laid a strong foundation for GM's journey towards manufacturing excellence. - The author is an Assistant Professor in the Area of Quantitative Management at the Nirma Institute of Management, Ahmedabad. Reference # 14-03-04-06 ICFAI Press. All Rights Reserved.