Automotive Industry Gets First Application for Powerway.com e-Commerce Program

Powerway Inc. (Indianapolis, IN) unveiled details of the first application of the new "powerway.com" e-commerce business initiative. Tailored for the automotive industry, the application is a Web-based solution that will automate the Advanced Product Quality Planning (APQP) process and Production Part Approval Process (PPAP), well known sections of the QS-9000 standards.

Coupled with real-time collaboration, the automation of APQP and PPAP is said to significantly improve existing processes for suppliers and OEMs, bringing these benefits: shortened time-to-market, increased focus on core competencies, global synchronization, elimination of non-value-added tasks, and risk reduction.

"Powerway.com solves a major issue facing the automotive industry," states Bob Merlotti, director at Automotive Consulting Group (ACG), a leading industry expert on automotive supply chain dynamics. "In North America alone, approximately 10,000 automotive-related suppliers generate between 2.9 and 4.1 million PPAPs, costing the industry approximately $6.2 billion annually in supply-chain labor costs. A conservative estimate shows a minimum of $3.2 billion in overall savings by implementing an automated Web-based solution to achieve resource reduction, process improvement and efficiency gains."

Powerway.com was developed to simplify and facilitate the APQP process because the requirements are complex, difficult to manage, and costly to implement. Most automotive suppliers are not equipped with automated (or Web-based) systems. And it takes roughly 250–500 hours to create and process the paperwork associated with the average new product PPAP.

Powerway believes its Web-based solution will improve the APQP process, and will allow suppliers "to direct resources that will satisfy the customer, promote early identification of required changes, reduce warranty charge-backs, thus providing a quality product on time at the lowest cost."

"Because so much of the cost to comply with APQP and PPAP requirements is absorbed by the supply chain and vehicle time-to-market is so critical to OEMs, powerway.com presents a win-win value proposition with appeal for the entire automotive industry," says Neil DeKoker, managing director of Original Equipment Suppliers Association (OESA).

Getting Started
The first application of powerway.com gives the auto industry's integrated supply chain and trading partners the ability to create, manage, and distribute PPAP documentation. The documentation is organized and secured in one location — an Internet hub — where the information is available at the speed of the Internet.

Personnel who receive the documents can quickly verify and validate content, without needing valuable engineering and quality professionals to visually inspect each document. In that way, powerway.com resolves three key business issues facing auto manufacturers: improving quality, cutting vehicle time-to-market, and reducing warranty costs.

"Because powerway.com is Web-based and uses a common Web browser interface, it allows OEM or supplier organizations to utilize the technology — throughout the supply chain — without time-consuming and costly system and process standardization," says Mike Campbell, CEO of Powerway. "The solution resolves costly process inefficiencies, improves quality management, shortens product development cycles, and significantly reduces pressures on scarce engineering and IT resources."

Future Development
The next step will be to provide similar B2B performance collaboration solutions for other industries, ranging from aerospace to medical devices. Each powerway.com solution will contain industry-specific or supply-chain specific business process logic encompassing the total product lifecycle: product design, process design, and production, testing, engineering change, and supplier quality.

Powerway Inc., 6919 Hillsdale Ct., Indianapolis, IN 46250, Tel: 800-964-9004 or 317-598-1760; Fax: 317-598-1740.

Edited by Nancy Katz