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Vehicle refinement: Purpose and targets C HAPTER 20.1
35000
30000
25000
Cost on the road (£) 20000 1979 Vauxhall Royale
1989 Vauxhall Senator 2.5i
1999 Omega 2.5 V6 CD
15000
1999 Vauxhall VectraV6 GSi
10000
5000
0
1975 1980 1985 1990 1995 2000
Year
Fig. 20.1-5 Comparing the cost of 99MY vehicles with the historic costs of equivalent 79MY and 89MY, scaled according to the UK Retail
Price Index.
Data sources: References a–d in Table 20.1-1 and www.bizednet.bris.ac.uk – University of Bristol.
having to meet noise drive-by levels of 74 dBA com- A similar trend can be shown with Ford, one of Vauxhall’s
pared with 82 dBA in 1979 (8 dBA is a significant drop traditional competitors. Data for six-cylinder executive
in noise, equivalent to almost a halving in loudness). (small) cars manufactured by Ford (broadly competing
Also 99MY vehicles are generally better equipped vehicles to the Senator/Omega/Vectra) are shown in
than their predecessors (air conditioning, satellite Table 20.1-2 and these show similar trends to the data for
navigation, CD players, etc.). the Vauxhall cars shown in Table 20.1-1.
3. The price of many new cars in the UK dropped by
10–15% in mid-2000 due to action by the UK Gov-
ernment and pressure from consumers. This makes 20.1.6 Refinement targets
the results discussed in (2) even more startling.
4. The consumer looking for a six-cylinder Vauxhall car The setting of refinement targets is important for the
in 1999 could choose between the Omega and the successful operation of the so-called Extended Enterprise
Vectra for virtually the same price. The Vectra seems that is described in Section 22.1.1.4. Without these, in-
to offer better performance, whilst the Omega is dividual system suppliers would determine their own in-
reported to offer more space and better refinement. terpretation of an appropriate level of refinement for their
The situation described above is counter-intuitive – component and the final vehicle would most likelybe truly
99MY vehicles that have better performance, less emis- refined only in some aspects and not in others. In addition,
sions, better refinement and more equipment than 89MY it should be noted that type approval testing (at present) is
vehicles but cost less in real terms. It is possible to undertaken as ‘whole vehicle’ type approval (see Section
speculate how the industry found itself in that position. 22.1.1.1) and therefore by definition it is only undertaken
It might have been due to: once the production intent vehicle is fully developed. If
The effects of increased competition in a saturated one component or sub-system causes the vehicle to fail its
market. type approval test due to excessive noise then the cost
Action by the UK Government (only applies to implications are obviously serious.
2000MY prices). The standard management tool for setting refinement
The effects of vehicle leasing schemes and manufac- (and other) targets is the PDS document. This is written
turer’s vehicle finance schemes. by the brand holder and adherence to it becomes a con-
The adoption of measures to improve organisational ef- ditions of contract for any supplier. A typical PDS will
ficiency such as the ‘Extended Enterprise’ and tech- contain the following refinement targets:
nologyemployedindesignandmanufacturingactivities. whole vehicle exterior noise targets;
Macro political and economic factors affecting the single component exterior noise targets;
automotive industry but not generated by that in- whole vehicle interior noise targets;
dustry (globalisation, problems in Pacific Rim coun- ride quality targets (including tactile vibration
tries, etc.). targets).
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