PL-SIM: A generic simulation model for studying strategic SPI in the automotive industry

This paper presents the approach, results and conclusions of a simulation modelling activity conducted by Fraunhofer IESE in collaboration with DaimlerChrysler AG. The purpose of this activity was to support DaimlerChrysler Research and Technology in performing a study that aimed at exploring the level of process leadership (PL) that can be achieved by one of DaimlerChrysler's car divisions within the next five years. A crucial issue of the study was the identification and determination of influence factors and measures expected to have an impact on the level of PL. In order to help focus discussion and provide a quantitative basis for analyses, Fraunhofer IESE and DaimlerChrysler Research and Technology jointly developed a System Dynamics simulation model, PL-SIM. In a first assessment, the model was found to be useful for running experiments that qualitatively reflect the fundamental dynamics of the factors influencing PL. Though additional data needs to be collected in order to increase the model's accuracy and predictive power, its generic structure can easily be transferred into other companies and serve as a framework for exploring their specific SPI strategies.