improving product development and certification practices€¦ · · 2018-01-23improving product...

for Vehicle ModificationsAn International Specialised Skills Institute Fellowship.

ANDREW GEORGESponsored by Perpetual Foundation – Eddy Dunn Endowment © Copyright January 2018

IMPROVING PRODUCT DEVELOPMENT AND CERTIFICATION PRACTICES

Table of ConTenTs

IMPROVING PRODUCT DEVELOPMENT AND CERTIFICATION PRACTICES FOR VEHICLE MODIFICATIONS

i. executive summary 3

ii. abbreviations/acronyms 7

iii. Definitions 8

1. about the fellow 12

2. aims of the fellowship Program 14

2.1 StudyofInternationalEnvironmentsinAftermarketProductDevelopmentandCertification 14

2.2 Conceptualise a Development Process for Aftermarket Products 15

2.3 Identify Local Industry Competency Gaps 16

3. The australian Context 17

4. Identifying the Required skills enhancement areas 19

5. The International experience 20

6. Knowledge Transfer: Applying the Outcomes 38

7. Recommendations 39

7.1 Development of an Aftermarket Product Development Process 39

7.2 Further Development of Levels Evidence for Regulatory Compliance 50

7.3 Implementation of a point of sale product accreditation process 53

7.4 AddressingIndustryKnowledgeGaps 55

8. References 56

9. acknowledgements 57

International Specialised Skills Institute (ISS Institute) – The Awarding Body 57

Fellowship Sponsor – Perpetual Foundation – Eddy Dunn Endowment 57

Table of Contents

I. exeCUTIVe sUMMaRY


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The focus of this ISS Institute Fellowship Program was to investigate new skills and processes for use in the Australian industry for development and verification of low volume automotive accessories, andmake recommendationsconcerning the improvement of industry processes.

Aftermarket products may include bullbars, roof racks, engine or engine performance accessories such assupercharger or turbocharger kits, transmissions, roll cages and roll bars, seats or seatbelts, suspensioncomponents,orwheels.TheseproductscouldincludeanycomponentofferedforsalebybusinessesotherthanOriginalEquipment(OE)sourcessuchasFord,Holden,Chrysler,Toyota,Nissan,etc.

Figure 1 – This Toyota 86 supercharger conversion is an example of a significant aftermarket product

i. Executive Summary



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Figure 2 – This photograph of a ‘custom engine bay’ identifies one role that motor vehicle modifications play in self-expression of car enthusiasts



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Figure 3 – ‘Kit Cars’ are possibly the ultimate in aftermarket products, where parts sufficient to create a whole vehicle are sold for assembly by an enthusiast. This kit was purchased by a customer in Australia from Ireland

The skills enhancement areas of study include the study of international environments to:

1. Consider potential processes to improve regulatory frameworks in modified vehicle certification to betterengagemodifiedvehicleownersandserviceprovidersinusingsoundengineeringprocesses

2. Conceptualise a product development process specifically sized to the economies of scale of Australia’saftermarketproductindustry,asdistinctfromprocessesusedinOriginalEquipment(OE)productdevelopment

3. Identify local industry training and knowledge gaps in the development,manufacturing, and verification ofmodifiedvehicleproducts.

The outcomes of these objectives are intended to:

1. Provide tools and processes that may encourage local companies to increase investment in productdevelopment and manufacturing of aftermarket products

2. Form a “receptacle” for automotive product development related skills to be maintained in Australia to allowfor the possible reintroduction of an OE automotive industry sometime in the future

3. Use product development processes to provide a more portable transition to the aftermarket for those whohave been displaced by the demise of the local OE automotive industry



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4. Support thedevelopmentofan improvedapproachtoregulatorycertification for theAustralianaftermarketautomotive industry.

The outcome of this ISS Institute Fellowship project has been integrated with various industry projects focused onthedevelopmentandsupportofautomotiveaftermarketmanufacturers.Therefore,theISSInstituteFellowshipoutcomes will be disseminated to industry through collaborative projects with various industry associations and regulatorybodieswhichincludetheSocietyofAutomotiveEngineersAustralasia,VicRoads,theVictorianAutomotiveChamberofCommerce,andothersasappropriate.

II. abbReVIaTIons/aCRonYMs


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3D Three dimensional

aaaa Australian Automotive Aftermarket Association

aDR Australian Design Rule

aIaG Automotive Industry Action Group

aoMC Association of Motoring Clubs

aPQP Advanced Product Quality Planning

aVe ApprovedVehicleExaminers

Ceo ChiefExecutiveOfficer

CaD Computer Aided Design

CnC ComputerNumericalControl

DIIRD (Commonwealth) Department of Innovation,Industry,andRegionalDevelopment

eCe Economic Commission for Europe

fea Finite Element Analysis

fMea FailureModeandEffectsAnalysis

Gen I Generation one

Gen V Generationfive

GM General Motors

GM PRC General Motors Performance and Racing Centre

Iss Institute International Specialised Skills Institute

nasCaR NationalAssociationforStockCarAuto Racing

nCaP NewCarAssessmentProgram

nCoP NationalCodeofPractice

oe Original Equipment

RasIC Responsibility,Approve,Support,Inform,Consult

RQ Risk Quantity

sae Society of Automotive Engineers

sae-a Society of Automotive Engineers Australasia

sae-I Society of Automotive Engineers International

seMa Specialty Equipment Market Association

sMe Small to Medium Enterprise

soR Statement of Requirements

soW Statement of Work

Tafe Technical and Further Education

TIC Transport Industry Consultants Pty. Ltd.

TIG Tungsten Inert Gas

VaCC VictorianAutomotiveChamberofCommerce

Vass VehicleAssessmentSignatoryScheme

ii. Abbreviations/Acronyms

III. DefInITIons


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3D printer -aprototypingdevice(andpossiblyproductiondeviceintothefuture)thatusesaCADfiletoprintaproduct in three dimensions. These devices can produce polymer and metal components

aftermarket Industry - identifiestheindustrysectorthatsuppliesproductsthatcausevehiclestobemodifiedfromthe original condition in which they were offered for sale. By definition, aftermarket products or vehiclemodificationscannotbefittedtoanewvehiclewhen(ie.priorto)firstregistered.Infact,thisisanillegalactundercommonwealthlaw

Assessable Modifications - are those identified by state registration authorities as requiring assessment byanapprovedengineer, incontrast to thosenon-assessablemodificationsthatareabletobeperformedwithoutassessmentandcertificationbyarecognisedengineer

Assessment of Modifications - the process of inspecting a vehicle and determining compliance with general designprinciplesandspecificregulatorystandardsthatapply

b10 life -isastatisticalrepresentationofreliability.B10referstothetime,cycles,orotherinwhich10%ofthetotalpopulation of the product will have failed.

bill of Materials - is a list of parts and assemblies used to describe a saleable product through its sub components. The bill of materials is sometimes referred to as a parts list

brainstorming - is a tool used in leveraging the value of a group in developing ideas

bull bar -isacomponentfittedtothefrontofavehicletoprotectthevehiclefromimpactswithobjects,livestock,or other animals during driving

Certification - t he d ocumented o utcome o f a ( usually s uccessful) a ssessment o f a v ehicle o r s ub s ystem t o regulatory standards

CaD file -isanelectronicfilecomprisingdatathatcanbeusedtodefineavirtualmodelofaproduct.Thismodelcan be used to analyse or construct a physical component

California air Resources board - is the Californian authority for the environment that has developed standards forvehicleemissioncontrolwhichhavebeenrecognisedasstandardsintheUSA.TheVictorianequivalentistheEnvironment Protection Authority

Confidence Levels (Compliance) - is aparameter thatquantifies the likelihood that evidenceof complianceachievestherequirementofapplicablestandards.ThisissueexistsduetothefactthatnormalcomplianceisusuallyexpressedasanOEleveltestthatoftenrequiresanalternativeprocesstobeusedforthenatureofaftermarketproduct validation

Continuous Improvement - theprocessof identifyingcustomerandmanufacturingissues,andusingproblemsolving processes and management systems to implement engineering solutions to continuously improve the vehicle

iii. Definitions

III. DefInITIons


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Computer Numerical Control (CNC) -isaprocessofmachining,grinding,welding,cutting,etcusingmachinetoolswhichareelectronicallycontrolledbycomputer(CAD)files

Data acquisition - is the process of measuring parameters concerning the operation of a vehicle or sub system and recording the data for management and use in technical processes. Data acquisition may be to measure and recordacceleration,temperature,strain,etc.

Design assumption sheet - is a document describing the concept of a product and key details. The design assumption sheet is the initial concept description developed by engineers for designers or drafters to use in developing drawings or models of the product

Design for six sigma - is a statistical process for design optimisation with the aim of reducing product failures in relation to orders of a statistical measure called standard deviation

Durability testing - is the process of testing the use of a vehicle or product prior to failure

Dynamometer - is a machine for measuring the power and torque created by an engine or driveline through the application of a known resistance

engineering - theprocessofapplyingscientificprinciplestothedesignanddevelopmentofmechanical,electrical,and electronic systems

evidence of Compliance - is the evidence created to demonstrate compliance of a vehicle with safety and regulatorystandards.Evidencecantakeseveralforms,butanopinionisgenerallynotsufficient

failure Mode - is a mechanism in which a failure occurs

Failure Mode and Effects Analysis (FMEA) - is a risk assessment and management process use as a tool in product (sometimes referred to as DFMEA) or process development (sometimes referred to as PFMEA)

fatigue - is a failure mode as a result of stress and cyclic reversal

finite element analysis - is a process of simulation used to perform calculations on properties of products represented as mathematical models

Gantt Chart -isatimingchartidentifyingthelogicalsequenceofeventsinaproject,thedurationofeachevent,and resources required to complete the event

Issue Tracking Process - is a management tool that monitors open issues that require resolution during the life of a development project

lathe - is a machine used to form components by spinning the product whilst in contact with a cutting tool

Modified Vehicle - amotor vehicle used on the road in whichmodifications have been performed from theconditioninwhichitwasfirstofferedforsale

National Code of Practice for Light Vehicle Modification (NCOP) - is a Commonwealth series of publications (labelledasVehicleStandardsBulletins)thatareadoptedbymoststateregistrationauthoritiesasnationalstandardsforvehiclemodification(WAandNTcurrentlydonotusetheNCOPintheirmodifiedvehicleschemes)

III. DefInITIons


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New Car Assessment Program (NCAP) - an independent process of assessment and rating of the safety related performance of new vehicles

non-serviceable Parts - are those parts that are not intended to wear or degrade during the use of the vehicle. Examplesofnon-serviceablepartsaresteering,chassis,transmission,engine,etc.Brakes,engineoil,tyres,filters,etc are serviceable parts and are therefore designed to need replacement at scheduled service intervals

Off Road - is a term used to identify that the vehicle will not be used on normal roads

Original Equipment (OE) Manufacturer - A manufacturer of motor vehicles that supplies new vehicles to the market

Product Development Process - the sequence of events between a concept being conceived to completion of a vehicle or vehicle sub system design where it is ready for manufacturing and sale

Prototype build -astageofphysicalproductdevelopmentwhereproductisconstructedusingnon-productionprocessandpre-production levelsofdesign.Prototypesareusedtovalidatesimulationprocessesandperformearly level development testing

Pilot build - a stage of physical product development where product is constructed from production representative tooling and from production released design level. Pilot level product is used in validation of performance and for finaltuningofdesignsandproductionprocesses

Production lifecycle -istheperiodoftimebetweenaproductbeingofferedforsaleandthetimethattheproductisdiscontinuedandnolongerofferedforsale

Quality -theprocessofachievingmanufacturingoutcomesinaccordancewithengineeringspecifications.Thesespecificationscouldbedimensionalorproductbehaviouralinnature

RasIC - is a tool that is used to document the responsibilities of those involved in a project

Recognised signatories - those consulting engineers who have been approved by and participate in state registrationauthorityassessmentandcertificationschemesformodifiedvehicles

Reverse engineer - the process of using the condition of a vehicle or vehicle sub system presented for assessment to develop an understanding of the process used in development to that state. The process works in reverse from a normal development sequence of events

Risk -isanegativeoutcomeordamagethatmayoccur.Riskisideallyexpressedwithaquantifierindicatingtheprobability that a negative outcome could occur

Risk Management - is the process of identifying and controlling risks through measures that eliminate or reduce the possible occurrence of negative outcomes

Roll Cages and Roll bars – are structural interior protection devices that are typically constructed from welded steel tubing to reinforce the occupant cell of a vehicle in the case of a roof crush or rollover incident

Root Cause -isthelowestlevelcauseofafailure,definedbytheissuethatcanbecontrolledandresolved,thateliminates the failure. All potential causes that do not result in the risk of failure being eliminated can be recognised as failure modes

III. DefInITIons


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Statement of Work (SOW) - is adocumentdescribinga task required incompletionofaproject,whichalsospecifiesdetailsregardingtherequireddeliverablesforcompletionofthetask

Statement of Requirements (SOR) - is a document describing the physical and organisational requirements for the supply of a product into production

stress - istheproductofaloadbeingappliedtoanarea,andisexpressedintheunitofPascals(Pa)

supercharger - is a mechanically driven device that compresses combustible air prior to entering the engine to gain an improvement in performance from the engine

Turbocharger –isanexhaustgasdrivendevicethatcompressescombustibleairpriortoenteringtheenginetogain an improvement in performance from the engine

Tier 1 supplier - is a supplier that provides material directly to an OE level manufacturer

Tooling - refers to the machines that make up production processes

Validation (or verification) - is the process of testing or analysis to verify that a product or a manufacturing process achieves required performance objectives in its operation or function

Welder - is a machine that fuses metal components through application of an electric current

1. aboUT THe felloW


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AndrewGeorge (theFellow) startedhisprofessional interest inmodifiedvehicledesign in the late1980swhilstbeing employed by Transport Industry Consultants Pty. Ltd. (TIC). TIC was a small to medium enterprise (SME) specialisinginthedesignandassessmentofmodifiedvehicles.

TheFellow soon recognised that amajor component ofmodifiedvehicleassessmentandcertification involvestheprocessofdevelopingappropriateevidence forvalidationof themodifications.Theproblemwasthatmanyserviceproviders,inadditiontosomeofthecompetitionworkinginthearea,hadinsufficientknowledgeofvehicledevelopment.Thiscausedmanyvehiclespresentedforassessmenttobenon-compliant,andwascausedbytheinabilityofthoseinfluencingtheprojecttounderstandtheeffectoftheirmodifications.

Itwasalsorecognisedthatthetaskofassessingamodifiedvehiclerequirestheassessortoreverseengineerthedevelopment process in order to properly understand and approve the impact of themodifications.Andsincea personal opinion on compliance of a vehicle is generally not acceptable for certification, the core skill of anassessingengineerwasactuallyinthedevelopmentofevidenceofcompliance.Thiswasmademoredifficultwhenthoseresponsibleforbuildingthevehicledidnotdeveloptheevidencethroughthebuild,requiringtheengineertoreverseengineerthisprocessintheassessmentofthemodifications.

This requires a fundamental understanding of the process in which vehicles are designed and developed by both OE manufacturers and enthusiasts, requiring significant experience in each role prior to the engineer gainingthecompetencetoworkonmodifiedvehicleprojects.Manyinvolvedinmodifiedvehicledesigndidnothavethiscompetence.

SeveralyearsofexperienceinthisroleatTIChelpedtodevelopspecificcompetenciesincustomcarbuilding,butagreatdealmorestudywasrequiredtobeproficientinsucharole.Andsincetherewerenocoursesavailableinthisfieldduringthelate1980s,continuingprofessionaldevelopmentneededtobethroughpersonalprojectsandachangeofjob.OEproductdevelopmentexperiencewasrequired.

TheroleatTIClasted3.5years,fromwhichtheFellowmovedtoHoldenLtd(Holden)in1992tofurtherpursueacareer in vehicle engineering.

Thisbecomeaprofessionalaswellaspersonalinterest,andeventuallyledtoauthoringtwobooksonthesubject,over tenyearsofworkingasa freelance journalist,numerousstudy tripsandplant tours,andseveralpersonaltechnical projects. These projectswere in addition toworking in a full-time position as a vehicle developmentengineerforHolden.

SubsequentemploymentatHoldenwasinitiallyasaDurabilityEngineerattheLangLangProvingGround,thenina design and development role on body structures and body systems.

In2003,theFellowmovedwithinHoldentotheCurrentProductEngineeringgrouptotakeamanagementposition.The task was to develop a new group formed to supply a specialist problem solving and continuous improvement capability in lower volume imported and locally manufactured vehicles.

Theselowvolumevehicleswerevariantsofthehighervolumesellingvehicles,andincludedtheHoldenMonaro,PontiacGTO,HoldenCrewman,Adventra,andCabChassis.Theywerecollectively identifiedbyHoldenatthattimeas‘niche’vehicles.

1. About the Fellow

1. aboUT THe felloW


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The Fellow’s final role at Holden involved a return to body engineering for the VE Commodore launch, anddevelopment of the Chevrolet Camaro in 2005.

FromHolden,theFellowmovedtoIvecoTrucksAustraliaPtyLtdtotheroleofDirectorofQuality(January2009),andthentoDanaAustraliaPtyLtd(June2011)astheChiefEngineer,leadingtheengineeringandqualitydepartments.

DanaAustraliaPtyLtdwasabouttoundergosignificantchangeduetothediscontinuationofOEmanufacturing,and become active in developing products for the aftermarket industry.

Severalprojectswereexecutedusingearlyformsofarapidproductdevelopmentprocessthatwasconceptualisedby the Fellow, with varying levels of success. These were used as early experiments in risk based productdevelopment,andsomesubstantialtuningtotheprocesswasundertakenduringthattime.

The Fellow left employment at Dana Australia Pty Ltd in October 2016 to focus on the development of Sigmatech EngineeringConsultants,aconsultancy(nowpartnership)specialisinginproductdevelopmentandcertificationofaftermarket automotive systems.

However,theFellowacceptedtheroleasInterimChiefExecutiveOfficerattheSocietyofAutomotiveEngineersAustralasia(SAE-A)fromJanuary2017untilOctober2017,beforereturningtoconsultingasanoccupation.

The Fellow was incumbent in this consultancy role at the time of completing this ISS Institute project.

2. aIMs of THe felloWsHIP PRoGRaM


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The aims of the Fellowship Program were to:

1. Obtain information on how international companies are developing products for the automotive aftermarket

2. Investigate how international companies are verifying the performance and reliability of the products

3. Identifyinglearningorskillsgapsthatexistlocallyincomparisonwithinternationallocations.

It should be recognised that it was considered unlikely that businesses would conveniently provide an overview of theirproductdevelopmentandverificationprocesses.Thisisbecauseproductdevelopmentisakeyaspectoftheiroperation that often represents a competitive advantage.

However,theFellowbelievedthatsufficientinformationcouldbeobtainedthroughtheinternationaltraveltosatisfytherequirementsof thisstudy throughasimple inspectionofproducts,operations,and facilities,andattendingtraining courses to learn new approaches to skills development. In fact, the Fellow believes that the requiredoutcomesofthisFellowshipwereachievedwithoutbreachingcommercialconfidentiality.

The information obtained from these activities enabled a contrast between the local situation and the environment in the USA, whilst also providing the opportunity to discuss the Fellowship outcomes with highly skilled andexperiencedpeople.Significantinsightswereprovidedthroughthisprocess,whichformedthefoundationfortheanalysis and recommendations contained in this report.

TheaimsofthisFellowshiparefurtherexpandedwithintheskillsenhancementareasofstudylistedbelow.

2.1 Study of International Environments in Aftermarket Product Development and CertificationManyenthusiastshavecome tobelieve thatsuppliersofproductsandservices forvehiclemodificationare thesourceofsoundengineeringformodifiedvehicles,andthattheseserviceprovidersknowbetterthanregulatorsandindustryrecognisedsignatories.Manyenthusiastsbelievethatregulatorsarenot‘workinginreality’.

The cause of this is possibly the complexity in product development and compliance, and the relative lack ofinformation and training available to consumers and manufacturers. The problem is that vehicle engineering is anecdotallyconsidered‘simple’andinconsequentialinitseffectsonsafetyandtheenvironmentbythosewhoarenotwellinformed,orhavebusinessintereststhatinfluencetheirpubliclypromotedopinions.

Thisisverysimilarinnaturetothespeedcameraissue,wheremanyinourcommunitybelievethatspeedcameradetection ismotivatedby the revenue thatgovernmentscancreate.Thesciencebehind theeffect thatasmallincrease inspeedhasontheenergyof impactandthereforethedamageinflictedonthose involved isrelativelysimpleandcompletelyundeniable,butisnotopenlyrecognisedbypopularcommunityperception.

The same issue exists when owners of visibly modified vehicles are fined for using a vehicle with uncertifiedmodificationsontheroad.Thelinkbetweenthemodificationsandroadsafety isnotrecognisedbyasignificant

2. Aims of the Fellowship Program



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proportionofthepublic,althoughtheFellow’sexperience indesigningandinspectingmodifiedvehiclesoverseveraldecades has formed the opinion that many of these vehicles would have increased the likelihood of damage to the occupantsorpedestriansinacollision,orpotentiallycausedacollision,withouttheinputofprofessionalguidance.

There’s littlecorrelation betweenanOEengineeringdepartmentof800-1500engineersworkingfor3-5years indevelopmentofanewvehiclemodel, andanenthusiastwhodecidestomakesignificantchangestothedriveline,brakes,chassis,and interior safetysystems topursueanaesthetic theme.However,enthusiastsaremodifyingvehicles and governments have developed regulations to control the impact on public safety and the environment. It’swithinthissystemthatimprovementopportunitieshavebeenidentified.

Furthermeasures such as theprovisionof useful information onhow to comply with the regulations, accurateinformationonhowtopurchasecomponentsforvehiclemodification, andsomeclarityonprocessesforthesupplyofevidenceofcompliancebymodifiedvehicleassessorswouldadd significantvalue.

Thereasonfortheissuesurroundingpurchasing componentsisduetothefactthatcurrentcertificationprocessesapplytothecompletedvehicle,whichisanactivitythatisunfortunatelycommonlycompletedwellafterproductshavebeenpurchasedandmodificationsperformed.

It’smisleadingto manyenthusiasts thatitisnotillegaltoofferproducts developedwithoutcompliancetostateandCommonwealthstandardsforsale,butitisillegal (understatelaws)tousenon-complyingproductsontheroad.

Therefore,iflocalmanufacturerswereabletoleverage thispotentialadvantagebypromotingtheabilitytodevelopproductsspecificallyforthereliability,safety,andenvironmentalcompliance requiredbyourlocalmarket,apointofsaleproductcertificationprocesscouldprovidesignificantvalue.Thiswouldrequireasystemofassessmentandaccreditationforcomponentsusingtheregulatory frameworkforvehiclemodificationthatisalreadyinexistence.

However,suchasystemhasneverbeenusedinAustraliafor modifiedvehiclecomponents,sosomedevelopmentof a workable concept will be required.

TheNewCarAssessmentProgram (NCAP)hasthesemeasures inplace andhas madeasignificant impactonawarenessinthecommunity.ThemodifiedvehicleindustryshouldlooktoNCAPorsimilarsystems internationallyfor solutions.However,aswithNCAP, thisneeds tobedoneby the industry and for the industry.Governmentdepartments are not geared or motivated to complete this without industry motivation.

Theintentionwas forthis report tocontainusefulrecommendationsspecific tothemodifiedvehicleindustry,whichcanbesupportedbydiscussionswithinternationalexpertsonhowthisissueisapproachedintheUSA.

2.2 Conceptualise a Development Process for Aftermarket ProductsDevelopmentprocesses toachieveproduct realisation at the lowestcost, theshortest time,andtoachievethehighestreliabilityhavebeendevelopedtoscientificlevelswithintheOEbusinessenvironments.Carstodayaremorecosteffectivethan ever,andhavebeendesignedsuchthananyreliability issuecanonlybecausedbyamistakeinmanufactureorassembly.Carsarenolongerdesignedtoriskfailuresthroughnon-serviceablepartswearingoutor breaking in normal use.

However,theprocessesthatareusedin these‘design factories’havebeendevelopedtoproduceoutcomeswithlowproduct risk,and are associatedwith largeproduction volumes topayback the investment required of thecostly resources required through the development process.

This levelof riskmanagement iscritical to thesuccessofamodel, andeven impactssignificantly onabrand.Manypeopleareexposedtoanyriskoffailureorshortfallinsafetyperformance,andthecoststoreworkvehicleswhen



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upwardsof700-1000vehiclesareproducedeverydayaresignificant.Therefore,theriskmanagementisperformedprior to production start and controls to these risks are integrated to the product realisation process.

In contrast, lowvolumemanufacturingbusinesses that arecommon in theautomotiveaftermarket involve verymuchlowerlevelsofcommercialrisk.Thisisbecausealowernumberofproductswillbesold,thereforeloweringtheexposureasaresultofsalesvolume.Itisalsotruethatcomponentswilloftenbefittedbytrainedtradesmen,whichdiffersfromvolumeassemblywhereunqualifiedoperatorsassemblethevehicles.

Thisresultsinasituationwhereasignificantlevelofriskcanbecontrolledduringorafterpointofsaleforaftermarketcomponents,whichisnotacontrolavailableinOEvehicleengineering.

Infact,theriskprofilesbetweenOEandaftermarketdesignaresubstantiallydifferent,whichmeansthattheprocessfordevelopmentofproductsshouldalsobesubstantiallydifferent.

Asignificantamountof training, industry information,andexpertisecurrentlyexists inOEproductdevelopment,manufacturing, and risk assessment.However, this technical proficiency has notwidely been transformed intoprocesses than can easily be consumed by aftermarket product development. The people with the OE knowledge areavailable,butarenotusefultotheaftermarketoperationswithouttheunderstandingofthedifferencesbetweenthetwodistinctapplicationsofthesamebasicprocess.Therefore,thereisaskillsgap.

Aproductdevelopmentprocessandassociatedtrainingdevelopedspecificallyfortheeconomiesofscaleofthevehiclemodification industrysectorcouldyieldsubstantial results in termsofefficiency, reliability,andcontrolofrisks,aswellassupportthesmoothtransitionofOEtrainedengineerstoaftermarketoperations.

Thissystemitselfneedstobesufficientlyflexibletobeadaptedtothedifferentsizesofbusinesses,whilstbeingintegrated to an industry network. The network is required to supply support mechanisms that are generally supplied in house within the very much larger OE companies.

This ISS Institute Fellowship aims to use the international travel to gain access to those who can provide input to theprocessofconceptualisingamodelforuseintheAustraliancontext.

2.3 Identify Local Industry Competency GapsThe aims outlined above are skills and process related, and any approach to provide support in these skillsenhancement areas will involve training and industry networking as a major component.

TheUSAhasseveralsourcesofinformationpotentiallyvaluabletoourlocalindustryduetotherelativesizeoftheUSaftermarketindustry.Thisisduetothesizeofthemarket,wheremanyOEsuppliershavesignificantbusinessinthesupplyofproductstotheaftermarket,andseveralofthelargeraftermarketbusinessesareactuallylargerthanAustralian OE businesses.

Althoughthelargeraftermarketsuppliersdidnotbelievethatparticipatinginthisprojectwasintheirbestinterests,theFellowwasabletodiscussrelevantissuestotrainingofourlocalindustrywithindustryrecognisedexpertsandusers of the products developed by the very large companies.

Asubstantialamountofpre-travelinvestigationwasperformedinAustraliathroughdiscussionswithrepresentativesfromVicRoads, the VACC, theAAAA, and someof the leadingVehicleAssessmentSignatoryScheme (VASS)engineers to identify gaps in training and competency in Australia. This allowed discussions held during the international travel to identify the presence of these competencies and therefore support the recognition of any gapsthatmayexistbetweenthecountries.

3. THe aUsTRalIan ConTexT


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Australianmanufacturingissearchingforthenext“niche”toabsorbasmuchofourexistingproductdevelopmenttechnology andmanufacturing capability as possible,which likely has a shelf life of only a few years after thecessation of automotive manufacturing in Australia.

Ifevenasmallpercentageoftheseskillsarenotmaintainedandkeptcurrent,thepossibilityofdevelopinganewOEautomotiveindustryinthefuturewillbemuchmoredifficult.TheaftermarketindustrysectorneedstofindawaytomaintaintheadvantagesthatAustraliaenjoys,andusethistoeliminateroadblockstothere-introductionofanautomotive industry in long term future.

Manyareproposingthenextbigthingthatcanreplacetheautomotiveindustry,butthelikelyrealityisthatthereisnoquickorsinglesolution.StateandCommonwealthgovernmentdepartmentshavebeenactiveforseveralyears,but the most that can be achieved by 2017 is a number of smaller niche industries to replace a percentage of the employment and revenue currently driven by the OE automotive industry.

Automotive niche products and manufacturing of accessories and service products represent a possible pathway tomaintain an element of the relevant skills required tomaximise theprobability of someday rebuilding anOEautomotive industry.And it isentirely likely thatcustomisationofnew importedvehiclesorevenmodificationofolderlocallymadevehicleswillbecomemorepopularasalternativestobuyingapremiumimportedmass-producedvehicle.

Therearesomeplayersinthislocalvehiclemodificationindustrywhoarerelativelyadvancedincomparisonwiththeircompetitors,andhavedevelopmentstreamsthatcombinepuretechnicalknowledgewitheffectiveintegrationengineering. However, with the exception of several of the larger businesses, the current players comprise adiversegroupofsmallbusinesseswithoutthefinancialororganisationalmeanstoinstantlyacceleratetheirproductdevelopment and marketing processes.

Therefore,itiscriticallyimportanttocatertheprocess,skills,andtrainingrequiredbythisindustrynicheforthosewho will most likely increase their local development of aftermarket products. This makes the successful integration of the various stages of this project key to making the support structure as easy as possible for these businesses to consume.

Thestrategytoachievethisshouldbebuiltfromthefundamentals,whicharetheintendedoutcomesofasuccessfulproductdevelopmentprocess.Theycanbesummarisedasreliability,safety,andenvironmentalcompliance.

Althoughindustrywideoutcomesarebeingdescribedinthissectionofthereport,theactivitieslistedaspotentiallyachievingtheseoutcomesarefocusedaroundthedevelopmentandcertificationofproducts.AndintheFellow’sopinion,thesearethekeyissuesfordevelopmentinAustralia.

Theissueofcertificationpotentiallyrequiresfurtherclarification,asourindustrycurrentlyhasacertificationprocess.However,therearedisconnectsinthiscertificationprocess.

Thefirstistheconsistencyofprocessesusedbyparticipantsinstateregistrationauthoritysignatoryschemestoverifycomplianceandconfidencelevels.Thisisbecauseguidelinesformodifiedvehicles(VehicleStandardsBulletin14,2017)areclearontheperformance levelsandconfigurationrequiredforcompliance,butarenotspecific in

3. The Australian Context

3. THe aUsTRalIan ConTexT


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describingtheconfidenceinevidencerequired.Thisrequiressignatoriestodecideonthelevelsofevidencerequiredfor proving compliance themselves (some even use personal opinion without providing evidence as witnessed by theFellowduringresearchonthematter),whichintroducessomevariationbetweensignatoriesandbetweenstateregistrationschemes,eventhoughthemajorityofAustralianstatessubscribetoCommonwealthguidelines.

The second issue facing local certification processes is the disconnect that exists between enthusiasts andcertificationschemescurrentlyinuse,wheremanyenquiriestosignatoriesrefertotheenthusiastsrecentlyfoundmotivationto‘comeinfromthecold’andcomplywithcertificationrequirements.SimpleanecdotalassessmentssupportthisfactthattherearemanymoremodifiedvehiclesbeingusedonroadsinVictoria(forexample),thanthosebeingcertified.Thisiscauseforconcern.

It could be argued that past industry attempts at eliminating this disconnect between the regulatory process and the responsebyconsumerstointeractwithiteffectivelyhavebeenunsuccessfulthroughafailuretorecognisethatthewholeprocessisnotaboutmotivatingconsumerstocomplywithspecifiedoutcomes,butisactuallyaboutsoundvehicle engineering.

The mistake here is to legitimise the discussion on safety and regulatory compliance aimed at achieving prescribed outcomesbyacceptingtheargumentthatbusinessesinvolvedinthemodificationofvehiclesareperformingsoundengineering,withoutrecognisingthatachievingtheprescribedoutcomesforregulatorycomplianceandperformingsound engineering are actually the same thing.

This ISS InstituteFellowshiphasbeenaimedataddressing thesalientpoints raisedabove,andrecommendingpossible solutions to these issues.

4. IDenTIfYInG THe ReQUIReD skIlls enHanCeMenT aReas


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Itshouldalsoberecognisedthatanyconsiderationontherequiredoutcomesofmodifiedvehicledesignalsorequiressupport from a process framework to guide developing the modifications to achieve the required outcomes.TheseframeworksarewellacknowledgedinOEengineering,but seemtonotbewidelyconsideredinaftermarketproductdevelopment.

In theFellow’sexperience, this issue ismanifestedthroughownersof thesesmallbusinessesthataregenerallyfromtradesbackgrounds,anddonotrecognisevalueinprocessesdesignedtodevelopproducts.Therefore,juniorengineersarehired(theycostless),andareoftenputtoworkdevelopingcomplexsystems.

Andwhentheinevitableoccursandsomethinggoeswrong,theengineerisasked‘whytheydidn’tthinkofthatduringthedevelopmentprocess’.Thereasonisgenerallyattributedtothecapabilitiesoftheengineer,whichisinerror.Often,therootcauseisgenerallythroughthelackofaprocess,andsubsequentlytheengineer’sfailuretoidentifyandcontrolrisksrequiredtoachieveasafe,reliable,andcompliantproduct.

TheFellowhaswitnessed this cycle onmanyoccasions, andhasbeenworking in this area, and investigatingfailures in this area for several decades.

The solution is generally simple in nature, but does involve ‘front end loading’ the development process withresources.Unfortunately,thisprocessdoesnotvisuallyappeartobeyieldingprogressinthedevelopmentoftheproduct.So,therewillbesometrainingofbusinessownerstounderstandthatalackofvisibleprogressinbuildingprototypes does not necessarily point to a stalled development process. This is a cultural issue that will require some considered attention to resolve.

The full derivation of a new approach to the product development process, validation of outcomes throughapplicationofalternativeproceduresforproductverification,andastrategyforincreasingenthusiastandcompanycomplianceareoutsideofthescopeofthisISSInstitutereport,buttheconceptualisationofanapproachhasbeenstudied through the international travel and post processing activities.

Recommendations have been provided in the sections below.

4. Identifying the Required SkillsEnhancement Areas

5. THe InTeRnaTIonal exPeRIenCe


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Thefollowingdetailsthemeetingsandvisits,whowasinvolved,andwhatinformationwasgainedfromtheactivity.

Date: TuesdayMay9,2017

activity:MeetingwithDavidKneisler

Position:VicePresidentofQualityatDanaCorporation

Place of activity:Detroit,Michigan,USA

DanaCorporationwas the immediatepastemployerof theFellowat the timeof the international travel,wherethe Fellow occupied the position of Chief Engineer (department head of engineering and quality) of the Australian operationformorethanfiveyears.

TheFellowexplainedtoDavidKneisler thattheslowdowninOEmanufacturing inAustralia isstartingto impactthosenowneeding to leave theOEmanufacturers,and thataproblemexists that theengineerswhocouldbeusedandtheuniversitiesteachingthemarenotwellalignedwiththecompanieswhoareexpandingandcouldbeemployingtheseengineers.TheoldnotionofOEengineersprojectmanagingaveryspecificareaofcommodityisdifferenttothewaythatperformanceaftermarket,recreation,andcustomcompanieswork,atbothat‘tier1’andsub supplier level.

KneislerisalsoapastpresidentoftheAutomotiveIndustryActionGroup(AIAG),andbelievedthattheAIAGtoolscouldassistwith the ISS InstituteFellowship.Kneislermadean introduction for theFellow to ScotSharlandviaSMS,whoistheExecutiveDirectoroftheAIAG.AmeetingwasplannedbetweentheFellowandSharlandonthemorningofFriday12May,2017.

TheFellowandKneislerdiscussed(ataveryhighlevel,noproductdetailwasdisclosed)thetypeofissuesinthisareathatDanahaveexperienced.

This caused the Fellow to consider some of the skills that could be introduced as countermeasures to eliminate the risk of these issues from occurring in the project development process.

ManyoftheprocesseslikelytoprotectabusinessfromtheseissuesareAIAGtools,andtheFellowknowsfrompersonalexperiencethatDanaisextremelyadvancedinalong-termplantocontinuouslysurveytheiremployeesfor development of these competencies and further implement a program of skills development to raise the ability of Dana engineers to manage risk during product realisation.

TheFellowrecognisesDanaIncorporatedasaleaderinthisfield,andthediscussionwithKneisleridentifiedthatfurtherdevelopmenthasbeenrecognisedandrequired.Asaresultofthisdiscussion,theFellowconcludedthattheaftermarket industry in Australia has a long way to go to even reach the basic competencies that global OE product suppliershaveachieved,letalonewheretheywillbeinthenextfewyears.

Thiswasausefuldiscussion,andtherearesignificantlearningsforthelocalaftermarketindustryinDana’sglobalapproach.

5. The International Experience



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Figure 4 – The Head Office of Dana Incorporated in Maumee Ohio



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Date:WednesdayMay10,2017

activity: Tour of Detroit Techshop and TIG Welding Course

Place of activity:Detroit,Michigan,USA

TheTechshop isachainofbusinesses in theUSAthatprovideequipmentandtraining for ‘makers’,which isamodern term for enthusiasts involved with development and manufacturing of products. The Techshop is intended tobeaplacefor‘makers’toattendtoaccessequipmentsuchaslathes,welders,modelmakingequipment,CADfacilities,3Dprinters,etc,aswellastakepartintrainingcourses.

Figure 5 – The Detroit Techshop

TheFellow’svisittotheDetroitTechshopstartedwithatourofthetechnicalequipmentthatincludedamachineshop,awoodworkingshop, lasercuttingshop,CADarea,electronicsarea,weldingarea,andmechanicsarea.Theyalsohaveasmallkitchenwithcoffee,water,apopcornmachine,somebenchspace,andasmalllounge.



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Figure 6 – The Techshop Machine Shop is Typical of the Facilities Available to Members

TheFellowthenattendedtheTungstenInertGas(TIG)weldingcourse,whichcoveredhowtosetthegascylindergauges, turn thewelderon,strikeanarc,and thenuse thecontrolpedal tomanagethearc tomove theweldpuddle.Thenextstagewastointroducethefillerrodtoaddmaterialtotheweld.

TheFellowwasabletoweldpriortoattendingthecourse,butenrolledtobenefitfromatourofthefacility,andtolearnfirst-handhowthetechnicalsubjectsaretaught.TheaimwastobepartofthemembershipforanafternoonandeveningtoprovideanoverviewoftheTechshop’schoiceofequipmentandmaterials,thelevelofdetailthatcoursesattaughtat,andtoalsogainaninsightintothecapabilityofthepeopleusingtheTechshopandattendingthe welding course on that evening.

TheFellowbelievesthattheTechshop’slevelofdetail inthisofferingisrepresentativeofthetargetdemographicofmodifiedvehicleenthusiasts inAustralia.Therefore, thevisithasprovidedan importantbenchmarkas to thetechnicalequipmentandknowledgethatanenthusiastwouldneedaccesstointhemodificationofvehicles.

TheTAFEsysteminAustraliaprovidesasimilarleveloftrainingasthatundertakenattheTechshop,butthereisnofacility like the Techshop in Australia to provide access to the equipment for private projects.

Conclusions from this day at the Techshop involved the significant value that ‘hands-on’ skills have on soundproduct development. This visit has been important to the acknowledgement that a minimum skillset for product developmentengineersintheAustralianaftermarketindustryshouldbedevelopedtoaidmanufacturers,andhasallowed an appreciation of which practical skills should be included.



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Date:ThursdayMay11,2017

activity: Meeting with Glen Santelices

Position:GeneralManager,GMPerformanceandRacingCentre

Place of activity:Pontiac,Michigan,USA

The GM Performance and Racing Centre was constructed in 2016, and is the centre for development andmanufactureofGM’sdragracing,IndyCar,NASCAR,andcustomerracingengines.

Figure 7 – The GM Performance and Racing Centre, Pontiac, Michigan (Photograph courtesy GM website)

GlenSantelicesprovidedatourstartinginthefoyer,whereheexplainedthedisplaysoftheGen1-GenVenginedisplay,theboardsonNASCAR,DragRacing,Indy,andSportSedanracing.

Thepersonaltourthencoveredtheenginebuildarea,machineshop,stores,dynoroom,andtouredthedesignarea.



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Figure 8 – The Racing Engine Build Bay at the GM Performance and Racing Centre (Photograph courtesy GM website)

Thedynamometerfacilitiesweremodern,withtechnologymoreadvancedthanwasrecognisedbytheFellowasbeing commercially available in Australia.

Thereweretwodynamometers,eachinadifferentroom.Onewasanenginedynamometer,andtheotheranenginedynamometerwithachassisbuiltunderneath.Theyareabletorunengines,axles,etcundertheirownpowerandalso run engines to measure mechanical loss.



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Figure 9 – One of the Dynamometer Rooms at the GM Performance and Racing Centre (Photograph courtesy GM website)

Inthelattersituation,measurementsaretakenondriveshafts,andataxleends,whichallowsmeasurementoftheresistanceinatransmissionandaxle.Santelicescommentedthatacustomermaydeliver20axles,andtheGMPerformanceandRacingCentrewilladvisewhichaxleshavethelowestresistance.Thedifferencewillbesmall,butsignificantinracingformulaesuchasNASCAR.

Theequipmentalsohascombustibleairpressure,temperature,andhumiditycontrol,whichallowssimulationofconditionsatdifferentracetracks.Santelicesalsomentionedthattheylogdatafromcarsracinginrealtimeandusethe load and air conditions to simulate the performance that the car will have at that track. This allows an identical engine to be run at the GM Performance and Racing Centre under the atmospheric conditions being witnessed bytheactualracecar,toallowtuningonthedynamometertocreatecalibrationsthatcanbecommunicatedtothe race team fordownloading to thecarduring the race.This real-timedevelopmentprovidesaperformanceadvantage to teams with the capacity to use it.



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Figure 10 – The Dynamometer Control Room at the GM Performance and Racing Centre (Photograph courtesy GM website)

Thisisoneexamplewheremoderncommunication,testing,andsimulationtechnologyisassistingmodernracing(andproductdevelopment).Theprocessinvolvesdataacquisition,datacleansing,andrigordynamometertestingtoensure that thesystemachieves theperformance target,whether theparametermaybepower, strengthorfatigue.Thisisakeypartofproductdevelopment,andservestoreducedevelopmentleadtimes.

The visit to the GM PRC provided an insight into the processes involved with current state of the art design and development,andwasextremelyvaluableinprovidingabenchmarkastothecurrentlevelsoftechnologyrelevantto product development.

ManyoftheprocessesthatSantelicestouchedonduringthetourprovidedtheFellowwithsignificantinsightsintothe levels of technology that have been incorporated into GM aftermarket product development.

ThesepointswillbeexpandedintherecommendationsprovidedinSection7ofthisreport.



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Date:FridayMay12,2017

activity: Scot Sharland

Position:ExecutiveDirector,AIAG

Place of activity:Southfield,Michigan,USA

The meeting with Scott Sharland at the Automotive Industry Action Group (AIAG) was prepared for by sending Sharland a back story on the purpose of the international travel, and he had prepared a presentation. Thepresentation described theAIAG’s strategy, its core tools and training, and also a survey that can be used toassessthecompetencyofanindividualintheseskills,whichisintendedtobedonebeforeandafterthecoursesare completed.

Discussions covered the creation of a product development course for smaller businesses who do not have businessesofthesizenecessarytotakeadvantageoftheOEAdvancedProductQualityPlanning(Daimler,Chrysler,APQP,2008).ScotSharlandmentionedthathehadthoughtaboutthisbutithadnotbeendoneyet.

ManyoftheprocessespublishedbytheAIAGarerelevanttotheaftermarketandmodificationindustryinAustralia,butwouldberequiredinarevisedform,modifiedforthedifferingeconomiesofscaleoftheaftermarketindustrydevelopment processes.

The Fellow considered the timing of this visit to be a perfect synergy with the visit to the GM Performance and Racing Centre,astheAIAGprocessescouldberecognisedasaframeworkforthestructuredintegrationoftechnologyintothe GM facilities operations.

The Fellow was searching for guidance through the early part of the international travel with regard to how the learnings from this travel could be integrated into a practical outcome that has value for the Australian industry. The directionofthisreporthasbecomeveryclearasaresultofthestudytrip,evenattheearlystage.



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Date:FridayMay12,2017

activity: Meeting with Bob Schechler

Position: Formula SAE Coordinator

Place of activity:MichiganInternationalSpeedway,Brooklyn,Michigan,USA

TheFormulaSAEeventisheldannuallybytheSocietyofAutomotiveEngineersInternational(SAE-I).

Theeventrequiresuniversitiestoenterapurpose-builtprototypecar,andcompetetoasetofrulesthatinvolveseventssuchasdesignjudging,commercialpresentation,costanalysis,andvariousperformanceandendurancevehicle tests.

Figure 11 – Formula SAE Cars Awaiting Competition

Theevent isheldforUniversitiesto involveengineering,marketing,business,andcomputersciencestudents inworkinginteamsonasignificantcrossfunctionalproject,whilstrecruitersattendtoidentifystudentsthatcanbeemployed in graduate intakes.

TheFellowwasemployedastheChiefExecutiveOfficeroftheSocietyofAutomotiveEngineersAustralasiaatthetimeofthetravel,andwasthereforetreatedtoaverydetailedtouroftheevent.ThisalsoallowedtheFellowtospeak with several teams and understand the design and manufacturing processes used in the presentation of cars for the event.



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Substantialnotesweretakenonhowtheuniversityteamsweredevelopingdifferentareasoftheirprojectcars,anditwasclearthatmostweretakingadvantageofsignificantresourcesbothinknowledgeandavailabilityoffacilitiesfrom their universities.

AlthoughtheFellowhassignificantexperience inproductdevelopment,speakingwithstudentswhosepracticalexperiencespansonlyafewyearsturnedouttobeoneofthemorevaluableactivitiesofthestudytrip.

TheFellowspent twodays at the event, and the learnings frombeingable to interfacewith somanydifferentuniversitiesinoneplacewasanamazingexperience.



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Date:MondayMay15,2017

activity: Meeting with Tom Wallace

Position:GeneralManageratXForceExhausts

Place of activity:Columbus,Ohio,USA

Tom Wallace greeted the Fellow in reception and described the X Force operation, including the process ofdevelopment, which is largely performed in China. Although X Force lead product development from theUSA, where manufacturing and development of the electronic controls necessary for the X Force product technology is performed in China.

A tour of the warehouse followed, and then the product was demonstrated on the company’s FordMustangthrough a test drive around Columbus.

Figure 12 – Tom Wallace and the X Force Ford Mustang Demonstration Vehicle

Theproductisanexhaustsystem,suppliedinseveralversionsthatincludea‘fullsystem’ora‘catback’system,whichisanexhaustthatreplacestheoriginalcomponentsfromtherearofthecatalyticconvertertotheoutletatthe rear of the vehicle.

TheXForceexhaustistunableonthevehicleviaelectronicallyoperatedcontrolboxesthatadjustbutterflyvalvesintheexhaust.ThevalvesopenandclosetocreateorreducebackpressureindifferentsectionsoftheexhaustandeffectivelymaketheexhaustsystemtunablefromaniPhoneapp,asyoudrive.

Thesystemworkedextremelywell,andwasveryfasttochangetheexhaust.Theexhaustcouldbetunedinandoutofexhaustboom,andthedrivercouldmaketheexhaustloudorquietthroughasimplecontrol.



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Figure 13 - The X Force Mustang Showing the Exhaust System Controls on the iPhone

WallacewasinterestedinthisISSInstituteFellowshipprojectandtheissueofmanagingcompliance,becauseheandhiscompetitorsaremarketingtheirsystemsasoffroadonly,eventhoughit’sprobablethattheyarebeingfittedto road vehicles.

Wallacehas identifieddevelopment forproductcomplianceasthenextstepforaftermarketexhaustsystems intheUSA.Wallacebelievesthatthefirstcompanytoachieveproductcompliance(toCaliforniaAirResourcesBoardstandards)willhaveamarketadvantageifitcanbedonecosteffectively,butheexpectsthatthiswillmostlikelyraise the price due to the costs involved.

ThisissueofproductcompliancebeingusedasavehicleforproductpromotionalsocorrespondstosomeexistingproblemsinAustralia,whereanobviousmisalignmentexistsbetweenregulatorybodiesandaverylargenumberofmodifiedvehicleowners.ItwasinterestingtonotethatthemisalignmentmaybeevenlargerintheUSA,andthatsomemanufacturers(suchasXForceexhausts)recognisetheissueandareconsideringoptionsandhowtheseoptions can be implemented to provide a marketing advantage.

Thishasprovidedasignificantlearning,andhasstartedathoughtprocessonhowtheAustralianindustrycoulddriveaprocessofcertificationtotheiradvantage.Possibleoutcomescouldbelocalindustryprotectionfromproductsimportedbylowcostcountries,andamarketadvantageforthoseinAustraliawhohaveinvestedappropriatelyinproductdevelopmentinaccordancewiththerecommendationsfromthisreportthathavebeenidentifiedinSection7.

Thereisachancethatanewconceptinreconnectingmodifiedvehicleownerstoregulatorystandardshasbeenborn as a result of this ISS Institute Fellowship.



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Date:TuesdayMay16,2017

activity: Meeting with Murli Iler

Position:DirectorofInternationalRelationsatSocietyofAutomotiveEngineersInternational(SAE-I)

Place of activity:Warrendale,Pennsylvania,USA

TheFellowwasprovidedatouroftheSAE-Ibuilding,whichhasabout300employees.TheSAE-Iisawell-knownUSbrandprovidingstandardsdevelopment,events,training,andpublicationsfortheautomotiveindustry.

Murli IlerthenintroducedtheFellowtothepublicationsmanager,whoprovidedadescriptionofthepublicationsdevelopmentprocess.Theprocessismostlyoutsourcedtopublishingcompanies,althoughtheSAE-I iscloselyintegrated to the content through a review process.

IlerthenprovidedamoredetaileddescriptionofcurrentinternationalprojectsandSAE-Ivision,andtheISSInstituteFellowship was discussed in detail.

TheFellowwasthenintroducedtoDavidSchutt,whowastheCEOoftheSAE-I,andageneraldiscussionwasheld over lunch.

TheSAE-Iwerewell informedof thechangingsituation for theautomotive industry inAustralia,andhadsomerecommendations on where future development in the global automotive world was heading. Iler and Schutt explained that theglobal automotive industrywasbeing facedwith twoof themost significant changes in thehistoryofautomotivedevelopment,wheremostengineerswouldbeluckytowitnessonechangeonsuchascalein a working lifetime.

Thetwochangesarethedevelopmentofnon-fossilfuelfueleddrivetrains(ie.theconversiontoelectricarchitecturesandthecorrespondingenergystoragesystems),andthechanges fromthecurrentelectronicdriversystemstothose required to support future vehicles as automated (driverless).

SchuttaddedthatourAustraliansituationhastheaddedchallengeofourOEmanufacturingindustryshuttingdown,making it more important that we develop our research and development industry in line with these new global developmentstopreservesomelevelofinvolvementintheindustry,offcourseifthat’sourintention(headded).

Neither IlerorSchuttwereabletoprovideguidanceontheaftermarketpotentialorhowwecoulddevelopnewindustry activity to replace theOEmanufacturing, as they commented that nobodywho they knew had beeninvolved with such a change. Governments of other countries simply did not allow OE automotive manufacturing tocloselikeisoccurringinAustralia,andhavetraditionallybecomeinvolvedtoreshapetheindustrytoallowittocontinue functioning as a manufacturer.

TheUSAandBritish industrieswere raisedasgoodexampleswhere the industry requiredmajorchanges thatwere driven through market forces and Government involvement. The Australian situation where the Government provided the catalyst for Nissan andMitsubishi, and then later Holden and Toyota to exit manufacturing wassomething that is unique in the automotive world.



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Date:MondayMay22,2017

activity:MeetingandFacilityTourwithStephanieMartinez

Position: Senior Coordinator – Product Development

Place of activity:DiamondBar,California

TheSEMAgaragecanbedescribedasa‘Techshop’(refervisittotheDetroitTechshopabove)forprofessionals.Ithasbeendevelopedtosupplyequipment,servicesandaccesstoinformationfordevelopersandmanufacturersofautomotive aftermarket products.

SEMAistheSpecialtyEquipmentMarketAssociation,andexiststosupporttheaftermarketproductmanufacturers.

Figure 14 – The SEMA Garage

ThevisitstartedwithatourofthefacilitybyStephanieMartinez,wholaterintroducedtheFellowtoMattCordato,thevehicleproductdataspecialist,andMikeSpagnola,whoistheVicePresidentforproductdevelopment.

Thetourcoveredthephotographicstage,theassemblyarea,thelaserscanningprocess,conferencingfacilities,3Dprinter(plasticsonly),andtheservicewheretheSEMAGaragehasanarrangementwiththeOEcompaniestoprovide members with CAD data to aid in the development of aftermarket products.

MattCordatothenexplainedtheuseofequipmentwhereSEMAsupportsmembersinreverseengineeringpartsthroughscanningandthenduplicatingperformanceelementsoftheoriginalpartintheirinternaldesign(material,wallthickness,etc).



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Figure 15 - A Vehicle on Test at the SEMA Garage Facility

TheFellowaskedabouthowthisprocesscompareswiththestateoftheartprocessesattheOEcompanies,wherethe SEMA Garage hosts commented that this function is managed by the members using the equipment.

Therefore,thetypesofequipmentavailableintheSEMAgarageshouldbeusedasastartingpointtoimaginetheprocessesbeingusedbytheSEMAgarageusers.Andthere’snocoincidencethatfurtherstudyonthistopicresultsinanexpecteduserprofilethatmatchesextremelywellfromearlierlearningsasaresultofvisitstoDana,Techshop,theGMPerformanceandRacingCentre,andtheIAIG.

It was also starting to become clear that this process and the competencies required to implement the process successfully should be documented in a format that can be easily consumed by the aftermarket industry.

ThishasbecomearecommendationofthisISSInstituteFellowship,andhasbeencoveredinSection7.



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Date: TuesdayMay23,2017

activity:MeetingwithJustinPadfield

Position:Proprietor,Scott’sHotrods‘NCustoms

Place of activity:Oxnard,California,USA

TheFellowvisitedJustinPadfield,whooperatesacustomvehiclefactory,capableofgroundupmanufactureofchassis,suspension,steering,brakes,andbodiesforcustomvehicles.

Theoperationismainlymanufacturingthroughfabrication,machiningandassembly,withsomeproductdevelopmentinprocessthroughJustin’sexpertiseinthedesignandproductionofcustomvehiclecomponents.

TheweldingandmachiningoperationsarestapleservicesinfactoriessuchasScott’sHotrods‘NCustoms,andtheir operation in this regard was among the most developed that the Fellow had witnessed.

Figure 16 – Scott’s Hotrods ‘n Customs Independent Front Suspension ‘Bolt-on’ Kit

TheFellow’simmediateimpressionwasthatproductdevelopmentatScott’sHotrods‘NCustomswasaresultof‘hardwon’outcomesfrombuildingandtrialingcomponentsovermanyyears,thedesignandworkmanshipwaseasyidentifiedashighquality.

It was clear that the task for this ISS Institute Fellowship project is to reverse engineer the process itself to achieve outcomessuchasScott’sHotrods‘NCustomswasabletocreate,andreplicatetheskillsetneededtoproducecomponentsatthatlevelofdesignandworkmanshipatamorefavourablerateforstart-upcompanies.Thiscouldprovide an aid to companies in Australia that is not currently available in the automotive aftermarket.

Inrealitythistaskofdevelopingaprocessthroughreverseengineeringofproductoutcomesshouldbenodifferentthan reverse engineering a front suspension upper control arm for example, as the same processes apply todevelopment of a process as they do to a physical component.

Someeffortwasinvestedinthisprocess,whichhasledtotheidentificationoftheelementsincludedinSection6below.



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Date:WednesdayMay24,2017

activity: Meeting with Chris Coddington

Position:Proprietor,HotrodsbyBoyd

Place of activity:Orange,California,USA

TheFellowtravelledtoChrisCoddington’sshopforatourofhiscustomwheelbuildingfactory.

ChrisCoddingtonisthesonofthehighprofilehotrodbuilder,BoydCoddington,whopassedawaywhilstatthepeakofhisfame.BoydCoddingtonbuiltsomeofthemostfamouscustomvehiclesinhistoryforsomeverywell-knownrockstarsandindustryidentities,andisrememberedalegendintheindustry.

Figure 17 – ‘Cadzilla’ by Boyd Coddington was built for Billy Gibbon of the band ZZ Top, and is one of the most famous custom vehicle builds of all time

Chris Coddington was generous with his time and provided a detailed a tour of the wheel building factory.

ThewheelsweremadebyCNCmachiningoperationstocreatethecentre,whichwasthenweldedtoarimthatwas purchased from an outside company.

ChrisCoddingtonexplainedhowheselectsnewwheeldesignsandhowtheprocessofdeterminingwhetheranewdesignrequiresnewtesting,orwhetherithasdesigncuessufficientlyderivativefromanotherdesignsuchthatatestingandvalidationprocessisnotrequired.Therewasnodocumentedprocessforthis,butreliedonpersonalopinion.

Although theprocesswasnotpresented insufficientdetail toenable theFellow tounderstand the logicof theprocess, the informationwasusefulasa thoughtstarter,ascomparativeverification isaprocessat thecoreofcustomvehiclevalidation,andprovidesavaluableinputtothedevelopmentofacomponentcertificationprocess.

Therefore, the visitwas valuable inproviding thebuildingblocks for several of theprocesses referred to in therecommendations of this report.

6. knoWleDGe TRansfeR: aPPlYInG THe oUTCoMes


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The ISS Institute Fellowship and the international travel were conducted to search for answers to local situations outlined in Section 2 above (Aims of the Fellowship Program). The site visits and meetings were chosen to interface withthosewhowereidentifiedasmostlikelytobeabletoassistwiththeserequiredoutcomes.

Theinternationaltravelhasbeenusedtoidentifysolutionstothelocalissuesthatwerecoveredabove.Insummary,thelocalneedsidentifiedthroughthisstudyare:

1. Aproductdevelopmentprocessspecifictoautomotiveaftermarketproducts

2. Aprocessforidentifyingappropriateevidenceforvalidationofvehiclemodifications

3. A point of sale aftermarket product accreditation process

4. RecommendationsforskillsrequiredtofillthecompetencygapintheAustralianindustry.

6. Knowledge Transfer:Applying the Outcomes

7. ReCoMMenDaTIons


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7.1 Development of an Aftermarket Product Development Process7.1.1 The Need for an Alternative ProcessTheneedtocreateaspecificproductdevelopmentprocessforthemodifiedvehicleindustryhasbeenafeatureofthisISSInstituteFellowshipprojectfromthestart,althoughtheprojectasawholehaschangedsubstantiallyinitsgeneral objectives over the duration of the study.

ThecontentcoveredbelowisbasedonmodificationofgenericprocessesusedthroughouttheFellow’s28-yearemployment history in the area, butmodified substantially for theAustralian aftermarket industry as a result oflearnings from the international travel through this ISS Institute Fellowship.

AsignificantoutcomefromtheFellowshipvisitswasaroundtheproductdevelopmentprocessandtheroadblocksindevelopment,implementation,andresourcingofarobustprocesstomatchthescaleofthebusiness.Twokeypointswereexpressedbythosewhowereinvolved.

ThefirstpointwasinregardtotherelevanceofOEtraineddevelopmentengineerstotheaftermarketindustry,andthe other was the fact that very few of the companies visited during local visits and international travel had visible evidenceindicatingtheexistenceofastructuredproductdevelopmentprocess.

ThefirstofthesepointsisofsignificantconcerntotheFellow,whowastrainedformuchofhiscareerintheOEindustry. Discussions with recruiters and senior leadership in several of the major (Melbourne based) aftermarket companies identified that they would not hire OE engineers in their product development and manufacturingbusinesses.

Thereasonswereadvisedastwofold,onebeingthelevelsofspecialisationfoundintheverylargeOEdevelopment‘factories’whereengineersaresometimes‘institutionalised’asproductspecialistsforalargeportionoftheircareerinaverynarrowfield.Incontrast,aftermarketbusinessesgenerallyrequireengineerswithtechnicalknowledgeinawidervarietyofproduct.Thelattersituationgenerallyrequireslessengineerstocovermorefunctionalareas,whichreduces project resource costs.

ThesecondissuehighlightedwastheopinionthatOEengineersspendlongerworkingonaparticulartask,wherethe aftermarket industry is geared towards comparatively higher levels of risk in product realisation. The end result ofthelatterisaverymuchmorecompressedtimeline.Eachoftheseniorindustry‘figureheads’consultedonthismatterhadexperiencednegativeoutcomeswithOEengineersinthepastalongoneorbothofthesestreams.

And in terms of the presence of a robust product development process in some of the local and international businessesvisitedthroughthisFellowshipprogram,itwasobviousthatmanyoftheproductsbeingmanufacturedweretheresultofmanyyearsofproductdevelopmentbyveryexperiencedpeople.Andsincetheleveloftechnicalknowledgerequiredtodevelopnewproductsinrapiddevelopmentprojectsexistsinveryfewseasonedindividuals,theneedforaguideto‘fasttrack’thisdevelopmentactivitythroughastructuredprocesswasclearlyvisible.

Theobjectiveisto‘buildin’elementsofastructuredproductdevelopmentprocesstoatleastinpartcompensatefor advantages in product knowledge that is generally only possible after many decades of product development experience.TheFellowbelievesthatthisoutcomeispossibleinastructuredprocess,althoughsomesignificantpreparation will be required on behalf of the business using the process.

7. Recommendations

7. ReCoMMenDaTIons


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Tosummarise,manyaftermarketbusinessesimportingorproducingautomotiveproductsexpressedaneedforastructuredproductdevelopmentprocess,andtherequiredprocesswouldbeverydifferentinaftermarketoperationsthanOEvehiclemanufacturers.Theprocessmustbestructured,easytolearnquickly,allowflexibilityinresourcesand timing, and be comparatively efficient in terms of cost, in comparison with existing product developmentactivities.

AlthoughthedifferencesbetweentheaftermarketcompaniesandOEoperationsaresignificant,anydevelopmentofaproductdevelopmentsystemwouldbederivativeofOEtools.Therefore,toprogressthisunderstandingfurther,thefollowingdistinctionshavebeenidentifiedbetweenthetwoindustriestoaidinthedevelopmentofaneffectiveprocess for transition.

7.1.1.1 RiskTheriskprofilebetweenOEandaftermarketbusinessesdifferssignificantly.TheOEmanufacturersbuildhundreds(or thousands in thecaseof thehigher volume internationalplants) of vehiclesperday, andutiliseengineeringgroups of more than 1000 engineers and technicians over a period of several years to develop a new motor vehicle. Toprovidesomeperspective,Fordcurrentlyhas1750engineersworkinginitsAustraliandevelopmentfacility,allofwhich are focused on model variations for one carline (the T6 platform of which the Ranger and Everest are variants).

Thislarge-scaleproductdevelopmentoperationistoensurethatproductdefectsarekepttoanabsoluteminimum,and the cost of development and rectification after start of production is alsominimised. The payback for therelatively large investment in resources and development can be recovered through the very high sales revenue when the product is sold in large volume.

Incomparison,themajorityofaftermarketbusinessesoperatinginAustraliaareSMEs,asonlyaverysmallnumberofthelargercompaniesexceed250employees.Accordingly,thesebusinessesdevelopproductsforsaleatverymuchsmallervolumes,whichallowssomeproductdevelopmenttobeperformedwithcustomerswhereupdatescan be performed without impacting brand damage. This subsequently reduces the investment in resources and costsduringdevelopment,asprofessionaldriversandtestfacilitiesarerarelyrequired.

Therealityisthataftermarketbusinesseshaveverymuchsmallerinvestmentbudgets,andflexibilityexistswherecustomerscanbeexposedtohigherlevelsofproductdefectinthefieldbeforecustomersatisfactionproblemsorbranddamageresults.Infact,manyaftermarketcompaniesallowproductvalidationtomergewithcustomerusage.

It is also true that aftermarket businesses are able to feasibly introduce product updates during the production lifecycle,asaresultofthesmallernumberofproductswithcustomersthatmayrequireissueresolutionorupdating.Theriskinmanagingtheeffectsofchangeisfurtherreducedbythefactthatthecostofdesignortoolingchangesis relatively smaller in comparison with changes to OE tooling in the volume environment.

Thisreportwillfocusontheconceptualisationofaprocessachievingsafety,regulatory,andvalidreliabilityoutcomesduringthedevelopmentprocess,whichisnodifferentthanstateoftheartOEprocesses.However,thisdifferingriskprofilecombinedwiththenatureofthedesignsbeingsimplerinnature,allowsforverificationoftheseelementstobe completed much later in the development process.

7.1.1.2 CostProductionvolumeiscloselylinkedtoriskthroughthesignificantcostsinvolvedwiththereworkofdefects.Onlya few days of volume production can require weeks to rework if defects are found. And the costs of changing OE tooling,whichisgenerallyrobustandautomated,isextremelyhigh.

However,productdevelopmentcostismorelikelytobethereasonwhystructureddevelopmentprocesseshavenot been sought by aftermarket manufacturers.

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This is because nature of automotive aftermarket SMEs is that they are often owned or operated by very practical people,predominantlywithtradebackgrounds. In fact, thesebusinessownerswerefoundbytheFellowduringtheprocessof this study tobesopractical that anythingconsuming timeand resourcesexpendedduring theproductionprocessrisksbeingidentifiedasawasteunlessitisdirectlyconnectedtoproducingaphysicaloutcome.

Andsinceanefficientdevelopmentprocess foraftermarketbusinesseshasnot yetbeendevelopedandmadewidelyavailable,theonlyavailableprocessesarethosecurrentlybeingusedinOE.Andthesearedefinitelynotcosteffectiveinthevastmajorityofaftermarketoperations,andwouldclearlyfailthe‘wasteoftime’test.

In summary, it is obvious that a company with in excess of 1000 product development engineers will havesubstantiallylargerbudgetsthanabusinesstypicallyemployingbetweenzeroandfiveengineers.ThisrequiresafundamentallydistinctprocessforthoseusedinOEtobecosteffectiveintheaftermarketindustry.

7.1.1.3 Time to MarketAustraliaisarelativelysmallmarketincomparisonwithmanyaroundtheworld,althoughthevariationinautomotiveproductsavailableisamongthedensestintheworld.Thereareinexcessof60differentautomotivebrandsbeingsoldinAustralia,whichdictatesthatthereisalimitednumberofcustomersineachmarketsegmentforproductspecificcomponents(exhausts,bullbars,superchargers,etc)inwhichanewproductcanbesold.

But where OE markets can respond to a new imported model within a year and a facelifted locally manufactured model within 2-3 years, aftermarket development product programs can be measured in weeks or months.Furthermore, the landscape isextremelycompetitive incompaniesneeding tohavecomponentson themarketsoon after new OE models are released to be successful.

7.1.2 Conceptualising a New ApproachThe risk, cost, and time to market quotient of the OE operation necessitates a structured resource and riskmanagementprocesstoensurethatkeyactivitiesareidentified,confidencelevelsagreed,tasksscheduled,andallis completed in accordance with master timing for the project.

The ability to identify the correct balance needed to compress projects to the minimum project duration and achieve themaximumpossiblelevelsofsuccessarecriticalintheaftermarketindustryduetothelikelihoodofcompetition,andthisiswherethemajorbenefitfromastructuredprocessexists.

Thekeypointhere is to realise thatOEprocessesare largely timebased,whereapredeterminedsequenceofactivitiesstartsandendsinaspecifiedtimeframe,withaspecifiedbudget,andwithaspecifiedconsumptionofresources.Theflexibilityisincompressingorexpandingeachofthesevariablesdependingonthecomplexityandrisk inherent in the required outcome.

However,aftermarketproductdevelopment isverydifferent,whichiswhythisstudyrecommendsthatthetime-basedprocessoffollowingasystematicandsequentialorderoftasks(eventhoughthetaskscanbe‘flexed’forsmaller,largerorriskindifferentdevelopmentprograms)isnotappropriateforaftermarketproductdevelopment.

Rather, theactual tasks,theirorder,andtheirprioritycanbedeveloped intoasequenceofactivitiesnot fromatimebasedsequentialprocessofactivities,butfromariskbasedmodel,wheretherisksareidentified,prioritised,and managed according to the impact of potential outcomes in reference to what could occur to the user and the business in the worst case.

Thisbrings theproductdevelopmentprocesscloser to realitybyconsidering ‘whatcouldgowrong’and ‘whatdamagecouldoccurasa result’anddevelopingaseriesofactivities tocontrolpotentialanswers to these twoquestions. The collection of activities that arise are prioritised and regarded as the product development process.

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7.1.3 The Development Process StructureGeneric product development processes used in OE operations are based on the sequential achievement of a numberofdifferentsteps.Eachgroupingoftasksiscalleda‘step’ora‘stage’(theywillbereferredtoasstepsforthe remainder of this report).

Thenumberof steps and the arrangementof activitieswithin the steps varieswith specific applicationsof thegenericprocess,butthegeneralprocesshasbeenfoundtobesimilarbetweenOEcompanies.Andit’salsotruethat each step is generally closed throughmanagement review of outcomes prior to the next step beginning,although there are processes that allow overlaps in some circumstances.

This basic model is where the approach by OE companies and that proposed by this study diverges.

The Fellow believes that it is a distinct requirement of a risk based process to include several iterations or development loopsduring theproduct realisationprocess,andaprocess forcontinuous improvementafter startof saleableproduction must be added.

The purposeful addition of the continuous improvement process is required, as product development andcontinuous improvement are normally considered separate activities in OE product design. This is possibly due to the need in OE to manage risk to the stage where development failures occur during the company controlled testing environment,notintheplantorfield,wherereworkcostsandthepotentialforbranddamagearetraditionallyhigher.

Aftermarketprocessesdiffer,astheycantolerateamorecontinuousflowofproductchangeupuntilandevenafterthefirstcustomersaleableproductsareproduced.Infact,thereappearstobelittlereasonwhysomeaftermarketproducts(exceptingthosetightlycontrolledbymandatorycertification)shouldeverhavetheirdesignfrozen,hencethe applicability of continuous product improvement.

Figure 18 – The proposed product development process incorporating a continuous improvement loop

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Itshouldbeidentifiedthatdevelopmentandvalidationofariskbasedproductdevelopmentprocesstothelevelofsophistication appropriate for dissemination as a statutory code of practice has been determined to be outside the scope of this ISS Institute Fellowship project.

Therefore,thebelowcontenthasbeenintendedtoprovideaconceptfromwhichaprocesscanbebasedforfuturedevelopment and recommendation as an industry code or practice.

step 1. Product Planning1. Nomination, and publishing of the project team – where a Project Owner, Project Manager, Project

Stakeholder, and Project Team Members are defined and a RASIC developed to identify their specificresponsibilities on the project

2. Development of a business case – that includes total project and product costs and market research todefinethemarketdemand

3. Development of a Draft Timing Chart –whichincludestheprojectstart,saleableproductionstartdate,andalloftheSteps2-5below.Itshouldcoverabreakdownoftheassociatedactivities,theirdurations,resources,and links between predecessors and successors developed

4. Project status reporting and reviews – whichincludetwoseparatereviewsinaweeklyprojectmeeting,and a step closure meeting to agree on closure on completion of the activities planned for that step. Theformats for review of issues and tracking of issues should use a standard single page issue summary and openissuesstatusreport,bothutilisingastandardisedred/yellow/green/bluestatus

5. Document Control –todefineastructuredprocessoffilingprojectdocumentsandrecordstoallowaccessandefficientretrievalofprojectdocumentsbytheworkingteam

6. A checklist for closing the product planning step – which is completed at the step closure meetingthroughansweringofpre-formattedquestionsregarding theprogressmadeagainst thedeliverablesof thestep

Step 2. Concept DefinitionThisisthestepwheretheproductconceptiscreated,andwillincludethefollowing:

1. Definitionofwhichvehiclestheproductcanbeusedwith/on/for,andwhatlimitsapplytofuturedevelopmentthat could require changes in the product

2. Clear criteria on the purpose of the product proposed for development

3. Defineanyboundaryconditionssuchas‘mustretaincompliancewithADRXX/XX’or‘mustbesaleablebyxx/xx/xxx’

4. Develop a design concept (called Design Assumption Sheet in OE) which includes a bill of materials anda simple sketchof all components involvedwith asmuch information aspossible onmaterial, productionprocesses,importantfitsandinterfaces,regulatorycompliancerequirements,etc

5. Developalistofprojectrisks,thatmayincludekeyclearances,knockonmodificationsthatmayberequiredtothevehicletoachievethecorrectinstallation,anysupplierissuesthatmaybevisiblewithcomplexorcostlyparts,etc.

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6. Cleardefinitionofthescopeoftheproject,whichmayincludeorexcluderegulatorycertification,thenumberofpre-production(prototypeandpilot)builds,thenumberofpartsthatwillbeproducedovertheproductlifecycle,statisticalfailurerates(B10lifeorsimilar),etc

7. Review of lessons learnt from previous projects for inclusion and consideration of warranty or customercomplaints that would be eliminated in the new product

8. Development of the statements of work (SOWs) to provide the detail required to support the activity andcompletion criteria for each line in the timing chart

9. Riskidentification,prioritisation,andmanagementofriskstodevelopspecificprojectactivities–refer7.1.4below for a description of the concept of this project element

10. Collation of tasks from point number 9 into a working Gantt chart

Thisstepisclosedwhenreviewofprojectstatusincomparisonwithchecklistdeliverablesconfirmsthatallobjectivesofthestephavebeencompleted,whichallowsthenextsteptobegin.

step 3. Design and DevelopmentThis is thestepwhere the inputs identified in theconceptdefinitionstepareused, the tasks identified throughthefailuremoderiskdevelopmentprocessareexecutedandthedesignanddevelopmentprocessresultsinthecreationofCADmodelsforcomponentsandassemblies,andthesuiteofdrawingsarecreated.

Productverification is thencompleted inaccordancewith that identified in theconceptdefinitionstep.ThefirstanalysisisconductedusingFEA,andanydesigntuningcompleted,whichisthenfurtherdevelopedthroughtestingof mockup and prototype parts.

Onachievementofsuccessfultestresultsfromphysicalparts,theresultsarethencomparedtotheresultsfromthesamedesignlevelofFEAresults,therebyallowingtheFEAmodeltobeverifiedforkeycriteria.Thisverificationprocess then allows FEA testing to be used for any product tuning.

The continuous improvement process (incorporating a problem-solving process and issue tracking process) isstarted,andallissuesaretrackedthroughthisprocess.

Thedevelopmentofthemanufacturingsystemandrelatedcontrolplans,statementofrequirementsspecificationtostartthesuppliersourcingprocess,andanylong-termdurabilitytestingiscompleted.


step 4. Validate and ImplementThisstageiswhenthedesignhasbeencompletedandfrozen,andmarksthepointinwhichachangemanagementprocess begins for all product and manufacturing system changes.

Designandmanufacturingproductionrepresentativepartsaremade,theproduct(throughvalidationtesting)andthemanufacturingprocess(throughmeasuringqualityprocessoutcomes)isconfirmedasmeetingallcustomerandcompanyexpectationsasdefinedintheconceptdefinitionstep.

Anyoutstandingitemsofnon-compliancearemanagedthroughthecontinuousimprovementprocesstoresolution.

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step 5. Production and saleOncompletionofthevalidationstep,allproductandprocessvalidationsarefinalised,andproductissuesshouldhavebeencompleted.Thedecisionshouldhavebeenmadeinstep4tostartsaleableproductionofproduct.

Financialperformanceisverifiedtomeetoriginalplanning,andcorrectiveactionsimplementedtoachieveoriginalprogramrequirementsiffinancialdrifthasresulted.

Thecontinuousimprovementprocessthenoperatestomanageanyfieldissues,andimplementcostreductionsoverthelifeoftheproduct,dependingonthelevelofresourcesapplied.

7.1.4 Using Risk Processing to Build Project Deliverables

7.1.4.1 Developing Potential failure ModesThe mechanism proposed as a base for developing project deliverables through risk based assessments is Failure ModeandEffectsAnalysis(DaimlerChryslerCorporation,FMEA,2001).FMEAis aprocessthathasbeenusedforseveraldecadesinOEoperations,butisbeingproposedforaftermarketproductdevelopmentuseinasubstantiallymodifiedform.

The process starts with a brainstorming session to identify all possible modes in which the production or operation of the product could fail to achieve outcomes acceptable for product performance. The session needs to be facilitatedbyasmallgroupconsistingof4-8people.Allmembersofthegroupmustbeexperiencedinoneormoreof:

» Design and development of the product type

» Manufacturing processes required to realise the product

» An understanding of how the product will be installed

» Specificknowledgeassociatedwiththesaleanduseoftheproduct.

Apartfromadministrativesupportorskillsdevelopment,thereshouldbenofurtherparticipantsinthisprocess.

Therearefewrulesinvolved,butit isveryimportantthatall involvedshouldbeabletofreelyparticipate,andnoideasshouldbediscountedpriortoariskassessmentratingapplied.However,for‘unconventional’ideas,theriskassessmentdefinedbelowmaybecompletedinparalleltoeliminateideaslesslikelytoproviderealvaluefrombeingcarried to the risk assessment and rating stage that will immediately follow the brainstorming process.

Otherwise,theriskassessmentprocessisrecommendedasbeingperformedafterthefull listofpotentialfailuremodes has been created.

Thesessionlengthwillvarywiththecomplexityoftheproduct,butatimelimitshouldnotbeimposed.Sufficientresourcesmustbeinvestedincompletingthisactivitytoachieveanexhaustivelist,withtheaimbeingtofindallpotential modes of failure before customers do.

Asageneralguide,thesimplestproductdevelopmentFMEAsessionswouldrequirefourhourstocomplete,andanFMEAthatrequiresaweektocompleteshouldnotbeunexpected.

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The list needs to consider all forming,machining, fabrication, assembly, and packaging operations during themanufacturingprocess,andthenidentifyallissuesthatacustomermayhaveintheunpacking,installation,anduseoftheproduct.Thislistshouldalsoincludetimebasedfailuremodes,suchascorrosion,fatigue,advancementofparalleltechnology,andalsoincludecurrentandpossiblefuturechangesinregulatoryrequirements.

7.1.4.2 Risk Rating of Potential failure ModesAfterthelistofpotentialissueshasbeendeveloped,eachoftheissuesrequiresriskrating.

An aftermarket product development version of risk rating levels has been proposed below. The number is the risk rating,andthedescriptionoftherisklevelisusedtoidentifywhichrisklevelnumbertouse.Thisprocessistobeusedfortwoparametersthatare‘severity’and‘occurrence’,andaremultipliedtodeterminetheriskratingforthatfailure mode.

Note that this proposed risk rating process is different to that of traditional FMEAs, where traditional FMEAsgenericallyuseasmanyas10levelsofriskrating,andalsoincludeanadditionalmultiplierfor‘detection’.

The detection multiplier has not been included in the proposed model due to the relative nature of aftermarket productsbeingproduced in lowervolumesthana fullvehicle. Instead,detectionhasbeenbuilt into thecontrolactionidentifiedbelowasprescribedrequirements.

ThisisproposedasamorepracticalapproachwithabettermatchforthedifferencesbetweenOEandaftermarketproduct development and manufacturing operations.

The multipliers are proposed as:

severity5. Hazardous –whenthefailurecouldoccurwithoutwarning,thefailurewouldresultinasafetyrisktotheuserorothers,orcouldresultinaregulatorycomplianceissue

4. High – when the product failure could cause a loss of function of the product or cause the vehicle to be inoperable

3. Moderate – whentheproductfailurecausesittobeinoperable,butdoesnotaffecttheoperationofthevehicle.Thislevelcanonlybeusedwheretheproductisinoperable,butonlycustomerdissatisfactionresults

2. low – when the failure would only be noticed by discerning customers. This can only be used if a failure hasoccurred,andtheproductisstillabletofunctionwithinexpectedoperationalparameters

1. Very low –whenthefailurehasoccurred,butisnotabletobedetectedbytheuserorothersinanycircumstances.

occurrence5. All Product

4. SeveralProductsPerWeek

3. Several Products Per Month

2. Several Products Per Year

1. Noneexpected

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Simplyrevieweachissue(asagroup,allparticipantsintheFMEAmustbeinvolvedwitheachstepoftheprocess),and apply a rating for severity and occurrence.

7.1.4.3 Creating Development activities from Risk RatingsThe two numbers derived for each potential failure mode are then multiplied to create the Risk Quantity (RQ) for each potential failure mode. These risk prioritisations are proposed through using the table from Figure 19 to derive an activity for each risk rating.

Figure 19 – Proposed Risk Prioritisation Chart

Potential failuremodesrequirecontrolactions inproportiontotheirriskratings,sotheactionsrequiredfortheircontrol are proposed as:

Red area – High Risk RatingThe failure modes rated as high risk must have a validation plan developed and a statement included in the ‘outcome’columnoftheFMEA.Thisstatementofcomplianceshouldrefertotherequirementthatanacceptedteststandard be used. Evidence of compliance should be from test results to an accepted test. An alternative process ofcompliance(comparativeassessment,developmentofanewteststandard,simulation,etc)canonlybeusedforhigh risk controls if this approach is approved in project documentation by the project owner and an appropriately qualifiedpersoninthatfieldofengineering(consultantsrecognisedbyregulatorybodiesforexample).

Conformity of production (quality) for high risk potential failuremodes requires single piece inspection, signoff,anddocumentation to allow traceability. This subsequently requires the part number and a serial number to be marked on the product.

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Yellow area – Moderate Risk RatingThe failure modes rated as moderate risk must have a validation plan developed and a statement included in the ‘outcome’columnoftheFMEA.Thisstatementofcompliancemayrefertotherequirementthatanacceptedteststandardor alternativeprocessof compliancebeused, although levelsof evidence (referSection7.1.5below)appropriatetotheriskratingcanbeapprovedbytheprojectmanagerorbyanappropriatelyqualifiedengineerinthatfield.TheseapprovalsandthelevelsofevidenceusedmustbedocumentedintheFMEAdocumentation.

Green area – low Risk RatingNospecificcontrolsareproposedforriskratingoutcomesinthegreenarea.

7.1.4.4 levels of evidence for Validation to alternative Processes in Product DevelopmentA hierarchy of processes for validation has been proposed below. This hierarchy starts with product validations used inOEoperations,butalso includesalternativeprocessesfitting lowerriskratingsandlowerproductionvolumesassociated with typical applications of product development process in the aftermarket industry.

The hierarchy is proposed as:

1. Atesttoanestablishedstandardforthetypeofproduct,suchasanAustralianDesignRule(InfrastructureandRegionalDevelopment,2017),oradurabilitytestwheretheschedulehasbeenderivedfromcustomerusageovertheexpecteduseandlifeoftheproduct

2. An alternative process comprising reverse engineering a comparative component or sub system that has beencertifiedtoanestablishedteststandardasdefinedinpoint1,above.Thisrequiresthekeyparameterstohavebeendevelopedbyanappropriatelyqualifiedpersoninthatareaofengineering.Thisprocessincludestheuseof‘judgementletters’ashasbeenusedinOEengineeringforseveraldecades

3. Useofanalternativeprocesswhereacomponentthathasbeenvalidatedandcertifiedforuse inasimilarapplicationisused.Thisallowsevidencetobedeveloped,iftheenvironmentinwhichtheproductoperatesisidenticalintermsoffatigue,environment,functionality,etc.Thisoptionisasubsetofpoint2.above.

4. Throughuseofsimulationorcalculationsasanalternativetoateststandardasdefined inpoint1.above.Thisrequiresvalidationofthecalculationsorsimulation(usuallyFEA)model,andanappropriatesafetyfactorapplied,requiringtheresultstobeatleastoneorderabovethesafetyfactorrequiredtoeliminatetheeffectofany variation (found through validation of the model) on the proposed result

5. To an applicable standard that has been published by a regulatory body that is relevant to the market orlocation in which the product will be sold. The standard may be performance based or prescribed.

Thepointisthatevidenceofcompliancefornon-criticallyratedpotentialfailuremodesdoesnotrequiretestingtothesameprocessesusedtocreatelevelsofconfidenceinthetestoutcomeasisnormallyusedinOE,althoughtheperformance result can never be downgraded.

Thismeansthatanalternativeprocessofdemonstratingcompliancecanbeused,althoughthisalternativeprocesscannot be an opinion. It must be based on conclusions or result developed from a logical process of assessment or test in accordance with the hierarchy listed above.

Thefinalpointrequiredontherelevanceoftesting isthatstatisticalanalysisof thenumberofsamples,andthenumber of cycles or duration of each test can be used to develop a statistically relevant probability regarding the confidencelevelsrequired.Thiscanbeusedtoreducethetestingtoaminimum,whilstsimultaneouslyallowingthe

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productdevelopmentprocesstoreducetheimpactoffailuremodestoextremelylowprobability.

This process is outside the scope of this study and several approaches to achieving these outcomes are currently inuseinOEoperations.Furtherdevelopmentoftheseprocessescouldyieldvalueforaftermarketoperations,andhas been included in Section 7.1.5 below.

7.1.4.5 Developing and Documenting Risk Derived Project DeliverablesThesectionsabovehaveguidedtheprocessofdevelopingalistofpotentialfailuremodes,derivingriskratingsforeachfailuremode,andapplyingthoseriskratingstodetermineanecessarylevelofriskcontrol.Theseriskcontroloutcomes can now be used to specify requirements for development and product validation activities to be carried out through the duration of the project.

The next step is to use the criteria supplied in sections 7.1.4.3 and 7.1.4.4 to develop the required validationoutcomes(listedaboveinhierarchyofprocessesforvalidation),intheoutcomecolumnoftheFMEAdocumentation.AnexampleofanFMEAdocumentisprovidedinFigure20.

Figure 20 – Example of a Proposed FMEA document

The control for each line item of the FMEA with a risk rating of high (red) or moderate (yellow) must be included as an activityintheprojecttimingplan.Theactivityrequiredshouldbefurtherexpandedinprocess,requiredoutcomes,andcriteriadefiningwhen theactivity iscomplete,anddocumented in thestatementsofworkasdescribed inSection 7.1.3 above.

7.1.5 Further Development OpportunitiesSeveral conclusions have been drawn through the process of creating the risk based product development process proposed in the sections above. These conclusions have been developed through a combination of personal learningbytheFellow,andthroughobservationsandthoughtprocessesinitiatedasaresultofactivitiesfromthisISS Institute Fellowship program.

However,itcouldbearguedthattheconclusionshavenotbeentested,supportingprocesses(suchasDesignforSixSigma(Chowdhury,2002)andotherstatisticalprobabilityandreliabilityprocessescurrently inuse)havenotbeenanalysedorcompared,andtheirvaluetothisproposedproductdevelopmentprocessevaluated-aswouldbe the case through a structured academic research project.

Therefore,theFellowproposesfurtherstructuredresearchinthisareaasapotentialfutureoutcome.

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7.1.6 Implementation of a Code of PracticeSufficientdetail hasbeen included in thisproposal for a riskbasedproductdevelopmentprocess to form thebeginning of a project aimed at creating a novel product development process matched to the requirements of aftermarket product development. The intention is for this process to be developed further and associated with all corresponding process documentation and formats for use in the process.

The process can then be published independently or submitted for possible adoption as a statutory code of practice for the industry.

7.2 Further Development of Levels Evidence for Regulatory ComplianceThis issuehasbeen raisedonseveraloccasions throughworkwithVicRoadsonderivativeprojectsof this ISSInstituteFellowshipReport,andalsothroughtheFellow’sownthoughtsonachievingconsistencyinhisinvolvementwithmodifiedvehicleprojects.

Theproblemexistsintheinterpretationoftheprocessusedtodemonstratecomplianceofvehiclemodificationsusing alternative procedures in the assessment process.

This is because design and performance requirements relating to safety and the environment for new car design andmanufactureareprescribedingovernmentmandatedstandardscontainedinAustralianDesignRules (ADRs). These standards define a system to allow compliance to be demonstrated, and are supported bycommunicationscovering aspects such as the procedure for selection of test samples. The standards also prescribe minimum requirements in the type and quality of evidence required to verify that the design or performance standards have beenachieved,whichisakeypointtorecognise.

Theseminimumrequirementsmaybethroughsupplyofresultsofanexperimentallyvalidtest(performancebasedverification),oracheckthataproductisconfiguredinacertainway(prescriptiveoroutcomebasedverification).Orinsomecases,theremaybeanacceptancethattheproductbemanufacturedortestedtoanexternalstandard.

Thissystemappliestovehiclespriortofirstregistration,whereapackagecomprisingtheevidenceofcomplianceforthespecificvehiclemodelissubmittedbythemanufacturerorimporterforapproval.

Thesubmissionpackageidentifiesthevehiclemodelandcontainsasummaryofevidencesupportingitscompliancewith relevant ADRs. The ADRs applicable to a vehicle are derived from tables that allow cross referencing the categoryof the vehicleand thevehicle’sdesignatedmodel year.A vehiclemustcomplywithallADRs thatareapplicabletoit,inaccordancewiththevehicle’scategoryanddateofmanufacture.

ApprovalforcompliancegrantedthroughthisprocessauthorisesthemanufacturerorimportertofitanidentificationplatetocertifythatthevehiclecomplieswiththerequirementsoftheCommonwealthGovernment’snewvehiclecompliance scheme.

However,asystemexistsformodifiedvehiclesinadditionaltothisCommonwealthregulationandapprovalprocessfornewvehicles.Thatisbecausevehiclesinuseareregisteredthroughstatebasedsystems,wherethestateshavelawsandprocedurestodefinehowmodificationstovehiclesaremanaged.

‘Assessable modifications’ are changes to the vehicle in particular areas that affect this original (new vehicle)compliancewith safety and environmental standards. The reasons formodificationsmaybe tocreate featurestoallowusebypeopleorbusinesseswithspecificneeds,ortocustomiseavehicleforaestheticorperformancereasons.

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Moststatesregardtheuseofamodified(ornon-standard)vehicleanillegalactunlessthemodificationshavebeenperformed in accordance with the requirements of the applicable state registration authority, or have beenapproved by the applicable state registration authority. This law hasCommonwealth significance through theMotor Vehicle Standards Act 1989 (Office of Parliamentary Counsel, 2015) and the Victorian Road Safety(Vehicles)Regulations2009.

The separation of responsibilities is such that the Commonwealth Government specifies the procedures andstandards for volume production or importation of motor vehicles, and the states retain the responsibility forregistrationof thevehicle.Therefore, it isalso true thatCommonwealthGovernment involvementendswith thevehiclebeingfirstregistered,afterwhichthevehicleanditscompliancebecomesastateregistrationresponsibility.

Theproblemisthatamotorvehiclerepresentsacomplexsystemofintegratedmechanical,electrical,andelectronicelements,andsignificantsafety,reliability,andenvironmentalrisksexistifallpossibleoutcomesofmodificationsarenotproperlyrecognised,addressed,andverifiedthroughtheprocessofregulation.Thisrequireswelldevelopedmanagementprocesses,standards,andcertificationtoensurethattheuserandthegeneralpublicarenotatriskthroughtheuseofapoorlydesignedorconstructedvehiclemodification.

Manyindividualsorbusinesseswhoaremodifyingvehiclesorsupplyingproductstothemarketformodifiedvehicleenthusiastsdonothavethesewell-developedmanagementprocesses,standards,andcertification.Infact,manyhaveinsufficientknowledgeofsuchsystems.

The difficulty in achieving safe and environmentally responsiblemanagement ofmotor vehiclemodifications iscompounded by the fact that Commonwealth standards for new vehicles are developed for very large companies producingmanythousandsofvehicles,whichdoesnotmatchthetechnicalcapabilityandbudgetofanindividualorsmallbusinessintendingtoperformvehiclemodifications.

Australianstates (withsomeexceptions),generallysubscribe to theNationalCodeofPractice forLightVehicleModifications (NCOP), which have been published by the Commonwealth Government as Vehicle StandardsBulletins.Thesestandardsprescribetheoutcomesrequiredinvehiclemodifications,andarefundamentallybasedonthevehiclecategoriesanddesignstandardsoftheADRs.Thisisalogicalapproach,astheoriginalsystemofcomplianceistheobviousstartingpointforvehiclemodificationsduetothecommonnomenclatureandframework.

Therefore, the NCOP is focused on achieving the prescribed outcomes in a similar way to ADRs, but therequirementshavebeen‘simplified’throughconversiontooutcomebasedassessments.Theyhavebeenwrittenfor the enthusiast.

Thisallowsthesystemtobeusedbyindividualsperformingone-offmodifications,andisrelativelyinexpensivetocomply with in comparison with systems implemented for design and compliance of new vehicles.

Recognising the need for vehicle modification standards to be simplified, it seems probable that the NCOPrepresentsacompromisethroughthebalancingofriskversuscomplexityintheprocessandstandardsappliedtotheregulationofvehiclemodifications.

Thiscouldeitherbearesultofconveniencetoensureahigherlevelofcompliancebythepublic,orpossiblythroughaninformationgapindefiningtheimpactthatthisapproachhasontheactualcomplianceofalternativevalidationprocesses.

However,thecurrentsituationshouldberegardedasasignificantimprovementonthereferencematerialexistingpriortoitsimplementation,butispotentiallylackingthesupportingdatarequiredforittobevalidatedtechnicallyasanalternativetotheAustralianDesignRulesforassessmentofvehiclemodifications.

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The Fellow believes that any improvement to this situation should be developed from an understanding of the theoretical difference in system behaviour through comparison of the outcomes of alternative procedures tooutcomes that have been developed and tested in accordance with the applicable Australian Design Rule.

Thiswouldideallyleadtodevelopmentoflessprescriptiveoutcomesforeachmodificationcategory,andpossiblyalsoredefinetheintegrityandtypeofevidencerequiredtodemonstratecompliance.

And this proposed outcome would also require an associated process for determining confidence levels (ie.accuracy)fortheresultingoutcome.Thisconceptofdevelopingconfidencelevelsfortheseoutcomesbasedonassumptionbaseddecisions is analogous to thenormalpracticeofdeterminingexperimental uncertainlywhenprovidingtheresultsofexperimentaltests.

Furthermore, a useful extensionof this potential outcomecanbe appreciatedon recognising that anyproductdevelopment project is simply a collection of technical problems that require solving, overlaid with a strategicsequence of events to form a start to finish development process. Therefore, the proposed development ofconfidencemeasuresforproductdevelopmentcaneasilybeadaptedtoinvestigations,developmentofsolutionstoproductissues,ormoregenerallyasatheoreticalperformancemeasureforcontinuousproductimprovementprocesses.

Thiscouldhavesignificantapplicationinjustifyingtheaccuracyofproposedriskbasedengineeringoutcomestofinancialcontrollers,courtsof law, investors,etc,andeffectivelystill involvesdeliveringanoutcome,butaddingthe result derived through a process of mathematical modelling to verify the robustness of causative and remedial outcomes.

ThefullderivationofthisoutcomeisoutsideofthescopeofthisISSInstituteFellowship,buthasbeenidentifiedbythe Fellow as a potential area for research in the future.

Therefore, outcome for this ISS Institute Fellowship report for this recommendation has been to complete thedevelopmentof this riskbasedproduct realisationprocess fromtheconceptsuppliedabove,andcontinue thiswork through the scope of study as detailed below:

To investigate the characteristics of design outcomes1 through mathematical modelling2 to allow the validation and design acceptance process3 to represent variability in compliance with normal design standards4 when alternative processes5 for demonstrating compliance have been used.

1. Design outcomes means the performance of the product relative to minimum required standards published byregulatory bodies for that product

2. Mathematicalmodellingmaybethroughcalculationorsimulationmeans,ormaybesubstitutedasknowledgeofthesubjectareadevelopswiththecreationofaspecificprocessmodeltoachievetheoutcomesrequiredof the validation process

3. Validation and design acceptance processmeans the process for assessment and supply of evidence ofcompliance required by regulatory bodies

4. Variabilityincompliancewithnormaldesignstandardsmeansthetheoreticaldifferencebetweentheproposedperformance result and the performance result from the process required by the published regulatory standard.Design standard means the normal regulatory standard published by the applicable regulatory body. The term‘normal’isusedtorecognisethatwhichis requiredbylaw

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5. Alternativeprocessesmeanthoseprocessesallowedbystatutorybodiesforuseinparticularcircumstances,that may include low volume or special use situations

A subset of this researchwould include studying the current body of knowledge to build an industry specificapproach to associating product conceptualisation and investigative outcomes with robustness. The aim is to provideameasureofconfidenceincausativeandremedialoutcomestoworkinparallelwiththestudyofvariabilityin using alternative development and assessment processes.

7.3 Implementation of a point of sale product accreditation processThevehiclemodificationandaccessoriesindustryisregulatedbymoststategovernmentsthroughtherequirementthatmodificationsdefinedas‘assessable’bythe federaldepartmentofDepartmentof Innovation, Industry,andRegional Development (DIIRD) be approved prior to the vehicle being used on the road.

Thisoccurs throughacombinationofapprovals toperformcertainmodificationsorassessmentby recognisedengineeringsignatories,dependentonthestate,andthenatureandextentofthemodification.

TheDIIRDcodeofpracticeidentifiesthemajorityofstandardsforregistration,andthestategovernmentauthoritiesbothintroducetheirownstandards,andadministertheregistrationprocessineachstate.

However,thereisnoprocesscoveringthepurchaseofcomponents,orthesupplyofservicesinthemodificationor maintenance of vehicles.

Therefore,manyvehiclesdonotbecomecertifiedandthemodificationscanbeperformedwithlittleornocontroloverengineeringandsafetystandards,eventhoughthisoutcomeisconsideredillegalthroughstateregistrationlaws.

This issue is partly due to the certification process being applicable only to a fully completed vehicle,with noindustry wide product approval process or regulation over the sale of components available for the consumer.

Therefore,oneoftheoutcomesofthisISSInstituteFellowshipstudyhasbeentodevelopaconceptforaprogramaimed at achieving this additional level of accreditation.

7.3.1 Objectives of the Product Accreditation ConceptThe objective in creating the product accreditation concept was to provide:

» Anadditionalnationallevelofproductcertificationtoautomotiveaftermarketpartsmanufacturersandwholesalerstocreateaconsumerbarriertonon-compliantautomotiveaccessories

» This secondary level of product certification will provide a marketplace point of difference for automotiveaftermarket parts manufacturers and wholesalers

» Provide additional evidence of due diligence that accredited products are fit for purpose for the Australianautomotive aftermarket industry (through compliance with government standards, codes of practice, andprocesses)

» Support for theautomotiveaftermarket industry’s technicaldevelopment throughskillsmappingand trainingcourses in automotive aftermarket dedicated competencies

» Assistance to Statutory bodies and the community through the accreditation and training of industry individualsand company stakeholders

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7.3.2 Value PropositionThe product accreditation concept allows companies and individuals to become involved with a program to take advantageofthefollowingbenefits:

» Point of sale product recognition providing marketing advantages and local industry protection through regulatorycomplianceofmodifiedvehicle,accessory,orserviceproducts.ThisiscurrentlynotavailableinAustraliaoutsideofsomespecificsafetyaccreditationsonchildseats,safetyrestraintsandvehicleaccidentsafetyratings

» Facilitate a forum for collaboration and sharing of information betweenmanufacturers, importers, designers,consultants,governmentdepartments,regulatorybodies,industryassociations,anduniversitiestocontributetofurther development of industry stakeholders.

7.3.3 FeaturesThe features required to enable this value proposition in summary are:

» Implementation of a compliance mark and certification process - for sub system products. The productcertificationwillresultfromanapplicationtoabodycreatedforthisspecificpurpose,followedbythesupplyoftestreportsandproductvalidationdetails, installationinstructions,conformityofproduction,and changemanagement controldocumentation.CompliancewithpublishedStateandFederalguides,codes,andlawswillbeassessed through an accreditation process and approval can be provided to use branding providedcompliance with requirements of the program have been established. Approved products will also be listed ona website register

» Industry specific training and competency development pathways – including training and accreditationfor Vehicle Assessment Signatory Scheme (VASS), Approved Vehicle Examiners (AVE), vehicle sub systemmanufacturers,andimporters.Notethatthisprocesswasstartedinthesecondhalfof2017.

» Creation of a new body - comprising a steering committee, a technical review committee, and a gradingcommittee.Thesteeringcommittee,whowillbe responsible for thedevelopmentand implementationof theconcept.

7.3.4 Product Compliance CertificationCertificationcanbeachievedthroughapplication,requiringthesubmissionofanapplicationform,followedbythesupply of supporting documentation as described below.

Anapplicationwillcoveroneproductorsubsystem,andmultipleapplicationswillberequired,commensuratewiththe number of separate summary of evidence submissions.

Compliance with published State and Federal guides, codes, and laws will be assessed by the accreditationcommittee and approval can be provided to use branding (yet to be developed).

Therefore,therearetwoseparatecategoriesofaccreditation,Category1andCategory2.

Category 1 projects are applicable to the situation where an accreditation is submitted and can be assessed to criteria in existence through aCommonwealthGovernmentCode of Practice or a standard referenced in aCommonwealthGovernmentlaw,standard,orcodespecificallyrelatingtothesubjectcomponentorsubsystem.

Category 2projectsarethoseinwhichnostatutorystandard,code,orlawexiststodefinetheperformancecriteriaforaproductorsystemthatisofferedforsaleformodificationofavehicle.

Category 2 projects require industry submission of a proposal to be adopted by the applicable State and Commonwealth departments prior to accreditation approval.

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7.4 Addressing Industry Knowledge GapsThefindinginrelationtotheknowledgegapinasubstantialsampleofAustralianaftermarketoperationsthatwereconsultedinpreparationfortheinternationaltravelwasunexpected.

The Fellow was expecting further knowledge to be required in detailed and advanced product developmentprocesseswithstatisticalprobabilityoverlays,etc.But,thiswasnotthecase,andtheskillsgapthatwaseventuallyrecognised was of a more fundamental nature.

Theskillsrequirementswerefoundtobeintwoareas,bothofwhichwerecommonbetweenseveralofthemoresophisticated developers of aftermarket products in Australia. These elements were communicated through consultationwithmechanical,electrical,andelectronicproductsupplierspriortotheinternationaltravel.

Incomparisonwithstateoftheartaftermarketproductsavailable intheUSA,Australiandeveloperswerefoundto be relatively advanced. Several of the Australian products inspected in some detail during the lead up to the international travel were equal in quality and functionality to many of the products studied during the international travel.

Therefore, therewasnosignificantgap incoreabilityorcreativity identifiedbetweenAustraliancompaniesandallbutthefewlargestaftermarketmanufactures intheUSA.Infact,severalofthe largercompaniesemployOEprocessesandsell aftermarketproducts inveryhighvolumes,andcaneffectivelybeconsideredasOEscaledoperations.

The skills development needs were found through this study to be in two distinct areas:

1. Theneedforaprocessframeworkthatcouldmakealreadyinnovativeproductdevelopmentmorecompetitive,which means to reduce product costs and increase product reliability

2. An approach to allow their investment in Australian product development and manufacturing to be recognisedin themarketplace,whichmeansdevelopmentand implementationofamechanismtoprovideprotectionfrom cheaper imported products.

Therefore, theseobjectiveshavebecome the focusof thepost international travelphaseof thisstudy,and theresults of this work has been presented in Section 7 above.

8. REFERENCES


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1. VehicleStandardsBulletin14 (VSB14). 2017.VehicleStandardsBulletin14 (VSB14). [ONLINE]Availableat: https://infrastructure.gov.au/roads/vehicle_regulation/bulletin/vsb_ncop.aspx. [Accessed 17 November2017].

2. DaimlerChryslerCorporation,FordMotorCompany,GeneralMotorsCorporation,AdvancedProductQualityPlanning(APQP),SecondEdition,AutomotiveIndustryActionGroup,2008

3. DaimlerChryslerCorporation,FordMotorCompany,GeneralMotorsCorporation,PotentialFailureModeandEffectsAnalysis(PFMEA),AutomotiveIndustryActionGroupThirdEdition,2001

4. InfrastructureandRegionalDevelopment.2017.ThirdEditionAustralianDesignRules.[ONLINE]Availableat:https://infrastructure.gov.au/roads/motor/design/adr_online.aspx.[Accessed17November2017].

5. SubirChowdhury,DesignforSixSigma,DearbornTradePublishing,2002

6. OfficeofParliamentaryCounsel,Canberra,MotorVehicleStandardsAct1989,No.65,1989,CompilationDate 25 March 2015

7. Victorian Legislation and Parliamentary Documents. 2017. The Road Safety (Vehicles) Regulations 2009.[ONLINE]Availableat:http://www.legislation.vic.gov.au/.[Accessed17November2017].

8. References

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ThefollowinghaveenabledtheFellowwiththisdevelopmentactivitythroughprovidingadvice,guidance,and/orfinancialsupport.

International Specialised Skills Institute (ISS Institute) – The Awarding BodyTheISSInstituteexiststofosteranaspirational,skilledandsmartAustraliabycultivatingthemasteryandknowledgeof talented Australians through international research Fellowships.

The International Specialised Skills Institute (ISS Institute) is proud of its heritage. The organisation was founded over25yearsagobySir JamesGobboACCVOQC, formerGovernorofVictoria, toencourage investment inthedevelopmentofAustralia’sspecialisedskills.ItsinternationalFellowshipprogramsupportsalargenumberofAustraliansandinternationalleadersacrossabroadcross-sectionofindustriestoundertakeappliedresearchthatwillbenefiteconomicdevelopmentthroughvocationaltraining,industryinnovationandadvancement.Todate,over350 Australian and international Fellows have undertaken Fellowships facilitated through ISS Institute. The program encouragesmutualandsharedlearning,leadershipandcommunitiesofpractice.

At the heart of the ISS Institute are our individual Fellows. Under the International Applied Research Fellowship ProgramtheFellowstraveloverseasandupontheirreturn,theyarerequiredtopassonwhattheyhavelearntby:

» Preparingadetailedreportfordistributiontogovernmentdepartments,industryandeducationalinstitutions

» Recommending improvements to accredited educational courses

» Deliveringtrainingactivitiesincludingworkshops,conferencesandforums.

Theorganisationplaysapivotalroleincreatingvalueandopportunity,encouragingnewthinkingandearlyadoptionofideasandpractice.Byworkingwithothers,ISSInstituteinvestsinindividualswhowishtocreateanaspirational,skilledandsmartAustraliathroughinnovation,masteryandknowledgecultivation.

ForfurtherinformationonISSInstituteFellows,refertowww.issinstitute.org.au

Fellowship Sponsor – Perpetual Foundation – Eddy Dunn EndowmentIn1998,thePerpetualFoundation(the‘Foundation’)wasestablishedtoprovideawayforbenefactorstocontributeto improvingthe livesofothers.TheFoundation isstructured inawaythatenablesspecificendowments tobeestablishedintheirownname.WhiletheFoundationsupportsarangeofcharitiesandcauses,akeyobjectiveistodirectfundstowardsprojectsthatfocusonpreventativemeasuresandeducation.Inaddition,toprojectsthataddresstherootcauseofproblems,ratherthanprovidingshort-termremedies.

TheEddyDunnEndowmentFellowshipsaimtopromotetheacquisitionofhigher-levelskillsandanappreciationofinternationalbestpracticeinthetraditionaltradefields,withaparticularinterestinmechanics.TheseFellowshipsareintendedtoexamineinnovativeapproachesthatdemonstratepotentialbenefitsfortheFellowandforAustralianindustry and enterprises.

9. Acknowledgements

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IndustryPhilipDunn-SeniorPartner,ProductInvestigationatSigmatechEngineeringConsultants.

GovernmentPhillipBourke-A/gManager,AdvancedManufacturing,AustralianTradeCommission(Austrade).

ChristopherWong -Manager, IndustryPrograms,Department of EconomicDevelopment, Jobs, Transport andResources.

DrewStevenson-SeniorTechnicalAdvisor,VehicleSafetyandCompliance,VicRoads.

Professional AssociationsKelvinClissold(retired)-GeneralManagerProfessionalDevelopment,SAE-A.

Education and TrainingProfessorWKChiu-MonashUniversity

PublishedbyInternationalSpecialisedSkillsInstitute,Melbourne|www.issinstitute.org.au

© Copyright ISS Institute January 2018Thispublicationiscopyright.NopartmaybereproducedbyanyprocessexceptinaccordancewiththeprovisionsoftheCopyrightAct1968.Whilst this reporthasbeenacceptedby ISS Institute, ISS Institutecannotprovideexpertpeer reviewof the report,andexceptasmayberequiredbylawnoresponsibilitycanbeacceptedbyISSInstituteforthecontentofthereportoranylinkstherein,oromissions,typographical,printorphotographicerrors,or inaccuracies thatmayoccurafterpublicationorotherwise. ISS Institutedonotaccept responsibility for theconsequencesofanyactiontakenoromittedtobetakenbyanypersonasaconsequenceofanythingcontainedin,oromittedfrom,thisreport.

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