Penn State Demonstrates Integration Solution to Remedy APQP Reporting Issues Across Automotive Supply Chain

DETROIT, Jan. 22, 2004 -- Penn State's Center for Manufacturing Enterprise Integration (CMEI), and IQS, Inc., a leading provider of quality- based Enterprise Performance Management solutions, today demonstrated an innovative, low-cost alternative to the pervasive automotive industry issue of APQP reporting across multiple tiers of the supply chain and to OEMs. This solution enables seamless, real-time data transmission to all OEMs, including those utilizing Covisint's Powerway system.

CMEI previewed this solution to the eAPQP committee of the Automotive Industry Action Group (AIAG), which was formed in 2001 to address issues surrounding the Powerway.com portal for communicating the status of new product launches between Tier 1 suppliers and OEM customers. CMEI successfully demonstrated the ability to achieve real-time electronic data exchange through published XML schemas directly from the Powerway datamart to existing Tier 1 reporting systems.

Additionally, the demonstration showed a seamless integration of the APQP data to a Tier 2 supplier system from the Tier 1's system in real time.

This introduction represents a breakthrough in APQP reporting for automotive industry suppliers for two reasons. First, Tier 1 suppliers will now be able to integrate data seamlessly with all OEMs in the same manner, including those that utilize Powerway, through their existing reporting systems -- without requiring unique interfaces or data re-entry.

Second, unlike existing web-based portal technology, this solution offers bi-directional, real-time reporting of critical product design and engineering change information. This means that Tier One suppliers can exchange data with any OEM and throughout their Tier Two supply chain using diverse enterprise software systems.

This solution incorporates an interface through a manufacturer's existing APQP system, and represents a means to reducing non-value added data entry costs using open standards technologies based on XML and web services. Prior to this introduction, many automotive suppliers had complained about high cost and redundant data entry required to meet the DCX, Ford, and GM mandate to use the Powerway.com portal for communicating status of new program launches.

IQS sponsored CMEI's research in developing the real-time integration technology to address the industry requirements for eAPQP and other integration and reporting issues facing the automotive supply chain.

"We believe this will enable manufacturing enterprises in the automotive industry to leverage recent advances in information technology for effective and timely collaboration across their supply chain," says Dr. Vittal Prabhu, Founder and Co-Director of CMEI. "In the future this could allow us to optimally control events in real-time for adapting to changes in the supply chain."

"One of the charter objectives of the eAPQP committee was to develop potential solutions for reporting required product design and engineering data throughout the automotive supply chain," says Michael Rapaport, President and CEO of IQS. "As a member of the committee and a solutions provider to the automotive industry, we're very pleased to have played a role in the development of this integration solution."

The Center for Manufacturing Enterprise Integration (CMEI) (www.ie.psu.edu/cmei/index.htm ) addresses the enterprise R&D needs for the next generation. CMEI focuses on integrating operational decision-making and control of geographically distributed enterprises, using open information and control systems at various levels ranging from sensors to supplier (S2S).

Since its inception in 1986, IQS (www.iqs.com ) has been a leading provider of integrated Quality Performance Management software to the manufacturing sector. IQS' solutions increase the efficiency and accuracy of work processes, enabling manufacturers to become more profitable and competitive through data and process integration, supply chain collaboration and performance information visibility.