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AIAG Construction Industry Initiative to Save Auto Industry Millions

17 July 1997

AIAG Construction Industry Initiative to Save Auto Industry Millions

    SOUTHFIELD, Mich., July 17 -- Leaving no brick unturned for
supply chain savings, the Automotive Industry Action Group (AIAG) is attacking
waste and improving quality as it relates to automotive facility construction.
    The AIAG's Construction Industry Focus Group (CIFG) is working to create
common automotive facility construction standards and business practices to
help companies save money.  The CIFG will discuss several of the hot industry
issues at AIAG's upcoming annual AUTO-TECH Conference & Exposition slated for
August 26-28 at Detroit's Cobo Center.
    "The Big Three Automakers alone have some $6.5 billion tied up in
worldwide construction in progress," said AIAG Associate Director Ed Stines.
"Assuming the rest of the supply chain (thousands of companies) may be
spending as much, we believe that standards and improved business processes to
be developed by AIAG could help save at least 10 percent of that cost.
Savings could possibly be $130 million or more annually."
    Stines added that commonizing construction standards and business
processes is increasingly important as Tier One suppliers race around the
globe to support customer programs.
    "With a global industry we are seeing a great deal of worldwide
construction focused on new facilities and the renovation and updating of
outdated factories," Stines said.  "At AIAG, we're working with the
construction industry and automotive companies to establish standards and
guidelines that will help ensure 'World Class' facilities for 'World Class'
cars."
    The CIFG will use AUTO-TECH '97 as an opportunity to present several
informational and educational sessions to a cross section of the industry
during a day long track on Wednesday, August 27.  Sessions range from facility
CAD standards to ISO 9000 as it applies to construction and design.
    Formed in 1995, AIAG's Construction Industry Focus Group was originally
focused on building issues only.  However, the group has recently expanded its
focus to include all suppliers who support the launch of a product from paint
systems to conveyor systems.  The group has gained support from architectural
and engineering firms, general contractors and sub-contractors, testing firms,
process engineering firms and fabricators of various tooling and equipment.
The importance of the CIFG's work will gain greater significance as the
automakers shorten their product development cycle.
    For AUTO-TECH '97 registration, exhibition and conference information,
interested parties should contact the AIAG at 810-358-3570.
    Founded in 1982, AIAG is a not-for-profit trade association of more than
1,300 North American auto and truck manufacturers and their suppliers.
Originally recognized for its efforts to standardize electronic data
interchange (EDI) and bar code standards to assist Tier One suppliers, AIAG's
mission has expanded to cover all levels of the OEM supply chain, as well as
to include numerous programs and initiatives aimed at improving its members'
productivity and quality.  More information about AIAG and the annual AUTO-
TECH Conference & Exposition can be found on the World Wide Web at
 http://www.aiag.org.

SOURCE  Automotive Industry Action Group