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Chrysler's "Extended Enterprise" Philosophy and Supplier Relations

11 May 1998

Supplier Relationships Key to Computer Program Generation And Analysis (C.P.G.A.) Development, Reports Chrysler

    AUBURN HILLS, Mich., May 11 -- The partnership formed in 1996
between Chrysler Corporation , Rockwell Automation, Dassault Systemes
, Deneb and Progressive Tool & Industries Co. (PICO) is almost
as unique as the technology they created.  Since then, it has become a
textbook example of Chrysler's "Extended Enterprise" philosophy to supplier
relations.
    "All four supplier partners brought a particular expertise to the project
which was critical to its development," said Frank Ewasyshyn, Vice President,
Advance Manufacturing Engineering, Chrysler Corporation.
    "Dassault Systemes has been our CATIA partner since 1984.  Rockwell
Automation is a world-leader in control systems design.  Deneb provided the
necessary workcell and controls simulation.  And PICO had the expertise to
integrate these systems into a physical workcell.  Even just a few years ago,
a joint-effort such as this one was almost unheard of. "
    With the ultimate goal of wanting to be its suppliers' best customer,
Chrysler's approach to supplier relations is unparalleled and intentionally
different -- the Company works in tandem with its suppliers from the earliest
stages of product development.
    "The development of the C.P.G.A. technology is the perfect example of what
we call Chrysler's 'Extended Enterprise' in operation," said Tom Sidlik,
Executive Vice President, Procurement and Supply and General Manager, Small
Car Operations.  "A group of four independent thinking suppliers have come
together through our Extended Enterprise and are functioning as an
unconventional team, and they're excited about it."
    Chrysler has created a positive network of seamless relationships with its
supply base over the last decade.  These inter-connected relationships are
based on several key, yet simple, principles.  Among them are communication
and trust.
    "We like to think of it as a relationship by choice, in the spirit of
teamwork we have fostered with our suppliers," said Sidlik.  "We believe our
suppliers are more willing to extend the resources and commit to these types
of endeavors because of the trust we have built with them."
    Due to Chrysler's willingness to work in that spirit of cooperation with
suppliers from the very beginning of product development, suppliers are then
more often willing to share their technological advances with Chrysler before
other automotive manufacturers.  C.P.G.A. is a case in point.
    When asked what C.P.G.A.'s strategies for success were within Chrysler's
Extended Enterprise, Ewasyshyn noted:  Communication, everyone needs to hear
the same message and buy in to the key objectives; work with supplier partners
to limit development cost; capitalize on existing technological advances; and
when developing a new technology, find an Extended Enterprise supplier that
can fill the need.
    "By pushing the paradigm with suppliers, unique relationships develop that
foster technological breakthroughs along with a well managed supply chain in
which everyone benefits," said Ewasyshyn.  "Chrysler, its suppliers and most
importantly, the customer."
SOURCE  Chrysler Corporation