AIAG's Year 2000 Program Yields Long-Term Benefits

16 February 2000
AIAG's Year 2000 Program Yields Long-Term Benefits
    SOUTHFIELD, Mich., Feb. 16 -- After successfully implementing
its Year 2000 Supplier Readiness Program, the Automotive Industry Action
Group's (AIAG) OEM Year 2000 Task Force -- consisting of representatives from
DaimlerChrysler Corp., Ford Motor Co., General Motors Corp., Volvo Corp. and
Toyota Motor Manufacturing North America, Inc. -- announced that the group's
efforts will yield long-term benefits for the automotive industry.
    "The original mission of the group was to create awareness of the inherent
computer problems associated with the Year 2000 and to develop a common
approach for assessing and monitoring automotive supply chain readiness," said
Kenneth W. Godzina, AIAG executive director.  "Not only did the program help
the industry avoid a disruption of production, but more importantly, it also
helped the industry to take a long, hard look at its supply chain systems and
processes."
    According to Godzina, while technology improvements made for the Year 2000
will be helpful, the greater long-term benefits to the auto industry are
coming from the efforts by tier-one suppliers to look downstream and really
communicate with their sub-tier suppliers, and the elimination of out-dated
business processes.  In addition, the Year 2000 Supplier Readiness Program
made many suppliers realize the potential benefits of integrating electronic
data interchange (EDI) into their business processes.
    "The Year 2000 Supplier Readiness Program is a prime example of how AIAG
is providing the open forum where members cooperate in developing common
solutions that enhance the prosperity of the entire automotive supply chain,"
Godzina said.  "Our focus is to continuously improve trading partner business
processes and practices -- which, in turn, will increase industry productivity
and profitability."
    AIAG's Year 2000 Supplier Readiness Program consisted of the following
components:  a Y2K self-assessment questionnaire that was distributed to
125,000 supplier sites worldwide; a web site that monitored supply chain
readiness; an information center that collected data and provided a
knowledgeable help desk; Y2K work groups that focused on key areas of
specialized products and services, such as financial, utilities, human
resources and plant floor equipment; and specialized training in Y2K project
management, assessment and contingency planning.
    Founded in 1982, the AIAG is a not-for-profit trade association of more
than 1,600 automotive and truck manufacturers and their suppliers.  AIAG's
purpose is to provide an open forum where members cooperate in developing and
promoting solutions that enhance the prosperity of the automotive industry.
Its focus is to continuously improve business processes and practices
involving trading partners throughout the supply chain.
    More information about the AIAG and its initiatives can be found at
http://www.aiag.org