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T abajo Fin de G ado Logis ics in he Au omo i e Sec o , Indus y 4.0 and sus ainabili y app oach Au o /es Manuel Aguila A agonés Di ec o /es Gema Pas o Agus ín Facul ad de Economía y Emp esa 2021 TÍTULO: Logis ics in he Au omo i e Sec o , Indus y 4.0 and sus ainabili y app oach AUTOR: Manuel Aguila A agonés DIRECTOR: Gema Pas o Agus ín TITULACIÓN: G ado en Adminis ación y Di ección de Emp esas RESUMEN La indus ia del au omó il es un sec o cla e pa a la mayo ía de los países del mundo debido a que en las úl imas décadas el au omó il se ha con e ido en uno de los bienes de consumo más impo an es así como en una ue za de a as e de p oduc os en o as indus ias. Además, cuando se a a de adop a las úl imas ecnologías, la indus ia del au omó il siemp e se ha man enido a la angua dia. El obje i o de es e abajo es desc ibi la e olución de es e sec o desde el comienzo de la p oducción de au omó iles has a su si uación ac ual, explica cómo los a ances en es a indus ia han a ec ado a o as y analiza cómo la Indus ia 4.0 es á siendo implemen ada pa a hace en e a los cambios ecnológicos que es án siendo expe imen ados en el sec o . ABSTRACT The au omo i e indus y is a key sec o o mos coun ies in he wo ld since in ecen decades he au omobile has become one o he mos impo an consume goods as well as a d i ing o ce o p oduc s in o he indus ies. Mo eo e , when i comes o adop ing he la es echnologies, he au omo i e indus y has always been a he o e on . This pape aims o desc ibe he e olu ion o his sec o om he beginning o au omobile p oduc ion o i s cu en si ua ion, explain how he ad ances in his indus y ha e a ec ed o he s, and analyze how Indus y 4.0 is being implemen ed o cope wi h he echnological changes ha a e being expe ienced in he sec o . AGENDA 1. INTRODUCTION ...................................................................................................... 1 2. EVOLUTION OF THE AUTOMOTIVE SECTOR ............................................... 2 2.1 THE BEGINNING ................................................................................................... 2 2.2 HENRY FORD ......................................................................................................... 4 2.3 JUST IN TIME METHOD AND TOYOTA .......................................................... 7 2.3.1 JIT Cha ac e is ics .......................................................................................... 8 2.3.2 P oduc designs ................................................................................................ 9 2.3.3 Task no maliza ion and me hod imp o emen ........................................... 10 2.3.4 P oduc egula iza ion .................................................................................. 11 2.4 PRODUCTION FIGURES EVOLUTION ........................................................... 12 2.4.1 P oduc ion igu es ......................................................................................... 13 2.4.1.1 To al Vehicles P oduc ion ......................................................................... 13 2.4.1.2 Passenge ca s p oduc ion ........................................................................ 15 2.4.1.3 Comme cial ehicle’s p oduc ion .............................................................. 16 3. THE CURRENT SITUATION................................................................................ 18 3.1 THE AUTOMOTIVE SECTOR DURING THE YEAR 2020 ........................... 18 3.2 INDUSTRY 4.0 ....................................................................................................... 20 3.3 CURRENT SUPPLY CHAIN MANAGEMENT ISSUES................................. 23 3.3.1 GENERAL OVERVIEW .............................................................................. 23 3.3.2 SPECIFIC VIEW ......................................................................................... 24 3.3.2.1 In eg a ion ................................................................................................ 24 3.3.2.2 Collabo a ion ............................................................................................ 27 3.3.2.3 Flexibili y.................................................................................................. 28 3.3.3 Speci ic cases ................................................................................................. 30 3.3.3.1 Me cedes-Benz Supply Chain ................................................................... 30 3.3.3.2 BMW ........................................................................................................ 31 3.3.3.3 Volkswagen AG ........................................................................................ 32 3.4. TENDENCIES IN THE SECTOR ....................................................................... 32 4. CONCLUSIONS ....................................................................................................... 35 5. BIBLIOGRAPHY ..................................................................................................... 38 1 1. INTRODUCTION The au omobile indus y is a capi al in ensi e and knowledge-in ensi e indus y ha plays an impo an ole in he socio-economic de elopmen o a wide ange o coun ies (Sabe i, B, 2018). The indus y in es s mo e han 74 billion eu os in esea ch and de elopmen , o his eason, he Au omo i e indus y is conside ed a majo inno a o . Cu en ly, he indus y is booming, in ol ing an inc easing numbe o coun ies in he p oduc ion o ca s, he ends o he highe ehicles p oduc ion has changed d as ically, supposing he ise o he Asian con inen as he mos impo an o wo ld p oduc ion, lea ing Ame ica and Eu ope in he backg ound. (Sabe i, B, 2018). The unde lying echnology in his sec o has also expe ienced adical echnological inno a ions, wi h he inc easing popula i y o diesel, hyb id, and ully elec ic ehicles helping o di e si y he ma ke . Changes in he egula o y en i onmen and in e na ional p oduc ion p ocesses ha e also molded he indus y, making mo e e icien ca s accessible o he mass public. The au omo i e sec o wo ldwide has been cha ac e ized by a cons an p ocess o es uc u ing, which had made i one o he mos dynamic indus ies o he mode n e a, gene a ing impo an e ec s on he di e en economies in e ms o p oduc i i y, echnological de elopmen , and compe i i eness. To occupy he i s places in e ms o p oduc i i y and sales in he wo ld ma ke s he companies o he sec o ha e been always sea ching o inno a ions ha allow hem o s eng hen and make mo e compe i i e hei p oduc ion p ocesses. Nowadays, he in oduc ion o Indus y 4.0 has s a ed he ou h indus ial e olu ion in he au omo i e sec o . I will be a majo end elying on he digi aliza ion along he p oduc li e cycle in he au omo i e indus y and will ha e a high po en ial in e ms o compe i i eness and gene a ing new oppo uni ies. Especially he digi aliza ion o he supply chain will allow he educ ion o cos s because o an imp o emen in da a quali y and he educ ion o agmen ed in o ma ion. To achie e a ansi ion o a digi al wo ld is a complex p ocess ha will need some echnologies like he In e ne o Things (IoT), Big Da a, 3d p in ing, o nano echnology (Dos San os, L. P., Co i-Zela i, P. E., & de A aújo, D. L. A. (2020). 2 The objec i e o his wo k is o highligh he impo an con ibu ion o he au omo i e indus y o ope a ions managemen . To achie e his objec i e, we a e going o comple e ou sub-objec i es. The i s one consis s o he e olu ion o he sec o om he beginning o he ehicle’s p oduc ion un il he cu en si ua ion. This pa will explain Hen y Fo d’s p oduc ion me hod, he Jus in Time me hod, and he e olu ion o he p oduc ion du ing he las i een yea s. The second sub-objec i e will be explaining how all he ad an ages o he au omo i e indus y ha e been in oduced in o he indus ies. To achie e his objec i e he wo k will include in a schema ic way how he mos impo an e olu ions o he au omo i e sec o ha e been adop ed in o he indus ies. The hi d sub-objec i e is going o make an analysis o he cu en si ua ion explaining how he indus y is mo ing owa ds Indus y 4.0 o be adap ed o he eme gen echnologies. Finally, he ou h sub-objec i e will include he u u e endencies o he sec o in e ms o sus ainabili y. 2. EVOLUTION OF THE AUTOMOTIVE SECTOR 2.1 THE BEGINNING The his o y o he au omobile indus y has a lo o impo ance i i is compa ed wi h he es o he indus ies. The i s au omobile o igina ed in Ge many, bu hanks o mass p oduc ion, he Uni ed S a es domina ed he wo ld indus y. The si ua ion in he indus y changed comple ely du ing he second hal o he cen u y because o he ise o he wes e n Eu opean coun ies and Japan, which became he bigges p oduce s and expo e s. The ab ica ion o ehicles s a ed wi h he s eam-powe ed oad ehicles, bu his endency changed apidly in he 1860s and 70s owa ds he gasoline engine mainly in F ance and Ge many, al hough a he beginning o he 20 h cen u y hose coun ies we e joined by I aly, Ame ica, and England. Be o e he Fi s Wo ld Wa , mos ea ly au omobile companies we e small shops. Those ha su i ed had ce ain cha ac e is ics in common, hey ell in o h ee de ined ca ego ies: hey we e ma ke s o bicycle p oduce s, such as Opel, builde s o ho se- d awn ehicles, o mos equen ly, machine y manu ac u e s (Rae, J. Bell and Binde , . 3 Alan K. 2020, No embe 12). The i s manu ac u e s had o deal wi h a wide ange o p oblems wi h inance, echnical p oblems, o decisions abou wha o p oduce. The gasoline engine supposed he expe imen a ion wi h s eam and elec ici y. This second ype o ene gy enjoyed mo e accep ance o some ime because i was easie o ope a e, bu he ba e y capaci y was an impo an limi a ion. Ne e heless, elec ic ca s emained in limi ed p oduc ion hanks o he popula i y among women. The s eam powe was conside ed a mo e se ious compe i o gi en ha i was easy o ope a e hanks o i s simple ansmission, bu he high amoun s o money which we e needed o c ea e quali y engines supposed ha mos manu ac u e s changed o he gasoline engine in 1910. The in oduc ion o mass p oduc ion was conside ed one o he bigges echnological ad ances in he au omo i e indus y, a p ocess ha consis ed o s anda diza ion, synch oniza ion, and con inui y. This echnique s a ed in he Uni ed S a es and was cha ac e ized by wo mo emen s: Taylo ism and Fo dism. Acco ding o Gonzalez (2003) “Taylo ism o Scien i ic Labou Adminis a ion is based on wo undamen al s a egic p inciples ocusing on econ igu ing he ask o he indi idual wo ke , his ime o implemen a ion and he ins umen s and condi ions o implemen a ion”. The i s p inciple s a es ha be ween he ange o me hods ha a e used o ca y ou a job, he e is always a as e me hod and a be e ins umen . Those me hods and ins umen s will be de eloped hanks o a scien i ic analysis in ol ing all he a ailable p ocedu es and ins umen s and a s udy o he imes and mo emen s which a e needed o each ope a ion. The second p inciple says ha hose s udies can be only ca ied ou by he managemen o he company using specialized depa men s. Those wo king me hods appea due o he eunion o wo ke ’s adi ional knowledge, classi ying i , and c ea ing ules ha will c ea e a scien i ic me hod o subs i u e he wo ke ’s empi ical knowledge by o he igid knowledge wi h igid ules o he mo emen o each man. The basic ools o he Scien i ic Managemen o wo k a e he so-called Time S udies and mo emen s. Th ough hese, esea ch on how each o he mo emen s and ges u es o he wo ke s is analyzed. Subsequen ly, he decomposi ion o his p ocess in o a se o simple manipula ions ha a e selec ed, measu ed, and educed o a s anda d, elimina ing 4 he unnecessa y and excessi e mo emen s a e e-in eg a ed acco ding o Taylo as “The only bes way”. I had no only s udied he ope a ions and ime o se s anda ds, bu i also wan ed o edesign he p oduc ion p ocess o elimina e unnecessa y mo emen s and o educe he ime o each ope a ion o a minimum o achie e he in ensi ica ion o he ope a o ’s pe o mance. To achie e hese e ec s, he wo king me hods designed by he managemen o ices should con o m o he ollowing ules: - The ope a o mus ecei e only he essen ial in o ma ion a he essen ial momen - The in e p e a ions and he decisions o he ope a o mus be au oma ic, which means ha he elec ions o be execu ed by hem should be as ew as possible and allow hem o execu e he ask in he sho es ime possible. - Each speci ic ask mus equi e he minimum o ene gy and he lowes ol age exp essed in calo ies pe minu e and bea s pe minu e. The applica ion o hose ules implies ha he successi e s ages o he p ocess a e subjec o an e e -inc easing subdi ision o i s pa s componen s, sys ema ically dismembe ing hem in o hei simple elemen s. This subdi ision o he wo k has he ollowing ad an ages: - A high deg ee o specializa ion allows he wo ke s o lea n hei asks in a sho ime and pe o m wi h excellence. - A sho wo king cycle allows a as execu ion and almos au oma ic wi h li le o no men al e o . - Less supe ision is equi ed since he ope a o quickly lea ns his ask. 2.2 HENRY FORD Hen y Fo d became a ollowe o Taylo ’s wo k and a b idge be ween he libe al businessman and he a ising om he c isis o ee ade. Fo d used Taylo ’s labo p ocess he i age in he au omo i e indus y o sol e he p oblems o p oduc ion o elimina e unnecessa y wo k and achie e he objec i e o p oducing in se ies a a lowe cos . The pa adigma ic Fo d T (1908) was so success ul ha i p omp ed he need o inc ease p oduc ion. This led o he implemen a ion o a new model p oduc ion based 5 on he se ial assembly line, whe e ope a o s assembled pa s ha we e anspo ed on con inuous mo ion bel s (Piñe o, F. 2004). The cha ac e is ic wo king p ocess o Fo dism is he semi-au oma ic p oduc ion chain. By mechanizing wo k, Fo dism managed o aise he in ensi y, while inc easing he sepa a ion be ween manual and in ellec ual wo k. As a as he p oduc ion p ocess is conce ned, Fo dism su passes Taylo ism ollowing wo complemen a y p inciples. The i s one is he in eg a ion o he di e en segmen s o he wo k p ocess using a sys em o guides and means o main enance ha allow he mo emen s o aw ma e ials in he p ocess o ans o ma ion and hei d i ing in on o machine ools. The second p inciple, complemen a y o he p e ious one is he alloca ion o jobs acco ding o he con igu a ion o he machines. This p inciple causes he wo ke o lose con ol o he wo k hy hm, by subjec ing ope a o s o he uni o mi y o machine mo emen . These p inciples also make i possible o inc easingly simpli y he wo k h ough he agmen a ion o mo emen cycles, c ea ing si ua ions in which he wo ke s only pe o m ex emely simple and ou ina y mo emen s. The job simpli ica ion allowed an imp o emen o he chain pe o mance, which is modi ied quan i a i ely and quali a i ely a he same ime ha new jobs a e c ea ed. Wi h he use o he assembly lines, Hen y Fo d ebuil he labo p ocess in he au omo i e indus y, whe e he assembling echnical limi s ep esen ed a se ious obs acle o he p oduc ion con inui y. The use o he assembly line in he au omo i e indus y was he esul o a long p ocess; all he Fo dian ans o ma ions ha we e done in he p oduc ion o ganiza ion we e he esul o long yea s o expe imen a ion. The disman ling o he wo k a he Fo d plan s was ca ied ou be ween he yea s 1903 o 1914. Tha pe iod became in a imeline o med by a succession o measu es, which we e aimed a con ol and discipline imposed by he chain assembly line ha would la e ex end i s domain o socie y. In 1903 Fo d’s acili ies s ill used he se ice o e sa ile mechanics, who mo ed along he assembling line ou e as global mechanics and ollowed he ca elabo a ion, om he chassis assembly o he p oduc e mina ion. In 1908, he assembly wo ke s no 6 longe had o lea e hei jobs o make ips o he wa ehouse and p o ide hemsel es wi h ools, he assis an s placed a hei side pe o med ha wo k. Be ween 1908 and 1909, Hen y Fo d and his pa ne James Couzens decided o hi e he se ices o Wal e W. Flande s o mode nize he manu ac u ing p ocess o he assembly machines. He was he one who p o ided hem wi h he equipmen and essen ial machine y o s a he mass p oduc ion, which in 1909 eached he numbe o en housand p oduced ca s. Ne e heless, he diso de wi h he connec ed depa men s o he inal line was no sol ed. The i m s ep owa ds he p oduc ion’s a ionaliza ion consis ed o he Taylo ism measu e o di iding, un il he smalle uni s, e e y mechanical ope a ion equi ed o he au omobile p oduc ion. The nex s ep consis ed o accommoda ing machines and wo ke s in con inuous and pa allel lines wi h he in en ion ha wo k lows om machine o machine wi h as li le in e up ion as possible and in a logical succession. The main p inciple ha guided he ans o ma ion in he acili ies was he sea ch o a highe con inui y in he p oduc ion p ocess, ne e heless, he wo ke s and he pieces o assembly s ill had o be in mo emen . In 1910, o a oid he wo ke s’ mo emen s sloping su aces we e ins alled o allow ha pieces we e mo ed by hemsel es. This imp o ed p oduc i i y o depa men s ha we e in cha ge o he p oduc ion o pa s ha we e connec ed wi h he inal line. The new me hods we e applied o all he inal line depa men s and in 1913 he s a iona y assembly was modi ied. The udimen a y sys em consis ed o placing six y chassis in line and nex o i , in a pa allel line, he body wo ks we e placed in wood s uc u es wai ing o be ins alled. Meanwhile, he wo ke s ca ied ou hei ac i i ies o e he six y chassis. The e we e eams dedica ed o he assembly o axles, engines, i es e ce e a. E e y eamwo k was ollowed by assis an s who p o ided hem he necessa y ools and pieces. As can be obse ed, he new echnique was s ill eally a chaic. Consequen ly, he p inciple o “B ing he wo k o he man” was implemen ed, gi ing mobili y o he engine and axes lines. The esul s we e eally good bu a e some weeks, he decompensa ion be ween he depa men 's speed and he slowness o he assembly line appea ed. This yea he inal assembly in he mo emen was achie ed. Simul aneously he au omobiles we e app oached by he wo ke s who we e in cha ge o placing he pieces in he chassis. In Feb ua y o 1914 was he i s ime ha an 13 conce ns is likely o b ing subs an ial changes in how he indus y adap s and e ol es in he u u e (Indus ia, C. C. O. O. 2018). 2.4.1 P oduc ion igu es 2.4.1.1 To al Vehicles P oduc ion Acco ding o he In e na ional O ganiza ion o Mo o Vehicles Manu ac u e s (OICA), China is he wo ld’s la ges p oduce o ehicles. In 2019 app oxima ely 80% o China’s p oduc ion wen owa ds making passenge ca s, while he o he 20% we e o comme cial ehicle use. Howe e , he p oduc ion du ing he las pa o 2019 dec eased in he numbe o comple ed ehicles, which migh be a ibu ed o he ade wa wi h he Uni ed S a es. SAIC Mo o Co po a ion L d is he la ges manu ac u e o ehicles in China. The Uni ed S a es o Ame ica is he second-la ges ca manu ac u e in he wo ld. Al hough i s p oduc ion o passenge ca s was less han Japan and Ge many, he coun y p oduced almos wice as many comme cial ehicles as any o he coun y. Gene al Mo o s Company manu ac u ed a majo i y o he au omobiles manu ac u ed in he USA. The con inen has dec eased i s impo ance in he p oduc ion o ehicles du ing he las yea s om 29.36% o he p oduc ion in 2005 o 22.18% in 2019 (OICA) Japan p oduced 8.3 million o al ehicles in 2019, 9% o all ehicles made. Japan is esponsible o he second-highes amoun o ca expo s in he wo ld. Toyo a is esponsible o app oxima ely 29% o Japan’s au omobile manu ac u ing, while Honda Mo o Company is he second-la ges manu ac u e , holding abou 14.4% o he Japanese ma ke , ollowed by Nissan Mo o s. Ge many p oduced 4.6 million o al ca s in 2019. This igu e ep esen ed a 9% dec ease om 2018 p oduc ion le els. The dolla alue o almos one-qua e o all ca s manu ac u ed in Ge many is expo ed. Volkswagen AG is he leading Ge man manu ac u e , p oducing jus unde 700,000 ca s among i s many makes including Po sche. Me cedes Benz is he second la ges manu ac u e in Ge many. BMW comes in hi d, which also owns he Mini and Rolls Royce b ands. 14 India, while no well known in Ame ica o Eu ope, p oduced 4.5 million o al ehicles in 2019, wi h 8% being pe sonal ca s. The la ges manu ac u e in India is Ta a Mo o s Limi ed. A ound 650,000 ca s manu ac u ed in India we e expo ed. G aph 1: E olu ion o he o al ehicle’s p oduc ion Sou ce: OICA The o al p oduc ion o ehicles has inc eased yea by yea wo ldwide, excep o he yea s 2008, 2009, and 2010 due o he inancial c isis. The igu es ha e inc eased om 63,228,032 ehicles in 2005 o 87,372,851 in 2019. Asia is he con inen wi h he highes impo ance in ehicle p oduc ion; he e i o y has inc eased i s impo ance in he sec o e e y yea , passing om a ep esen a ion o 38.2% in 2005 o ep esen in 2019 he 52.6% o he o al p oduc ion. The coun y wi h he highes impo ance is China, which in he las yea ep esen ed 50.8% o he o al p oduc ion o he con inen ; he second coun y wi h he highes impo ance is Japan wi h 19.9% o he o al p oduc ion. Eu ope is he con inen which has los mo e impo ance du ing he las yea s, in 2005 Eu ope ep esen ed 31.7% o he o al p oduc ion, bu las yea his pe cen age dec eased o 24%. The coun y wi h he highes impo ance is Ge many, ollowed by Spain. 15 Finally, he p oduc ion o ehicles in Ame ica has also los impo ance bu no as d as ically as in Eu ope, he con inen ep esen ed in 2005 29.36% o he o al p oduc ion while he las yea was 22.18%. The coun y wi h he highes impo ance is he Uni ed S a es, which las yea ep esen ed 54.3% o he o al p oduc ion. The second coun y wi h he highes impo ance is B azil wi h 14.4% o he whole p oduc ion. 2.4.1.2 Passenge ca s p oduc ion The p oduc ion o passenge ca s has inc eased in he las 14 yea s om 46,008,847 o 67,149,196. The highes igu e un il now was egis e ed in 2017 wi h 73,456,531, bu in he las wo yea s, he p oduc ion has dec eased mainly because o he pollu ion es ic ions which en e ed in o ce in 2018. The con inen which p oduced mo e passenge ca s in 2019 was Asia. The con inen p oduced 40.666.078 ca s, which ep esen ed 60.5% o he o al sales. The e olu ion o he Asian con inen has been posi i e du ing he las yea s, ep esen ing in 2005 he 41% o he o al sales. I ’s impo an o highligh ha he highes con ibu o o he con inen ’s p oduc ion is China. Las yea , his coun y supposed 52% o he ca s p oduced; he second is Japan, which ep esen s 20.4%. G aph 2: E olu ion o he passenge s’ ca s p oduc ion wo ldwide Sou ce: OICA 16 Eu ope is he second con inen in passenge ca p oduc ion, al hough i s in luence is dec easing yea by yea . Las yea , he con inen ep esen ed 27.8% o he o al p oduc ion while in 2005 i ep esen ed 38.3%. The coun y wi h a highe con ibu ion is Ge many, 24.8% las yea , ollowed by Spain, 12%, and F ance, 8.9%. In he las yea s, Eu opean p oduc ion is losing impo ance o Asia, he Eu opean con inen has main ained a cons an p oduc ion bu he di e ences wi h Asia ha e inc eased because o he accele a ion o he economies and sec o s wi h lowe labo cos s. The p oduc ion inc eases ha e been a o ed by be e posi ioning o he elec ic ehicle p oduc ion in he Asian con inen , achie ing he 56% o he elec ic ehicle egis a ions in 2019. (El País, 2019) 2.4.1.3 Comme cial ehicle’s p oduc ion Ame ica is he leade con inen in comme cial ehicle p oduc ion. Las yea , he con inen ep esen ed 61.3% o he o al p oduc ion in he wo ld and hey ha e been able o main ain o e en inc ease he ad an age o e o he con inen s. The coun y which mo e suppo s he p oduc ion o he con inen is he Uni ed S a es, which ep esen s 64.5% o he whole p oduc ion; he second coun y wi h a highe in luence is Mexico, which supposes 19.2%. G aph 3: E olu ion o he comme cial ehicle’s p oduc ion Sou ce: OICA 17 Asia is he second con inen wi h a highe impo ance in comme cial ehicle p oduc ion. Las yea , he con inen ep esen ed 26% o he whole p oduc ion and i has main ained i s in luence du ing he las ou een yea s. The coun y wi h highe impo ance is China, which ep esen ed 37.9% o he p oduc ion o he con inen las yea . The second coun y is Thailand, ep esen ing 23% o he p oduc ion. Eu ope is no a s ong e i o y ega ding he p oduc ion o hese ypes o ehicles. Las yea he con inen ep esen ed 11% o he whole p oduc ion and his igu e has dec eased du ing he las yea s. The coun y wi h a highe in luence is Spain, which supposed 23.2% o he p oduc ion las yea . I can be seen ha he h ee con inen s su e ed a dec ease in au omobile p oduc ion due o he inancial c isis, bu Ame ica was especially a ec ed du ing his pe iod. Some o he easons ha explain he g ow h and he domain o Asia a e hese h ee aspec s: Elec i ica ion, au onomous ca s, and ca sha ing (La Vangua dia, 2019). The ca ’s elec i ica ion will subs i u e ossil uels; u he mo e, he au onomous ca s will be equipped wi h echnologies ha include ada and GPS ha can help o de ec he en i onmen and he mos sui able ou es. China, he main Asian p oduce has launched a plan in which he de elopmen o in elligen ehicles is a na ional p io i y. Ano he eason is ha i a o eign b and wan s o sell in Asia, i has wo op ions: I s ca s can ha e impo a i s o hey can p oduce he ca s in he coun y o ob ain a good compe i i e p ice. The as majo i y o ca p oduce s ha e chosen he second op ion. The legisla ion says ha hey ha e o be associa ed wi h exis ing manu ac u e s and c ea e a join en u e. Due o hese measu es, di e en join en u es appea ed; some examples a e SAIC/Volkswagen, Dong eng/PSA, GIG/Peugeo , o TAI/Daiha su. 18 3. THE CURRENT SITUATION 3.1 THE AUTOMOTIVE SECTOR DURING THE YEAR 2020 The p esen yea has been shocked by an unusual si ua ion, a global pandemic ha has a ec ed he en i e wo ld. This has mean di e en lockdowns in se e al pa s o he wo ld. The au omo i e indus y is acing a hea y dec ease in demand and in es men . This sec o is also being a ec ed by he sudden and gene alized s op o economic ac i i y, wi h wo ke s con ined o hei homes, immobilized supply chains, and closed ac o ies. I is belie ed ha a el es ic ions and he sudden in e up ion o economic ac i i y will lead o a sha p con ac ion in p oduc ion and g oss domes ic p oduc (GDP). I is es ima ed ha ac o y closu es in Eu ope and No h Ame ica ha e o ced he wi hd awal o 2.5 million ehicle passenge anspo p og ams o he p oduc ion, su e ing 77.7 billion US dolla s in losses o income o au omo i e and pa s manu ac u ing. (In e na ional Labou O ganiza ion, 2020) Acco ding o he In e na ional Labou O ganiza ion (OIT in Spanish), his has nega i e mul iplie impac s on he economy by he e ec s o d ag and p opulsion, in pa icula in coun ies such as Canada, Ge many, China, Uni ed S a es, India, Japan, Mexico, Republic o Ko ea, and Sou h A ica, whe e he au omo i e indus y is an impo an d i e o economic g ow h. The dec ease in he demand o o he se ices like anspo , me chandise, o a ele s will a ec he au omo i e sec o and in a nea u u e, i migh be possible o see an inc ease in comme cial ehicle demand while he demand o passenge ca s will be educed due o he unce ain y which has been expe ienced. The pandemic has gene a ed an unp eceden ed inc ease in unemploymen in all he supply chains o he au omo i e indus y, and he e is a isk o losing mo e jobs i go e nmen s, employe s, and wo ke s do no ac immedia ely o enable he su i al o Small and medium en e p ises and p o ec ion o wo ke s. 19 G aph 7: Sales o new ehicles in coun ies ep esen ed in OICA Sou ce: OICA Va ia ion o sales be ween 2019 and 2020 2019 2020 VARIATION JANUARY 6,374,173 5,737,591 -10% FEBRUARY 5,602858 4,297,691 -23% MARCH 8,064,294 4,920,918 -39% APRIL 6,117,562 3,808,755 -38% MAY 6,444,926 4,734,962 -27% JUNE 6,887,312 5,911,081 -14% JULY 6,314,118 6,153,883 -3% AUGUST 6,194,172 5,857,286 -5% TOTAL 51,999,415 51,416,167 -20% Sou ce: OICA The new ehicle sales in China dec eased by almos 92% in he i s hal o Feb ua y in 2020 and i has been es ima ed ha ehicle sales will dec ease in china by a leas 2.9%. 20 Acco ding o he Eu opean Associa ion o Manu ac u e s o Au omobiles, he new ehicle sales in he Eu opean Union in Janua y and Feb ua y we e 7.4% less han las yea . In 2020, he demand has dec eased in he ou p incipal Eu opean ma ke s: Ge many (9%), F ance (7.8%), I aly (7.3%), and Spain (6.8%). Taking in o accoun ha China is he main supplie o in e media e inpu s o en e p ise manu ac u ing companies in o he pa s o he wo ld, he decline in p oduc ion and expo s o China has a di ec impac on he au omo i e indus y. Fo many au omo i e companies, he lack o s ocks and he s ong dependence on Jus in Time manu ac u ing is gene a ing b eakdowns ha a ec he p oduc ion capaci y and o al expo a ions (In e na ional Labou O ganiza ion, 2020). Taking in o accoun hose p oblems ela ed o he JIT me hod, a ansi ion o indus y 4.0 seems o be clea . Talking abou JIT and Indus y 4.0 will suppose he ansi ion o he digi al ans o ma ion gi en ha i a i es a he indus y gene a ing changes in he p oduc ion p ocesses and comp omising he company's di ec ion. 3.2 INDUSTRY 4.0 The desi e o cus ome s o g ea e connec i i y wi h au omobiles will b ing impo an shi s in he au omo i e indus y. The ques ion hen will be how indus y 4.0 will shape he u u e o he au o indus y. Acco ding o AP news, di e en ac o s will allow his change. Fi s ly, he Moni o P edic E icien , which is ela ed o Big Da a, will help o de e mine he causes o p oduc ion ailu es. P edic i e analy ics can help o iden i y ine iciencies in he p ocess wi h he objec i e ha imely ac ions can be aken. This applica ion o he IoT will supposedly be an impo an help o he au omo i e indus y gi en ha i p e en s quali y ailu es. Fo au o manu ac u e s, i is be e o be p edic i e han eac i e. Fu he mo e, eal- ime da a will help manu ac u e s wi h in en o y managemen , asse u iliza ion, and educing ope a ional down ime. 21 Secondly, Indus y 4.0 will o e bene i s o make he supply chain mo e agile, IIoT will ha e unique ad an ages in he au omo i e indus y ensu ing he connec i i y o e e y pa o he supply chain. Supplie s and OEMs will achie e agili y by adap ing o he changing s anda ds. Finally, Indus y 4.0 will allow cus omizing indi idual ehicles and minimizing he deli e y ime o hose ehicles. IIoT will allow pe sonaliza ion as well as choosing he dashboa d and he s ee ing wheel, u he mo e, wi h he in oduc ion o indus y 4.0 he idea o d i e less ca s has u ned in o eali y. The applica ion o he Indus y concep in he au omo i e indus y will a ec manu ac u ing p ocesses so ha he p oduce ’s alue chain will change om design o he a e -sale se ice. The p ocesses will be op imized h ough in eg a ed IT sys ems by using IoT along he alue chain, as a esul , oday’s manu ac u ing lines o cells will be eplaced by ully in eg a ed and au oma ed p oduc ion lines wi h indus ial o collabo a i e obo s. By implemen ing he use o obo s and sma p oduc s and machines ha will in e ac and ake decisions be ween each o he , he p ocess’s manu ac u ing lexibili y will inc ease. P oduc s, p ocesses, and p oduc ion au oma ion will be designed and ep esen ed isually in an in eg a ed p ocess, and h ough supplie collabo a ion; he physical p o o ypes will be educed o a minimum. The logis ics will use au onomous ehicles and obo s, so i will become logis ics au oma ed as i will be au oma ically adjus ed o p oduc ion needs (Wagne , T., He mann, C., & Thiede, S. 2017). Acco ding o Edga Daniel Oli a, he applica ion o indus y 4.0 in he au omo i e indus y will a ec he p oduc ion p ocesses p oducing he change o he alue chain om he design o he pos -sale se ice. The p oduc ion p ocesses will be op imized h ough IT sys ems ha will be in eg a ed using he IoT along he alue chain. The esul will be ha he p oduc ion cells will be eplaced by o al in eg a ed p oduc ion lines wi h indus ial o collabo a i e obo s. Thanks o he in oduc ion o in elligen machines, he lexibili y o he p oduc ion p ocess will inc ease. P oduc p ocesses and p oduc au oma iza ion will be designed i ually in an in eg a ed p ocess and wi h he collabo a ion o he supplie s; he physical p o o ypes will be 22 educed. Machine Lea ning will allow he sel -op imiza ion and pa ame e adjus men s o he manu ac u ing p ocesses. Finally, logis ics will use au onomous ehicles and obo s o c ea e an au oma ized logis ic ha will be adjus ed o he p oduc ion necessi ies (Oli a Na a o, E. D. 2018). Technology causing he ans o ma ion o he au omo i e sec o is called CASE (connec i i y, au onomy, sha ed mobili y, and elec i ica ion) echnologies. Each echnology has s a ed o a ec he sec o in many ways and hei con e gence will ha e an impo an impac on he au omo i e alue chain. I means ha du ing he nex decades some OEMs will all behind he echnology inno a ion cu e due o hei subs i u ion by la ge supplie s o hey will simply close hei doo s. The e o e, o emain ele an in his new echnology pe iod, companies in he au omo i e ecosys em a e in es ing in p oduc manu ac u ing and p ocess inno a ion. Some manu ac u e s a e looking o compe i o s o oppo uni ies o ein o ce hei echnology po olio. O he companies a e sea ching o digi al ans o ma ion ini ia i es o inc ease he e iciencies in he manu ac u ing p ocess, in es ing in echnology solu ions like sma ac o ies, cobo ics, o digi al supply ne wo ks. Ne e heless, ocusing on he echnological solu ion could no be enough and he global au omo i e indus y will equi e a ein en ion o all he aspec s o he business, including he manu ac u ing p ocess, he business model, and he cus ome expe ience. The ans o ma ion will be only achie ed when he digi al echnologies will be connec ed wi h an in eg a ed o ganiza ional design. As can be seen, o succeed in he inno a ion e a he au omo i e companies will ha e o ake ad an age o a a ie y o ad anced echnologies. This digi al h oughpu ac oss he en i e alue chain will gene a e ons o da a in eal- ime, hen, companies ha will be success ul a cap u ing and analyzing he da a and in o ma ion will unlock exponen ial g ow h o accele a e he inno a ion cu e. The implemen a ion o hese echnologies will suppose a se o challenges like he sho age o alen o plan, execu e and main ain new digi al sys ems. The numbe o enginee s handling big da a is g adually inc easing bu i does no ul ill he demand (Deloi e, 2020) The quickes way o ending any eme gen ans o ma ion will be he company’s inabili y o a icula e i s alue o managemen , in es o s, and employees. 29 he cus ome s, which means ha au omo i e manu ac u e s mus expand he ange o p oduc s o e ed (Al o d, D., Sacke , P., & Nelde , G. 2000). To achie e lexibili y, Addi i e manu ac u ing allows manu ac u e s o sa is y he ma ke demands (Welle , C., Klee , R., & Pille , F. T. 2015). Gi en ha i allows a cos - e ec i e adap a ion o he p oduc ion p ocess, as p oduc and p ocess con igu a ion in he supply chain, new p oduc de elopmen , and pe o ming di icul design geome ies. In he au omo i e indus y con ex , some companies like BMW used addi i e manu ac u ing o make hand ools and he esul was a sa e in he cos o 58% and a p ojec ime educ ion o 92% (Delic, M., & Eye s, D. R. 2020). The use o addi i e manu ac u ing allowed Mini, which is a BMW G oup b and o o e o hei cus ome s’ di e en online se ices like cus om inlays be o e using addi i e manu ac u ing and include i in a pe sonalized ehicle (Addi i e news,2018), ne e heless, a ew numbe s o companies use his me hod. In au omobile p oduc ion, he main poin is he a oidance o ailu es ha can a ise due o poo design and p oduc ion o he inabili y o espond o cus ome needs (Delic, M., & Eye s, D. R. 2020), o his eason, au omobile companies p oduce p o o ypes using compu e design o educe he p oduc con igu a ion ime. The SCF can imp o e he compe i i eness o he company in di e en ields, especially in he decision-making p ocess o applying new echnologies (Sánchez, A. M., & Pé ez, M. P. 2005). Ne e heless, some manage s do no ha e a comple e ision o lexibili y and hey a e ocused only on machine lexibili y wi hou aking in o accoun he lexibili y o he en i e sys em. The need o p oduc di e en ia ion in he au omo i e indus y has supposed he in oduc ion o new p oduc ion me hods, new pa s, and new designs. An impo an abili y o he indus y is he capaci y o p oduce di e en ypes o p oduc s di ec ly om he aw ma e ials gi en ha i will allow companies o p edic p oduc ion di icul ies. Gi en ha he au omo i e indus y is cha ac e ized by a cons an p essu e o c ea e ela ionships wi h key supplie s, he inclusion o hese supplie s in he i s pa s o he p oduc de elopmen will imp o e lexibili y and educe p oduc de elopmen ime and cos s. Addi i e manu ac u ing allows he i s supplie in ol emen in he componen and inishing p oduc design. O iginal equipmen manu ac u e s (OEM) and supplie s 30 use addi i e manu ac u ing o suppo he decision-making p ocess; his helps he OEM o c ea e he ie 0.5 supplie s, which a e hose supplie s ha will collabo a e o achie e as e changes and inno a ions o au omobiles A lexible supply chain will allow he quick placemen o new and exis ing p oduc s in he equi ed quan i ies and i will also enable lexibili y in he deli e y p ocess. 3.3.3 Speci ic cases This pa o he esea ch has been ob ained om he documen “Supply Chain Managemen o Mass Cus omized Au omobiles”, which has been w i en by A shia Khan. 3.3.3.1 Me cedes-Benz Supply Chain Me cedes-Benz has been ocused on he educ ion o e ical in eg a ion, as a esul , he company ope a es a ound he wo ld bu he mainly assembling plan s a e loca ed in Eu ope. The company has achie ed a highly in eg a ed supply change; ne e heless, hey a e s ill in oducing he modula app oach o ge in long e m ela ionships wi h supplie s. The company belie es in a policy o ew bu eliable supplie s, some o he supplie s a e ThyssenK upp AG o Eagle O awa GmbH. Me cedes-Benz has a huge amoun o a ian s, which implies an inc ease in he lexibili y and complexi y in he wo king en i onmen . These cha ac e is ics ha e made he company mus be ocused on lean p oduc ion o educe in en o ies, assu e he supply o ma e ials, and secu e he ime deli e ies. An impo an poin in he company is he modula app oach, which has educed he wo k in he plan gi en ha la ge p oduc ion modules (cockpi , s ee ing column e ce e a) a e anspo ed as a single uni o m om he supplie s o he plan . This s a egy supposes less in es men and less isk. Gi en ha almos hal o he R&D in es men is ela ed o g een echnologies, he company has needed o ou sou ce some unc ions. I is ex emely necessa y o de e mine wha will be done in house and wha will be ou sou ced. Acco ding o he 31 company, he a chi ec u e de elopmen and he sa e y ea u es will ne e be ou sou ced, ne e heless, many depa men s and enginee ing can be ou sou ced. 3.3.3.2 BMW BMW AG has a highly de eloped sys em wi h a lexible p oduc ion line o de elop cus omized ehicles. Fu he mo e, he company uses he “Cus ome -O ien ed Sales and P oduc ion” p og am, which allows hem o p oduce a cus omized ehicle in 12 days. 50% o he BMW p oduc ion is loca ed in Ge many. The Ge man company has a close ela ionship wi h many supplie s and hey ely on hem o he inno a i e p ocess and new p oduc de elopmen . These supplie s a e loca ed close o BMW plan s o p o ide he JIT me hod. BMW AG has ca ied ou a huge au oma iza ion. When a cus ome makes an o de , he sys em will de e mine which ac o y will build ha o de depending on he a ailabili y o ma e ials. Fo his me hod, he company uses he SAP sys em o manage in en o ies and p oduc ion s a uses. This sys em will help o educe he deli e y ime o he ca . One o he di e ences wi h MERCEDES-BENZ is he numbe o supplie s, BMW AG has 12000 supplie s om 70 coun ies, o his eason, he company has a specialized depa men o in eg a e di e en aspec s like en i onmen al s anda ds com o ably. The company also uses he supply cen e sys em, BMW has de eloped i s si e and all he supplie s and p o ide s a e enan s. Gi en he p oximi y o he supplie s, he la e module con igu a ion is possible using he JIT. T ans o ming he supplie in o a enan and no he owne o he si e will inc ease he con ol o he company o e i s supplie s. The company has also ca ied ou an ou sou cing s a egy; one example is he ca sea s. When he o de is ecei ed, BMW sends he o de o he supplie acco ding o he selec ed speci ica ions and he o de a i es a he assembly line 90 minu es be o e he inal assembly. Supplie s a e loca ed nea he assembly lines. BMW AG uses he 3 con en deli e y ne wo k (3CDN) o inc ease he speed o he in o ma ion low be ween Munich (Main headqua e ) and he 4000 deale s which a e dis ibu ed a ound he wo ld, wi h he 3CDN he company will ensu e maximum a ailabili y all he ime. 32 3.3.3.3 Volkswagen AG The company is one o he pionee s o mass cus omiza ion. Gi en he la ge amoun o p oduc ion which is ca ied ou in Volkswagen, he company has o deal wi h longe lead imes in mass cus omiza ion. Volkswagen Ag uses a decen alized and e ically in eg a ed sys em. All he b ands o he company a e conside ed indi idually; howe e , hey sha e he pla o ms inside he company, which gi es o he company a compe i i e ad an age. The logis ic sys em in plan s has inc eased he e iciency o he company; some examples o he imp o emen s which ha e been achie ed hanks o his echnique a e he elimina ion o se e al e o s in he manu ac u ing sys em and being able o cope wi h high p oduc ion olumes. The sys em p e iously men ioned is called “Ride along wi h he pla o m” be o e i s implemen a ion wo ke s had o pull he pa s o be assembled. The Supply Chain o he company is an in eg a ed p ocess ha has achie ed dynamic changes in he supply sys em because o di e en me hods like he FAST p og am. This p og am ies o cope wi h he challenges o modula p oduc ion, o his eason, Volkswagen analyses e e y supplie and selec s he ones who a e e icien enough o ace hese challenges. Conce ning he supplie ’s loca ion, he Supply Cen e concep has been used by he company o ge he supplie nea o he assembling line. The Supplie ’s con ibu ion o he alue-added o he company is lowe han in BMW o Me cedes. The company has an impo an a ini y o in-house ope a ions and since se e al yea s ago has ca ied ou in es men s o implemen his echnique ins ead o s a ing wi h he de elopmen o ou sou cing as o he companies. 3.4. TENDENCIES IN THE SECTOR The main endency o he au omo i e sec o ega ding he u u e o he indus y is sus ainabili y. In he au omo i e sec o , sus ainabili y has pa icula impo ance gi en ha he membe s o he indus y ha e o comply wi h he en i onmen al s anda ds and mee he social equi emen s bu a he same ime, hey ha e o main ain a compe i i e le el in a sec o ha is cha ac e ized by luc ua ions in he cus ome s demand and he 33 cons an changes in he egula ions. The en i onmen al challenges and go e nmen policies ha e o ced he au omo i e i ms o inco po a e sus ainable Supply Chain Managemen (SSCM) in hei ac i i ies, which has helped o e e se he ad e se e ec o he indus y and has implemen ed he use o en i onmen ally iendly p ac ices o imp o e he p o i abili y o he business (Ma hi a hanan, D., Kannan, D., & Haq, A. N. 2018). The sus ainable pe o mance will imply some changes in he adi ional supply chain s uc u e which will be linked wi h a se o challenges. Compe i i e p essu e is being in ensi ied gi en ha low-cos manu ac u e s can unde mine Eu opean leade ship. Ano he impo an ques ion is he a ailabili y o u u e esou ces (Suki sch, M., Enge , S., and Baumga ne , 2015).SSCM p ac ices mus be ollowed by wo p inciples. The i s one is he p omo ion o ecological heal h and he imp o emen o economic i ali y. The second one is he p io i iza ion o he en i onmen i s , socie y second, and economics hi d. Supply Chain O ien a ion (SCO) will be an impo an ool o achie e sus ainabili y. Gi en ha SSCM is based on SCM concep s and in sus ainabili y pe o mance, he supply chain pe o mance pe spec i e makes a logical connec ion wi h he SCO, which can be de ined as “ he ecogni ion by a company o he sys emic, s a egic implica ions o he ac i i ies and p ocesses in ol ed in managing he a ious lows in a supply chain” (Espe , T. L., De ee, C. C., & Men ze , J. T. 2010). SCO can be conside ed an o ganizing in luence ha has ocused i s e ec s on in e nal o ganiza ional capabili ies such as sus ainable p ac ices. The o ganiza ional SCO will design an o ganiza ional cul u e ha can con ol he s uc u e o he o ganiza ion and achie e he supply chain goals (Lee, T., & Nam, H. 2016). One o he p ima y objec i es o he au omo i e supply chain is o be su e ha ehicles a i e a he end cus ome unde good condi ions, bu on he o he hand, i is impo an o be su e ha he end li e ehicles a e ecycled p ope ly and can be eabso bed in o he manu ac u ing p ocess. Fo his eason, he supply chain mus be ex ended o include eco e y ope a ions like emanu ac u ing o ecycling. 34 Then, he i s pa o he chain will be ela ed o he ehicles ha mus be deli e ed o he cus ome and he second pa will be ela ed o he eabso p ion o he used ehicles. Acco ding o Olugu, he complexi y in g een supply managemen will be ela ed o he unce ain ies associa ed wi h he eplacemen / eco e y p ocess and he e e se p ocess i sel due o he anspo a ion o use p oduc s. Adop ing he p oposal o he wo chains hese p oblems can be minimized. The i s chain will be he o wa d chain and he second one he backwa d chain. The o wa d chain mus assu e ha he p oduc is g een enough and sa is ies he cus ome ’s needs. Then, he pe o mance measu emen should quan i y how g een he p ocess o making and deli e ing he ehicles is. Rega ding he backwa d chain, i begins wi h he cus ome s and lows o he collec ion cen e , hen o he ecycling cen e and om he e he ecycled ma e ials go back o he supplie o make hem a ailable o he manu ac u e . Ano he possible scena io can be he manu ac u e collec ing he ma e ial di ec ly om he ecycling cen e and in eg a ing i in o he manu ac u ing cen e (Olugu, E. U., Wong, K. Y., & Shaha oun, A. M. 2011). Ano he impo an ac o o achie e he sus ainabili y o he supply chain is he supplie commi men o he g eening exe cise. Fo his pu pose, acco ding o Olugu he e exis s di e en me ics. The i s one is he supplie en i onmen al ce i ica ion. Acco ding o his ac o , he selec ed supplie s mus be ecognized as p ac i ione s o g een sou cing and supplying. The second ac o is he le el o supplie pe o mance and sus ainabili y. This Measu e can be done pe iodically o eassu e he commi men o he g eening exe cise. O he measu es a e use ul o iden i y he in e nal ope a ions o he company o achie e an en i onmen ally supply chain. Some o hese measu es a e he le el o p ocess managemen and he a ailabili y o p ocess op imiza ion o was e educ ion. The i s one will consis o he le el o op imiza ion and modi ica ion o he p ocesses o educe he en i onmen al impac . The second one analyses whe he he company has a s uc u e o educe he was e gene a ed du ing he manu ac u ing p ocess. 35 I can be concluded ha Indus y 4.0 and he ci cula economy can be conside ed he u u e o he o ganiza ions due o he ise in au oma ion and e e se logis ics p ac ices ha will allow achie ing global sus ainabili y. Acco ding o Oli ei a, some 4.0 Indus y ac o s like he in eg a ion o digi al and physical sys ems o he adop ion o ad anced machine lea ning algo i hms ha e he objec i e o p omo ing digi aliza ion and de eloping sma sys ems ha can de elop sus ainable esou ces o ob ain a g een u u e. Supplie s a e also conside ed as an impo an pa o achie e sus ainabili y, o his eason, will be impo an o ha e a posi i e commi men om hem o deli e ing ecycled ma e ials. Fu he mo e, he digi aliza ion o supply ac i i ies will op imize ou pu s hanks o he emo al o was e and non alue added addi i es (Yada , G., Lu h a, S., Jakha , S. K., Mangla, S. K., & Rai, D. P. 2020). Educa ing he cus ome s o ecycling p ac ices will be ano he impo an aspec gi en ha wi h he igh ecycling p ac ices he manu ac u ed p oduc s will no ha m he en i onmen . Rega ding he ci cula economy, he adop ion o he 6R’s (Recycle, euse, educe, e use, e hink and epai ) will be di ec ly linked wi h sus ainabili y. As p e iously said, ecycle is ela ed o he e-p ocessing o a ca o be used in a new one. Reuse e e s o he use o he ma e ials o pa s o a was e p oduc in a new one, educ ion consis s in minimizing he ma e ial and ene gy used in he p oduc ion li e cycle. Re use will consis in ejec ing he p oduc i i is no equi ed o i i is no sus ainable. Re hink e e s o inding al e na i es o he op imiza ion and inally, epai consis s o inding he measu es o ix any p oblem (Yada , G., Lu h a, S., Jakha , S. K., Mangla, S. K., & Rai, D. P. 2020). 4. CONCLUSIONS This wo k has analyzed he e olu ion o he au omo i e indus y and i s ope a ion managemen om he i s yea s o ca p oduc ion un il he p esen si ua ion. To do he analysis, i has been ca ied ou a s udy o he p oduc ion igu es in he indus y du ing he las 15 yea s and a bibliog aphy ecompila ion o explain he e olu ion o he indus y. 36 The wo k has been di ided in o wo pa s. The i s one has explained he e olu ion o he indus y including he beginning o he indus y, Hen y Fo d’s supply chain me hod, he adop ion o he Jus in Time me hod, and he e olu ion o he p oduc ion du ing he las i een yea s. The second pa o he wo k has explained he cu en si ua ion o he sec o , p o iding igu es abou he p oduc ion o he yea 2020 and explaining how indus y 4.0 is being adop ed in he indus y. The wo k will inish wi h he endencies o he au omo i e indus y in e ms o sus ainabili y. In he mode n age, he de elopmen o he economy o any coun y canno be imagined wi hou he de elopmen o he au omobile indus y. The con ibu ion o he sec o o he GDP s uc u e is inc easing and his dynamic will c ea e new jobs inc easing a he same ime he a e age wage. The au omo i e indus y con ibu es o he e enues o he s a e budge , de elops auxilia y b anches, and in luences scien i ic and echnical p og ess. Then, he co ec unc ioning o his indus y will be ele an in he economic ield bu also he social one (Sabe i, B. 2018). Fluc ua ing ma ke demand o cus ome equi emen s will be key challenges in he au omo i e indus y gi en ha cus ome s a e mo e demanding and he a ie y o ca s is an inc easingly complex challenge. To main ain and imp o e he le el o e iciency, quali y, and cos s, he au omo i e indus y will ha e o sea ch di e en a eas o s eamline i s ope a ions. When i comes o adop ing he la es echnology, he au omo i e indus y has always been a he o e on . F om Hen y Fo d’s in oduc ion o he assembly line o he de elopmen o elec ic ca s, he ca indus y has expe ienced di e en inno a ions. A his momen , he indus y is acing he in oduc ion o indus y 4.0, which is eady o eshape he indus y. Al hough he au omo i e indus y has al eady adop ed indus y 4.0, many companies ha e no comple ely aken ad an age o he echnology. Conside ing he po en ial o he IIoT, i is expec ed ha in 2022 mo e han 25% o he plan will u n in o sma ac o ies (AP News, 2020) I indus y 4.0 is unde s ood as he digi aliza ion o he whole p oduc li ecycle, i has he capaci y o c ea ing a e olu ion in he au omo i e indus y. The in o ma ion 37 backbone o indus y 4.0 can educe p oblems a he company le el bu also be ween di e en depa men s. This will ha e wo majo e ec s. The i s one is ha complex p oduc s can be analyzed as a whole. This will allow unde s anding ela ionships and op imizing he p oduc and i s p oduc ion o an indi idual cus ome 's needs. Secondly, he c ea ed p oduc , ela ed o i s de elopmen , p oduc ion, and en i onmen , can au oma e decisions and ac mo e p oac i ely in i s en i onmen (A mengaud, E., Sams, C., on Falck, G., Lis , G., K eine , C., & Riel, A. 2017, Sep embe ) The new endencies in he sec o will mean signi ican changes and he implemen a ion o Indus y 4.0 in he,e acili ies will change he manu ac u ing models. The c ea ion o depa men s wi hin he o ganiza ion will be one o he key ac o s o achie e he implemen a ion o Indus y 4.0. These new depa men s will be in cha ge o managing, analyzing, designing, and implemen ing all possible changes o be made o achie e he ull in eg a ion o he ac o y. I will be necessa y o s anda dize he di e en sys ems and he esou ces needed o acili a e he in eg a ion in all he ac o ies o he company. 38 5. BIBLIOGRAPHY 1. AP News (2020, 29 June) Bene i s o Indus y 4.0 o he Au omo i e Indus y. 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