Interoperability Costs Get Noticed
> Thank you for sharing with me NIST's study "Interoperability Cost >Analysis of the US Automotive Supply Chain". I think you have hit upon a topic where NIST can make a major difference.
> As I told you over the phone, I would put my comments on the study in writing. These are my personal opinions that I have not cleared with anyone.
ɭ. Your arguments about the $1 billion/yr. costs to the US automotive industry from imperfect interoperability seem low because they do not put much weight on the competitive advantages to US suppliers if they could realize the time and cost savings from a more perfect operability. Ten to fifteen years ago we were worrying about how to match the competitive advantage of the Japanese from their close working relationships along the supply chain from the Keiritsu system. If the various tiers of the US auto industry were able to take full advantage of PDES, STEP and related standards, they might match the Japanese ability to work together without the Keiritsu's long-term intertwining of businesses.
> It is counter-intuitive to accept the conclusion of most interviewees (page 5-12) that lost profits from lost market share due to interoperability delays are minimal. STEP should have the ability to affect market share dramatically at the various levels of the supply chain. If US auto suppliers at all levels could work significantly faster, cheaper, more cooperatively, and in accordance with international standards such as STEP, they almost by definition will be more competitive. They should be better able to win supplier new business with foreign auto companies and suppliers at home and abroad and perhaps back out some of the foreign suppliers who have made inroads with domestic suppliers which I don't think is recognized in the $1 billion figure. I am also not clear whether STEP would eventually permit repair shops, body shops, and others who might have insights into product improvement into the design process.
Letter to NIST Director from Jim Turner (Minority Counsel - House Science Committee)
“I think you have hit upon a topic where NIST can make a major difference.”
CAD/CAM Data Interoperability Problem Is Costly For Auto Sector