The Higher Maturity Level of the Development Processes Through Adopting Key Performance Indicators (KPIs) and Lean Thinking in the Automotive Industry

Master's Thesis from the year 2024 in the subject Business economics - Project Management, grade: 1.3, University of Applied Sciences Dortmund (Economics), course: Project Management, language: English, abstract: The automotive industry is experiencing significant transformation due to the introduction of advanced technologies such as advanced driver-assistance systems (ADAS), autonomous driving, connected vehicles, and vehicle electrification. These advancements have considerably increased the complexity of the electronics and software integrated into modern cars. Consequently, original equipment manufacturers (OEMs) and their electrical system suppliers face substantial pressure to ensure high quality at every stage, from system design to specific domains, by adhering to industry standards and best practices. Thus, Automotive SPICE (Software Process Improvement and Capability dEtermination) was developed to address the challenges in automotive system development. OEMs now mandate that suppliers achieve at least Automotive SPICE process capability level 3, which signifies that a supplier's development processes are well-defined, consistently implemented, and effectively managed. Elmos is striving to fulfill OEMs'mandate. Automotive SPICE guides the necessary processes and attributes to meet automotive industry requirements. However, it does not dictate specific methodologies or tools for implementation. This study proposes a comprehensive model to achieve process capability level 3 and beyond by integrating Automotive SPICE with key performance indicators (KPIs), lean thinking, and the 5 Whys technique. The research methodology combined an integrative literature review with qualitative interviews with an industry expert. The findings from the literature review were validated through these expert interviews. The study identified crucial metrics for evaluating the efficiency and effectiveness of system and software development processes, such as requirements quality, reusability, requirements volatility, project management, risk management, architectural design, and product quality. Integrating lean principles can significantly improve development processes by streamlining workflows, reducing waste, and fostering continuous improvement. Additionally, the 5 Whys approach is a valuable tool for analyzing performance deviations and identifying root causes of problems. Overall, by adopting this holistic approach, companies can improve the maturity level of their development processes. The chosen 15 key metrics form a robust basis for delivering actionable insights into the performance of Elmos' development processes.