What does a program manager do?

What is a Program Manager in the Automotive Industry?

The development and production life cycle of a platform/vehicle/model is called a “program”. When creating a new program, it is essential for automotive OEMs (original equipment manufacturers) to work with their suppliers to source most of the systems and components that make up the complete vehicle.

Program managers exist at both complete vehicle manufacturers and parts manufacturers.

In the manufacturing of automobiles, various departments work together to make sure that the vehicle is manufactured on time, on budget, and to specifications, including purchasing, which procures materials, engineers, which develops the vehicle to make it a reality, and planning, which examines when the vehicle needs to be put into production and what the expected rate of return will be. The program manager is responsible for managing and organizing the entire process to ensure that each and every cog in the wheel runs smoothly.

He/she will bring everyone together, manage the master schedule and budget, and be responsible for the success of the program in many ways. Must be familiar with all areas of product development and the manufacturing process and be a focal point when problems arise.

For salespeople at Japanese parts manufacturers
Some Japanese-affiliated parts manufacturers have a program manager position, but in many cases, salespeople at Japanese-affiliated companies also serve in the role of program manager. At foreign companies, there is a division between account managers who conduct sales activities andprogram managers. Therefore, those who have experience in budget and schedule coordination and other tasks as a sales representative at a Japanese parts manufacturer can aim for a program manager position at a foreign company as their next career option.

Relevant departments with which the program manager communicates and the percentage of these departments

Program Manager Workflow

Once the RFQ (Request for Quotation) is issued, which is obtained by the Account Manager/Sales, the Program Manager is consistently involved in the program until the start of production (SOP) plus 6 months to ensure that everything is running smoothly. It is important to resolve any problems should they arise, or before they arise.

They will also participate in design review meetings and meetings with the production team for prototyping. They may also work with materials and planning groups to build the supply chain to ensure deliveries are on time.

There is also a lot of interaction with the client to make sure that the validation testing is going well and to report its progress to the management team.

This means that you will engage with a wide range of internal and external stakeholders and be responsible for the success of the program.

Finished vehicle manufacturers (OEMs) and automotive parts manufacturers (suppliers)

The relationship between complete vehicle manufacturers (OEMs) and component manufacturers is critical to the development and production (program) of new models.

Suppliers compete to participate in the program and, if successful, can win long-term contracts for thousands or millions of parts.

There are two main styles of supply contracts.

build-to-print

Complete vehicle manufacturers (OEMs) provide component designs and specifications, and suppliers must quickly submit comprehensive bids detailing all aspects of production, quality assurance, and pricing. Several rounds of bidding may take place before the final order is received.

Because the OEM controls the design, competing suppliers have limited options for differentiation. Suppliers emphasize their capabilities, quality, and reputation, but the OEM always has the upper hand and competition is often narrowed to price and terms.

At this stage of the risk lifecycle, the program is still just a design in a CAD file (draft design) and the work of development, testing, and full-scale production has not even begun.

The supplier will prepare a bid with the most experienced engineers in tow, but costs and timescales are all in the estimation phase. The supplier’s success depends on the accuracy of the bid and there is no room for error; the OEM may impose heavy penalties if the supplier does not adhere to the pre-agreed price and keep the program on track.

Reference Example: Continental Build-to-Print Service (B2P )

full service

Primarily, the complete vehicle manufacturer (OEM) provides the specifications for the required components, but sometimes the supplier will propose a new innovative system or component that the OEM will incorporate into a new model. In either case, the supplier is both the designer andmanufacturer of the system or component.

Similar to a build-to-print contract, a comprehensive bid is submitted, but a preliminary order is placed to permit detailed design work, and a final order is placed by the OEM once the design is approved.

Full-service suppliers have closer relationships with their OEM customers and often end up supplying premium products with more attractive profit profiles. However, full-service contracts also carry a higher degree of risk borne by the supplier.

For example, a supplier with design authority for a component may be responsible for all costs incurred in making engineering changes after the design is finalized. In addition, the more complex the product, system, or assembly (embedded), the greater the opportunity for problems to arise internally and with downstream suppliers.

Difference between a program manager and a project manager

Program management is sometimes confused with project management. In the automotive industry, in some cases, depending on the organizational structure of a company, project manager and program manager are the same role. It is best to recognize that different companies call it differently.

In some cases, there are multiple projects in a “program,” which is the development and production life cycle of a vehicle . In such cases, the program manager must communicate with each project manager to manage the progress of the project and the program.

What is the program manager’s annual salary?

The program manager is basically a position in a foreign company. As mentioned above, in many Japanese companies, the sales representative covers the area of program manager.

＜ Annual salary range for program managers＞
・Junior level: approx. 7 million yen to 10 million yen.
Senior level: Approx. 10 to 13 million yen.
Director level: Approx. 14 to 18 million yen.

What skills are required?

Master’s degree in engineering or business administration Experience
An engineering degree related to a company’s products will allow you to take on a wide range of positions, including program managers as well as developers. Rarely, program manager positions exist that do not require an engineering degree, but depending on the product you are responsible for, studying for product knowledge and understanding is recommended.

Experience
– Purchasing and Supply Chain
– Production Control and Quality
– Product and Process Engineer Experience

After the above positions, many of us move up the career ladder to program manager, from order receipt to production, and a broad range of experience in this area will help us perform our duties more efficiently.

Experience in team management
– Finance skills (master business plan calculation, budget management, profit improvement experience
– Knowledge of quality tools (FMEA, Design of Experiments, “QRCI”/problem solving skills)
– Build strong relationships with senior level clients Ability to

What is FMEA?
Failure Mode and Effect Analysis stands for Failure Mode and Effect Analysisand refers to a potential risk-to-criticality analysis method in the manufacturing process.
Initiated by the U.S. military in the 1940s, failure mode and effect analysis (FMEA) is a design, manufacturing and assembly process, in products and services It is a step-by-step approach to identifying all possible failures in design, manufacturing and assembly processes, and products and services. It is a common process analysis tool.

<Recommended Qualifications>
The Project Management Professional (PMP) is the name of the international certification exam recognized by the Project Management Institute (PMI), an international organization for project management. It is a certification that recognizes knowledge and experience in project management. There are more than 20,000 PMP holders in Japan and more than 350,000 worldwide.

How do I get a job as a program manager? What is the career path after that?

If you are currently a program manager, or are looking to become a program manager, we have extensive experience supporting career changes from engineering, project management, production management, or sales to program manager, or from program manager to management, etc. We can provide you with the career options you desire. We can offer you the best career options to meet your needs.

Turnpoint Consulting specializes in the mobility industry, dealing with companies that provide a wide range of other mobility-related services as well as automobiles.

Please feel free to apply for a free career consultation. We will support your job search by offering career options, guiding you to private jobs that even major agencies do not offer, assisting you with interviews, negotiating annual income, and assisting you with resignation procedures.