Operation management: industrial reality of Peugeot PSA Citroën

Résumé du document

During the 20th century, the world went through many evolution phases, especially in the automotive industry. Today, this industry is a very important factor in economic development. PSA is a French automotive manufacturer. In 1973 the company made a merger with Citroën, and became the second European manufacturer behind the German group: Volkswagen and the 7th in the World. This status is maintained to date. The actual economic context is characterized by a constant increase of competition with a multiplication of national and international commercial flows. The products have shorter life cycles, and tastes have become different for everyone. Clients are constantly searching for a unique product which is perfectly adequate to their needs. Thus, differentiation is the only solution to satisfy the demand. The companies must insist on quality and diversify their production. Parallel to this, automobile companies have to reduce their production costs to remain competitive. Thus, PSA adopted the Just in Time to become more flexible and efficient in their methods of production. This management strategy has now become the base of their way of thinking, leading to the adoption of Kanban, and the lean management. The PSA group can put vehicles on the market quickly with reduced costs thanks to its platform policy in order to answer easily to all different expectations of the clients.

Extraits

[...] relies heavily on employee training, group work which allows for answers to problems posed surprising” according to D. Filippozzi, Head of manufacturing site engines. Lean thinking at PSA The company must ensure uninterrupted flow in his stock. The company pulls its production according to the demand. Production tasks are standardized to facilitate continuous improvements through the elimination of all tasks to non-added value. It is the role of managers and operators to find and eliminate the root causes of problems. Each employee is invited to reflect, to propose improvements. [...]

[...] The WIP stock includes the raw materials as well as some parts of the car (gearbox, engine . ) In the case of the Gearbox factory, the activity of PSA Valenciennes does not constitute a source of profit. No margin is made, because the factory works for the account of the firm. Once the order is wrapped-up, the merchandise is placed in trucks. These trucks deliver only one assemblage factory at the time, according to the car-model that the pieces are made for. [...]

[...] Managers must be directly on the ground and not in the offices. B. Just In Time Citroen is using the just in time strategy; it means that the bits required in order to build a car arrive at the production line at the moment they are needed. Moreover, nearly nothing is pres-stored in warehouses and the demand” production of components improves overall efficiency. Citroen sees just in time as a philosophy First of all, waste have been eliminated or minimized. [...]

[...] The Supply chain in Citroën PSA The “Maison Citroën is supported by two major pillars, on witch rests its logistic strategy. The first base is quality. The frequent controls allow production to be almost defectless. At each post, there is a quality control. The surveillance devices, the conformity of the products and the quality of the suppliers also play a big role in the value of the end products. The Second base, in order to avoid overproduction is the use of Just in Time organisation. [...]

[...] Between 2009 and 2010, the first of lean management prerogatives should be dispatched in concessions and agencies Peugeot and Citroën. The PSA production system in manufacturing: Process PPS 1.To challenge by ambitious purposes 2.Stabilize to allow progress 3.Adopt good technical principles to focus on customer value 4.Grow autonomous teams by eradicating waste 5.Develop behaviours and attitudes related to values No Default To achieve building quality in every step, PSA sets up: 1.Self control 2.Monitoring device 3.Conformity 4.Quality of the suppliers Lean management is effective from the reception of external components to the shipping of finished products through techniques of internal changes. [...]