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Improving Car Body Production at PSA Peugeot Citroën
Alain Patchong, Thierry Lemoine, Gilles Kern,
To cite this article:
Alain Patchong, Thierry Lemoine, Gilles Kern, (2003) Improving Car Body Production at PSA Peugeot Citroën. Interfaces 33(1):36-49. http://dx.doi.org/10.1287/inte.126.96.36.19923
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Improving Car Body Production at PSA
Alain Patchong • Thierry Lemoine • Gilles Kern
PSA Peugeot Citroen, Route de Gisy, 78943 Velizy, France
firstname.lastname@example.org • email@example.com • firstname.lastname@example.org
In 1998, following a change in top management, the new CEO of PSA Peugeot Citroen decided ¨
to adopt a triple-axis strategy of growth, innovation, and proﬁtability and set an ambitious target for each. To meet these objectives, PSA decided to focus on the car-body shops, which were the bottlenecks of its plants. An R&D team conducted a project to support car-body production for PSA Peugeot Citroen. PSA manufactures over 75 percent of its cars on lines ¨
designed and continually improved with the team’s new analytic operations research tools. These OR tools, which combine simulation and Markov-chain models of series-parallel systems, have improved throughput with minimal capital investment and no compromise in quality—contributing US $130 million to the bottom line in 2001 alone. The impact of this project went beyond the boundaries of PSA as its suppliers acquired the tools without being requested to do so.
(Industries: automotive. Production/scheduling: applications.)
The Body Shop, the Paint Shop, and
the Final Assembly Shop
PSA Peugeot Citroen, established through a merger of
the two prominent French carmakers Peugeot and Citroen in 1976, is the sixth-largest carmaker in the world ¨
and the second-largest in Europe (PSA stands for Peugeot Societe Anonyme). PSA is on a strong growth tra´ ´ jectory; it is, in fact, the fastest-growing car company
in the world. Production for 2004 is projected to be 3.5
million cars, up from 3.1 million in 2001 and 2.3 million
in 1998. PSA will launch 25 new car models between
2001 and 2004. The ﬁnancials are also very robust, with
net proﬁts of $2.33 billion in 2001 on sales of $45.49
billion. PSA’s sustained proﬁtability and growth are
strongly supported by its 16,000-person research and
A typical PSA car plant contains three shops (Figure
1). The body shop has the most complex...
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Christophe de Baynast, Director, Car Structure Entity, PSA Peugeot Citroen, Route de Gisy, 78140 Ve¨
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