Improving Car Body Production at PSA Peugeot Citroën

Topics: Assembly line, PSA Peugeot Citroën, Production line Pages: 15 (7207 words) Published: May 18, 2014
This article was downloaded by: [146.83.123.2] On: 15 May 2014, At: 14:05 Publisher: Institute for Operations Research and the Management Sciences (INFORMS) INFORMS is located in Maryland, USA

Interfaces
Publication details, including instructions for authors and subscription information: http://pubsonline.informs.org

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.33.1.36.12723
Full terms and conditions of use: http://pubsonline.informs.org/page/terms-and-conditions This article may be used only for the purposes of research, teaching, and/or private study. Commercial use or systematic downloading (by robots or other automatic processes) is prohibited without explicit Publisher approval. For more information, contact permissions@informs.org. The Publisher does not warrant or guarantee the article’s accuracy, completeness, merchantability, fitness for a particular purpose, or non-infringement. Descriptions of, or references to, products or publications, or inclusion of an advertisement in this article, neither constitutes nor implies a guarantee, endorsement, or support of claims made of that product, publication, or service. © 2003 INFORMS

Please scroll down for article—it is on subsequent pages

INFORMS is the largest professional society in the world for professionals in the fields of operations research, management science, and analytics.
For more information on INFORMS, its publications, membership, or meetings visit http://www.informs.org

Downloaded from informs.org by [146.83.123.2] on 15 May 2014, at 14:05 . For personal use only, all rights reserved.

Improving Car Body Production at PSA
Peugeot Citroen
¨
Alain Patchong • Thierry Lemoine • Gilles Kern
PSA Peugeot Citroen, Route de Gisy, 78943 Velizy, France
¨
´
alain.patchong@mpsa.com • thierry.lemoine@mpsa.com • gilles.kern@mpsa.com

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
development organization.
A typical PSA car plant contains three shops (Figure
1). The body shop has the most complex...

References: Dallery, Y., S. B. Gershwin. 1992. Manufacturing flow lines systems:
A review of models and analytic results
Gershwin, S. B. 1987. An efficient decomposition method for the approximate evaluation of tandem queues with finite storage
space and blocking
——. 1994. Manufacturing Systems Engineering. Prentice Hall, Englewood Cliffs, NJ.
Goldratt, E. M., J. Cox. 1986. The Goal. North River Press, Croton-on
Hudson, NY.
Le Bihan, H. 1998. De nouvelles methodes analytiques pour
´
——, ——, J. Defrenne. 1997. Cost-based optimization of manufacturing systems automation. Proc. 15th IMACS World Conf. Berlin, Germany.
Christophe de Baynast, Director, Car Structure Entity, PSA Peugeot Citroen, Route de Gisy, 78140 Ve¨
´
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Stratégie Psa Peugeot Citroen Research Paper
  • PSA Citroen Essay
  • A Comparative Research of Toyota and PSA Peugeot Citroën Essay
  • PSA Peugeot Citroen: Jacques Calvet's Strategic Plan Essay
  • Improving Production at Mcdonalds Essay
  • Essay about International Business
  • Car Production Essay
  • Bmw and Peugeot Essay

Become a StudyMode Member

Sign Up - It's Free