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Improving Car Body Production at PSA Peugeot Citroën

Author

Listed:
  • Alain Patchong

    (PSA Peugeot Citroën, Route de Gisy, 78943 Vélizy, France)

  • Thierry Lemoine

    (PSA Peugeot Citroën, Route de Gisy, 78943 Vélizy, France)

  • Gilles Kern

    (PSA Peugeot Citroën, Route de Gisy, 78943 Vélizy, France)

Abstract

In 1998, following a change in top management, the new CEO of PSA Peugeot Citroën 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 Citroën. 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.

Suggested Citation

  • Alain Patchong & Thierry Lemoine & Gilles Kern, 2003. "Improving Car Body Production at PSA Peugeot Citroën," Interfaces, INFORMS, vol. 33(1), pages 36-49, February.
    • Handle: RePEc:inm:orinte:v:33:y:2003:i:1:p:36-49
    DOI: 10.1287/inte.33.1.36.12723
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    References listed on IDEAS

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    1. Stanley B. Gershwin, 1987. "An Efficient Decomposition Method for the Approximate Evaluation of Tandem Queues with Finite Storage Space and Blocking," Operations Research, INFORMS, vol. 35(2), pages 291-305, April.
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    Cited by:

    1. Jesús F. Lampón & Pablo Cabanelas & Javier González Benito, 2015. "The impact of implementation of a modular platform strategy in automobile manufacturing networks," Working Papers. Collection B: Regional and sectoral economics 1502, Universidade de Vigo, GEN - Governance and Economics research Network.
    2. Jesús Lampón & Pablo Cabanelas & Vincent Frigant, 2017. "The new automobile modular platforms: from the product architecture to the manufacturing network approach?," Post-Print hal-03187886, HAL.
    3. Jesús F. Lampón, 2023. "Efficiency in design and production to achieve sustainable development challenges in the automobile industry: Modular electric vehicle platforms," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(1), pages 26-38, February.
    4. Lampón, Jesús F. & Lago-Peñas, Santiago, 2013. "Factors behind international relocation and changes in production geography in the European automobile components industry," MPRA Paper 45659, University Library of Munich, Germany.
    5. Marcello Colledani & Stanley Gershwin, 2013. "A decomposition method for approximate evaluation of continuous flow multi-stage lines with general Markovian machines," Annals of Operations Research, Springer, vol. 209(1), pages 5-40, October.

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