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32 - Drees & Sommer

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OPTIMAL CONSULTING ON FACTORY UPGRADE<br />

Fiat: High value-add through<br />

efficient production workflow<br />

<strong>Drees</strong> & <strong>Sommer</strong> is carrying out a project audit for a factory extension and the production<br />

launch for a new Fiat model in Kragujevac, Serbia. The factory – which dates back to the 1950s –<br />

is to be completely rehabilitated and modernized. The Fiat group is investing approximately<br />

one million Euros in car production at the new site.<br />

With its brands Fiat, Lancia, Alfa Romeo,<br />

Abarth and Maserati, Fiat Group Automobiles<br />

is one of the world’s top ten<br />

automobile manufacturers. It is currently<br />

undergoing structural change. On the<br />

one hand, its partnership with Chrysler<br />

should lead to synergy effects, while<br />

on the other hand the company plans<br />

to continue internationalization of its<br />

brands and expansion of production<br />

capacities in ‘low-cost countries’. In this<br />

context, from mid-2012 the successor<br />

Scope of audit management by <strong>Drees</strong> & <strong>Sommer</strong><br />

model to the Fiat Idea will be manu-factured<br />

at the former Zastava plant in<br />

Kragujevac, Serbia, managed as a joint<br />

venture between the Serbian state and<br />

Fiat. The factory is to be extensively<br />

modernized for the launch of the new<br />

model.<br />

Investment: One billion Euros<br />

Investment of some €1 billion is planned,<br />

resulting in a production capacity of<br />

more than 150,000 cars per year. As<br />

Schedules<br />

Development Production Installation Startup<br />

Energy, buildings, service<br />

Utility supply<br />

Press shop<br />

Car body construction<br />

Quality assurance<br />

Paint shop<br />

Logistics<br />

Final assembly<br />

Phase in/out 188<br />

Interfaces for IT / product / suppliers / personnel<br />

part of a so-called brownfield project,<br />

the existing factory will be completely<br />

adapted to meeting the requirements of<br />

“best practice” automobile production.<br />

Following completion of construction<br />

work, the installation of newly developed<br />

production processes and equipment<br />

will begin. These will set new standards<br />

in comparison to other Fiat Group sites<br />

worldwide and are characterized by<br />

greater manufacturing content.<br />

Quality Organization Communication Scheduling Reporting<br />

Costs<br />

Project audit<br />

<strong>Drees</strong> & <strong>Sommer</strong> is supporting the<br />

project by carrying out a project audit.<br />

During the construction phase as well<br />

as during the development & integration<br />

of the production plant, all processes<br />

relevant to on-schedule, within-budget<br />

implementation to the required quality<br />

standards will be continuously monitored.<br />

Any deviations will be recorded,<br />

and any necessary countermeasures<br />

initiated.<br />

The immense size of the production<br />

halls – some of which are in a critical<br />

condition – has to be emphasized. As<br />

a result, substantial decontamination<br />

work has to be carried out in parallel to<br />

extensive remodeling and upgrading.<br />

At the same time, it must be ensured<br />

that production can continue unhindered<br />

while this work is carried out.<br />

Regular Reporting to client<br />

The key task of the <strong>Drees</strong> & <strong>Sommer</strong><br />

project team is to identify risks in the<br />

project and to communicate these to<br />

the client.<br />

The Managing Director of Fiat Automobiles<br />

Serbia (FAS) and group management<br />

in Turin are kept informed about<br />

the current project status, any improvement<br />

measures implemented and the<br />

overall progress of the project in regular<br />

order to reports. This regular reporting<br />

by <strong>Drees</strong> & <strong>Sommer</strong> delivers a sound<br />

basis for decisions on control measures<br />

by both Fiat management and project<br />

management.<br />

Client<br />

Fiat Automobiles Serbia (FAS), Kragujevac<br />

Project duration<br />

October 2010 – May 2012<br />

Key project data<br />

– Production capacity over 150,000 cars<br />

– Investment volume: Approx. €1 billion<br />

<strong>Drees</strong> & <strong>Sommer</strong> services<br />

– Audit management<br />

Value-add achieved for client<br />

– Recommendations regarding optimal<br />

processes taking production plant and<br />

their integration into account<br />

– Identification of process risks<br />

– Support through production engineering<br />

and structural engineering expertise<br />

<strong>Drees</strong> & <strong>Sommer</strong> identifies project risks for<br />

the upgrade and expansion of the former Zastava<br />

factory in Serbia, at the same time reviewing<br />

process for the Fiat production launch<br />

40 41

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