Study with the several resources on Docsity
Earn points by helping other students or get them with a premium plan
Prepare for your exams
Study with the several resources on Docsity
Earn points to download
Earn points by helping other students or get them with a premium plan
Community
Ask the community for help and clear up your study doubts
Discover the best universities in your country according to Docsity users
Free resources
Download our free guides on studying techniques, anxiety management strategies, and thesis advice from Docsity tutors
Production plants of ŠKODA cars are located in 7 countries around the world: • The Czech Republic (Mlada Boleslav, Kvasiny, Vrchlabi).
Typology: Study notes
1 / 346
This page cannot be seen from the preview
Don't miss anything!
2014 - 2017 ŠKODA AUTO University, Mladá Boleslav, Czech Republic
ŠKODA AUTO University Seinäjoki University of Applied Sciences University of Žilina OTH Regensburg Dresden University of Applied Science WSB University in Wroclaw
The project Green Solutions for Business and Industry aims at sharing good practices in Green Business educational process with close connection to industrial enterprises. The project helps participants to understand and deal with company values using a balanced approach to economic and environmental efficiency. Organisations have been facing changing conditions for several years. In addition to increasing diversity and dynamics, environmental issues have become increasingly important. Social, political and economic demand for sustainable solutions forces organizations to consider the impact of their activities on environment and to develop sustainable strategies for their product and service offerings, supply chains, manufacturing and transport, among other business-related issues. The collection of case studies was produced during the short-term activities for learners – International summer and winter schools in Mladá Boleslav. The project "Green Solutions for Business and Industry" is funded with the support of the European Union under the programme "Erasmus+", project registration number: 2014 - 1 - CZ01-KA203-002096. Document reflects only the author's view. The National Agency and the European Commission are not responsible for any use that may be made of the information it contains.
30 August - 12 September 201 5 ŠKODA AUTO University, Mladá Boleslav, Czech Republic
Oleksii DIEIEV, ŠKODA AUTO University Nikola SNYDROVA, ŠKODA AUTO University Katerina BASUSOVA, ŠKODA AUTO University Lecturer: David HOLMAN, ŠKODA AUTO University
SA is a significant worldwide producer of automobiles. SA was incorporated into VW as a joint-stock company on 20 November 1990. The Company’s main business activities are the development, production and sale of vehicles and related accessories. The Company has its main production plant in Mlada Boleslav and two other production plants in Vrchlabi and Kvasiny. SA is a subsidiary of VOLKSWAGEN FINANCE LUXEMBURG S.A. included in the consolidation group of its ultimate parent company and its ultimate controlling party, VOLKSWAGEN AG (Volkswagen Group), with its registered office in Wolfsburg, the Federal Republic of Germany. The Volkswagen (VW) automotive family is currently the second largest automotive producer in the world, aiming to be number one by as late as 2018 not only through innovative products but even delivery concepts which could significantly support fulfilling this ambitious goal 2.1 History SA has a rich history, which dates back to 1895. At this time, the bookseller Vaclav Klement decided to repair bicycles. He joined forces with machine fitter Vaclav Laurin, and together they created the brand name, Slavia. The first automobile was made in 1905. It was called Viturette A. The interest in the first car was enormous. As a result, they created the joint stock company in 1907. During World War I, the Company manufactured grenades as well. In 1925 they merged with SA’s plant in Pilsen. This was the end of the company’s name as Laurin & Klement since it had become Skoda Auto (SA).. After World War II the Company was nationalised. Because of the permanent stagnation of the economy which started after the 70s, economic growth was only secured by the production of the model range SA Favorit, which went into production in 1987. After the political changes of 1989, the Government of the former Czechoslovak Republic and the management of SA began to search for a strong foreign partner whose experience and investments would be capable of securing the long-term international competitiveness of the company. In December 1990, the government decided to cooperate with the German Volkswagen Group. The VW Group gained 31 % of SA. The SA – Volkswagen joint venture began operations on 16 April, 1991 under the name SA, automobilova a. s., becoming the fourth brand of the VW Group alongside VW, AUDI & SEAT. Since 2000, the VW Group is the sole proprietor of SA [1]. 2.2 Organizational structure There are 7 main departments in SA (see Table 1), which are furthered divided into sub- departments. Each organizational unit has its own abbreviation – a letter or/and a number. Since 1 January 2016, the company has harmonised the abbreviations of its departments in line with the other companies from the VW Group. The Company employs almost 24,000 internal employees plus external employees and trainees. The profit in 2014 was 665 million €. SA delivered a recorded 1.037 million cars to their customers, representing an annual increase of nearly 13 %. For the first time in its 119-year history, the Company surpassed the figure of the one million vehicles delivered in a single year.
The operating margin reached 8.1 % in the first half of 2015. The improvement in earnings was mainly due to a mix of improvements and the lower cost of materials. Table 1 Organisation structure in SA [ 2 ] Production plants of ŠKODA cars are located in 7 countries around the world:
3.1 Current state analysis The entire logistics concept starts with the planning of production and calculation of needs, followed by the setting of timetables and the creation of call-offs, taking into account the current stocks. The logistics concept also includes packaging management, information labels on the pallet, expeditions and last but not least, solving exception handling, monitoring and the communication with suppliers. Currently, timetables are based on the daily management and selection of time windows. Therefore, it must be determined how many trucks will be needed, as well as the pick-up times and of course pick-up volumes. The supplier alone orders and provides transport on the basis of this information. In SA, this activity is handled by the Skotrans Department. Also important is the data communication between SA and the supplier. For SA, this especially means the sending of call-offs, when the Dispositions Department recalled the daily amount without connection to a specific shipment. The supplier may move volumes forward while ensuring the utilization of transport, but it is their own responsibility. On the supplier side, the MAT data are then sent. These data contain the same information as on the delivery sheet and the subsequent invoicing. Based on the long-term and short-term offs, the supplier executes available input material and manages his own production planning. Both processes are in the full purview of the supplier. Long-term call-off (LAB) is performed once a week with a six month perspective, a fine or a short-term call-off (FAB) is performed daily, with minimum five day perspective. Another option is the Kanban call-offs. These Kanban call-offs are based on the situation when SA recalled parts from the external suppliers on the basis of the processed amount of material in production, and according to the determined minimum stocks in the logistics warehouse space at a specified time. Kanban call-off is passed on to an external supplier through fax orders at a specified time. A fundamental element for specifying the part and implementing call-offs is the part number. Normally, part identification numbers are used in call-offs, which determine the type of part and his technical or colour version. In regards to management packaging, the supplier is responsible for the planning, acquisition, maintenance and cleaning of all transport pallets that circulate among the supplier’s factory and an external logistics service provider. The supplier orders empty packages through the B2B portal, where the VW factory determine for each relation the ratio of full and empty packages and manage their expedition. In exceptional cases, the packages may be delivered from different factories within the group than the one that was accepted. All pallets are provided with information labels VDA 4902 (Odette Transport Label), called B and C information labels shown in the figure below, which are used throughout the process to the point of consumption and they have a uniform delivery sheet (see Figure 1).
Fig. 1 B and C logistics information labels [4] Solving exceptional handling means a special process designated for exceptional cases in which the standard processes are not working. Today, exception handlings are not standardised within the logistics concept. The evaluation of suppliers is currently run without the process monitoring, the goal of which should be to monitor in a transparent way the quality of supplies and the whole logistics process and consequently deduce the appropriate measures. For example, the measurement of process deviations at the supplier should reflect these results in the supplier rating by drawing up a report about solving the problem with the measured supplier focused on eliminating problems, and last but not least ensure a permanent improvement process. The material flow of the supplied parts from the supplier in SA is provided by the department of Brand Logistics (VL) / Logistics Planning (VLL). The material flow from supplier to the warehouse is performed by manipulation and transport equipment. Particularly in SA, there is a case of direct drive, groupage or Kanban deliveries, whose more modern alternatives are JDC (Japan Delivery Concept) deliveries. In the case of direct drive, one full truck from one supplier is dispatched directly into the plant of SA. Groupage, as the name implies, concerns those suppliers who group smaller quantities of pallets from more suppliers in a single delivery. In the plant, trucks are controlled by the SA LKW control, where telematics guide them to an individual storage place. There, the driver hands the delivery sheet to the storekeeper, who will check it and then enter the data into the logistics system. A C information label, according to which the material is placed in a store, is subsequently printed. Empty packages are returned to the suppliers in two ways. In the first case in LKW after unloading the material, empty packages are loaded and carried back to the supplier. In the second case, the supplier sends special trucks for the empty packages. This LKW may be sent to any factory within the VW group; it doesn't have to necessarily be in the same factory which delivered the material. From store to the tact of the assembly line, forklifts and trailer trains are used which have regularly scheduled routes and intervals. Intervals are displayed on the notice boards of the system SQ Visual or ITLC (Internes Leit Transport System). Trailer trains are prepared for the so-called "station", where the ITLC system is used to assign them to a specific truck. The rough description of the current SA supply chain status is seen in Figure 2.
3.3 ŠKODA AUTO solution proposal The proposed SA solutions are based on 4 pillars (see Figure 3 ):
Fig. 3 Pillars of EDC concept [ 6 ] Four new technologies used separately in VW were combined in SA into one supply chain solution. FOLAB, QUICK CHECK-IN, GTL and CNG helped to improve logistics KPI. Figure 4 shows the main advantages of EDC. FOLAB is responsible for a better utilisation of trucks (lower number of trucks in circulation) and management of loading on the supplier’s side. Quick Check-In helps to reduce waiting time of trucks at the producer’s warehouses – SA. GTL simplify the flow of information and workload of warehouse employees with a correct management of documents. CNG directly influences the emission of CO 2 into the atmosphere.
In the possible future, transport labels can be replaced by the next generation of QR-code, which will be read by wearable technology (e. g. Google Glass) and then transformed into recognisable information.
The expected benefits of EDC concept against conventional deliveries are (see Figure 5):
[1] ŠKODA Media Portal. History , [cited 03 /0 8 /2015]. Available from: https://media.skoda- auto.com/en/Pages/history-new.aspx. [2] ŠKODA Media Portal. ŠKODA’s Deliveries, Sales revenue and Operating Profit increase in First Half of 2015 , [cited 03/08/2015]. Available from: https://media.skoda- auto.com/en/_layouts/Skoda.PRPortal/pressrelease.aspx?ID=886. [3] ŠKODA AUTO. Annual Report 2014 , [cit. 04 /0 8 /2015]. Available from: http://www.skoda-auto.com/en/company/investors/annual-reports. [4] PEKAŘ R., RAIS T. Global Transport Label. Internal materials of ŠKODA AUTO. [5] LUDWIG C. Audi geo-fencing project takes top VW Group logistics prize , [cited 23/08/2015]. Available from: http://www.automotivelogisticsmagazine.com/news/audi- geo-fencing-project-takes-top-vw-group-logistics-prize. [6] UNGERMAN P. Koncernový bronz pro logistiku. ŠKODA Mobil. No. 7, 2015. p. 11. [7] Volkswagen. Implementation Guideline: Global Transport Label (GTL) , [cited 23/08/2015]. Available from: http://goo.gl/OkRSvQ. [8] Consumer Energy Center. Compressed Natural Gas (CNG) as a Transportation Fuel , [cited 23/08/2015]. Available from: http://www.consumerenergycenter.org/transportation/afvs/cng.html. [9] MJB&A. Clean Diesel versus CNG Buses: Cost, Air Quality, & Climate Impacts , [cited 23/08/2015]. Available from: http://www.catf.us/resources/publications/files/20120227- Diesel_vs_CNG_FINAL_MJBA.pdf [10] PEKAŘ R., STRNAD D., RAIS T. Handoutseiten Skoda. Internal materials of ŠKODA AUTO. [11] PERNICA P. Logistika pro 21. Století Supply Chain Management. Praha: Radix, 2005.
30 August - 12 September 201 5 ŠKODA AUTO University, Mladá Boleslav, Czech Republic
Jonas SESEKE, Dresden University of Applied Science Joonas HÄMÄLÄINEN, Seinäjoki University of Applied Science Kateřina BAŠUSOVÁ, ŠKODA AUTO University Gabriela ŽIAKOVÁ, ŠKODA AUTO University Mateusz JAWORSKI, WSB University in Wroclaw Martin PODPLESKÝ, University of Žilina Lecturer: David STAŠ, Radim LENORT, Pavel WICHER, ŠKODA AUTO University
