FORCE PROGRAM
COSTS UNDER
CONTROL
PRODUCTION AND FINANCIAL RESOURCES MUST
BE USED TO INCREASE COMPANY VALUE
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Future
Factory
Regionalisation
Value creation
CARE
OF A PRUDENT
BUSINESSMAN
AN INTERVIEW WITH JAN RYŠAVÝ
FROM FCP – PRODUCTION AND
LOGISTICS CONTROLLING,
A SUPPORTER OF PRINCIPLES OF
COMPETITIVE COST STRUCTURE
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What do the basics of the fifth action
field of the FORCE Program mean
to the staff?
Competitive
Cost Structure
OUR GOAL
WITH EFFECTIVENESS AND FLEXIBILITY
TOWARDS GLOBALISATION
T
OUR JOURNEY
SIMPLY CLEVER SOLUTIONS
OUR MOTIVATION
THINKING DIFFERENTLY TO SECURE THE FUTURE
he global economy is slowing down, Every Penny Counts
which presents ŠKODA AUTO with If the carmaker wants to keep up with its
a number of new challenges. Mar- competitors in the future, it will have to
ket capitalisation and key performance indi- deal with the efficiency of projects and uticators, such as fixed expenses, investments lise the full value of every penny invested
and net cash flow, are under the spotlight. In for it to meet its strategic goals. The task of
order to evaluate a healthy
the Controlling department
cost structure and maintain
is to calculate individual poEvery penny spent
a good outlook, the company
tential solutions and to remust be fully utilised
has to focus on the best pocommend the most efficito meet ŠKODA
ssible performance. “Now, as
ent ones; projects with an
AUTO’s strategic
a p p ro p r i ate R O I i n d i c a part of the FORCE Program,
goals. Therefore,
we are systematically deator (see the Return on Inwe have defined
ling with spheres of technivestment column) get priospecific areas to focus
cal change, effectively marity. The carmaker already
on in a systematic way.
sees further savings in the
naging one-off expenditure,
conceptual planning of its
namely investments and initial expenses, and focusing on areas of pro- plants, material flow and finished cars,
duction concepts and cost-optimisation”, says but also in planning of production capaciJan Ryšavý from FCP – Production and Logis- ties. Controlling makes use of the SAP S/4
tics Controlling.
HANA software and other superstructure
modules thanks to which the staff can anaTechnical Changes
lyse expenses in detail based on accounts,
Most cars’ lifecycle usually includes many cost centres and statistical orders.
technical changes. Generally, these can be
divided into two categories. The first leads Staff Participation
to a positive result; the second, by contrast, The staff have significantly decreased progenerates extra expenses and burdens the duction costs. A proven instrument is, for
carmaker. The goal of the Competitive Cost instance, the KVP workshops, whose goal
Structure program is to map the number and is to improve results directly in the Producharacter of the changes during development ction and Logistics department by looking
and production processes at ŠKODA AUTO for extra savings. The work of the ZEBRA
and reduce them. This will improve the firm’s staff improvement program has also led to
economic outlook and result in savings.
significant economic benefits. EVA JAROŠOVÁ
8 ŠKODA MOBIL JULY 2019
On a daily basis, they come up with new
ideas to make the production process easier, improve material flows, prevent wasting etc. One of our goals is to assess these ideas, choose the appropriate ones and
recommend their implementation. A similar process concerns technical changes connected to the lifecycle of cars. From an
economic perspective, we can’t afford to implement measures that are useless or may
increase expenses. We all have to be prudent
businessmen.
Can you give us an example?
RETURN ON
INVESTMENT
One of the activities required to
fulfil the fifth action field is the
evaluation of rentability and the
return on investment from individual
projects. The ROI economic indicator
expresses the total profit from the
investment. On the basis of this
index, the revenue-earning capacity
of partial deposits can be assessed or
compared with one another in order
to select the best one. In practice, the
ROI also helps in choosing the most
profitable combination of possible
investments.
1/3
WE TREAT A THIRD OF TECHNICAL
CHANGES AS A PRIORITY
70%
THEY CONCERN 70 PERCENT OF
PRODUCTION TIMES
100%
THEY FULLY AFFECT THE NORMS STATING
THE NUMBER OF STAFF PER DAY
Digitisation opens the door for us: for instance, smart maintenance, during which
we obtain data by monitoring technical units
and assess these data. The result is targeted maintenance and repairs that decrease the risk of defects and downtimes. In
this way, we increase the usability of technologies that allow us to produce more cars
and thereby meet our customers’ demands.
Thanks to smart maintenance, we electronically observe components on production lines and, with the help of data analysis and
software, prevent related repairs and downtimes. We know in time when to replace components with strong wear and tear. Therefore, we don’t need to store as many of them
as we used to.
Your area of focus is the technical
changes of cars. Which positive results
have you already achieved?
One example is the introduction of the fifth
door spoiler on the KODIAQ model. Originally, the Production department required an
increase of 21 workers per day. In cooperation with Industrial Engineering and the operation itself, we assessed the possibilities
and proposed a new solution (specifically,
it was the assembly concept that was changed). This resulted in saving six of the initially demanded workers. With this specific
example, the carmaker ultimately saved CZK
5 million per year. EVA JAROŠOVÁ