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