Industrial facilities geared to boost performance
At the global level, new and emerging markets represent 40% of the volume of car tires sold and 70% of truck tires. Michelin is developing an industrial strategy to fend off the predominantly Asian competition and take advantage of the prospects offered by these markets.
Bib Ramp Up optimizes and guides investments
Standardizing designs, plant equipment and time phasing shortens production lead times and reduces investment costs. Bib Ramp Up, which is now applied to all major projects, gets engineering departments, methods groups, quality and production working hand-in-hand, while Bib Qualif makes sure that common standards are met. As a result, the capital invested starts to yield returns more quickly and the teams are free to move on to new projects sooner.
Shenyang 2 will be the largest Michelin plant in the world. Its spare parts warehouse, which is centrally located and connected to the site's three operations, meet production teams' requirements quickly and cost-efficiently. Twelve people manage the 1,400 m² warehouse. A bar code system provides a fast, accurate inventory of available parts, and the centralized distribution system operates around the clock. This innovative, highly efficient organization will be duplicated at other Group facilities.
Multi-skilling implies being able to change workshops, work at a different site for a few days or months, and apply your skills and knowledge to new spheres of activity. It makes it easier to meet demand when activity peaks and avoid short-time working when demand is slack, while at the same time boosting employees' employability. In short, it is a rewarding, win-win approach for everyone.
Our industrial vision is to have manufacturing capabilities spread across the major geographic and currency areas. It’s unusual to have the world’s three main economic regions in recession at the same time, and the best way to protect against currency ﬂuctuations and the strong euro is to have facilities in US-dollar areas and in the Asia region.
The challenge of foresight
A new production plant can be expected to last at least 40 years. In the years to come, we should see costs converge in the different Geographic Zones. This justifies Michelin's efforts to maintain industrial facilities in developed countries. The goal is to have highly competitive plants everywhere. But, to achieve this, we must be capable of transforming our industrial facilities in Europe and North America in time to ensure their long-term viability.