Bloomberg Businessweek USA 03.16.2020_

(Darren Dugan) #1
Bloo Marc

28


PSA PLANT: BENOIT TESSIER/REUTERS. TOKYO: KIMIMASA MAYAMA/EPA-EFE/SHUTTERSTOCK

seniormanagersandhelpthemdeviseanaction
plan,saysMaximePicat,PSA’sheadofEurope.“We
choseoneroomandcalledit thewarroom,”he
says.“Wesaidwarbecausewewantedpeopleto
understandthatthepaceofwhathappensinside
hastobedifferentfromnormal.”
Whilesomemanagersareon-siteforthemeet-
ing,thegatheringislargelyvirtual,withmost
employeesdialing in. It’s a deliberate choice to min-
imize close contact among people in a bid to con-
tain the virus, which is rapidly taking hold across
France and the rest of Europe. Managers from
all aspects of production, including supply, pur-
chasing, and engineering, participate. Particular
emphasis is placed on those who can compile data
on where and when parts are needed.
Much of the work has focused on “deep dives”
to identify workarounds: Do suppliers have other
production sites, can parts be sourced from a dif-
ferent subcontractor, can some components be
eliminated? Carmakers in crisis “will need to find
solutions with other suppliers, and this won’t always

◀ A Citroën assembly
line in Poissy, France

○ Every weekday morning at 8, a team of
executivesatFrenchcarmakerPSAGroupgath-
ers in a room an hour’s drive west of Paris. Others
dial inremotely,andforthe nextfew hours,
theteamhuddlestoplota pathoutofthemas-
sivesupply-and-demandcrisiscausedbythenew
coronavirus ripping through the global economy.
For a well-oiled machine like PSA, with its 173,000
employees, multiple brands including Peugeot,
Citroën, and Opel, and parts sourced from 6,000
suppliers around the globe, the risk of disruption is
significant. Each car is typically made up of 4,000
components delivered just in time for final assembly.
Just one missing item can have devastating conse-
quences for an entire vehicle plant, slowing or forc-
ing changes to manufacturing and output or even
grinding a complete line to a sudden halt.
So when the virus brought China’s car parts
industry to a standstill, and the seriousness of
what was happening in locked-down Hubei prov-
ince became clearer, PSA switched into crisis
mode. It settled on one location to pool together

● PSA Group
suppliers worldwide
number about

6k


bu ine s


for this?

Free download pdf