Chrysler is concentrating on its aftermarket business Mopar to generate revenue until automotive sales improve and is using a Fiat Group logistics system to make improvements and eliminate waste.
The US carmaker says it wants Mopar to be more profitable and build a reputation for quality components and service. The improvement involves better logistics to ship and stock parts.
Parts and service are organised as one entity at Chrysler, and following the 20% stake in the company that Fiat took as part of the strategic alliance it signed with Chrysler in June 2009, the Fiat Group ‘World Class Logistics’ system was fully implemented in October that year to manage Mopar's 280,000 part lines.
According to Chrysler spokesman Bryan Zvibleman, the main objective of World Class Logisticsis to build up a structured system that defines methods and tools able to promote long-lasting, systematic improvements. The improvements are designed to eliminate waste.
“No inefficiencies of any kind are acceptable,” he told Automotive Logistics News. “The goal is always zero: accidents, service and quality defects, inventory, transportation waste, breakdowns.”
In the Fiat World Class Logistics system the traditional accounting process is replaced by ‘Cost Deployment’, which establishes a cost-reduction programme based on a investigation among various kinds of waste and loss.
“The level reached by each company is certified by external experts and is achieved through continuous improvement of performance and constant involvement of all levels of the company,” said Zvibleman.
As well as the elimination of waste, principles adhered to include complete visibility of faults, awareness of safety and response to customer feedback in the workshop.
Fiat has also begun a two-year process aimed at taking over vehicle logistics and parts distribution in Europe for Chrysler as part of a wider sales and service integration between the two carmakers (read more here).