WORLD CLASS MANUFACTURING METHODOLOGY OF FIAT GRUOP: COST DEPLOYMENT PILLAR, APPLICATION OF MATRIX C IN 2a S.p.A.

2a S.p.A, an Italian company that operates in Europe, the Americas, and Asia, as a supplier of aluminium components to the automotive industry, has implemented the World Class Manufacturing (WCM) methodology since 2019, which was a program has been made by Prof. Hajime Yamashina since 2005 at the Fiat Group Automobiles. World Class Manufacturing (WCM) is a structured and integrated production system that encompasses all the processes of the plant, the security environment, from maintenance to logistics and quality. The goal is to continuously improve production performance, seeking a progressive elimination of waste, in order to ensure product quality and maximum flexibility in responding to customer requests, through the involvement and motivation of the people working in the establishment. Ten technological and ten management pillars are developed by WCM, all of these must been developed simultaneously in order to achieve the standard of excellence. The Cost Deployment pillar is seen as a strategic one in terms of "value added". This pillar supports initiatives focused on waste reduction, cost analyses, and identifies waste and its causes as well as waste centres. The Cost Deployment, like other pillars of WCM method consists of seven consecutive steps or phases. The scope of this study is just until step 4 (matrix C), which calculates the waste and loss valorization. However, completing all seven does not imply that the analysis and improvement process is finished. It is essential to continuously review and analyse the processes and to examine whether what has already been accomplished is all that was feasible to accomplish. The seven steps that make the overall process possible are individual step that come after each other. Each step at the same time is an indication of actions that should be taken as a result of the analysis made. Diverse matrices are produced because of the individual phases, and they unambiguously highlight the areas of great interest. Therefore, the data collection is the “key element” for the development of activities of Cost Deployment”. Step 1, allows to collect, understand, analyze and quantify the processes, Step 2 (matrix A) is focused on clarification of resulting cause and root cause relationship. It allows to identify critical processes and calculate the economic impact of the loss on the individual process, Step 3 (matrix B) identifies the connection between losses and manufacturing costs. Step 4 (matrix C) known as valorization, it has the objective of calculating the costs of losses and waste. The remaining steps, which are not part of this study are Step 5 (matrix D) which estimates the value of individual loss categories and corrective actions needed, Step 6 (matrix E) is a comparison of the cost generated by a given loss and the cost that should be incurred to eliminate it. For each type of loss which was analyzed, the most appropriate corrective action is selected, and Step 7 (matrix F/G) which aims to monitor savings factors such as energy, gas, breakdown, waste, among others but mostly the performance of the projects relative to the WCM perimeter. Therefore, at the end of the study and based on methodology outcomes used, waste and loss of foundry process was valorizated in 6,355,568 euros for the year 2023, 4.63% less than the previous period.