Network design theory and the logistics solution to a complex system - The case of Fiat Chrysler Automobiles Electrification.

This thesis starts from the work carried out by Marco Barbiero “The impact of hybrid and electric vehicles production on Automotive Supply Chain – The case of Fiat Chrysler Automobiles in EMEA Region” and it analyzes a buy-solution for a battery pack of a hybrid vehicle from the logistics point of view. This work wants to define a possible methodology in order to analyze a make- strategy of battery packs. Barbiero stated in his work: “Only the battery itself accounts for around 60% of the total increase in inbound volume per vehicle and the logistics cost per vehicle. For this reason the study will focus on the battery pack flow management, due to the high influence that this component has on the logistics system sustainability.” (Barbiero 2018) Therefore, this work begins from the conclusion of the previous paper to understand how this core element can be assembled by buying the main elements from a supplier network and its impact on supply chain and logistics operations. The goal of FCA is the analysis of a methodology for the definition of a supply chain network for the internal and external operations, in this particular case concerning the battery pack. FCA, in June 1st, has declared that, for every car model launched, an electric or hybrid version will be provided by 2022 and affirmed the elimination of diesel engine vehicles from their catalogue in the following years. In the third chapter, a research about electric and hybrid vehicles is carried out, while the last part is more analytical and focused only on hybrid vehicles. A research about the main logistics themes and architectures of the electric vehicle is carried out to reflect on the methodology for the definition of a logistics network and elements that constitute this structure. Finally, with the aim of defining a network, a thorough functional and structural analysis is presented and a bill of material of battery pack defining volumes, weights and other important parameters is calculated with the help of FCA’s employees. In the last chapter, a methodology for the network design, in particular the definition of a procedure for the localization of a module assembly facility, is carried out. A last comparison between different make or buy strategies is fundamental: a solution with the purchase of modules and battery pack components and a pure buy solution with the only assembled battery packs are considered. As described in the theoretical part, the importance of hybrid and electric vehicles will grow in the next years. It seems interesting and challenging to analyze the option of making the battery pack from the logistics point of view, considering the still limited awareness on supply chain issues.