Audi 2006 Annual Report Download - page 48

Prof. Dr. Jochem Heizmann:
“We feel very much at
home here in Germany.”
Keeping Germany
productive
R8 production an object lesson
“The key to securing
jobs in Germany
is having new,
competitive products.”
TECHNOLOGY: OPTIMISED PRODUCTION
PHOTO: CLAUDIA KEMPF
46 AUDI 2006 ANNUAL REPORT
Building cars competitively in Ger-
many is not a question of scale, nor of
trickery. Any doubters should look to
the Audi Neckarsulm plant for an ob-
ject lesson in how to do things. There,
the brand with the four rings has set up
a small-scale production shop for its
super sports car, the Audi R8*. It is the
result of lean processes and produc-
tion-driven product design, of which
Prof. Dr. Jochem Heizmann, Board Mem-
b
er for Production of the Volkswagen
Group and Board Member for Produc-
tion at AUDI AG until January 31, 2007,
says: “The fact that we are building
the new Audi R8 in Neckarsulm is a
ringing endorsement of our belief in
Germany’s manufacturing future. It is
an example of how to create a compet-
itive small-scale production line of the
highest technological calibre.”
The production expert thus refutes
the widespread belief that producers
will gradually have to turn their backs
on Germany due to the rising pressure
of costs. Heizmann continues: “We
definitely do not share that opinion.
The fact that Audi won’t be pulling out
is emphasised by our choice of produc-
tion bases for our new models – the
Audi A5, the small SUV Audi Q5 (both
Ingolstadt) and then, of course, the
Audi R8. We feel very much at home
here.”
Heizmann does, however, make one
thing perfectly clear: “Our decision in
Germany’s favour in each of these
three cases was not just about sheer
patriotism; we have chosen to build
them here because it also makes eco-
nomic sense. Economic, because we
have workers who are very well quali-
fied and highly motivated. And the
infrastructure is excellent. The key to
securing jobs in Germany is having
new, competitive products. Audi is in
such a good position because our
products are highly sought after.”
His equation is relatively simple: the
shorter the production time, the lower
the labour costs factor. And he adds:
“We shouldn’t keep hammering on
about the level of labour costs in Ger-
many. Wages obviously have to be
realistic, but they are only part of a big-
ger picture. Efficiency, productivity,
flexibility, logistics and procurement
all need to be scrutinised, too. And we
believe there is still ample potential for
improvements in those respects.”
In the case of the R8, Audi manufac-
tures body parts at the toolmaking
shop in Gyo´´r, Hungary, where the facil-
ities can be used very economically
for manual small-scale production be-
cause of the low labour costs there.
The production planners for the R8
started doing their job very early on.
“Our planning team also supervised
the production preparations for the
Lamborghini Gallardo Coupé* in Sant’
Agata. This experience meant that we
knew what potential there was for
improvements, and were then able to
realise it very early on for the R8. The
important thing was being able to
intervene as early as the concept
phase. Once the design has been
approved, it is much more difficult to
make changes.” Compared with the
Lamborghini Gallardo, the production
time of the R8 was virtually halved.
The R8 production approach also
observed the dictates of ‘lean produc-
tion’. The Neckarsulm production halls
reflect many features taken from the
methods and ideas toolkit of lean pro-
duction: waste avoidance, optimum
ergonomic conditions, short routes,
and guided working processes.
Heizmann concludes: “The long-
term success of German production
locations depends most crucially on
whether we keep improving our prod-
ucts and processes systematically. In
developing our new vehicles we have
to be even more systematic in ensur-
ing they meet the exacting require-
ments of our customers, while keeping
them efficient to produce.”
* fuel consumption figures at the end of the Annual Report