-
CLUSTER, AS A NEW TOOL, ENABLES RUSSIAN AUTO MANUFACTURERS TO
IMPROVE COMPETITIVE POSITIONS Samara region administration
Joint-stock company AVTOVAZ
The Volga region office Of Russian Engineering Academy Samara
Center Of Project Financing Regional strategies and regional
competitivenessNEAC conferences (European net of automotive
clusters)Samara-Togliatty, Russia, June 18 20, 2007
-
Cars regional production
0.00.51.01.52.02.53.03.54.04.55.01990199219941996199820002002200420062008Mln
units.RussiaPolandCzech
RepublicTurkeyRomaniaSloveniaHungaryUzbekistanSlovakiaOthersSource:
PriceWaterHouseCoopersGrowth coefficient by
countries2000-2008PolandRussiaTurkeyRomaniaHungarySlovakiaUzbekistanCzech
RepublicGrowth,%
-
Mln rubles2003 - estimate
1
33.2160153.95292.39663.32
24.04110268.12193.211195.51
104.37330317.33366.441642.64
"-95"
""
""
"-"
2
30
40
60
110
330
2002 - , 2003 -
. .
1
19992000200120022003
-9533.2124.04104.37
304060110330
153.95268.12317.33
292.39193.21366.44
-663.321195.511642.64
1
00000
00000
00000
"-95"
""
""
"-"
:
2
3
-
thousands units
1
1372.21372.2
1599.41599.4
1811.21811.2
1413.21413.2
1137.61137.6
1176.81176.8
1427.41427.4
15291529
16501613
17701697
18941781
20151865
21361949
22572033
23782117
25002200
max
min
.
1
123456789
19941995199619971998199920002001200220032004200520062007200820092010
7988358689868379659721010986
571538788864467131225475554
136913731656185013041096119714851540
-29.5135135135-15.95092024549.215328467224.06015037593.7037037037
( 20% )
827.6861.4962.4866.8939.4970.61002.4990.8
544.6738848.8546.4198.2206.2425538.2
1372.21599.41811.21413.21137.61176.81427.4152916501770189420152136225723782500
1372.21599.41811.21413.21137.61176.81427.4152916131697178118651949203321172200
1372.21599.41811.21413.21137.61176.81427.4152915881647170617651823188219412000
-21.9743816254-19.50183979623.445850914221.29503738957.117836626
121.37583.87558.875
1
00
00
00
00
00
00
00
00
2
00
00
00
00
00
00
00
00
.
1995 2002
3
00
00
00
00
00
00
00
00
00
00
00
00
00
00
00
00
max
min
.
2010: - ()
-
50%40%60%30%70% 50%SamaraKalinaVAZ 2110Growth of the components
outsourcing shareof the VAZ models productionAVTOVAZ shareSuppliers
share
7
5050
6040
7030
1
2002820820130014000480100
20038708801310141010430100
20049309601320142030360100
2005101010501390149040340100
2006112012001530164080330110
2007126013501650176090300110
20081360147018201940110350120
20091440159019202050150330130
20101500168019502100180270150
506070
504030
200290015300150
200390520330150
200490525350150
200589035395155
200687060450160
2007820105495170
2008780150565180
2009740190640190
2010700230750200
1
0000
0000
0000
0000
0000
0000
0000
0000
0000
2
0000
0000
0000
0000
0000
0000
0000
0000
0000
3
00
00
00
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
-
Based on 2001 results5-10.000$10-15.000$15-20.000$20-25.000$Over
25.000$Up to 3.000$3-5.000$
1
0.29
0.34
0.34
0.01
0.01
0
0.01
2
0.05
0.01
0.65
0.03
0.14
0
0.12
2000
3
0.215
0.109
0.042
0.035
0.031
0.008
0.006
0.004
0.55
2000
1
3 . $29%
3-5 . $34%
5-10 . $34%
10-15 . $1%
15-20 . $1%
20-25 . $0%
25 . $1%
2
A5%
B1%
C65%
D3%
E14%
MPV0%
SUV12%
3
21.5%
""10.9%
"", ""4.2%
3.5%
""3.1%
"-"0.8%
""0.6%
0.4%
""55.0%
-
Quantity$Russian manufacturersWestern manufacturersProfitTotal
costsSalesFixed costsFixed costsProfitTotal costsSales*
-
Russian FederationPrivolzhskiyfederal districtSamara region*
-
Eastern Europe
SouthAmerica
Asia-PacificRegion
North America
Middle East and Africa
Western Europe
% of changes
Growth rates of mature markets (Western Europe, North America)
are slowing down:Have already reached cyclic peaks or are
approaching themA fundamental threat to industry profitability
Small emerging markets are a source of production volume
growth
E.g.:On the global scale growth share of Eastern-European
market, which is one-third of West-European market in size, will be
three times bigger
Will growth rate be sufficient to overcome the influence of
competition on mature markets?
Short-term returnseconomies of scale more readily available in
stable developed markets, but competitive pressure intense and
rising, resulting in compressed margins
Longer-term returnshigher volume growth potential in the worlds
developing markets, but long-term perspective required
Mature markets (WE, NA) slow downAlready at or near cyclical
peaksSafe haven in recent years disappearing?Threaten foundations
of existing industry profitabilityAs we are already experiencing
(DCX, supplier profit warnings, etc.)NA & WE: low AGR (i.e.,
< 2%) in these large & mature markets
Smaller emerging markets the source of unit growthExample:East
Europe, one-third the size of West Europe, will see three times as
much volume growthSouth America, facing both recovery and
incremental growth, and East Europe are the fastest growing
marketsBut only the incredibly diverse region of Asia Pacific
brings the potential for both high growth rate and volumeSA, 1/5
size of NA, contributes twice the growth (though partly
recovery)Will growth there be sufficient to offset mature market
competitive environment challenges?Only if the industry finally
learned how to profitability exploit these volatile, fast-growing
markets?
-
Mid-annual market growth rates0 %100 %Share of import on the
averageBranches StarsBraches Cash CowsBranches Question
MarksBranches Difficult childrenGas complexOil complexTree
processingBuilding materialsChemistryMetallurgyPaperHousehold
electronicsFootwearClothesTextilesAutomotiveFoodSpaceDurable
goodsMedical equipmentPolygraphic equipmentComputer
technologiesBiological technologiesCommunication
facilityPharmaceuticsEcological technologies*TRANSFORM-Program
-
The size of the circle is determined by the number of
small-scale enterprises representing this industry in the Samara
Region
The concentration of small-scale automotive industry enterprises
on the territory of the Samara Region is higher than in any other
branch of industry
Average annual market growth rates
6 %
4 %
2 %
8 %
10 %
0
12 %
2,25
3,175
4,5
1,125
Industry ratio K
Branches Stars
Branches Cash cows
Branches Question Marks
Branches Problem children
Ferrous metallurgy
Food industry
Wood industry
Building materials
Chemical and Petrochemical industry
Electric-power industry
Automotive industry
Non-ferrous metallurgy
Fuel industry
Light industry
-
RussiaBrazilThailandIndiaChinaMexicoPolandGM2002 FOREIGN
PRODUCTIONFordChryslerVWFiatBMW/RoverMercedesVolvoToyotaNissanMitsubishiHondaRenaultHyundaiDaewooKiaScrew-drive
assemblyProductionSource: The Boston Consulting Group?
-
Price/Expenses
Functionality
Quality
Lean Production
QMS, TQM
Innovative engineering
30 % - assembly plant70 % - suppliers
- AVTOVAZ JSC
30 % - assembly plant70 % - suppliers (world experience)
Design-engineering potential
- suppliers
-
AssemblyAssembly kits IntegratorsAssembliesSub-assemblies and
partsRaw materialsIntegratorsAssemblykitsVAZ from components
production to final assemblyHierarchical supply structureDirect
suppliesA lot of direct suppliersAbsence of integratorsVAZ
outsourcing of some operationsElements of tier supply
structureMultiply supply routingsConsiderable number of direct
suppliersIntegrators involvingVAZ assembly and suppliesTier supply
structureSupply routings reducingEnhancement of the integrators and
suppliers of the high added value components (assembly kits)
roleSuppliersIntegrators1970 1990 1990 2000 2000 2006 2007+
AssemblykitsIndustrial parkIntegratorsVAZ assembly and
suppliesElements of industrial park supply structureFurther supply
routings reducingSupply chain management and e-commerce
adaptation
-
Strategicdirectionsof regiondevelopmentCluster root enterprises
strategiesCluster companies strategiesForecasting of region social
and economic development, indicate planningBalanced Scorecard
(BSC)of regionBSC of cluster companiesPlanning and EstimationSystem
of strategic planning of region cluster development
MISSION
TARGETS
STRATEGIC TASKS
AND STRATEGIES
MISSION
TARGETS
STRATEGIC TASKS
AND STRATEGIES
-
Parameterizationand estimationof cluster condition
PortfolioAnalysisof investmentprojectsBusiness
environmentestimationCondition/Environment estimationCurrent
condition estimationOpportunities estimationBreaks
analysisImplementation planexternal threats estimation
Opportunities of improvement specificationScripts developmentSCRIPT
1SCRIPT 2SCRIPT NCompetitiveadvantageestimation
Systemof determinants estimationInternal advantages
estimation
-
Contribute to the development of Volga Region community and
business using the immense multiplicative potential of automotive
industry in order to boost Volga Region economic activity, improve
quality of life, increase competitive ability and turn it into a
locomotive of national economy
MISSION
GENERAL PURPOSES
OBJECTIVES
-
Contribute to the development of Volga Region community and
business using the immense multiplicative potential of automotive
industry in order to boost Volga Region economic activity, improve
quality of life, increase competitive ability and turn it into a
locomotive of national economy
MISSION
GENERAL PURPOSES
OBJECTIVES
Automotive Cluster in Volga Region Development Partnership
-
OBJECTIVES
GENERAL PURPOSES
MISSION
Promoting cooperation of state resources, politics and economy
within the cluster partnership of public and private sector
Improving access to financial resources for all economic agents of
the cluster Development of marketing and foreign economic
activityStrengthening ties between science/education and
productionExpenditure reduction and quality improvement in supply
chainsProviding possibilities for technology and information
exchange within the cluster, providing access to advanced domestic
and foreign informational resources
-
GENERAL PURPOSES
MISSION
Establishment of leading engineering and research schools in a
number of directions (logistics, quality management systems,
strategic and corporate management, lean production, hydrogen
energetics, mechatronics, etc.)
Raising state, public and business awareness on the development
of Automotive Cluster in Volga Region initiative
Defining PARTNERSHIP current projects and policy (e.g. dual-fuel
vehicles, fuel cell vehicles, industrial parks, etc.)
Working out standards for a number of materials and components,
interconnect protocols, etc.
Optimizing regional legislation base in the interests of the
cluster
Establishing a fund to support innovations
OBJECTIVES
-
ManufacturersAdministrationSuppliersResearch
organizationsTraining and educationTransport and
communicationCommunicationsProjectsContractsInformation and
knowledge exchangeCISFI,Piemonte, ItalyAgrupacion Cluster
(ACICAE)Basque country, SpainCluster of ARIANord-Pas de
CalaisFranceNordrhein-WestfalenGermanAcstyria,AC
Automobil-ClusterAustriaWelsh Automotive Forum (WAF)Wales,
UKAutomotiveClusterin Volga Region Volga Automotive
ClusterAUTOMOTIVE CLUSTER IN VOLGA REGIONAutomotive ClusterUSA
-
Manufacturers Consulting Firms Suppliers VD REA - coordinator
Institutes Research and Technology Organizations Transport and
Communications companies Administration and Public Organizations
Banks and Funding Engineering FirmsVolga Automotive
ClusterAUTOMOTIVE CLUSTER IN VOLGA REGION
-
Manufacturers and Suppliers consolidation Manufacturing
globalization and logistics Supply Chain Management Reduction of
number of the suppliers Modules and platforms manufacturing
Reduction of terms of development Increase of a role of the
suppliers in development and manufacturing Increase of the
requirements to suppliers from auto manufacturers on quality,
logistics and organization of manufacture Creation of joint
ventures with the leading auto manufacturers Growth of need in new
technologies and innovations Introduction of IT and e-commerce
Introduction of modern technologies of managementVolga Automotive
ClusterAUTOMOTIVE CLUSTER IN VOLGA REGION
-
The unified requirements to the suppliers from the auto
manufacturers Introduction of the modern standards of quality
Logistic (just-in-time, just-in-sequence) Supply Chain Management
(SCM) Modern methods of management (BSC, ABC) Modern technologies
of consulting E-commerce IT (electronic stock exchange, Internet -
portal) Introduction of typical information systems and design
systems Creation of joint ventures in the cluster framework
Formation of a package of the investment projects Ecological
management Training of personnel Volga Automotive ClusterAUTOMOTIVE
CLUSTER IN VOLGA REGION
-
Stage 1CLUSTER ORGANIZATION WITH MAIN MANUFACTURERS
PARTICIPATION.
Data Base creating, first projects Stage 2CLUSTER DEVELOPMENT,
RELATED INDUSTRIES INVOLVING.Cluster promotion and marketing Stage
3CONNECTION WITH OTHER REGIONS AND COUNTRIES Connection and joint
projectsVolga Automotive ClusterAUTOMOTIVE CLUSTER IN VOLGA
REGION
-
Trends
Engineering
Information services
Logistics
Quality
Information systems
Engineering
Finance
Investments
Strategic planning
Environment
Marketing
Lean systems
SCM
Training and re-training of personnel
companies
C
B
A
companies
C
B
A
companies
C
B
A
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
companies
C
B
A
X
X
X
X
X
X
X
Consulting
Committees
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
.., ..
.
. , . , .
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, :
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, BS 1990 , Norlan Norton Institute, - KPMG Peat Marwick, , ,
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. 3.
Balanced Scorecard (BSC)
-
Engineering
Quality improvement
International cooperation
Agreement of Ministry of Education with AVTOVAZ JSC and VD
REA
Establishment of joint ventures
Povolje Quality Club
Partnership agreements with UTAC, TUF,SAP, Carana, IPL, GOPA
Suppliers Complex Assessment systems
Unified requirements to suppliers / dealers
Personnel training
Retraining in the field of management accounting and
budgeting
Supply chain management
Logistics
Investments
Customer satisfaction and loyalty
Marketing
Cooperation with information systems suppliers
Cooperation of large enterprises with small-scale innovative
enterprises
Iinnovation files
Co-design
PR, statistics, forecasts
Inter-industry marketing and inter-cluster connections
Quality Institute
Investment projects portfolio of the cluster
Perspective projects for implementation of components
Retraining in the field of logistics
Industrial park
E-commerce
Unified approach to customer satisfaction assessment
Grant financing of small-scale enterprises by Bortniks fund
Integration into European clusters network
Organization and participation in international conferences
Outsourcing
Retraining in the field of quality
Introduction of a tiered system of suppliers
Communication ground in Povolje Engineer journal
Povolje Quality Award
Program committee on harmonization of standards
-
AutomanufacturerAutomanufacturerComponent Supplier
supplier
Knowledge Intensive Business Services(KIBS)Component
SupplierResearch and Technology Organisation(RTO)Research and
Technology Organisation(University)
Agent(VDA, FAT, UBA, BAST, Project Management)federalgvmt.
Agent(VDA, FAT, UBA, BAST, Project Management)
regionalgvmt.
Business Services
RTO/KIBS(University)supplierAUTOMOTIVE CLUSTER IN VOLGA
REGION
-
Suppliers and dealers Requirements Quality Logistics Information
systems Cost management Engineering Marketing
Consulting companiesUniversitiesAuditTraining and business
centersBanks, foundations, investments companiesInsurance
companies,Advertisement companies,Business housesFederal and
regional authorityUnified requirements to suppliers in the cluster
are key factors for new techniques might thriveAVTOVAZOEMs
-
Small-scale Enterprise
Small-scale Enterprise
Small-scale Enterprise
Small-scale Enterprise
Small-scale Enterprise
LARGE ENTERPRISE
Consulting Market
Engineering Market
Equipment Market
ComponentsMarket
Dealers and DistributorsMarket
S T A G E S / B L O C K S O F P R O J E C T I M P L E M E N T I
O N
Coordinating structure
-
SupplierSupplier 2
-
Back bumperIIIndustrial park,JIT,large-size
transportationIIICross-docks,JISIIndustrial park,JISIV-,JITLowering
requirements to delivery timingDecreasing supply volumesControl
panelFront seatBack seatFloor coverEngine / TransmissionFuel
systemCeiling coverDoors coverRear bracketGlazingSafety systemCable
harnessesFront bumperIndustrial parkCross-dock
-
Strategic PartnersInvestors *
-
Instrument clustersAutomotive componentsRussia, Chistopo/
SIEMENS VDO Automotive, GermanySteering wheel and air bagsAvto
Plast EngineeringRussia, Syzran / APE, ItalyAccumulator
batteriesZhiguli accumulator CompanyRussia, Zhigulevsk/TUDOR,
SpainAutomotive LightingRussia, Ryazan/Automotive Lighting
GmbH,GermanyHeadlamp modules, fog lampsGasketsSamorim-Industrial
CompanyRussia, Kinel / SAMORIM, Portugal
ECUs, mass flow sensors, ignition coilsBosch-SaratovRussia,
Engels/BOSCH, Germany
Mats,sealings, roof lining, trunk rackPHRRussia, Vintay/AD
Plastik, Croatia
Modular and integrated door locksBRANOROS,Russia, Kstovo/BRANO
GROUP, CzechRepublicWiring harnessesPackard Electric Systems/
Samara Cable Company, Russia, Samara/ PES/SCC, USASafety
beltsARB-Moravan, Russia, Togliatti/MORAVAN-SAFETY BELTS, Czech
RepublicAutomotive glassBorsky glass factoryRussia, Bor/GLAVERBEL,
Belgium
-
Steering gear assemblyDashboard assemblyEngine parts and
assemblies:-Flywheel-Water and fuel pumps-Inlet moduleRear
suspensionarmsSeats modulesDoor locks
modularAssembly:-Locks-Electric driveGearbox parts and
subassemblies:-Synchronizers (assembly)-Gear shift
mechanism-Clutch-Gear shift rails-Shift forks-Control
levers-Splitting mechanism (assembly)ABSBrakes -Vacuum
booster-Brake master cylinderFront suspension
module-Strut-Brakes-Stub axlePower plant hydraulic support
-
ModulesProduction TechnologyManagement techniquesKnowledge
transferModel mix innovationNew Assembled components and units
Steering booster Immobilizer Electric engine steering system Car
climateLean productionCellar manufacturingJust-in-time and
just-in-sequence components supplyGlobal environmental
issuesIndustry suppliers parksStrategic managementCustomer
satisfaction indexQuality systemsLogistic systems Cost management
systemsSupply chain management RTO AVTOVAZUniversitiesConsulting
companiesOutsourcing companiesEngineering companiesIndustrialparks
Small companies
-
Experience of leading enterprises
Advance Product Quality Planning
VD REA
Interfunctional design groups with representatives of automobile
assembly plants
controlling
SUPPLIERdesign office
Allocation of funds
Automobile assembly plant
-
Structure modelRate on scale of 101) Satisfaction on different
parameters2) Importance of different parameters for the
customer
-
The 5 of November - the Volga region Quality Club was found
Organizational structures Joint-stock company AVTOVAZ The Volga
region office Of Engineering AcademyPresident of the Volga region
Quality Club quality manager of AVTOVAZ . V.
VasilchukParticipants:Public joint-stock company AVTOVAZThe Volga
region office Of Engineering AcademyClose corporation GM AVTOVAZSOK
groupJoint-stock company SKKJoint-stock company AVIAAGREGATDesign
office PROGRESSJoint-stock company SAMARANITROGENAssociation of
Medical practice doctorsCompany BALTICAChamber of commerce and
industry (Samara and Togliatti)Samara air companies groupThe Volga
region industry manufacturersTUVUTACGOPA ConsultantsForeign
partners
-
The Volga Region Engineering Academy
- Business partners;- Certified IT and Management techniques
specialists;- Agreement on building up a re-training center for top
and operating level managers might update their knowledge base; -
Training programs on corporate IT Systems Axapta;- Preparing
partnership agreement;- Unified learning seminars upon management
techniques;
Co-ordination of special conditions upon replicating IT systems
for the cluster and developing the system requirements
-
Internal trainingTraining by correspondence (or telecommuting
training)Learning Information systemProbations:GM VAZ, IPL, Germany
Basic component 01: Logistics principle at car manufacturing
plantsComponent 02: Logistics management principles at
manufacturing plantsComponent 03: Procurement. Inventory
managementBasic component 01: Logistics principle at manufacturing
plants Component 02: Logistics management principlesComponent 03:
Procurement arrangement and inventory managementComponent 04:
Storage activities arrangementComponent 05: PackageComponent 06:
Major procurement modelsComponent 07: Logistics system evaluation
and auditComponent 08: IT in logisticsComponent 09: Modern
interplant transportation systemsComponent 10: Logistics models
simulationComponent 11: Auto components identification and
monitoringComponent 12: SCM
-
Quality certificationThe seminar has been run by TUV, Germany.
Training and certification of audit authority (AVTOVAZ, REA Russian
Engineering academy, SGAU - aerospace university)Personnel
Probation in German companies The seminar leaded by Aage V. Nielsen
has been run by Vitas Bering Management Ltd (AVTOVAZ,
REA)Developing course of training and re-training in common with
TUV and UTAC (ISO/TS 16 949:2002)
-
Memorandums of Cooperation TUV - Volga Department of Russian
Engineering AcademyUTAC - Volga Department of Russian Engineering
Academy - Samara-Tsentr-Certificat
Introduction of QMS international requirements meeting ISO/TS 16
949:2002 standards
Unification of requirements to suppliers on the automotive
market of Volga Region
Joint consulting and educational services on a common platform
of requirements
Training auditors of international level
-
VOLGA DEPARTMENT OF RUSSIAN ENGINEERING ACADEMY 3-a,
Studentchesky pereulok, Samara, 443001, Russia phone/fax +7 (846)
242-04-39, 242-32-13 www.poria.ru e-mail: [email protected]