Toyota Peugeot Citroën Automobile is ready to start the commercial production of Toyota Aygo, Peugeot 107 and Citroën C1 vehicles in the new factory in the Industrial zone Kolín-Ovčáry. The production of vehicles intended for sale to customers shall be launched on February 28th, 2005. All three vehicles will first be introduced to the general public on March 1st at the International Geneva Auto Show. The TPCA manufacturing company will be ceremonially opened on May 31st, 2005.

1. Important milestones

An overview of the most important steps that TPCA has made for the start of production in the past six months:

September/October 2004 – Installation of technology complete
At the end of September installation of production technology in all operations of the factory: press, welding, paint and final assembly were completed.

October 2004 – Transfer of all factory operations into comprehensive testing mode
Testing of individual production equipment and of individual operations with or without material.

November 2004 – Receiving an integrated IPPC permit
The Regional Office granted a IPPC (Integrated Pollution Prevention and Control) permit. This permit proves that TPCA uses the best available technology (BAT), and also sets the standards and limits of the environment that an organization must meet in order to operate production.

December 2004 – Permission to test operation
Permission to test operation proves that the factory meets all standards in the area of occupational safety, fire protection, hygiene and environment and can begin production.  

December 2004 to January 2005 – Testing phase 1A, 2A and 2,5A
Checking and testing of all production processes. During the testing phase approximately 300 testing prototypes were produced.     

January 2005 – Transition to working hours in shifts
Transition from standard work hours for production (8.30 – 17.00, 5 days a week) to work hours corresponding to planned shift work (6.30 – 17.11, 4 days a week).

February 2005 – Starting commercial production
February 28th is the first day in the TPCA production calendar – production of the first vehicles designated for customers.

Further planned steps:

June 2005 – Start production with the second shift

Summer 2005 – Termination of main recruitment activities

September 2005 – Start production with third shift

1st quarterly 2006 – Reaching full production capacity

1st quarterly 2006 – ISO 14001 certification of factory

Preparation of the factory for start of production
 
During December and January, three cycles of trial production internally known as 1A, 2A and 2.5 A where around 300 test prototypes were produced at TPCA. The aim of all testing activities was to verify the quality and adjustment to procedures. Testing is a continuous cycle of short production sequences, evaluation, adoption of countermeasures and further testing at the factory. One hundred percent verification of production quality is a necessary condition for the commencement of commercial production.

The increase inproduction capacity ("ramp-up") will take place gradually. Before starting production, testing focuses on achieving the required quality, but with the start of production comes a new challenge: to increase the quantity of production while maintaining quality standards. Start-up of the new factory and start of production of the new model are themselves two very difficult tasks. TPCA’s case is exceptional because it starts production of the new model in a new plant. Yet TPCA resolved a very aggressive increase in production and wants to reach full capacity within one year from the start of production.

Mastering the start of production in the automotive industry is highly prized know-how, and that is why TPCA will not publish any detailed data on the production capacity in 2005, during a period of increased production. 

Production quality
 
The factory shall be prepared primarily in the area of ​​human resources for the start of commercial production. Each employee must fully manage their work, and that is why TPCA puts so much emphasis on training and practice. All production personnel must be able to operate two to three manufacturing operations ("multi-skilled") to ensure the flexibility of the productive force. This means that employees can immediately replace or help each other out within a work team if necessary. Training of employees in the assembly focused on managing operations off-line, i.e. a stationary car off the assembly line in the first phase. The second phase of the preparation was training operations on a moving line. Even assembly during high speed in the target tact time of 60 seconds was tested in short intervals. 

Quality of parts

Given that all parts except for major body parts are taken from external suppliers, very intensive cooperation between suppliers and TPCA in quality control took place in the period before start of production. The fact that the parts are manufactured by external suppliers is not important from the customer's perspective because the car manufacturer is responsible for the quality of the vehicle. TPCA had to approve the quality of all the parts so their experts visited all supplier factories and verified their manufacturing processes.
Apart from quality, suppliers must be able to guarantee TPCA the desired quantity and deliver it just- in- time. Almost every supplier expanded their production factory or built a new one to meet TPCA’s demand. The vast majority of these new supplying plants were built in the Czech Republic. For this reason, the start of production at TPCA has a much broader impact: practically an entire automobile industry was set into motion between January and February 2005. 

Occupational safety
 
TPCA’s goal is to be a good example in the field of occupational safety and rank among the absolute safest factories in the Czech Republic. TPCA specialists had to choose, test and approve all protective equipment (PPE) such as helmets, boots, Kevlar gloves, respirators for working in the paint shop, welding aprons, goggles and shields, and much more. The TPCA plant has undergone a complete audit of occupational safety, which was explored in every detail and every step of production. TPCA wants to minimize the risk of occupational accidents and take double or triple safety precautions. Prevention is possible only through thorough and continual training of all employees.
A topic closely associated with safety is workplace ergonomics. Repeated poor work habits or work in substandard conditions can cause serious health problems. Therefore each work operation was evaluated at TPCA from the perspective of ergonomics. 

Logistics
 
The volumeof parts requiredto manufacture onecar atTPCAisabout 10.5m3,andwith a targetproduction of1,100cars, a largeamountof material is used and itsflowmustbepreciselycoordinated. The systemJust-in-time, whichis part of theToyota Production System, workswith a minimal amountof stock,butitputsgreater demandsonlogistics.In the first place, production mustbe coordinated at supplier factories and TPCA sothat the components areavailableinthe desiredtimein the right quantity. TPCA experts personallycheckedevery roadbetween the supplierand the car factory. Allroads wereevaluatedin terms of quality, practicabilityandcapacity.In parallel backuproutesare also plannedbecausesignificantdelays in stocksmayhave very seriousconsequences.

During testphase2A, supply plans wererefinedin order to findthe optimallogistical solutions. ForTPCA the optimalsolutionis a solution thatharmonizes theinterests of thecarwith the interests ofsociety.Based ondiscussionswith neighboringresidentsand in particular representativesof the local government, TPCAcameto the conclusionthat the bestsolution is tosupplythe weekend shifts by building anadditionallogistics area. TPCAdoes not use theexemption fromlimiting truck drivingon Sundaysandotherdays of restin accordance with §43paragraph5 of the Act. No.361/2000Coll., traffic on theroads.


TPCA suppliers

Proportion of TPCA suppliers to the traffic situation in Kolín
 
Recruitment

Recruitmentof labour is going according to plan: to January 31st, 2005TPCAhasover 1600employeesand 300future employeeswho have been throughthe selection processand shall begin in the coming months. TPCA’sphilosophyisto recruitthe bestcandidates, irrespectiveof their place ofresidence.Over the last year,there have been severalrecruitment eventsin differentregions of theCzechRepublic.

At the endof 2004there wasa massiverecruitmentcampaignin northern Moravia.During November, December and January, 24recruitmentdays occurred in 19 cities (Javorník, Jeseník, Bruntál, Krnov, Vrbno, Rýmařov, Bohumín, Ostrava, Třinec, Frýdek Místek, Orlová, Karviná, Havířov, Český Těšín, Nový Jičín, Kopřivnice, Odry, Bílovec, Frenštát pod Radhoštěm, Opava and Vítkov). Karviná and Ostrava showed the highest interest. 

Over 3000candidates came to the recruitment days, where half of whom expressed aninterest inworking atTPCAand participated inthe first round ofthe selection procedure. 712 candidates advanced to the second round andnow final interviews are being held. 70 employees have begun working from the northern Moraviacandidates.Dueto the length ofthe selection processand the statutorytwo-monthnotice of terminationperiodswithprevious employers,the main wave of"Moravian" employees will beginin Februaryor March.

Partnership for the Kolín region

In 2004,TPCAorganized amunicipalproject, whichwasdesignedfor municipalities in the Kolín region, whereTPCAofferedthe possibility ofco-financingprojects to improvethe environment, support culturalandsports activities, or use funds for the maintenanceand operation of cultural heritage sites in the region.

24 projects applied for thegrant program where the Committeeselected five winners among which it will divide CZK2,050,000. The winningprojectswere: theconstruction of the footbridgeoverHluboký potok,repair ofmonumentsin Jestřabí Lhota, construction of bus stopsinOpolany, sports field in Velký Osek and a playgroundinSány.

Since 2005 the grant program shall be called “Partnership for the Kolín region” and its main motto is to involve as much of the public as possible:

1) Theselection committee shall not only consist of TPCA representativesbutalsoof government representatives, NGOs and the public.
2) Not only municipalities are eligible to apply for grants butalsointerest groups, schools and non-profit organizations.
3) Not only investmentprojects may apply for the grantbutalsoprojectsin the field ofeducationandculture. 

TPCAhas decided to doublethe sequestered amountfor last yearanddividea total of4,000,000crowns in 2005. A TPCApartnerandconsultant of the project is the "Partnership Foundation -CzechEnvironmentalPartnership", whichis arenowned NGOforgrant programs.