Piaggio and its production sites

The Piaggio Group has a strong international presence.
At its Italian site in Pontedera (in the area near Pisa), the Group has three facilities, one for the manufacture of commercial vehicles, one for the manufacture of scooters and engines for two-wheeler vehicles, and one for the supply of aluminium and steel components for vehicles and engines. In addition to the latter, which comprise the most important industrial complex of the two-wheeler segment in Europe, two other sites operate in Italy for European production (Scorzè and Mandello del Lario). In February 2013, Piaggio & C. decided to move the production of Derbi brand vehicles to Italy, and close down the Spanish production site at Martorelles.
Management intends starting negotiations for the hire to third parties of the buildings and sale of machinery.
The Group also has its own production sites in Vietnam (at Vinh Phuc), with a site for the manufacture of two-wheeler vehicles and a site for the production of 3V engines and in India (at Baramati, in the state of Maharashtra) with a site for the manufacture of commercial vehicles and engines, in addition to a production site for Vespas for the Indian market. 

The main operations taking place during 2013 concerning these sites, which aimed to develop and make production capacity even more efficient, are outlined below.

Pontedera Sites

Specific software to map and control work sites contracted out to external companies, for an even better visibility/control of activities, went into operation.

Two-Wheeler and Engine production sites

As regards Mechanical Processing, the mass production of 1400 Moto Guzzi and Aprilia 1200 Caponord integral crankshafts was consolidated, and mass production of 750cc Moto Guzzi Model Year 2014 engines began, while the Aprilia 1000cc Model Year 2014 engine was industrialised. Crankshafts for Aprilia Racing motorcycles also went into production
Production of the Rosler vibro-finishing plant for the surface treatment of high performance integral crankshafts was consolidated, and the automated unit for ignition key track milling for conventional crankshafts was installed and tested. Supplies of hub gear units scooters manufactured in Asia were consolidated.
The new QUASAR and MASTER camshafts and engine heads were industrialised, for a new distribution with roller rockers.
Programmes were developed to control the profiles of new cast iron cams sourced from externals suppliers, and production of chrome plated rockers and connecting rods for 1000cc RSV4 engines was restarted.
Production of camshafts for the Aprilia 1200cc Dorsoduro engine was industrialised, with an opposed plane phasing system rather than conical broaching.
Machinery for mechanical processing was made safe.
Areas for the storage of obsolete work machinery and equipment (to be disposed of) were redeveloped.
6 suction devices were installed on the grinders in Workshop 2, for environmental re-qualification purposes.
Processing of the LEm engine casing at the new MAKINO work centre, at Workshop 10 was consolidated, and the casing washing robot was replaced.
Certification began for gear unit, casing and camshaft control machines.
“MAGMA” simulation software for shell moulding processes was installed and tested.
For the Vespa 946 project, moulding for the handlebars and "long" seat support was consolidated, and industrialisation of the "short" seat support was completed. The bottom and top crankcases of the Moto Guzzi 750cc MY2014 engine were industrialised and are now being qualified.
Industrialisation of 1300cc Moto Guzzi and 1000cc RSV4 engine crankcases got underway.

As regards Engine Assembly and Testing, the 1200 Caponord engine went into production and activities were completed for industrialisation of the assembly line and test benches for the new LEm 3V engine Batteryless system.

As regards Two-Wheeler Pressing and Welding, pressing at foreign suppliers got underway to produce sheet metal components for the body of the new Vespa Primavera, manufactured at production sites in Italy and Vietnam.

As regards welding, plants were installed and mass production got underway on the Vespa 946 body (manual line) and Vespa Primavera body (high productivity line with fully automated welding).

As regards Two-Wheeler painting, the process for the Vespa 946 was industrialised, with the introduction of an innovative new rocker for painting the body in a horizontal position.
Activities prior to the development of the new plant began. 

As regards vehicle assembly, the new Vespa 946 went into production, with the development of the vehicle assembly line, comprising AGV devices (an innovative system for the assembly of radio-controlled trucks with the cable below the floor). The construction of the new Vespa 946 assembly line led to the movement of some vehicles to other assembly lines at the Pontedera site, while assembly of the SRV850 vehicle was transferred to the production site at Scorzè.
The second assembly line for the front suspension of the Vespa GTS and Lx went into production.
Activities to update the assembly and testing line for the new Vespa Primavera to go into production were completed.
Line 2 for assembly and testing of the MP3 MY 2014 is being upgraded and industrialised, while lines 2, 5 and 6 are being upgraded for the ABS system to be implemented.
The complete re-layout of the steering assembly area is being completed.

Commercial Vehicles Plants

In June, the Ape City Europa (the new Calessino) went into production.
Final testing on the Porter BTC was consolidated, with the introduction of a Drive Aid control system on test benches.
A system to control and fill brake oil for Ape vehicles was installed, replacing obsolete equipment.
The industrialisation project for the Porter Multitech EURO6 is in the preliminary stage.

Polo Meccanica Site

At the new Polo Meccanica site, which was acquired in 2012 following the insolvency of Tecnocontrol, some Vespa 946 components and the lighter crankcases of the 1000cc engine for Aprilia Racing went into production. Non-routine maintenance included, in particular, redevelopment of the cylinder head assembly lines.

As part of the project to redevelop areas of the Polo Meccanica site at Pontedera, the workshops inside building 36 at the Piaggio site were moved.

The project to redevelop and transfer the Polo Meccanica site inside the Piaggio Plant, has been implemented with the aim of upgrading the production format in order to achieve further improvements in product quality and costs. In particular, the layout has been redesigned, from a Job-Shop to a Flow-Shop production system, with evident benefits for material flows, an increase in added value activities, Work In Process reductions and a more streamlined use of spaces. As part of the project, an additional 16 machines have been acquired. 

Transfer activities are underway. Production start-up of Polo Meccanica activities at the Piaggio site is scheduled for the first quarter of 2014.

Work Times and Methods Analysis

During 2013, the analysis programme of work duties based on OCRA and NIOSH methods continued at all Italian sites. The method evaluates and minimises the risk of occupational disease caused by repetitive movements and strain on the spine.

Property management

Building 62, built to house the canteen for the former Foundry departments, was renovated and turned into company offices for around 100 staff. A total of 2,000 m2, comprising a ground and first floor, were renovated, and the outside area was cleaned up and redeveloped.
The area, previously used as the paper and furnishing store, now houses the company's International Front Office and Back Office for all customers of the Parent Company Piaggio & C. S.p.A., as well as Credit Management and End Product Logistics.

The new Worldwide Spare Parts Centre, serving all Piaggio Group brands, was completed in April 2013 on company property in Pontedera, in the area of the former airport.
The new site is a large and ultra-modern logistics base to receive, pack, store and dispatch after-sales spare parts: the warehouse covers a total surface area of 37,000 m2 and has an independent porter's lodge, 10 loading bays and new outside areas with transit perimeter, for a further 32,000 m2.
The building has an innovative technological transfer system for storing and picking materials (automated miniload system), with a storage capacity of 100,000 different codes, served by 8 automated shelf handling systems, and a final transport system for preparing kits to dispatch.
The high number of spare parts at the new warehouse meant that other logistics warehouses, rented in Italy and abroad, could be dismantled.
At present, rentals of the Spare Parts warehouses in Bientina, Arena Po and Vatry (France) have stopped. 

Scorzè Plant

Investments were made to improve security and fire prevention management at Scorzè site buildings.
All emergency lights, for the escape routes, at the Scorzè site, were modernised.
As regards vehicle assembly, the SRV 850 line transferred from Pontedera was completed, with the transfer of all Derbi models (GPR 50, Senda 50, DRD125) from the Martorelles sites, and vehicle roll-over prevention devices were installed on line 3, where the SRV 850 model will be worked.
Production of the Aprilia Caponord 1200 got underway.

Noale Plant

Investments were also made to improve security and fire prevention management at the Noale site.
The two UPSs serving the EDP machine room were replaced, to guarantee an improved autonomy during power outages.

Mandello Del Lario Plant

In conjunction with competent public authorities (the Local Authorities - Arpal (the Regional Agency for environmental protection - the Provincial authorities), the company is continuing the project to classify industrial land inside the plant, in order to remove and clean up the subsurface after previous industrial production.
At the same time, an application was made to the Regional and Provincial public authorities (the Regional Agency for State Property and the Province of Lecco), to eliminate state ownership of the former irrigation ditch which runs through the site, mostly underground - prior to future expansion of the site, with examination of the application now ongoing.
As regards vehicle assembly, the system serving the “MILK RUN” lines based on logics of the Piaggio Manufacturing System project is now permanently operating, and industrialisation of all versions of the Moto Guzzi California range has been completed.
A new photographic system was installed on the vehicle packaging line, to check dispatched vehicles in the case of complaints.
Extraordinary maintenance was carried out at the engines warehouse.

Baramati Plant

At the Baramati engine plant, installation and start-up of the second rapid test bench for the Ape Pax 200cc engine for the Ape Passenger, petrol, LPG and CNG versions, were completed in February, along with installation and start-up of the cylinder sanding line for HE and Ape Pax 200cc engines, and the production line for HE and Ape Pax 200cc engine cylinder heads, including processing and assembly lines. In June, type approval at Pontedera of the Ape Pax and HE cylinder heads and cylinders manufactured at the Baramati engine plant was obtained.
Activities also began to industrialise the new "batteryless" HE injection engine, with a long "casing", which will involve modernising the current lines for aluminium processing, assembly and testing of the carburettor HE engine with the "short" casing currently in production.

At the Two-Wheeler site, activities to modernise lines to produce the Vespa S were completed. Production start-up is scheduled for January 2014 with plastic components supplied by Pontedera. Production start-up for the Indian supplier of plastic components is currently underway, after the transfer of plastic moulds from Italy to India in December.

Vinh Phuc Plant

In May, installation of an additional 4 machines to process LEm 3V engine coupled casings was completed, increasing installed production capacity from 120,000 coupled casings/year at the end of 2012 (7 processing machines installed and 1 washing unit), to 200,000 coupled casings/year (11 machines installed and 1 washing unit).
In July, the new "Batteryless" injection system for the LEm 3V engine went into production, after production line modernisation.

As regards production of the New Vespa Primavera, mass production of the new welding line for the body of the Vespa Primavera, with body components from a European supplier, was installed and started up at the Two-Wheeler Vehicle site. Production start-up for a Vietnamese supplier of body components is currently underway.
The Vespa GTS with LEm engine and CKD components from Pontedera went into production.

To assist R&D functions, construction of the test track inside the site was completed, along with dynamic stress testing paths for vehicles, with paving and cobbles.

As regards general plant improvements, the installation of an engine assembly cooling system and a 5th medium voltage transformer was completed. 

Piaggio Production System (PPS) inside PMS

Work to expand the PPS continual improvement programme at EMEA sites was ongoing.
Progress in the three main areas of the programme is reported below.

Competitiveness
The trend of processing costs managed by the sites showed a further reduction, after 2012 targets were reached. These costs are in line with the 2013 budget target, established taking into account the PPS reduction objectives of the three-year plan.

Work environment
Two separate programmes are being developed to improve the work environment.
The 5S programme will reorganise work stations for a better quality and productivity. The programme is being run for 50% of all production areas with an average "adequacy" rating compared to the best reference standards.
The programme, which is called QUICK KAIZEN and was launched in 2013, will actively involve all operating personnel in defining production issues and related solutions for improvement. The programme is active at all sites and has introduced around 30 improvement solutions each week.

Company culture
The dissemination of the most appropriate methodological standards and best tools recognised at a World Class Manufacturing level has made it possible to achieve a high level of staff motivation. This has been attained at Piaggio with the introduction of periodic in-company TV slots that monitor the application of these methodologies/tools by employees. Consequently, traditional training on these specific issues can be disseminated even more effectively.

The environment and main relations with control authorities

Besides legal compliance (dispatch of the annual MUD report on waste and annual certification of CO2 emissions - Emission Trading), the Pontedera site complied with requirements in the Integrated Environmental Authorisation (AIA) for the site, sending the Solvent Management report, report on inspections conducted in 2012 and results of the 1st groundwater analysis campaign. 

Environmental, Quality and Occupational Safety certification

The Piaggio Group has in place excellent environmental, quality and occupational management systems at all its production sites.

 Production sites
Pontedera Noale and ScorzèMandello del LarioBaramati-Engine PlantBaramati-Two-Wheeler SiteBaramati-Commercial Vehicles SiteVinh Phuc
Certification       
UNI EN ISO 9001:2008 - Quality management systemssince 1995since 2006since 2010since 2010since 2013since 2009
EN ISO 14001:2004 Environmental management systemssince 2008since 2008since 2010 since 2013 since 2011
BS OHSAS18001:2007- Occupational Health and Sfety Management Systemsince 2007since 2007since 2010 since 2013  since 2013
ISOTS16946:2009 Suppliers' quality systems   since 2012since 2013 
                       

During 2013, the Indian site, which manufactures the Vespa, was awarded certification for Quality (ISO 9001), the Environment (ISO 14001) and Health and Safety (BS OHSAS 18001) from the Certification Body Det Norske Veritas (DNV*). At the same time, the Indian site for commercial vehicles was awarded certification for its Supplier Quality Systems (ISO TS 16946), while the Vietnamese site obtained certification for Health and Safety (BS OHSAS 18001).

As regards Italian sites, in 2013, from 29 October to 13 November, audits were conducted by the certification body Det Norske Veritas (DNV) for renewal of the three certificates held by the Company for Quality (ISO 9001), the Environment (ISO 14001) and Health and Safety (BS OHSAS 18001).

These certificates rank Piaggio as one of just a few Italian manufacturers with all three certifications. The audits, which included eight DNV auditors, demonstrated the Company's commitment to its Quality, Health and Safety and Environmental policies desired by Top Management and are proof of reliability of Management Systems which are applied with the contribution of all functions and the individuals who work in them.

* DNV = Det Norske Veritas is one of the world’s leading certification bodies, with the parent company based in Norway; since 1864 it has been operating to “safeguard life, property and the environment”. It is active in 100 nations, and has 300 offices and 7,000 employees.