Page 12 - Manual FAT EU

Manual FAT EU 2018

3.2.2 Product Centers structure

The Product Centres are organizational structures based on special know-how,
standardized functions and interfaces. These include special functions for planning
and technical product development (so-called "green" functions within the scope of
the project) as well as functions for production and it’s planning ("black" functions).
Each Competence Center has its own vision (refers to the Böllhoff Group vision and
FAT EU strategy) and mission, which describes the role of the PC within the FAT
organization (  FAT Strategy 2018-2021). The core processes, also described in
the FAT process landscape, are similar for all Product Centers, just procedures within
the areas can vary depending on the products. The FAT EU organisation takes into
account the different specifics of individual areas and grants certain flexibility, while
respecting structural rules of the framework.

Each Product Center has its own Product and Project Management, with each being
independent of the other and reporting directly to the Head of PC. Only PC
Automation does not have a Product Manager - the tasks are taken over by the
respective Product Managers in fastener PC’s by caring out product management of
element and automation, according to the system approach. Each Competence
Center has its own Development, Production and Quality departments.

The "Production Supply Chain" and "Purchasing" areas are designed separately or
as a part of one organizational unit, depending on special PC requirements. In our
understanding the logistical function in "Black" ("Supply chain") includes the field of
"Production logistic" and includes necessarily:
- Planning (stock policy, SO & P),
- Material flow from raw material to ramp,
- Make or Buy decision,
- Purchase of raw material,
- Production warehouse (raw material and
semi-finishes materials) and
- Delivery of the goods to the ramp. The
ramp is defined as the ramp of the

Figure 8: Differentiation Customer Logistics, customer logistic warehouse.
Purchasing and Production Supply Chain
According to this functional view
procurement / purchase of finished goods is not part of this function and, for sure, the
production function itself. However, from organisation point of view, the Purchase
department can be included under “Black”-“Production” responsibility. Taking this into
consideration, this functional area is called "Production Supply Chain and
Purchasing". For the organisational point of view the "Purchasing" can be included in
functional area in small business units but can also be separated in large business
units to create manageable organisation structure.

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