Supporting Michelin's Global Standards

Steve Plane
Michelin has been a part of American industry since 1907. Headquartered in Greenville, SC, Michelin North America employs more than 22,000 and operates 18 major manufacturing plants in 16 locations in the US, Canada and Mexico. Faithful+Gould is supporting the company with a range of project management services.

Following Michelin’s robust interim 2012 earnings performance, September 2012 saw the Group review its capital expenditure program and 2015 financial outlook. The premium tire segment, in which Michelin sets the benchmark and is expanding faster than the overall market, represents a strong growth opportunity, with increased production capacity anticipated. To widen its leadership in its specialty businesses, Michelin embarked on two projects in South Carolina, the state where Michelin first began its US manufacturing. The aim was to extend mining tire capacity at its existing Earthmover plant in Lexington and to build a new facility in Anderson County. Already underway, the new Earthmover tire plant will be adjacent to Michelin’s existing rubber processing plant in Starr, SC, and will be the third Michelin plant in Anderson County.

The two projects represent a $750 million investment and will create up to 500 new jobs. This reinforces Michelin’s importance as part of the economic and social fabric of South Carolina where 8,000 are employed by the company. In 2011, Michelin also committed to add an estimated 270 jobs and invest $200 million in its existing Lexington passenger and light truck tire manufacturing facility. The first tire rolled off the line at Lexington’s expanded operation in October 2012.

Faithful+Gould is providing support for Michelin’s projects in Lexington and Starr, SC, as well as their North America portfolio as a whole. Acting in an Owner’s Assistance role on the three project sites, the Faithful+Gould teams provide monitoring and control of the EPC contractor’s safety, quality, scheduling and cost management practices and procedures. Additionally, the team manages an independent design review team who are charged with assuring that the Michelin requirements are met and their standards applied.

At the portfolio level, a Faithful+Gould team supports the Michelin North America Project Office in standardizing scheduling and cost management practices and implementing our Epoch enterprise cost and performance management system.

At the portfolio level, a Faithful+Gould team supports the Michelin North America Project Office in standardizing scheduling and cost management practices and implementing our Epoch enterprise cost and performance management system. The aim is to improve schedule and cost predictability, increasing transparency and accountability across the broad range of major capital projects. By applying standard processes and technology, best practices can be applied efficiently and consistently across all locations through systems interfaces. This fosters the development of a continuous improvement culture, which is a key goal of Michelin’s Project Office.

In addition to our work in North America, Faithful+Gould is supporting Michelin’s global standards in several countries...

In addition to our work in North America, Faithful+Gould is supporting Michelin’s global standards in several countries, including its world headquarters in France. With the launch of the Global Project Monitoring Office (PMO), the Faithful+Gould program scope encompasses all major manufacturing facility construction within the Michelin global organisation. The primary focus was squarely on the largest investments in China, Brazil, Thailand and India, representing multi-billion euro investments.

The first PMO programme rolled out in Shenyang, China in September 2010. With little respite, Brazil went live in May 2011, Thailand in June 2011, and India in August 2011. As 2011 drew to a close, the PMO extended its reach into new project locations in North America and Europe.

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