World Class Manufacturing
Stefan Ketter
Lingotto - November 8 & 9, 2006
WCM Focus
All Employees
Waste and Losses
Standards and Methods
Lingotto - November 8 & 9, 2006
2
Cost Deployment
Structure/Objectives
Workplace Organization
Quality
Maintenance
Logistic
Total Industrial Engineering
Total Quality Control
Total Productive Maintenance
Focus
Productivity
Quality Improvement
Technical Efficiency
Service Level
Target
zero waste
zero defects
zero breakdowns
zero inventory
Method & std.
Values
Just in Time
People involvement, value creation, customer satisfaction
Lingotto - November 8 & 9, 2006
3
WCM Principles
1. World Class Safety is the foundation of World Class Performance 2. WCM Leaders have a passion for standards
.
3. In a World Class Company the voice of the customer can be heard in the plant 4. WCM does not accept losses of any kind (The goal is always Zero: accidents, service & quality defects, inventory, breakdowns) 5. A rigorous application of WCM methods guarantees the elimination of losses
Lingotto - November 8 & 9, 2006
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WCM Principles
6. In a World Class plant all abnormalities are immediately visible (Dust & contamination free, tracking, control charts ‌) 7. WCM takes place in the workplace, not in the office
.
8. WCM is most effectively learnt by practicing the techniques with the plant teams 9. The power of WCM comes from the involvement of people 10. World Class companies create the energy of a crisis in the face of continued success
Lingotto - November 8 & 9, 2006
5
Main Actual Activities 2005A
2006E
2007E
WCM Basics / Safety Training / Leadership / Organisation Cost Deployment Investments & Fix Plants Labour efficiency / Capacity Utilization Environment / Ergonomy Maintenance Process Quality Process Improvement Logistic Process
Lingotto - November 8 & 9, 2006
Time
6
Actual Best Results/WCM Audit
Workplace Organization
Quality
Maintenance
Logistic
Methodologies 1
Safety
New approach
2
Cost Deployment
100 % plants
3
Focused Improvement
147 events
4
Work Place Organization
7 model areas Audit
5
A.M.: Autonomous Maintenance
58 model areas
6
P.M.: Professional Maintenance
7
Quality Control
10 modelLeadership areas
8
Production Logistic System
4 model areas
9
Early Equipment Management
First exercises
10
People development/qualification
New approach
11
Environment
New approach
Coinvolgimento Sicurezza 34 model areas
100% Lingotto - November 8 & 9, 2006
7
Model Area: Tychy/Poland People Involvement: Proposals/Employee/Year 4,5
Target = 4 4,0 3,5 3,0 2,5
Implementation rate 50%
2,0 1,5 1,0 0,5 0,0 Jan
Feb
Mar
Lingotto - November 8 & 9, 2006
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
8
Model Area: Melfi Quality: Electric Check Defects – Grande Punto
Lingotto - November 8 & 9, 2006
Oct-'06E
Sep-06
Aug-06
lug '06
Jun-06
May-06
Apr-06
Mar-06
Feb-06
Jan-06
Dec-05
Nov-05
Oct-05
Sep-05
%
- 50%
9
Model Area: Melfi Productivity: Hours per Vehicle – Grande Punto
-12% in 8 months
Lingotto - November 8 & 9, 2006
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Average Hours/Vehicle
- 20%*
2006E
*
Vs. Benchmark
(Harbour Report)
Segment
Ranking
A
Leadership
B
Leadership
C
Top 5
D
Top 10
LCV
Leadership
2010E
As result of new vehicle introduction
Lingotto - November 8 & 9, 2006
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Labour Productivity Target (Italy/Poland) 100%
Technical efficiency Losses
Waste/Rework
- 30%
Losses Range
Range
Line Balancing
- 50% Non Value Added • Logistic layout • Time Optimization
Operation Operation
Actual Lingotto - November 8 & 9, 2006
2010E 12
Towards World Class Manufacturing
gold
100
Consolidation / Autonomous Improvement
bronze
expansion
50
All Plants
Horizontal
60
40
30
20
Knowledge creation Model areas
EU Plants
audit result %
70
silver
Competitive Level
80
All Plants
90
Saving: > â‚Ź500mn
10
2006E
2007E
2008E
2009E
2010E
0 1
3
5
7
9
11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67
months form program launch
Lingotto - November 8 & 9, 2006
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WCM – Extension towards Suppliers
Cost
Quality
Maintenance
Logistic
€
Q
M
L
SUPPLIER World Class Manufacturing integration/extension throughout Supplier Process Engineers
Lingotto - November 8 & 9, 2006
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WCM – A Corporative Approach
WCM
Implementation, Auditing and Best Practice Sharing Lingotto - November 8 & 9, 2006
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