02_wcm_investor_day

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Lingotto - November 8 & 9, 2006 Stefan Kette r World Class Manufacturing

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8/7/2019 02_WCM_Investor_Day

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Lingotto - November 8 & 9, 2006

Stefan Ketter

World Class Manufacturing

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2Lingotto - November 8 & 9, 2006

WCM Focus

All Employees

Waste and Losses

Standards and Methods

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3Lingotto - November 8 & 9, 2006

Structure/ Objectives

People involvement, value creation, customer satisfactionValues  

     C

    o    s     t

     D    e    p     l    o    y    m    e    n     t

WorkplaceOrganization

Quality Maintenance Logistic

Focus  ProductivityQuality

Improvement

TechnicalEfficiency

ServiceLevel

M et hod  & st d .

Total Industrial

Engineering

Total Quality

Control

Total Productive

Maintenance Just in Time

Target   zerowaste

zerodefects

zerobreakdowns

zeroinventory

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WCM Principles

1. World Class Safety is the foundation of World ClassPerformance

2. WCM Leaders have a passion for standards .

3. In a World Class Company the voice of the customer can beheard in the plant

4. WCM does not accept losses of any kind (The goal isalways Zero: accidents, service & quality defects, inventory,breakdowns)

5. A rigorous application of WCM methods guarantees theelimination of losses

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6. In a World Class plant all abnormalities are immediatelyvisible (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 techniqueswith 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

WCM Principles

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6Lingotto - November 8 & 9, 2006

Main Actual Activities

Investments & Fix Plants

Time

Environment / Ergonomy

Training / Leadership / Organisation

Maintenance Process

Cost Deployment

Labour eff ic iency / Capacity Uti lization

Quality Process Improvement

Logistic Process

2006E 2007E2005A

WCM Basics / Safety

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7Lingotto - November 8 & 9, 2006

Actual Best Results/ WCM Audit

Coinvolgimento Sicurezza

Audit

Leadership

New approach

New approach

First exercises

4 model areas

10 model areas

34 model areas

58 model areas

7 model areas

147 events

100 % plants

New approach

Environment11

People development/ qualification10

Early Equipment Management9

Production Logistic System8

7 Quality Control

P.M.: Professional Maintenance6

5 A.M.: Autonomous Maintenance

Work Place Organization4

Focused Improvement3

Cost Deployment2

Safety1

WorkplaceOrganization Quality Maintenance Logistic

Methodologies

100%

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8Lingotto - November 8 & 9, 2006

Model Area: Tychy/ Poland

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

4,5

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

People Involvement: Proposals/ Employee/ Year

Target = 4

Implementationrate 50%

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9Lingotto - November 8 & 9, 2006

Quality: Electric Check Defects – Grande Punto

   S  e  p  -   0   5

   O  c   t  -   0   5

   N  o  v  -   0   5

   D  e  c  -   0   5

   J  a  n  -   0   6

   F  e   b  -   0   6

   M  a  r  -   0   6

   A  p  r  -   0   6

   M  a  y  -   0   6

   J  u  n  -   0   6

   l  u  g   '   0   6

   A  u  g  -   0   6

   S  e  p  -   0   6

   O  c   t  -   '   0   6   E

   %

- 50%

Model Area: Melfi

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10Lingotto - November 8 & 9, 2006

Model Area: Melfi

Productivity: Hours per Vehicle – Grande Punto

-12%

in 8 months

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11Lingotto - November 8 & 9, 2006

Average Hours/ Vehicle

2006E 2010E

Vs. Benchmark (Harbour Report)

Segment

A

B

C

D

LCV

Ranking

Leadership

Leadership

Top 5

Top 10

Leadership

As result of new vehicle introduction*

- 20%*

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12Lingotto - November 8 & 9, 2006

Labour Productivity Target (Italy/ Poland)

Actual 2010E

Operation

Operation

Non Value Added

• Logistic layout

• Time Optimization

- 50%

Technical efficiency

Waste/Rework

Line Balancing

- 30%

100%

LossesLosses

   R  a  n  g  e

Range

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13Lingotto - November 8 & 9, 2006

Towards World Class Manufacturing

0

10

20

30

40

50

60

70

80

90

100

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

   a   u   d   i   t

   r   e   s   u   l   t   %

2006E 2007E 2008E 2009E 2010E

Model areas

Knowledge

creation

Consolidation /

Autonomous

Improvement

      g      o        l        d

      s       i        l      v

      e      r

        b      r      o      n      z      eHorizontal

expansion

   E   U

    P   l  a  n   t  s

   A   l   l   P   l  a  n   t  s

   A   l   l

   P   l  a  n   t  s

Saving: > €500mn

CompetitiveLevel

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14Lingotto - November 8 & 9, 2006

WCM – Extension towards Suppliers

World Class Manufacturing integration/ extensionthroughout Supplier Process Engineers

SUPPLIER

Cost

Quality

Q

Maintenance

M

Logistic

L

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15Lingotto - November 8 & 9, 2006

WCM – A Corporative Approach

WCM

Implementation,

Auditing and

Best Practice Sharing