02_wcm_investor_day
TRANSCRIPT
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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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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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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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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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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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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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Model Area: Melfi
Productivity: Hours per Vehicle – Grande Punto
-12%
in 8 months
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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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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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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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WCM – Extension towards Suppliers
World Class Manufacturing integration/ extensionthroughout Supplier Process Engineers
SUPPLIER
Cost
€
Quality
Q
Maintenance
M
Logistic
L