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Welcome to

Holden Engine Operations 2015

VICTORIA

Plant 18 Office and Conference Room

Evacuation Map

IN AN EMERGENCY DIAL 222The Alert alarm is a loud repetitive beeping sound (beep……beep……beep…). On hearing this alarm, all persons should:

• Standby and prepare to evacuate• Make your work area safe, park mobile equipment• And follow Emergency Wardens instructions

The Evacuation alarm is a loud repetitive whooping sound (whoop……whoop……whoop...). On hearing this alarm all persons should:• Evacuate the building IMMEDIATELY by the nearest safe Emergency Exit• Go straight to the Emergency Assembly Area via the shortest safe route• At the Emergency Assembly Area muster in your work group.• Stay in the Emergency Assembly Area until the ALL CLEAR is given.

Last updated 23/10/13

1936


1936

GMH Fishermans Bend Facility Opened.

Production StartFor Foundry and Engine Plant

Family II Engine Plant Commissioned

Launch of Australia’sfirst locallymanufactured car and Engine.Holden 48 - 215FX6 Cylinder –2.15 Litre Grey Engine

First Australian Designed L6 Engine Produced for EH Vehicle

First AustralianV8 Engine Produced for HT Vehiclemore than 541,00 were builtThis V8 model lasted until 1999 followed by the introduction of V8 Gen III 5.7 litre

HFV6 Start of Production

Holden Engine Operations History

GREY ENGINE

HFV6

Produced Two Millionth Export Engines

1940

1948

1963

1969

1981

1994

2004-2015

2003 Continued Export Growth- Increase demand forGM Korea and SGM-2005 achieved the4 Millionth Export Engines.- 2009 Launched LLT/LF1 SIDIEnginesCurrently working on CNG.2014 One millionth V6 engine produced.

HFV6 CNG

GM Holden – Port Melbourne, Australia


Investment -‐ $400 Million Initial Investment

$ 50 Million Machine upgrades for new models. (2003 – 2014)

S.O.P. -‐ 2003

Capacity -‐ 960 Engines / Day (320 per shift OEM capacity)

(216,000 Annualised Capacity)

Currently running at 240 per shift / one shift.

2015

Current Head -‐ 150 Hourly

Count -‐ 22 Salaried

Organisation

•Structure Flat Structure4 layers of leadership

• Team Leader, • Group Leader,• Area Manager • Plant Manager

•Team Work throughout Plant .

•Team sizes 4-‐ 8 team members.

•Team Leaders selection process by Management.

Production

Maintenance, M.E, Q.A, GSC

HR, Finance, WFG

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Holden Engine Operations

29 Different Cultural Backgrounds

What do we make?

Cylinder Blocks

Area 6755m2 (approximately)

Cost of Line $79.1 million (approximately)

Types of Machines13 x CNC Transfer Machines2 x Leak Test Machines2 x Washing Machine

1 x HoningMachine1 x Deburring Machine4 x Assembly Machines

Machine Manufacturers

-‐Toyoda-‐Kito-‐Toyo-‐Shinmei

Hourly Capacity 54 parts per hour

Variants 4 (2 large bore, 2 small bore)

Takt Time 67 seconds per part

Crankshafts

Area 3960 m2 (approx)

Cost of Line $48 million (approx)

Types of Machines

12 x CNC Machining Centre9 x CNC Turning5 x Grinding4 x Induction Hardening3 x Pin Milling3 x Washing

2 x Balancing1 x Laser Etch1 x Transfer1 x Fillet Rolling1 x Assembly1 x Polishing1 x Final Gauging

Machine Manufacturers

-‐Mori Seki -‐Komatsu-‐Toyoda-‐NTC

-‐Hegenscheidt-‐Nachi-‐Marland-‐Marposs

-‐Sugino-‐CrankPro-‐Inductoheat-‐Kito

-‐Nagahama-‐Schenck-‐Impco-‐Nachi


Variants 6



Cylinder Heads

Area 4740 m2 (approximately)


Types of Machines

2 x Anicillary Machines2 x Assembly Machines8 x Machining Centre Machines3 x Milling Machine

4 x Horizontal Machining Centre Machines1 x Gauging Machine2 x Washing Machines

Machine Manufacturers -‐Enshu -‐Horkos


Variants 14


Engine Assemblies

Area 4180m2 (approximately)


No of Stations 118

Types of Stations 10 test, 15 Auto Nut Runner, 82 Manual

Machine Manufacturers Sanyo, Future Technologies

Hourly Capacity 50.7 parts per hour

Processing Time per piece 2.8 hours

Installed Takt Time 67 seconds per engine

Variants 32

3,044

52,275

136,318 136,396132,802

98,356

62,663

99,293

106,155

83,13078,365

63,821 61,909

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

HFV6 Engine Production Volumes

Suppliers

Local Australia: • 23% of Engine• 31 Suppliers• Key suppliers – Bosch, Mett, ZF Boge, Denso

International:• 77% of Engine• 102 Suppliers• Key Suppliers -‐ Nemak, Mahle, Sumitomo, Bleistahl, Hitachi, Mark IV, Auma.

23/10/2013

Where do they go?

Current CustomersCustomer Application 2014 Fcst

Volume SOP Brand

Holden Vehicle Ops VF Series 22,542 Current

GM Europe Insignia 1,187 Current

Brazil GMI700 750 Current

GM Thailand GMI700 962 Current

GM Korea C140, VS300 15,725 Current

SGM SGM 258 – Buick GL8 19,928 Current

HSPO Service Motors 315 Current

GM North America Impala 500 Current

Total 61,909

GM KoreaGM Europe

SGM

GM Thailand

GMNA

Export Volume and Destination

Brazil


Current Export Application

Buick: GL8

GM Korea

Holden: VF Commodore

Opel: Insignia

Chev Impala CNG

Questions?

Holden’s manufacturing system

overview

Welcome to Holden

The purpose of this information session:• Define our manufacturing process.• Give functional examples of this process in use.• Identify types of waste elimination tools used.

Global Manufacturing System

This supports General Motors' Vision of Designing, Building and Selling the World's Best

Vehicles.”

GMS Definition“The Global Manufacturing System is a single, common manufacturing system that engages all employees.

GMS sets the standards throughout General Motors world-‐wide, whilst utilising it’s employee’s initiatives to reduce

waste and continuously improve.


Where did GMS come from?

GMS is based on the Toyota model, TPS (Toyota Production System).

After years of implementation, many other Global Organisations, including GM, have developed their

own version


Why do we need a production system?

There Are 64 Different Brands of cars in Australia

Mazda, MitsubishiFiatSuzukiRenaultHyundaiHondaNissanPeugeotChryslerVolkswagenFordToyota

BMWSubaruMercedesOpelLotusMaseratiSaabPorscheDaihatsuHinoLexusCitroenFerrariAlfa Romeo

AudiBentleyBugattiLamborghiniSEATSkodaJeepDodgeMiniGreat WallSmartIsuzuSsangYangChery

KiaProtonSkodaAston MartinJaguarLand RoverVolvoInfinitiDatsunRolls-‐Royce


• COMMWIP ?(Waste elimination)• Plan, Do, Check, Act (Kaizen)• Andon• Kanban• Poka-‐Yoke• ‘Pull system’• First Time Quality• Visual control / Status-‐at-‐a-‐glance• Business Plan Deployment Goals• Workplace organisation

The list goes on

Our Core ValuesCUSTOMERSOur decision-‐making starts and ends with our customers. We listen intently to their needs and provide them with:A high level of expertiseComplete transparencyUnparalleled convenienceGenuine appreciation for their business

RELATIONSHIPSWe work with and care for all team members across the GM enterprise with complete respect, transparency and appreciation of one another’s unique strengths.

EXCELLENCEEach of us strives to perform at our highest level and can be trusted to serve our customers and fellow team members with personal integrity and accountability. Each of us has a thirst for creativity, ingenuity and innovation – and has the tenacity to win.


Before you start, your people need to know why you do what you do.

What's your MISSION.

General Motor’s Goals

Safe, Clean & Healthy Working

Environment for all

employees and visitors

Focus on employee

Development, Involvement and Enthusiasm

Each customer in each process expects a high quality product or service

Customers want a quality product or service but they also want it FAST!

Eliminate waste and control costs to deliver our customers the right product at the right price!!

SPQRCE

To provide a cleaner, safer and healthier living and working

environment.

S P Q R C E

Principles and Elements

So how does GMS work?

PI-7 WHY: Roles and responsibilities establish the duties, behaviors and work deliverables for each level of the organization. WHAT/HOW: The roles and responsibilities exist for each position and are maintained by the Leadership. Roles and responsibilities cover the 5 GMS Principles. Ask/Look for:>Ask the PI Principle Owner and/or Director Human Resources if R&Rs are defined for all levels of the organization and how they have been communicated and where they can be found.>Review examples of the TM and TL R&Rs to ensure that they support SPQRCE.>Ask a sample of employees from each area where they can find their R&Rs and share with you. Do they have a general understanding of them? Let them describe to you.> Review the GL and TL STS - is there clear separation of duties with appropriate overlap, or is the GL performing TL duties? > For the GL you may look at roles such as (1) continuous improvement/problem solve, (2) coach/teach/recognize, (3) plan through BPD and (4) support TMs/TLs to manage the week. Ask the Group Leader to describe how they perform these activities.

Roles and Responsibilities

Roles and responsibilities are defined, written and communicated and understood for all levels of the organization. . Ref. PI Team Concept Core Requirement: 1, 2

For O the plant should present written structured R&R (job description, list of R&R or other format) + STS/TIS. All major areas of responsibility to be covered such as Safety, Quality, Standardized work, participation in CI activities, being a trainer, Group/ Team Meetings, etc. TM, TL, GL (or other employee) should be able to explain how they perform these R&R. Execution of R&R should is confirmed and assessed by other principles.

Reason for ∆ or X can be, for example: R&R are not clearly identified, not communicated effectively to the user, not understood by the user.

PEOPLE INVOLVEMENTELEMENTS

• Vision & Values

• Mission

• Health, Safety, & Environment

• Qualified People

• Team Concept

• People Involvement

• Open Communication Process

• Shop Floor Management

People are the most valuable resource in the company

People Involvement

Roots = Culture & Values

Trunk = People & Mindset

People Involvement Company

Branches = Processes & Tools

Fruit = Quality ProductPEOPLE are our most

important resource!!!

Like a Tree, People Need Nurturing for Growth

Soil = Environment

Employee Mind Change

TRADITIONAL EXPECTATION

MODERN EXPECTATION

• Just Do What You Are Told To Do• Employee Enthusiasm Not Important

• Participate in Making Standardized Work• Continuously Improve Job• Involved in Problem Solving• Involvement Brings Enthusiasm!

J Hamalian

The Stages of Safety Awareness

Stage 1:Unawareness of

Hazards

Stage 2: Awareness But No Action to Prevent Injury

Stage 3:Injury But Still No

Concern

Building a “Safety Culture”

No Problem –He Can Still Work!

The Stages of Safety AwarenessBuilding a “Safety Culture”

Stage 4:Injury and Realisation of Impact to Person and Company

Stage 5:Awareness of Hazards

& Proactive Countermeasures to Prevent Incidents

STANDARDISATIONELEMENTS

• Standardised Work

•Management by Takt Time

•Workplace Organisation

• Visual Management

Standardization Set and follow standards to achieve a base from which to grow

STANDARDISATIONELEMENTS

5S

ift-‐ Identify those things that are absolutely needed for the operation -‐discard the others.

ort-‐ Create a place for everything and put everything in its place. Designate and mark locations for specific items and make sure they are kept in the designated area when not in use.

weep-‐ Clean the area completely. Ensure you remove dirt and dust. Clean up liquid spills and fix leaks.

ustain-‐ Keep your area clean and orderly. Go through the above points in your area and work tasks.

elf Discipline-‐ Create pride in the workplace, and the discipline to maintain it. Make it a habit to ensure your work area is always clean and tidy.

When things are in their correct place! No trip, slip hazards, etc.

Items in their place reduce the likelihood of mistakes, you’ll use the

right tool because it’s there.

Items in their place mean there is no need for everyone to have a

spare one.

Why have Workplace Org?

How to maintain the standard

All of our workplace organisation standards are contained in one

folder, accessible to every employee. These are located

throughout the plant.

Waste Elimination

CorrectionOver productionMotionMaterial MovementWaitingInventoryProcessing

COMMWIP

CorrectionWhat is it?Doing something over because it wasn’t done right the first time

What causes it?Not following standardisation, inadequate standardisation, machine/tooling faults, faulty material

Where do we see it?Repair stations, re-‐machining parts

COMMWIP

OverproductionWhat is it?Making more than is necessary or making things faster than necessary, working ahead

What causes it?Unbalanced operations, lack of communication, high equipment downtime

Where do we see it?Inventory levels, buffer stock

COMMWIP

Motion

What is it?Unnecessary work movements by an operator or machine which is not necessary in adding value to the productWhat causes it?Worksite poorly laid out or standardized work sequence not properly planned or followed

Where do we see it?Looking for tools, poor 5S, lack of shadow boards and visual management, distance between storage and point of use

COMMWIP

Material MovementWhat is it?Unnecessary transporting, storing or rearranging of items, parts, equipment, etc. which is not required for production What causes it?Excess stock, lack of workplace organization, inadequate process, process not being followed

Where do we see it?Moving material between plants/sections

COMMWIP

Waiting

What is it?To remain in one place while doing something other than what is related to the task at hand

What causes it?Operations not balanced, broken equipment, indecisiveness, lack of communication

Where do we see it?No activity/action, standing around, non-‐value activities

COMMWIP

InventoryWhat is it?Too much of anything is a waste. This can often lead to other forms of waste i.e. Material movement, correction, etc

What causes it?Unlevel scheduling, no pull system, too many material storage areas, lack of communication

Where do we see it?Excessive buffer stock

COMMWIP

ProcessingWhat is it?Doing something the customer does not perceive as adding value to the product

What causes it?Inadequate/Not following standardisation, correction, quality issues

Where do we see it?Clicking a torque wrench twice when one is sufficient by the quality standards, polishing the underside of a bonnet, mixed pallets, PDG contractors

BUILT-‐IN-‐QUALITY ELEMENTS

• Product Quality Standards

•Manufacturing Process Validation

• In Process Control & Verification

• Quality Feedback/Feedforward

• Quality System Management

Built-In-Quality Customer’s Quality expectations are built in to each process to ensure defects are not passed on

GLOBAL MANUFACTURING SYSTEM

What is a Critical Process?

What is a Mandatory Sequence?

If the procedure is not followed, the engine might suffer a catastrophic failure. It is an essential parameter

directly influenced by the operator

The steps in the JES MUST follow the described sequence for quality, safety or productivity reasons (as per the PCP). This sequence may only be changed by

Manufacturing Engineering

C

M

“SUPPLIERS” YOU “CUSTOMER”

Process A Process B Process C

BUILT-‐IN-‐QUALITY ELEMENTS

ProactiveReactive

SHORT LEAD TIME ELEMENTS

• Simple Process Flow

• Small Lot Packaging

• Fixed Period Ordering

• Controlled External Transportation

• Temporary Material Storage

• Pull Systems

• Level Order Schedules

• Supply Chain Management

•Scheduled Ship & Receive

Short Lead Time

The relentless pursuit to reduce the time to deliver product or service

18. Simple Process Flow ElementFirst In, First Out (FIFO)

FIFO = Control of Quality and Lead Time

FIFO No FIFO

SHORT LEAD TIME ELEMENTS

CONTINUOUS IMPROVEMENT ELEMENTS

• Problem Solving

• Andon Concept

• Business Plan Deployment

• Lean Facilities & Equipment

• Early DFM/DFA (design for manufacture / design for assembly)

• Total Maintenance Systems

• Continuous Improvement Process

Continuous Improvement

Foster a culture of change and constant improvement

Operator Preventative Maintenance

OPM CardTUESDAY DAY SHIFT

Op 100,110

Oil SkimmerEmpty Waste into IBC located between Op 20 & 30

Oil collection Trays.Empty Waste into IBC located between Op 20 & 30

Check Coolant level(Gauge indicator is within operating range)

Check Coolant Temperature(Between 18 -‐ 24°C)

OPM Sheet

O.P.M (OPERATOR PREVENTATIVE MAINTENANCE)TASK SHEETOperation/Stn #

Stn.#1170

14.05MFG/1 Written by: Nathan Baranello Date: 20/05/2015

Check (What) Sym Ref. Key Point (How)

Conveyor table is clearVisual inspection to ensure conveyor table is clear of obstructions and

components. Remove any foreign objects

Nest is clear and clean 1Visual inspection to ensure nest is clear

of obstructions and free of contamination. Clean if required

Nest condition 2.1Visual inspection bearing cap nest (where bearing cap sits) condition for excessive wear e.g. significant scratches and chips

Guide fingers 2.2Clean between guide fingers & nest to remove any steel slithers. Clean if

required

Crankshaft lubrication 3 Ensure that all 4 main bearings are visually coated in oil. (3.1,3.2,3.3,3.4)

Light curtain 4Machine must stop during auto cycle run once light curtain has been broken using test wand (4.1).If machine does not stop during cycle, call team/group leader immediately and move away from

machine.

N.B: If anything requires replacing, consult with team leader first for approval.

3.1

3.4

3.2

3.3

Downtime Recording

All this comes together to meet our Goals

Short Lead Time

Continuous Improvement CompanyPeople Involvement Company

Standardization Built-In-Quality

• Safety• People• Quality

• Responsiveness• CostLean

Principles(Process)

Goals & Metrics (Results)

Business Goals (Scorecard)

Methods to Meet the Goals(GMS)

Future

Q. Why do we use GMS?A. Lean Manufacturing

Using our current labour to increase efficiency, decrease waste, and improve “flow of work”, resulting in a more profitable product, with a

highly skilled, flexible workforce.YOU GET LEAN BY GETTING EFFICIENT NOT

SMALLER!

Future

Q. Manufacturing at Holden is closing, so why bother?A. The more efficient we are the longer we stay, and we will

keep improving until the last day.

• We have just stopped producing 390 engines per shift in a plant rated at 320 per shift with no capital investment.

• 4 plants in the world make the same engine, our volume could be taken, Mexico work 9.6 hour shifts at a fraction of our hourly rate.

• Over 10 million HFV6 engine have been produced, these will need spares for the next ten years, the plant that makes these parts needs to be adaptable, flexible

and efficient.• We need to ready our people for jobs outside of the automotive industry.

Thank you for your attention

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