mdh 100914...
TRANSCRIPT
Agenda
8.35 Company presentation, Anette
9 00 P d ti d l t A tt9.00 Production development, Anette
9.30 Logistic development (material supply systems), Anders
10 00 Transport10.00 Transport
10.30 Tour of the factory (½ class), Lennart
VPS introduction (½) MarcusVPS introduction (½), Marcus
11.10 Tour of the factory (½), Lennart
VPS introduction (½) MarcusVPS introduction (½), Marcus
VPS Academy2009-09-08VPS-1214, Issue 3
Slide 1
Volvo Production S t P i i lSystem Principles“VPS is the way to Operational Excellence”Operational ExcellenceKatarina LindströmChairwoman, VPS Steering Committee
VPS Academy2009-09-08VPS-1214, Issue 3
Slide 2
CS09 – Component Step 2009CS09 Component Step 2009New production and assembly concepts
Line assembly instead of static assembly
One flow for axles and one for transmissions
Extension from 53,000 m2 to 63,000 m2,
Lean production will result in higher quality less waste more flexibleA ld l f t quality, less waste, more flexible production
A world class factoryHigher capacity that can be doubled in the long run.
VPS Academy2009-09-08VPS-1214, Issue 3
Slide 33 2010-09-14
We are moving into a completely new production set-upproduction set-up
Current/historical set-up New production set-up
Incremental expansion Lean Manufacturing concept in line with VPS
Complex flowsHigh WIP
High quality and delivery precisionImproved flows and flexibility to handle g
Currently runs in five shiftsLow/no flexibility
…
ydemand variations
Lower product costDecreased investment levels
VPS Academy2009-09-08VPS-1214, Issue 3
Slide 44 2010-09-14
Volvo Production System
“…VPS combines the vision with principles - tools and techniques. Teamwork, Process Stability, Built-in Quality, q y yJust-in Time and Continuous Improvement are not new principles to most people, but it is how it is part of a total system and can be used in all processes and operationsbased on the Volvo Way, that makes it unique to the Group and is our competitive advantage.” Ebly Sanchez, Director, VPS Academy
VPS VisionAn organization where we continuously improve quality,
delivery and productivity, in everything we do.
VPS Academy2009-09-08VPS-1214, Issue 3
Slide 5
What is VPS?
Volvo Production System (VPS) is a customer-driven, people-oriented, unifying system that serves as the source of common principles and
tipractices.
VPS is not just for manufacturing operations – it requires all areas and individuals to commit to living according to lean principles and contribute to the transformation of the Volvo Group in the 21st century.
VPS Academy2009-09-08VPS-1214, Issue 3
Slide 6
Avoid Wastes
Overproduction TransportMovementsWait
Inventory Defects and ReworkUnnecessary Processes
+ Not used employee creativity
VPS Academy2009-09-08VPS-1214, Issue 3
Slide 7
The Volvo Way is our foundation
Leadership Safety & health
VPS Academy2009-09-08VPS-1214, Issue 3
Slide 8
VPS History and focus
VPS Launch
Pre-studyDevelop VPS
Operational Excellence
VPS Expansion
VPS /ODOpExLaunchDevelop VPS
overview
2004 6 2007 2008 2010
Excellence Expansion OpEx office
2009
• Initiation• Overview of
• VPS launch with Manufacturing
• Description of VPS-OtD modules
2004-6 2007 2008 2010
• Description of VPS PDP modules
2009
• GIB-OpEx governanceOverview of
existing production systems
• Collect best practices De elop
Manufacturing Managers at VPS Conference
• VPS assessment 1.0
• VPS homepage and doc ment database
• VPS Assessment v2.0
• VPS Global Conference
• Extended scope
VPS-PDP modules• VPS Toolbox• Launch of OpEx• OD Office• Expanded scope to
governance• Expansion-VBS,
Business Admin Process
• PD assessment and lf di i• Develop
VPS strategy• Benchmarking• Create and
communicate guiding principles
document database
• Good ExamplesVBS
• Operational Excellence Office formed with OD Office and VPS
self-diagnostic• 2nd round OtD
Assessments• VPS-PDP
Assessment v1.0• Begin
development of toolkit
• VPS Academy and Working Group formed
Academy • OD/VPS integration
VPS Academy2009-09-08VPS-1214, Issue 3
Slide 9
formed
The Volvo Production System covers 3 i t t di i3 important dimensions
5 PrinciplesVision Modules with tools and techniquesp and techniques
We base our guiding i i l Th V l
An organizationh ti l
Practical tools and t h i th t hprinciples on The Volvo
Way including our corporate Values, our Culture, our Leadership—
where we continuously improve quality, delivery and productivity, in everything we do
techniques that when applied in each specific area drive operational excellenceCulture, our Leadership
how we go from Word To Action.
everything we do excellence
VPS Academy2009-09-08VPS-1214, Issue 3
Slide 10
VPS is one of the key parts to achieve our strategic objective of operational excellence but also a way toobjective of operational excellence, but also a way to
create an attractive workplace
Increase productivity and cost efficiency:C t d i l t th V l P d ti S t• Create and implement the Volvo Production System
• Increase productivity by 5%• Reduce cost of poor quality by 25% by end of 2009
Create a competitive customer oriented culture:• Common language with shared terminology• Avoidance of duplication of efforts
C l ti• Common solutions• Ability to find and benchmark against best practice
VPS Academy2009-09-08VPS-1214, Issue 3
Slide 11
Volvo Production System - Principles
Teamwork means creating a sound organization where all employees are involved in the improvement process contributing to achievement of our goals and strategic objectives. This isimprovement process contributing to achievement of our goals and strategic objectives. This is where everyone’s experience, knowledge and creativity is put in play.
Process Stability means reducing all kinds of variability and waste in our processes to make them predictable and efficient. Deep knowledge and understanding of the operation is essential forpredictable and efficient. Deep knowledge and understanding of the operation is essential for succeeding as we strive for process stability.
Built-in Quality means doing things right the first time, detecting and correcting problems at the point of origin. We move towards zero-defects by having the mindset of not accepting bad quality, p g y g p g q y,being proactive, and eliminating root causes.
Just-in-Time means producing and conveying what is needed, when it is needed, in the amount needed in the shortest possible lead-time. The mainstays of the principle are minimal inventory, p y p p ycustomer demand and one-piece flow.
Continuous Improvement is the driving force behind our efforts and requires a systematic and long-term approach. Generation and implementation of improvement ideas is essential. It is based on standardisation and a clear vision of the future desired state.
VPS Academy2009-09-08VPS-1214, Issue 3
Slide 12
VPS-OtD (Order To Delivery) Modules
Operational development •Design of improvement organization •Problem solving methodology •Value stream mapping •a ue st ea app g
4
3
5Quality cultureZero defectsQuality assurance
Flexible manpowerPull systems
Takt time
4
2
3
• Standarized workVisualization •
2
1
Quality assuranceProduct and processquality planning
Continous flow processingMaterial supply
2
1
Standarized work• Production leveling
• Maintenance systems• 5S
Cross functional work •Goal oriented teams •Organizational design •
Leadership Safety & Health Environmental care• • •
VPS Academy2009-09-08VPS-1214, Issue 3
Slide 13
VPS Structure in EskilstunaM t T
VPS CouncilEskilstuna
Management Team
VPS principer (core team)
M. Karebo M. Pettersson M. WiströmK. Björklund
F. Berntsson
I. Obrovac
Principle-team
L. Da Ros P. Andersson
T. Andersson*
M. Bengtsson D. Adolfsson* J. A. Ahmedi
Key initiatives Key initiatives Key initiatives Key initiatives Key initiatives Key initiatives Key initiatives
L. Ståhlberg Magnusson
Team Work
Process Stability
Continuous Improvement
Just In Time
Built In Quality
The Volvo Way
Customer
Key initiatives________________________________
Key initiatives________________________________
Key initiatives________________________________
Key initiatives________________________________
Key initiatives________________________________
Key initiatives________________________________
Key initiatives________________________________
Value Stream - Lågvolymflöde
Value Stream - Axelflöde
Value Stream - Transmissionsflöde
M. Bengtsson (L. Da Ros)
A. Ahmedi (L. Ståhlberg)
VPS Academy2009-09-08VPS-1214, Issue 3
Slide 14
Value Stream Lågvolymflöde * OD
Same model from different viewpointsProduct DevelopmentProduct Development
The purpose of VPS-PD is to create a product development environment that consistently and efficiently developsconsistently and efficiently develops excellent products; products which are win-win solutions for all stakeholders.
VPS Academy2009-09-08VPS-1214, Issue 3
Slide 15
VPS-PD Modules
Operational development •Problem solving methodologies •
Value centric approachProblem solving methodologies •Innovation management •
Product assurance practices (VRES) •
Product launch assurance •
Quality culture •• Concurrent engineering
• Front loaded PD
• Project assurance practices
Extended value chain • • Pull systems
• Resource flexibility
• Standard way of workingCross-functional work •
Vi li ti dg
• Product standardization and modularization
• Process simplicity
• Project portfolio
Visualization and • communicationGoal-oriented teams •Organizational design •
• • •Leadership Safety & health Environmental care
• Project portfolio management
• Competence management
VPS Academy2009-09-08VPS-1214, Issue 3
Slide 16
The VPS Academy’s central function is to collect d h b t ti i thand share best practices in the group
There are five main roles and areas of responsibility within VPS:
1. VPS Academy owns the model and maintains knowledge and documentation
5Offer support 2
needed for its areas of responsibility, e.g. Module Reference Material and Good Examples
1Own and develop
Assess level
2. Assess the performance level at all plants in the Volvo group
3. Recommend improvement opportunities to
Own and develop VPS knowledge and
documentation
reach the next performance level
4. Suggest how to drive improvements in the respective plants
4Suggest how
to do it3
Recommend improvement opportunities
5. Offer support for training and implementation
opportunities
VPS Academy2009-09-08VPS-1214, Issue 3
Slide 17
VPS Assessment
Follow-up on data analysisCreate themes develop conclusion and final roadmapCreate themes, develop conclusion and final roadmap
Initial presentation to plant manager
1. Overview of the plant
0,0
1,0
2,0
3,0
4,0
5,01. The Volvo Way
2. Team workContinuous improvement
O e e o t e p a tperformance per area, highlighting strong areas and areas for improvement
3. Process stability
4. Just-in-time
5. Built-in quality
Build up small scale organization
and scale upsupport
2007
2008 Š
A d � M k b t ti � C ti t d t
Build up small scale organization
and scale upsupport
2007
2008 Š
A d � M k b t ti � C ti t d t
2. Road Map for short, medium/long term improvement opportunities
Academyfocus
� Make best-practiceknowledge available to organization
� Recruit small dedicated teams with experienced practitioners
� Start conducting assessments
� Continue to conductassessments
� Complete library of best-practice knowledge
� Regularly update with feedback from organization
� Expanded scope
Academyfocus
� Make best-practiceknowledge available to organization
� Recruit small dedicated teams with experienced practitioners
� Start conducting assessments
� Continue to conductassessments
� Complete library of best-practice knowledge
� Regularly update with feedback from organization
� Expanded scope
VPS Academy2009-09-08VPS-1214, Issue 3
Slide 18
Final presentation
Strength and recommendations
Road Map
Good examples
VPS Academy2009-09-08VPS-1214, Issue 3
Slide 19
The VPS Academy collects and shares good examples across the groupgood examples across the group
VPS Academy2009-09-08VPS-1214, Issue 3
Slide 20
Information about VPS and Good Examples
VPS Academy2009-09-08VPS-1214, Issue 3
Slide 21
”It is common sense to take a method and try it. If it fails, admit it frankly and try another. But above all, try something.”
--Franklin Roosevelt
VPS Academy2009-09-08VPS-1214, Issue 3
Slide 22
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