02 wcm investor day

Lingotto - November 8 & 9, 2006

Stefan Ketter

World Class Manufacturing

2Lingotto - November 8 & 9, 2006

WCM Focus

All Employees

Waste and Losses

Standards and Methods


Structure/Objectives

People involvement, value creation, customer satisfactionValues

Co

stD

ep

loym

en

t

WorkplaceOrganization

Quality Maintenance Logistic

Focus ProductivityQuality

ImprovementTechnicalEfficiency

ServiceLevel

Method& std.

Total Industrial Engineering

Total Quality Control

Total Productive Maintenance

Just in Time

Target zero waste

zero defects

zero breakdowns

zero inventory


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


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

WCM Principles


Main Actual Activities

Investments & Fix Plants

Time

Environment / Ergonomy

Training / Leadership / Organisation

Maintenance Process

Cost Deployment

Labour efficiency / Capacity Utilization

Quality Process Improvement

Logistic Process

2006E 2007E2005A

WCM Basics / Safety


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%


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%


Quality: Electric Check Defects – Grande Punto

Sep-

05

Oct

-05

Nov

-05

Dec

-05

Jan-

06

Feb-

06

Mar

-06

Apr

-06

May

-06

Jun-

06

lug

'06

Aug

-06

Sep-

06

Oct

-'06E

%

- 50%

Model Area: Melfi


Model Area: Melfi

Productivity: Hours per Vehicle – Grande Punto

-12%

in 8 months


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%*


Labour Productivity Target (Italy/Poland)

Actual 2010E

OperationOperation

Non Value Added• Logistic layout• Time Optimization

- 50%

Technical efficiency

Waste/Rework

Line Balancing

- 30%100%

Losses Losses

Ran

ge

Range


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

audi

t res

ult %

2006E 2007E 2008E 2009E 2010E

Model areas

Knowledgecreation

Consolidation /AutonomousImprovement

gold

silv

erbro

nzeHorizontal

expansion

EU P

lant

s

All

Plan

ts

All

Plan

ts

Saving: > €500mn

CompetitiveLevel


WCM – Extension towards Suppliers

World Class Manufacturing integration/extension throughout Supplier Process Engineers

SUPPLIER

Cost

€

Quality

Q

Maintenance

M

Logistic

L


WCM – A Corporative Approach

WCM

Implementation,

Auditing and

Best Practice Sharing

02 wcm investor day

Documents