Lean Supply Chain lecture at Lean summit - Yves Merel on 30 march 2010

FCI Lean Supply Chain

Yves Merel, FCI Group Lean Director

Lean Summit, March 30th 2010

FCI background and profile

Creation in 1988 by Framatome for diversification outside

nuclear field

20 acquisitions and 20 years later, FCI is one of the largest

connector manufacturers

November 3, 2005: FCI is acquired by Bain Capital, a private

investment fund

2FCI Lean Supply Chain, Yves Merel, Lean Summit 30th March 2010

With operations in 30 countries and a turnover of

935 million Euros in 2009, FCI is a leading connector

manufacturer

Its 12,000 employees are committed to providing their

customers with high-quality and innovative products for a wide

range of consumer and industrial applications

A variety of solutions and products

Electronic connectors


Microconnections connectors

Motorized Vehicle connectors

24 manufacturing sites and 14 R&D centers

Europe7 manufacturing sites

1 Corporate Research Center6 R&D centers


Americas5 manufacturing sites

2 R&D centers

Asia12 manufacturing sites

6 R&D centers

Lean is not about reducing costs in production or improving cash

It is about:

Customer Satisfaction:

Quality

Service to Customer

People Empowerment

Lean initiative

First step targets:(from Aug.08 to Dec.10)

Cut by HALF the Customer Complaints

Cut by HALF the Missed Deliveries

In 18 months

- 23%

- 32%


People Empowerment

Safety

Cost and Cash improvement

Supply Chain

Labor Efficiency

Capital Expenditure

Cut by THREE QUARTERS the Accidents

Cut by HALF the Flow Time

Cut by a QUARTER the Labour Cost

Cut by 30% the Capex

- 69%

- 29%

- 9 %

- 15%

Lean tools for continuous improvement

Safety

EmpowermentQuality

Service

Supply Chain

Efficiency

Capex

Visual control5S

Suggestions

Red Bin

Go 1st Part

Truck Prep Area

Shop Stock

Supermarket

Production Analysis Board

Production Film

Management Safety Barometer First Defect Stop TPA Review Standardized Work


Management routines

Flash Meeting Red Bin Review Leveled MPS S&Op meeting

Problem solving workshops

Accident 8D

Manager A3

Complaint 8D

QRQC

Quality Wall

SMED

Milk Run

Small Train

Hoshin

TPM

Cardboard Engineering

KPI challengeAccidents

Absenteeism

Quality Complaints

MPM

Flow Time

Throughput / Wages

Capex / Sales

Just In Time principle

Typical FCI factory today

StampSupplier Plate Assemble Customer

Stock Stock

Shipping

warehouse

Receiving

warehouse

1 change

per week

1 truck

per week

1 change

per week

1 change

per week

1 truck

per week25 days 6 days 4 days 8 days

Flow Time 43 days �� Difficult to forecast �� Useless inventories & shortages�� 25% Late Delivery


�� Easy to forecast �� No emergency to manage �� Full On Time Delivery

Typical FCI factory in 2013

StampSupplier Plate Assemble Customer

Shop Stock Shop Stock Truck PrepSupermarket

1 change

per day

1 truck

per day

1 change

per day

1 change

per day

1 truck

per day

Shop Stock

Flow Time 10 days

3 days 1 day 1 day 2 days3 days

To better deliver on time, reduce the Flow Time

Just In Time and Flexibility


ELX Division Service & Supply Chain evolutionELX Service

0

100000

200000

300000

400000

500000

600000

700000

800000

Mar

-08

May

-08

Jul-0

8Sep

-08

Nov

-08

Jan-

09M

ar-0

9M

ay-0

9Ju

l-09

Sep-0

9N

ov-0

9Ja

n-10

Mar

-10

May

-10

Jul-1

0Sep

-10

Nov

-10

MP

M

ELX actual ELX target ELX 6MRA20

25

30

35

40

Flo

w T

ime

in d

ay

s


ELX Supply Chain

0

10

20

30

40

50

60

70

Mar

-08

May

-08

Jul-0

8Sep

-08

Nov

-08

Jan-

09M

ar-0

9M

ay-0

9Ju

l-09

Sep-0

9N

ov-0

9Ja

n-10

Mar

-10

May

-10

Jul-1

0Sep

-10

Nov

-10

Pla

nt

Flo

w T

ime

in

da

ys

ELX actual ELX target ELX 6MRA

0

5

10

15

MAT WIP FG DC

Flo

w T

ime

in d

ay

s

Starting po int 6M RA actual This month 2010 end Target

Lean Supply Chain methodology

Visual storage

Reduce transportation batches


Reduce production batches

Level pull scheduling

Components Supermarket for Visual ReOrder

Dedicated location per reference with number of boxes

min, max, average consumption, and delivery frequency

Check inventory


Ergonomics if stored from 50 cm to 150 cm high and

boxes > 12 kgFIFO flow racks

Check inventory before sending each procurement order to supplier

Goals: FIFO, ergonomics, no shelves, no MfgPro back-flush

Shop Stock and Production Kanban

Empty boxes track

Production kanban in every box

Close to the

Batch Building

Box

Launcher with kanban cards


Filled boxes FIFO tracks

Close to the producing cell

Goals: Flow rack at cells, H&MR kanban, no WIP in warehouse

Truck Prep Areas for missed shipment alert

Dedicated location

with truck name

50 cm aisle

in between


Totem with loading

list, shipment time,

and red/green status

Marked area big

enough to store

usual shipment

Goals: All set -24 hours, daily review real problem, no shelves


Visual storage





Suppliers daily Milk Run


One truck going daily

to several suppliers in

the same route

Cheaper even on long

distance if several

suppliers can daily

load fully a truck

Goals: Daily delivery, MOQ at 1 packing unit, lead time at 1 day

Plants Receiving Frequency for Mat Flow Time



Visual storage





Single Minute Exchange Die goal

SMED is not to increase OEE by decreasing c/o Time …

… but it is to decrease c/o Time to give room

to an increase of the frequency of c/o !

SM

ED

WO

RK

SH

OP

BE

NE

FIT

S


C/OPRODUCTION

time

SM

ED

WO

RK

SH

OP

BE

NE

FIT

S

Goals: 10% OEE for changeovers, produce every part every day

Plants EPEI for WIP Flow Time



Visual storage





Leveling Board to pace the flow

24 hours scaleOne reference

per board lineLevelling kanban cards

return after picking

Leveled Master

Production Schedule

Escalading

procedure in case

of shortageShortage

Pareto


Kaizen Board for

improvement actions

Low Runner

Make To Order

Goals: Visual realistic schedule, alert in advance, visual make to order

ELX Distribution Centers

EL

X P

lan

ts a

vera

ge


Plants Indirect Delivery for FG Stability


Group Service evolution (-32%)

150000

200000

250000

300000

350000

400000

MP

M


0

50000

100000

150000

Mar

-08

May

-08

Jul-0

8Sep

-08

Nov

-08

Jan-

09M

ar-0

9M

ay-0

9Ju

l-09

Sep-0

9N

ov-0

9Ja

n-10

Mar

-10

May

-10

Jul-1

0Sep

-10

Nov

-10

Group actual Group target Group 6MRA

Business

Lean Supply Chain lecture at Lean summit - Yves Merel on 30 march 2010