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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
3Lingotto - November 8 & 9, 2006
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
4Lingotto - November 8 & 9, 2006
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
5Lingotto - November 8 & 9, 2006
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
6Lingotto - November 8 & 9, 2006
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
7Lingotto - November 8 & 9, 2006
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%
8Lingotto - November 8 & 9, 2006
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%
9Lingotto - November 8 & 9, 2006
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
10Lingotto - November 8 & 9, 2006
Model Area: Melfi
Productivity: Hours per Vehicle – Grande Punto
-12%
in 8 months
11Lingotto - November 8 & 9, 2006
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%*
12Lingotto - November 8 & 9, 2006
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
13Lingotto - November 8 & 9, 2006
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
14Lingotto - November 8 & 9, 2006
WCM – Extension towards Suppliers
World Class Manufacturing integration/extension throughout Supplier Process Engineers
SUPPLIER
Cost
€
Quality
Q
Maintenance
M
Logistic
L
15Lingotto - November 8 & 9, 2006
WCM – A Corporative Approach
WCM
Implementation,
Auditing and
Best Practice Sharing