The Haldex WayThe Haldex Way - MDHzoomin.idt.mdh.se/.../LeanProductionHaldexWay2009.pdf · to objectively demonstrate the implementation of the Haldex Way. • Each challenge is meant

The Haldex WayThe Haldex Way

Monica BellgrangDirector Production Technology and Systems

Adj Prof at Mälardalen University

Innovative Vehicle Technology

MissionMission

H ld ff i t d i ti hi l t h l l ti iHaldex offers proprietary and innovative vehicle technology solutions in certain fast growing niches within the global vehicle industry, that improve:

Safety The Environment Vehicle DynamicsSafety The Environment Vehicle Dynamics

Innovative Vehicle Technology 2Bellgran Haldex Way Oct 2009

Customers and ProductsCustomers and Products

Heavy vehicles

Industrial vehicles Engines Cars

Brake-systems

Hydraulicsystems

AWDsystemsy y y


Examples of products

Global customer baseGlobal customer base


Haldex in 2008

- Net sales 8.4 BSEK (~ $1,000 m)- Production in North America, South America, Europe and AsiaProduction in North America, South America, Europe and Asia

38% 53% Corporate Head QuartersSt kh l38%

6%

Stockholm

3%

- Production Facility


- Sales Office

AgendaAgenda

- Today’s industrial setting- Lean production and Toyota’s success- Haldex applying Lean

What is required to “take lead”?- What is required to take lead ?- How to integrate product and production system- What do we need to do today – and tomorrow?a do e eed o do oday a d o o o

The Challenge:

To go beyond Leanto reach a world class production level


Market Requirements and Contextual Conditionsq

Global competition drives outsourcing closer to the company’s core businesscloser to the company’s core businessConsolidation, large & few companiesGlobal footprint Short product life cyclesMass customization, flexible customer centered productionpCost focusIncreased international ownership reduces local/regional industrial effortreduces local/regional industrial effortContinuous fight for investments

National & regional preconditions for industrial growth are at focus: Taxes, cost level, infrastructure, competence,

h lit t


research quality etc

Conditions for Swedish Industryy

Increasing the content of knowledge in our products and production systems to stay global competitive

Decreasing raw material content

Increasing content of knowledge

Product content – Towards functional products

stay global competitive requires industrial R&D and govermental financed research

content

• The product is a function solving the customer’s problem• The supplying company has unique knowledge• Low requirements of customer product knowledge

R&D b l t l it l• R&D absolutely vital

R&DProduction system content

Increasing content of knowledge Standard

R&D

Increasing content of knowledge solutions


Outsourcing Closer to the CoreOutsourcing – Closer to the Core

F b iFocus on core businessOutsourcing as a means for rationalization

Reception, security etc

2005: changes in attitude towards outsourcing

IS/IT, maintenance etc

Parts manufacturing

Sub and final assemblyWHAT RISKS ARE THERE BY OUTSOURCING CLOSE CORE?

IndustrializationProduct development

Sub- and final assembly

CORE?


Increasing Demands on Operation’s Performanceg p- Response to a dynamic industrial context

Cost

DependabilitySpeed

Market Requirements

Operation’sPerformanceOperation’sPerformance

FlexibilityQuality

Requirements


FlexibilityQualityRef: Slack et al (2000)

Measuring Operation’s Performanceg p

KEY PERFORMANCE INDEX:KEY PERFORMANCE INDEX:KPI’s

S - SecurityQ - QualityQ QualityD/L – DeliveryE - EconomyE EconomyH – Human Resources


What do Manufacturing companies doWhat do Manufacturing companies do in order to achieve operational

excellence and stay competitive?


”The cars that Toyota builds are not substantially different from those made

by other automobile manufacturers.by other automobile manufacturers. What is different is the efficiency of the

Toyota organizationToyota organization.

Ref: Satoshi Hino, Inside the Mind of Toyota (2006)


Why is Toyota the MostWhy is Toyota the Most Profitable Company

?in the World?


T t P th G d ThiToyota Preserves the Good Things…

What we would like to know:

How can Toyota consistently t l ti lt

Some answers:

Parts are meaningful only in the t t f h l C igenerate superlative results

decade after decade?

Do they have an embedded mecanism for permanence?

context of a whole. Companies need to adapt the system in its entirety.

The infrastructure of Toyota is p

Why haven’t other companies succeeded in the same way, despite their implementation of the TPS/Lean principles?

ythe answer to the success, i.e. what is invisible

Succession of leaders, preserving their leadershipthe TPS/Lean principles? preserving their leadership principles.

Documentation of standards, creating a foundation for


gcontinuous improvements.


e Sa os o, s de e d o oyo a ( 006)

Th T t C M d lThe Toyota Company Model

Product Power Brand Power

SuperstructureResultant product quality, services and brand power

System Production Functions

Brand Power

On-site work such as product planning, Design & development, manufacturing and sales

System Production Functions

System Management Functions

Infrastructure

Managerial function such as quality, cost, finance and information

Paradigms

Infrastructure

Shared attitudes concerning management, work and people

Genes & DNAUnique company ”genes” transmitted by ”DNA”



The Importance of Standards and DocumentationThe Importance of Standards and Documentation

Rather than focusing on individuals with extraordinary technical skills, g yKiichiro Toyoda emphasized creating teams whose average skill level was high. His primary tool for accomplishing this was the formulation of standard operations.

Standards = genes, Documentation = DNA (medium for genes)

Managerial perspectives shift as times change and documented proceduresManagerial perspectives shift as times change, and documented procedures are needed to keep those perspectives from disappearing

Documented procedures means standard ways of working (best method p y g (known at a specific time)

Creating a culture of documentation (a system for enduring growth that does not depend on individuals)

Fundamental condition for sustaining stable growth!



Preserved Toyota Principles of Former Toyota LeadersLeaders

”Fabrication is the foundation on which civilization is created”. Eiji Toyoda

”Always stay ahead of the times through research and creativity”. y y g ySakichi Toyoda, the founder (Big company disease means the loss of creativity)

”Don’t talk about true value without conducting exhaustive market trials”Don t talk about true value without conducting exhaustive market trials . Sakichi Toyoda

”Study what customers want and reflect that in your products”. Kiichiro Toyoda Sakichi’s son and founder of the Toyota Motor CompanyToyoda, Sakichi’s son and founder of the Toyota Motor Company

”Improve the product by auditing the production system, as well as the product itself”. Kiichiro Toyoda

”As soon as processes are stable, reduce inventories between process steps. This will bring new problems to the surface”. Taiichi Ohno



Toyota’s Evalutionary Capability – it’s all about ManagementManagement…

Sakichi and Kiichiro Toyoda shared certain characteristics; extraordinary drive, an uncommon pioneering spirit and stubborn perseverance. However, so does most company founders. What is the difference? Why do the spirit continues from one generation to another?generation to another?

Wisdom are added to the successors instead of exchanged.

Elements of Toyota’s evolutionary capability: y y y

A pattern of thinking that links every trial to competitive strength

The tenacity to bring ideas to fruition even in spite of initial setbacks

A gritty willingness to use whatever means necessary to win

The successful maintenance of systems of formal rules

Succession practices that ensure policy continuitySuccession practices that ensure policy continuity

Mechanisms for emphasizing the continuity of Toyota management thinking among employees



E l f i i l within The Toyota WayExamples of principles within The Toyota Way

The right process: Continuous process flow to bring problems to the surfacep g pPull to avoid overproductionLevel out workloadCulture of stopping to fix problems right the first timeCulture of stopping to fix problems, right the first timeStandardized tasks foundation for kaizenVisual control, do not hide problemsReliable and thoroughly tested technology that serves your people and processes


HaldexWay – our way to implement Lean thinking


Vision and ValuesVision and Values

Vi iVisionOur vision is that Haldex will be the global automotive industry’s first choice as a long-term business partner

ValuesCustomer first

Haldex employees base their decisions and actions on the customer’s best interests, well awareHaldex employees base their decisions and actions on the customer s best interests, well aware that the added value that we create for the customer also creates added value for Haldex, its employees and its owners

Respect for the individual Haldex’s sucess depends on individuals taking personal responsibility and working togetherHaldex s sucess depends on individuals taking personal responsibility and working together effectively. We promote this value by showing one another respect through open communication, by encouraging initiative, cooperation, support, professional growth and advancement, by providing performance-based compensation and by taking active responsibility

Elimination of wasteElimination of wasteHaldex’s operations entail a responsibility to manage all resources and eliminate waste in the most efficient and profitable way possible. Only in this way can we create added value for all of our interest groups, customers, shareholders, employees and society.


Haldex WayHaldex Way

Continuous ImprovementM

e

tion

oduc

tion

Priority

Teamwork

Rig

ht fr

om

Con

sum

pttro

lled

ProPriority

• Safety/Environment• Quality• Delivery

Building Blocks - StructureNormal Situation – Standardized working Methods

R CC

ontDelivery

• Cost

g

Core Values - FoundationsCustomer First Respect for the Individual Elimination of Waste


Doing it the Halde WaDoing it the Haldex Way

Haldex Way is our management and process improvement system aiming at:

• Increasing productivity

• Operational excellence throughout the entire value chain

• World class production, supported by Leadership Excellence

• A culture of continuous improvements

• Built on the concepts of Lean Manufacturing• Built on the concepts of Lean Manufacturing

Haldex Way is driven by management and supported by Haldex WayHaldex Way is driven by management and supported by Haldex Way structures, tools and resources.


Haldex WayHaldex Way - a certification structure drives improvementPlatinum

KPI’s on Gold

SilverKPI’s on gold level

platinum level

KPI’s on silver level

KPI’s on bronze level

Bronze

Copper bronze levelKPI’s oncopper level

Copper

• Haldex Way is built on a certification structure from “Copper” to “Platinum”.• Requirements set on targeted KPI’s ( e g delivery performance and inventory)Requirements set on targeted KPI s ( e.g. delivery performance and inventory) • Requirements set on deployed tools and procedures e.g. Six Sigma, Value

Stream Mapping, to be certified to various levels. During 2007 our first units on “Silver” level


• During 2007 our first units on Silver level.

Tier ChallengesTier Challenges

Challengesg• The tier challenges are a set of requirements that must be met at the local level

to objectively demonstrate the implementation of the Haldex Way.• Each challenge is meant to be objective.• The series of challenges are a road map to the Haldex Way journeyThe series of challenges are a road map to the Haldex Way journey.• The tier challenge measures education, tool usage and results.

The Tier levelst• Copper introduces the structure and 1st use of lean tools.

• Bronze introduces more tools and looks for results.• Silver advanced tools are in use and significant results are evident.• Gold the BU or division is being managed as a value streamGold the BU or division is being managed as a value stream.• Platinum world class and beyond.

The Gold Tier will shift from a site focus to the enterprise level.Thi Ti ill f h i l i h h i f ill i hiThis Tier will focus on the entire value stream with the primary focus still within Haldex.Important enabling functions are seemingly left out of the site based Tier Challenges such as sales, finance, R&D...Over 60 enabling process have been id tifi d


identified.

The Gap AnalysisThe Gap Analysis

D h B dDash BoardQuestion format following the Core ValuesVisualAuto scoring”Paretoed”Summary ofSummary of results with action item list..\delete\Copy of tools for history presentation\Admin gap xltpresentation\Admin gap.xlt


The tool boThe tool box

6 Sigma6 Sigma

CrossFunctional

Team


History of Haldex Way

RespectFor the

IndividualCustomer

First

EliminationOf

Waste

2000 2002 2003 2004 2005 2006 2007 2008 2009 2010

The Haldex Way Implementation Timeline

2000 2002 2003 2004 2005 2006 2007 2008 2009 20101ST ISSUE OF

The Haldex Way

Booklet

Gap AnalysisAdopted

Site GapAnalysis begins

Change AgentTeam Chosen

Admin. GapDeveloped &

Adopted

Tier ModelDeveloped &1st ISSUE Adopted

Tier ChallengeDeveloped &

Adopted

“Copper Challenge”By Site BeginsSite KPI’s

Developed

“COPPER”Challenge Cont’

“Bronze Challenge”Begins

“Bronze”Challenge Cont’

“Silver Challenge”

Begins

“Silver”Challenge Cont’

“Gold Challenge”Begins

“Gold”Challenge

Cont’“Platinum Challenge”

Begins

“Platinum”Challenge

Cont’Site VisitsPlanning

AND beyond

pAnd Beyond

Innovative Vehicle Technology 29Bellgran Haldex Way Oct 2009June

June 13, 2005

Getting The Halde Wa Started 2000Getting The Haldex Way Started 2000

I l d f tIslands of momentum• In 2000 Haldex published and distributed the 1st edition of the Haldex

Way booklet.• This in itself created little change in behavior.• 5% (estimated) of plants were attempting to move forward with the

Haldex Way in 2001y

In 2001 a Masters level student was given the task to create a tool that could measure the progress of the Haldex Waycould measure the progress of the Haldex Way.

• Determined the activity level and the gap between local practices and world class practices.


Deplo ment of Change Agent Team 2002Deployment of Change Agent Team 2002

Change Agent Team (ChAT) creation• 4 person team from 3 countries and 3 different divisions.4 person team from 3 countries and 3 different divisions.• 1st meeting in Stockholm January 2002

Th t d t l t k t h f ilit ld idThe team and tool was taken to each facility worldwide• Showed commitment from Haldex• Allowed the gathering of best practice

The initial efforts and deployment was at the cell or natural work teams on the varying shop floorson the varying shop floors.


It took offIt took off ….

True implementation beganCohesive ChAT teamAccurate and in-depth view of Haldex with respect to the deployment of the Haldex WayHaldex Way.World wide recognition of the dedication to implementing the Haldex Way.The idea that this was a flavor of the month and would go away began to diminish.

fFocus remained on shop floor and site Global management meeting

Hosted by the ChATTypical participants are plant managersTypical participants are plant managers.CommunicateAsk for action and commitmentAddress concernsShShare successesAnnual meetingMember of Executive Committee attends to show support and deliver message.


g

ReflectionsReflections

Ch ll d i th jChallenges during the journeyTime, resources, organisationMindset CommunicationStandards ImplementationImplementation

Goals and means Management and process improvement systemWhat is unique? Relation to the production strategy


Challenge

Production Knowledge on Lean is GlobalProduction Knowledge on Lean is Global

• The X production system.• We are mainstreaming

production. Where is the competitive edge?

• Lean is operations-driven.

Issues: • More production development p p

focus needed in Lean production

• Developing structures and p gtools - or new production technology?

• Kaizen and Kaikaku


The Next Production System Paradigm?

3 The X Production System 3 The X Production System Taking the Lead

World Class

Taking the Lead

World Class

The third paradigm

?CompetitivenessCompetitiveness

H l iH l i

BionicBionicAgileAgile

?

2 The Toyota Production System2 The Toyota Production System

The second paradigmHolonicHolonic Uddevalla Uddevalla

Kiirchi och Eijo Toyoda

2 The Toyota Production System2 The Toyota Production System

Toyota Motor Corp.

11The first paradigm

1 The Ford Production System1 The Ford Production System


S di h d ti titiSwedish production – our competitive means

What challenges do we face right now?

●Lean implementation challenges

What do Sweden compete with?

Overall: Political stability, infrastructure, weather stabile region,

●Lean transformation – but with the Swedish accent (see e.g. MERA/SwePS)

●Identify and utilize our national and company specific strengths

infrastructure, weather stabile region, high average educational level…

Industrial structures – accumulated knowledge and experience

S i l l f h i●A NEW OUTSOURCING WAVE?

●Need for flexible working schedules and appointments (blue/white colors)

Strong national value of chain across industries (customers – suppliers in Sweden)

Non-hierachical organizations●Need for Union and HR involvement

●Create an innovative climate to facilitate stretched goals

●Sense of crisis and sense of urgency

Advanced production systems

Independent employees, high co-operation abilities

●Sense of crisis and sense of urgency relative the global competition perspective

Flexibility

Customer-adapted products

Ref: IVA (2006) – process industry


e ( 006) p ocess dus y

The Swedish Production SystemThe Swedish Production System


- TOYOTA ALWAYS TALK ABOUT SENSE OF CRISIS DRIVING THE MOTIVATION FOR DEVELOPMENT AND CONTINUOUS IMPROVEMENT.

- DO WE HAVE A SENSE OF CRISIS IN SWEDEN?

DOES THE LEVEL OF CRISIS (AND URGENCY) VARY- DOES THE LEVEL OF CRISIS (AND URGENCY) VARY AMONG COMPANIES?

Crisis = Danger + Opportunity



Focus on production development i d t t f ll !Focus on production development i d t t f ll !in order to compete successfully!in order to compete successfully!


The Built-in Conflict Between Development and O tiOperations

The Production SystemThe Production System

Development Operations ConflictTactTact

Many problems and much

Development Output: Operations Output:

waste in production are created in earlier phases

Output: Modified or new production systemPriority No.2

Output: ProductsShows the result of the development phaseAlways Priority No.1


Challenge

Competing on time to volumeCompeting on time to volume

TTT TTM TTCTTV TTT = Time To Technology (time for conceptual development)

TTM = Time To Market (time for introducing new product

Build the factory…generations or variants)

TTV = Time To Volume (time for ramp-up to

Industrialization…full volume)

TTC= Time to Customer (order processing time)

Run the factory……Time to Cash


Challenge

Efficient Industrialization for short TTVEfficient Industrialization for short TTV

Towards short TTV:

- Early involvement

- Modular solutionsModular solutions

- Off-line set-ups

- Simplicity

R b t l ti

TimePre-production Ramp-up Production

TimePre-production Ramp-up Production

- Robust solutions

- On-the-shelf solutions

U d t d j t

Goal: to reduce time for running in and To reduce running-in problems

Start of production

Pre production Ramp up Production

Production goal

Product - and

Start of production

Pre production Ramp up Production

Production goal

Product - and

- Updated project gate models with production-related activities (inputs-

t t )g p

Running-in of productionRateProduction problem

Running-in of productionRateProduction problem outputs)

Innovative Vehicle Technology 42Bellgran Haldex Way Oct 2009Ref. Bellgran and Säfsten (2005) modified from Johansson and Karlsson, 1998

Lean product development systemLean product development system

People:5. Develop a chief engineer system to integrate

development from start to finish. Tools & technology

Lean P d t

6. Organize to balance functional expertise and cross-functional integration.

7. Develop towering technical comptence in all engineers.

8. Fully integrate suppliers into the product development system

11. Adapt technology to fit your people and process.

12. Align your organization through simple, visual communication.

13. Use powerful tools for standardization and i ti l l iProduct

DevelopmentSystem

development system.9. Build in learning and continuous

improvement.10.Build a culture to support excellence and

relentless improvement.

organizational learning.

ProcessProcess:• Establish customer-defined value to separate

value-added from waste.• Front load the product development process• Front-load the product development process

to explore thoroughly alternative solutions while there is maximum design space.

• Create a leveled product development process flow.

• Utilize rigorous standardization to reduce


Utilize rigorous standardization to reduce variation, and create flexibility and predictable outcomes.

Ref. Morgan & Liker (2006): The Toyota product development system reprinted with changes from Liker (2004)

Regard the Production System in the S W h P dSame Way as the Product

Systems engineering should include alsoSystems engineering should include also requirement’s specification and verification of the production system - Not only of the product!Specification of requirements of the productionSpecification of requirements of the production system are often neglected or underestimated

Requirements Specification

Requirements Verification

Requirements Specification Requirements

Product ProductionSystem

Verification

System


Product designers knowledge of h d ithe production system

D fi j tIncreased complexityProductDefine project

complexity Product complexity

complexityProduct

new MOSTCOMPLEX

drives production system complexityReducing complexity, modified

e.g.: Platforms

ModularizationStandardization

existing

ProductionStandardization

Communality Ref: Henrik Almgren (1999)

newexisting modifiedProduction system

Increase Product designers knowledge of the production

t

How proactive is actually the production technology function?Shared responsibility


systemOn-the-shelf solutions

Shared responsibility…

The Industrialization Process – the Key to Successful I t d ti d d ti f N P d tIntroduction and production of New Products

Common

Industrialization- Introduce new products in production

FOCUS ON PRODUCT’S STATUS IN THE INDUSTRIALIZATION PROCESSProduct PreparationMaterial Tools, fixtures

Commonposition today:

p pPrototypesPre-series

Investments

DESIGN OF THE PRODUCTION SYSTEM IN PARALLELWITH THE PREPARATION FOR PARTS INTRODUCTION

Required positiontomorrow: Product Preparationtomorrow:

Industrialization- Introduce new products in production

Product PreparationMaterial Tools, fixturesPrototypesPre-series

Production system change/design to make Industrialization possible

Machines & equipmentFlow, LayoutSupply systemWorkplace designW k i t

Anotherpackaging


Work environment, org.Investments

Challenge

Developing Production EngineeringDeveloping Production Engineering

Production

• Production management –impact on production R&DFi fi htiProduction • Fire-fighting

• Outsourcing risk

ORGANISATIONALIssues: • To upgrade the Production

Production Development

Production Engineering Balancing short-term

and long-term production improvements

ORGANISATIONAL DYNAMICS

• To upgrade the Production Engineering function

• Organizational considerations – reporting structureproduction improvements reporting structure

• To put resources on Advance Engineering (R&D) Portfolio in production development


production development

The Production Engineering FunctionThe Production Engineering Function

The 4 tasks:

Industrialization of New products1 4

Investments: • Replacement• Capacity• Product related

Support & improvementsIn Existing production2

Product related

Development of new Production systems3

Owner of the production principles


production principles

General requirements on Production EngineeringGeneral requirements on Production Engineering

A proactive approach towards other company functions

Competence and capacity to be able to own and develop the production p p y p pprinciples of each manufacturing company – to be the driver of the production system transformation

Increase the status of the production engineering support functionIncrease the status of the production engineering support function

Make more attractive settings for personal development. Recruit THE BEST!

I l & it h d ti i t i h j t iInvolve & recruit researchers and participate in research projects in areas where we have our company – and production engineering core business


FORD An Incredible Production Story

Ford had employed 10 – 20 talented f

WOLLERINGFLANDERS MARTIN

FORD – An Incredible Production Story

mechanics for production engineering (who still didn’t have developed established ways to do things)

MARTINSORENSEN

Importance of Individuals

Ford allowed extensive experimentation at the production site.

Ford encouraged the group to performFord encouraged the group to perform production experiments and test new methods for measurement, fixture design tools manufacturing industrydesign, tools manufacturing, industry design, quality control and materials planning.

The production engineers used the best from different production approaches and

dd d l ti


added new solutions.

Challenge

Production DevelopmentProduction Development

• Life cycle approach on• Life-cycle approach on the production system helps production Production

Production Improvements

development focusPlanning

Start-upProduction System

Lif C l• We need the same

attention on development of production systems as

Realization

Start-upLife Cycle

of production systems as on development of products more efficient

Design

Recycling pprocesses and tools requiredRef. Wiktorsson (2000)


Challenge - Towards integrated product development

Choosing perspectivePERSPECTIVEPERSPECTIVE

Choosing perspective

Developing a production

Product designProduct design

system along with the product

Involvement of functions in the development project?

Front-loaded project budget Production S t

Production S tFront loaded project budget

Strategic suppliers involved when designing the product

SystemdesignSystemdesign

when designing the product and production system?


Vision for Haldex

Lean and Green Production SystemsLean and Green Production Systems

• Reduce environmental load. Carbon footprint. ISO 14001.

• Benchmark: Toyota opens green cutting-edge factory in Ban Poh 2007 - a selected model plant in Asia for Toyota’s ”Sustainable plant initiative”

Issues:• Design and operation of green

production systems• Supply chain responsibilitySupply chain responsibility• Longer or shorter life cycles?• Complete sustainability focus


Wh t titi f t d h t k ith tWhat competition factors do we have to work with to

make production to a competitive means?

When is the production system contributing to

- winning order?ki business?- making new business?


Is production strategy on the table?Is production strategy on the table?

”Production strategy is ”the missing link in the corporate strategy” (Skinner 1969)strategy (Skinner, 1969)

The importance of production

20122012

p pcontrols strategic decisions

Mi d t f b d d

20112011

20122013 …

20122013 …20092009

Mindset of board and management = sets the strategic thinking

20102010

20112011affects actions


Cont’d Summary: Goal for production development:

High contribution to competitivenessHigh contribution to competitiveness

Goal: F t iti

Stage 4. Externally supportive• The company sees the operations Stage 4. Externally supportive• The company sees the operations

PRODUCTION: PRODUCTION:

Future position

Redefine theIndustry’s

expectations

Give aproductionadvantage Stage 3. Internally supportive

• Operations reached first division in theStage 3. Internally supportive• Operations reached first division in the

function as providing foundation for future competitive success

• Strategy making, creative, proactive

function as providing foundation for future competitive success

• Strategy making, creative, proactive

Be as good

Be clearly the best in

the industry

Adopt

Link strategywith production

Stage 2. External neutralityStart benchmarking similar companies

Stage 2. External neutralityStart benchmarking similar companies

Operations reached first division in the market

• Clearly aspire to be the best• Provides a credible operations strategy

Operations reached first division in the market

• Clearly aspire to be the best• Provides a credible operations strategy

Stop holding theorganization back

ascompetitors

Correct the worst problems

Adoptbest

practice

Stage 1. Internal neutralityStage 1. Internal neutrality

• Start benchmarking similar companies• Operations not holding company back• Adopting best ideas and norms of

performance from rest of industry

• Start benchmarking similar companies• Operations not holding company back• Adopting best ideas and norms of

performance from rest of industry

organization backworst problems

Stage 1 Stage 2 Stage 3 Stage 4

Ability Ability Ability

• Poor level of contribution• Internal detailed control• ’Necessary evil’. Want to be ignored• Not enough resources

• Poor level of contribution• Internal detailed control• ’Necessary evil’. Want to be ignored• Not enough resources


to implement

to be appropriate

to drivestrategy

Ref. Slack et al (2001)

Everything is really aboutEverything is really about individuals and the creation of attractive environment for theattractive environment for the “right” individuals

…so also in the production field!

Mindset and ambition level controls the results


End of presentation. Thank you.

[email protected]

Innovative VehicleVehicle

Technology

Innovative Vehicle Technology

Documents

The Haldex WayThe Haldex Way - MDHzoomin.idt.mdh.se/.../LeanProductionHaldexWay2009.pdf · to objectively demonstrate the implementation of the Haldex Way. • Each challenge is meant