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Organizational Knowledge
                     Beyond Lean Approach


                    Carlos Eduardo DaSilva
                         Global Quality Manager
                           Freudenberg-NOK


www.mesa.org 2008   European Plant-to-Enterprise Conference
                    November 3-4, Prague, Czech Republic
The following Strategic Initiatives of
   MESA International are associated with
             this presentation:
                    Lean Manufacturing
             Quality & Regulatory Compliance
                   Real-Time Enterprise




Carlos.DaSilva@fngp.com
Global Business with…

 Global Supply
                                        3,500 employees
                                           $950 million               • Global Key Account
                                                                        Management
                                                                      • Global Lead Center Structure
                                                                      • Global Program
                             n




                                      Co
                         tio




                                         m
                         a
                      ic




                                         m


                                                                        Management
                    un




                                             un
                  m




                                                i
                                               ca
                m




                                                                      • Standardized Production
                                                    tio
             Co




                                                     n



                                                                        Technology
                             Communication                            • Cooperative R&D
                                                                      • Employee Exchange
24,000 employees                                    7,000 employees
    $3.5 billion                                       $2.5 billion




       Carlos.DaSilva@fngp.com
…World Class Processes
 Best Practices – World Class Processes
Lean Systems Initiative: A Cultural Basis for Waste Elimination
Six Sigma: A Scientific Basis for Variation Reduction




    Lean Thinking Case Study
    Aggressive Six Sigma Program
    Supply Chain & Outsourcing Initiatives
    Product Development Best Practices Leader
    Progressive Approach to APQP & Compliance

     Carlos.DaSilva@fngp.com
Transition Time

Craft Production
Decentralized Enterprises
Custom Manufacture and Tools

1800 and early                                             1900                      2000 and beyond
                                      Mass Production
                                      Vertical Hierarchies (Closed System)
                                      Assembly Line

                                                                                     2000 and Beyond
                                                                         Knowledge-Driven Work
                                                                         Network Alliances (Team Based)
                                                                         Information Systems
  Data based in © Joel Cutcher-Gershenfeld, MIT - Lean Thinking - 2004




  Carlos.DaSilva@fngp.com
Information is Everywhere




Carlos.DaSilva@fngp.com
Knowledge is Power




Carlos.DaSilva@fngp.com
Looking to the Future
“Published in 1998 the ground breaking report “The Nation’s CEOs Look to the Future” surveyed more
than 300 CEOs to identify the top five most important trends related to competitive advantage.”

                                         MAJOR TREND                                                                                   SCORE
 Foundation for the Malcolm Baldrige




                                         Globalization -- becoming truly global companies                                               94%
                                         Improving knowledge management and the use of new information technology                       88%
                                         Cost and cycle time reduction                                                                  79%
      National Quality Award




                                         Improving supply chains globally                                                               78%
                                         Manufacturing at multiple locations in many countries                                          76%
                                         Managing the use of more part-time, temporary and contract workers                             71%
                                         Developing new employee relationships based on performance and personal growth, not
                                         tenure and long-term commitment                                                                69%
                                         Improving human resources and the hiring, training, retention &motivation of the talent        68%
                                         Improving execution of company strategic plans                                                 68%
                                         Developing more appropriate strategic plans                                                    64%
                                         Ongoing measurement/analysis of organizational processes                                       60%
                                         Developing a consistent global corporate culture                                               56%
                                         Outsourcing of manufacturing                                                                   55%
                                         Creating learning organizations                                                                52%
                                         Outsourcing of white collar services                                                           41%
                                         Managing employee turnover                                                                     41%
                                         Hiring the best talent in developing countries such as Russia, India, China                    23%
                                         Giving more weight to long term goals and relatively less to quarterly earnings                19%
                                         Appointing CEOs and top managers who are not U.S. citizens                                      9%
                                          Data from © Carlos Eduardo DaSilva, SAE – Global Competition with Global Competence - 2008




                                       Carlos.DaSilva@fngp.com
Making Change Work
                          Changing mindsets and attitudes                                                              58%


• Changing mindsets and attitudes
             Corporate culture                                                                                   49%

                                Complexity is underestimated                                         35%



• Corporate culture                         Shortage of resources                                   33%

   Lack of commitment of higher management                                                          32%

                                      Lack of change know how                           20%

• Complexity ismissing or wrong
Lack of transparency because of underestimated
                   information
                                                                                      18%

            Lack of motivation of involved employees                              16%


• Shortage of resources
              Change of process                                                  15%

                                               Change of IT system              12%



• Lack of commitment of higher management
                                               Technology barriers        8%

                                                                     0%   10%         20%     30%         40%   50%    60%   70%
 Data from © Closing the Change Gap, IBM – Global CEO Study - 2008




        Carlos.DaSilva@fngp.com
Key Concept

                          PEOPLE




Carlos.DaSilva@fngp.com
Quality as Result of…


                  Data transformed becomes information.

        Information transformed becomes intelligence.

Intelligence transformed becomes competitive advantage.




   Carlos.DaSilva@fngp.com
…Human Excellence

                                                   Management

                   GROUP BEHAVIOR / ORGANIZACIONAL
                                    TEAM BEHAVIOR
                                                                ACTION
INDIVIDUAL BEHAVIOR                     SKILLS
                                                 Assurance

         ATTITUDE              COMPETENCE



    KNOWLEDGE




Carlos.DaSilva@fngp.com
Planning the Future is…



T
 P
           S

Carlos.DaSilva@fngp.com
…Managing the Change



“Thinking” = Toyota
 T
  Production
           System

 Carlos.DaSilva@fngp.com
Execution


     “It transfers the maximum number of tasks and responsibilities

 to those workers actually adding value to the car on the line, and it has

in place a system for detecting defects that quickly traces every problem,
                                    …”


                                THE MACHINE THAT CHANGED THE WORLD
                                      James P. Womack, Daniel T. Jones, and Daniel Roos




      Carlos.DaSilva@fngp.com
The results




Carlos.DaSilva@fngp.com
TPS is not a Tool Box…




Carlos.DaSilva@fngp.com
TPS is Attitude…

Jidoka                                 Just-in-Time
Highlighting/Visualization of          Making only “what is
problems                               needed, when it is needed,
                                       and in the amount needed
Quality must be built in during
the manufacturing process for          Producing quality products
the Just-in-Time system to             efficiently through the
function                               complete elimination of
                                       waste, inconsistencies, and
                                       unreasonable requirements
                                       on the production line


      Carlos.DaSilva@fngp.com
A normal day in the office…




                          Fast Response
                             “Luck”
                                or


Carlos.DaSilva@fngp.com
Real Time Process Control

Basic Model from 2002 case study at USA Company

               IPC                                    VISUAL
                               COMAKERSHIP
         MANUFACTURING
           KNOWLEDGE
                                SUPPLIER KNOWLEDGE   FACTORY
                                                       BEHAVIOR



          Database                 Database              5S

           Reports
                             Just in Time
                                    Reports           Visual Aid

              MRB                     CAR             KanBan

                                                     Integration
               KPI                    KPI              Center



   Carlos.DaSilva@fngp.com
Manufacturing Execution
                                 System




Carlos.DaSilva@fngp.com
Real Time Tracking




Carlos.DaSilva@fngp.com
Real Time Feedback




Carlos.DaSilva@fngp.com
Look the Picture and…


                          Thank You!!

                   Carlos.DaSilva@fngp.com
                   …count the black8303
                   Phone: +1 603 361 dots!

Carlos.DaSilva@fngp.com

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Organizational Knowledge - Beyond Lean Approach

  • 1. Organizational Knowledge Beyond Lean Approach Carlos Eduardo DaSilva Global Quality Manager Freudenberg-NOK www.mesa.org 2008 European Plant-to-Enterprise Conference November 3-4, Prague, Czech Republic
  • 2. The following Strategic Initiatives of MESA International are associated with this presentation: Lean Manufacturing Quality & Regulatory Compliance Real-Time Enterprise Carlos.DaSilva@fngp.com
  • 3. Global Business with… Global Supply 3,500 employees $950 million • Global Key Account Management • Global Lead Center Structure • Global Program n Co tio m a ic m Management un un m i ca m • Standardized Production tio Co n Technology Communication • Cooperative R&D • Employee Exchange 24,000 employees 7,000 employees $3.5 billion $2.5 billion Carlos.DaSilva@fngp.com
  • 4. …World Class Processes Best Practices – World Class Processes Lean Systems Initiative: A Cultural Basis for Waste Elimination Six Sigma: A Scientific Basis for Variation Reduction  Lean Thinking Case Study  Aggressive Six Sigma Program  Supply Chain & Outsourcing Initiatives  Product Development Best Practices Leader  Progressive Approach to APQP & Compliance Carlos.DaSilva@fngp.com
  • 5. Transition Time Craft Production Decentralized Enterprises Custom Manufacture and Tools 1800 and early 1900 2000 and beyond Mass Production Vertical Hierarchies (Closed System) Assembly Line 2000 and Beyond Knowledge-Driven Work Network Alliances (Team Based) Information Systems Data based in © Joel Cutcher-Gershenfeld, MIT - Lean Thinking - 2004 Carlos.DaSilva@fngp.com
  • 8. Looking to the Future “Published in 1998 the ground breaking report “The Nation’s CEOs Look to the Future” surveyed more than 300 CEOs to identify the top five most important trends related to competitive advantage.” MAJOR TREND SCORE Foundation for the Malcolm Baldrige Globalization -- becoming truly global companies 94% Improving knowledge management and the use of new information technology 88% Cost and cycle time reduction 79% National Quality Award Improving supply chains globally 78% Manufacturing at multiple locations in many countries 76% Managing the use of more part-time, temporary and contract workers 71% Developing new employee relationships based on performance and personal growth, not tenure and long-term commitment 69% Improving human resources and the hiring, training, retention &motivation of the talent 68% Improving execution of company strategic plans 68% Developing more appropriate strategic plans 64% Ongoing measurement/analysis of organizational processes 60% Developing a consistent global corporate culture 56% Outsourcing of manufacturing 55% Creating learning organizations 52% Outsourcing of white collar services 41% Managing employee turnover 41% Hiring the best talent in developing countries such as Russia, India, China 23% Giving more weight to long term goals and relatively less to quarterly earnings 19% Appointing CEOs and top managers who are not U.S. citizens 9% Data from © Carlos Eduardo DaSilva, SAE – Global Competition with Global Competence - 2008 Carlos.DaSilva@fngp.com
  • 9. Making Change Work Changing mindsets and attitudes 58% • Changing mindsets and attitudes Corporate culture 49% Complexity is underestimated 35% • Corporate culture Shortage of resources 33% Lack of commitment of higher management 32% Lack of change know how 20% • Complexity ismissing or wrong Lack of transparency because of underestimated information 18% Lack of motivation of involved employees 16% • Shortage of resources Change of process 15% Change of IT system 12% • Lack of commitment of higher management Technology barriers 8% 0% 10% 20% 30% 40% 50% 60% 70% Data from © Closing the Change Gap, IBM – Global CEO Study - 2008 Carlos.DaSilva@fngp.com
  • 10. Key Concept PEOPLE Carlos.DaSilva@fngp.com
  • 11. Quality as Result of… Data transformed becomes information. Information transformed becomes intelligence. Intelligence transformed becomes competitive advantage. Carlos.DaSilva@fngp.com
  • 12. …Human Excellence Management GROUP BEHAVIOR / ORGANIZACIONAL TEAM BEHAVIOR ACTION INDIVIDUAL BEHAVIOR SKILLS Assurance ATTITUDE COMPETENCE KNOWLEDGE Carlos.DaSilva@fngp.com
  • 13. Planning the Future is… T P S Carlos.DaSilva@fngp.com
  • 14. …Managing the Change “Thinking” = Toyota T Production System Carlos.DaSilva@fngp.com
  • 15. Execution “It transfers the maximum number of tasks and responsibilities to those workers actually adding value to the car on the line, and it has in place a system for detecting defects that quickly traces every problem, …” THE MACHINE THAT CHANGED THE WORLD James P. Womack, Daniel T. Jones, and Daniel Roos Carlos.DaSilva@fngp.com
  • 17. TPS is not a Tool Box… Carlos.DaSilva@fngp.com
  • 18. TPS is Attitude… Jidoka Just-in-Time Highlighting/Visualization of Making only “what is problems needed, when it is needed, and in the amount needed Quality must be built in during the manufacturing process for Producing quality products the Just-in-Time system to efficiently through the function complete elimination of waste, inconsistencies, and unreasonable requirements on the production line Carlos.DaSilva@fngp.com
  • 19. A normal day in the office… Fast Response “Luck” or Carlos.DaSilva@fngp.com
  • 20. Real Time Process Control Basic Model from 2002 case study at USA Company IPC VISUAL COMAKERSHIP MANUFACTURING KNOWLEDGE SUPPLIER KNOWLEDGE FACTORY BEHAVIOR Database Database 5S Reports Just in Time Reports Visual Aid MRB CAR KanBan Integration KPI KPI Center Carlos.DaSilva@fngp.com
  • 21. Manufacturing Execution System Carlos.DaSilva@fngp.com
  • 24. Look the Picture and… Thank You!! Carlos.DaSilva@fngp.com …count the black8303 Phone: +1 603 361 dots! Carlos.DaSilva@fngp.com