SlideShare une entreprise Scribd logo
1  sur  46
Télécharger pour lire hors ligne
Prepared by Özcan ÇAVUŞOĞLU
1. Meaning & Scope                  10. WCM Checklist
2. Criteria                         11. Types of Operation Which
3. How a WCM is Achieved ?          Creates a WCM Units
4. Characteristics of World-Class   12. Just In Time (JIT)
Organizations                       Manufacturing
5. How to Make an Organization      13. JIT Improvements to
World-Class?                        Manufacturing
6. World-Class Manufacturing:       14. CONWIP Control
What it takes?                      15. Factors Which Can Make a
7. Implementing WCM                 WCM
8. Contrasting Mass Production &    16. Some Other Factors
WCM                                 17. Conclusion: Control of
9. The Grades for WCM               Operation
                                    CASE: Fiat
WCM (World Class Manufacturing)
   It refers to the practice followed in a
    manufacturing organizations, in order to
    consistently deliver exceptional performance,
    frequently in excess of expectations.

   World Class Manufacturers are those that
    demonstrate industry best practice.
There are two overriding
criteria when using this
checklist to judge whether
your    company    can  be
regarded as World Class

1) How does the company
compare with its best
competition?

2) Has the company
increased its score since
last year?
   Develop the awareness of the need to make the
    transition to World Class Manufacturing

   Develop the ability to search for relevant tools and to
    apply them effectively

   Monitor progress so that an improvement program can
    be systematically utilized.
1.    Customer service.
2.    Quality control and assurance.
3.    Research and development/ new product development
4.    Acquiring new technologies
5.    Innovation
6.    Team-based approach (adopting and using effectively)
7.    Best practices (study and use of)
8.    Manpower planning
9.    Environmentally sound practices
10.   Business partnerships and alliances
11.   Reengineering of processes
12.   Mergers and acquisitions
13.   Outsourcing and contracting
14.   Reliance on consulting services
15.   Political lobbying
1. Worker productivity (improvement)
2. Employee training and development
3. Open communication between management and employees
4. Employee benefits and perquisites
5. Codes of workplace conduct
6. Conflict resolution
7. Employee satisfaction
8. Flextime arrangements
9. Management-employee-union relations
10. Child care
6. World-Class Manufacturing: What it
takes?
1. Competitive analysis strategies (cost efficiencies in operations,
   speed to market, research and development supremacy, zero
   defects, real-time order management etc.)
2. Production and supply chain (collaborative planning, forecasting
   and replenishment, collaborative manufacturing and product design,
   supplier-managed inventory etc.)
3. Customization strategies (building to order, customized mass
   production, global sourcing and manufacturing, etc.)
4. Electronic commerce strategies (supply management, Internet
   ordering, status and availability tracking by Internet)
5. Compensation systems (product profitability, inventory levels,
   manufactured/delivered costs per unit, worker productivity, employee
   retention rates, etc.)
Success           WCM Tools                      Measurement Indicators
Factors
1. Cost control Just-in-time    logistics, · Inventory holdings
                quality at source and · Absence of defects and rework
                supply chain management · Cost of incoming materials
                tools
2. Quality        Statistical Process Control,   · Customer return rates
                  fool-proofing to prevent       · Internal reject, rework & scrap
                  errors, Pareto analysis of     rates
                  types and causes of            · Supplier quality Performance
                  production defects
3.       External Just-in-time    logistics,     · Time from customer order to
flexibility       quality at source and          delivery
                  supply chain management        · Delivery frequency & reliability
                  tools                          to customers
                                                 ·     Delivery frequency and
Success           WCM Tools                            Measurement Indicators
Factors
4. Internal       Cellular layouts, single unit        ·   Machine changeover times
flexibility       flow, production pulling,            ·   Batch and lot sizes
                  Kanban signaling system,             ·   Inventory levels
                  single-minute exchange of            ·   Throughput time through factory
                  dies for rapid machine changeover,   ·   Machine utilization levels
                  supply chain
                  management
5. Capacity       • Multi-tasking,                     · Numeracy and literacy levels
 to change        • Multi skilling,                    · Labor/management turnover levels
(Human            • Quality circles,                   · Absenteeism rates
resource          • Kaizen groups,                     · Training expenditure and types of
development)      • Training,                          training
                  • Incentive schemes.                 · Employee development
                                                       · Suggestion schemes/continuous
                                                         improvement
6.     Innovation Concurrent engineering,              · R&D expenditure
capacity          new product development              · Proportion of sales from
                  techniques                              new products
8. Contrasting Mass Production & WCM

Critical    Control Mass Production           World Class
Points                                        Manufacturing
Logistics          ·        Large      batch · Single unit flow production
                   production                · Just-in-time inventories
                   ·            Just-in-case · Flexible machinery and
                   inventories                  rapid machine changeover
                                Specialized
                   machinery
Quality            · End of line inspection   · Quality-at-source at each
                   · Reworking of defects     part of production process

Work organisation · Division of labor         ·    Multi-tasking and multi
                     between skilled and      skilling
                     unskilled workers        · Continuous improvement in
                  · Specialized R&D and       green areas as well as
                     product development         specialized staff
   "W“ - World class
   "X“ - Very good but not quite
    world class – (country class)
   "Y“ - Better than many – (city
    class)
   "Z“ - Poor – (village class)
Q1) Do you have a 99% or better level of
 customer ser vice (or product availability)?

Grade   Criteria

W       99% or better customer service level (on time in full
        or availability).
X       95% up to 99% customer service.

Y       90% up to 95% customer service.

Z       Below 90% customer service.
10. WCM Checklist

Q2) Does everyone in the company know who the key
customers are and what differentiates the company’s
   products and services from the competition?

Grade     Criteria
W         Everyone knows key customers through a new
          employee induction scheme and regular updates,
          meetings, notices etc.

X         Most people know key customers.
Y         Managers know key customers.
Z         Customers known mainly on a "need to know" basis.
10. WCM Checklist
Q3) Do all staff who are in contact with customers
  have the authority and empowerment to resolve
  customer problems?
 Grade Criteria
W       A person answers telephone calls within 4 rings and takes
        responsibility to deal with the call either immediately or by
        getting back to the caller within 24 hours. Similar
        standards are used for e-mail and written complaints.
X       A person answers telephone calls and takes responsibility
        to deal with the call either immediately or by getting back
        to the caller within 5 days. Similar standards are used for
        e-mail and written complaints.
Y       Customer problems are dealt with as soon as possible.
Z       Many customer problems are outstanding or not
        satisfactorily resolved.
10. WCM Checklist

    Q4) Do Kanban control your supply chain?
    Grad   Criteria question
    e
    W      At least 75% of your shipments to customers controlled
           by Kanban or vendor managed inventory (i.e. shipped /
           delivered based on customer usage) or you are able
           and willing to make Kanban shipments if requested.
    X      Some but less than 75% of shipments under Kanban
           control or you are probably able to make Kanban
 
           shipments if requested.
    Y      You may be able to make Kanban shipments if
           requested.
    Z      You would not make shipments under Kanban control.
11. Types of Operation Which Creates a WCM Units
                The Kanban Control Concept




 Kanban      control   Kanban         control.   The Kanban
 means that the        Movement of parts         messages can take
 authority to make     shown      in    blue,    the form of an e-
 or move an item is    circulation         of    mail, fax, card,
 based on that         Kanban in red.            empty container or
 item's       usage    Machines           are    require you to visit
 unless there has      shown as circles          their plant to
 been a properly       and     buffers     as    replenish their stock
 approved       and    triangles. The last       of your products
 strictly    limited   buffer      is     the    (usually referred to
 deviation             finished goods (FG)       as vendor managed
12. Just In Time (JIT) Manufacturing
 Just in Time manufacturing is a systems approach to developing
 and operating a manufacturing system. We will take an example
 of banking process:




  In short, JIT means making what the market wants, when it
 wants it. JIT has been found to be so effective that it increases
 productivity, work performance and product quality, while
 saving costs                                           
13. JIT Improvements to Manufacturing

                              In Summar y, JIT
                              Systems requires
                              Changes in:
                                    System Design
                                    Organization
                                     Attitudes and
                                     Structures
                                    External
                                     Relationships
                                    New Management
                                     Priorities
             Tim
             e
14. CONWIP Control




CONWIP        stands       for   Once the parts are released, they
Constant Work-In-Process,        are processed as quickly as
and designates a control         possible until they wind up in the
strategy that limits the total   last buffer as finished goods. One
number of parts allowed          way to view this is that the
into the system at the           system is enveloped in a single
same time                        Kanban cell: Once the consumer
                                 removes a part from the finished
CONWIP control. Movement         goods     inventory,    the    first
of parts shown in blue,          machine in the chain is
circulation   of     release     authorized to load another part.
authorizations in green.
15. Factors Which Can Make a WCM
16. Some Other Factors
Before commencing implementation of control systems
there are always five beneficial things to do which will make
any method of control easier to implement and make the
system work better operationally
(Generally world class manufacturing businesses have
done these things) 
     Reduce time wasted in setting and reduce
      set up times
     Form Natural Groups (cells)
     Reduce throughput times
     Postpone product mutation
     Remove the trivial many, to focus on the vital
      few
WCM (World Class Manufacturing)
WCM (World Class Manufacturing)
   We have started a program designed to achieve the standards of excellence
    associated with World Class Manufacturing (WCM) policies: a company
    organization methodology that leads to excellence of the entire production
    process through the continuous improvement of all performances and the
    contribution of all company employees, at every level.

   Our manufacturing facilities use the Fiat Advanced Production System
    (FAPS),an integrated model that optimizes production and logistic
    processes.

   The program was launched two years ago but the plants of Tychy in Poland,
    Melfi in Italy and Bursa in Turkey have already attained a competitive rating
    according to World Class Manufacturing criteria
2. WORLD CLASS MANUFACTURING
WorldClass Manufacturing principles apply to all aspects of plant organization,
from the quality system to maintenance, from cost control to logistics, in a
perspective of continuous improvement.

WorldClass Manufacturing (WCM) in fact was born of the collaboration
between Fiat and the best European and Japanese experts, with the aim to
enhance the production standard to a recognized world standard.

The system is based on a systematic reduction of all types of loss and waste
through the contribution of everyone and the rigorous use of methods and
standards.
2. WORLD CLASS MANUFACTURING
   The system is based on a systematic reduction of all types of loss and waste through
    the contribution of everyone and the rigorous use of methods and standards.

   Care for the Environment is one of the pillars of the system, encompassing all the
    people, regulations and rules of conduct making up our Environmental Management
    System (EMS).

   This is the management tool that will enable us to determine, reduce and control the
    environmental impact of our manufacturing facilities, knowing that every activity has
    repercussions on the environment.

   The system specifies a number of actions geared to the reduction of the
    environmental impact of manufacturing activities, both in order to ensure
    compliance with the applicable regulations and in order to prevent the waste of
    energy and natural resources
3. TOFAŞ
Tofaş has been the best of the world in manufacturing, now it
will set a model for Chr ysler’s world beside Fiat’s.
(18.11.2009)

Tofaş who has been producing Fiat branded passenger cars and
commercial vehicles for 41 years in Turkey with the cooperation of Fiat
S.P.A and Koç Holding and who has manufactured its 3 millionth vehicle in
2009 has received the “Silver Level” (World Class Manufacturing) award, it
has achieved in WCM, with a ceremony, organized in Turkey.

Being the first production center that has achieved “Silver” level in “World
Class Manufacturing” in Fiat’s world, Tofaş’s Bursa factory has been
chosen as the factory who has “the highest quality and who makes the
safest manufacturing” after the last audit, carried out by WCM teams last
week.
3. TOFAŞ
Tofaş has been the best of the world in manufacturing, now it will
set a model for Chr ysler’s world beside Fiat’s. (18.11.2009)

FiatGroup’s CMO (Chief Manufacturing Officer) who has come to Turkey for the
ceremony on Tofaş’s being chosen as the best factory; Stefan Ketter explained,
“Making R&D and manufacturing of important models like Fiat Fiorino, Linea
and Doblo, Tofaş’s place in the Fiat’s world as is very strong without any
dispute.

Tofaş’s success globally is a true example of discipline, quality and success in
this period when Fiat and Chrysler factories are in common action in terms of
production in world’s class”.
World Class Manufacturing




Stefan Ketter


Lingotto - November 8 & 9, 2006
WCM Focus




                                  All Employees


                             Waste and Losses


                       Standards and Methods




Lingotto - November 8 & 9, 2006                   2
Structure/Objectives




             Workplace               Quality           Maintenance        Logistic
            Organization




              Total Industrial     Total Quality       Total Productive
Method                                Control            Maintenance
                                                                          Just in Time
                Engineering
& std.


                                     Quality              Technical        Service
Focus           Productivity
                                   Improvement            Efficiency        Level




                   zero                zero              zero              zero
Target
                   waste              defects            breakdowns        inventory


Values        People involvement, value creation, customer satisfaction


Lingotto - November 8 & 9, 2006                                                  3
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




Lingotto - November 8 & 9, 2006                               4
WCM Principles



 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




Lingotto - November 8 & 9, 2006                               5
Main Actual Activities


         2005A                      2006E                      2007E
                     WCM Basics / Safety

                             Training / Leadership / Organisation

                           Cost Deployment

                              Investments & Fix Plants


                                  Labour efficiency / Capacity Utilization

                                    Environment / Ergonomy

                                  Maintenance Process


                             Quality Process Improvement

                                            Logistic Process                     Time



Lingotto - November 8 & 9, 2006                                              6
Actual Best Results/WCM Audit



     Workplace
    Organization                  Quality          Maintenance        Logistic


                                      Methodologies
           1    Safety                             New approach
           2    Cost Deployment                    100 % plants
           3    Focused Improvement                147 events
           4    Work Place Organization            7 model areas
           5    A.M.: Autonomous Maintenance       58 model areas
           6    P.M.: Professional Maintenance     34 model areas
           7    Quality Control                    10 model areas
           8    Production Logistic System         4 model areas
           9    Early Equipment Management         First exercises
           10   People development/qualification   New approach
           11   Environment                        New approach

                                                                     100%

Lingotto - November 8 & 9, 2006                                              7
Model Area: Tychy/Poland


People Involvement: Proposals/Employee/Year

    4,5
                                                                        Target = 4
    4,0


    3,5


    3,0


    2,5
                                                                      Implementation
    2,0                                                               rate 50%
    1,5


    1,0


    0,5


    0,0
          Jan    Feb    Mar       Apr   May   Jun   Jul   Aug   Sep      Oct   Nov   Dec




Lingotto - November 8 & 9, 2006                                                       8
Model Area: Melfi


Quality: Electric Check Defects - Grande Punto




                                  - 50%




Lingotto - November 8 & 9, 2006                  9
Model Area: Melfi


Productivity: Hours per Vehicle - Grande Punto




                                    -12%
                                  in 8 months




Lingotto - November 8 & 9, 2006                  10
Average Hours/Vehicle


                                            Vs. Benchmark (Harbour Report)
                          - 20%*
                                              Segment          Ranking

                                                  A          Leadership

                                                  B          Leadership

                                                  C             Top 5

                                                  D            Top 10

                                                 LCV         Leadership



         2006E             2010E


*   As result of new vehicle introduction


Lingotto - November 8 & 9, 2006                                         11
Labour Productivity Target (Italy/Poland)


                                                                       100%
                            Technical efficiency
          Losses            Waste/Rework           - 30%    Losses
                            Line Balancing                             Range


                                                   - 50%
                           Non Value Added
                           • Logistic layout
                           • Time Optimization


                                                           Operation
        Operation




           Actual                                            2010E

Lingotto - November 8 & 9, 2006                                        12
Towards World Class Manufacturing
100



 90

                                                     Competitive                      Consolidation /
 80
                                                       Level
                                                                                       Autonomous
 70                                                                                    Improvement

 60                                   Horizontal
                                      expansion
 50



 40



 30

       Knowledge
                                                             Saving: > €500mn
 20    creation
       Model areas
 10
               2006E                 2007E                   2008E                 2009E                     2010E
 0
       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

      Lingotto - November 8 & 9, 2006                                                                                          13
WCM - Extension towards Suppliers




                  Cost            Quality   Maintenance      Logistic



                                   Q            M              L
                    €




                                   SUPPLIER
                    World Class Manufacturing integration/extension
                          throughout Supplier Process Engineers




Lingotto - November 8 & 9, 2006                                         14
WCM - A Corporative Approach



                                       WCM




                                    Implementation,
                                      Auditing and
                                  Best Practice Sharing

Lingotto - November 8 & 9, 2006                      15

Contenu connexe

Tendances

Tendances (20)

Presentation on Just in Time
Presentation on Just in TimePresentation on Just in Time
Presentation on Just in Time
 
Lean manufacturing
Lean manufacturingLean manufacturing
Lean manufacturing
 
Lean Manufacturing Tools
Lean Manufacturing ToolsLean Manufacturing Tools
Lean Manufacturing Tools
 
Kanban system presentation
Kanban system presentationKanban system presentation
Kanban system presentation
 
8 Wastes of Lean
8 Wastes of Lean8 Wastes of Lean
8 Wastes of Lean
 
Autonomous Maintenance
Autonomous MaintenanceAutonomous Maintenance
Autonomous Maintenance
 
Lean Manufacturing PowerPoint Presentation Sample
Lean Manufacturing PowerPoint Presentation SampleLean Manufacturing PowerPoint Presentation Sample
Lean Manufacturing PowerPoint Presentation Sample
 
JIT- JUST IN TIME PPT
JIT- JUST IN TIME PPTJIT- JUST IN TIME PPT
JIT- JUST IN TIME PPT
 
PPT ON Just in time technique (JIT)
PPT ON Just in time technique (JIT)PPT ON Just in time technique (JIT)
PPT ON Just in time technique (JIT)
 
Lean Tools
Lean ToolsLean Tools
Lean Tools
 
material requirement planning
material requirement planningmaterial requirement planning
material requirement planning
 
History of Lean manufacturing & TPS 14 Principal
History of Lean manufacturing & TPS 14 PrincipalHistory of Lean manufacturing & TPS 14 Principal
History of Lean manufacturing & TPS 14 Principal
 
World Class Manufacturing
World Class Manufacturing World Class Manufacturing
World Class Manufacturing
 
TOYOTA PRODUCTION SYSTEM (TPS) PRESENTATION
TOYOTA PRODUCTION SYSTEM (TPS) PRESENTATIONTOYOTA PRODUCTION SYSTEM (TPS) PRESENTATION
TOYOTA PRODUCTION SYSTEM (TPS) PRESENTATION
 
Lean Manufacturing
Lean ManufacturingLean Manufacturing
Lean Manufacturing
 
Kanban Pull System
Kanban Pull SystemKanban Pull System
Kanban Pull System
 
Wcm
WcmWcm
Wcm
 
Total Productive Maintenance
Total Productive Maintenance Total Productive Maintenance
Total Productive Maintenance
 
Presentation on Total Productive Maintenance
Presentation on Total Productive MaintenancePresentation on Total Productive Maintenance
Presentation on Total Productive Maintenance
 
Total Productive Maintenance
Total Productive MaintenanceTotal Productive Maintenance
Total Productive Maintenance
 

En vedette

En vedette (9)

7 steps to world class manufacturing
7 steps to world class manufacturing7 steps to world class manufacturing
7 steps to world class manufacturing
 
Logistics WCM Presentation Final - Converted (2)
Logistics WCM Presentation Final - Converted (2)Logistics WCM Presentation Final - Converted (2)
Logistics WCM Presentation Final - Converted (2)
 
World class manufacturing
World class manufacturingWorld class manufacturing
World class manufacturing
 
WCM - World Class Manufacturing. Informativo: I.004.2014
WCM - World Class Manufacturing. Informativo: I.004.2014WCM - World Class Manufacturing. Informativo: I.004.2014
WCM - World Class Manufacturing. Informativo: I.004.2014
 
WCM LOGISTICS
WCM LOGISTICSWCM LOGISTICS
WCM LOGISTICS
 
Метод микроэлементного нормирования труда Modapts
Метод микроэлементного нормирования труда ModaptsМетод микроэлементного нормирования труда Modapts
Метод микроэлементного нормирования труда Modapts
 
Methods-Time Measurement and Functional Capacity Evaluation 041610
Methods-Time Measurement and Functional Capacity Evaluation 041610Methods-Time Measurement and Functional Capacity Evaluation 041610
Methods-Time Measurement and Functional Capacity Evaluation 041610
 
Man and machine chart
Man and machine chartMan and machine chart
Man and machine chart
 
Work Study- Methods Study
Work Study- Methods StudyWork Study- Methods Study
Work Study- Methods Study
 

Similaire à WCM (World Class Manufacturing)

World class manufacturing practices in the SCM-2.pptx
World class manufacturing practices in the SCM-2.pptxWorld class manufacturing practices in the SCM-2.pptx
World class manufacturing practices in the SCM-2.pptxChandrasen Sharma
 
PRODUCTION MGT-world-class-manufacturing.pptx
PRODUCTION MGT-world-class-manufacturing.pptxPRODUCTION MGT-world-class-manufacturing.pptx
PRODUCTION MGT-world-class-manufacturing.pptxChandrasen Sharma
 
Anwar bayali report
Anwar bayali   reportAnwar bayali   report
Anwar bayali reportAdeel Farooq
 
Introduction to Quality Engineering / Quality Control
Introduction to Quality Engineering / Quality ControlIntroduction to Quality Engineering / Quality Control
Introduction to Quality Engineering / Quality ControlAFAQAHMED JAMADAR
 
EngManagement - Lecture 8.pptx
EngManagement - Lecture 8.pptxEngManagement - Lecture 8.pptx
EngManagement - Lecture 8.pptxshayanzafar2
 
Assignment 1 opm
Assignment 1 opmAssignment 1 opm
Assignment 1 opmmaharakmal
 
world class manufacturing practices for mms
world class manufacturing practices for mmsworld class manufacturing practices for mms
world class manufacturing practices for mmsChandrasen Sharma
 
Smu mba sem 4 om spring 2016 assignments
Smu mba sem 4 om spring 2016 assignmentsSmu mba sem 4 om spring 2016 assignments
Smu mba sem 4 om spring 2016 assignmentssolved_assignments
 
Avon Material Handling Preventative Maintenance Case Study
Avon Material Handling Preventative Maintenance Case StudyAvon Material Handling Preventative Maintenance Case Study
Avon Material Handling Preventative Maintenance Case Studyintelligrated
 
Production and operation management
Production and operation managementProduction and operation management
Production and operation managementCris Orpilla
 
Warehouse Manager Certification
Warehouse Manager CertificationWarehouse Manager Certification
Warehouse Manager CertificationVskills
 
Operation management-notes
Operation management-notesOperation management-notes
Operation management-notesismatullahzazai
 
Manufacturing quality qm
Manufacturing quality qmManufacturing quality qm
Manufacturing quality qmAshu0711
 
Quality managment
Quality managmentQuality managment
Quality managmentAnkit
 

Similaire à WCM (World Class Manufacturing) (20)

World class manufacturing practices in the SCM-2.pptx
World class manufacturing practices in the SCM-2.pptxWorld class manufacturing practices in the SCM-2.pptx
World class manufacturing practices in the SCM-2.pptx
 
Wcm Final Pom
Wcm Final PomWcm Final Pom
Wcm Final Pom
 
PRODUCTION MGT-world-class-manufacturing.pptx
PRODUCTION MGT-world-class-manufacturing.pptxPRODUCTION MGT-world-class-manufacturing.pptx
PRODUCTION MGT-world-class-manufacturing.pptx
 
Anwar bayali report
Anwar bayali   reportAnwar bayali   report
Anwar bayali report
 
Lean management
Lean managementLean management
Lean management
 
Jit
JitJit
Jit
 
Introduction to Quality Engineering / Quality Control
Introduction to Quality Engineering / Quality ControlIntroduction to Quality Engineering / Quality Control
Introduction to Quality Engineering / Quality Control
 
EngManagement - Lecture 8.pptx
EngManagement - Lecture 8.pptxEngManagement - Lecture 8.pptx
EngManagement - Lecture 8.pptx
 
Assignment 1 opm
Assignment 1 opmAssignment 1 opm
Assignment 1 opm
 
world class manufacturing practices for mms
world class manufacturing practices for mmsworld class manufacturing practices for mms
world class manufacturing practices for mms
 
Wcm 2
Wcm 2Wcm 2
Wcm 2
 
Smu mba sem 4 om spring 2016 assignments
Smu mba sem 4 om spring 2016 assignmentsSmu mba sem 4 om spring 2016 assignments
Smu mba sem 4 om spring 2016 assignments
 
Avon Material Handling Preventative Maintenance Case Study
Avon Material Handling Preventative Maintenance Case StudyAvon Material Handling Preventative Maintenance Case Study
Avon Material Handling Preventative Maintenance Case Study
 
Production and operation management
Production and operation managementProduction and operation management
Production and operation management
 
Warehouse Manager Certification
Warehouse Manager CertificationWarehouse Manager Certification
Warehouse Manager Certification
 
Setting Up Centralized Documentation Iss Case Study
Setting Up Centralized Documentation   Iss Case StudySetting Up Centralized Documentation   Iss Case Study
Setting Up Centralized Documentation Iss Case Study
 
Operation management-notes
Operation management-notesOperation management-notes
Operation management-notes
 
Manufacturing quality qm
Manufacturing quality qmManufacturing quality qm
Manufacturing quality qm
 
Quality managment
Quality managmentQuality managment
Quality managment
 
Analytics in the Manufacturing industry
Analytics in the Manufacturing industryAnalytics in the Manufacturing industry
Analytics in the Manufacturing industry
 

Plus de Özcan Çavuşoğlu, Ph.D.(Cand.)

Plus de Özcan Çavuşoğlu, Ph.D.(Cand.) (7)

Strategy, Investment and New Services Development Path in Retail Industry by ...
Strategy, Investment and New Services Development Path in Retail Industry by ...Strategy, Investment and New Services Development Path in Retail Industry by ...
Strategy, Investment and New Services Development Path in Retail Industry by ...
 
Euro 2013 Abstract Book
Euro 2013 Abstract BookEuro 2013 Abstract Book
Euro 2013 Abstract Book
 
Modeling the impact of global change on regional agricultural land use throug...
Modeling the impact of global change on regional agricultural land use throug...Modeling the impact of global change on regional agricultural land use throug...
Modeling the impact of global change on regional agricultural land use throug...
 
e-ticaret
e-ticarete-ticaret
e-ticaret
 
A Decision Support System for a Production Plant Investment in Abroad
A Decision Support System for a Production Plant Investment in Abroad A Decision Support System for a Production Plant Investment in Abroad
A Decision Support System for a Production Plant Investment in Abroad
 
GSM Operator Selection for a Call Center Investment by Using AHP
GSM Operator Selection for a Call Center Investment by Using AHPGSM Operator Selection for a Call Center Investment by Using AHP
GSM Operator Selection for a Call Center Investment by Using AHP
 
Catering Kuruluşları için HACCP - ISO 22000 Standardına Bir Karar Destek Sist...
Catering Kuruluşları için HACCP - ISO 22000 Standardına Bir Karar Destek Sist...Catering Kuruluşları için HACCP - ISO 22000 Standardına Bir Karar Destek Sist...
Catering Kuruluşları için HACCP - ISO 22000 Standardına Bir Karar Destek Sist...
 

Dernier

Centering Equity Presentation by Brenna Rivett
Centering Equity Presentation by Brenna RivettCentering Equity Presentation by Brenna Rivett
Centering Equity Presentation by Brenna RivettForth
 
Lakshitha maduranga CV - for data entry clerck
Lakshitha maduranga CV - for data entry clerckLakshitha maduranga CV - for data entry clerck
Lakshitha maduranga CV - for data entry clerckLakshanMadhushanka3
 
Design and Fund Equitable Electric Transportation For Communities by Jasmine ...
Design and Fund Equitable Electric Transportation For Communities by Jasmine ...Design and Fund Equitable Electric Transportation For Communities by Jasmine ...
Design and Fund Equitable Electric Transportation For Communities by Jasmine ...Forth
 
Study on Financing of zero-emission trucks and their infrastructure
Study on Financing of zero-emission trucks and their infrastructureStudy on Financing of zero-emission trucks and their infrastructure
Study on Financing of zero-emission trucks and their infrastructureEuropeanCleanTruckin
 
USDA’s EV Charging Infrastructure Solutions by Chris McLean
USDA’s EV Charging Infrastructure Solutionsby Chris McLeanUSDA’s EV Charging Infrastructure Solutionsby Chris McLean
USDA’s EV Charging Infrastructure Solutions by Chris McLeanForth
 
Nosfdsfsdfasdfasdfasdfsadf asdfasdfasdfasdf
Nosfdsfsdfasdfasdfasdfsadf asdfasdfasdfasdfNosfdsfsdfasdfasdfasdfsadf asdfasdfasdfasdf
Nosfdsfsdfasdfasdfasdfsadf asdfasdfasdfasdfJulia Kaye
 
Commercial Extractor fan repair services
Commercial Extractor fan repair servicesCommercial Extractor fan repair services
Commercial Extractor fan repair servicesmb1294198
 
Building a Budget by Jeff Allen and Josh Rodriguez
Building a Budget by Jeff Allen and Josh RodriguezBuilding a Budget by Jeff Allen and Josh Rodriguez
Building a Budget by Jeff Allen and Josh RodriguezForth
 
Centering equity and the community in Transportation by Richard Ezike
Centering equity and the community in Transportation by Richard EzikeCentering equity and the community in Transportation by Richard Ezike
Centering equity and the community in Transportation by Richard EzikeForth
 
Environmental and Climate Justice Programby Karen Campblin
Environmental and Climate Justice Programby Karen CampblinEnvironmental and Climate Justice Programby Karen Campblin
Environmental and Climate Justice Programby Karen CampblinForth
 
Building a Future Where Everyone Can Ride and Drive Electric by Linda Bailey
Building a Future Where Everyone Can Ride and Drive Electric by Linda BaileyBuilding a Future Where Everyone Can Ride and Drive Electric by Linda Bailey
Building a Future Where Everyone Can Ride and Drive Electric by Linda BaileyForth
 
Program Design by Prateek Suri and Shakaya Cooper
Program Design by Prateek Suri and Shakaya CooperProgram Design by Prateek Suri and Shakaya Cooper
Program Design by Prateek Suri and Shakaya CooperForth
 
Transportation Electrification Funding Strategy.pptx
Transportation Electrification Funding Strategy.pptxTransportation Electrification Funding Strategy.pptx
Transportation Electrification Funding Strategy.pptxForth
 
Centering Equity and Community in Transportation by Benito Perez
Centering Equity and Community in Transportation by Benito PerezCentering Equity and Community in Transportation by Benito Perez
Centering Equity and Community in Transportation by Benito PerezForth
 
Equity Lab: Inked with Intent by The Greenlining Institute
Equity Lab: Inked with Intent by The Greenlining InstituteEquity Lab: Inked with Intent by The Greenlining Institute
Equity Lab: Inked with Intent by The Greenlining InstituteForth
 

Dernier (17)

Centering Equity Presentation by Brenna Rivett
Centering Equity Presentation by Brenna RivettCentering Equity Presentation by Brenna Rivett
Centering Equity Presentation by Brenna Rivett
 
Lakshitha maduranga CV - for data entry clerck
Lakshitha maduranga CV - for data entry clerckLakshitha maduranga CV - for data entry clerck
Lakshitha maduranga CV - for data entry clerck
 
Design and Fund Equitable Electric Transportation For Communities by Jasmine ...
Design and Fund Equitable Electric Transportation For Communities by Jasmine ...Design and Fund Equitable Electric Transportation For Communities by Jasmine ...
Design and Fund Equitable Electric Transportation For Communities by Jasmine ...
 
Study on Financing of zero-emission trucks and their infrastructure
Study on Financing of zero-emission trucks and their infrastructureStudy on Financing of zero-emission trucks and their infrastructure
Study on Financing of zero-emission trucks and their infrastructure
 
USDA’s EV Charging Infrastructure Solutions by Chris McLean
USDA’s EV Charging Infrastructure Solutionsby Chris McLeanUSDA’s EV Charging Infrastructure Solutionsby Chris McLean
USDA’s EV Charging Infrastructure Solutions by Chris McLean
 
Reinventing the Car - as I reported it in 1985!
Reinventing the Car - as I reported it in 1985!Reinventing the Car - as I reported it in 1985!
Reinventing the Car - as I reported it in 1985!
 
Nosfdsfsdfasdfasdfasdfsadf asdfasdfasdfasdf
Nosfdsfsdfasdfasdfasdfsadf asdfasdfasdfasdfNosfdsfsdfasdfasdfasdfsadf asdfasdfasdfasdf
Nosfdsfsdfasdfasdfasdfsadf asdfasdfasdfasdf
 
Commercial Extractor fan repair services
Commercial Extractor fan repair servicesCommercial Extractor fan repair services
Commercial Extractor fan repair services
 
Building a Budget by Jeff Allen and Josh Rodriguez
Building a Budget by Jeff Allen and Josh RodriguezBuilding a Budget by Jeff Allen and Josh Rodriguez
Building a Budget by Jeff Allen and Josh Rodriguez
 
Centering equity and the community in Transportation by Richard Ezike
Centering equity and the community in Transportation by Richard EzikeCentering equity and the community in Transportation by Richard Ezike
Centering equity and the community in Transportation by Richard Ezike
 
EVAT - Future Mobility Transformation in Thailand
EVAT - Future Mobility Transformation in ThailandEVAT - Future Mobility Transformation in Thailand
EVAT - Future Mobility Transformation in Thailand
 
Environmental and Climate Justice Programby Karen Campblin
Environmental and Climate Justice Programby Karen CampblinEnvironmental and Climate Justice Programby Karen Campblin
Environmental and Climate Justice Programby Karen Campblin
 
Building a Future Where Everyone Can Ride and Drive Electric by Linda Bailey
Building a Future Where Everyone Can Ride and Drive Electric by Linda BaileyBuilding a Future Where Everyone Can Ride and Drive Electric by Linda Bailey
Building a Future Where Everyone Can Ride and Drive Electric by Linda Bailey
 
Program Design by Prateek Suri and Shakaya Cooper
Program Design by Prateek Suri and Shakaya CooperProgram Design by Prateek Suri and Shakaya Cooper
Program Design by Prateek Suri and Shakaya Cooper
 
Transportation Electrification Funding Strategy.pptx
Transportation Electrification Funding Strategy.pptxTransportation Electrification Funding Strategy.pptx
Transportation Electrification Funding Strategy.pptx
 
Centering Equity and Community in Transportation by Benito Perez
Centering Equity and Community in Transportation by Benito PerezCentering Equity and Community in Transportation by Benito Perez
Centering Equity and Community in Transportation by Benito Perez
 
Equity Lab: Inked with Intent by The Greenlining Institute
Equity Lab: Inked with Intent by The Greenlining InstituteEquity Lab: Inked with Intent by The Greenlining Institute
Equity Lab: Inked with Intent by The Greenlining Institute
 

WCM (World Class Manufacturing)

  • 1. Prepared by Özcan ÇAVUŞOĞLU
  • 2. 1. Meaning & Scope 10. WCM Checklist 2. Criteria 11. Types of Operation Which 3. How a WCM is Achieved ? Creates a WCM Units 4. Characteristics of World-Class 12. Just In Time (JIT) Organizations Manufacturing 5. How to Make an Organization 13. JIT Improvements to World-Class? Manufacturing 6. World-Class Manufacturing: 14. CONWIP Control What it takes? 15. Factors Which Can Make a 7. Implementing WCM WCM 8. Contrasting Mass Production & 16. Some Other Factors WCM 17. Conclusion: Control of 9. The Grades for WCM Operation CASE: Fiat
  • 4. It refers to the practice followed in a manufacturing organizations, in order to consistently deliver exceptional performance, frequently in excess of expectations.  World Class Manufacturers are those that demonstrate industry best practice.
  • 5. There are two overriding criteria when using this checklist to judge whether your company can be regarded as World Class 1) How does the company compare with its best competition? 2) Has the company increased its score since last year?
  • 6. Develop the awareness of the need to make the transition to World Class Manufacturing  Develop the ability to search for relevant tools and to apply them effectively  Monitor progress so that an improvement program can be systematically utilized.
  • 7. 1. Customer service. 2. Quality control and assurance. 3. Research and development/ new product development 4. Acquiring new technologies 5. Innovation 6. Team-based approach (adopting and using effectively) 7. Best practices (study and use of) 8. Manpower planning 9. Environmentally sound practices 10. Business partnerships and alliances 11. Reengineering of processes 12. Mergers and acquisitions 13. Outsourcing and contracting 14. Reliance on consulting services 15. Political lobbying
  • 8. 1. Worker productivity (improvement) 2. Employee training and development 3. Open communication between management and employees 4. Employee benefits and perquisites 5. Codes of workplace conduct 6. Conflict resolution 7. Employee satisfaction 8. Flextime arrangements 9. Management-employee-union relations 10. Child care
  • 9. 6. World-Class Manufacturing: What it takes? 1. Competitive analysis strategies (cost efficiencies in operations, speed to market, research and development supremacy, zero defects, real-time order management etc.) 2. Production and supply chain (collaborative planning, forecasting and replenishment, collaborative manufacturing and product design, supplier-managed inventory etc.) 3. Customization strategies (building to order, customized mass production, global sourcing and manufacturing, etc.) 4. Electronic commerce strategies (supply management, Internet ordering, status and availability tracking by Internet) 5. Compensation systems (product profitability, inventory levels, manufactured/delivered costs per unit, worker productivity, employee retention rates, etc.)
  • 10. Success WCM Tools Measurement Indicators Factors 1. Cost control Just-in-time logistics, · Inventory holdings quality at source and · Absence of defects and rework supply chain management · Cost of incoming materials tools 2. Quality Statistical Process Control, · Customer return rates fool-proofing to prevent · Internal reject, rework & scrap errors, Pareto analysis of rates types and causes of · Supplier quality Performance production defects 3. External Just-in-time logistics, · Time from customer order to flexibility quality at source and delivery supply chain management · Delivery frequency & reliability tools to customers · Delivery frequency and
  • 11. Success WCM Tools Measurement Indicators Factors 4. Internal Cellular layouts, single unit · Machine changeover times flexibility flow, production pulling, · Batch and lot sizes Kanban signaling system, · Inventory levels single-minute exchange of · Throughput time through factory dies for rapid machine changeover, · Machine utilization levels supply chain management 5. Capacity • Multi-tasking, · Numeracy and literacy levels to change • Multi skilling, · Labor/management turnover levels (Human • Quality circles, · Absenteeism rates resource • Kaizen groups, · Training expenditure and types of development) • Training, training • Incentive schemes. · Employee development · Suggestion schemes/continuous improvement 6. Innovation Concurrent engineering, · R&D expenditure capacity new product development · Proportion of sales from techniques new products
  • 12. 8. Contrasting Mass Production & WCM Critical Control Mass Production World Class Points Manufacturing Logistics · Large batch · Single unit flow production production · Just-in-time inventories · Just-in-case · Flexible machinery and inventories rapid machine changeover Specialized machinery Quality · End of line inspection · Quality-at-source at each · Reworking of defects part of production process Work organisation · Division of labor · Multi-tasking and multi between skilled and skilling unskilled workers · Continuous improvement in · Specialized R&D and green areas as well as product development specialized staff
  • 13. "W“ - World class  "X“ - Very good but not quite world class – (country class)  "Y“ - Better than many – (city class)  "Z“ - Poor – (village class)
  • 14. Q1) Do you have a 99% or better level of customer ser vice (or product availability)? Grade Criteria W 99% or better customer service level (on time in full or availability). X 95% up to 99% customer service. Y 90% up to 95% customer service. Z Below 90% customer service.
  • 15. 10. WCM Checklist Q2) Does everyone in the company know who the key customers are and what differentiates the company’s products and services from the competition? Grade Criteria W Everyone knows key customers through a new employee induction scheme and regular updates, meetings, notices etc. X Most people know key customers. Y Managers know key customers. Z Customers known mainly on a "need to know" basis.
  • 16. 10. WCM Checklist Q3) Do all staff who are in contact with customers have the authority and empowerment to resolve customer problems? Grade Criteria W A person answers telephone calls within 4 rings and takes responsibility to deal with the call either immediately or by getting back to the caller within 24 hours. Similar standards are used for e-mail and written complaints. X A person answers telephone calls and takes responsibility to deal with the call either immediately or by getting back to the caller within 5 days. Similar standards are used for e-mail and written complaints. Y Customer problems are dealt with as soon as possible. Z Many customer problems are outstanding or not satisfactorily resolved.
  • 17. 10. WCM Checklist Q4) Do Kanban control your supply chain? Grad Criteria question e W At least 75% of your shipments to customers controlled by Kanban or vendor managed inventory (i.e. shipped / delivered based on customer usage) or you are able and willing to make Kanban shipments if requested. X Some but less than 75% of shipments under Kanban control or you are probably able to make Kanban   shipments if requested. Y You may be able to make Kanban shipments if requested. Z You would not make shipments under Kanban control.
  • 18. 11. Types of Operation Which Creates a WCM Units The Kanban Control Concept Kanban control Kanban control. The Kanban means that the Movement of parts messages can take authority to make shown in blue, the form of an e- or move an item is circulation of mail, fax, card, based on that Kanban in red. empty container or item's usage Machines are require you to visit unless there has shown as circles their plant to been a properly and buffers as replenish their stock approved and triangles. The last of your products strictly limited buffer is the (usually referred to deviation finished goods (FG) as vendor managed
  • 19. 12. Just In Time (JIT) Manufacturing Just in Time manufacturing is a systems approach to developing and operating a manufacturing system. We will take an example of banking process: In short, JIT means making what the market wants, when it wants it. JIT has been found to be so effective that it increases productivity, work performance and product quality, while saving costs                                           
  • 20. 13. JIT Improvements to Manufacturing In Summar y, JIT Systems requires Changes in:  System Design  Organization Attitudes and Structures  External Relationships  New Management Priorities Tim e
  • 21. 14. CONWIP Control CONWIP stands for Once the parts are released, they Constant Work-In-Process, are processed as quickly as and designates a control possible until they wind up in the strategy that limits the total last buffer as finished goods. One number of parts allowed way to view this is that the into the system at the system is enveloped in a single same time Kanban cell: Once the consumer removes a part from the finished CONWIP control. Movement goods inventory, the first of parts shown in blue, machine in the chain is circulation of release authorized to load another part. authorizations in green.
  • 22. 15. Factors Which Can Make a WCM
  • 23. 16. Some Other Factors
  • 24. Before commencing implementation of control systems there are always five beneficial things to do which will make any method of control easier to implement and make the system work better operationally (Generally world class manufacturing businesses have done these things)   Reduce time wasted in setting and reduce set up times  Form Natural Groups (cells)  Reduce throughput times  Postpone product mutation  Remove the trivial many, to focus on the vital few
  • 27. We have started a program designed to achieve the standards of excellence associated with World Class Manufacturing (WCM) policies: a company organization methodology that leads to excellence of the entire production process through the continuous improvement of all performances and the contribution of all company employees, at every level.  Our manufacturing facilities use the Fiat Advanced Production System (FAPS),an integrated model that optimizes production and logistic processes.  The program was launched two years ago but the plants of Tychy in Poland, Melfi in Italy and Bursa in Turkey have already attained a competitive rating according to World Class Manufacturing criteria
  • 28. 2. WORLD CLASS MANUFACTURING WorldClass Manufacturing principles apply to all aspects of plant organization, from the quality system to maintenance, from cost control to logistics, in a perspective of continuous improvement. WorldClass Manufacturing (WCM) in fact was born of the collaboration between Fiat and the best European and Japanese experts, with the aim to enhance the production standard to a recognized world standard. The system is based on a systematic reduction of all types of loss and waste through the contribution of everyone and the rigorous use of methods and standards.
  • 29. 2. WORLD CLASS MANUFACTURING  The system is based on a systematic reduction of all types of loss and waste through the contribution of everyone and the rigorous use of methods and standards.  Care for the Environment is one of the pillars of the system, encompassing all the people, regulations and rules of conduct making up our Environmental Management System (EMS).  This is the management tool that will enable us to determine, reduce and control the environmental impact of our manufacturing facilities, knowing that every activity has repercussions on the environment.  The system specifies a number of actions geared to the reduction of the environmental impact of manufacturing activities, both in order to ensure compliance with the applicable regulations and in order to prevent the waste of energy and natural resources
  • 30. 3. TOFAŞ Tofaş has been the best of the world in manufacturing, now it will set a model for Chr ysler’s world beside Fiat’s. (18.11.2009) Tofaş who has been producing Fiat branded passenger cars and commercial vehicles for 41 years in Turkey with the cooperation of Fiat S.P.A and Koç Holding and who has manufactured its 3 millionth vehicle in 2009 has received the “Silver Level” (World Class Manufacturing) award, it has achieved in WCM, with a ceremony, organized in Turkey. Being the first production center that has achieved “Silver” level in “World Class Manufacturing” in Fiat’s world, Tofaş’s Bursa factory has been chosen as the factory who has “the highest quality and who makes the safest manufacturing” after the last audit, carried out by WCM teams last week.
  • 31. 3. TOFAŞ Tofaş has been the best of the world in manufacturing, now it will set a model for Chr ysler’s world beside Fiat’s. (18.11.2009) FiatGroup’s CMO (Chief Manufacturing Officer) who has come to Turkey for the ceremony on Tofaş’s being chosen as the best factory; Stefan Ketter explained, “Making R&D and manufacturing of important models like Fiat Fiorino, Linea and Doblo, Tofaş’s place in the Fiat’s world as is very strong without any dispute. Tofaş’s success globally is a true example of discipline, quality and success in this period when Fiat and Chrysler factories are in common action in terms of production in world’s class”.
  • 32. World Class Manufacturing Stefan Ketter Lingotto - November 8 & 9, 2006
  • 33. WCM Focus All Employees Waste and Losses Standards and Methods Lingotto - November 8 & 9, 2006 2
  • 34. Structure/Objectives Workplace Quality Maintenance Logistic Organization Total Industrial Total Quality Total Productive Method Control Maintenance Just in Time Engineering & std. Quality Technical Service Focus Productivity Improvement Efficiency Level zero zero zero zero Target waste defects breakdowns inventory Values People involvement, value creation, customer satisfaction Lingotto - November 8 & 9, 2006 3
  • 35. 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 Lingotto - November 8 & 9, 2006 4
  • 36. WCM Principles 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 Lingotto - November 8 & 9, 2006 5
  • 37. Main Actual Activities 2005A 2006E 2007E WCM Basics / Safety Training / Leadership / Organisation Cost Deployment Investments & Fix Plants Labour efficiency / Capacity Utilization Environment / Ergonomy Maintenance Process Quality Process Improvement Logistic Process Time Lingotto - November 8 & 9, 2006 6
  • 38. Actual Best Results/WCM Audit Workplace Organization Quality Maintenance Logistic Methodologies 1 Safety New approach 2 Cost Deployment 100 % plants 3 Focused Improvement 147 events 4 Work Place Organization 7 model areas 5 A.M.: Autonomous Maintenance 58 model areas 6 P.M.: Professional Maintenance 34 model areas 7 Quality Control 10 model areas 8 Production Logistic System 4 model areas 9 Early Equipment Management First exercises 10 People development/qualification New approach 11 Environment New approach 100% Lingotto - November 8 & 9, 2006 7
  • 39. Model Area: Tychy/Poland People Involvement: Proposals/Employee/Year 4,5 Target = 4 4,0 3,5 3,0 2,5 Implementation 2,0 rate 50% 1,5 1,0 0,5 0,0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Lingotto - November 8 & 9, 2006 8
  • 40. Model Area: Melfi Quality: Electric Check Defects - Grande Punto - 50% Lingotto - November 8 & 9, 2006 9
  • 41. Model Area: Melfi Productivity: Hours per Vehicle - Grande Punto -12% in 8 months Lingotto - November 8 & 9, 2006 10
  • 42. Average Hours/Vehicle Vs. Benchmark (Harbour Report) - 20%* Segment Ranking A Leadership B Leadership C Top 5 D Top 10 LCV Leadership 2006E 2010E * As result of new vehicle introduction Lingotto - November 8 & 9, 2006 11
  • 43. Labour Productivity Target (Italy/Poland) 100% Technical efficiency Losses Waste/Rework - 30% Losses Line Balancing Range - 50% Non Value Added • Logistic layout • Time Optimization Operation Operation Actual 2010E Lingotto - November 8 & 9, 2006 12
  • 44. Towards World Class Manufacturing 100 90 Competitive Consolidation / 80 Level Autonomous 70 Improvement 60 Horizontal expansion 50 40 30 Knowledge Saving: > €500mn 20 creation Model areas 10 2006E 2007E 2008E 2009E 2010E 0 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 Lingotto - November 8 & 9, 2006 13
  • 45. WCM - Extension towards Suppliers Cost Quality Maintenance Logistic Q M L € SUPPLIER World Class Manufacturing integration/extension throughout Supplier Process Engineers Lingotto - November 8 & 9, 2006 14
  • 46. WCM - A Corporative Approach WCM Implementation, Auditing and Best Practice Sharing Lingotto - November 8 & 9, 2006 15