Optimizing Process Performance

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German-Japanese joint venture Freudenberg-NOK embeds continuous improvement in its DNA, through its own “Growtth” program- Get Rid of Waste Through Team Harmony. Global Quality Manager Carlos E. DaSilva describes how the award winning $1 billion maker of elastomeric seals and vibration control products constantly makes better use of time, people and materials. Presented during 2009 Hannover Fair.

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Optimizing Process Performance

  1. 1. Carlos Eduardo DaSilva Global Quality Manager Vibracoustic North America A Division of Freudenberg-NOK General Partnership Hannover Fair – Hannover, Germany – April 2009 Operational Excellence Optimizing Process Performance
  2. 2. The Freudenberg Group <ul><li>The Freudenberg Group comprises 14 Business Groups and two divisions operating independently on various markets all over the world. Our actions are motivated by the search to find the best solutions for our customers, since our own success is based on theirs. This has been the case for the last 160 years and remains our pledge for the future. </li></ul><ul><li>We are therefore intensely committed to developing our ability for innovation in all fields even further. </li></ul><ul><li>As a family company, we are guided by our long-term orientation, financial solidity and the excellence of our people in 53 countries around the globe. </li></ul>Operational Excellence Optimizing Process Performance [email_address] +1 (603) 361 8303
  3. 3. Organization Operational Excellence Optimizing Process Performance [email_address] +1 (603) 361 8303
  4. 4. Global Presence Locations in 53 countries Operational Excellence Optimizing Process Performance [email_address] +1 (603) 361 8303
  5. 5. Corporate Culture People Leadership Responsibility Innovation Value for Customers The Guiding Principles are a short version of the Groups Business Principles, summarized for our employees around the world, our business partners and the public at large. Guiding Principles Operational Excellence Optimizing Process Performance [email_address] +1 (603) 361 8303 Long Term Orientation
  6. 6. Operational Excellence Optimizing Process Performance [email_address] +1 (603) 361 8303 Safety Safety Empowerment Through Team Harmony SETTH
  7. 7. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence Business Group : Freudenberg-NOK
  8. 8. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence Our business model is based on leading edge Technology combined with the relentless pursuit of operational excellence through the Growtth ® (Get Rid of Waste Through Team Harmony) continuous improvement program. Business Group : Freudenberg-NOK
  9. 9. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence <ul><li>Headquarters: Plymouth, Michigan </li></ul><ul><li>Established July 1, 1989 </li></ul><ul><li>General Partnership between Freudenberg of Germany and NOK of Japan </li></ul><ul><li>Integrates Japanese, German, and American Technology </li></ul><ul><li>30 Locations in the Americas </li></ul><ul><li>Designs and Manufactures: </li></ul><ul><li>Seals & Gaskets </li></ul><ul><li>Custom Molded Rubber Products </li></ul><ul><li>PTFE & Plastic Components </li></ul><ul><li>Anti Noise, Vibration & Harshness Products </li></ul><ul><li>Brake Hoses </li></ul><ul><li>Rebuild Kits </li></ul>Business Group : Freudenberg-NOK
  10. 10. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence + Vibration Vibracoustic = Acoustic We convert noise and vibration into sound and comfort. www.vibracoustic.com Vibracoustic North America
  11. 11. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence <ul><li>Lean Thinking Case Study </li></ul><ul><li>Aggressive Six Sigma Program </li></ul><ul><li>Supply Chain & Outsourcing Initiatives </li></ul><ul><li>Product Development Best Practices Leader </li></ul>Best Practices – World Class Processes
  12. 12. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence <ul><li>Narrow Product Mix </li></ul><ul><li>Short Lead Time </li></ul><ul><li>Minimal Waste; Low Cost </li></ul><ul><li>Motivated, Trained, Empowered, </li></ul><ul><li>Entrepreneurial, Employees </li></ul><ul><li>Highly Predictable, High Performance </li></ul><ul><li>Business and Manufacturing Processes </li></ul>Characteristics <ul><li>Continuous Improvement Culture </li></ul><ul><li>Highly Responsive to Customers </li></ul><ul><li>High Span of Control </li></ul><ul><li>Product Team Organization Structure </li></ul>Focused Factory Offices and Team Rooms Dock Administration
  13. 13. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence Mold Sit Spring QC Inspect Ship Trim Sit Sit Sit QC Inspect Sit Pack Spring Trim Mold Shipping Packing QC Vision System From Conventional to Lean Manufacturing
  14. 14. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence Decision Based in Facts
  15. 15. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence Changing Behavior TEAM BEHAVIOR Management INDIVIDUAL BEHAVIOR SKILLS INDIVIDUAL BEHAVIOR SKILLS INDIVIDUAL BEHAVIOR SKILLS INDIVIDUAL BEHAVIOR SKILLS EXECUTION ATTITUDE COMPETENCE ATTITUDE COMPETENCE Assurance ATTITUDE COMPETENCE ATTITUDE COMPETENCE Assurance KNOWLEDGE KNOWLEDGE KNOWLEDGE KNOWLEDGE
  16. 16. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence PROCESSES CONTROLS PEOPLE Key Concept
  17. 17. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence MANAGEMENT LEVEL Product Assurance ENGINEERING LEVEL Quality Control OPERATOR LEVEL Business Management Effectiveness Efficiency KPC KPP KPI KPP – Key Process Parameters / KPC – Key Product Characteristics / KPI – Key Performance Indicator Key Metrics
  18. 18. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence People Improvement Since 1993, we reported over 75,000 times that people participated in continuous improvement activities
  19. 19. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence Process Improvement Over 31,000 times in 16 years we improved processes, saving more than US $225 million between 2000 and 2006.
  20. 20. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence Control Improvement 189 Black Belt Projects Completed 197 Green Belt Projects Completed 67 Certified Black Belts 482 Certified Green Belts
  21. 21. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence Production Preparation Process – 3P A. Information Phase - Define Proposed State B. Creative Phase - Kaizen C. Redefine Phase - Define New Proposed State Freudenberg-NOK team collecting data during the simulation of a future production cell.   Example Before After People 27 9 Floor Space (sq. ft.) 3500 1100 Distance Traveled >100 mi. 21 ft. Production Lead Time 21 Days 7 hrs. Mfg. Cost (indexed) 100 71 Capital Cost (indexed) 100 57
  22. 22. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence Vibracoustic Performance Recognition
  23. 23. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence Established in 1988 to promote an awareness of lean manufacturing concepts and to recognize companies that achieve world-class manufacturing status. The Nobel prize of manufacturing is named for Japanese industrial engineer Shigeo Shingo, one of the world’s leading experts in improving manufacturing process. He helped create the renowned Toyota Production System. Dr. Shingo is the author of A Study of The Toyota Production System and The Shingo System for Continuous Improvement . The Shingo Prize
  24. 24. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence <ul><li>6 Manufacturing Sites </li></ul><ul><ul><ul><li>Manchester, NH Gaskets </li></ul></ul></ul><ul><ul><ul><ul><li>Manchester, NH Vibracoustics </li></ul></ul></ul></ul><ul><ul><ul><ul><li>LaGrange, GA </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Cleveland, GA </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Shelbyville, IN </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Ligonier, IN VCT </li></ul></ul></ul></ul>Shingo Prize at Freudenberg-NOK
  25. 25. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence FOR ALL “ EFFECT ” WE CAN TOGETHER FIND A CAUSE Journey to Excellence
  26. 26. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence <ul><li>For converting from Batch to Lean </li></ul><ul><li>Lessons learned by Freudenberg-NOK during 16+ years of Lean Transformation </li></ul><ul><ul><li>A few examples . . . </li></ul></ul>Secrets to Success
  27. 27. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence <ul><li>Top Down </li></ul><ul><li>A champion at the top of the organization is critical to success. </li></ul><ul><ul><li>The champion sets the agenda for the organization. </li></ul></ul><ul><ul><li>The champion controls the resources. </li></ul></ul><ul><ul><li>The champion (top executive) must be engaged in the transformation. </li></ul></ul><ul><ul><ul><li>Kaizen participation </li></ul></ul></ul><ul><ul><ul><ul><li>Team member </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Report outs </li></ul></ul></ul></ul><ul><ul><ul><li>20% of time in year one </li></ul></ul></ul><ul><ul><li>The champion must understand lean well enough </li></ul></ul><ul><ul><li>to lead the transformation unwaveringly. </li></ul></ul>Secrets to Success #1
  28. 28. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence Secrets to Success #2 <ul><li>Certification Process </li></ul><ul><li>Purpose: </li></ul><ul><ul><li>Train internal experts – Black Belts </li></ul></ul><ul><ul><li>Train internal practitioners – Green Belts </li></ul></ul><ul><li>Benefit: </li></ul><ul><ul><li>Systematic approach to educate and train both the internal expert and the rest of the organization in lean systems </li></ul></ul><ul><li>Drive certification through policy deployment. </li></ul><ul><li>Make promotions conditional upon certification. </li></ul>
  29. 29. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence Secrets to Success #13 <ul><li>Quantify, Track, Report Improvements </li></ul><ul><li>“ You can improve what you measure.” </li></ul><ul><li>Some believe that because eliminating waste (implementing lean) is inherently the right thing to do, the results don’t need to be quantified. Freudenberg-NOK believes that waste costs money. If we are doing a good job of eliminating waste, we should save a lot of money. It’s about focus! </li></ul><ul><ul><li>Get the finance team to develop a method for converting lean improvements to $ saved. </li></ul></ul><ul><ul><li>Involve the finance team in periodic reporting of results. </li></ul></ul><ul><ul><li>Measuring lean improvements is inexact. Strive for a reasonable estimation of savings or benefits without creating bureaucracy. </li></ul></ul>
  30. 30. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence <ul><ul><ul><ul><ul><li>Quality Drives Market Share </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>GROWTTH Drives Growth </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Technology Sets Us Apart </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Bureaucracy Is The Enemy </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Communicate, Participate, Celebrate </li></ul></ul></ul></ul></ul>Business Imperatives
  31. 31. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence Questions?
  32. 32. Optimizing Process Performance [email_address] +1 (603) 361 8303 Operational Excellence Thank You! Carlos Eduardo DaSilva Global Quality Manager + 1(603) 628 7113 [email_address]

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