From push to pull in IT by Faurecia

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Catherine Faurecia, IS governance and Bertrand Eteneau CIO of Faurecia presented how IT creates value for the users with lean IT.
More Lean IT presentations and videos on www.lean-it-summit.com

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From push to pull in IT by Faurecia

  1. 1. Copyright © Institut Lean France 2013 3 & 4 October, 2013 Paris, France From push to pull in IT: learning to create value for users is not a long, quiet river
  2. 2. Copyright © Institut Lean France 2013 Faurecia overview 2012 key figures 94,000 employees 320 sites 34 countries Group revenues: €17.4 billion 30 R&D centers 5,500 R&D engineers and technicians 460 patents filed in 2012 Annual R&D investment: €943 million 5.4% of revenues 2 3 & 4 October, 2013 Paris, France 6th largest automotive equipment supplier (2012 revenues €bn) 1. Bosch 2. Denso 3. Continental 4. Magna 5. Aisin Seiki 6. Johnson Controls 6. 8. Hyundai 9. ZF 10. Yasaki 11. Lear 12. Delphi 13. TRW 14. BASF 15. Valeo 16. Sumitomo 17. Toyota Boshoku 18. JTEKT 19. Hitachi 20. Cummins 17.4 N°6 ° worldwide worldwide equipment equipment supplier supplier
  3. 3. Copyright © Institut Lean France 2013 3 & 4 October, 2013 Paris, France Operational Excellence driven by the Faurecia Excellence System Renault Global Quality award Ford Silver World Excellence Award General Motors Supplier Quality Excellence Award 9 Awards for Chinese sites, including Dongfeng Nissan Excellent Quality Performance Quality : steady PPM rate at 18 3
  4. 4. Copyright © Institut Lean France 2013 3 & 4 October, 2013 Paris, France Back in 2006 Low cost IT, poor customer focus Limited investments on value added projects 15% Impact of new projects Patchwork of systems Seating Interior Components BM 400 Mfg Pro 85 % Running existing systems Exhaust
  5. 5. Copyright © Institut Lean France 2013 Go and see Objectives : • go and see for yourself • understand user needs • analyze incidents • control standard execution 3 & 4 October, 2013 Paris, France
  6. 6. Copyright © Institut Lean France 2013 Findings in 2006 Need to Improve the local support & proximity with users 3 & 4 October, 2013 Paris, France IT Budgets limited as COMEX unsure of IT delivery a real project management capability was needed Need to support Faurecia growth and develop worldwide operations
  7. 7. Copyright © Institut Lean France 2013 3 & 4 October, 2013 Paris, France The challenge was : we had to move from a technical, « push mode » IT: « I can’t help if users do not use correctly the system » to a customer / process focus, « pull mode » IT: « Let’s try and understand their needs »
  8. 8. Copyright © Institut Lean France 2013 3 & 4 October, 2013 Paris, France Refocus on business value Business targets . Processes . Standards Project Management Technicals . IT Applications . IT Infrastructures Change . Trainings . Realign to standards
  9. 9. Copyright © Institut Lean France 2013 3 & 4 October, 2013 Paris, France How ?
  10. 10. Copyright © Institut Lean France 2013 3 & 4 October, 2013 Paris, France Explore TOYOTA WAY KAIZEN STANDARDS JIDOKA JUST IN TIME CUSTOMER SATISFACTION
  11. 11. Copyright © Institut Lean France 2013 3 & 4 October, 2013 Paris, France Customer satisfaction Reliability of IT services Jidoka, kaizen, standards
  12. 12. Copyright © Institut Lean France 2013 3 & 4 October, 2013 Paris, France Switch issue • production line stopped in the plant 1h30 • an IT switch had to be rebooted 1h30 outage Switch issue Other cause ? Time to detect No monitoring on switch ? No alert from monitoring
  13. 13. Copyright © Institut Lean France 2013 Switch issue 3 & 4 October, 2013 Paris, France • 1h + was spent finding a forklift and a certified operator • to reach the switch, located high above production lines 1h30 outage Switch issue Not an IT standard Enforced by contractor when building plant Other cause Time to detect No monitoring on switch Time to reboot No alert from monitoring Too high Prevent damage when handling products Forklift & operator unavailable
  14. 14. Copyright © Institut Lean France 2013 Switch issue 3 & 4 October, 2013 Paris, France • What would have happened before : - Nothing (service restored) - At best change the switch in the plant - Or challenge the monitoring solution • What we try to do now : - Confirm why it happened : new plant building process - Confirm why we did not see it coming : IT FMEA done too late and not complete - Correct to prevent re-occurrence in that plant - Address risk in all plants : IT standards, Building standards
  15. 15. Copyright © Institut Lean France 2013 Learn from incidents 3 & 4 October, 2013 Paris, France 15
  16. 16. Copyright © Institut Lean France 2013 Standards 3 & 4 October, 2013 Paris, France
  17. 17. Copyright © Institut Lean France 2013 3 & 4 October, 2013 Paris, France Our Jidoka process • • • • • • • Create standards Define conditions for IT alerts (gap vs standard) Restore service asap (protect the customer) Analyze potential factors -> reduce scope Dig down to root causes (5 whys) Change local standard (or create it) Transversalize
  18. 18. Copyright © Institut Lean France 2013 3 & 4 October, 2013 Paris, France And measure user satisfaction Problems to investigate
  19. 19. Copyright © Institut Lean France 2013 3 & 4 October, 2013 Paris, France Customer satisfaction Work on ergonomy
  20. 20. Copyright © Institut Lean France 2013 3 & 4 October, 2013 Paris, France Ergonomy 5 windows 8 Clicks Click on Apply to save the modification Click in the fields to change: the quantity value or F/N value or Ref Des value Source : Magellan user documentation Before : 5 windows, 8 clicks After : drag and drop
  21. 21. Copyright © Institut Lean France 2013 3 & 4 October, 2013 Paris, France Ergonomy Use cases defined, regular reviews with users
  22. 22. Copyright © Institut Lean France 2013 3 & 4 October, 2013 Paris, France Create value Standard solutions Improve data flows
  23. 23. Copyright © Institut Lean France 2013 3 & 4 October, 2013 Paris, France Understand big picture CUSTOMER DEVELOPMENT OPERATIONS Plant R&D CENTER Plant CONTRACT Design Simulations Capex, tooling Change management START-UP Operational excellence Plant management Cost, PPM, MPM
  24. 24. Copyright © Institut Lean France 2013 Complexity increases MORE AND MORE BEFORE Supplier 1 3 & 4 October, 2013 Paris, France Plant Supplier 1 Supplier 2 Crossdock Supplier 2 Supplier 3 Plant 1 Consolidation center Supplier 3 Plant 2 Self billing invoicing Supplier 1 Supplier 1 Supplier 2 Supplier 3 Just in Time plant Customer Product invoicing Assembly invoicing Supplier 2 Supplier 3 Just in Time plant Customer
  25. 25. Copyright © Institut Lean France 2013 3 & 4 October, 2013 Paris, France IT needs for a lean company • Standards (re-use), yet offering flexibility and reliability • Leveling tools • Measurement, transparency on key process steps (make problems visible) • Alert systems (Jidoka)
  26. 26. Copyright © Institut Lean France 2013 3 & 4 October, 2013 Paris, France Develop standard applications – Plant functions (production, logistics, finance, purchasing) – JIT (Just In Time) systems – Traceability systems – Supply leveling systems – Workflow tools – Data mining tools …
  27. 27. Copyright © Institut Lean France 2013 3 & 4 October, 2013 Paris, France Our first breakthrough From unleveled – pushed flow To leveled – pulled flow => Stock decrease Manifest Order DN Manifest Invoice DN n° Invoice Manifest n°
  28. 28. Copyright © Institut Lean France 2013 Support stock reduction Starts with data accuracy JIT calls Production & scrap declaration Production Backflushing out in Scheduling T arget = 100% Good Deliveries % RFT Target Linéaire (% RFT) NRFT - Receiving Progress 100,00% 80,00% 60,00% 40,00% 20,00% 2/2 01 3 2/2 01 3 2/2 01 3 1/2 01 3 1/2 01 3 1/2 01 3 1/2 01 3 1/2 01 3 1/2 01 3 1/2 01 3 1/2 01 3 RM & BOP inventory MRP Quality Inspection / product returns 05 /0 03 /0 01 /0 30 /0 28 /0 26 /0 24 /0 22 /0 20 /0 18 /0 16 /0 1/2 01 3 1/2 01 3 1/2 01 3 14 /0 12 /0 10 /0 1/2 01 3 0,00% 1/2 01 3 Cycle counting Receiving 120,00% 08 /0 Part creation 06 /0 ECM process 3 & 4 October, 2013 Paris, France 28
  29. 29. Copyright © Institut Lean France 2013 Alerting and reacting 3 & 4 October, 2013 Paris, France
  30. 30. Copyright © Institut Lean France 2013 3 & 4 October, 2013 Paris, France Help plants re-align to Group Standards Generic change toolkit
  31. 31. Copyright © Institut Lean France 2013 See together 3 & 4 October, 2013 Paris, France Logistics Accounting
  32. 32. Copyright © Institut Lean France 2013 3 & 4 October, 2013 Paris, France Toyota Way
  33. 33. Copyright © Institut Lean France 2013 3 & 4 October, 2013 Paris, France Toyota Way Source : TOYOTA MOTOR CORPORATION GLOBAL WEBSITE (2001)
  34. 34. Copyright © Institut Lean France 2013 3 & 4 October, 2013 Paris, France Growth supported by new IT Centers, no outsourcing Czech Rep Portugal Mexico Tunisia China India 34
  35. 35. Copyright © Institut Lean France 2013 3 & 4 October, 2013 Paris, France Develop autonomous teams Customer expectations ? Make performance visible Ensure teams are autonomous on continuous improvement Develop capacity to solve complex problems
  36. 36. Copyright © Institut Lean France 2013 3 & 4 October, 2013 Paris, France Where are we today ? Open questions
  37. 37. Copyright © Institut Lean France 2013 3 & 4 October, 2013 Paris, France Open points – next steps • Are we solving the right problems? • Are we driving sufficient business value ? • How can we better support product development ?

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