Using Lean to Create Global Competiveness!

UTVIKLING AV GLOBAL
KONKURRANSEDYKTIG
PRODUKSJON BASERT PÅ LEAN.
November 21, 2012
Stian Henriksen & Erik Løkke-Øwre

2 Business Confidential  Copyright Renewable Energy Corporation ASA. All Rights Reserved  xxxxx xxxx
RBS
Hvem er Stian og Erik?
Erik Løkke-Øwre
 Utdannelse – Økonom fra BI
 Arbeidserfaring
– Elkem 1989-2007: Controller,
Produksjons- og Fabrikksjef stillinger,
Divisjonssjef Silisium, Leder for Elkem
Solar.
– Hydro Aluminium Metals 2007 –
Utvikling og innføring av AMPS.
– REC Solar 2008- dd: Leder for
produksjon, innkjøp og teknologi
 Lean erfaring
– Fom 1997 ved Elkem Aluminium
Mosjøen
– Primært fra lederstillinger i divisjon,
produksjon, teknologi og innkjøp.
Stian Henriksen
 Utdannelse – Sivilingeniør Indøk, NTNU
 Arbeidserfaring
– ScanWafer: prosessingeniør,
assisterende produksjonssjef, Lean
ansvarlig
– TPM Team: Konsulent innen Lean
– REC: Director REC Business system,
Norge og Singapore
– 2012: Fabrikksjef, Moelven ByggModul
 Lean erfaring
– År 2000 v/NTNU: Hva er verdensklasse?
– Fra produksjonssystem til praktisk
forbedringsarbeid for økt
konkurransekraft

RBS
Create a future by using lean!
TPS
-500
0
500
1000
1500
2000
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004
MNOK Cyclical GrowthStable
Market
cap:
NOK 200
million
NOK + 20
billion
0
5
10
15
20
25
30
35
40
EBIT development
Total recordable
injury rate (H2)
Ole Enger – Oct 2011
- The transformation of Elkem:
Stian H. & Erik LØ. – Nov 2012
- Creating Competiveness for REC
RBS
0.6
1.1
1.4
1.8
3.0
3.1
3.2
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2009
-80%
201220112010200820072006
Solar panel price development Euro/Watt

RBS
Our 4 Basics to develop a lean business / production system.
 Process Thinking - Predefine standards to achieve expected results
– Process or happening?
– No standard, no improvement
– Predefine standards, connections and flow for the 4M’s
to get a predictive process meeting targets.
 Control leading indicators, not lagging
– Understand – Stabilize - Improve
– Variation is our enemy!
 Lean is organizational development – involve!
– Value is created on the ‘shop floor’
– Leaders - Become a trainer and ‘Live the System’
– Experts – all levels must use the system – discipline
 Always trust the system
– Everybody!
– Never compromise HSE and Customer Quality
– Eliminate jobs and words that shows no system and no understanding:
Example: Coordination/Coordinator
PROCESSESINPUTS
OUTPUTS
Man Method
Machine Material
RBS

5 © 2012 REC All rights reserved. Confidential
REC Peak Energy modules installed on a commercial rooftop in northern Spain
Agenda
 Solar Industry and REC
 REC Singapore
 Using lean to Create Competitiveness
 Lean implementation in REC Singapore
 Success criteria and summing up

RBS
Solar Industry
- Significant overcapacity leads to price reduction and industry restructuring
60.4
54.154.9
5.3
59.9
Global Capacity significant above demand in
2012 (GW)
Capacity
Silicon CellWafer
30.6
Module Thinfilm
Demand
27
18
8
6
0
5
10
15
20
25
30
35
40
45
50
+23%
+64%
2014
50
31
2013
36
26
2012
35
26
2011201020092008
CAGR
Market Growth
Annual installations - Wp Conservative
Optimistic
CAGR
Source: Bloomberg New Energy Finance, Industry analysts
1 2
3 4

RBSA great opportunity
Supplying the world with enough and sustainable energy is the future’s largest enterprise!
Solar energy is one of the obvious solutions to the world’s electricity demands.

A 24 MW installation in Italy completed by REC Systems
Agenda
 REC Singapore
 Lean implementation in REC
Singapore

RBS

RBS
REC Singapore TUAS Site using RBS/lean for improvements
- increasing capacity through debottlenecking
Process
Layout
Factory 1
Ingot casting
and wafering
Factory 2
Chemical and
Mechanical
Line 1
Line 2
Line 3
Line 4
Line 5
Line 6
Line 7
Line 8: Gold
2 factories 8 lines in 2 floors
Wafer Cell
4 lines in 2 floors
Line 1
Line 2
Line 3
Line 4
T1
T2
T1
T2
T1
T2
T1
T2
EU
APAC
US
Assembly
Modules
CAPACITY
Capacity:
Design 740 MW
Current 700 MW
Capacity :
Design 550 MW
Current 700 MW
Capasity:
Design 590 MW
Current 840 MW
Sales
170 mill pieces170 mill pieces 3.3 mill pieces
Main
Markets

RBS
‘First Things First’
Safety and Customer Quality performance per Oct 2012
CustomercomplaintsPPM,
SingaporeModule
21
56
99 81
13
202 210
56 48 53
.0
50.0
100.0
150.0
200.0
250.0
J F M A M J J A S O N D
Month
Acc 12M
Target
PPM
LTIandTRI-rates
acc12mnthrolling
0.0
1.3
0
2
4
6
8
N D J F M A M J J A S O
LTI rate TRI rate
REC Singapore,
Visuals at the gate

RBS
2 4
31
Other Material cost improvementsManning reduction
Improved changeover time wafer furnacesModule Power
2012
Q3
2010
Q1
2012
Sept
2011
Sept
2012
Q4
2010
Design
2012
Q4
2010
Q4
1.629
1.380
No of employees
225 W
250 W
Average watt per module Changeover time -min
278 min
28 min
Other Material Cost - indexed
100%
39%
REC Singapore examples of KPI developments
– based on RBS in technology, sourcing and operations

RBS
REC Solar – practical results of RBS/lean as our way of working.
Cost and Quality improvements in Singapore continue (REC Q3 presentation)
57
52
48
42
2
7
Q2’12
81
10
10
9
Q4’11
101
18
15
11
7
Q3’12
65
8 7
2
Q4’12
58
End Q1’13
~52
Silicon at market price
Cash conversion cost*
Depreciation
SG&A and R&DModule cost
€cents/watt
* Cash cost of converting polysilicon into modules. Includes freight.
target target
Module watt class
Percent of produced modules
16%
50%
60%
85%
50%
Q2’12 Q3’12Q1’12
99%
1%
84%
40%
Q4’12 Q1’13
15%
Above 250W
Below 250W
target target

REC Peak Energy modules installed on a commercial rooftop in northern Spain
Agenda
 REC Singapore
 Lean implementation in REC Singapore

RBS
What creates World Class results?
What is differentiating us from our
competitors?

RBS
Success factors to create world class operations
Understand your
business case
Build a world-
class business
system
Build a
world-class
organization
1 2
3

RBS
By:
1. Delivering Fast Cost
Reductions to become a cost
leader.
2. Quality:
Module Performance in the
field (25 years performance
warranty).
Power production higher than
design capacity
Cell Processing Cost 2012 ( incl Depreciation)
Our Business Case
- Make REC Singapore the winner in the Solar Industry
1

RBSWhat creates world class results?
What is differentiating us from our competitors?
Man
Method
Machine
Material
Input Output
Cause Effect
Safety
Quality
Delivery
Cost
Measurementsystem
REC
BUSINESS
SYSTEM
RBS
2

RBS
REC Business System – RBS
2

RBS
RBS PRINCIPES
- THE LINCHPIN OF THE SYSTEM
Standardize all activities
Customer-supplier connection
Optimize flow
Improvements & Problem solving
1
2
3
Basic design
of the system
4
Developing
the System
Standard
method
& execution
Supplier
Customer
3
1
2
4
A 3
Business
Case
Current
Condition
Target
Measure
Action plan
1. UNDERSTAND YOUR BUSINESSCASE
Problem
Team
2. ORGANIZE YOUR PEOPLE
3. DESIGN AND IMPROVE YOUR SYSTEM – USE OUR RULES IN USE (RiU)

RBSREC Solar Business System – RBS
Understand and realize potential of present technology
WASTE REDUCTION
DISCIPLINE
5S
ACCURATE FACTS, FIGURES &
VISUAL MANAGEMENT
STABLE & RELIABLE PROCESSES (4M)
CONTINUOUS IMPROVEMENT & SYSTEMATIC PROBLEMSOLVING
0 DEFECTSPERFECT FLOW
HSE & QUALITY
R E C I D
CUSTOMER SATISFACTION
BEST SAFETY - BEST QUALITY
SHORTEST LEAD TIME - LOWEST COST
LEVELING
RBS PRINCIPLES
STABILITY
&
CONTINUOUS
IMPROVEMENTS
UNDERSTAND PRESENT TECHNOLOGY
TECHNOLOGY
DEVELOPMENT & VALIDATION
REALIZE THE POTENTIAL
OF PRESENT TECHNOLOGY
INDUSTRIALIZATION
TECHNOLOGY
STEP CHANGE
Key tools and methods:
– ICCM (CPM)
– technology transfer
program
– best manufacturing
practices

RBS
Process flow mapping
incl SIPOC
Focus diagram
Product and process
control plan
Failure mode and
effect analysis
Control chart/ SPC/
Simulation
Out of control action
plan (OCAP)
Technology and Operations - process understanding
- ICCM: Understand, stabilize and improve our processes
Process transformation
ptypeBulk
ntypeEmitter
p+Al BSF
Almetal Almetal Almetal
Ag/Albusbar Ag/Albusbar
Agbusbar
SiNxlayer
Measurement system
analysis
2

RBS
ICCM (CPM – Critical Process Management)
- In practice
CPM board at SingWafer
Content
-Focus diagram
- SPC
- Baseline Check daily
- Equipment Status
- Experiments
- RCA
-Action list
Daily Meeting at 08.00 – 08.15.
- Cross functional participation
Stable process at Scancell
-Understand, Stabilize, Improve.
ScanCell 2009 – Cell efficiency
1
2
34
5
6
1
2
3
4
5 6
7
7
SingWafer 2012 – CPM board

RBSREC Solar Business System - RBS
Stability & Continuous Improvements
WASTE
REDUCTION
DISCIPLINE
5S
ACCURATE FACTS, FIGURES &
VISUAL MANAGEMENT
CONTINUOUS IMPROVEMENT & SYSTEMATIC PROBLEMSOLVING
LEVELING
HSE & QUALITY
R E C I D
RBS PRINCIPLES

RBS
REC Singapore
- Visual Management examples
Module production
- Real time on-line
status
- Both in the offices
and on the shop
floor
Cell production:
- Electronic daily
board for use in
management
morning
meetings

RBS
Layered Audit
(Job observation)
Stasjon: Rev.nr: 1.0
Dok.nr: Elem.nr: 3
Bilde Nr
1
2
3
4
5
Forfatter:
Dato:
Elementnavn: Plassèr ny screen på aluramme
Stein Iversen
16.12.2008
SCN 2 Print 1
SCN02PRPR1S0200
Ta frem ny screen Dra screen ut ca 15 cm fra skapet.
For å kunne få godt og
sikkert tak i screen med
begge hender.
7
Hva: Hvordan: Hvorfor:
Tid
Løfte screen ut av skapet.
Ta tak i screen med begge hender å dra
screen stående helt ut av skapet.
For på en sikker måte få
screen ut av skapet.
Løft screen opp mot lyset.
Løft screen opp med undersiden mot
deg, slik at screenområdet er vendt mot
lyset.
Kvalitessikre screen.
For å kunne
kvalitetssikre screen på
en enkel måte.
For at kameraene skal
oppdage fiducial points,
og at pasta ikke skal
renne igjennom scn 1
fiducial points.
Legg screen i aluramme.
Snu screen å legg screenen på
alurammen som ligger på høyre side på
bordet. PS: Låsesplinten skal være mot
deg.
Screen plasseres i
aluramme i påvente av
å bli satt inn i print.
Se at alle 6 fiducial points er rene og
klare og at scn 1's 4 fiducial points er
tapet. Påse deretter at hele screen er
hel og ren.
1 2
3
4
Standardized work
Action
 The standard represents the best
known method as we know it
today
 All work must be standardized in
detail in the element sheet with
time, what, how and why.
FOLLOWUP
IMPROVE
Action
 Does the operator follow the
standardized work?
 Is the operator at the right competence
level according to the competence
matrix?
 Are there any improvement
opportunities?
Competence Matrix
 All improvements opportunities must
be written down on the action list:
problem owner, due date, status
 The competence matrix must be
updated according to findings on the
audit
 System developed in ScanCell in Norway
 Best practice developed by operators with support from HES, Q
and Process Engineers.
 Done in RPS improvement teams where operators can focus on
doing improvements
 This improvement model is transferred to Singapore.
SFM - Shop floor management.
- Key program to build stable and reliable processes and where we operationalize
technology understanding into the Work Instructions.
2

RBS
REC Cells TPM MILESTONES – AM STEP 1
02 03 04 05
TPM Outreach
Promotional
Awareness
Apr 2011
PKE Training
For BU’s
Facilitators
May 2011
Pilot Line
Selection
Jun 2011
TPM
Master Plan
Jun 2011
07
08
01
TPM Facilitator
Hired
Mar 2011
091112
TPM Intro
Training For
All
May 2011
TPM Logo
Design
Contest
Apr 2011
06
Established Short &
Long Term Plan
Mar 2011
10
Team
Formation
Jun 2011
Initial Tagging &
Cleaning
Jun & Jul 2011
AM Step
1 Audit
End
Sep2011
AM & PM Tags
Management
Jul-Sep2011
AM
STEP 2
2

RBS
TPM – AM: Results achieved by Modules in pilot phase
Module Production line - Breakdown reduction

RBSREC Business System - Overview
Build a Robust System Infrastructure based on PDCA
System
REC Business
SYSTEM
Implementation Toolbox & Documentation
Audit/Check
REC Solar
Division
SingCell
SingModule
ScanCell
ScanModule
……?….. ……?…..
RBS Network
3 days 3 days 3 days 3 days 3 days 3 days
Subject
Introduction to Lean
The role of the leader in
daily production
PDCA in visual
management
How and when to escalate
problems
Module 2
Standardized work
as a management
tool
Module 3
5S
TPM and operator
maintenance
Module 4
Advanced
standardized work
Job observation
Module 5
Managing
improvement activities
Module 6
Systematic problem
solving
Subject
Standardization and
REC’s rules in use
What, why and how
standardized work
Teaching and training in
how to set a standard
Leadership connected
to standardized work
Subject
man-machine and other
standardization tools
to improving standards
Subject
How to work
systematically with
continuous improvement
A3 as a tool for
systematic improvement
Training in leading
KAIZEN events
Subject
systematic problem
solving
Training in Apollo RCA
Six sigma
Preparation
Read through some
material
Prepare homework task
Homework
Develop an element of a
visual management
system
Preparation
Prepare presentation of
your homework
Read theory
Homework
Develop standards in
your own work place
Develop competence
matrix in your own team
Preparation
your homework
Read theory
Homework
Make a man-machine
setup
Develop or improve your
own job-observation
routines
Preparation
your homework
Read theory
Homework
Perform a kaizen event
at your own workplace
Preparation
your homework + bring
a problem from your
workplace
Read theory
Final exam
Final exam to graduate
Module 1
REC Production
System
Visual management
Subject
What, why and how 5S
& TPM
Training in 5S and step
0-3 in operator
maintenance
Training in leadership
connected to the tools
Preparation
your homework
Read theory
Homework
Perform 5S activities in
your own work place
3 days 3 days 3 days 3 days 3 days 3 days
Subject
Introduction to Lean
The role of the leader in
daily production
PDCA in visual
management
How and when to escalate
problems
Module 2
Standardized work
as a management
tool
Module 3
5S
TPM and operator
maintenance
Module 4
Advanced
standardized work
Job observation
Module 5
Managing
improvement activities
Module 6
Systematic problem
solving
Subject
Standardization and
REC’s rules in use
standardized work
Teaching and training in
how to set a standard
to standardized work
Subject
man-machine and other
standardization tools
to improving standards
Subject
How to work
systematically with
continuous improvement
A3 as a tool for
systematic improvement
Training in leading
KAIZEN events
Subject
systematic problem
solving
Training in Apollo RCA
Six sigma
Preparation
Read through some
material
Prepare homework task
Homework
Develop an element of a
visual management
system
Preparation
your homework
Read theory
Homework
Develop standards in
your own work place
Develop competence
matrix in your own team
Preparation
your homework
Read theory
Homework
Make a man-machine
setup
Develop or improve your
own job-observation
routines
Preparation
your homework
Read theory
Homework
Perform a kaizen event
at your own workplace
Preparation
your homework + bring
a problem from your
workplace
Read theory
Final exam
Final exam to graduate
Module 1
REC Production
System
Visual management
Subject
What, why and how 5S
& TPM
Training in 5S and step
0-3 in operator
maintenance
Training in leadership
connected to the tools
Preparation
your homework
Read theory
Homework
Perform 5S activities in
your own work place
Team organization with right competence
and clearly defined roles
Standardized work, Takt
Time and Training
Preventive Maintenance,
RCM and TPM
Visual Management based on
Facts, Figures and PDCA
Discipline through workplace
organization and 5S
Critical Process Management
through ICCM, Six Sigma and
Systematic Problemsolving
LEADERSHIP
RBS Network Training
RBS
SFM

RBS
World Class Operations is based on our People Strategy:
WASTE
REDUCTION
DISCIPLINE
5S
CONTINUOUS IMPROVEMENT & SYSTEMATIC
PROBLEMSOLVING
HSE & QUALITY
R E C I D
LEVELING
RPS PRINCIPLES
STABILITY
&
CONTINUOUS
IMPROVEMENTS
ORGANIZATIONAL STRUCTURE
ROLES AND RESPONSIBILITIES
CRITICAL COMPETENCE
TRAINING
OPTIMIZED
MANNING
REC
LEADERSHIP
Understand
our business
case
Build a
world-class
production
system
Build a
world-class
organization
1 2
3
3
Before we build Quality Modules,
we build QUALITY PEOPLE.

RBS
Systematics and people development is crucial!
Leaders driving culture by practizing RBS in their daily work
Continous improvement at cell line Training on the shopfloor - Pdope Job observation on operator
Summarizing morning meeting with
action items
Apollo problem solving Layer audits
3

RBSPeople Development & Engagement
- A career path defined for everybody (Production Specialist = Operator)
3

REC Peak Energy modules installed on a commercial rooftop in Italy
Agenda
 REC Singapore
 Lean implementation in REC
Singapore

RBSPEOPLE – RPS TRAINING 2009
Management group take lead

RBSPEOPLE – INGRAIN RBS CULTURE INTO THE ORGANISATION
INGRAIN RBS CULTURE – Team Building in RBS way

RBSPEOPLE – INGRAIN RBS CULTURE INTO THE ORGANISATION
INGRAIN RBS CULTURE – Speak the same language – RBS language !
RPS Poster in Office Building consistently deliver
RPS Principles and massages to all employees
RPS Mouse Pad Learning Resources from
Intranet
Learning Resources from
Intranet

Summing Up and
Success Criteria

RBS
WC Targets
How to - RBS
Implementation
Strategy
Robust
Infrastructure
Understand current
condition including
our Competitive
position
Team organizationwith right competence and
clearly defined roles
Standardizedwork, Takt Time
and Training
Preventive Maintenance,
RCM and TPM
Visual Management based on Facts,
Figures and PDCA
Discipline through workplace organization
and 5S
CriticalProcess Management
through ICCM, Six Sigma and
Systematic Problem Solving
LEADERSHIP
RBS IMPL. DOCU.
CHECK ORG TRAIN
RBS in Short
REC BUSINESS SYSTEM
RBS

RBS
RBS is not theory
- It is our practice
Everything starts at
the shopfloor
Is the customer happy?
Are all trained in the critical
Jobs and are they performed
according to a standard?
Are all tools present
when needed?
What are the critical
Processes? Are we using the correct
materails?
What do you do when
You have a problem?
Do you know your role and
responsibility ?
Is maintenance included
in operations ?
Do the operators have
the tools needed?
Plant Director in Scanmodule (Sweden) performing daily
layered audits. Copied to Singapore.

RBS
Success Criteria's for LEADERS
1. Define clear
expectations
and targets!
3. Go and see
to understand
current
condition
4. Training
5. Feedback
6. Challenge to
Improve
2. Operators
(the experts)
participate in all
improvement
work

RBSREC Singapore – feedback from Singapore Industry Best Practice
sharing group - MAXA.

RBS
SEEING IS
BELIEVING
Changi Airport with 561 REC solar panels installed in Singapore.
Annual capacity 300 000 kWh - 74 tons of CO2 saved annually.
RIGHT HERE IN SINGAPORE

Using Lean to Create Global Competiveness!

Recommended

Recommended

More Related Content

Viewers also liked

Viewers also liked (14)

Similar to Using Lean to Create Global Competiveness!

Similar to Using Lean to Create Global Competiveness! (20)

Using Lean to Create Global Competiveness!