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AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 1 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 2 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Introduction
Hello! My name is APSY.
I will be your guide
to introduce you to APS,
The Autoliv Production
System.
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 3 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Introduction
With the Autoliv Production System (APS), Autoliv is
engaged in a process of continuous improvement and
breakthrough with the aim of being the leader in
our industry and progressing
further each day in satisfying
our customer expectations.
Autoliv will be the most reliable,
highest quality, cost effective,
and innovative partner in the
occupant safety restraint
systems industry.
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 4 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
What is APS?
APS is the formalization of the Autoliv Manufacturing Culture.
The most important items of this Manufacturing Culture are
described in this training.
This training is the culmination of Autoliv Worldwide Manufacturing
Experience.
Several plants from around the world have contributed to the
development of the Autoliv Production System by sharing
experiences and best practices.
Input
(resources)
Man
Material
Machine
Method
APS
Output
(results)
Customer Satisfaction
Employee Satisfaction
Profitability
Society/Community
Benefit
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 5 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
What is APS?
The Autoliv Production System is a method to help every single
Autoliv plant grow towards excellence. With APS, every plant is
working towards the same manufacturing vision.
Every Autoliv employee worldwide is
working from this same training. This
training has been translated into
several languages.
APS is Autoliv’s chosen method
All companies have common inputs
(man, material, and machine).
All companies desire good outputs.
What separates one company from
another is the method in which
they turn inputs into outputs.
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 6 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Who will benefit from implementation of A.P.S.?
Car users through high quality life saving products.
Car makers through competitive and high
quality products that are delivered on time
Shareholders through
profit and stock values.
Autoliv employees through stable employment, good work
environment and personal training and development.
Our society through community
involvement and good corporate
citizenship.
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 7 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Foundation
The APS House
Autoliv has chosen to use a house to illustrate APS. To
build a strong, aesthetically pleasing house requires
know-how, teamwork, perseverance,
and a will to do the job well.
As you proceed through this training, you will
see how the Autoliv Production System will
help structure your know-how, teamwork,
perseverance and will, to do a good job to help
Autoliv build a strong company that will exist
for a long time.
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 8 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Foundation
To be sure our APS House will hold for a
long time, we first must build a strong
foundation. This foundation consists of 5
elements: Teamwork, 5S, Standards,
Muda elimination and TPM.
We will now explore
each of the 5 elements
of our foundation
Team-
work
Standards
5S
Muda
elimination
TPM
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 9 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Team work is the first element of the foundation of the
APS house. Autoliv places a lot of importance on
teamwork. Team work is the most effective way for
solving problems and achieving defined results.
 We are all members of team Autoliv; we are also members of
our plant team, department team, and work group team.Team
work has proven to provide better results.
 Team work provides an opportunity to
share experiences and results in
stronger commitment.
 Team work is essential for the
successful launching of new product
or equipment, as well as for
improvements.
Team Work
None of us is as
smart as all of us.
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 10 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Team Work continued. . .
 A group is stronger than an individual person. A proposal or
suggestion coming from a group,is stronger and has usually
considered more aspects of a problem than an individual can.
 Team work may take the form of a dedicated team assigned to
a specific issue (Kaizen workshop for example).
A workshop is a team, coming from several departments
(production,quality,etc.) assigned to work on a challenge
chosen by management in a predetermined amount of time.
The team first grasps the current situation,understands the
problem, sets expectations and follows up. At the end of the
workshop the team presents the results they achieved and the
standards they have implemented.
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 11 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
The 5S is the first 5 initials of Japanese words, the
translation of which is:
 Seiri = Clear out
 Seiton = Put in order
 Seiso = Clean and check
 Seiketsu = Standardize
 Shitsuke = Self discipline
5S is a rigorous approach to housekeeping that provides
a step by step disciplined way of establishing standards
to maintain a safe, clean and efficient working
environment that we can all be proud of.
5S
You never get a 2nd
chance to make a first
impression.
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 12 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Step 1: Seiri - Clear Out
Find/Decide what is necessary and what is not:
 Define area where 5S is to be done
 Look trough all documents and items in the area
 Decide what will not be used in the coming months/years and
throw it out.
Sometimes it hurts to
get rid of what you don’t
need but afterwards it
feels good.
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 13 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Step 2: Seiton - Put in order
Choose a place for each item near the location where it is
used the most often.
 Decide how to tidy things up (according to frequency of use,
weight, etc.)
A place for everything
and everything in its
place.
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 14 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Step 3: Seiso - Clean and Check
 First perform a deep cleaning
 Catch dirt at its source
 Eliminate leaks
 Correct disorders
 Look for improvements
in order to ease cleaning
(easy access)
 Provide necessary means to perform cleaning (create a list and
storage place for the material needed to clean (vacuum,
cleaning products, etc.)
 Make a preventive cleaning form (Who, What, When, Why,
Where, How, How Long) to be done after first deep cleaning to
help maintain level of cleaning.
 Train people concerned.
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 15 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Step 4: Seiketsu - Standardize
Define cleaning and tidying tasks:
 Use simple and visual rules
 Tidying
 Use drawings, photos,
colors, anything visual.
 Cleaning
 Develop a preventive cleaning schedule.
 Use control boards where possible.
 Standardize and plan preventive maintenance
 Use simple methods to maintain cleanliness
 Mark normal operating levels (example: green/red mark on a manometer).
 Conceive machine so that one can look inside cupboards or machines.
 Anticipate having cleaning material at the station.
 Inform and train people concerned to the standards
 Display standards.
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 16 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Step 5: Shitsuke - Self Discipline
Respect and improve standards
 Respect rules
 Implement regular audits (daily, weekly, or monthly)
 Improve standards
Respect of standards calls for everyone’s rigor and self-discipline
5S Summary
 5S must be done by the persons
working in the area concerned.
The 5S process never ends.
Improvement by tidying and
cleaning never ends.
New ideas, stations, offices,
facilities, lines etc. . . might be the
start of a new 5S activity with its 5
steps.
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 17 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Standards
Standards are also a key element for having a strong foundation in
our house.
Autoliv defines standards as
 Formalization of any work related activities resulting in a clear,
concise and measurable out come. Standards reflect the best,
easiest and safest way currently known to achieve a task.
Standards result in
 Early identification of abnormalities
 All employees using best practices
 Variation control
Standards become the basis for verification and diagnosis, for
training, maintaining best practices and improvement. Standards
have to be improved continuously.
Standards are the
basis for
improvement.
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 18 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Muda (Waste) Elimination
Another key for Autoliv to succeed is to
maximize value added work. To do this
we must identify and eliminate all
non-value added work
 Value added work
 An activity that transforms or shapes raw materials
or information to meet customer (internal or external)
requirements. The part of work for which the
customer pays.
Example: Value added = assembly of components
 Waste
 Activities that consume time, resources and/or space, but do not contribute
to transforming or shaping materials and information to meet customer
needs.
Example: Non-value added = transporting components
I could not fit more work in
my agenda without
eliminating waste!
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 19 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
7 Kinds of Muda
1. Over-Production: Producing over customer requirements.
2. Producing defective product: (nonconformance) Producing product which
does not meet customer (internal or external) requirements.
3. Material movement: Multiple handling and staging of materials.
4. Inventory: (machine, materials, manpower) Holding or purchasing
unnecessary raw materials, work-in-process, and/or finished goods,
maintaining extra equipment or manpower.
5. Over processing: (adding non-essential labor) The addition of unneeded
steps of work activities.
6. Delay / Waiting: Waiting for materials
or previous processes.
7. Unnecessary motion: Actions of
people or equipment that
do not add value to the job.
Over Production is the worst waste of all because it leads to more waste.
Over production is the
worst waste of all because
it leads to more waste.
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 20 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
TPM
TPM (Total Productive Maintenance) is the 5th element of our foundation.
 Autoliv uses TPM to achieve the highest level of continuous
improvements. In TPM, it is essential that all employees take
ownership of the machines in their area and are empowered to
perform basic maintenance and improvements on those machines.
 TPM is: an innovative approach to maintenance that prevents
breakdown and promotes autonomous operator maintenance
through day-to-day activities involving the total workforce.
 TPM is a method of evaluating, maintaining, and improving machine
performance, that includes:
 Standard daily, weekly, monthly preventive maintenance
 Records of equipment performance (up time) and maintenance
 Focused evaluation and improvement activities by multidisciplinary teams
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 21 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
TPM continued. . .
This will result in an improvement in our
Overall Equipment Efficiency.
I own my car so I keep it
clean, change the wiper
blades, and check the tire
pressure. I can do the
same thing to my
machines at work.
Opening time
Loading time
Net operating
time
Valuable
Operating
time
Planned
stop-
pages
Stop-
pages
Sub
perfor-
mance
Non-
quality
Breakdown
Changeover
Minor
Reduced
Defects
Startup
Availability
Performance
Quality rate
Overall
Equipment
Efficiency
6 big losses
In order to follow up equipment performance, we use the O.E.E. indicator (Overall Equipment
Efficiency). O.E.E. is the rate between <<quantity of good parts produced>> and <<quantity of parts
theoretically producible>>, without any disturbation (breakdown, defects, minor stoppages, etc.)
In detail, we measure O.E.E. by multiplying:
•the availability rate (loading time / opening time)
•the performance rate (net operating time / loading time)
•the quality rate (valuable operating time / net operating time)
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 22 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Pillars
Now that our foundation is complete we will start to build
the pillars of our house. The pillars must exist before we
build the roof.
The three pillars of APS house are:
 Just-In-Time
 Quality First
 Employee Involvement
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 23 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Pillars
Just-In-Time
The first pillar of our house is titled Just-In-Time.
The Just-In-Time pillar consists of 6 elements:
 Leveling & Capacity
 Continuous flow
 Pull system
 Takt time
 Frequent deliveries
 Line concepts
-Flexible capacity
-One Piece flow
Standards
Just-In-Time
•Leveling &
Capacity
•Continuous flow
•Pull system
•Takt time
•Frequent
deliveries
•Line concepts
-Flexible
capacity
-One Piece flow
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 24 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Just-In-Time
The objective of Just-In-Time is to have a lean
manufacturing process that continuously with cost
efficiency, produces quality products at the right quantity
to meet customer demand in the required time.
 What is needed
 When it is needed
 Amount that is needed
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 25 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Leveling and Capacity
Heijunka leveling is a Japanese word meaning level
production volume and variety over a given period of time
(monthly is recommended). When you level the customer
demand, it gives you an opportunity to level your
Manpower, Material and Machines.
Give to production an acceptable
variation of resources
(Man / Machine / Material)
Heijunka
Leveling
Market
A.P.S.
Demand
Time
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 26 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Capacity
Capacity is our ability to meet customer demand at its highest
volume. We must ensure our capacity can adapt to the variable need
of the customer; that means:
 When the equipment is needed to run, it must be ready to run.
 Demand can not exceed capacity.
 Be sure that our capacity can adapt to the requirements of the
customer.
After the pre-conditions of leveling and capacity are
satisfied there are 5 basic elements of Just-In-Time
production. They are: Continuous Flow, Pull System,
Takt Time, Frequent Deliveries
and Line Concepts.
Let’s look at each element in more detail.
Sorry out
of order
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 27 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Continuous Flow
Conventional Organization Definition:
 Lets assume that we have a part that passes through the following
processes: Machine turning, assembly and press. In a traditional plant
all of the machine turning processes, assembling processes and
pressing operations would be grouped together. Experience shows us
that there will be inventory between the processes, long lead times,
and problems will be hidden.
Multi Process Organization Definition:
 In a multi-process organization all the processes needed to produce
one part are located in the same location. The results are no inventory
between processes, shortened lead time, problems are visible, and
improved efficiency of manpower. Now that all processes are part of
the same line we can apply the one piece flow production system.
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 28 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Continuous Flow continued. . .
AAA
CCC
BBB
The old conventional organization
ABC
ABC
ABC
The new multi process organization
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 29 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Pull System
All processes in the chain are connected with kanban.
Kanban is a tool for the pull system.
Kanban is a Japanese term meaning signal. Kanban
informs the supplier what the customer needs.
 Information flows upstream (signal)
 Lumber mill send kanban card to the logger = orders more wood
 Material flows downstream (product)
 The logger cuts the wood and floats it down to the mill
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 30 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Pull System continued. . .
(Push System)
Producing as much as possible
in hopes of it selling.
(Pull System)
Producing product as kanban
signaled by card customer.
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 31 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Takt Time
The pace of production, takt time, is the time required to
produce a single component or an entire product in order
to meet and not exceed customer demand.
How do we get takt time?
Total available production time
Customer demand
= Takt Time
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 32 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Frequent Deliveries
Suppliers should deliver smaller lots more frequently.
The benefits are
 Less money tied up in raw material and finished goods. Less
warehouse space needed for storage and few employees and
forklifts to manage and track inventory.
 Raw material is purchased, manufactured into finished product,
and shipped in a shorter amount of time. This shorter lead time
reduces the amount of money tied up in inventory.
 Quality defects are noticed and reported to supplier in a timely
manner thus allowing these abnormalities to be fixed with
minimal scrap and rework.
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 33 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Frequent Deliveries continued. . .
Would you like your
milk to be delivered
only once a month!!!
This ties up a lot of cash,
storage space to contain,
and likely hood that there
will be scrap as milk sours.
Monthly delivery
Minimal cash investment, small storage
space, and product is always fresh.
Daily delivery
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 34 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Line Concepts
Line concepts is divided in two elements: flexible
capacity and one piece flow.
Flexible capacity means:
 Heavy automation and
complicated machines should
be replaced with simple working smaller machines.
 Process must be flexible. The number of operators must be
adjusted to the capacity required.
 In order to increase flexibility of the line,
and to reduce stock, we need to reduce
change-over time.
High capacity
required
Low capacity
required
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 35 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Change-over Time
Change-over time is the time between << the last part of
product A >> and << the first part, produced at full speed, of
product B >>.
A B
I E
A B
Total change-over time
For that, we use SMED methodology (Single Minute Exchange of Die).
It takes 5 steps:
1
2
3
4
5
Separate the sequences
of the change over.
Identify internal and
external operations.
Transfer internal to
external operations.
Decrease internal
operations.
Decrease external
operations.
Now, mixing product
A and product B on
the line is not
anymore a problem.
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 36 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
One Piece Flow
One Piece Flow is the most efficient way to manage manpower
and material resources. When using a one piece flow, each
operation must be balanced according to Takt Time.
The Benefits are:
 The inventory between each process can be eliminated (Less
Work in Process).
 Products are created one by one (Shortened lead time).
 When changing builds there is less product to purge (Improved
SMED).
 Product moves through the process in the same order it was
delivered (First in First out).
Large lot production
One piece flow
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 37 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Quality First
Quality First is another pillar
of our house. In the quality
first pillar we have three
elements.
They are:
 Quality Assurance
 Quality Methods
 6 Sigma
Just-In-Time
•Leveling &
Capacity
•Continuous flow
•Pull system
•Takt time
•Frequent
deliveries
•Line concepts
-Flexible
capacity
-One Piece flow
Standards
Quality First
•Quality
assurance
•Quality
Methods
•6 Sigma
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 38 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Quality First
To understand the importance of the quality in our
process we must keep in mind three rules:
A
Supplier
B
Autoliv
C
Customer
Do not Receive
Poor Quality
Do not Produce
Poor Quality
Do not Ship / Pass
On Poor Quality
These rules must be applied also within Autoliv’s companies
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 39 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Quality Assurance
In all our processes we could have failures for different
reasons: e.g. bad quality of components, machine
failures, bad methods, no discipline. . . At the end, all of
these things are muda and we must avoid them.
To prevent and avoid this,
we must achieve quality
assurance by:
 Materials
 Man
 Machines
 Man / Machines (autonomation)
Man / Machines
(autonomation)
Machines
Products
Materials
?
Man
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 40 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Quality Assurance continued. . .
Materials
In order to build quality Products we must have quality
materials. To do this we must involve the supplier in the early
phases of the development of our products. We have to
establish an ongoing partnership with our suppliers. With early
supplier involvement we have seen that we can continue to
improve our level of quality supplied to our customers at a
lower cost because we don not have to inspect, scrap material
or stop assembly lines.
SUPPLIER 1 SUPPLIER 2
AUTOLIV
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 41 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Man
Use the human senses and abilities to observe, identify and
react when a problem occurs.
Examples:
 Observe visual aspect
 Training and self-learning
 Analyze situations
 Ownership and responsibility
Quality Assurance continued. . .
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 42 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Machine
Build machines that are able to
recognize abnormalities, stop and
notify an operator.
Examples
 Poka yoke built in
 Artificial vision
 Operator panel displays information
 Andon (light coding)
Quality Assurance continued. . .
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 43 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Man and Machine (autonomation)
“The aim is to be able to prevent the defects in our
processes.” One example to illustrate this is the use of “POKA
YOKE” in our assembly process. “POKA YOKE” is error
proofing either by product design or process design.
 With Poka Yoke we will avoid the possibility to produce defects.
 Even with our best efforts to prevent quality problems in our
processes, the defects might occur.
 In the case of an occurrence we
must detect it immediately and
stop and fix the problem. This
will avoid additional muda.
Quality Assurance continued. . .
Poka Yoke
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 44 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Quality Methods
Many methods could be used to build quality assurance
in our processes and products. We’ve already mentioned
Poka Yoke. Some others are:
 5 Why
 Pareto diagram
 SPC
 Quality Matrix
 Cause and effect diagram (fishbone diagram)
 Problem solving process
 FMEA
 PDCA Wheel
Let’s explore each method in more detail.
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 45 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
5 Why
When you are in front of a problem ask five consecutive
times, the question WHY? Each answer must be more
precise than the previous one. That way, you will identify
the cause of the cause. . . of the problem.
This tool is generally used
to identify what really
happened for the present
occurrence of a problem
instead of what are
the potential causes.
5 why:
More and
more
precise
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 46 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Pareto Diagram
The pareto diagram is the tool that shows the contribution
of several causes to a problem. We draw it with the most
frequent cause on the left hand of the diagram as follows:
The highest bar indicates
which cause must be
attacked first to be
more efficient.
There is a general rule that says that if you correct 20%
of the causes, you will solve 80% of the problem. This
rule is named <<80/20 rule>>.
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 47 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
SPC - Statistical Process Control
SPC is a way to measure and maintain the reliability and
capability of a process. By sampling, you continuously
measure a parameter and draw the obtained value on a
graph.
SPC enables us to identify
whether a process stays
inside the limits or not and
if there is a trend, allows
us to start corrective action
at the first signs of drifting
out of control. SPC
HT - Limits
LT - Limits
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 48 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Diagonality Matrix
Diagonality Matrix is a tool for improving quality by
making visual <<where a defect has been produced on
the line>> and <<when this defect has been detected on
the line>>.
For each defect, we take
actions to eradicate the
defect, but also to detect
at the exact place where
it was produced.
Where produced
Station 1Station 2 Station 9
Station 1
Station 2
Station 9 T
Diagonality
Matrix
Defect detected on station 9, but produced on station 2
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 49 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Cause and Effect Diagram
The Cause and Effect Diagram is a tool to list the potential
causes to a problem. It is also referred to as the Ishikawa
or fishbone diagram. We write the effect in the head of the
fishbone. The different bones are dedicated to a category
of cause where the corelines are the main causes, and the
lines coming off those, are the subcauses:
Cause
Effect
Method Measures Machine Material
Management Environment Man
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 50 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Problem Solving Process
Is both a method and a presentation form for problem
solving. It includes 8 steps:
1. Creation of a team with a champion
 establish a small group of people with process and/or product
knowledge, allocated time, authority and skills in the required
disciplines.
2. Problem description
 describe what is wrong with what, with quantifiable terms
(who, when, where, why, how and how many)
3. Development of interim containment action (ICA)
 to isolate the effects of the problem form any
internal/external customer until permanent
corrective actions (PCA) are implemented.
4. Research of root causes
 test each possible cause
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 51 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
5. Choice of permanent corrective actions
 select the best permanent corrective action to remove the rood
cause
6. Implementation and validation of permanent corrective
actions (PCA)
 and remove the interim corrective actions
7. Implementation of actions to prevent recurrences
 modify the necessary system including policies, practices and
procedures.
8. Lesson learned documentation
 if a lesson has been learned, propose the problem solving
report as a lesson candidate for further actions in Lessons
Learned System (LLS).
Then congratulate the team and close the report.
Problem Solving Process continued. . .
.
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 52 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Failure Mode Effects Analysis can be performed about:
 Product Concepts
 Process Concepts
 Components production process
 Machines
FMEA is a method performed by a cross functional team, to prevent defects before
they really occur by the preventative analysis of the different phases of the product
design or assembly and establish counter measures to prevent it. Each potential
problem can be quantitatively analyzed with Risk Priority Number (RPN). RPN is
calculated as D x O x S, where D, O, S are the parameters for:
 Detection : what is the probability for detection of the defect before it occurs
 Occurrence : what is the probability for the defect to occur
 Severity : what would the consequences be if the defect occurs
Each parameter is given a value between 1 and 10, where 10 corresponds to high
probability and serious consequences. The result will be a number between 1 and
1000 and the potential problems with the highest RPN will be corrected first.
FMEA
RPN D O S
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 53 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
PDCA Wheel
The PDCA Wheel is a methodology to apply solutions to a
problem to ensure the problem will not occur anymore.
The methodology is described in four steps:
 Plan : Set objectives and build an action plan
 Do : Provide resources and do it
 Check : Check results by
indicators and react if necessary
 Act : Standardize the solution to
prevent recurrence
Act
Check
Plan
Do
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 54 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
6 Sigma
The target of 6 Sigma methodology is to reach 3,4 dpmo
(defect per million opportunities). The 6 Sigma workshop
leads to the improvement of the product of the process,
based on the reduction of their variability.
A 6 Sigma workshop is
completed in 5 steps :
 Define
 Measure
 Analyze
 Improve
 Control
Reduce
variability!
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 55 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
6 Sigma Steps
Let’s detail these steps:
 Define the problem or the challenge, to listen to the <<voice of
customer>> (VOC), to identify all important parameters for the
process, from Supplier to Customer, and to determine which
parameters are critical to quality (CTQ).
 Measure the frequency of defects, define performance
standards and validate measurement system.
 Analyze when and where defects occur, by establishing
product capability, defining performances objectives and
identifying variation sources.
 Improve the process, by screening potential causes, and
establishing operating tolerances.
 Control the process so that is says fixed by validating the
measurement system, determining the process capability and
implementing process controls.
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 56 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
6 Sigma continued. . .
DMAIC workshop
is used for
improving existing
product/process.
6 Sigma can also
be used for new
ones, for that we
use Design For
Six Sigma (DFSS)
workshop.
defect
defect
Bad process
High variability
Upper Limit
Lower Limit
Low Sigma Level
defect
defect
Lower Limit Upper Limit
Good Process
Low Variability
Upper Limit
Lower Limit
Lower
Limit
Upper
Limit
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 57 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Employee Involvement
The most important pillar of our house is
Employee Involvement.
Just-In-Time
•Leveling &
Capacity
•Continuous flow
•Pull system
•Takt time
•Frequent
deliveries
•Line concepts
-Flexible
capacity
-One Piece flow
Quality First
•Quality
assurance
•Quality
Methods
•6 Sigma
Standards
Employee
Involvement
•Safety
/Ergonomy
•Flexibility
and
Motivation
•Discipline to
standards
•Continuous
Improvement
•Process and
result
•Don’t judge!
•Don’t blame!
Employee Involvement is at the center
of APS. Everyone has a role to play
and everyone benefits. Employees are
the most valuable resource of our
company.
• The success of our business is
dependent on the planning, control
and improvement of all elements of our
business and this can only be done by
people.
• Every employee has knowledge and
experience which may provide the key
to solving a challenging problem.
• There are six key elements to
Employee Involvement. Let’s discuss
each in more detail.
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 58 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Safety / Ergonomy
Since employees are our most valuable resource it is very
important that all jobs are designed to be performed
safely and ergonomically.
Safety : When we design any job it must
be designed to be able to be done safely.
This means that all aspects of the job need
to be considered from the environment, to the equipment, to the motion. As
employees of Autoliv we will be provided with training on safety and safe
behavior. It is up to us to apply this knowledge to our daily jobs.
Ergonomy : Ergonomy relates to the study of human motion. Certain
motions and posture are shown to cause injury when performed in a
repetitive manner. As Autoliv employees we must educate ourselves on
these hazardous motions and postures and passionately pursue
eleimination of these conditions. Prevention activities can include
exercises, stretching, and conditioning ourselves to perform a task as
well as the design of equipment and work stations.
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 59 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Flexibility and Motivation
A company such as Autoliv is built on people’s
knowledge and their will to make it run.
 A good way to keep an accurate mind is to regularly change
the tasks we do. In that way, flexibility and motivation appear
as key points. Managers care to give their employees the
opportunities to use their flexibility and consequently keep their
motivation level. Recognition too, contributes to keep
motivation.
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 60 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Discipline to Standards
Why Discipline to maintain standards is necessary.
 Without standards there can be no improvement!
In basketball it takes five players working to the same
standards to win the game. If one player breaks a standard by
committing a foul it could cause the team to lose the game. The
same holds true in a manufacturing environment. If one team
member doesn’t follow the standard it can cause the company
to not reach it’s objectives.
 Education is necessary for each employee to gain the understanding of
the standards required to perform their job.
 Each employee must develop the discipline to follow the standards.
 Following the standard guarantees the success of our job.
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 61 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Continuous Improvement
Employee involvement is critical to sustaining continuous
improvement. There are several ways that we can be
involved in continuous improvement:
 Participation in suggestion system.
 Participation in cross functional teams.
 Participation in problem solving.
No work station or job is ever perfect.
There is always room for improvement.
Continuous improvement must come
form each of us. We must all be thinking
of better ways to perform our jobs, and
communicate our ideas to our co-workers.
I have a
suggestion!
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 62 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Process & Results
 In APS employees should focus on the process not the end
result.
 If we focus and fix the process we will get good results.
What comes first, the machine breaks or machine downtime?
The machine breaks before we have machine downtime. The
desired result is machines that run continuously. How we can
guarantee that the machine runs is by focusing on the preventive
maintenance process. Preventive maintenance is an example of a
process that leads to improvement in productivity which is the
desired result.
 A good way to improve process is to identify and eliminate
MUDA and to avoid variability through information and training.
 Other examples of processes are training, kaizen suggestion
system, 5 why, 8D, etc.
 Focusing on fixing our processes will produce our desired
results.
 Of course, it is also important to check the result and to take it
into account, in order to confirm that the process is good!
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 63 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Don’t Judge! Don’t Blame!
When something is going wrong (fault defects. . .) or you
want to perform an improvement on any situation, go, see
and listen with an open mind.
Problems are not linked to
people. If people are afraid to
be judged and blamed in case
of a problem, they will hide the
problems. If the problem is hidden
then we can’t imagine any improvements.
Blaming someone does not solve the
problem. We all have to support our
teams without judging and blaming.
A good way to
analyze any situation
without any
judgement or
blaming, is to set the
habit to speak with
clear data.
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 64 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Purpose
Now that we have built our pillars,
we can put the roof on our house.
The roof represents our purpose
and is supported by the foundation
and pillars.
The purpose of APS is to meet
the needs of our customers
and employees to insure the
success of our company and
improve society.
APS method is cost
improvement oriented. A
rigorous application of APS
will keep the Competitiveness for Autoliv.
Just-In-Time
•Leveling &
Capacity
•Continuous flow
•Pull system
•Takt time
•Frequent
deliveries
•Line concepts
-Flexible
capacity
-One Piece flow
Employee
Involvement
•Safety
/Ergonomy
•Flexibility
and
Motivation
•Discipline to
standards
•Continuous
Improvement
•Process and
result
•Don’t judge!
•Don’t blame!
Quality First
•Quality
assurance
•Quality
Methods
•6 Sigma
Team
Work
5S Standards
Muda
elimination
TPM
Profitability
Competitiveness
Satisfaction
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 65 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Mission
Let’s look at the house we have now
built and place the flag on top that
will state our mission.
Just-In-Time
•Leveling &
Capacity
•Continuous flow
•Pull system
•Takt time
•Frequent
deliveries
•Line concepts
-Flexible
capacity
-One Piece flow
Employee
Involvement
•Safety
/Ergonomy
•Flexibility
and
Motivation
•Discipline to
standards
•Continuous
Improvement
•Process and
result
•Don’t judge!
•Don’t blame!
Quality First
•Quality
assurance
•Quality
Methods
•6 Sigma
Team
Work
5S Standards Muda
elimination
TPM
Profitability
Competitiveness
Satisfaction
Autoliv will be the most
reliable, high quality, cost
effective, and innovative
partner in the occupant safety
restraint system industry
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 66 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
Conclusion
We hope this booklet has given you a good overview of the
Autoliv Production System. More detail on each of the
concepts and methods will be provided as required by your
specific job. Specific training programs have been edited in
order to deploy the APS culture throughout Autoliv.
I have enjoyed building
this house with you.
Meet you soon for APS
training program.
AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 67 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY

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HR Hand Book Autolive India Private Limited

  • 1. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 1 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY
  • 2. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 2 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Introduction Hello! My name is APSY. I will be your guide to introduce you to APS, The Autoliv Production System.
  • 3. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 3 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Introduction With the Autoliv Production System (APS), Autoliv is engaged in a process of continuous improvement and breakthrough with the aim of being the leader in our industry and progressing further each day in satisfying our customer expectations. Autoliv will be the most reliable, highest quality, cost effective, and innovative partner in the occupant safety restraint systems industry.
  • 4. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 4 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY What is APS? APS is the formalization of the Autoliv Manufacturing Culture. The most important items of this Manufacturing Culture are described in this training. This training is the culmination of Autoliv Worldwide Manufacturing Experience. Several plants from around the world have contributed to the development of the Autoliv Production System by sharing experiences and best practices. Input (resources) Man Material Machine Method APS Output (results) Customer Satisfaction Employee Satisfaction Profitability Society/Community Benefit
  • 5. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 5 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY What is APS? The Autoliv Production System is a method to help every single Autoliv plant grow towards excellence. With APS, every plant is working towards the same manufacturing vision. Every Autoliv employee worldwide is working from this same training. This training has been translated into several languages. APS is Autoliv’s chosen method All companies have common inputs (man, material, and machine). All companies desire good outputs. What separates one company from another is the method in which they turn inputs into outputs.
  • 6. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 6 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Who will benefit from implementation of A.P.S.? Car users through high quality life saving products. Car makers through competitive and high quality products that are delivered on time Shareholders through profit and stock values. Autoliv employees through stable employment, good work environment and personal training and development. Our society through community involvement and good corporate citizenship.
  • 7. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 7 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Foundation The APS House Autoliv has chosen to use a house to illustrate APS. To build a strong, aesthetically pleasing house requires know-how, teamwork, perseverance, and a will to do the job well. As you proceed through this training, you will see how the Autoliv Production System will help structure your know-how, teamwork, perseverance and will, to do a good job to help Autoliv build a strong company that will exist for a long time.
  • 8. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 8 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Foundation To be sure our APS House will hold for a long time, we first must build a strong foundation. This foundation consists of 5 elements: Teamwork, 5S, Standards, Muda elimination and TPM. We will now explore each of the 5 elements of our foundation Team- work Standards 5S Muda elimination TPM
  • 9. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 9 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Team work is the first element of the foundation of the APS house. Autoliv places a lot of importance on teamwork. Team work is the most effective way for solving problems and achieving defined results.  We are all members of team Autoliv; we are also members of our plant team, department team, and work group team.Team work has proven to provide better results.  Team work provides an opportunity to share experiences and results in stronger commitment.  Team work is essential for the successful launching of new product or equipment, as well as for improvements. Team Work None of us is as smart as all of us.
  • 10. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 10 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Team Work continued. . .  A group is stronger than an individual person. A proposal or suggestion coming from a group,is stronger and has usually considered more aspects of a problem than an individual can.  Team work may take the form of a dedicated team assigned to a specific issue (Kaizen workshop for example). A workshop is a team, coming from several departments (production,quality,etc.) assigned to work on a challenge chosen by management in a predetermined amount of time. The team first grasps the current situation,understands the problem, sets expectations and follows up. At the end of the workshop the team presents the results they achieved and the standards they have implemented.
  • 11. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 11 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY The 5S is the first 5 initials of Japanese words, the translation of which is:  Seiri = Clear out  Seiton = Put in order  Seiso = Clean and check  Seiketsu = Standardize  Shitsuke = Self discipline 5S is a rigorous approach to housekeeping that provides a step by step disciplined way of establishing standards to maintain a safe, clean and efficient working environment that we can all be proud of. 5S You never get a 2nd chance to make a first impression.
  • 12. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 12 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Step 1: Seiri - Clear Out Find/Decide what is necessary and what is not:  Define area where 5S is to be done  Look trough all documents and items in the area  Decide what will not be used in the coming months/years and throw it out. Sometimes it hurts to get rid of what you don’t need but afterwards it feels good.
  • 13. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 13 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Step 2: Seiton - Put in order Choose a place for each item near the location where it is used the most often.  Decide how to tidy things up (according to frequency of use, weight, etc.) A place for everything and everything in its place.
  • 14. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 14 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Step 3: Seiso - Clean and Check  First perform a deep cleaning  Catch dirt at its source  Eliminate leaks  Correct disorders  Look for improvements in order to ease cleaning (easy access)  Provide necessary means to perform cleaning (create a list and storage place for the material needed to clean (vacuum, cleaning products, etc.)  Make a preventive cleaning form (Who, What, When, Why, Where, How, How Long) to be done after first deep cleaning to help maintain level of cleaning.  Train people concerned.
  • 15. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 15 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Step 4: Seiketsu - Standardize Define cleaning and tidying tasks:  Use simple and visual rules  Tidying  Use drawings, photos, colors, anything visual.  Cleaning  Develop a preventive cleaning schedule.  Use control boards where possible.  Standardize and plan preventive maintenance  Use simple methods to maintain cleanliness  Mark normal operating levels (example: green/red mark on a manometer).  Conceive machine so that one can look inside cupboards or machines.  Anticipate having cleaning material at the station.  Inform and train people concerned to the standards  Display standards.
  • 16. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 16 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Step 5: Shitsuke - Self Discipline Respect and improve standards  Respect rules  Implement regular audits (daily, weekly, or monthly)  Improve standards Respect of standards calls for everyone’s rigor and self-discipline 5S Summary  5S must be done by the persons working in the area concerned. The 5S process never ends. Improvement by tidying and cleaning never ends. New ideas, stations, offices, facilities, lines etc. . . might be the start of a new 5S activity with its 5 steps.
  • 17. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 17 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Standards Standards are also a key element for having a strong foundation in our house. Autoliv defines standards as  Formalization of any work related activities resulting in a clear, concise and measurable out come. Standards reflect the best, easiest and safest way currently known to achieve a task. Standards result in  Early identification of abnormalities  All employees using best practices  Variation control Standards become the basis for verification and diagnosis, for training, maintaining best practices and improvement. Standards have to be improved continuously. Standards are the basis for improvement.
  • 18. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 18 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Muda (Waste) Elimination Another key for Autoliv to succeed is to maximize value added work. To do this we must identify and eliminate all non-value added work  Value added work  An activity that transforms or shapes raw materials or information to meet customer (internal or external) requirements. The part of work for which the customer pays. Example: Value added = assembly of components  Waste  Activities that consume time, resources and/or space, but do not contribute to transforming or shaping materials and information to meet customer needs. Example: Non-value added = transporting components I could not fit more work in my agenda without eliminating waste!
  • 19. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 19 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY 7 Kinds of Muda 1. Over-Production: Producing over customer requirements. 2. Producing defective product: (nonconformance) Producing product which does not meet customer (internal or external) requirements. 3. Material movement: Multiple handling and staging of materials. 4. Inventory: (machine, materials, manpower) Holding or purchasing unnecessary raw materials, work-in-process, and/or finished goods, maintaining extra equipment or manpower. 5. Over processing: (adding non-essential labor) The addition of unneeded steps of work activities. 6. Delay / Waiting: Waiting for materials or previous processes. 7. Unnecessary motion: Actions of people or equipment that do not add value to the job. Over Production is the worst waste of all because it leads to more waste. Over production is the worst waste of all because it leads to more waste.
  • 20. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 20 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY TPM TPM (Total Productive Maintenance) is the 5th element of our foundation.  Autoliv uses TPM to achieve the highest level of continuous improvements. In TPM, it is essential that all employees take ownership of the machines in their area and are empowered to perform basic maintenance and improvements on those machines.  TPM is: an innovative approach to maintenance that prevents breakdown and promotes autonomous operator maintenance through day-to-day activities involving the total workforce.  TPM is a method of evaluating, maintaining, and improving machine performance, that includes:  Standard daily, weekly, monthly preventive maintenance  Records of equipment performance (up time) and maintenance  Focused evaluation and improvement activities by multidisciplinary teams
  • 21. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 21 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY TPM continued. . . This will result in an improvement in our Overall Equipment Efficiency. I own my car so I keep it clean, change the wiper blades, and check the tire pressure. I can do the same thing to my machines at work. Opening time Loading time Net operating time Valuable Operating time Planned stop- pages Stop- pages Sub perfor- mance Non- quality Breakdown Changeover Minor Reduced Defects Startup Availability Performance Quality rate Overall Equipment Efficiency 6 big losses In order to follow up equipment performance, we use the O.E.E. indicator (Overall Equipment Efficiency). O.E.E. is the rate between <<quantity of good parts produced>> and <<quantity of parts theoretically producible>>, without any disturbation (breakdown, defects, minor stoppages, etc.) In detail, we measure O.E.E. by multiplying: •the availability rate (loading time / opening time) •the performance rate (net operating time / loading time) •the quality rate (valuable operating time / net operating time)
  • 22. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 22 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Pillars Now that our foundation is complete we will start to build the pillars of our house. The pillars must exist before we build the roof. The three pillars of APS house are:  Just-In-Time  Quality First  Employee Involvement
  • 23. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 23 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Pillars Just-In-Time The first pillar of our house is titled Just-In-Time. The Just-In-Time pillar consists of 6 elements:  Leveling & Capacity  Continuous flow  Pull system  Takt time  Frequent deliveries  Line concepts -Flexible capacity -One Piece flow Standards Just-In-Time •Leveling & Capacity •Continuous flow •Pull system •Takt time •Frequent deliveries •Line concepts -Flexible capacity -One Piece flow
  • 24. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 24 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Just-In-Time The objective of Just-In-Time is to have a lean manufacturing process that continuously with cost efficiency, produces quality products at the right quantity to meet customer demand in the required time.  What is needed  When it is needed  Amount that is needed
  • 25. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 25 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Leveling and Capacity Heijunka leveling is a Japanese word meaning level production volume and variety over a given period of time (monthly is recommended). When you level the customer demand, it gives you an opportunity to level your Manpower, Material and Machines. Give to production an acceptable variation of resources (Man / Machine / Material) Heijunka Leveling Market A.P.S. Demand Time
  • 26. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 26 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Capacity Capacity is our ability to meet customer demand at its highest volume. We must ensure our capacity can adapt to the variable need of the customer; that means:  When the equipment is needed to run, it must be ready to run.  Demand can not exceed capacity.  Be sure that our capacity can adapt to the requirements of the customer. After the pre-conditions of leveling and capacity are satisfied there are 5 basic elements of Just-In-Time production. They are: Continuous Flow, Pull System, Takt Time, Frequent Deliveries and Line Concepts. Let’s look at each element in more detail. Sorry out of order
  • 27. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 27 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Continuous Flow Conventional Organization Definition:  Lets assume that we have a part that passes through the following processes: Machine turning, assembly and press. In a traditional plant all of the machine turning processes, assembling processes and pressing operations would be grouped together. Experience shows us that there will be inventory between the processes, long lead times, and problems will be hidden. Multi Process Organization Definition:  In a multi-process organization all the processes needed to produce one part are located in the same location. The results are no inventory between processes, shortened lead time, problems are visible, and improved efficiency of manpower. Now that all processes are part of the same line we can apply the one piece flow production system.
  • 28. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 28 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Continuous Flow continued. . . AAA CCC BBB The old conventional organization ABC ABC ABC The new multi process organization
  • 29. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 29 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Pull System All processes in the chain are connected with kanban. Kanban is a tool for the pull system. Kanban is a Japanese term meaning signal. Kanban informs the supplier what the customer needs.  Information flows upstream (signal)  Lumber mill send kanban card to the logger = orders more wood  Material flows downstream (product)  The logger cuts the wood and floats it down to the mill
  • 30. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 30 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Pull System continued. . . (Push System) Producing as much as possible in hopes of it selling. (Pull System) Producing product as kanban signaled by card customer.
  • 31. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 31 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Takt Time The pace of production, takt time, is the time required to produce a single component or an entire product in order to meet and not exceed customer demand. How do we get takt time? Total available production time Customer demand = Takt Time
  • 32. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 32 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Frequent Deliveries Suppliers should deliver smaller lots more frequently. The benefits are  Less money tied up in raw material and finished goods. Less warehouse space needed for storage and few employees and forklifts to manage and track inventory.  Raw material is purchased, manufactured into finished product, and shipped in a shorter amount of time. This shorter lead time reduces the amount of money tied up in inventory.  Quality defects are noticed and reported to supplier in a timely manner thus allowing these abnormalities to be fixed with minimal scrap and rework.
  • 33. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 33 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Frequent Deliveries continued. . . Would you like your milk to be delivered only once a month!!! This ties up a lot of cash, storage space to contain, and likely hood that there will be scrap as milk sours. Monthly delivery Minimal cash investment, small storage space, and product is always fresh. Daily delivery
  • 34. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 34 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Line Concepts Line concepts is divided in two elements: flexible capacity and one piece flow. Flexible capacity means:  Heavy automation and complicated machines should be replaced with simple working smaller machines.  Process must be flexible. The number of operators must be adjusted to the capacity required.  In order to increase flexibility of the line, and to reduce stock, we need to reduce change-over time. High capacity required Low capacity required
  • 35. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 35 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Change-over Time Change-over time is the time between << the last part of product A >> and << the first part, produced at full speed, of product B >>. A B I E A B Total change-over time For that, we use SMED methodology (Single Minute Exchange of Die). It takes 5 steps: 1 2 3 4 5 Separate the sequences of the change over. Identify internal and external operations. Transfer internal to external operations. Decrease internal operations. Decrease external operations. Now, mixing product A and product B on the line is not anymore a problem.
  • 36. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 36 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY One Piece Flow One Piece Flow is the most efficient way to manage manpower and material resources. When using a one piece flow, each operation must be balanced according to Takt Time. The Benefits are:  The inventory between each process can be eliminated (Less Work in Process).  Products are created one by one (Shortened lead time).  When changing builds there is less product to purge (Improved SMED).  Product moves through the process in the same order it was delivered (First in First out). Large lot production One piece flow
  • 37. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 37 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Quality First Quality First is another pillar of our house. In the quality first pillar we have three elements. They are:  Quality Assurance  Quality Methods  6 Sigma Just-In-Time •Leveling & Capacity •Continuous flow •Pull system •Takt time •Frequent deliveries •Line concepts -Flexible capacity -One Piece flow Standards Quality First •Quality assurance •Quality Methods •6 Sigma
  • 38. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 38 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Quality First To understand the importance of the quality in our process we must keep in mind three rules: A Supplier B Autoliv C Customer Do not Receive Poor Quality Do not Produce Poor Quality Do not Ship / Pass On Poor Quality These rules must be applied also within Autoliv’s companies
  • 39. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 39 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Quality Assurance In all our processes we could have failures for different reasons: e.g. bad quality of components, machine failures, bad methods, no discipline. . . At the end, all of these things are muda and we must avoid them. To prevent and avoid this, we must achieve quality assurance by:  Materials  Man  Machines  Man / Machines (autonomation) Man / Machines (autonomation) Machines Products Materials ? Man
  • 40. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 40 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Quality Assurance continued. . . Materials In order to build quality Products we must have quality materials. To do this we must involve the supplier in the early phases of the development of our products. We have to establish an ongoing partnership with our suppliers. With early supplier involvement we have seen that we can continue to improve our level of quality supplied to our customers at a lower cost because we don not have to inspect, scrap material or stop assembly lines. SUPPLIER 1 SUPPLIER 2 AUTOLIV
  • 41. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 41 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Man Use the human senses and abilities to observe, identify and react when a problem occurs. Examples:  Observe visual aspect  Training and self-learning  Analyze situations  Ownership and responsibility Quality Assurance continued. . .
  • 42. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 42 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Machine Build machines that are able to recognize abnormalities, stop and notify an operator. Examples  Poka yoke built in  Artificial vision  Operator panel displays information  Andon (light coding) Quality Assurance continued. . .
  • 43. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 43 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Man and Machine (autonomation) “The aim is to be able to prevent the defects in our processes.” One example to illustrate this is the use of “POKA YOKE” in our assembly process. “POKA YOKE” is error proofing either by product design or process design.  With Poka Yoke we will avoid the possibility to produce defects.  Even with our best efforts to prevent quality problems in our processes, the defects might occur.  In the case of an occurrence we must detect it immediately and stop and fix the problem. This will avoid additional muda. Quality Assurance continued. . . Poka Yoke
  • 44. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 44 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Quality Methods Many methods could be used to build quality assurance in our processes and products. We’ve already mentioned Poka Yoke. Some others are:  5 Why  Pareto diagram  SPC  Quality Matrix  Cause and effect diagram (fishbone diagram)  Problem solving process  FMEA  PDCA Wheel Let’s explore each method in more detail.
  • 45. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 45 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY 5 Why When you are in front of a problem ask five consecutive times, the question WHY? Each answer must be more precise than the previous one. That way, you will identify the cause of the cause. . . of the problem. This tool is generally used to identify what really happened for the present occurrence of a problem instead of what are the potential causes. 5 why: More and more precise
  • 46. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 46 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Pareto Diagram The pareto diagram is the tool that shows the contribution of several causes to a problem. We draw it with the most frequent cause on the left hand of the diagram as follows: The highest bar indicates which cause must be attacked first to be more efficient. There is a general rule that says that if you correct 20% of the causes, you will solve 80% of the problem. This rule is named <<80/20 rule>>.
  • 47. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 47 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY SPC - Statistical Process Control SPC is a way to measure and maintain the reliability and capability of a process. By sampling, you continuously measure a parameter and draw the obtained value on a graph. SPC enables us to identify whether a process stays inside the limits or not and if there is a trend, allows us to start corrective action at the first signs of drifting out of control. SPC HT - Limits LT - Limits
  • 48. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 48 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Diagonality Matrix Diagonality Matrix is a tool for improving quality by making visual <<where a defect has been produced on the line>> and <<when this defect has been detected on the line>>. For each defect, we take actions to eradicate the defect, but also to detect at the exact place where it was produced. Where produced Station 1Station 2 Station 9 Station 1 Station 2 Station 9 T Diagonality Matrix Defect detected on station 9, but produced on station 2
  • 49. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 49 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Cause and Effect Diagram The Cause and Effect Diagram is a tool to list the potential causes to a problem. It is also referred to as the Ishikawa or fishbone diagram. We write the effect in the head of the fishbone. The different bones are dedicated to a category of cause where the corelines are the main causes, and the lines coming off those, are the subcauses: Cause Effect Method Measures Machine Material Management Environment Man
  • 50. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 50 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Problem Solving Process Is both a method and a presentation form for problem solving. It includes 8 steps: 1. Creation of a team with a champion  establish a small group of people with process and/or product knowledge, allocated time, authority and skills in the required disciplines. 2. Problem description  describe what is wrong with what, with quantifiable terms (who, when, where, why, how and how many) 3. Development of interim containment action (ICA)  to isolate the effects of the problem form any internal/external customer until permanent corrective actions (PCA) are implemented. 4. Research of root causes  test each possible cause
  • 51. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 51 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY 5. Choice of permanent corrective actions  select the best permanent corrective action to remove the rood cause 6. Implementation and validation of permanent corrective actions (PCA)  and remove the interim corrective actions 7. Implementation of actions to prevent recurrences  modify the necessary system including policies, practices and procedures. 8. Lesson learned documentation  if a lesson has been learned, propose the problem solving report as a lesson candidate for further actions in Lessons Learned System (LLS). Then congratulate the team and close the report. Problem Solving Process continued. . . .
  • 52. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 52 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Failure Mode Effects Analysis can be performed about:  Product Concepts  Process Concepts  Components production process  Machines FMEA is a method performed by a cross functional team, to prevent defects before they really occur by the preventative analysis of the different phases of the product design or assembly and establish counter measures to prevent it. Each potential problem can be quantitatively analyzed with Risk Priority Number (RPN). RPN is calculated as D x O x S, where D, O, S are the parameters for:  Detection : what is the probability for detection of the defect before it occurs  Occurrence : what is the probability for the defect to occur  Severity : what would the consequences be if the defect occurs Each parameter is given a value between 1 and 10, where 10 corresponds to high probability and serious consequences. The result will be a number between 1 and 1000 and the potential problems with the highest RPN will be corrected first. FMEA RPN D O S
  • 53. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 53 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY PDCA Wheel The PDCA Wheel is a methodology to apply solutions to a problem to ensure the problem will not occur anymore. The methodology is described in four steps:  Plan : Set objectives and build an action plan  Do : Provide resources and do it  Check : Check results by indicators and react if necessary  Act : Standardize the solution to prevent recurrence Act Check Plan Do
  • 54. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 54 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY 6 Sigma The target of 6 Sigma methodology is to reach 3,4 dpmo (defect per million opportunities). The 6 Sigma workshop leads to the improvement of the product of the process, based on the reduction of their variability. A 6 Sigma workshop is completed in 5 steps :  Define  Measure  Analyze  Improve  Control Reduce variability!
  • 55. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 55 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY 6 Sigma Steps Let’s detail these steps:  Define the problem or the challenge, to listen to the <<voice of customer>> (VOC), to identify all important parameters for the process, from Supplier to Customer, and to determine which parameters are critical to quality (CTQ).  Measure the frequency of defects, define performance standards and validate measurement system.  Analyze when and where defects occur, by establishing product capability, defining performances objectives and identifying variation sources.  Improve the process, by screening potential causes, and establishing operating tolerances.  Control the process so that is says fixed by validating the measurement system, determining the process capability and implementing process controls.
  • 56. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 56 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY 6 Sigma continued. . . DMAIC workshop is used for improving existing product/process. 6 Sigma can also be used for new ones, for that we use Design For Six Sigma (DFSS) workshop. defect defect Bad process High variability Upper Limit Lower Limit Low Sigma Level defect defect Lower Limit Upper Limit Good Process Low Variability Upper Limit Lower Limit Lower Limit Upper Limit
  • 57. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 57 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Employee Involvement The most important pillar of our house is Employee Involvement. Just-In-Time •Leveling & Capacity •Continuous flow •Pull system •Takt time •Frequent deliveries •Line concepts -Flexible capacity -One Piece flow Quality First •Quality assurance •Quality Methods •6 Sigma Standards Employee Involvement •Safety /Ergonomy •Flexibility and Motivation •Discipline to standards •Continuous Improvement •Process and result •Don’t judge! •Don’t blame! Employee Involvement is at the center of APS. Everyone has a role to play and everyone benefits. Employees are the most valuable resource of our company. • The success of our business is dependent on the planning, control and improvement of all elements of our business and this can only be done by people. • Every employee has knowledge and experience which may provide the key to solving a challenging problem. • There are six key elements to Employee Involvement. Let’s discuss each in more detail.
  • 58. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 58 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Safety / Ergonomy Since employees are our most valuable resource it is very important that all jobs are designed to be performed safely and ergonomically. Safety : When we design any job it must be designed to be able to be done safely. This means that all aspects of the job need to be considered from the environment, to the equipment, to the motion. As employees of Autoliv we will be provided with training on safety and safe behavior. It is up to us to apply this knowledge to our daily jobs. Ergonomy : Ergonomy relates to the study of human motion. Certain motions and posture are shown to cause injury when performed in a repetitive manner. As Autoliv employees we must educate ourselves on these hazardous motions and postures and passionately pursue eleimination of these conditions. Prevention activities can include exercises, stretching, and conditioning ourselves to perform a task as well as the design of equipment and work stations.
  • 59. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 59 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Flexibility and Motivation A company such as Autoliv is built on people’s knowledge and their will to make it run.  A good way to keep an accurate mind is to regularly change the tasks we do. In that way, flexibility and motivation appear as key points. Managers care to give their employees the opportunities to use their flexibility and consequently keep their motivation level. Recognition too, contributes to keep motivation.
  • 60. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 60 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Discipline to Standards Why Discipline to maintain standards is necessary.  Without standards there can be no improvement! In basketball it takes five players working to the same standards to win the game. If one player breaks a standard by committing a foul it could cause the team to lose the game. The same holds true in a manufacturing environment. If one team member doesn’t follow the standard it can cause the company to not reach it’s objectives.  Education is necessary for each employee to gain the understanding of the standards required to perform their job.  Each employee must develop the discipline to follow the standards.  Following the standard guarantees the success of our job.
  • 61. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 61 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Continuous Improvement Employee involvement is critical to sustaining continuous improvement. There are several ways that we can be involved in continuous improvement:  Participation in suggestion system.  Participation in cross functional teams.  Participation in problem solving. No work station or job is ever perfect. There is always room for improvement. Continuous improvement must come form each of us. We must all be thinking of better ways to perform our jobs, and communicate our ideas to our co-workers. I have a suggestion!
  • 62. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 62 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Process & Results  In APS employees should focus on the process not the end result.  If we focus and fix the process we will get good results. What comes first, the machine breaks or machine downtime? The machine breaks before we have machine downtime. The desired result is machines that run continuously. How we can guarantee that the machine runs is by focusing on the preventive maintenance process. Preventive maintenance is an example of a process that leads to improvement in productivity which is the desired result.  A good way to improve process is to identify and eliminate MUDA and to avoid variability through information and training.  Other examples of processes are training, kaizen suggestion system, 5 why, 8D, etc.  Focusing on fixing our processes will produce our desired results.  Of course, it is also important to check the result and to take it into account, in order to confirm that the process is good!
  • 63. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 63 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Don’t Judge! Don’t Blame! When something is going wrong (fault defects. . .) or you want to perform an improvement on any situation, go, see and listen with an open mind. Problems are not linked to people. If people are afraid to be judged and blamed in case of a problem, they will hide the problems. If the problem is hidden then we can’t imagine any improvements. Blaming someone does not solve the problem. We all have to support our teams without judging and blaming. A good way to analyze any situation without any judgement or blaming, is to set the habit to speak with clear data.
  • 64. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 64 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Purpose Now that we have built our pillars, we can put the roof on our house. The roof represents our purpose and is supported by the foundation and pillars. The purpose of APS is to meet the needs of our customers and employees to insure the success of our company and improve society. APS method is cost improvement oriented. A rigorous application of APS will keep the Competitiveness for Autoliv. Just-In-Time •Leveling & Capacity •Continuous flow •Pull system •Takt time •Frequent deliveries •Line concepts -Flexible capacity -One Piece flow Employee Involvement •Safety /Ergonomy •Flexibility and Motivation •Discipline to standards •Continuous Improvement •Process and result •Don’t judge! •Don’t blame! Quality First •Quality assurance •Quality Methods •6 Sigma Team Work 5S Standards Muda elimination TPM Profitability Competitiveness Satisfaction
  • 65. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 65 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Mission Let’s look at the house we have now built and place the flag on top that will state our mission. Just-In-Time •Leveling & Capacity •Continuous flow •Pull system •Takt time •Frequent deliveries •Line concepts -Flexible capacity -One Piece flow Employee Involvement •Safety /Ergonomy •Flexibility and Motivation •Discipline to standards •Continuous Improvement •Process and result •Don’t judge! •Don’t blame! Quality First •Quality assurance •Quality Methods •6 Sigma Team Work 5S Standards Muda elimination TPM Profitability Competitiveness Satisfaction Autoliv will be the most reliable, high quality, cost effective, and innovative partner in the occupant safety restraint system industry
  • 66. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 66 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY Conclusion We hope this booklet has given you a good overview of the Autoliv Production System. More detail on each of the concepts and methods will be provided as required by your specific job. Specific training programs have been edited in order to deploy the APS culture throughout Autoliv. I have enjoyed building this house with you. Meet you soon for APS training program.
  • 67. AUTOLIV-0001/PT/FW/HB/Aug 8, 2002/APS Booklet - 67 PRIVATE/PROPRIETARY - FOR INTERNAL USE ONLY