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World Class
Scott Garberding
Manufacturing
Scott Garberding
Chrysler Group LLC 2010 14 Business PlanChrysler Group LLC 2010‐14 Business Plan
November 4, 2009
World Class Manufacturing (WCM) headlines
… From Turin they remark that the essential element in order to have everything working well is the human component, since without full involvement of the workers nothing could be made.
…In the internal ranking, the Marchionne Code, which is in the company language described as Fiat Group Automobiles Production System (FAPS), finds its best application in Tychy Plant in Poland, and in Melfi Plant in Italy. Now the attempt is to elevate to acceptable standard also Pomigliano Plant…
Chrysler Group LLC 2010‐14 Business Plan November 4, 2009 2
6, December 2007
Journey to WCM
Fiat Group focus – Holistic approachWorld Class Manufacturing• 20 PillarsFiat Group p
20102004 2006 2008 20092005
WCM LaunchC au c
One common manufacturing operating system
Chrysler Group LLC
20102004 2006 2008 20092005
p g y
Chrysler Focus
• Safety
• Q lit
WCM Launch
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• Quality
• Harbor Report
WCM structure & objectives
Safety
Cost
eploym
ent
Workplaceorganization Quality Maintenance Logistic
d
Method Total industrial Total quality Total productive Just in time
Focus
& std.
Productivity
engineering
Qualityimprovement
q ycontrol
Technicalefficiency
pmaintenance
Servicelevel
Just‐in‐time
Target zero waste
zero defects
zero breakdowns
zero inventory
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People involvement, value creation, customer satisfactionValues
Why implement WCM?
Fatality
SevereInjury
Introduction of WCMLost Time
Injury
Recordable Injury / Illness
First Aid Cases
Near MissesNear Misses
Unsafe Conditions
Unsafe Acts
cide
nt ra
te
17%
15%
Teaching us to see new opportunities
work day inc
7%
Lost w 35% improvement
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2005 2006 2007 2008 2009E ytd 2010E(NAFTA manufacturing)
Why implement WCM?
Introduction of WCM
25
26
Rigorous methodology f i t
23
24 for improvements
er Veh
icle
5.7%
21
22
urHou
rs Pe 1.3%
9%
19
20
Harbo
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2004 2005 2006 2007 2008 2009 ytd 2010 2011
(Assembly)E EE
Previous StructurePrevious Structure
New leadership model
Plant Manager
Plant Manager
Previous StructurePrevious Structure
Current StructureCurrent Structure
Team LeaderTeam Leader
Team Member Team Member
Team Leader
Fully engaged workforce
Direct Communication
Quick Decision
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workforceOwnership at Operator Level
Making
WCM in action
Working together
Execution
Results
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WCM in action
Before After
Level 1 Level 2 Level 3
More than 30°
15° ‐ 30° 0° ‐ 15°
Flexion angle of the waist
Level 1 Level 2 Level 3
More than 30°
15° ‐ 30° 0° ‐ 15°
Flexion angle of the waist
than 30
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52% elimination of ergonomic risks
WCM in action
Before After
• Inventory reduced• Material delivered to point of use • 57% reduction in operator walk time
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57% reduction in operator walk time
WCM in action
Before Afterqu
ipEquipment conditions
Equi
Maintained for easy
Eq
co d o shidden
po easyinspection
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Equipment restored to original state
WCM in action
Before After
Improved work conditions
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Prepare for
Transforming Jefferson
PlacePeople
Prepare for
360 degree transformation
Passion
Product
Process
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Chrysler Group LLC
WCM implementation
Chrysler Group LLC
SilverSilver1st Plant re‐opensChapter
11 begins
Chapter 11 “ends”
GoldGold
Bankruptcy 20134th Qtr ‘09 2010 2011 2012 2014
BronzeBronzeSilverSilver11 begins
3rd party audits 1st audits
Cost opportunities identified
Management / Union
• Every plant – Every year
• Increasing depth and rigor
1st audits
World Class Manufacturing teams
and training 30 Plants
leadership training and commitment
30 Plants
Learning & implementation
Methods & results
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Wide expansion
Expected results for 2010
‐8%‐30%
Operating costInjuries
2009E 2010E 2009E 2010E
+10%+15%
Manufacturing first‐time quality Productivity
2009E 2010E 2009E 2010E
+80%+100%
Employee involvement Projects
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2009E 2010E 2009E 2010E
One Team, One Goal, One VisionWorld Class ManufacturingWorld Class Manufacturing
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