World_Class_Manufacturing

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One Team, One Goal, One Vision World Class Manufacturing
Chrysler Group LLC 2010‐14 Business Plan
November 4, 2009
16
World Class Manufacturing
Scott Garberding
Chrysler 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.
5.7% 1.3% 9%
23
22
21
20
19
2004
2005
2006
2007
2008
2009 ytd E
2010E
2011 E
(Assembly)
Chrysler Group LLC 2010‐14 Business Plan November 4, 2009 6
New leadership model
6, December 2007
Chrysler Group LLC 2010‐14 Business Plan
November 4, 2009
2
Journey to WCM
Fiat Group p
2004
WCM C Launch au c
Fiat Group focus – Holistic approach World Class Manufacturing • 20 Pillars
Method & std. Focus
Total industrial engineering
Total quality q y control
Total p productive maintenance
Just‐in‐time
Productivity
Quality improvement
Technical efficiency
November 4, 2009
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Transforming Jefferson
Prepare for People
360 degree transformation
Place
Passion Process Product
Chrysler Group LLC 2010‐14 Business Plan
Chrysler Group LLC 2010‐14 Business Plan
November 4, 2009
3
WCM structure & objectives
Safety
Cost deployment
Workplace organization
Quality
Maintenance
Logistic
Productivity +10%
2009E
2010E
2009E
2010E
Employee involvement +100%
2009E 2010E
2009E
Projects +80%
2010E
Chrysler Group LLC 2010‐14 Business Plan
November 4, 2009
Previous Structure
Plant Manager
Current Structure
Plant Manager
Team Leader Team Member
Team Leader
Team Member
Fully engaged workforce
Direct Communication Ownership at Operator Level Quick Decision Making
Chrysler Group LLC 2010‐14 Business Plan
November 4, 2009
10
WCM in action
Before
After
Equipment co d o s conditions hidden Eq quip
Maintained o easy for inspection Equip
November 4, 2009
13
WCM implementation
Chrysler Group LLC
Chapter 11 begins Chapter 11 “ends” 1st Plant re‐opens
Bronze
Bankruptcy 4th Qtr ‘09 Cost opportunities identified 2010 2011 Hale Waihona Puke Baiduanagement / Union leadership World Class training and commitment Manufacturing teams and training 30 Plants
Equipment restored to original state
Chrysler Group LLC 2010‐14 Business Plan November 4, 2009 11
WCM in action
Before
After
Improved work conditions
Chrysler Group LLC 2010‐14 Business Plan
Why implement WCM?
Introduction of WCM
Fatality
Severe Injury Lost Time Injury Recordable Injury / Illness
First Aid Cases
Lost w work day inc cident rate
…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…
Silver
2012 2013
Gold
2014
1st audits
3rd party audits
• Every plant – Every year • Increasing depth and rigor
Methods & results Wide expansion
Learning & implementation
Chrysler Group LLC 2010‐14 Business Plan
November 4, 2009
14
Expected results for 2010
Injuries ‐30%
Operating cost ‐8%
2009E
2010E
2009E
2010E
Manufacturing first‐time quality +15%
Level 2
15° ‐ 30°
Level 3
0° ‐ 15°
52% elimination of ergonomic risks
Chrysler Group LLC 2010‐14 Business Plan November 4, 2009 9
WCM in action
Before
After
• Inventory reduced • Material delivered to point of use • 57% reduction in operator walk time
Near Misses
17% 15% 7%
Unsafe Conditions Unsafe Acts
Teaching us to see new opportunities
35% improvement
2005
2006
2007
2008
(NAFTA manufacturing)
2009E ytd 2010E
Service level
Target Values
zero waste
zero defects
zero breakdowns
zero inventory
People involvement, value creation, customer satisfaction
Chrysler Group LLC 2010‐14 Business Plan November 4, 2009 4
8
WCM in action
Before
After
Flexion angle of the waist
Level 1
More than 30°
Flexion angle of the waist
Level 1
More than 30° 30
Level 2
15° ‐ 30°
Level 3
0° ‐ 15°
Chrysler Group LLC 2010‐14 Business Plan
November 4, 2009
5
Why implement WCM?
Introduction of WCM
26 25
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Harbour Hours Pe er Vehicle
Rigorous methodology f improvements for i t
Chrysler Group LLC 2010‐14 Business Plan
November 4, 2009
7
WCM in action
Working together
Execution
Results
Chrysler Group LLC 2010‐14 Business Plan
November 4, 2009
2005
2006
2008
2009
2010
One common manufacturing operating p g system y
Chrysler Group LLC
2004 2005 2006 2008 2009 WCM Launch 2010
Chrysler Focus
• Safety • Quality Q lit • Harbor Report