Volvo Production System, Anne-May Engdahl

Volvo Production System
GTC 13 November, 2008
VPS Overview
Background to VPS VPS structure VPS Content Going forward
Volvo Production System VPS Academy

Anne-May Engdahl Nov 2008
Corporate Values
Quality Safety Environment

Corporate Culture
The Volvo Way is a guide for our behavior as leaders and team members. It shows what we stand for and want to achieve. We shall work towards profitable growth with energy, passion and respect for the individual.

VPS is a key strategy achieve our strategic objectives

One of Volvo Group Top Priorities Volvo Production System
Method & discipline across also non-manufacturing areas Systematically use professional benchmark and best practice
3.1 Operational Excellence Increase productivity and cost efficiency:

develop and implement Volvo Production System Increase productivity by 5% p.a. Reduce cost of poor quality by 25% by end of 2009
Create a competitive customer oriented culture:

Common language with shared terminology Avoidance of duplication of efforts Common solutions Ability to find and share benchmarks and best practices

The key to Toyotas successes

All we are doing is to shorten the time line from the point where we receive the customer order to the point we get paid. We shorten this time line by reducing waste in form of activities that does not add value to our customers products.
Taiichi Ohno

The Seven Wastes + 1
Inventory
Overproduction
Transport
Defects and Rework

Unnecessary Processes
7
Movements
Wait
Why VPS? - Achieve World Class performance

Secure quality Secure delivery times Lower costs
Create value for our customers
Create value for our employees
Secure safe and environmentally-sound workplaces Realize full potential of employees by focusing on continuous improvement and value-added activities
Create value for our owners
Reduce waste Reduce cost of poor quality Drive and support commonality Favor reuse of best practices across BA/BU

VPS Overview

VPS background
Pre-study
Design of VPS model 2006
VPS Launch Assessments

2007
Content updates VPS in the BA/BU
2005
2008

10
The Volvo Production System covers three important dimensions

Modules with tools and techniques
Vision
5 Principles
A holistic view of what it will look like when all the principles and tools come together as an implemented and operational system, aligning along the firm values
Key elements of the vision that will help and support the implementation and daily maintenance of the production system forcing consistency of system thinking and decision making
Practical tools and techniques that when applied focus and drive the material and information flow driving continuous-improvement activities and behaviors

11
Volvo Production System - Vision
An organization where we continuously improve quality, delivery and productivity, in everything we do

12
The Volvo Production System Customer
We aim to continuously create value for our customers and to be valued as the worlds leading provider of commercial transport solutions...

13
The Volvo Production System Volvo Way
to do this, we base our guiding principles on The Volvo Way including our Values, our Culture, our Leadership, as well as how we go from Word to Action

14
The Volvo Production System 5 principles
Our Five Principles guide us to reach our vision of continuously improved quality, delivery, and productivity all five are necessary together, in order to reach the vision

15
VPS Module Reference material

building the knowledge how to use a tool and what should be the ideal state

16
VPS Academy and group networks

VPS-A VPS BA/BU Networks
Plant specialists
4. 5. Offer support 4. Offer Offersupport support
2. Assess level 1. Assess level 1. Assess level
BA/BU VPS responsible Nissan Diesel Volvo parts Central Academy VPC VCE Eskilstuna Wroclaw Belley Etc. Plant level BA/BU level Central Academy VBC
1. Own and 0. Own and 1. Own and 0. Own and develop VPS develop VPS develop VPS develop VPS model knowledge and model
3. Suggest 4. 3. Suggest Suggest how how to to do do it it
VTC
knowledge and documentation

2.Recommend Define what 3. 2. Define what to do improvement improvement to do opportunities opportunities
VAC VPT RTC
Mack
how to do it
VPS-A is the central function that develops and communicates the VPS model and ensures best practice sharing across the group
VPS Steering Committee - all BA/BU VPS Working group - active BA/BUs Subject and extended networks,
17
First points of contact VPS Homepage

18
VPS Database for common reference material

19
VPS Overview
Background to VPS VPS structure VPS Content

VPS Assessment Good Examples VPS Reference Material Transformation Guidance Performance Measurement
Going forward
20
VPS assessment gives guidance
SQDCEP
Improvement Benchmarking
VPS
Tools & Techniques Gap analysis Assessment Assessment& Gap Analysis

21
VPS Assessment scoring model version 2.0

Approach 5 Perfection Deployment
Dimensions 1. The Volvo Way
Effect
Sub areas Knowledge and use of vision Performance management Leadership Safety and Health Environmental care Goal oriented teams Cross functional work Organizational design Standardized work 5S (Workplace organization) Maintenance systems Performance Measurements Value stream mapping
Score 0,6 1,0 1,0 1,0 0,0 0,0 0,3 1,0 0,0 0,0 0,8 2,0 1,0 1,0 0,0 0,0 1,0 1,0 2,0 1,0 1,0 0,0 0,8 1,0 2,0 0,0 0,0 1,3 2,0 1,0 1,0
Assessment summary
Innovation of approach Full extended deployment
World leading performance.

2. Team work 3. Process stability
1. Overview
1. The Volvo Way 5,0 4,0 6. Continuous improvement 3,0 2,0 1,0 0,0 2. Team work
4. Just-in-time Logistics Delivery Continuous flow processing TAKT time Pull systems Flexible manpower system Quality control Quality assurance Quality design Quality culture
4 Outstanding (World class) 3 Established
Continuous improvements and sharingsharing
Extended deployment Metrics on World class level

5. Built-in quality 6. Continuous improvement
5. Built-in quality
3. Process stability
4. Just-in-time
Problem solving methodology Operational development Design of improvement organization
2. Road Map
Build up small scale organization 2007 Academy focus
Make best-practice knowledge available to organization Recruit small dedicated teams with experienced practitioners Start conducting assessments
Finalize, extend and scale up support
All key elements are applied applied
All applicable areas
Positive trends
2008
Continue to conduct assessments Complete library of bestpractice knowledge Regularly update with feedback from organization Expanded scope
2 Structured Approach
Most of the key elements are applied
Areas of importance (value flow)
Giving positive effect where implemented
3. Final report
1 Basic initiatives
Some of the key elements are applied Pilot Metrics defined
Action list for main improveme nt areas

22
Good examples across the group

Volvo Group
Volvo Group
TAKT-board from VCE Excavators in Shanghai, China (Oct 15th 2007)
This TAKT-board highlights current status of production and remaining TAKTtime of the current cycle. This is placed in the ceiling over the line and thereby very visual for all employees to see Poka Yoke is a technique of preventing errors by designing the product, process and/or equipment so that an operation literally can not be performed incorrectly or at least not Volvo Group without being notified about the problem Specifies the defined TAKT-time Poka Yoke is primarily used to eliminate quality problems and can be preventive or Specifies the remaining time of Autonomous Maintenance example from VCE Arvika, Sweden detective
Poka Yoke device from VPT Global (Autumn 2007)
Volvo Group
the current cycle
Safety bulletin in Goderich, CanadaThoroughly (Nov 6th 2007) understanding the ways Before from VCE Graders After
The safety bulletins are used as a to start by listing the therefore useful complement to the different ordinary safety types of possible errors that procedures can occur, e.g.
-Processing They can be used in a reactive error way to -Setup error highlight what incidents/accidents part have already taken -Missing place, but also in a -Incorrect part preventive way to highlight an area -Defective part or activity that possibly could be -Measurement error unsafe the process can fail is critical. It is
Example, preventive Poka Yoke
Daily production target expressed This check sheet describes the nine in numbers steps of the Autonomous Target numbers that should have Maintenance that the operator been produced at the specific should check when starting each moment in time shift. Different colored areas show Actual numbers of products different areas of responsibilities. produced at the specific moment
Example, detective Poka Yoke
Lamp lights up and helps Start out broadly and generate VPS Academy the operator select the safety bulletins are spread where The different types of mistake proofing proper component to install appropriate throughout the
On the floor it is marked where the Total time of line stops during the operator should stand when each shift check is made. The numbers are linked to the check sheet.
3
in time corresponding to Target
organization
VPS Academy
solutions for evaluation
If used for 1 preventive purposes, the bulletins could have a certain focus area, e.g. Know your surroundings, not only to make the personnel aware of a specific problem area but also to encourage the personnel to think in a new way
Photos from: 2007-10-26
VPS Academy
VPS Academy

23
VPS module reference material

VSM is a method of viewing the combination of flows, and this is the way it looks like
6 weeks forecast Daily faxes Production planning MPS Daily delivery schedules 90/60/30 days forecast
EXAMPLE
Company
Supplier
Raw Material 1700 m/roll
What is 5S?
18400 pcs/month 12000 Left 6400 Right Box: 20pcs 2 shifts
Company
Weekly production schedule

Tuesday, Thursday
Process Capability studies, CP and CPk

Definition
Cutting
Daily delivery schedule
Sort (Seiri)
1 x day
Set in order (Seiton)
Shine (Seisou)
Standardize (Seiketsu)
Sustain (Shitsuke)
Cp
L: 4600 pcs R: 2400 pcs
I
5 days of production demand
1
C/T = 1 Sec C/O = 1 hour Uptime = 85%
I LCL
compares natural tolerance of process with Welding No 1 No 2 engineering tolerance ofWelding the customer I I X X UCL LCL
1
C/T = 39 sec Engineering C/O = 10 mjn Uptime =tolerance 100%
Cpk also takes into account, how well the process is centered
Assembly No 1
L: 1100 pcs R: 600 pcs
L: 1600 pcs R: 850 pcs
UCL 1
L: 1200 pcs R: 640 pcs
Assembly No 2
X
LCL
1
X=-40 LSL C/T sec C/O = 0 sec Uptime = 100% X - LCL
L: 2700 pcs R: 1440 pcs
L/T: 23.6 daysapproach to create neat, organized 5S is an 1 sec 46 sec 62 sec 40 sec V/A: 188 sec 39 sec and efficient workplaces, its waste-reduction strategy will when fully implemented and Source for this example, as for many figures and examples in this training material: Rother M., Shook J. (1998) Learning to see, The Lean Enterprise Institute maintained help in reducing costs 5 days 7.6 days 2 days 4.5 days Volvo Production System LSL Academy
Value stream mapping VPS-1017, Issue 3, 2008-07-02
Natural tolerance 1.8 days
C/T = 46 sec C/O = 10 min Uptime = 80%
C/T = 62 sec Engineering = 0 sec toleranceC/O Uptime = 100% Natural 2.7 tolerance days
5S originates from the 5 Japanese workplace UCL LCL UCL organization activities that begin with S USL - X X - LSL USL - X
Despatch dep.
UCL - X
X - LCL
UCL - X
Target
USL
LSL
Target
USL
LSL
Target
USL
LSL
Target
USL
8 (78)
Engineerin g Tolerance Natural Tolerance USL LSL UCL LCL
5S includes all objects and documents

Cpk Lower of X LSL USL - X ; X LCL UCL - X
CP
Differences The Cp value only takes into account the spread of the process, and does not consider, whether the process is on target. This is Volvo Production System Academy 5S only done by the cpk value which is therefore more powerfull to measure quality. VPS-1018, Issue 1.1, 2008-09-19 A process is considered as capable with a cpk >1 Common expected cpk values in industry are 1.33 (automotive industry) or even 1.66 for critical processes
Volvo Production System Academy
Quality Assurance
8 (38)
47 (58)

24
VPS transformation approach

3. Visible leadership & basic shop floor support structure
2. Investment in capabilitybuilding and resources
1.
Organizational alignment with VPS strategy and self-funding transformations Wave 1
Sustainable improvements
$
4. Performance management
Wave n

25
Guidance on how to structure the transformation

Diagnose Diagnose current operating and management systems Prepare Establish the team and ensure the necessary preparation steps are complete Design Design future state system, validate targets Plan Develop a tactical implementation plan by work streams
Stabilize Install the base elements for stability and quality
Flow Introduce the visual tools, triggers and inventory to flow the material
Takt Pace the flow to match that of customer demand
Pull Link individual processes together to create one single flow
Maintain Review and improve the change and coach line managers
Timing may vary depending on the size of the transformation
26
VPS guidance how to start

and how to continue
Volvo Production VolvoSystem Production System System Volvo Production
Volvo Production SystemVolvo Production System
Volvo Production System Volvo Production System
Transformation Prepare Diagnose

Diagnose
Prepare Diagnose
Prepare
Transformation Flow Transformation Stabilize Diagnose Transformation Diagnose, Design and Plan
Diagnose
Prepare
Transformation Pull Transformation Takt

Diagnose
Prepare
Transformation Maintain
Diagnose Stabilize Flow Takt Pull Maintain
Prepare
Stabilize
Stabilize
Flow
Design
Takt
Design
Flow
Takt
Pull
Maintain
Pull
Maintain
Stabilize
Prepare Design Stabilize
Stabilize
Design Stabilize
Design Flow
Flow
Takt
Pull
Maintain
Takt
Pull
Plan
Plan
Maintain
Flow
Plan
Takt
Pull
Maintain
Prepare Design
Flow
Plan
Takt
Pull
Update Standardized work
Maintain
Create audits Coach managers Link to plant control centre Build continuous improvement
Act Check Plan Do
Design
Plan
Link processes to one another
Re-dimension and reduce WIP
1 Build skills/capability Create manpower 2 3 4 5 6 matrix flexibility triggers 7 8 13 Link 12 to overall production planning - Write audit sheets for key all key elements of lean design - Schedule weekly audits sessions, led - Improve skills matrix by non-area person and operator - Report results to development plan to management 9 10 11
Add 1 operator Remove 1 operator
Plan
Monitor performance
Identify takt time requirements

1 12 9 00 8 86 7 4 6 2 4 0 3 8 2 6 1 4 2 5 4 7 9 8 6 1 0 9 1 1 1 0
DEM AND TAunits
Create loading Inventory levels process - Amend
Plan
Smooth demand
Balance work content Set WIP for flow

3 2 5
Stabilize manning
Stabilize process
Stabilize quality
Check micro design
Design visual triggers and tools
Establish team
Communicate Picture -
Picture inventories if necessary - Plan daily, weekly and to ensure un-interrupted monthly reviews wit the supply during key management levels transformation personnel production area floor stakeholders - Make reporting transformational area VPS Academy Identify Order necessary Ensure signoff by all templates - Collect relevant data with Team selection - Define the problem - Outline high level work - Agree on thetogether local with 10 - Communicate improvements and materials appropriate KPIs involved personnel plan production area personnelperformance - Audit pre-requistes (ie Team kick-off Establish further info to (quality, delivery, etc) - Check dimensionsQSM) - Book central - Ensure check points requirements communication - Scope timeline according detail Team training / lean against audit elements /quality gates resources
100 24
both building in and Picture monitoring operating procedures Picture - Run through micro Picture Picture - Detail & plan specific - sub-workstream Train operators as - Run workshop with - Write checking quality (SPC, VPS Academy
64 9 2 31 29
Available time Break down Change over Operating time Minor stop Speed Losses Running Time Scrap Value added Time Source: Team
42
VPS Academy - Develop team back to production preparation / 13schedule for differentand takt A the B leader C - Link Follow guidelines from - Install leveling board - Balance work - the Visualize - Follow guidelines from 8 responses for NG boards or monitors discussion process micro designs to setup 1 times to smooth out and content between standardize the logistics micro designs to LCL Boar Capability building performance (weekly meetings etc) Product 1 Standard-in-process d visualize information equipment and movement of material improve delivery and to stocks (SIPS) people with FIFO lanes and remove minimize Performance mgmtthe critical - Group products where - Identify Product 2 Minimize large/short - Create a discipline forVPSusing - Identify autonomous - Check history of or logistics - Dimension inter Academy OEE Summary (work shop stocks material holding using 212 with batch throughYamazumi quality points in the stocks with notice fluctuation in necessary standards the maintenance activity delivery effectiveness, process Organization balance boards) bin systems, Product 3 process using QFD building boards Design visual triggers upper and lower limitsto maintenance manning through rollout of 5S, followed problem solving issuesdelivery, - Link synchronized - Eliminate start/stop and responses from the (WIP) - Ensure the tools for communication and by standardized departmentteam schedules - Build short term small parts boxes, etc activities & waste for NG situations
system/kanban preparation schedule , production area in real planning Finalize cross linked Create tactical Create project -time Train leaders and in train maintenance together with thechecks 6 time using production capacity planning the trainer skills process 5 standardized work initiative design implementation plan review process boards or monitors with target cycle times 7 - Create a standardized Picture
3 2
- Track progress of the
8 - 5 Physically link upstream 9 6 4 5 8 and downstream 5 7 G-units 1 1 1 1 DEMAND 0 5 0 2 5 7 process using 0 5 together 0 5 kanbans, conveyors, trolleys, electronic - Design differentiated signals, queuing rails UCL manning/loading Station 1 Station 2 Station 3 4 - for Develop capabilities tables different takts, of operators and logistics
Visualize material
-
add flexibility Stabilize maintenance logistics capabilities mature Stabilize VPS Academy - Create regular Prepare standardized
standardized work for improvements to production process Gradually inter- Trainreduce personnel in process inventories as standardized work kaizen systems and
Align logistics delivery
- Identify areas requiring additional coaching - Complete trainings - Create communication for ad-hoc - channels Re-allocate manpower support
Link to line control and plant performance monitoring system Create trigger point management systems across areas in real time,and to escalation meet customer demand, procedures
- Create improvement infrastructure in the team - Develop idea management process - Train personnel in problem solving methodology
- Ensure link between progression criteria takt
- Link to reviews and
triggered by manpower 14 tables allocation Use andon support teams and overtime to add flexibility
combination sheets,
Gather data
% hours
Focused equipment improvements Root cause problem solving
11
Develop work plan
Identify local issues
Metsec Metstrut - Lean Operations
SMED activities to support sequence and reduce lead time
Completed
To start
Problem identification and waste removal
25
Performance monitoring Standardisation of machine parameters
- Improve job flexibility - add Startfinal OEE analysis of 11 actions from the necessary plans with Poke Yoke, andon) implementation design with all operators to using job rotation and the equipment and overall -cross-linked Problem solve specific the Develop and maintenance production level of detail to operators shop skill matrix tracking problems solving initiatives large for the issues (FMEA) KPIs (MTTR etc)
games VPS Academy - Set up practical aspects and logistics - Team building
VPS Academy
channels Communicate to people affected by the transformation
Organization chart Identify supplier issues 9 Identify quality issues Collect all micro design data
to size of areas to transform - Define role of team members
- Meet line managers to understand their concerns

27
Performance measurement a Zero and 100% mindset!

SAFETY SAFETY QUALITY QUALITY DELIVERY DELIVERY COST COST ENVIRONMENT ENVIRONMENT
PEOPLE PEOPLE
Zero safety risk Zero ergonomic concerns Zero defects Zero deviations created from human error Zero downtime Zero scrap material and rework
Zero environmental concerns Zero Premium Freight
100% employee satisfaction index (VGAS)

100% delivery precision 100% Build-to-Schedule (BTS)

28
VPS Overview

29
VPS Roadmap 2009-2012
2012 100% Established and WCP

30
Examples of common areas of interest

Product development
Product Purchasing The Material Flow
Purchasing IT Logistics
Environmental council
Environmental care
Organizational development
HR & OD Unions
Quality Product development Quality Council Purchasing

31
The same system from different viewpoints
Administration perspective
Service production perspective
Manufacturing perspective
Product development perspective

32
Toyota
Company vision
Product Value Stream
Integration Events
Market analysis
Set-based Design Detail Design

33
The strategic objective of operational excellence will be aligned with the other objectives
Profitable Growth
Product Cycle Management
and we have created a competitive customer oriented culture!
Operational Excellence

34

Volvo Production System, Anne-May Engdahl

Загружено:

Сведения о документе

Исходное описание:

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Volvo Production System, Anne-May Engdahl

Загружено:

Авторское право:

Доступные форматы

Volvo Production System

GTC 13 November, 2008

Background to VPS VPS structure VPS Content Going forward

Volvo Production System VPS Academy

Quality Safety Environment

Volvo Production System VPS Academy

VPS is a key strategy achieve our strategic objectives

3.1 Operational Excellence Increase productivity and cost efficiency:

Create a competitive customer oriented culture:

Volvo Production System VPS Academy

The key to Toyotas successes

Volvo Production System VPS Academy

The Seven Wastes + 1

Defects and Rework

Why VPS? - Achieve World Class performance

Create value for our customers

Create value for our employees

Create value for our owners

Volvo Production System VPS Academy

Background to VPS VPS structure VPS Content Going forward

Volvo Production System VPS Academy

Design of VPS model 2006

VPS Launch Assessments

Content updates VPS in the BA/BU

Volvo Production System VPS Academy

The Volvo Production System covers three important dimensions

Volvo Production System VPS Academy

Volvo Production System - Vision

An organization where we continuously improve quality, delivery and productivity, in everything we do

Volvo Production System VPS Academy

The Volvo Production System Customer

Volvo Production System VPS Academy

The Volvo Production System Volvo Way

Volvo Production System VPS Academy

The Volvo Production System 5 principles

Volvo Production System VPS Academy

VPS Module Reference material

Volvo Production System VPS Academy

VPS Academy and group networks

4. 5. Offer support 4. Offer Offersupport support

2. Assess level 1. Assess level 1. Assess level

knowledge and documentation

VAC VPT RTC

First points of contact VPS Homepage

Volvo Production System VPS Academy

VPS Database for common reference material

Volvo Production System VPS Academy

Background to VPS VPS structure VPS Content

VPS assessment gives guidance

Volvo Production System VPS Academy

VPS Assessment scoring model version 2.0

Innovation of approach Full extended deployment

World leading performance.

4 Outstanding (World class) 3 Established

Continuous improvements and sharingsharing

Extended deployment Metrics on World class level

Problem solving methodology Operational development Design of improvement organization

Finalize, extend and scale up support

All key elements are applied applied

All applicable areas

Most of the key elements are applied

Areas of importance (value flow)

Giving positive effect where implemented