Lean Company @ E T HS MF Einführung des Lean Company Programms in der Siemens Business Unit E T HS

Lean Company @ E T HS MF Einführung des Lean Company Programms in der Siemens Business Unit E T HS Lars Hildebrand 26. Deutscher Logistik-Kongress 22. Oktober 2009 For internal use only Slide 1 Oct 09 E T HS MF

Lean Company Program @ E T HS Agenda 1 Introduction - Business Unit & Lean Company Program 2 Lean Policy Deployment 3 Lean Development 4 Customer Orientation 5 Lean Management 6 Lean Administration 7 Summary - Questions - Remarks For internal use only Slide 2 Oct 09 E T HS MF

E T HS Business E T HS scope within Sector Energy For internal use only Slide 3 Oct 09 E T HS MF

Product Portfolio of the E T HS Factories 4 Product Families and 10 Product Types 8DN8 2 72,5/145 kv 8DN8 3 72,5/145 kv 8DN8 4 72,5 kv 8DN9 2 8DN9 0 8DN9 6 170/245 kv 245 kv 300 kv 4000A 63kA, 4000A 8DQ1 1 420/550 kv 63kA 8DQ1 0 420 kv 50kA 8DQ1 3 420/550 kv 63kA For internal use only Slide 4 Oct 09 E T HS MF GIL

Global Footprint @ E T HS MF Manufacturing and Development Locations Lead Factory Berlin Shanghai Grenoble Aurangabad Berlin Shanghai Grenoble Aurangabad 1960 2001 2002 2003 2004 2005 2006 2007 2008 2009 For internal use only Slide 5 Oct 09 E T HS MF

Siemens Production System @ E T HS MF 21 Action Areas Categories Action Areas Guiding Principles & Production Strategy Challenging Vision & Guiding Principles Lean Production Strategy Product Life Cycle Management (PLM) Collaborative Product Development Design for Supply Chain new Lean Development Supply Chain Management (SCM) Lean Production & Value Stream Optimization Consumption Driven Production Nachhaltige Reliable & Zero Lieferantenintegration Defect Processes Zuverlässige Sustaining & Supplier fehlerfreie Integration Prozesse Customer Relationship Management (CRM) Customer Orientation First Targeting & Performance Management (T&PM) Systemic Target Agreements Effective Measurement and Execution System Visual Transparency People & Continuous Improvement Continuous Improvement of Value Add Organization and Tidiness as Discipline Encouraging Leadership Overall Lean Administration Collaboration and Responsibility Proactive Change Management & Communication Target Oriented Rewarding new SPS - conform Organization For internal use only Slide 6 Oct 09 E T HS MF

Structure of a holistic and sustaining Lean Company Program @ E T HS Lean Company @ E T HS CRM Lean Development (incl. Lean Engineering) Lean Administration (incl. Lean Management) Lean Production PLM SCM Creation of a Lean Company Organization For internal use only Slide 7 Oct 09 E T HS MF

Typische Phasen bei der Einführung und Umsetzung von Lean Prinzipien LCP @ E T HS MF Phase Kennzeichen ohne ganzheitliches Lean Company Programm Konzeption / Pilotierung Umsetzung / Rollout Kontinuierliche Verbesserung Organisation lernt sehen Organisation stellt sich auf Lean ein Organisation denkt Lean Produktivität* Programmverlauf *im Vergleich zum Wettbewerb Okt. 2008 Okt. 2009 Okt. 2010 For internal use only Slide 8 Oct 09 E T HS MF

Lean Company Program @ E T HS Agenda 1 Introduction - Business Unit & Lean Company Program 2 Lean Policy Deployment 3 Lean Development 4 Customer Orientation 5 Lean Management 6 Lean Administration 7 Summary - Questions - Remarks For internal use only Slide 9 Oct 09 E T HS MF

Relationship between North Star, Guiding principles and Strategic objectives TARGET - Situation (North Star = Vision) > 7 Year 5 Year Action plan from the SPS-Screening (<2 Years) operative objectives 3 Year 4 Year 2 Year ACTUAL - Situation (incl. surrounding conditions) 1 Year For internal use only Slide 10 Oct 09 E T HS MF

Relationship between North Star, Strategic Planning and Performance Measurement FUTURE - Situation (North Star = Vision) Strategy (Describes the way from the Actual- to the Future-Situation) ACTUAL - Situation (incl. surrounding conditions) Strategic Targets Operational Targets Measures Specific values KPI s For internal use only Slide 11 Oct 09 E T HS MF

Plan, Do, Check, Act Use of Deming Circle to ensure effective LCP target achievements TARGET - Situation (North Star = Vision) Operational Targets BTI PTA PTA PTA PTA PLAN Target agreements and specific guidelines SMT 2 derived KPI s ACT Definition of initiatives and projects DO Implementation of measures and processes LCP = Lean Company Program BTI = Business Target Information PTA = Personal Target Agreement CHECK monthly Performance Review For internal use only Slide 12 Oct 09 E T HS MF

Lean Company Program @ E T HS Agenda 1 Introduction - Business Unit & Lean Company Program 2 Lean Policy Deployment 3 Lean Development 4 Customer Orientation 5 Lean Management 6 Lean Administration 7 Summary - Questions - Remarks For internal use only Slide 13 Oct 09 E T HS MF

Lean Development Methods and action fields Effectiveness oriented Product Portfolio Management Quality Function Deployment Lean Development Coaching PSG / Business Plans Design for Supply Chain Efficiency oriented Quality Gates Simultaneous Engineering Rapid Prototyping Lean Administration Knowledge Management Project Management in R&D Effectiveness and Efficiency oriented R&D Key Performance Indicators Lean Development Coaching Management of Complexity Slide 14 Oct 09 E T HS MF Copyright Siemens AG

Product Steering Group (PSG) Sphere of action Customer Relationship Management (CRM) Plan Understand Sell Care Product Steering Group (PSG) Product Lifecycle Management (PLM) Plan Prod. Portfolio Management Supply Chain Management (SCM) Plan Source Define Make Realize Commercialize Deliver Phase out Return Slide 15 Oct 09 E T HS MF Copyright Siemens AG

Lean Development PSG / Business plans strategic PSG Management PLM SCM CRM Support Processes Product Lifecycle Management (PLM) Prod. Portfolio Plan Define Realize Commercialize Phase out Management M150 M200 M300 M380 Commercialize / Define Realize Operate Output: Design for Manufacturing (DFM) Customer- and process-oriented A process-oriented product development is based on products the definition, consideration and controlling of SCM-requirements Supply Chain Management (SCM) Plan Source Make Deliver Return escalation of risks Product manager Controlling PPM Strategy Business Plan Risk Assessment R&D Location s GTS Risks Prio 1 Offer Order Processing operative PSG GPS 2 3 4 5 Engineering Slide 16 Oct 09 GPL Sales & Marketin g E T HS MF critical points? I&C Order Processing Prefabrication Copyright Siemens AG

Design for Supply Chain method to enable a processoriented product development within a global network Product Lifecycle Management (PLM) Plan Prod. Portfolio Management Define Realize Commercialize Phase out M150 M200 M300 M380 Define Realize Commercializ e / Operate Design for Supply Chain A process-oriented product development is based on the definition, consideration and controlling of SCM-requirements Output: Customer- and process-oriented products Supply Chain Management (SCM) Plan Source Make Deliver Return Slide 17 Oct 09 E T HS MF Copyright Siemens AG

Lean Company Program @ E T HS Agenda 1 Introduction - Business Unit & Lean Company Program 2 Lean Policy Deployment 3 Lean Development 4 Customer Orientation 5 Lean Management 6 Lean Administration 7 Summary - Questions - Remarks Slide 18 Oct 09 E T HS MF Copyright Siemens AG

Customer Satisfaction Survey, Customer Orientation Index and CIP Customer - / Supplier relationships 1 Analysis of customer - / Supplier relationships Suppliers MF B MF B1 MF G int. customer ext. customer Performance average of 10 Basic Aspects Process implementation 2 3 Development of questionnaires Execution of evaluation by customer 10 Basic Aspects for performance evaluation of the supplier by customer Results of customer evaluation Weighting of Basic Aspects SMT 2 Identify of improvement potentials Identify and prioritize of main problems Check of Realization Continous Improvement Process (CIP) Request of details acc. to main problems Realize of measures Define of measures PumaWeb 4 Analysis of evaluation to determine need for action weighted performance avarage 100% PumaWeb VA 227 Slide 19 Oct 09 1 2 3 4 customer E T HS MF The worst result is listed in SMT as a Customer Orientation index (COI) Copyright Siemens AG

Lean Company Program @ E T HS Agenda 1 Introduction - Business Unit & Lean Company Program 2 Lean Policy Deployment 3 Lean Development 4 Customer Orientation 5 Lean Management 6 Lean Administration 7 Summary - Questions - Remarks Slide 20 Oct 09 E T HS MF Copyright Siemens AG

Lean Management New understanding of leading employees & business Effectiveness oriented Train the management reg. LCP Management as a LCP role model Train and empower employees Support LCP top-down - Sensei principle Efficiency oriented Focused meetings Less meetings - less participants MidShift Meetings Train the trainer - self-motivating organization Slide 21 Oct 09 E T HS MF Copyright Siemens AG

Lean Company Program @ E T HS Agenda 1 Introduction - Business Unit & Lean Company Program 2 Lean Policy Deployment 3 Lean Development 4 Customer Orientation 5 Lean Management 6 Lean Administration 7 Summary - Questions - Remarks Slide 22 Oct 09 E T HS MF Copyright Siemens AG

Lean Administration Training and regular meetings Slide 23 Oct 09 E T HS MF Copyright Siemens AG

Lean Administration Realization Identify the waste in your processes! Flood of information Analyze and optimize your processes! Time for searching and waiting Mistakes and rework High inventory Unnecessary ways Complicated transfer of information Unnecessary actions Unused potential of employees Slide 24 Oct 09 E T HS MF Copyright Siemens AG

Lean Administration 5S @ Office Shine Sort out Set in order Standardize Sustain before after Slide 25 Oct 09 5S workshops @ Lean Administration E T HS MF Copyright Siemens AG

Typische Phasen bei der Einführung und Umsetzung von Lean Prinzipien LCP @ E T HS MF Phase Kennzeichen ohne ganzheitliches Lean Company Programm Konzeption / Pilotierung Umsetzung / Rollout Kontinuierliche Verbesserung Organisation lernt sehen Organisation stellt sich auf Lean ein Organisation denkt Lean Produktivität* Programmverlauf *im Vergleich zum Wettbewerb Okt. 2008 Okt. 2009 Okt. 2010 For internal use only Slide 26 Oct 09 E T HS MF

Lean Company Program @ E T HS Agenda 1 Introduction - Business Unit & Lean Company Program 2 Lean Policy Deployment 3 Lean Development 4 Customer Orientation 5 Lean Management 6 Lean Administration 7 Summary - Questions - Remarks Slide 27 Oct 09 E T HS MF Copyright Siemens AG

Backup Slide 28 Oct 09 E T HS MF Copyright Siemens AG

SPS @ E T HS MF - Implementation Plan Action Areas with Priority 1-3 Lean Production Strategy Action area 1. Challenging Vision & Guiding Principles Act. Tar. 1,3 2,5 Oc t No v De c Ja n Fe b Ma r Ap r Ma y Ju n Jul Au g Se p Prio 1 Prio 2 Prio 3 2. Lean Production Strategy 1,3 2,0 12. Visual Transparency 0,9 2,0 13. Continuous Improvement of Value Add 17. Organization and Tidiness as Discipline 5. Lean Production & Value Stream Optimization 8. Reliable & Zero Defect Processes 1,0 0,6 1,2 0,9 2,5 2,5 2,0 2,0 9. Customer Orientation First 1,9 2,5 11. Effective Measurement and Execution System 19. Proactive Change Management & Communication 3. Collaborative Product Development 1,2 0,9 1,2 2,0 2,0 2,5 4. Design for Supply Chain 1,3 2,0 7. Sustaining Supplier Integration 1,3 2,0 10. Systemic Target Agreements 1,5 2,0 tbd. with HS TI tbd. with HS TI 14. Encouraging Leadership 1,0 2,5 For internal use only Slide 29 Oct 09 E T HS MF

External logistic concepts Sustaining supplier integration @ E T HS MF Sustaining Supplier Integration Strategy Risk evaluation Performance evaluation Supplier Classification Consequences + + 90% 93 85 83 70% = 50% Preferred Advanced Approved Sub-standard TCO oriented evaluation Supplier development Market- and demand evaluation Strategic Supplier potential Supply risk analysis, evaluation and measurements Process optimization competitiveness and Customer orientation Source: GPL P (CSP P) status 2008 Slide 30 Oct 09 E T HS MF Copyright Siemens AG

Structured problem solving within the CIP: 8 Steps Continuous Improvement of Value Add Process of problem solving: 1. Problem selection 3. Define targets Muda-Walk all day work directed brainstorming etc. SMART- Method 2. Problem description 4. Cause analyse Toolbox: Quality improvement tools 8. Standardization SDCA-cycle 7. Solution verification 6. Problemsolving 5. Idea search brainstorming evaluate etc. PDCA-cycle Graphic representation (use of the toolbox) Visualized timetable (e.g. roadmaps) = Supporttools Slide 31 Oct 09 E T HS MF Copyright Siemens AG

SPS@E T HS (MF) Hürden und Maßnahmen zur Überwindung V Eine Krankheit die man sich holen muß Überwindung der Phantasielosigkeit Paradigmawechsel Ganzheitlicher Ansatz über alle Geschäftsprozesse Hürde Nicht ausgeprägte Fähigkeit zum Transfer von Produktion auf Verwaltung Nicht ausgeprägte Fähigkeit zum Transfer von Produktion auf Entwicklung Mangelnde Einbindung aller Prozesse im standortübergreifenden Anlagengeschäft Maßnahme Lean Administration Training Lean Administration Training Management-Information Liste Maßnahmen mit Bord-Mitteln und ohne Lean Administration Training Gilt SPS für Büroprozesse? Gilt SPS für Produktentwicklung? Gilt SPS für das Engineering? Ja! For internal use only Slide 32 Oct 09 E T HS MF