LMS

April 2008Chicago, Illinois

WCBFWCBF

Lean Six Sigma SummitManaging the Corporate Change for your Deployment

LMS

Advance Relentlessly

LMS

More Than 90,000 Employees; 242 More Than 90,000 Employees; 242 Facilities In 33 CountriesFacilities In 33 Countries

Lear is a Leading Global Automotive SupplierLear is a Leading Global Automotive Supplier

LMSLear Content On Over 300 Vehicles WorldwideLear Content On Over 300 Vehicles Worldwide

We Serve All the World‘s Automakers We Serve All the World‘s Automakers

LMS

1. Why we do LMS

2. Evolution of LMS / Structure

3. What is needed for Deployment

4. What is LMS and how it Works

5. Examples of LMS at work

6. Advantages to Customers

7. Advantages to Suppliers

8. Advantages to Lear

9. What we have learned

10.One Final result.

Presentation ContentsPresentation Contents

LMS

LMS

LMS EvolutionLMS Evolution

BestPractices

LessonsLearned

LearManufacturingExperiences

ToyotaProduction

System

Lear Manufacturing System(LMS)

LMS

Systems Approach to Lean Deployment

Manufacturing System

2 Foundations 4 Pillars

Foundations, Pillars & all LMS Elements are Interdependent

Create Total Lean Behavior that provides results oriented activity.

What is LMS What is LMS

Lear Manufacturing System

LMS

Lear Manufacturing SystemLear Manufacturing System

LMS“Total Lean Behavior”

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tLear People

Product DesignFoundation

Pillars

LMS

TrainingOperator SupportEmployee InvolvementHeath & Safety / Ergonomics

Lear People – Key ElementsLear People – Key Elements

Lear People

LMS

Lear People - TrainingLear People - Training

• Six Sigma Training– 4 month intensive certified Black Belt – 2 month certified Green Belt – 6 month certified Master Black Belt

• Lean Facilitator Training– 3 month training– Certification via “Model Area”

• In-Plant Training– Kaizen events used to teach and apply– Events facilitated by Plant Lean Facilitator and or Lean Master– Training records maintained by plants

LMS

Lear People – Operator SupportLear People – Operator Support

• LMS works from inside out – that is, from the operator first and foremost

Operators perform the true value added operations and must be successful every time

LMS

Lear People – Employee InvolvementLear People – Employee Involvement

• Our people are involved:– In all three stages of

product launch– Upfront design, launch and

Continuous Improvement

– Designing of work stations, layouts and product– Ergonomic and Health & Safety concerns (Virtual

Cad)– Process and product changes (Design for

Manufacturing)

LMS

This is our over-riding responsibility.

Lear People – Health & Safety / ErgonomicsLear People – Health & Safety / Ergonomics

We create a safe and ergonomically sound, injury free workplace for all our employees through LMS

LMS

Product Design - Key ElementsProduct Design - Key Elements

Lear People

Product Design

Design For Six Sigma (DFSS) Design For Lean (DFL)Common Hardware / Architecture

LMS

Lean Design

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Red

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Was

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Des

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DFSS (Foundation)

Lean Design System StructureLean Design System Structure

The use of DFM/A early in the design process is necessary because 70 percent of the 70 percent of the product costs are set by the time the product leaves the initial design teamproduct costs are set by the time the product leaves the initial design team.

Any effort to reduce cost after the design stage can only influence the remaining 30 percent of product cost.

The greatest effectgreatest effect that DFM/A has is the reduction of total part count in a productreduction of total part count in a product. A reduction in the part count results in fewer interfaces between parts and a better product.better product.

LMS

Product Design – Design for Six Sigma (DFSS)Product Design – Design for Six Sigma (DFSS)

DFSS, part of

our overall Six

Sigma culture,

is used in the

product design process to reduce overall

process and product variation.

LMS

Product Design – Design for Lean (DFL) Product Design – Design for Lean (DFL)

Product design teams

understand and employ

LMS principles in

order to ensure that our

product can be

manufactured in an Lean environment.

This includes packaging, presentation and

flow principles that ensure operator success.

LMS

07 GM – Truck & SUV

Common proven designs use common hardware and architecture to reduce costs

Product Design – Product Design – Common Hardware / ArchitectureCommon Hardware / Architecture

Lear Flexible Seat Architecture

06 Ford Fusion

06 Mazda 6

06 Ford Mustang

06 Lincoln Zephyr

06 Mercury Milan

06 Ford Explorer

06 Chevy Impala

06 Chevy Monte Carlo

06 Buick - Lucerne

12 million units produced to date

LMS

Housekeeping – Key ElementsHousekeeping – Key Elements

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Lear People

Product Design

5S / Workplace OrganizationVisual ManagementTotal Predictive Management

(TPM)Standardize Work

LMS

Develop Housekeeping Standard

and Philosophy

Involve andtrain the employees

Take theassessment

Develop a corrective action plan

Motivate and engagethe employees

Build a cross functional team

Improve the Housekeeping

Find the best practices

WORLD CLASSHOUSEKEEPING

Housekeeping – The Cycle of SuccessHousekeeping – The Cycle of Success

LMS

Housekeeping – 5S / Workplace OrganizationHousekeeping – 5S / Workplace Organization

A LMS cornerstone. All improvements flow from World Class Housekeeping. It must be in place in order to execute LMS

“A place for A place for everything everything and and everything everything in it’s place.in it’s place.””

LMS

Housekeeping – Visual ManagementHousekeeping – Visual Management

Visual management tools control processes so that the process speaks to the observer. From labeling & signage to data & metrics review

LMS

Housekeeping – Total Predictive MaintenanceHousekeeping – Total Predictive Maintenance

Equipment, tools and facilities must be in optimal operating conditionin order to execute LMS. TPM is used to ensure that capital is maintained without wasting resources

LMS

Housekeeping – Standardize WorkHousekeeping – Standardize Work

Standardized work reduces process variation and ensures consistency in our products, processes

and delivery

LMS

Quality First – Key ElementsQuality First – Key Elements

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Lear People

Product Design

Quality at the Source (Jidoka) Problem Solving (PDCA) Six Sigma Error Proofing Manufacturing Execution Systems

(MES)

LMS

Quality First – Quality at the Source (Jidoka)Quality First – Quality at the Source (Jidoka)

Quality at the Source(Jidoka) ensures problems are dealtwith in station and are not passed on to downstream operations, repair loops and most important our customers

LMS

Quality First – Problem Solving (PDCA)Quality First – Problem Solving (PDCA)

Basic Problem Solving methodology understands that every change to the process creates other changes and must be managed with a discipline method

PLANPLAN

DODO

ACTIONACTION

CHECKCHECK

I. Identify ProblemII. Analyze CauseIII. Formulate PotentialCountermeasures

I. Develop Implementation Plan

II. Communicate PlanIII. Execute Plan

I. Monitor Progress of Implementation Plan

II. Modify Plan if Necessary

III. Monitor Results

I. Evaluate ResultsII. Standardize Effective

Countermeasure(s) or Start PDCA again Plan-Do-Check-Act, 5

Why and 8-D methodologies are applied on shop floor

LMS

Quality First – Six SigmaQuality First – Six Sigma

Six Sigma, a disciplined approach using data is interlinked with Lean to reduce defects and variation in all processes.

Lean LinkSix Sigma ProjectsProcesses

Common Goals

LEAN

Phase II: Process MeasurementPhase II: Process Measurement

Phase III: Process AnalysisPhase III: Process Analysis

Phase IV: Process ImprovementPhase IV: Process Improvement

Phase V: Process ControlPhase V: Process Control

Phase I: Process DefinitionPhase I: Process Definition

MM

AA

II

CC

DD

LMS

Quality First – Error Proofing (Poka Yoke)Quality First – Error Proofing (Poka Yoke)

The best way to control error is to prevent it in the first place. Error Proofing (Poka-Yoke) tools are used to control process inputs and eliminate the opportunity of failure