Download - Strategic Lean Six Sigma

Strategic Lean Six Sigma

Colin SmartVice President Business Excellence & Six Sigma

28th June 2006

© TRW Automotive Inc. 20062

TRW Automotive - Profile

• Headquartered in Livonia, Michigan• 63,000+ employees worldwide• More than 200 facilities in 25 countries• Serves all major OEM vehicle manufacturers worldwide and their

suppliers• Leading developer and supplier of active and passive safety

systems


Supporting Customers Globally

(1) Manufacturing facilities includes majority-owned joint-venture facilities (as of December 31, 2005)(2) Total headcount includes only active employees (as of December 31, 2005)(3) Primarily South America

Asia-PacificROW (3)

• 2005 Sales $0.4B• 8 Mfg. Facilities(1)

• 4,400 Employees(2)

• 3 Joint Ventures• Primarily Chassis and Aftermarket

• 2005 Sales of $7.0B• 77 Mfg. Facilities(1)


• 1 Joint Venture• All products and Aftermarket

• 2005 Sales of $0.7B• 20 Mfg. Facilities(1)


• 14 Joint Ventures• All products and Aftermarket

Europe• 2005 Sales of $4.6B• 40 mfg. facilities(1)

• 21,300 employees(2)

• 3 Joint Ventures• All products and Aftermarket

North America

36%

3%

55%6%

TRW OPERATIONS COVER EVERY MAJOR VEHICLE PRODUCING REGION AND ARE GROWING AT A PACE THAT MATCHES THE FUTURE NEEDS OF

OUR CUSTOMERS


TRW Automotive - Advanced TechnologiesActive Safety

Steering Wheel SystemsTouch Sensor in Steering Wheel RimVibrating Steering WheelIllumination TechnologyContactless Horn SystemPath-free use of Horn

Linkage & Suspension SystemsActive Dynamic ControlControl ArmsBall JointsStabilizer LinksTie RodsModules

Braking SystemsAnti-Lock Braking (ABS)Traction ControlElectronic Stability Control (ESC)Electric Park BrakeIntegrated Park BrakeCalipersActive Hydraulic BoostActuation

Driver Assist SystemsAdaptive Cruise Control Lane Guide SystemsCollision Warning

Steering SystemsHybrid EnablingActive SteeringElectrically Powered Hydraulic SteeringRack and Pinion SteeringElectrically Powered Steering Belt DriveElectrically Powered Steering Column DriveSpeed Proportional Steering


TRW Automotive - Advanced TechnologiesPassive Safety

Steering Wheel SystemsSteering Wheel with Integrated MicrophoneElectrical ConnectionsFixed Driver Airbag Module

AirbagsDriver AirbagsPassenger AirbagsSelf Adapting VentActive VentingLow Risk DeploymentKnee AirbagsSide AirbagsCurtain/Rollover Airbags

Seat Belt SystemsActive Control RetractorSeat Belt RetractorsLoad LimitersBuckle Pretensioners

EnTire SolutionDirect Tire Pressure Monitoring• Products from JV with Michelin

Safety ElectronicsECU and Remote SensorsVision SystemPedestrian ProtectionWeight Sensing System


Ford16%

DaimlerChrysler14%

General Motors11%

Other 16%

2005 Sales by Customer - $12.6 Billion

Volkswagen 14%

Renault/Nissan9%

BMW 4%

PSA 4%

Fiat 4%

Toyota 3%

Honda 3%

Hyundai 2%

TRW Automotive Worldwide Sales


TRW Automotive Global Market PresenceAcura Passenger Cars TSX

Alfa Romeo Passenger Cars 147, 156, 166 Spider Sprint GTV AM General Utility Hummer Audi Passenger Cars A8, A6, A4, A3, A2, TT Cabrio AutoAlliance (See Mazda) Beijing Jeep Corp. Sport Utilities Cherokee Bentley Passenger Cars GT BMW Passenger Cars 1 series 3 series 5 series 7 series Sport Utilities X3, X5 Citroën Passenger Cars Pluriel Berlingo Xsara C2, C3, C6 Vans C8 Picasso Jumpy Daewoo Magnus Lacetti Matiz Kalos Rezzo

DaimlerChrysler Passenger Cars Neon Stratus Sebring Concorede Viper Prowler

300N Vans Pacifica

Magnum Sport Wagon Caravan Voyager Town & Country Ram Van Sport Utilities Wrangler Liberty Grand Cherokee Durango Trucks Dakota Pickup Ram Pickup PT Cruiser

FAW Passenger Cars Mingshi Century Star FAW/VW Passenger Cars Jetta King Audi A6 Golf Bora Ferrari Passenger Cars F355 456 G Fiat Passenger Cars Punto Bravo/Brava Barchetta Multipla Panda Seicento Palio Stilo Uno B-MPV Albea Siena Vans Daily Doblo Strada Ulysse Ducato Trucks Scudo Ford Passenger Cars Amazon Focus Tracer Mustang

Taurus Cougar Town Car Sable Ka Fiesta Mondeo LS Thunderbird Crown Vic Grand Marquis Vans Windstar/Freestar Econoline Galaxy Sport Utilities Excursion Explorer Mountaineer Expedition Navigator Transit Trucks Ranger F-150 F-250 F-350 F-450 General Motors Passenger Cars Corvette Cavalier Impala LeSabre

Monte Carlo Bonneville Grand Prix Century Regal Ion XLR Celta CTS

Vans Aztek Safari Astro Express Compact Van Luxury Van Venture Silhouette Montana Savana Rendezvous

Sport Utilities Envoy Trailblazer Rainier SSR H2

Escalade Blazer Jimmy Suburban Tahoe Yukon Bravada

Trucks Avalanche S-10 Sonoma Sierra

Silverado Topkick Honda Passenger Cars

Civic Fit Inspire TL Accord

Sport Utilities Pilot MDX

Vans Odyssey CR-V

Hyundai Trajet XG Tuscani Small SUV EF Sonata Santa Fe ATOZ Click

Isuzu Sport Utilities

Axiom DMAX

Jaguar S-Type XJ8 X Type XK8

Jinbei Auto Passenger Cars

Zhonghua Kia Passenger Cars

ATOZ Sorento Frontier Spectra Carnival Optima Rio

Vans Bongo Pregio

Sport Utilities Carens Sportage

Lamborghini Passenger Cars

GTR Lancia Passenger Cars Aenea Lancia Y Lybra Thesis Vans

Phedra Land Rover Sport Utilities

Discovery Freelander Defender Range Rover

Lotus Passenger Cars Elise Maserati Quattro Mazda Passenger Cars Bongo Eunos Roadster Atenza Familia Friendly Millenia Premacy Titan RX-8 6 Sport Utilities MPV Tribute Mercedes-Benz Passenger Cars A-Class C-Class E-Class S-Class CL CLK Maybach SL, SLR, SLK G-Wagon Vaneo Vans Sprinter Evobus M-Class

Mitsubishi Passenger Cars Spacestar Colt Smart +4 MGX Eclipse Seabring Minicar Roadster Navistar Medium Truck NEDCAR Passenger Car V-40 Nissan Passenger Cars Micra March Almera Primera Sport Utilities Frontier Terrano Serena Primestar Trucks Compact Pickups Vans Trade Vannette Primestar NUMMI Passenger Cars Vibe Opel Passenger Cars Catera Agila Meriva Vectra Astra Zafira Corsa Signum Sport Utilities

Frontera Combo

Vans Vivaro Perodua Kancili Kelisa Peugeot Passenger Cars

107 206 307

406/407 607

Vans 807 Boxer Partner Expert

Porsche Passenger Cars

911 Boxster GT3

Proton Passenger Cars

Waja Wira Sutera

Trucks Pickup

Renault Passenger Cars

B Car B-MPV Laguna Clio Mégane Scenic Twingo

Vans Espace Master Trafic Kangoo

Saab Passenger Cars

9-3, 9-5 SAIC-Chery Passenger Cars A11, B11, T11 Samsung

EX SM3 SM5

SEAT Passenger Cars

Ibiza Leon Cordoba Toledo Alhambra Arosa

Shanghai-W Passat B5 Gol Polo Touran

SKODA Passenger Cars

Octavia Superb Fabia

Smart Minicar Roadster

Ssangyong Istana, Musso

Suzuki Sport Utilities

Jimny Toyota Passenger Cars

Avensis Avalon Camry Spacio Corolla Yaris

Trucks Tundra Tacoma

Vans Matrix Hilux Sienna Sport Rider

Volkswagen Passenger Cars

Beetle Bora Parati Phaeton Lupo Touran Cabriolet Polo GOL Golf/Vento/Jetta Passat

Sport Utilities Sharan

Vans Kombi Transporter Caddy Van

Volvo Passenger Cars

S50/V50 S40/V40 V70, S80


• Effectively integrating strategy-focused Lean/ Six Sigma - Aligning your program with your company strategy.

• The practicalities of moving from a tactical to a strategic perspective.

• Linkage of continuous improvement to strategic planning to support the long-term objectives of the business

Purpose


• Effectively integrating strategy-focused Lean/ Six Sigma - Aligning your program with your company strategy.

Making Sure You Are Part of the Solution

• The practicalities of moving from a tactical to a strategic perspective.

Getting Your Head out of the statistics


Making sure everyone knows what they are trying to achieve

Purpose


• Define– Why it is so difficult to be Lean /Six Sigma

• Measure– Understanding that “They” don’t care about “p values”

• Analyse– How you make change happen

• Implement– What can you set up to get the results

• Control– How you keep it going

Agenda


• Thousands of Books• Hundreds of Consultants• Plenty of Ex Toyota Experts• Plenty of Ex Toyota Employees

Why is it so difficult?

Toyota Production System

• Tens of thousands of Books• Thousands of Consultants• Plenty of Ex GE/ Motorola Experts• Plenty of Ex GE/Motorola Employees

Six Sigma

So …… Why is it so difficult?........ Are we all just “Stupid”?


Brief History of Lean

• The Toyota Production System (TPS) is still unrivaled

• Toyota have recreated process throughout world• Toyota people have been recruited by “Followers”• Every Consultancy on earth does a Lean program

So what are we missing?



• What you see is the finished product

• What you can analyze is the ingredients

• What you cannot see is the recipe

Problem :

Unlike Coca Cola …. Most practitioners have forgotten the recipe



• Analogy: Knowledge Of Calculus

– One problem or knowledge of Calculus?

• Competency is knowing how to handle “Things gone wrong”

Basic Thing to do: Recreate the Learning of Lean

Education not Training



• But there is More:

– The skills are linked… you have to learn them in a particular sequence …

- Addition, Subtraction, Multiplication, Division, Algebra, Geometry, Trigonometry, Then Calculus

Basic Thing to do: Recreate the Learning of Lean

You can customize the process …but if you change it too much…







Agenda


Lean Six Sigma as a Strategy

• Hard truth is this:– Shareholders don’t really care if you are Lean or not

- If you are 6 sigma or 2 sigma

• So stop seeing Lean Six Sigma as an overarching strategy– Its in the Toolbox– It’s the way to get the strategy done


So what do they care about?

• Company strategy– Growth– Profit

…… Basically delivering value..


TRW Business Environment

Customer Priority

COST1

COST2

COST3

COST4

COST5



Customer Expectation

1. Increasing Quality (with reducing COST)

2. Better Technology (with reducing COST)

3. Global Reach (with reducing COST)



To Survive …. need to growTo Grow …. need to give customer what they need

Business Requirement

QUALITYQUALITY

COSTCOST

GLOBAL REACHGLOBAL REACH

INNOVATIONINNOVATION


Business Strategy

“TRW Automotive has its strategic Vision and Objectives, and anything that we do should be focussed on helping us in delivering the objectives and bringing us closer to the Vision.”


How it Fits at TRW

Objectives /PrioritiesVision

Global Leader in

Automotive Safety

Best Quality

Lowest Cost

Global Reach

Innovative Technology

Processes

Contract Acquisition

Launch

Order Fulfilment

Methods

BE Roadmap

6 Sigma Lean

Workshops

Hard Work

Leadership LearningCulture:







Agenda


Why Change is hard

• Organisations find it difficult to change

Because you run into the “Machiavelli effect”

“There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things. Because the innovator has for enemies all those who have done well under the old conditions, and lukewarm (indifferent, uninterested) defenders in those who may do well under the new.”


• People Don’t Like Change

– If it’s not their idea!

– If they don’t understand why

– If they don’t see the value

– If they can’t see the whole picture

Why Change is hard


How to make change Happen

• Where are we going

• Where are we Now

• What do we need to change (next)

• How do we change it

• Commitment to see it through

Only Five Requirements for change:


Breaking down the barriers to change

Clear Vision• Make it visible, clear & logical

Logical Steps• Meaningful and Long term• Straightforward Plan

Involved Planning• Make the people Architects not victims• Don’t be afraid to talk about the need to make/ save money

Methodical Implementation• Measure Improvement objectively• Measure it consistently• Be open







Agenda


Quick Recap of Lessons so far:

1. It’s not an “initiative” thing

2. It’s the Company strategy that’s important not your tool

3. The 5 Change enablers

• Clear Vision

• Honest Assessment of where we are

• Understanding of what has to change next

• Knowledge of how to make change

• Desire to get it done

4. Need to learn as we go

(Don’t teach Calculus to kindergarten)

5. People as architects and builders not as victims


Roadmap Principles

• Can’t get to world class in one step

• There is a logical path to follow

• We are not all starting from the same place

• We are not creating anything new, others have been there before us

• Uses all the ideas we discussed before


Business Excellence Development @ TRW

To make effective changes you cannot do everything at once

We needed to have a long term plan, that builds up our ability to handle the changes.

We started back in 1999.Operations Excellence was the first phase.

We are not at the end.We are progressing at a rate based on our ability to absorb the change.

Note:OE – Operations ExcellenceOF – Order FulfilmentBE – Business Excellence

BEEmbedding

Contract AcquisitionRoadmap Development

Launch RoadmapEmbedding

Sales & Business Development

Strategy Training

Launch Deployment& Integration

Launch RoadmapDevelopment

OF RoadmapEmbedding

DFSS Awareness& Training

OF Deployment& Integration

OF RoadmapDevelopment

OE RoadmapEmbedding

6 Sigma Awareness& Training

OEDevelopment

Phase 1

Phase 2

Phase 3

Phase 4

Phase 5

Phase 6

Phase 7


How Roadmaps Work at TRW

Business Excellence

Realization of “Zero”- Incidents- Defects- Waste

Productionat pace and sequenceof the customer

Operations Excellence Roadmap

Pro c

ess

Maturity

FundamentalsPursue

PerfectionProduct Cells Improvement Pull


Business Excellence Roadmap

Primary Roadmap

Functional Process Roadmaps - Business Management - Customer Management - Financial Excellence - HR & Development - Information Systems - Operations - Quality Excellence - Supply Chain

“One Company, One Process, One Standard”


Not enough to have pretty pictures

• Actions need to happenActions need to be seen to happen

• Benefits need to be forthcomingBenefits need to be seen to be forthcoming

• Benefits need to be realBenefits need to be seen to be real

If I can’t see it…. It didn’t happen


“Devil is in the Detail”

Roadmap: Phase Descriptions

Phase: Step NarrativeElement DescriptionSupporting Materials

Step Plan: Specific ActionsAssessment Criteria

Implementation : Metrics and Audits

Business Excellence Roadmap


Infrastructure

• Infrastructure is a “Necessary Evil”– Any business of more than 150 people needs infrastructure– Sharing across large numbers of people is key challenge– Issue relates to basic “Human nature”

• Why would I put in effort to benefit someone I don’t know?

• Why would I take “advice” from someone I don’t know?• Infrastructure needs to have minimal input and maximum

output…– Need to get out more than I put in!


Business Excellence Web Site

This site provides access to:• BE Notifications and Updates• The BE Materials Library• The Roadmaps• BE Glossary• Forums• BE System / e-QOS• Business Manual• Summary of Implementation Progress


Business Excellence Web Site / “BE Status”

Web based packs allow online…

• Activity planning and implementation• Recording of sub actions (optional)• Provide targets and actuals for velocity

metrics• Deployment of change – message

within packs• Access to supporting materials via

linked actions• Modification time, date stamp• Auto step plan forecast creation• RST Acceptance recording• System automatically takes a ‘capture’

status of businesses every 6 months

2003

2003

2003


Web Site / “On Line reporting within System”

Utility ReportAllows access to various planning and

Implementation reports

Recording of Audits

Access to Checklist Library

User Account reports

Pack and Checklist Implementation

Metrics

Velocity metrics and compliance metrics

BE Data View allows graphical view of Businesses Excellence Implementation


Basic Metrics

• Basic Metrics− Std 13 Metrics

• All Plants− All same measures− Visible


Basic Metrics

Note: Dummy Information, For Training purposes only


Actions speak louder than words

• Delivering value is the key• DWYSYWD

• Planning should be like making a promise• You Keep promises

• Setting the expectation forces better planning

• Making the plan visible makes it harder to “walk away”


What Am I Promising to deliver ?

Note: Dummy Information , For Training purposes only


What Am I Promising to Deliver ?








Agenda


Measuring the “Money”

• Clear Deliverables– Targets & action Plans– Implementation requirements – Expectations

• Clear Rules for Measurement– Project Benefit validation– Roadmap Status validation– Velocity Metrics– Audits & assessments


Measurement Hard Points

• Individual Task Achievement– Single repository– Consistent definition of improvement

- Hard/Soft/Enabler- Moneybelt validation (Named/formal)

• Measure Annualised Saving and Impact Date– Drives implementation speed– Reinforces time value– Simple

• Financial Accounting Reconciliation– Validated projects drive reconciliation


Individual Project Measurement

CISDatabase

OPOPPlanning Process

eQOSDatabase

Project /Workshop

Activity

VerifiedBenefits

VarianceAnalysis

OP Plan Reconciliation

Detailed Planningand Forecasting

Benefits Verified as Achieved

Monthly Variance to OP

Monthly Snapshot for Comparison

to OP

Reconciled & Agreed OP Plan

PlanningActuals


Are my actions working? - Projects



Create the cycle

Good planning & execution

Excellent visible results

Buy in and desire to excel


What we have now

• Structured Change Program – 97 Roadmap Step plans – 68 Roadmap Step plans documented– 1300 Roadmap implementation actions documented– Supporting training and education– Supporting materials and stds

• Discipline & Drive– 1700+ Roadmap steps planned for completion in 2006– 7000+ implementation actions planned in 2006

For Our Order Fulfilment Process

Similar level of activity for the Launch Process


What do we put in to it

• Dedicated Specialist Resources– Approx 400 Full Time Change Agents– Approx 200 Roadmap Subject Matter Experts– 9000 part time Green Belts– High participation in Lean Workshop events

• Discipline & Drive– Over 4k activities each year– Planning 6-12 months ahead– Tactics & Strategy

•


Business Excellence

Change needs :

A Consistent platform – BE & The Roadmaps

Processes & Tools - Lean, Six Sigma

Practitioners – LPO’s BB’s

Believers – Plant Managers, Ops Directors, VP’s , COO & CEO

What makes change at TRW happen


What do we get out of it

• Drives Behaviours

• Focuses on doing

• Improving not posing

• Best expected to provide leadership for others

•


Conclusion

• Business Excellence provides a methodology for improvement in each of our key processes.

• Due to BE new ideas and concepts were introduced as we move forward and have capacity to absorb.

• The overall direction of how we create and manage change has been thought out and has a plan.One Company, One Process, One Standard

• Visible Change lets you see the money!


• Effectively integrating strategy-focused Lean/ Six Sigma - Aligning your program with your company strategy

Don’t try and create a strategy for Lean Six Sigma. Find out what the Strategy is and work out how you can help.

• The practicalities of moving from a tactical to a strategic perspective

Stop looking for problems that fit your tool. Build the framework to apply the right tool to the problem.


Make Lean Six Sigma the way we solve our problems and the way we achieve our strategic actions.

Conclusion


Q & A

Download - Strategic Lean Six Sigma

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