getting the lead out: how to improve the american automotive supply chain by 1000%

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GETTING THE LEAD OUT:How to improve the American Automotive Supply Chain by 1000%

Featuring

DAVE TATMANExecutive Director of the Kentucky Automotive Industry Association

Monday, July 18, 2016 | 1 PM EST

RYAN KELLY

- Consultant to high-tech manufacturing firms- Background in architecture, fabrication and community development

- Associate Vice President for Advanced Manufacturing for WKU- 34 years with General Motors at 13 different locations - 3 countries, 2 continents- Plant Manager for the Corvette Assembly Facility in Bowling Green

Director of Business Operations at MakeTime

DAVE TATMANExecutive Director of the Kentucky Automotive Industry Association

An Industry in Flux

The Pathto Now

Current Challenges

Lean’s Limitations

1000%: Futile or

Inevitable?

The Technology’s

Coming(The Technology’s

Here)

Q&A

WHAT WE’LL COVER

An Industry in Flux

Automotive Supply Chain Innovation Since 1980

HOW HAS THEINDUSTRY CHANGED?

An Industry in FluxCurrent Challenges Lean’s Limitations The Technology’s

ComingQ&A1000%: Futile or

InevitableThe Path to Now

Information technology changed the pace

Dramatic improvements in lead time / product

development

Testing / analysis tools

LEANManufacturing Principles

Is a single, common

manufacturing system

Has integrated / interdependent

principles

Focuses on eliminating waste

Builds values Supports the operator

Scales to fit the needs and size of the organization

An Effective Lean Manufacturing System:




Bottom Line: Improvements in Cost, Quality and Time to Market

Got organized Paid attention to process

Measured, and continually improved

Work became: better, faster,

safer

Halo effect: pride




LEAN DROVE WASTE OUT OF AUTOMAKING

MAINTAINORGANIZECLEARCLEAN




The Path to Now

An Industry in Flux Current Challenges Lean’s Limitations The Technology’s Coming

Q&A1000%: Futile or Inevitable

The Path to Now

DID AUTO

MANUFACTURERS

DREAM OF

ELECTRIC CARS?

The

PAST

Paper-Based Documentation

Manual Data Collection

Improvement was Consistent but Slow



The Path to Now

IS THE TECHNOLOGY

HERE TO REALIZE THE

FULL POTENTIAL

OF LEAN?



The Path to Now

The

FUTURE



The Path to Now

CurrentChallenges

BACK TO REALITY:Current Challenges

Today’s Marketplace / Manufacturing Challenges

Global OEM Development / Manufacturing Challenges

● Shorter product life cycles● Shorter Vehicle Development Process● Greater reliance on math modeling (simulations vs. physical

properties / testing)● Increasing regulatory requirements and design challenges● Meeting increased global fuel economy requirements driving

design challenges

Shorter product life cycles

Shorter vehicle development

process

Greater reliance on math

modeling

Increasing regulatory

requirements / design

challenges

Global economy requirements impact design

An Industry in FluxCurrent Challenges

Lean’s Limitations The Technology’s Coming


The Path to Now

Global OEM Development / Manufacturing Challenges

● Focus on order to delivery (not building for the sake of building)● Shorter delivery windows● Smaller supply base with more parts per supplier● Greater reliance on suppliers doing sub-assembly work● Lean facilities and manpower● Non-traditional competitors entering markets

Focus on order to delivery

(not building for the sake of building)

Shorter delivery windows

Smaller supply base with more

parts per supplier

Greater reliance on suppliers for sub-assembly

work

Lean facilities and manpower

Non-traditional competitors

entering markets

An Industry in FluxCurrent Challenges

Lean’s Limitations The Technology’s Coming


The Path to Now

BACK TO REALITY:Current Challenges

Today’s Marketplace / Manufacturing Challenges

Lean’s Limitations

What can still get better?

An Industry in Flux Current ChallengesLean’s Limitations The Technology’s



Case 1:DELUSIONAL

Case 2: WHAT ACTUALLY HAPPENS

An Industry in Flux Current ChallengesLean’s Limitations The Technology’s



1000%: Futile or Inevitable

The Great Ormand Street Hospital (GOSH)

Problem: Children were dying after life-saving surgeries because of issues in transport to ICU

Only incremental improvement trying to do better within the same system.

Went outside their industry for a solution. Where? Formula 1 Racing

Studied Ferrari’s Formula 1 pit crew in action and copied what they did.

Massive transformation of process, practice, culture

Result: Dramatic improvement to children’s well-being and over 60% drop in mortality rate

Takeaway: to get to 1000% you have to be dramatic and try something you’ve never tried before. What needs to change: the culture.

TheGREAT ORMOND STREET HOSPITAL

Children were dying after life-saving surgeries because of issues in transport to ICU.

Only incremental improvement trying to do better within the same system.

Went outside their industry.Where? Formula 1 Racing.

Studied Ferrari’s Formula 1 pit crew in action and copied what they did.

Massive transformation of process, practice, culture.

PROBLEM: SOLUTION:

Result: Dramatic improvement to children’s well-being and over 60% drop in mortality rate

Takeaway: to get to 1000% you have to be dramatic and try something you’ve never tried before. What needs to change: the culture.

Dramatic improvement to children’s well-being and over 60% drop in mortality rate.

RESULT:

To get to 1000% you have to be dramatic and try something you’ve never tried before. The culture has to change.

TAKEAWAY:


Q&A1000%: Futile or


LESSONS FROM THE PIT CREW

Forecast all possible scenarios and practice them Lessons from a

pit crew:1. Forecast all possible scenarios and practice

them2. Choreograph the changeover3. Use a dedicated overseer (aka the “lollipop

man”)4. Work in total silence

These lessons could not have been gleaned from another OR

Choreograph the changeover

Use a dedicated overseer (a “lollipop man”)

Work in total silence

1

2

3

4An Industry in Flux Current Challenges Lean’s Limitations The Technology’s

ComingQ&A

1000%: Futile or InevitableThe Path to Now

Where can manufacturinglook to meet today’s challenges?


Q&A1000%: Futile or


READY OR

NOT

TheACCELERATING PACE OF CHANGE

Agricultural Revolution

Industrial Revolution Light Bulb Moon Landing

WorldWide Web

Human Genome Sequenced

8000 120 90 22 9Years

An Industry in Flux Current Challenges Lean’s LimitationsThe Technology’s

Coming Q&AThe Path to Now 1000%: Futile or Inevitable

Communication: Mail to email to skypeLogistics: Pony express to AmazonQuality: Noguchi methodsComputation: (Moore’s law, 1979 super computer vs. iPhone)

Huge Innovations in short time span:Rocketry: (nasa vs. spacex)Self driving cars:

1000% BETTER

Communication:mail to email to

Skype

Logistics:The Pony Express to Amazon

Quality:Noguchi methods

Computation:Moore’s Law in

action

Huge Innovations in a short time span: Rocketry:

SpaceX1000% cheaper

Self-driving cars


Q&A1000%: Futile or


Traveling only 7 miles on a closed 150-mile track,

Sandstorm won the 2004 Darpa Grand Challenge


Q&A1000%: Futile or


Today,

OVER 1,000,000 autonomous miles have been

driven between Google and Tesla


Q&A1000%: Futile or


The Technology is Coming

Human Beings and Connected Devices (Millions)

Source: Cisco Systems, LM Ericsson, Raymond James research



Convergence: The source of exponential innovation● IoT, sensors, visibility (Incorporates Bits of information we don’t have the

capacity to analyze yet)○ In the factory, and in the field, all going back to the product designers to

make things better● “The cloud” (all information, on any device, at any time)● Improvements in info sharing

○ Model Based Definition (show 3dPDF data packages)● Improvements in design / simulations (fusion 360 w/ Finite element Analysis)● Advances in digital manufacturing (rapid prototyping / cnc)● Robotics

THIS ALL GOES TO IMPROVE QUALITY and reduce COSTS!



IoT The cloud Improvements in communication

Improvements in design / simulation

Digital manufacturing

Robotics

CONVERGENCE: The source of exponential innovation

THIS ALL GOES TO IMPROVE QUALITY and REDUCE COSTS.

AUGMENTEDREALITY



THE CLOUD:All your info, anytime, anywhere, on any device



HYBRID DIGITAL DOCUMENTATION



FINITE ELEMENT ANALYSIS



ROBOTICS AND AUTOMATION



SENSORS



CONNECTED FACTORY- Shop floor systems all connected- No more manual systems and materials

CONNECTED SUPPLY CHAIN- Constant data flow

between plant and sub-contractors

CONNECTED PRODUCT LIFESTYLE

IMPROVEMENTS IN QUALITY

WHAT WOULD A 1000% IMPROVED SUPPLY CHAIN LOOK LIKE?

What would a 1000% improved supply chain look like?

● Connected factory (IMAGE OF CONNECTED FACTORY)○ Shop floor systems all connected○ No more manual systems and

materials: (what are they: process control charting, standardized work instructions, trouble-shooting guides (replaced with google glass))

● Connected Supply chain○ Data flow back and forth between

plant and sub-contractors (No more phone calls!)

● Connected Product lifecycle● Improvements in quality





21st Century Product Lifecycle

MAKETIME ● “Localized production”● Real time capacity visibility● Distributed (Decentralized, agile

supply chain) vs. hierarchical● Matching● Pull vs. Push based production● Integrates directly with CAD

MAKETIME

“Localized Production”

Real Time Capacity Visibility

Distributed (decentralized,

agile supply chain) vs.

Hierarchical

MatchingPull vs. Push

Based Production

Integrates Directly with

CAD



The tech to achieve 1000% is converging.

IS THE CULTURE OF MANUFACTURING

READY?

