marketing organization as-is (focus on hq and ge)

Create a Common Industrial CultureBased on Efficiency Improvement

EMS Summit

Berlin, 27th November 2018

INSERT IMAGE

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PMS : The Lean Manufacturing in Pirelli / Prometeon

Create a Common Efficiency increase system

Quick Conclusion and next challenges

The Trainers

POSS (Pirelli / Prometeon Operations Steering System)

Kaizen Weeks

Agenda

New Context for PMS and new challenges

Management Comitment and empowerment of an organization

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The Trainers


Kaizen Weeks

Agenda



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ManufacturingSystem

“Building sustainable Continuous Improvement culture from INSIDE”

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TPM

Award

1990 1997 / 1998 2004 2008

Japanese Consulting

Focus on Machines

Creation of Specialists

Methods development

KPI Monitoring

W-COM

Internal Benchmarking


Pillars Structure

Training of Methods


TPM

KPI

WCOM

6 Sigma

History and Methods

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tialREALITY 2008:

➢PRODUCT COMPLEXITY

➢AGGRESSIVE COMPETITION

➢NEW FACTORIES AND COUNTRIES

➢PEOPLE ENGAGEMENT AS CHALLENGE

Movie velocità o direzione

Drivers of Change

Movies/DIREÇÃO.wmv

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✓ CREATE A SYSTEM

✓ BACK TO BASICS

✓ STANDARDS

✓ 100% INVOLVEMENT ALL LEVELS

✓ COMMUNICATION

PMS ELEMENTS

TPM W-COM

TPM

Award

TPM

Award

1990 1997 / 1998 2004 2008

Japanese Consulting

Focus on Machines


Methods development

KPI Monitoring

W-COM

Internal Benchmarking


Pillars Structure

Training of Methods

To Select Specialists

TPM

KPI

WCOM

6 Sigma

Pirelli Manufacturing System

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Pirelli Manufacturing System

It is our management system to ensure performance, culture and resultsfor the Pirelli Operation

Our Vision: Create a competitive Tyre Operation to ensure a successful future. This based on a strong culture for people , excellent products and value creation for customers (and stakeholders).

“Uniting 20 plants in 4 continents with a common language & standard approach...

in operations on the base of standard, Continuous Improvement and engagement”

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PMS : Pirelli Manufacturing System

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PMS Overview

M2L Lean for Management

MANAGING

TO LEA(R)N

Jan. 2012

Kaizen

Weeks

M2L

Manufacturing CommunityM2L

Value Stream Mapping

+ Strategic Workshop

Gap Analysis

by Managers

DESIGN EFFICIENCY SUSTAINABILITY

Industry 4,0

International Benchmarking

BREAKTHROUGH

Dec. 2017

012345

154,5 M€

2016+17

88,6 M€

201592,8 M€

2014

46,9 M€

2013382,8 M€

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The Trainers


Kaizen Weeks

Agenda



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Pirelli Industrial & Aeolus Footprint 2015

Brazil

Egypt China

Turkey

PIRELLI Industrial

Pirelli Industrial : 8 production facilities in 6 countries8 000 employeesAeolus : 6 facilities in 1 country 14 000 employees

Chemchina Tyres

Russia

Venezuela

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New Challenges 2016 and integration

New Challenges 2016:

➢PRODUCT COMPLEXITY (1 brand vs 24)

➢Need drastic improvement of Chemchina products

➢Raw material price increase (profitability drop)

➢6 NEW FACTORIES to integrate with 14 000 employees➢From 6M pcs capacity to 16M pcs

➢Pirelli PEOPLE ENGAGEMENT AS CHALLENGE

➢Chemchina People Engagement as a challenge

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The Trainers


Kaizen Weeks

Agenda



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The Trainers


Kaizen Weeks

Agenda


Management comitment and empowerment of an organization

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The Trainers


Kaizen Weeks

Agenda



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Execution = 1 week2

Follow Up = 8 - 12 weeks3

A Kaizen week is a 1-week team work event✓ Inproving a well target issue✓ Involvement of operators in a cross-functional team✓ Learn by doing – go to Gemba✓ Try storming & Problem Solving✓ Experts & international collaboration✓ Success story through rapid changes

Boost Efficiency and Competitiveness

Training by doing

Deploy

Best Practices

Improve results

Ensure Standards

Involve

Preparation = 4 weeks1

Kaizen Weeks : Basic concept

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Planning and Preparation - TIPS

The success of a K- W depends on how well

it is planned and prepared.

Slice the biggest problems in smaller subject on

which you are sur to get a success story.

Analyze the actual situation and set targets achievable in one week, but challenging

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Planning and Preparation : Select the team & Prepare the area

- Select a multi-functional Kaizen team to increase the chances for success

- Most of the team should be from the operators of the area (ensure the acceptance ofnew ideas)

- Get a natural leader as well

Communicate the event to all the area in order to make it a collective event

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12 key points for a successful Kaizen event

1. Forget (abandon) fixed ideas, refuse actual status of things

2. Instead of explaining what cannot be done, think on how to do it

3. Immediately make the good improvement proposals

4. Do not search for perfection, gain 60% immediately

5. Correct mistakes immediately on site

6. Make problems insupportable and find ideas in the difficulty

7. Search for real root causes, respect the «5 why?» and only then search for

solution

8. Consider the ideas of 10 people instead of waiting for the genius idea of one

9. Try and then validate

10.Measure the progress made

11.Copy, improve, paste

12. Improvement has no end

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Execution: Gap Analysis & Solution approach

- Identification of current situation vs targets established, show data collected on preparation phase - Put in evidence the problem, create an area for samples

- Understand root causes and begin with brainstorming for possible solutions

- Begin transforming through rapid experiments (build, move, change)

- Decide carefully, implement quickly

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Execution : Trial and debug

Try-storming of new processes

Observe and record new process performance

Compare and discuss actual performance with target expected

Document issues, resolve problems and run more trials

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Document new processes, create new standards

Train people in the new standards

Define indicators to monitor new performance

Create visual management to see deviations

Action plan with missing actions and potential improvements for late execution

Execution : Standardize

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Execution : Out brief

Presentation of results to Management team and stakeholders

Show the change on shop floor & demonstrate results

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Out brief : recognition of team and the results :

Celebrate the results achieved and celebrating the collective successes is a key factor for further improvement.

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Follow Up and sustainability

No systementic follow up = No sustainable results

Top management & Area Leaders should do a Gemba walk every day to show their

commitment and follow up on the results.

Returning to the old process is not an option!

Having a dedicated organizations for the standardization and training of the people to the

new standards defined ensure the best results

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The Trainers


Kaizen Weeks

Agenda



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Blue Collars trainers

«Human capital is the engine of our

efficiency»

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Train, Coach and practice

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Creation of a group of best operators 100% dedicated to Training

• Permanent coaching

• Learning by doing

• Supported by Kaizen weeks

Trainers are the key role for the efficiency improvement.

The Blue collar trainer : A dedicated coach for the others

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Blue Collar Trainers : Identification

32

PMS Blue Collars Trainer : Issued form the shopfloor

The Key criteria for identification :

• Passion and motivation to be a trainer

• Living the Pirelli / Prometeon values

• Act as example (Safety, Quality, Efficiency)

• Recognized by others as a natural leader & capable to guide others

• proactive attitude

• technical and specialist skills

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Blue collars : Mission

• Check adherence to standards & Procedures

• Guarantee the effectiveness of the training

• Define, check and improve standards and training documents

• Continuous improvement of existing standards

• Define training schedules

• Frequency-based re-evaluation of the operators

• Alert deviations

• 80% training on the job – 20% Kaizen

Main daily-working tasks

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012345

Sicurezza

Qualità

ProduzionePMS

Comportamenti

Profilo Abilità possedute

Profilo di Ruolo Atteso

Mat

uri

ty L

evel

of

BC

Tra

inin

g M

anag

emen

t

Awareness

Training system setting

Engagement

Measuring results

Extension

BLUE COLLAR TRAINERS in TYRE PLANTS

BC TRAINERS

BC MANUFACTURING EXPERTS

“TRAINER” REQUIEREMENTS

“MANUFACTURING EXPERT” REQUIREMENTS

Consolidation

“MANUFACTURING EXPERTS” in:

Blue Collars Trainers : Road Map and mission

• Passion to be a trainer

• Living the Company values

• Act as example

• Natural leader

• proactive attitude

• technical and specialist skills

• Plant Start Up & Extension

• Training Standard Design

• Task force to boost Efficiency• Safety

• Quality

• Efficiency

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Blue collar trainers : Who are they ?

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Support of ramp-up of the plantsResults improvement of new & mature

operators

Local & international task-forces to

boost efficiency

Transfer of Know-how in other plants

Success stories

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The PDCA Enabler

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80

trainers

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BLUE COLLARS

TRAINING

SYSTEM

Training Efficiency

P

D

C

A

Structured standard training approach as innnovative part of Pirelli Manufacturing System

BC Training System based on 5 key-elements

Blue Collars Training System

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The Trainers


Kaizen Weeks

Agenda



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Context :

• Big investment in engaging the operators and cross-functional team in continuous improvement

• Things are changing and people ask to participate

• The trainers are set and participate actively in improving the efficiency

• Now we have to invest more on the shift leaders in order to support them

• This is a key category of managers with a lot of responsability and pressure

• …

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What is POSS ?

• POSS (Prometeon Operation Steering System);

• POSS (Prometeon Operation Steering System) is a set of tools, organization procedures and practices which together aim effectively to:

• Steer the performance and follow the standardized work implementation daily

• Identify, analyze and resolve problems in real time by involving everyone

• Launch the help chain when we encounter difficulties

• …

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Short Interval Management: POSS Levels

AreaPOSS Level 2

FactoryPOSS Level 3

CellPOSS Level 1

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Escalation of issues = HELP

AreaPOSS Level 2

FactoryPOSS Level 3

CellPOSS Level 1

When we are in a review , e.g. daily review IF we can not solve the deviations in this forum, Escalation

Daily Weekly

Weekly Monthly

1

2

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POSS and the Lack of Competence

RACI

De

pa

rtme

nt

Pilar KPI & OPI Description

Fre

qu

en

cy

Source UnitDocument

name

R

(Name)R

(Responsibility)

Ind

us

tria

l Dir

ec

tor

IE/P

MS

&

Co

ntr

olli

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ge

r

Ind

. Co

ntr

ole

r

Ind

us

tria

l

En

gin

ee

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inin

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oo

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d. m

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ildin

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ec

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Fin

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ad

Pro

d. D

ata

En

try

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ng

ine

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Sh

ift

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(Nu

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Building

ATCOSafety

Number of

Accident # of Accident Shift Visual Number

Phone Call Or

SMSShift Foremen I I I I R/A I I I I C C I I I

Building

ATCOSafety

Number of

Accident # of Accident Daily HSE Shift Report Number

HSE Shift

ReportNabil Helal

Shift HSE

TechnicianI I I I I R C I I I

Building

ATCOSafety

Number of

Accident # of Accident Week HSE Shift Report Number

HSE Shift

ReportNabil Helal

Shift HSE

TechnicianI I I I I R C I I I

Building

ATCOSafety

Number of

Accident # of Accident Month HSE Shift Report Number

HSE Shift

ReportM. Naeim HSE Assistant I I I I I I I C C I I I

Building

ATCOSafety Near miss # of near misses Shift HSE Shift Report Number Safety KPIs Shift Foremen R/A C

Building

ATCOSafety Near miss # of near misses Daily HSE Shift Report Number Safety KPIs Nabil Helal

Shift HSE

TechnicianI I I R I I I

Building

ATCOSafety Near miss # of near misses Week HSE Shift Report Number Safety KPIs Nabil Helal

Shift HSE

TechnicianI I I R I I I

Building

ATCOSafety Near miss # of near misses Month HSE Shift Report Number Safety KPIs M. Naeim HSE Assistant I I I I I I C I I I

Building

ATCOSafety 1st Aid # of 1st aid accident Daily HSE Shift Report Number Safety KPIs Nabil Helal

Shift HSE

TechnicianI I I R C I I I

Building

ATCOSafety 1st Aid # of 1st aid accident Week HSE Shift Report Number Safety KPIs Nabil Helal

Shift HSE

TechnicianI I I R C I I I

Building

ATCOSafety 1st Aid # of 1st aid accident Month HSE Shift Report Number Safety KPIs M. Naeim HSE Assistant I I I I I I C C I I I

Building

ATCOSafety

BBS (Behavior

based safety)

System used to improve the

employees' attitudeMonthly

BBS Observation

recordNumber Safety KPIs M. Naeim HSE Assistant I I I C C C I C C C

Building

ATCOMaint. Cost Of Spare Parts

cost of spare parts

consumptionMonthly SAP EGP

Cost of spare

part report

Hassan El-

Sayed

Electrical

Maint.ManagerI I

Building

ATCOMaint.

Cost of

Maint.Services

(EGP)cost of services Monthly SAP EGP

Cost of

Maint.Services

report

Hassan El-

Sayed

Electrical

Maint.ManagerI I

Building

ATCOMaint.

Air Consumption

(m3/Tire)consumption of air Monthly Flowmeter

(m3/

Tire)

Air

Consumption

Report

Yasser El-

KhatebUtilities Maint.Head I I I C C C C C C C C C

Building

ATCOMaint. # Breakdowns Total # of BD Shift

Defective Item

Control (DIC)Number

# Breakdown

reportElectrical Tech. I R/A A I I

Building

ATCOMaint. # Breakdowns Total # of BD Day

Defective Item

Control (DIC)Number

# Breakdown

reportM.Abd Raboh Electrical Engineer I

Building

ATCOMaint. # Breakdowns Total # of BD Week

Defective Item

Control (DIC)Number

# Breakdown


Building

ATCOMaint. # Breakdowns Total # of BD Month

Defective Item

Control (DIC)Number

# Breakdown


Building

ATCOMaint.

BDT

(Min)Break downtime by min. for

M/CsShift

Defective Item

Control (DIC)Number

Breakdown

reportElectrical Tech. I R/A A I I

Building

ATCOMaint.

BDT

(Min)

Break downtime by min. for

M/CsDay

Defective Item

Control (DIC)Number

Breakdown


Building

ATCOMaint.

BDT

(Min)

Break downtime by min. for

M/CsWeek

Defective Item

Control (DIC)Number

Breakdown


Building

ATCOMaint.

BDT

(Min)Break downtime by min. for

M/CsMonth

Defective Item

Control (DIC)Number

Breakdown


Building

ATCOMaint. PM Hr. Preventive Maintenance Month

Plan and Actual

PM reportHour

Plan and Actual

PM reportM.Abd Rabo

Electrical

Maint.EngineerI C C I

Building

ATCOMaint. MPM (Hr.) MPM Monthly

Plan and Actual

PM reportHour

Plan and Actual

PM reportA.Hosny

Mechanical

Maint.EngineerI C C I C

Building

ATCOMaint.

PM Completion

(done/program)

PM Completion

(done/program) Monthly

Plan and Actual

PM reportHour

Plan and Actual

PM reportM.Abd Rabo

Electrical

Maint.EngineerI C C I

Building

ATCOMaint.

MPM Completion

(done/program)

MPM Completion

(done/program)Monthly

Plan and Actual

PM reportHour

Plan and Actual

PM reportA.Hosny

Mechanical

Maint.EngineerI C C I C

Building

ATCODelivery Prod. Volume Building No of Pieces Shiftily Manual Collection Pieces Log Book Shift Foremen I I R/A C C C

Building

ATCODelivery Prod. Volume Building No of Pieces Day Manual Collection Pieces Log Book 3rd Shift Foremen I C C I I A R C R C I I I

Building

ATCODelivery Prod. Volume Building No of Pieces Weekly Check Panel Pieces Check Panel M.Fathy Prod. Enginner I I C C I I A R C I I I

Building

ATCODelivery Prod. Volume Building No of Pieces Monthly Check Panel Pieces Check Panel

M.Abdel

SalamProd. Section Head I C C C C C A R C I C I

Building

ATCOProd. OEE

Over All Equipment

EffectivenessMonthly PCS % OEE Report Khaled Fathy

Morning Prod.

SupervisorI I I I A C C R C C C

Building

ATCOProd.

Waiting for Tread

(# tyres lost in

Curing)

Waiting for Tread (# tyres

lost in Curing)Shift Manual Collection Number

Curing Log

Book-

Curing Shift

ForemanI I A R C

Building

ATCOProd.

Waiting for Tread

(# tyres lost in

Curing)


lost in Curing)Day Manual Collection Number

Waiting for

Tread in Curing

Report

Khaled FathyMorning Prod.

SupervisorI I I I A I R

Building

ATCOProd.

Waiting for Tread

(# tyres lost in

Curing)


lost in Curing)Week Manual Collection Number

Waiting for

Tread in Curing

Report

Khaled FathyMorning Prod.

SupervisorI I I I A I R

Building

ATCOProd.

Waiting for Tread

(# tyres lost in

Curing)


lost in Curing)Month Manual Collection Number

Waiting for

Tread in Curing

Report

M.Abdel

SalamProd. Section Head I A I R I C C

R = Main responsible for the information A = Complete use of the information C = Collaborate with the owner "A" for result improvements I = Informed,

uses information

R.A.C.I MatrixResponsible

Accountable

Consulted

Inform

Activities/OPI Roles of Participation

This approach enables management to actively participate in the process of

systematically describing:

- Activities

- Decisions to be accomplished

- Clarity of responsibilities

R

A

C

I

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POSS Basic Concept…

The Basic concepts of POSS Management Experts

Planning

Organizing

Leading

Controlling

• Defining goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate activities

• Define which tasks have to be done, who has to do them, who reports to whom, and where decisions are made

• Directing and motivating all involved parties and dealing with employee behavior issues

• Monitoring activities to ensure that they are going as planned

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Manufacturing Director

Plant Manager

Production Manager

Area Coordinator

Shift Leader

Operator

Top

-D

ow

n

Strategy Dep

loym

ent &

Targets Align

men

t

Bo

tto

m -

Up

Res

ult

s fo

llow

up

&P

rob

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So

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g

Pirelli Operation Steering System

▪ Ensure the deployment from Strategic Vision to Operational Indicators

▪ Clear definition of Roles and Responsibilities

▪ Provide Tools & Methods to management

CellPOSS Level 1

AreaPOSS Level 2

FactoryPOSS Level 3

POSS : Goal alignment & Results follow up

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Shift PerformanceReview

Daily Performance Review

Weekly Performance

Review

MonthlyPerformance Review

Short Interval

Management

Factory KPI targets

Factory OperationalMaster Plan

IndustrialChoices

Business priorities

TransformationMap

StrategyDeployment

Loss priorities

Result plans

Kaizen week /Improvement

teams

New Standards

Process control

Daily control

to minimize deviations

Prometeon Operations Steering System

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Standard meeting agenda

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Before / After

Before

After

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Shift Leader development

2Assessment

gap-analysis

current expect current expect current expect

HSE basics and BBS - 5 Oversee your shopfloor - 5 Initiative - 4

PMS tools and methods - 4 Position your workers - 4 Problem solving & decision making - 4

Tyre Product and process - 5 Own your continuos improvement - 3 Execution & Discipline - 5

Labour law contract - 3 Execute your production plan - 5 Inspiring & motivating people - 4

Quality basics and BBQ - 5 Check your hourly performance - 4 Communication & networking - 5

Maintenance knowledge - 3 Ensure your standards - 5 Resilience & adaptability - 4

Industrial costs drivers - 4 Plan your manpower - 4 Leadership - 5

PRODUCTION AREA MANAGER

on shift timelapse

KNOWLEDGE SKILLS ATTITUDES

SHOP FLOOR LEADER : CAPITANO

0

1

2

3

4

5

Oversee yourshopfloor

Position your workers

Own your continuosimprovement

Execute yourproduction plan

Check your hourlyperformance

Ensure your standards

Plan your manpower

0

1

2

3

4

5Initiative

Problem solving &decision making

Execution & Discipline

Inspiring & motivatingpeople

Communication &networking

Resilience &adaptability

Leadership

0

1

2

3

4

5HSE basics and BBS

PMS tools andmethods

Tyre Product andprocess

Labour law contractQuality basics and

BBQ

Maintenanceknowledge

Industrial costsdrivers

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Two boards for the OPI Management(1 for ecah day)

Deviations analysis board (1 per shift)

A B C D

Maintenance Management board

Detail of the main information

POSS Activities

Contracto de las reuniones

Clock

Meetings records

RACI matrix (two areas)

Example of POSS rooms

Time of Meetings

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Common and Standardized approach WW

LATAM

LATAM

MEA

EUROPE

RUSSIA

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Main Results – 2017-2018

~600.000

Training hours 340 HC

Efficiency

120 Kaizen weeks

+9%

volume

increase80 Blue Collar Trainers

Shared Contents✓ Industrial Efficiency Basic Training✓ Standard time definition ✓ OEE / Losses✓ 5S Training✓ Restoring Basic Conditions ✓ PET Training ✓ POSS trainingPrometeon Management System (PMS)

DH and Aeolus

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Shift Change at 0 cost

Capacity Increase at 0 cost

Product improvement at 0 cost

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Main results

2 prizes won in 2017 :

- 1st Prize of Best team for efficiency increase in Chemchina- 1st Prize Best Innovation team in Chemchina tyre division

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Focus on a few methodologies to ensure a success story


The Trainers


Kaizen Weeks

Agenda



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Quick conclusion on methodology

In order to generate sustainable efficiencies :

Empower an organization to steer the operational excellence

Create a succession of succes stories to creat trust, win support and interest (KW)

Free capacity (HC) to develop the trainers (KW)

Empower a shop-floor quick reaction organization to deploy and sustain standards and efficiency : The trainers

Support the management, Deploy a quick help-chain from the shopfloor and deploy clear targets (POSS)

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marketing organization as-is (focus on hq and ge)

Documents