Agenda • Company history

• The Lean journey

• Why QRM and Examples

• QRM Organization and Analysis

• Solution and Implementation

• Results and KPI Structure

• Eye-opener and Challenges

• The Future

Company history

• Danish company

• Founded in 1873

• During the sixties supplier of Luna mixers to Danish hospitals

Cooperation with Arne Jacobsen

• 1961 Arne Jacobsen won competition for National Bank of Denmark

• 1968 The Vola design conceived

TRADITIONEL PRODUCTION Batch and Queue

HV1-16

10921116Roset

16921100Roset

30505189Roset

50201080MS-Plade

40101002Låsekap

10100116Krop HV1

16100100HV1 Krop

poleret

20101001HV1 Krop

loddet

30101001HV1 Krop

50101008MS-Stang

20101005HV/RB tud/lod

50101006MS-Stang

50201087HV/RB tud(Indkøbt)

40101003Katusche

10100216Greb10

16100200Greb10

30101017Greb10

50101003MS-Stang

10100416Hylster luftbl.

16100400Hylster luftbl.

30101010Hylster luftbl.

50101007MS-Stang

40402105Vandbegræn

ser

10953789Tilgangsrør

20101008Tilgangsrør

rå

30202017Muffe

50101088MS-Stang

50101001CU-RØR

20101010Montage sæt

30202017Møtrik

50101009MS-Stang

40505167O-ring

10952089Omløber

10100316Vippegreb

10100616Pind

vippegr.

30101004Omløber

50101004MS-Stang

30101009Nippelrør

50101034MS-RØR

16100300Vippegreb

30101003Vip. drejet

50101003MS-Stang

16100600Pind

vippegr.

30101002Pind vippegr.

50101002MS-Stang

40502030Styropor

40402030Pinolskrue

40600020Vejledning

40101007Luftblander

40402082Plastikpose

40403013O-ring

40502005Kasse

40600032Vedligeholdvejledning

30101007Gevind nippel

PARTLIST LEVEL 0

PARTLIST LEVEL 2

PARTLIST LEVEL 1

PARTLIST LEVEL 3

PARTLIST LEVEL 4

PARTLIST LEVEL 5

PARTLIST LEVEL 6

3500 salesorders

700 P-orders

225 P-orders

180 P-orders

75 P-orders

VOLA SALES

Customers

VOLA DK MUDA

MUDA

Stock

Stock

VOLA SALES

Customers

VOLA DK

Stock

MACHINING

SOLDERING

POLISHING ASSEMBLING

STORRAGE &

SHIPMENT

Time to Market (Continuously focus on flow)

Results

• The lead time went from around 30 days to 3 days on 95% of all products

• The delivery service went from 60% to 95%

• 44% of all orders are delivered within 1 day

Challenges ahead….

Goals 2015

Increase projects sales in order to reach 50% daily business – 50 % project sales in 2015 We have a goal, to increase sales in order to develop our business. We need new business. We have to win new orders from new customer groups. And we need to create the sales ourselves and not be dependent on the wholesalers who have their own private labels and are working actively against us. We have to get new business by offering VOLA products within new product categories – that do not cannibalize our existing products.

• Increasing demand of “non standard” products

• Develop new products faster

• Implementing new products in the “value chain” faster

Challenges ahead….

For more than 10 years VOLA has tried to minimize variance….

Now we have to celebrate it….

The new way of thinking

We only made customized products in the hope that we could sell more standard products

The new way of thinking

Now we want to make it a competitive advantage with focus on margin not just “good service”

Agenda • Company history

• The Lean journey

• Why QRM and Examples

• QRM Organization and Analysis

• Solution and Implementation

• Results and KPI Structure

• Eye-opener and Challenges

• The Future

Why the QRM paradigm?

• Intuition from 2005 / trip to the Netherlands in 2010

• Commitment from top-management in 2012 QRM Vision/Mission: • Celebrating variants, by transforming it to a competitive advantage

Why QRM?

Low volume High mix

Custimized orders

Examples

Agenda • Company history

• The Lean journey • Why QRM and Examples

• QRM Organization and Analysis

• Solution and Implementation

• Results and KPI Structure

• Eye-opener and Challenges

• The Future

QRM Road Map

1 4 11 13 7 14

2 3 10 12 6

9

Pre analysis

Analysis MCT

Mile Stone 1

Design FTMS Cells

Mile Stone 2

Implemen-tation Q-ROC QRM Cells

Site visit

Start up Q-ROC

QRM Cells

Mile Stone 3

Change Management

VOLA Training

QRM Module

1

QRM Module

2

VOLA Training

2

QRM Module

3

16 8 5

Training and Education

Project Implementation

Change Management

Analysis

Routings

BOM

MCT

FTMS

Interview Blue collar

Interview white collar

Financial analysis

Sales analysis

Conclusion

Analysis

• Handover of responsibility

DE DK

Sales Pl.

Dept. R&D

S C P A S

T C

Analysis

• High factory MCT – 10 and 20 days

• Rigid system

• Handover responsibility

• Long and complicated Value Stream

• All knowledge was allocated to few persons

• 33 % of all orders could be picked directly at raw part inventory

Agenda • Company history

• The Lean journey • Why QRM and Examples

• QRM Organization and Analysis

• Solution and Implementation

• Results and KPI Structure

• Eye-opener and Challenges

• The Future

QROC

Target Market Segment: Customer Specific Orders

FTMS

FTMS: “Pick & Pack” Spare parts with no SKU number, but production part number

QRM celle QRM celle QROC

QRM Cell: QRM number Policies Skills Matrix

FTMS FTMS

Q-ROC/QRM Cell: QRM number Policies Skills Matrix

Q-ROC: QRM number Policies Skills Matrix

Solution

FTMS: Customized Products Orders that do not need Engineering Drawings

FTMS: Customer Specific Orders that need new Engineering Drawings

QROC

Target Market Segment: Customer Specific Orders

FTMS

QRM celle QRM celle QROC

QRM Cell: QRM number Policies Skills Matrix

FTMS FTMS

Q-ROC/QRM Cell: QRM number Policies Skills Matrix

FTMS: Customized Products Orders that do not need Engineering Drawings

FTMS: Customer Specific Orders that need new Engineering Drawings

Q-ROC: QRM number Policies Skills Matrix

Solution

FTMS: “Pick & Pack” Spare parts with no SKU number, but production part number

Solution & Implementation

• FTMS: ”Pick & Pack” and ”Customized Products” – Pick & Pack: New order procedure in current ERP system

• Implemented in 8 countries – Customized products: Office work, minor R&D tasks and production

handled in QRM / QROC cell

• New QRM-team – Cross training (8 in 1) – Direct communication with sales departments

• Drawing templates to avoid R&D

• New information board and KPI structure

Solution

DE DK Sales

Pl. Dept. R&D

S C P A S

T C

QRM

P

T A

S

P

S

R&D

DK

Where are we today

• QRM Cell launched April 2nd, 2013 – Cross training

– Continues improvements

– Development guidelines

and drawings

• Directly communication with sales departments

Agenda • Company history

• The Lean journey

• Why QRM and Examples

• QRM Organization and Analysis

• Solution and Implementation

• Results and KPI Structure

• Eye-opener and Challenges

• The Future

Results

• Work in Process: – Before: An average of 90 open orders – Now: An average of 20 open orders

• MCT:

– Before: Pick & Pack =10 days Customized Products = 18 days – Now : Pick & Pack = 2 days Customized Products = 6 days

• Delivery service: – Before: 98 % – Now: 98 %

Agenda • Company history

• The Lean journey

• Why QRM and Examples

• QRM Organization and Analysis

• Solution and Implementation

• Results and KPI Structure

• Eye-opener and Challenges

• The Future

Eye-opener

Challenges

• New way of thinking • No reference companies • More responsibility

Agenda • Company history

• The Lean journey

• Why QRM and Examples

• QRM Organization and Analysis

• Solution and Implementation

• Results and KPI Structure

• Eye-opener and Challenges

• The Future

The Future

• Pilot project identifying the ”VOLA-way”

• Excisting QRM cell should be expanded and more self-propelled

• When the concept is performing, it should be used as a selling parameter