Strategic Lean Six Sigma

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<ul><li> 1. <ul><li>Strategic Lean Six Sigma </li></ul></li></ul> <ul><li>Colin Smart </li></ul> <ul><li>Vice President Business Excellence</li></ul> <ul><li>&amp; Six Sigma </li></ul> <ul><li>28 thJune 2006 </li></ul> <p> 2. TRW Automotive - Profile </p> <ul><li>Headquartered in Livonia, Michigan </li></ul> <ul><li>63,000+ employees worldwide </li></ul> <ul><li>More than 200 facilities in 25 countries </li></ul> <ul><li>Serves all major OEM vehicle manufacturers worldwide and their suppliers </li></ul> <ul><li>Leading developer and supplier of active and passive safety systems </li></ul> <p> 3. Supporting Customers Globally </p> <ul><li>Manufacturing facilities includes majority-owned joint-venture facilities (as of December 31, 2005) </li></ul> <ul><li>Total headcount includes only active employees (as of December 31, 2005) </li></ul> <ul><li>Primarily South America </li></ul> <p>Asia-Pacific ROW(3) </p> <ul><li>2005 Sales $0.4B </li></ul> <ul><li>8 Mfg. Facilities (1) </li></ul> <ul><li>4,400 Employees (2) </li></ul> <ul><li>3 Joint Ventures </li></ul> <ul><li>Primarily Chassis and Aftermarket </li></ul> <ul><li>2005 Sales of $7.0B </li></ul> <ul><li>77 Mfg. Facilities (1) </li></ul> <ul><li>33,800 Employees (2) </li></ul> <ul><li>1 Joint Venture </li></ul> <ul><li>All products and Aftermarket </li></ul> <ul><li>2005 Sales of $0.7B </li></ul> <ul><li>20 Mfg. Facilities (1) </li></ul> <ul><li>3,600 Employees (2) </li></ul> <ul><li>14 Joint Ventures </li></ul> <ul><li>All products and Aftermarket </li></ul> <p>Europe </p> <ul><li>2005 Sales of $4.6B </li></ul> <ul><li>40 mfg. facilities (1) </li></ul> <ul><li>21,300 employees (2) </li></ul> <ul><li>3 Joint Ventures </li></ul> <ul><li>All products and Aftermarket </li></ul> <p>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 4. TRW Automotive - Advanced Technologies Active Safety Steering Wheel Systems Touch Sensor in Steering Wheel Rim Vibrating Steering Wheel Illumination Technology Contactless Horn System Path-free use of Horn Linkage &amp; Suspension Systems Active Dynamic Control Control Arms Ball Joints Stabilizer Links Tie Rods Modules Braking Systems Anti-Lock Braking (ABS) Traction Control Electronic Stability Control (ESC) Electric Park Brake Integrated Park Brake Calipers Active Hydraulic Boost Actuation Driver Assist Systems Adaptive Cruise ControlLane Guide Systems Collision Warning Steering Systems Hybrid Enabling Active Steering Electrically Powered Hydraulic Steering Rack and Pinion Steering Electrically Powered Steering Belt Drive Electrically Powered Steering Column Drive Speed Proportional Steering 5. TRW Automotive - Advanced Technologies Passive Safety Steering Wheel Systems Steering Wheel with Integrated Microphone Electrical Connections Fixed Driver Airbag Module Airbags Driver Airbags Passenger Airbags Self Adapting Vent Active Venting Low Risk Deployment Knee Airbags Side Airbags Curtain/Rollover Airbags Seat Belt Systems Active Control Retractor Seat Belt Retractors Load Limiters Buckle Pretensioners </p> <ul><li>EnTire Solution </li></ul> <ul><li>Direct Tire Pressure Monitoring </li></ul> <ul><li>Products from JV with Michelin </li></ul> <p>Safety Electronics ECU and Remote Sensors Vision System Pedestrian Protection Weight Sensing System 6. TRW Automotive - Advanced Technologies Integrated Safety Systems Lane Departure Warning Steering Torque Control with Electronic Stability Control Lane Guidance Rollover Prevention and Mitigation Collision Warning and Preparation 7. TRW Automotive Worldwide Sales Ford 16% DaimlerChrysler 14% General Motors 11% Other 16% 2005 Sales by Customer -$12.6 Billion Volkswagen 14% Renault/Nissan 9% BMW 4% PSA 4% Fiat 4% Toyota 3% Honda 3% Hyundai 2% 8. TRW Automotive Global Market Presence 9. </p> <ul><li>Effectively integrating strategy-focused Lean/ Six Sigma - Aligning your program with your company strategy. </li></ul> <ul><li>The practicalities of moving from a tactical to a strategic perspective. </li></ul> <ul><li>Linkage of continuous improvement to strategic planning to support the long-term objectives of the business </li></ul> <p>Purpose 10. </p> <ul><li>Effectively integrating strategy-focused Lean/ Six Sigma - Aligning your program with your company strategy. </li></ul> <ul><li><ul><li><ul><li>Making SureYouAre Part of the Solution </li></ul></li></ul></li></ul> <ul><li>The practicalities of moving from a tactical to a strategic perspective. </li></ul> <ul><li><ul><li><ul><li>Getting Your Head out of the statistics </li></ul></li></ul></li></ul> <ul><li>Linkage of continuous improvement to strategic planning to support the long-term objectives of the business </li></ul> <ul><li><ul><li><ul><li>Making sure everyone knows what they are</li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>trying to achieve </li></ul></li></ul></li></ul> <p>Purpose 11. </p> <ul><li>Define </li></ul> <ul><li><ul><li><ul><li>Why it is so difficult to be Lean /Six Sigma </li></ul></li></ul></li></ul> <ul><li>Measure </li></ul> <ul><li><ul><li><ul><li>Understanding that They dont care about p values </li></ul></li></ul></li></ul> <ul><li>Analyse </li></ul> <ul><li><ul><li><ul><li>How you make change happen </li></ul></li></ul></li></ul> <ul><li>Implement </li></ul> <ul><li><ul><li><ul><li>What can you set up to get the results </li></ul></li></ul></li></ul> <ul><li>Control </li></ul> <ul><li><ul><li><ul><li>How you keep it going </li></ul></li></ul></li></ul> <p>Agenda 12. </p> <ul><li>Thousands of Books </li></ul> <ul><li>Hundreds of Consultants </li></ul> <ul><li>Plenty of Ex Toyota Experts </li></ul> <ul><li>Plenty of Ex Toyota Employees </li></ul> <p>Why is it so difficult? Toyota Production System </p> <ul><li>Tens of thousands of Books </li></ul> <ul><li>Thousands of Consultants </li></ul> <ul><li>Plenty of Ex GE/ Motorola Experts </li></ul> <ul><li>Plenty of Ex GE/Motorola Employees </li></ul> <p>Six Sigma So Why is it so difficult?........ Are we all just Stupid? 13. Brief History of Lean </p> <ul><li>The Toyota Production System (TPS) is still unrivaled </li></ul> <ul><li>Toyota have recreated process throughout world </li></ul> <ul><li>Toyota people have been recruited by Followers </li></ul> <ul><li>Every Consultancy on earth does a Lean program </li></ul> <p>So what arewe missing? 14. Brief History of Lean </p> <ul><li>What you see is the finished product </li></ul> <ul><li>What you can analyze is the ingredients </li></ul> <ul><li>What you cannot see is the recipe </li></ul> <p>Problem : Unlike Coca Cola . Most practitioners have forgotten the recipe 15. Brief History of Lean </p> <ul><li>Analogy:Knowledge Of Calculus </li></ul> <ul><li><ul><li>One problem or knowledge of Calculus? </li></ul></li></ul> <ul><li>Competency is knowing how to handle Things gone wrong </li></ul> <p>Basic Thing to do:Recreate the Learning of Lean Education not Training 16. Brief History of Lean </p> <ul><li>But there is More: </li></ul> <ul><li><ul><li><ul><li>The skills are linked you have to learn them in a particular sequence </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li><ul><li><ul><li>Addition, Subtraction, Multiplication, Division, Algebra, Geometry, Trigonometry, Then Calculus </li></ul></li></ul></li></ul></li></ul></li></ul> <p>Basic Thing to do:Recreate the Learning of Lean You can customize the process but if you change it too much 17. </p> <ul><li>Define </li></ul> <ul><li><ul><li><ul><li>Why it is so difficult to be Lean /Six Sigma </li></ul></li></ul></li></ul> <ul><li>Measure </li></ul> <ul><li><ul><li><ul><li>Understanding that They dont care about p values </li></ul></li></ul></li></ul> <ul><li>Analyse </li></ul> <ul><li><ul><li><ul><li>How you make change happen </li></ul></li></ul></li></ul> <ul><li>Implement </li></ul> <ul><li><ul><li><ul><li>What can you set up to get the results </li></ul></li></ul></li></ul> <ul><li>Control </li></ul> <ul><li><ul><li><ul><li>How you keep it going </li></ul></li></ul></li></ul> <p>Agenda 18. Lean Six Sigma as a Strategy </p> <ul><li>Hard truth is this: </li></ul> <ul><li><ul><li><ul><li>Shareholders dont really care if you are Lean or not </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li><ul><li>If you are 6 sigma or 2 sigma </li></ul></li></ul></li></ul></li></ul> <ul><li>So stop seeing Lean Six Sigma as an overarching strategy </li></ul> <ul><li><ul><li><ul><li>Its in the Toolbox </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>Its the way to get the strategy done </li></ul></li></ul></li></ul> <p> 19. So whatdothey care about? </p> <ul><li>Company strategy </li></ul> <ul><li><ul><li><ul><li>Growth </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>Profit </li></ul></li></ul></li></ul> <ul><li><ul><li>Basically delivering value.. </li></ul></li></ul> <p> 20. TRW Business Environment Customer Priority COST 1 COST 2 COST 3 COST 4 COST 5 21. TRW Business Environment Customer Expectation 1. Increasing Quality (with reducing COST) 2. Better Technology (with reducing COST) 3. Global Reach (with reducing COST) 22. TRW Business Environment </p> <ul><li>To Survive . need to grow </li></ul> <ul><li>To Grow . need to give customer what they need </li></ul> <p>Business Requirement QUALITY COST GLOBAL REACH INNOVATION 23. 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. 24. How it Fits at TRW Objectives / Priorities Vision 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 Learning Culture: 25. </p> <ul><li>Define </li></ul> <ul><li><ul><li><ul><li>Why it is so difficult to be Lean /Six Sigma </li></ul></li></ul></li></ul> <ul><li>Measure </li></ul> <ul><li><ul><li><ul><li>Understanding that They dont care about p values </li></ul></li></ul></li></ul> <ul><li>Analyse </li></ul> <ul><li><ul><li><ul><li>How you make change happen </li></ul></li></ul></li></ul> <ul><li>Implement </li></ul> <ul><li><ul><li><ul><li>What can you set up to get the results </li></ul></li></ul></li></ul> <ul><li>Control </li></ul> <ul><li><ul><li><ul><li>How you keep it going </li></ul></li></ul></li></ul> <p>Agenda 26. Why Change is hard </p> <ul><li>Organisations find it difficult to change</li></ul> <ul><li><ul><li><ul><li>Because you run into the Machiavelli effect </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li> 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. </li></ul></li></ul></li></ul> <p> 27. </p> <ul><li>People Dont Like Change </li></ul> <ul><li><ul><li><ul><li>If its not their idea! </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>If they dont understand why </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>If they dont see the value </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>If they cant see the whole picture </li></ul></li></ul></li></ul> <p>Why Change is hard 28. How to make change Happen </p> <ul><li>Where are we going </li></ul> <ul><li>Where are we Now </li></ul> <ul><li>What do we need to change (next) </li></ul> <ul><li>How do we change it </li></ul> <ul><li>Commitmentto see it through </li></ul> <p>Only Five Requirements for change: 29. Breaking down the barriers to change </p> <ul><li>Clear Vision </li></ul> <ul><li><ul><li><ul><li>Make it visible, clear &amp; logical </li></ul></li></ul></li></ul> <ul><li>Logical Steps </li></ul> <ul><li><ul><li><ul><li>Meaningful and Long term </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>StraightforwardPlan</li></ul></li></ul></li></ul> <ul><li>Involved Planning </li></ul> <ul><li><ul><li><ul><li>Make the people Architects not victims </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>Dont be afraid to talk about the need to make/ save money </li></ul></li></ul></li></ul> <ul><li>Methodical Implementation </li></ul> <ul><li><ul><li><ul><li>Measure Improvement objectively </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>Measure it consistently </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>Be open</li></ul></li></ul></li></ul> <p> 30. </p> <ul><li>Define </li></ul> <ul><li><ul><li><ul><li>Why it is so difficult to be Lean /Six Sigma </li></ul></li></ul></li></ul> <ul><li>Measure </li></ul> <ul><li><ul><li><ul><li>Understanding that They dont care about p values </li></ul></li></ul></li></ul> <ul><li>Analyse </li></ul> <ul><li><ul><li><ul><li>How you make change happen </li></ul></li></ul></li></ul> <ul><li>Implement </li></ul> <ul><li><ul><li><ul><li>What can you set up to get the results </li></ul></li></ul></li></ul> <ul><li>Control </li></ul> <ul><li><ul><li><ul><li>How you keep it going </li></ul></li></ul></li></ul> <p>Agenda 31. Quick Recap of Lessons so far: </p> <ul><li>Its not an initiative thing </li></ul> <ul><li>Its the Company strategy thats important not your tool </li></ul> <ul><li>The 5 Change enablers </li></ul> <ul><li><ul><li><ul><li>Clear Vision </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>Honest Assessment of where we are </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>Understanding of what has to change next </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>Knowledge of how to make change </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>Desire to get it done </li></ul></li></ul></li></ul> <ul><li>Need to learn as we go </li></ul> <ul><li><ul><li>(Dont teach Calculus to kindergarten) </li></ul></li></ul> <ul><li>People as architects and builders not as victims </li></ul> <p> 32. Roadmap Principles </p> <ul><li>Cant get to world class in one step </li></ul> <ul><li>There is a logical path to follow </li></ul> <ul><li>We are not all starting from the same place </li></ul> <ul><li>We are not creating anything new, others have been there before us </li></ul> <ul><li>Uses all the ideas we discussed before </li></ul> <p> 33. 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 Excellence OF Order Fulfilment BE Business Excellence Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7 BE Embedding Contract Acquisition Roadmap Development LaunchRoadmap Embedding Sales &amp; Business Development Strategy Training Launch Deployment &amp; Integration Launch Roadmap Development OF Roadmap Embedding DFSS Awareness &amp; Training OF Deployment &amp; Integration OF Roadmap Development OE Roadmap Embedding 6 Sigma Awareness &amp; Training OE Development 34. How Roadmaps Work at TRW Business Excellence Realization of Zero - Incidents - Defects - Waste Production at pace and sequence of the customer OperationsExcellence Roadmap Process Maturity Fundamentals Pursue Perfection Product Cells Improvement Pull 35. Business Excellence Roadmap Primary Roadmap Functional Process Roadmaps - Business Management - Customer Management - Financial Excellence - HR &amp; Development - Information Systems - Operations - Quality Excellence - Supply Chain One Company, One Process, One Standard 36. Not enough to have pretty pictures</p> <ul><li>Actions need to happen </li></ul> <ul><li><ul><li><ul><li>Actions need to be seen to happen </li></ul></li></ul></li></ul> <ul><li>Benefits need to be forthcoming </li></ul> <ul><li><ul><li><ul><li>Benefits need to be seen to be forthcoming </li></ul></li></ul></li></ul> <ul><li>Benefits need to be real </li></ul> <ul><li><ul><li><ul><li>Benefits need to be seen to be real </li></ul></li></ul></li></ul> <p>If I cant see it.It didnt happen 37. Devil is in the Detail Roadmap: Phase Descriptions Phase: Step Narrative Element Description Supporting Materials Step Plan: Specific Actions Assessment Criteria Implementation : Metrics and Audits Business Excellence Roadmap 38. Infrastructure </p> <ul><li>Infrastructure is a Necessary Evil </li></ul> <ul><li><ul><li>Any business of more than 150 people needs infrastructure </li></ul></li></ul> <ul><li><ul><li>Sharing across large numbers of people is key challenge </li></ul></li></ul> <ul><li><ul><li>Issue relates to basic Human nature </li></ul></li></ul> <ul><li><ul><li><ul><li>Why would I put in effort to benefit someone I dont know? </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>Why would I take advice from someone I dont know? </li></ul></li></ul></li></ul> <ul><li>Infrastructure needs to have minimal input and maximum output </li></ul> <ul><li><ul><li>Need to get out more than I put in! </li></ul></li></ul> <p> 39. Business Excellence Web Site </p> <ul><li>This site provides access to: </li></ul> <ul><li><ul><li>BE Notifications and Updates </li></ul></li></ul> <ul><li><ul><li>The BE Materials Library </li></ul></li></ul> <ul><li><ul><li>The Roadmaps </li></ul></li></ul> <ul><li><ul><li>BE Glossary </li></ul></li></ul> <ul><li><ul><li>Forums </li></ul></li></ul> <ul><li><ul><li>BE System / e-QOS </li></ul></li></ul> <ul><li><ul><li>Business Manual </li></ul></li></ul> <ul><li><ul><li>Summary of Implementation Progress </li></ul></li></ul> <p> 40. Business Excellence Web Site / BE Status </p> <ul><li>Web based packs allow online </li></ul> <ul><li>Activity planning and implementation </li></ul> <ul><li>Recording of sub actions (optional) </li></ul> <ul><li>Provide targets and actuals for velocity metrics </li></ul> <ul><li>Deployment of change message within packs </li></ul> <ul><li>Access to supporting materials via linked actions </li></ul> <ul><li>Modification time, date stamp </li></ul> <ul><li>Auto step plan forecast creation </li></ul> <ul><li>RST Acceptance recording </li></ul> <ul><li>System automatically takes a capture status of businesses every 6 months </li></ul> <p>2003 2003 2003 41. Web Site / On Line reporting within System </p> <ul><li>Utility Report </li></ul> <ul><li><ul><li>Allows access to various planning and </li></ul></li></ul> <ul><li><ul><li>Implementation reports </li></ul></li></ul> <ul><li><ul><li>Recording of Audits </li></ul></li></ul> <ul><li><ul><li>Access to Checklist Library </li></ul></li></ul> <ul><li><ul><li>User Account reports </li></ul></li></ul> <ul><li>Pack and Checklist Implementation </li></ul> <ul><li><ul><li>Metrics </li></ul></li></ul> <ul><li><ul><li>Velocity metrics and compliance metrics </li></ul></li></ul> <p>BE Data View allows graphical view of Businesses Excellence Implementation 42. Basic Metrics </p> <ul><li>Basic Metrics </li></ul> <ul><li><ul><li>Std 13 Metrics </li></ul></li></ul> <ul><li>All Plants </li></ul> <ul><li><ul><li>All same measures </li></ul></li></ul> <ul><li><ul><li>Visible </li></ul></li></ul> <p> 43. Basic Metrics Note: Dummy Information, For Training purposes only 44. Basic Metrics Note: Dummy Information, For Training purposes only 45. Basic Metrics eQOS Graphic Note: Dummy Information , For Training purposes only 46. Actions speak louder than words </p> <ul><li>Delivering value is the key </li></ul> <ul><li>DWYSYWD </li></ul> <ul><li>Plann