World Class Manufacturing

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World Class  Manufacturing
Scott Garberding Scott Garberding
Chrysler Group LLC 2010‐14 Business Plan Chrysler Group LLC 2010 14 Business Plan November 4, 2009

World Class Manufacturing (WCM) headlines

… From Turin they remark that the essential element in order to have  everything working well is the human component, since without full  involvement of the workers nothing could be made. …In the internal ranking, the Marchionne Code, which is in the company language described as Fiat Group  Automobiles Production System (FAPS), finds its best application in Tychy Plant in Poland, and in Melfi Plant  in Italy. Now the attempt is to elevate to acceptable standard also Pomigliano Plant…

6, December 2007

Chrysler Group LLC 2010‐14 Business Plan

November 4, 2009

2

Journey to WCM

Fiat Group  p
2004
WCM Launch C au c

Fiat Group focus – Holistic approach World Class Manufacturing • 20 Pillars

2005

2006

2008

2009

2010

One common  manufacturing  operating system p g y

Chrysler Group LLC
2004 2005 2006 2008 2009 WCM Launch 2010

Chrysler Focus

• Safety • Q lit Quality • Harbor Report

Chrysler Group LLC 2010‐14 Business Plan

November 4, 2009

3

WCM structure & objectives

Safety
Cost  deployment

Workplace organization

Quality

Maintenance

Logistic

Method & std. Focus

Total industrial  engineering

Total quality  q y control

Total productive  p maintenance

Just in time Just‐in‐time

Productivity

Quality improvement

Technical efficiency

Service level

Target Values

zero  waste

zero  defects

zero  breakdowns

zero  inventory

People involvement, value creation, customer satisfaction Chrysler Group LLC 2010‐14 Business Plan November 4, 2009 4

Why implement WCM?

Introduction of WCM

Fatality

Severe Injury Lost Time Injury Recordable Injury / Illness

First Aid Cases

Lost w work day inc cident rate

Near Misses

17% 15% 7%

Unsafe Conditions Unsafe Acts

Teaching us to see new  opportunities
35% improvement

2005

2006

2007

2008

(NAFTA manufacturing)

2009E ytd 2010E

Chrysler Group LLC 2010‐14 Business Plan

November 4, 2009

5

Why implement WCM?

Introduction of WCM
26 25

24

Harbour Hours Pe er Vehicle

Rigorous methodology  for improvements f i t
5.7% 1.3% 9%

23

22

21

20

19

2004

2005

2006

2007

2008

2009 ytd E

2010E

2011 E

(Assembly)
Chrysler Group LLC 2010‐14 Business Plan November 4, 2009 6

New leadership model

Previous Structure Previous Structure
Plant Manager

Current Structure
Plant Manager

Team Leader Team Leader Team Member

Team Leader

Team Member

Fully engaged  workforce

Direct  Communication Ownership at  Operator Level Quick Decision  Making

Chrysler Group LLC 2010‐14 Business Plan

November 4, 2009

7

WCM in action

Working together

Execution

Results

Chrysler Group LLC 2010‐14 Business Plan

November 4, 2009

8

WCM in action

Before

After

Flexion angle of the waist
Level 1
More  than 30°

Flexion angle of the waist
Level 1
More  than 30 than 30°

Level 2
15° ‐ 30°

Level 3
0° ‐ 15°

Level 2
15° ‐ 30°

Level 3
0° ‐ 15°

52% elimination of ergonomic risks
Chrysler Group LLC 2010‐14 Business Plan November 4, 2009 9

WCM in action

Before

After

• Inventory reduced • Material delivered to point of use  • 57% reduction in operator walk time 57% reduction in operator walk time

Chrysler Group LLC 2010‐14 Business Plan

November 4, 2009

10

WCM in action

Before

After

Equipment  co d o s conditions  hidden Eq quip

Maintained  o easy for easy  inspection Equip

Equipment restored to original state
Chrysler Group LLC 2010‐14 Business Plan November 4, 2009 11

WCM in action

Before

After

Improved work conditions

Chrysler Group LLC 2010‐14 Business Plan

November 4, 2009

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