1 / 21

World Class Operations’ programs

World Class Operations’ programs. Cost Integrated C ost R eduction (ICR) Business Excellence (BE) Footprint Fast growing m arkets Restructuring Capital Regional supplier base Manufacturing flexibility. Luc Graux Director, Manufacturing & Demand Chain. Direct material. Cost.

margot
Download Presentation

World Class Operations’ programs

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. World Class Operations’ programs Cost • Integrated Cost Reduction (ICR) • Business Excellence (BE) Footprint • Fast growing markets • Restructuring Capital • Regional supplier base • Manufacturing flexibility Luc Graux Director, Manufacturing& Demand Chain CMD 2014

  2. Direct material Cost Value added

  3. Direct material Cost reduction direct material Continue implementation of Integrated Cost Reduction (ICR) program • Supplier workshops • Cost improvement activities 2 Review technical solutions 3 1 3 ICR levels Reviewproduct specifications Optimize sourcing CMD 2014

  4. Direct material ICR direct material savings • Status • Program startedin 2007 • Replicationto all productlinescompleted • Savingsin line with plan • Next steps • Implementation of current saving ideas • Focus more on specification and design • ICR in all new customer offers CMD 2014

  5. Direct material Achievements – main projects • Optimizing forging design to reduce weight Before After -20% on component cost • Launch new ABS sensors concept with new supplier -25% on component cost CMD 2014

  6. Value added Business Excellence (BE) • Business Excellence for manufacturing CMD 2014

  7. KPI Value added Driving Business Excellence Spreading BE culture Harvesting Building BE culture Intro BE Business Excellence for Transactional processes Factory Manager Seminars • Deployment process and focus areas 2008 2009 2010 2011 2012 2014… 2013 • Tools, methods and manufacturing standards • Benefit tracking, contribution to results and improvements Core team and Boot camps CMD 2014

  8. Value added Excellence contributs to result (first 22 units) • Waste reduction • Labour costs • Shop supplies • Maintenance and repairs • Non-quality costs YTD savings doubled vs 2013 Reduction of inventory to sales ratio by 15% Improvement of on time delivery by 22% CMD 2014

  9. Value added Strengthen maintenance excellence and training Maintenance excellence: a program to reduce unplanned stops and improve machine uptime Learning center: a factory dedicated area for hands-on training Operational Learning centers started in fast growing markets 2013: 8 2014 : 14 2015: 21 Operational Target 2015 CMD 2014

  10. Footprint

  11. Expanding manufacturing in fast growing markets Jinan (China) Green field(2012) Truck bearings Kalofer(Bulgaria) Factory extension (2014) Seals Shanghai ATCII (China) Green field(2014) Car wheel bearings Mysore (India) Green field(2012) Seals CMD 2014

  12. On-going manufacturingrestructuring • Seals West-Europe: Transferring selected products from Italy to Bulgaria • France: Consolidate several manufacturing units into St Cyr site • USA: Consolidation of Franklin into Seneca, and closing Franklin • Brazil: Down-sizing operations and head office in line with market Bulgaria Brazil Italy France USA CMD 2014

  13. Automotive footprint synchronization 2013 Sales Production 45 factories in 39 locations Localization of supply in fast growing markets + 50% since 2008 Current alignment between local demand and local supply: 90% Further benefits of footprint adjustments Flexibility - Faster response to customer demands Currency - Risk exposure reduction Capital - Inventory reduction Transport - Risk and CO2 reduction CMD 2014

  14. Capital

  15. Flexible manufacturing • Overview • New standardized manufacturing concept • Modular technology • Pilot project installations • Benefits • Increased manufacturing flexibility to follow customer demand • Reduced operating cost and capital expenditure CMD 2014

  16. Cost Volume Flexi process technology Right technology for each manufacturing set-up! Super flexi model Flexi model High volume model CMD 2014

  17. Super flexible technology • Alternative to conventional machining • Resetting time: 1/10 • Tooling cost: 1/10 • Achievements • > 1 million bearings produced CMD 2014

  18. Capital efficiency • Factory model standardization • Machine standardization • Inventory reduction model • Supplier program • Manufacturing flexibility CMD 2014

  19. Robust supplier base Build strategic supplier relationships and a high performing supplier base Strategic suppliers 90 suppliersinvited from > 20 countries CMD 2014

  20. Optimizing cost with a robust supplier base • Europe • Build East Europe supply base • Asia • Strengthen supply base in Asia (India, China) • North and Latin America • Develop local supply in Mexico and Latin America • Global • Supply base consolidation • Dual sourcing policy • Strategic partnership with key suppliers • Supplier localization • Lead-time and delivery improvement CMD 2014

  21. Safety first A safe working environment in our factories Quality and Business Excellence Quality Management System Business Excellence for Manufacturing One SKF in Purchasing Robust supplier base and regional supply Continuous cost reductions through ICR Technology Strategy Focus on standardization and flexibility Strong link from innovation to factory Supply Chain Supplier localization program Manufacturing flexibility Key directions CMD 2014

More Related