1

Contents

1. The concept of Loss in WCM

2. WCM Introduction

3. WCM Pillars Basic Concepts

2
1. The concept of Loss in WCM

• Loss definition and types

• Losses are often hidden
• Losses measurement and elimination

3
1. The concept of Loss in WCM
Loss Definition

Loss: it is any use of resources that does

not add value to the product.

Excessive stock

Inactivity

Dirt and disorder

Scrap and defects

4
 1. The concept of Loss in WCM
Losses are often hidden…

Dirt Insufficient checks

and inspection

physically hidden

Negligence

Hidden losses
Weak signals
from subassemblies

psychologically
hidden
Inspection
difficulties
Evident but
neglected defects

5
 1. The concept of Loss in WCM
Losses are often hidden…

... walking

Before After

Source: Car Plant, Belgium

6
1. The concept of Loss in WCM
Losses are often hidden…

... reworks

7
1. The concept of Loss in WCM
Losses are often hidden…

...waste

8
1. The concept of Loss in WCM
Losses are often hidden…

...inactivity

Machine Man

9
1. The concept of Loss in WCM
Breakdowns are the consequence…

THE BREAKDOWN IS THE FINAL EVENT WHICH OCCURS DUE TO THE COMBINATION OF MANY
INVISIBLE PROBLEMS.
LATENT PROBLEMS ARE NORMALLY NEGLECTED OR IGNORED.

Latent problems

Breakdowns
Sla
cke
Rust n ed
Cra bol
cks ts

Dirt
ns
bratio Mat
i
V Dust Leaks
on e rial
rro
s i res at ure
Co idu
es mper
Wear Te
Deformations

10
 Common attitude towards
losses

Accident
The operator is not Inevitability
responsible for the All the machines
loss incurred are subject to
losses
No worry
All losses can be
regained

11
 Losses measurement and
elimination
Losses are widespread and expensive ...
but for the most part can be avoided
provided that:

... they are identified

... they are measured

... the appropriate tools are used

12
13
14
15
16
 Contents

1. The concept of Loss in WCM

2. WCM Introduction

3. WCM Pillars Basic Concepts

17
 IMPROVEMENT MANAGEMENT

Investments Innovations WCM (Kaizen)

 High dependence  High dependence  Step by step

on company funds on few persons improvement
 Fixed cost  Isolated work  Long term vision
increase in the  Difficult forecast  Commitment of all
medium term of improvement the personnel
magnitude

18
THE CONCEPT OF KAIZEN

KAIZEN - Gradual and continuous

improvement

Source: Efeso
19
INNOVATION - BIG JUMPS

New standard

INNOVATION

20
INNOVATION AND KAIZEN: THE WAY TO ACQUIRE &
KEEP A COMPETITIVE EDGE

Competitive advantage

Improvement

Innovation

Maintain

Restoring

Time
21
 WCM Introduction
What’s WCM?

 The key principle underlying WCM, is:

• Continuous Improvement

From the loss side this means

• Elimination of Losses

Thus in a production system this means

0 losses,
 produce just-in-time - zero stock
total quality control - zero defects.

22
 Targets in WCM

Productivity increase + 50%

Reduction in the number of breakdowns - 99%

Reduction of production defects 90%

Reduction of customers' claims 75-100%

Reduction of maintenance costs 30%

Stock reduction 50%

Accident reduction 100%

Pollution elimination 100%

Increase in the number of suggestions by operator 1000%

23
 Deployment definition

 It is a process highlighting, from macro to micro, the losses in order to

prioritise problems and define improvement action plan
 It is based on a progressive stratification of losses compared to the
typical parameters under study
 From the Concise Oxford Dictionary

(Military term): to spread out forces by lines or by people

Break down the whole into small parts

24
 MAKING A "DEPLOYMENT"
Based on selected driver, progressively identify the gaps &
set the targets
From macro level down to micro level: definition of specific
actions (under individuals & teams responsibility)

Macro indicators
External performance

Micro indicators
Internal performance

Actions
Teams

25
 Deployment means break a loss, from a general to an
specific level. The levels of deployment depends on each problem.
The good level is when is possible to start a team

The main
problem

GENERAL SPECIFIC
DEPLOYMENT
2nd Level of
1st Level of
deployment
deployment

26
 VARIOUS DEPLOYMENTS

Customer Satisfaction

Volume
Deployment

Quality Cost Lead Time

Deployment Deployment Deployment

Scrap Productivity Setup

Deployment Deployment Deployment

Breakdowns
Deployment

Projects and Teams

27
 1st Level of deployment: Example

30000 OEE Coati ng

quality loss
25000 100%

20000 speed loss

90%
Capacity
15000 Other stops
Forecast 80%
(23,25,26,27)
10000
Tools change (24)
70%
5000
60% Set-up time (12)
0
Printing Coating Slitting 50% Breakdow ns and
repairs (21)
40% Preventive
8%
Maintenance (28)
7%
6% 30% Force Majeure (31)
From the 5%
OEE

4%
plant level 3% 20% Education (30)
2%
to the main 1%
0% 10% Lack of orders
loss in the
g
r

ce
d

s
op

lity

s.
ai

in
er
ee

(29)
tu

re
ep

n
st

an
ua
d

Se

na
Sp

or

ck
R
rt

machine.
le
Q

te
o

La
o

C
Sh

0%
N

ai

netto production
M

time

28
 2nd Level of deployment: Example

8% 200 120%
7%
6%
min180
100%
5% 160
OEE

4%
140
3% 80%
2% 120
1% Duration
100 60% Frequency
0%
Time Acc
80

g
r

ce
rs

p
op

s.
ai

in
ee

lit
tu
de

re
ep

an
st

an
ua
Se
Sp

40%
or

ck
en
R
rt

le
Q
o

60

La
o

C
nt
Sh

ai
M

40
20%
20

BAANBREUKEN 0 0%

H
k

re
ar
n

r
r
k

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e

e
aa
de
u

eu

oo
PP

se
lic

lic

la

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ol
re

l
ru

ke
uf
sp

sp
Br

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ke
is
1200

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An
nd

t
Fe

Al
(W

Ex

ik
is

is
ik
ie
aa

pw
M

M
w

e
ol
nb

s
r/B

Af

lic
uf

al

O
flo

sp
w
Al
ie

Te

ip

is
p
1000

Pa

M
aantal minuten

800

600
From the machine loss
400

200
level to the team level.
0
22 x 20 x 16x 12x 9x

op instelrol omloper koelwals P&B/festoon op las of HM-splice tijdens splice

afwikkelaar

aantal keren

29
 Deployment of loss

POTENTIAL GAIN CALCULATION

•Techinical know how
Potential •Experience
reduction •Past WCM experience
known •Benchmark Pontential gain
causes •Targets (KPI, BSC) base for the
teams!
Loss Potential
reduction •Advanced WCM tools
unkown •Advanced data collection
causes
Technolo- •Minimum loss level with
gical the current machine
loss technology

30
 How WCM works?

WCM is based on TEAM WORK. Nothing can be

achieved if one works alone. But if we share our
experience across departments, everything is
EASIER!

31
 How WCM works?
Team Work

A sense of belonging

Better decisions

Involvement and communication

Increase flexibility

Start considering the work as part of a process

32
Visual Management
THE BOARD

33
Visual Management

 Makes it possible to understand the

work flow
 Allows you to know all the workplace
performances
 Communicates the problems to be
solved

34
Visual Management

 Visibility makes everything easier

 Makes it possible for you to
understand the work flow
 Allows you to know all the office's
performances
 Communicates the problems to
be solved

35
 Contents

1. The concept of Loss in WCM

2. WCM Introduction

3. WCM Pillars Basic Concepts

36
 WCM BASIC PRINCIPLES
WHAT ARE THE DIFFERENT ROLES ?

Owners
WCM Steering Committee

Coaches
Pillars
Roman Abramovich

Luiz Felipe Scolari

Players
Autonomous and
Improvement Teams
Kaka 37
WCM Pillars
The essence

1 Seek the losses

2 Eradicate losses

3
Maintain the condition

38
WCM Pillars definitions and roles

 Pillars have to convert WCM strategic

objectives into pillar targets.
 To achieve this pillars

Set the pillar Vision

Provide the pillar KPIs Deployments

Do a Gap analysis

Plan loss reduction

39
WCM Pillars definitions and roles

Pillars are structures that drive improvements

Pillars are cross functional, cross hierarchical

40
 Pillars
Focus Improvement

Focus improvement is to increase the efficiency of the machine (OEE)

and to promote kaizens on the shopfloor.

In other words

 To eliminate all kind of losses on the machine

 To reduce the waste of man (time), material (Waste)

41
 Pillar route example
Focus Improvement

1. Daily management
Build
Build the
the Zero
Zero Losses
Losses 2. Benchmarking
5 System
System 3. Cost / Benefits
management 1. Man / Machine detachment
2. Team efficiency
Productivity
Productivity &
& Flexibility
Flexibility improvement
4 Breakthrough
Breakthrough 3. Layout improvement
1. Man / Machine cycle time 4. Low Cost Automation
reduction (LCA)
Restore
Restore and
and improve
improve 2. Material change loss
3 current
current standards
standards reduction
3. Set-up time reduction
4. Material handling reduction 1. Volume deployment
Deploy
Deploy Focused
Focused 2. Cost deployment
2 Improvement
Improvement losses
losses 3. Productivity deployment
1. Define cost / volume / set 4. Set-up deployment
up
2. Identify cost / volume / set
1 Assess
Assess current
current situation
situation up losses
3. Implement a loss
measurement system

42
 Pillars
Autonomous Maintenance

The Autonomous Maintenance is to make operators autonomous

In other words
 To make operators take ownership of their machines
 to teach people to think and work in a new way.

43
7 Step of Autonomous Maintenance
Step 7. Autonomous
management

Step 6. Standardization

Step 5. Autonomous inspection

Step 4. General inspection

Step 3. Lubrification standards and improvements

Step 2. Eliminate dirt sources,

areas of difficult access and inspection

Step 1. Initial Cleaning and Inpection

44
 The programme for the development of Autonomous
Management
Management
We take care
of our process
I support you

Autonomous
3 Autonomous Kaizen 7 management
Can manage equipment 6 Standardisation

2 Competence and
effectiveness
Knows the function and structure of
5 Autonomous inspection
equipment and equipment-product
quality relationship 4 General inspection

1 Change of attitude
Can detect problems and
3 Cleaning and lubrication standards

understand the principles 2 Countermeasures at the source of the problem

and the procedures of
equipment improvement 1 Initial cleaning

...develops simultaneously on operators and machines

45
AMMP Team-Mar. 2004
 Pillars
Planned Maintenance

The main aim of Planned Maintenance is ensure reliability of

machines. This means:
 Improving availability
 Reliability ( MTBF )
 Ability to Maintain ( MDT )

 Reducing maintenance costs

 Corrective Maintenance
 Preventive Maintenance
 Spare Parts Management

46
 Why to eliminate breakdowns?

Q C D
Cause defects 1) Require 1)Cause delayed
maintenance deliveries
Breakdowns labour
2)Produce 2) Prevent
scraps production
3) Reduce planning from
O.E.E. being followed
4) Reduce
labour
productivity

47
 Pillars
Quality Maintenance

QUALITY MAINTENANCE HAS TO GUARANTEE ZERO DEFECT

• Then must detect and eradicate quality losses.

• Switch the mindset from product quality control to process
control

48
Quality Maintenance Overview
How to ensure zero defects for the customer through process
control?
Quality basic concepts

Introduction Quality basic indicators

Quality deployments

Defects & waste reduction

Loss reduction routes
Over usage reduction
Teams improvements
Scrap reduction

Quality Maintenance
Systematic improvement
activities
Conditions Management

PM analysis
QA Matrix
Advanced tools
QX Matrix
49
QM Matrix
 Pillars
Supply chain

To improve customer satisfaction, focusing on

service and flexibility at min cost

• Customer service = On time, In full, Lead time (response

time), Perfect Order
• Logistic cost = Inventory, acquisition and delivery cost.
• Flexibility: service / cost

50
 Pillars
Cost

To drive plant strategies by cost prioritisation

• Developing and implementing cost monitoring tools

• Supporting the factories on strategic decisions

• Supporting all the other Pillars on teams/projects

prioritisation

51
 Pillars
Early Management

To continuously improve machine and product design

• To ensure a rapid and stable start-up of new machines and products

• To improve current machines

52
 VERTICAL START-UP
Before Vertical start-up

Overall Equipment Efficiency %

Start-up
Overall Equipment Efficiency %

Start-up Period
Much Shorter
Goal Line

Design Review
Period
OEE trend
Slightly Longer more vertical
than normal
trend before
EEM

Problems
Problems

Problems addressed
early and number of
problems reduced
Commissioning
Manufacturing

Commissioning
Manufacturing
Installation

Initial Production

Installation
Design

Design

53
 The Trend
Issues S$
Worse time for
EEM Possibility of
modifications
performance
improvement
(left hand scale)

Cost of
modifications
(right hand scale)

Ideal time for Normal

modifications

Concept Design Manufacturing Production

Time

54
Pillars
Education & Training

To improve the effectiveness of human

resources by developing

 knowledge
 skills
 attitude

55
 Pillars
Education & Training

1 PROCESS REQUIREMENTS (SKILLS) ASSESSMENT

2 CURRENT KNOWLEGDE LEVEL ASSESSMENT

3 SKILL GAP IDENTIFICATION

4 TRAINING PRIORIZATION (MASTER PLAN)
5 TRAINING CONTENTS DEFINITION
6 TRAINING SESSIONS
7 RESULTS EFFECTIVENESS ASSESSMENT

56
 Pillars
Safety Health & Environment (SHE)

• Two main areas of activity:

s
or
1

ct

Hu
(1,666)
Serious

fa

m
accidents

an
ta
- Workplace safety: 29

en

fa
(48,334)

c
Reportable accidents

to
n

Reduce the accident risk to a minimum

ro

rs
300

vi
(Approximately 500,000 incidents)

Create a safe and healthy workplace

En
Minor accidents

- Environment: Emissions

Safeguard human life, environment and natural
resources
Inputs: Outputs:
-Materials Products
-Energy
Waste
Wastewater

57
 Office Pillar

Improve efficiency in information processing

• to ensure administration processes are value adding
• to eliminate unnecessary office activity

58
 WORLD CLASS MANUFACTURING IS A NEVER
ENDING JOURNEY...

Improve people
Improvement of • Change the way people think about equipment
management and quality management
human resources
• Continuous training and education to increase
skill level
• Overall Equipment Effectiveness (OEE)
Improvement of • Autonomous maintenance
equipment • Early equipment management

• Setting the conditions not to produce defects

Improvement of
• Right first time
quality • Quality maintenance

Change the
culture • Improve the overall efficiency

Meet customer needs

59
WCM: just common sense?

60
WCM: JUST COMMON SENSE?
Losses

Restoration area
Sporadic losses
in order to return
to
previous condition
“Quick-fix zone”

Innovation area
chronic losses become
evident when compared
Chronic losses to optimal conditions
“Shift in culture”

Time
Objective
Optimal conditions
Zero defects
61
WCM BASIC PRINCIPLES
WHAT’S THE WCM GAME ABOUT ?

ZERO

Continuous improvement through eradication of losses

Zero Losses mindset : just-in-time - Zero Stock , total quality - Zero Defects, no
touch

100%

Motivating environment where everybody is engaged

Increase People Skills

Self-fulfillment

62
WCM ATTACKS ALL LOSSES

Zero Breakdown
Value Losses
Zero Defects
Cost Losses
Zero Scrap
Time Losses
Zero Stock
……. Losses

63
WORLD CLASS MANUFACTURING IS AN ORGANISED
SYSTEM OF CONTINUOUS IMPROVEMENT OF ALL
PARAMETERS

Standardized Balanced top-down / Visualization

approach and bottom-up approach
methods
Pillars,
routes,
methods
KPI driven

Extended Inter-functional Systematic skills

participation working groups improvement

64
WCM MUST BE A REAL CHANGE PROCESS
CAPABLE TO MAINTAIN ITSELF …

Vision/objective Competence Motivation Resources Action plan

Vision/objective Competence Motivation Resources Action plan

Vision/objective Competence Motivation Resources Action plan

Vision/objective Competence Motivation Resources Action plan

Vision/objective Competence Motivation Resources Action plan

Vision/objective Competence Motivation Resources Action plan

65
DIFFERENT PHASES
IMPLEMENTATION AND JIPM AWARDS

Developing Factories TPM Level 1 TPM Level 2 TPM Level 3

Pilot Phase Expansion Phase Consolidation Phase Advanced Phase

 Initial learning  Pillars launching

Pilot teams ̶ Focused Improvement
̶ Defects reduction ̶ Autonomous Maintenance
̶ Set up reduction ̶ Quality Maintenance
̶ Breakdowns reduction ̶ Planned Maintenance
̶ Short stop reduction ̶ Education & Training
̶ Claims reduction ̶ Safety & Health
̶ Speed loss reduction ̶ Environment
̶ Waste reduction ̶ Supply Chain
̶ Early Management
̶ Cost TPM TPM TPM TPM TPM
Excellence Consistency Special Advanced World
̶ Office Special Class

66
WCM PACKAGING MATERIAL SUPPLY CHAIN
SUPPORT TO CLUSTERS AND FACTORIES

11 Awarded Factories in 2007 ( 8th year of implemmentation )

45% of our Factories(16) are Awarded in different Levels

2 Excellence Awards in Europe ( Berlin and Limburg )

First TPM Level 3 Award in Brazil

No. of JIPM Awards 2007 Awards (11) 2008 Applications (7)

Berlin Excellence Rubiera Excellence
Denton Special Wrexham Excellence
Jeddah Excellence
Foshan Consistency Pune Consistency
11 Kunshan Consistency
Izmir Consistency
Kiev Excellence
Jurong Special G.Milanovac Consistency
7 La Rioja Special
Lahore Excellence

4 4 Limburg Excellence
2009 Green Lights
3
1
Monte Mor AdvSpecial (14)
Ponta GrossaAdvSpecial
2001 2002 2003 2004 2005 2006 2007
Queretaro Consistency

67
 LONG TERM TRENDS
WCM PAYS THE EFFORT
10.1% 9.000
PM Waste PM Claims

- 33% - 50%
8.0% 6.800

4.600
6.8%
3.100

5.7%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

68
 LONG TERM TRENDS
WCM PAYS THE EFFORT

Volume 9.6
10.0

9.1
135 bio

Positions
7172

6739 85 bio

1999 2000 2001 2002 2003 2004 2005 2006 2007

1953 1999 2007 2008 2009 2010

69
 WCM – success factors
Before starting, it is fundamental to…:
• … want it
• … strongly want it
• … definitely want it
• … accept that “You don’t know what you don’t know”
• … understand that it will require a deep culture change all over the
Company
• … be convinced that this is “the” way to improve
• … have the will to participate actively from the beginning
• … see it as your priority
• … know that you are the owner of the project

70
Some Hints….
• Measure, measure, measure, ….
• Follow methodology, do not shortcut
• Do not jump to conclusions, even if they seem evident:
most often they aren’t
• Management commitment is a key success factor
• Assessment and audits are a tool for improvement
• Do not rush, don’t go ahead if the actual step is not well
completed and understood
• Technical modifications are not always the right solution

71
 Some More Hints….
• Please respect and follow the standards YOU define...
• Copying is not a shame: it helps to save time and hard
work
• Trust your colleague professionalism and competence
• Avoid bureaucracy: pillars should support and promote
• Don’t focus on results, but work to control and improve
the process: results will follow automatically
• Customers are the real good reason for everything we
do: always remember that they are the ultimate
objective of your work

72
WORLD CLASS MANUFACTURING
 It is not easy
 It is painful

 Is a one-way journey

 Believe!

 Make the effort to Learn!

73
WORLD CLASS MANUFACTURING
 It works!
 It changes the
way
you do business!
 It makes the
difference!

74
Thank you

75