World Class Manufacturing

WorldClass Manufacturing
ScottGarberding
ChryslerGroupLLC201014BusinessPlan November4,2009
WorldClassManufacturing(WCM)headlines
FromTurintheyremarkthattheessentialelementinordertohave everythingworkingwellisthehumancomponent,sincewithoutfull involvementoftheworkersnothingcouldbemade.

Intheinternalranking,theMarchionne Code,whichisinthecompanylanguagedescribedasFiatGroup AutomobilesProductionSystem(FAPS),findsitsbestapplicationinTychyPlantinPoland,andinMelfi Plant inItaly.NowtheattemptistoelevatetoacceptablestandardalsoPomigliano Plant
6,December2007
ChryslerGroupLLC201014BusinessPlan
November 4,2009
JourneytoWCM
FiatGroup p
2004
WCM C Launch au c
FiatGroupfocus Holisticapproach WorldClassManufacturing 20Pillars
2005
2006
2008
2009
2010
Onecommon manufacturing operating p gsystem y
ChryslerGroupLLC
2004 2005 2006 2008 2009 WCMLaunch 2010
ChryslerFocus
Safety Quality Q lit HarborReport
November 4,2009
WCMstructure&objectives
Safety
Cost deployment
Workplace organization
Quality
Maintenance
Logistic
Method &std. Focus
Totalindustrial engineering
Totalquality q y control
Totalp productive maintenance
Justintime
Productivity
Quality improvement
Technical efficiency
Service level
Target Values
zero waste
zero defects
zero breakdowns
zero inventory
Peopleinvolvement,valuecreation,customersatisfaction
ChryslerGroupLLC201014BusinessPlan November 4,2009 4
WhyimplementWCM?
IntroductionofWCM
Fatality
Severe Injury Lost Time Injury Recordable Injury / Illness
First Aid Cases
Lostw workdayinc cidentrate
Near Misses
17% 15% 7%
Unsafe Conditions Unsafe Acts
Teachingustoseenew opportunities
35%improvement
2005
2006
2007
2008
(NAFTAmanufacturing)
2009Eytd 2010E
November 4,2009
WhyimplementWCM?
IntroductionofWCM
26 25
24
Harbour HoursPe erVehicle
Rigorousmethodology f improvements for i t

5.7% 1.3% 9%
23
22
21
20
19
2004
2005
2006
2007
2008
2009ytd E
2010E
2011 E
(Assembly)
Newleadershipmodel
PreviousStructure
PlantManager
CurrentStructure
PlantManager
TeamLeader TeamMember
TeamLeader
TeamMember
Fullyengaged workforce
Direct Communication Ownershipat OperatorLevel QuickDecision Making
November 4,2009
WCMinaction
Workingtogether
Execution
Results
November 4,2009
WCMinaction
Before
After
Flexionangleofthewaist
Level1
More than30
Flexionangleofthewaist
Level1
More than30 30
Level2
15 30
Level3
0 15
Level2
15 30
Level3
0 15
52%eliminationofergonomicrisks
WCMinaction
Before
After
Inventoryreduced Materialdeliveredtopointofuse 57%reductioninoperatorwalktime
November 4,2009
10
WCMinaction
Before
After
Equipment co d o s conditions hidden Eq quip
Maintained o easy for inspection Equip
Equipmentrestoredtooriginalstate
WCMinaction
Before
After
Improvedworkconditions
November 4,2009
12
TransformingJefferson
Preparefor People
360degree transformation
Place
Passion Process Product
November 4,2009
13
WCMimplementation
ChryslerGroupLLC
Chapter 11begins Chapter 11ends 1st Plant reopens
Bronze
Bankruptcy 4thQtr09 Cost opportunities identified 2010 2011 Management/ Union leadership WorldClass trainingand commitment Manufacturingteams andtraining 30Plants
Silver
2012 2013
Gold
2014
1st audits
3rdpartyaudits
Everyplant Everyyear Increasingdepthandrigor

Methods&results Wideexpansion
Learning&implementation
November 4,2009
14
Expectedresultsfor2010
Injuries 30%
Operatingcost 8%
2009E
2010E
2009E
2010E
Manufacturingfirsttimequality +15%
Productivity +10%
2009E
2010E
2009E
2010E
Employeeinvolvement +100%
2009E 2010E
2009E
Projects +80%
2010E
November 4,2009
15
OneTeam,OneGoal,OneVision WorldClassManufacturing
November 4,2009
16

World Class Manufacturing

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WorldClass Manufacturing

FromTurintheyremarkthattheessentialelementinordertohave everythingworkingwellisthehumancomponent,sincewithoutfull involvementoftheworkersnothingcouldbemade.

FiatGroupfocus Holisticapproach WorldClassManufacturing 20Pillars

Onecommon manufacturing operating p gsystem y

Safety Quality Q lit HarborReport

Method &std. Focus

Totalp productive maintenance

Severe Injury Lost Time Injury Recordable Injury / Illness

First Aid Cases

Lostw workdayinc cidentrate

Unsafe Conditions Unsafe Acts

Harbour HoursPe erVehicle

Rigorousmethodology f improvements for i t

Direct Communication Ownershipat OperatorLevel QuickDecision Making

Inventoryreduced Materialdeliveredtopointofuse 57%reductioninoperatorwalktime

Equipment co d o s conditions hidden Eq quip

Maintained o easy for inspection Equip

Passion Process Product

Everyplant Everyyear Increasingdepthandrigor

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