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

2004 2005 2006 2008 2009 2010

WCM Launch
C au c
One common 
manufacturing 
operating system
p g y
Chrysler Group LLC

2004 2005 2006 2008 2009 2010

Chrysler Focus
WCM Launch
• Safety
• Quality
Q lit
• Harbor Report
Chrysler Group LLC 2010‐14 Business Plan November 4, 2009 3
WCM structure & objectives

Safety
deployment

Workplace
Cost 

organization Quality Maintenance Logistic

Method Total industrial  Total quality 

q y Total productive 
p Just in time
Just‐in‐time
& std. engineering control maintenance

Quality Technical Service

Focus Productivity improvement efficiency level

Target zero  zero  zero  zero 

waste defects breakdowns inventory

Values 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

Near Misses
work day inccident rate

17% Unsafe Conditions

Unsafe Acts

15%

7% Teaching us to see new 
opportunities
Lost w

35% improvement

2005 2006 2007 2008 2009E ytd 2010E

(NAFTA manufacturing)

Chrysler Group LLC 2010‐14 Business Plan November 4, 2009 5

 Why implement WCM?

Introduction of WCM
26

25
Rigorous methodology 
f i
for improvements
t
Harbour Hours Peer Vehicle

24

23 5.7%

1.3%
22

9%
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 Leader

Team Member Team Member

Direct 
Communication
Fully engaged 
Quick Decision 
workforce Ownership at  Making
Operator Level

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 Flexion angle of the waist
Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
More  15° ‐ 30° 0° ‐ 15° More  15° ‐ 30° 0° ‐ 15°
than 30° than 30
than 30°

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  Maintained 

Equip
quip

co d o s
conditions  o easy
for easy 
Eq

hidden inspection

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 12

Transforming Jefferson

Prepare for
Prepare for 
People
360 degree 
Place
transformation

Passion
Process

Product

Chrysler Group LLC 2010‐14 Business Plan November 4, 2009 13

 WCM implementation

Chrysler Group LLC

Chrysler Group LLC

Chapter 
Chapter 
1st Plant  
re‐opens Gold
11 begins
11 begins
11 “ends”
Silver
Bronze
Bankruptcy 4th Qtr ‘09 2010 2011 2012 2013 2014

Cost 
Management /  opportunities 
Union  identified  1st audits 
audits
3rd party audits 
leadership 
training and  World Class  • Every plant – Every year
commitment Manufacturing teams 
and training          
30 Plants
30 Plants
• Increasing depth and rigor
Learning & implementation

Methods & results

Wide expansion

Chrysler Group LLC 2010‐14 Business Plan November 4, 2009 14

Expected results for 2010

Injuries Operating cost

‐30%
‐8%

2009E 2010E 2009E 2010E

Manufacturing first‐time quality Productivity
+15% +10%

2009E 2010E 2009E 2010E

Employee involvement Projects
+100% +80%

2009E 2010E 2009E 2010E

Chrysler Group LLC 2010‐14 Business Plan November 4, 2009 15

One Team, One Goal, One Vision
World Class Manufacturing
World Class Manufacturing

Chrysler Group LLC 2010‐14 Business Plan November 4, 2009 16