WCM

WCM – World Class Manufacturing
WCM overview
© FCA Italy – all rights reserved

History of the model
1950 1980 1986 1991 1992 2005 2006 2007 2008-17

2 pilot plants All FGA Chrysler is
achieve first Plants joining
Build up trust results: involved; WCM
and Tychy (Po); FPT Plants; (2009)
First WCM commitment Melfi (It) M. Marelli;
Awareness of Kaizen Teksid and
experience in CNH;
TPS 40% of diffusion COMAU
the US : IVECO
model productivity start up in WCM start WCM
KAIZEN General Model design involved
design gap between western extension activities
translated Electric; Japan and countries in FIAT WCM
in English Kawasaky Europe / (start program
N.A... America within ’06) with
Suppliers
KAIZEN (2010)
starts in
First Gold
Toyota
award
(2012)
TPS Transposition Book Book Book The FIAT

turnaround WCM in FCA and CNHi
Toyota Translation of “World Class “The Machine “Lean thinking” Fiat overcomes FAPS WCM developed in
Production Toyota model Manufacturing: The that changed (Womack/ the crisis, starts Fiat, Chrysler and
System (TPS) in English by Lessons of the world” Jones) Identification of in FGA Suppliers
development Shigeo Shingo Simplicity Applied” (Womack/Jones) WCM model to
by Taiichi (Schonberger) implement FAPS
Ohno
© FCA Italy – all rights reserved WCM overview 2

WCM framework
WCM
World Class Manufacturing
TQM
TIE TQC TPM JIT
Total Industrial Total Quality Total Productive

Method Engineering Control Maintenance
Just in Time
Cost Deployment
Productivity Improvement Technical Level of

Focus of Quality efficiency service
zero zero zero zero

Objectives waste defects breakdowns stocks
Values Involvement of people, creation of value, customer satisfaction

WCM framework
KPI:
Safety, Quality, Cost, Delivery

WCM focus
All Employees
total people involvement, from Top Management up to Line Operators
Waste and Loss

continuous attack to all losses and wastes, as activities producing costs but no value for Customers
Standards and Methods

rigorous application of continuous improvement methods and tools while attacking loss and waste

WCM 10 basic principles
SAFETY FIRST NO STD = NO IMPROVEMENT
V.O.C. IN THE PLANT TARGET = ZERO
WCM IS DEVELOPED IN THE FLOOR

WCM IS VISUAL
RIGOROUS APPLICATION
BEST PRACTICES
INVOLVEMENT IS WCM PROPELLER

ENERGY IN CRISIS

WCM: 20 pillars and 7 steps
Reactive Preventive
Proactive

WCM Technical Pillars
Technical Pillars represent the components of the Manufacturing System as follows:
1 safety ( SAF ) 6 quality control ( QC )
logistics & customer

2 cost deployment ( CD ) 7
service ( LOG )
early equipment /
3 focused improvement ( FI ) 8 product management
( EEM – EPM )
4a workplace organization (WO)

9 people development ( PD )
4b autonomous maintenance (AM)
professional maintenance
5 10 environment ( ENV )
( PM )

WCM Management Criteria
The 10 Managerial Pillars represent management tools available to Plant Management

(from Plant Manager to all Line Leaders) to make effective WCM program development,
following a path driven by plant targets and continuously monitored.
competence of the
1 management commitment 6 organization towards
improvement
2 clarity of objectives 7 time & budget
3 route map to WCM 8 level of detail
allocation of highly
4 qualified people to model 9 level of expansion
areas
commitment of the
5 10 motivation of operators
organization

Premise: Management supports the change process
Availability of technology and knowledge in applying methods and tools are not
automatically ensuring the transformation of technical resources and know-how
in results achievement.
Without the existence of a strong management commitment in New WPS,

joined to a robust governance system and total involvement of the
organization, the program pace will, sooner or later, drop. Thus, targets
concerning program implementation, growth rate, KPIs improvement and
savings production will be failed.
Enablers for Success …
Achieving World Class requires:

- Leadership
- Roadmap
- Knowledge
Knowledge
Roadmap
Loss-focus
Leadership Auditing confirms:

Organization Department
• leadership
• clarity of focus
Individual
• use of tools and rigor

Who is “Management” ?
When talking about “Management”

inside Managerial Pillars, we don’t
refer just to Plant Management Team
(Plant Manager and first organization
level), but to a quite wider group of
people.
Into “Management” concept we include all people (from Plant

Manager to WCM Pillar Leaders up to Line Leaders) having decision
making and people leading responsibilities.
In this way, can be considered as “WCM actors” all people whose

decisions (of major or minor impact according to organization level)
affect technological processes and/or people behaviors.

WCM Management Criteria
1 management commitment
2 clarity of objectives
3 route map to WCM
4 allocation of people
Top Mngmt. &
WCM Team commitment of
5
organisation
Middle
Management & 6
competence of
organisation
Line Leaders
7 time & budget
Line Operators
8 level of detail
9 level of expansion
10 motivation of operators

WCM 7 steps approach in Problem Solving
Problems are addressed at three levels:
Reactive Once a problem has emerged, it is attacked and solved PROCESS IS

with corrective measures NOT CHANGED
Preventive Analyzing the problem and detecting its root causes,

specific countermeasures are taken to avoid future
reoccurrence of the same problem (learn from history) PROCESS IS
STRENGTHEN
Proactive Analyzing potential risks, proper countermeasures are
taken at Design phase to prevent the occurrence of a
specific problem
Reactive Preventive Proactive
Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7

WCM pillars implementation
The path towards excellence is characterized by

an increasing level of complexity: experience is 3
gradually accumulated in the Model Area and PLANT
successful cases are implemented, then more
difficult problems are addressed and involvement
of the plant is extended.
2
MORE MODEL AREAS
1 The aim is to
MODEL AREA extend WCM
to the entire
system and to
all processes
Gradual path

WCM improvement process
 FROM THE TOP (E-matrix)

Planned
 MANAGEMENT
improvement
 PROJECTS
COSTS
QUALITY
SAFETY
EFFICIENCY
LOSS & WASTE
…….
 FROM THE FLOOR

“day-by-day”  FLOOR PEOPLE
improvement
 SUGGESTIONS / QUICK KAIZEN

WCM tools and standards

WCM implementation and support Teams
Pillar Team and Floor Teams have

PILLAR TEAMS
different members and different tasks
Plan, train, sustain, monitor
FLOOR TEAMS
Learn, do and show

Pillar Team vision and main tasks
VISION:
Design, guide, support and monitor Pillar implementation in the floor
TASKS:
• define pillar road map with management (pillar KPI and target score)
• assess current status, detect gaps, prepare and monitor action plan
• select model areas and design expansion plan
• prepare and implement (with PD) training plan for pillar members and floor
teams
• support floor teams in carrying on model area activities
• audit floor teams activities about proper utilization of methodologies /
tools and results achievement

Floor Teams vision and main tasks
VISION:
Develop pillar in the floor, learning by doing
Create best practices and disseminate knowledge via internal benchmarking
TASKS:
• participate in floor training on basic pillar knowledge and operating tools
• implement pillar in the area, following the 7 steps
• perform improvement actions according to Kaizen (FI) methodology
• record and monitor followed path and achieved results managing activity
board
• be the place where to show “how to do” to new floor teams

WCM implementation follows two directions
Depth
Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7
Re-engineering Logistica Int. Logistica Est. Livellamento Affinamento standardizz. Flusso Controllato
Level 1 1
Livello
Livello22
Level
virtuous path
Livello 4 Level 4
Level
Livello33
Level 5 5
Livello

WCM is a deep change process
WCM produces deep changes in processes (physical,

organization and people mindset).
Looking at the two videos, you will see an engine
assembly area before WCM and after one year from
the program kickoff.
Change is visually perceivable as regards
- order and cleanness of workplaces
- location, organization and quantity of direct
materials on line side
- availability of wider spaces for Operators and
materials handling
Before WCM
- sense of safety in operations
- physical flows order
- creation of available spaces for future new
After WCM
assembly stations and/or for technical training
areas (MTS – Manufacturing Training System)

World Class Manufacturing Association
WCM model is recognized as the common production system of a group of Companies

being part of WCM Association, with the target of improving manufacturing
performance by sharing excellence know-how and practices in manufacturing.
How long has the WCM Association existed ?

The World Class Manufacturing Association was founded in 2006
What was the goal behind the founding of WCM? What did they want to achieve ?
The World Class Manufacturing Association is a not-for-profit organization established with
the aim of enhancing the performances of the Members’ plants, developing and
implementing best in class manufacturing technologies, and increasing the
competitiveness of the productive system adopted by the Members for the benefit of the
Members and of their final customers.
Who founded the WCM Association ?

The World Class Manufacturing Association was founded by Arcelor, Fiat and Saint Gobain
under the guidance and leadership of the Honorary President Prof. H. Yamashina, who has
been leading all these companies on the implementation of World Class Manufacturing.

World Class Manufacturing Association
An international and non-for-profit organization of Companies

involved in World Class Manufacturing
- Benchmarking and best
practices sharing
- International recognition of
awarded plants
- Training opportunities for
Company auditors

WCM audit system
It is the system in place to evaluate, guide and support the implementation of

the FIAT Advanced Production System towards World Class Manufacturing
standards (WCM).
Management Criteria
Technical Criteria
(Methodologies)
Tools
Plant
Production
System
WCM implementation
KPI’s $

WCM audit system
The availability of a common system to assess quality in WCM program implementation

satisfies two basic targets:
Allows to identify and highlight best

performing plants, to be taken as reference
to speed up common growth pace.
Creates a «positive competition» among

plants, that pushes improvement by the
motivation to be the best.

WCM audit system
Made from plant management

Self
to monitor the progress of the
Evaluation activities of the Pillars
Internal
Audit Held by Auditors, for the official
certification of the levels achieved
3 1
2 0
External
Audit
3 1
2 0

WCM audit evaluation levels
• For each one of the 20 criteria the evaluation is ranked in 5 Levels (from 0 to 5)
• For each implementation level achieved, a score is assigned in points:

Level 1 = 1 point
Level 2 = 2 point
Level 3 = 3 point
Level 4 = 4 point
Level 5 = 5 point
• The overall assessment of the plant is summarized in an indicator called

Methodology Implementation Index (MII)
• A result of 85 points or more represents a World Class standard

Audit criteria logic
1 safety 6 quality control
2 cost deployment 7
logistics & customer
service
Criteria to Evaluate Achievement Level – Focused Improvement
3 focused improvement 8 (3) Focused improvement Evaluation Levels

early equipment/
product management
4 autonomous activities 9
0.[No action ] There are no projects or programmes based on Cost
people development
Deployment. All the projects are chosen ad hoc, and no systematic approach
5 professional maintenance 10 environment or a proper method is used.
1. [Reactive] Site costs and losses are understood and prioritized. There is a
example system to choose subjects for Focused Improvement but no proper cost and
benefit analysis is made. There is no system to horizontally expand the
knowledge gained after each Focused Improvement.
2. [Basic techniques ] Based on Cost Deployment, proper subjects for
Focused Improvement have been selected. Based on the needs of the
Focused Improvement, a proper cross-functional team is formed. Knowledge
to reduce or eliminate waste and losses is created step by step, by using
proper methods and 7 WCM tools (prioritization, systematic, logical and
detailed deployment of objectives, problem description with sketches, 5W +
1H with 5G principles, root causes analysis, phenomena description with
sketches and TWTTP). Sketches are used extensively to visualize.
Cost/benefits are known for each completed FI project (QK, SK, MK) and are
tracked monthly involving the financial service department. Documented
lessons/knowledge is used for training.

Audit criteria logic
1 safety 6 quality control
2 cost deployment 7
logistics & customer Criteria to Evaluate Achievement Level – Focused Improvement
service
3 focused improvement 8
early equipment/
product management
3. [Substantial KH, many FI project covering the major areas]
There is substantial knowledge to eliminate or reduce waste and
losses. Both basic and intermediate FI techniques are used
4 autonomous activities 9 people development
5 professional maintenance 10 environment extensively and routinely at all levels of the organization.
4. [Advanced level, many FI projects with major Kaizen and PPA]
example
World Class Level
The various tools of intermediate and advanced levels such as PPA

and DOE are utilized to attack and solve difficult problems which
have been left unattended. The lessons learned are horizontally
expanded to others. From inductive to deductive approaches.
5. [Involvement of everybody in FI with many, many kaizen]
There is a system to continuously increase the in-house knowledge
to reduce or eliminate all possible (and probably hidden ) waste
and losses. Advanced techniques are used, more knowledge is
created. Additional losses are attacked. The knowledge is
horizontally expanded.

plant
stabilimento
© FCA Italy – all rights reserved

mar-06
0
S1 Safety/Sicurezza
3
C2 Cost Deployment
0
F
3 Focused Improvement
2
W
4 Autonomous Activities (AM / WO)
1
A
5 Professional Maintenance (PM)

P
6 Quality Control
E
7 Customer Service / Logistics
0
P Early Product / Equipment

8 Management
S
WCM overview
9 People development
E
WCM score level
10 Environment/Ambiente
P11 Management Commitment

BRONZE SILVER
2
12 Clarity of Objectives and KPIs

M
C13 Route map to WCM

2
GOLD
s Allocation of Highly Qualified People

14 to Model Areas
A
M
15 Commitment of the Organization
Competence of Organisation Toward
C16 Improvement
C
1
17 Time and Budget

WORLD CLASS
32
T18 Level of Expansion
L19 Level of Detail
20 Motivation of Operators
M
11
MII
WCM score level
BRONZE SILVER GOLD WORLD CLASS
Learning
Learning &
& World
World Class
Class in
in
Implementation
Implementation Wide
Wide extension
extension && KPIs:
KPIs: S,
S, Q,
Q, C
C and
and DD
< 50 dissemination of
dissemination of via
via external
external
best
best practices
practices benchmarking
benchmarking
WCM
WCM methods
methods 60 - 69 85 - 100
and
and results in
results in Full
Full implementation
implementation
model areas
model areas of
of WCM in
WCM in the
the plant
plant
50 - 59 70 - 84

Requirements for awarding
85
points
70
points Safety: level =5
AA: level =5
PM: level >4
60 QC level >4
points L & CS level >4
Safety: level > 4 PD level =5
AA: level > 4
50 PM: level > 3
E level =5
points QC level > 3
Safety: level > 3 L & CS level > 3
AA: level > 3 PD level > 4
PM: level > 2 E level > 4
QC level > 2
Safety: level > 2
L & CS level > 2
AA: level > 2
PD level > 3
PM: level > 1
E level > 3
QC level > 1
L & CS level > 1
PD level > 2
E level > 2

The gate logic
When a plant is requesting an audit leading to an Award (Bronze, Silver, Gold, World Class),
it is requested the fulfillment of specific KPIs, in order to demonstrate that the proper
application of WCM methods and tools is not only strengthening the processes but even
more the results.
Without the fulfillment of this target, the audit for award is not possible, as the plant is not
showing the link between improved processes and overall performance.
KPIs are several and related to the basic factors of the manufacturing system, as follows
- Depth and extension of WCM activities (covered areas and implemented pillars steps)
- Safety
- Reduction YOY of transformation cost
- Quality
- HR management (suggestions, absenteeism rate)

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WCM – World Class Manufacturing

© FCA Italy – all rights reserved

1950 1980 1986 1991 1992 2005 2006 2007 2008-17

TPS Transposition Book Book Book The FIAT

© FCA Italy – all rights reserved WCM overview 2

TIE TQC TPM JIT

Total Industrial Total Quality Total Productive

Productivity Improvement Technical Level of

zero zero zero zero

Values Involvement of people, creation of value, customer satisfaction

© FCA Italy – all rights reserved WCM overview 3

© FCA Italy – all rights reserved WCM overview 4

Waste and Loss

Standards and Methods

© FCA Italy – all rights reserved WCM overview 5

SAFETY FIRST NO STD = NO IMPROVEMENT

V.O.C. IN THE PLANT TARGET = ZERO

WCM IS DEVELOPED IN THE FLOOR

INVOLVEMENT IS WCM PROPELLER

© FCA Italy – all rights reserved WCM overview 6

© FCA Italy – all rights reserved WCM overview 7

Technical Pillars represent the components of the Manufacturing System as follows:

1 safety ( SAF ) 6 quality control ( QC )

logistics & customer

4a workplace organization (WO)

© FCA Italy – all rights reserved WCM overview 8

The 10 Managerial Pillars represent management tools available to Plant Management

2 clarity of objectives 7 time & budget

3 route map to WCM 8 level of detail

© FCA Italy – all rights reserved WCM overview 9

Without the existence of a strong management commitment in New WPS,

Achieving World Class requires:

Leadership Auditing confirms:

© FCA Italy – all rights reserved WCM overview 11

When talking about “Management”

Into “Management” concept we include all people (from Plant

In this way, can be considered as “WCM actors” all people whose

© FCA Italy – all rights reserved WCM overview 12

3 route map to WCM

© FCA Italy – all rights reserved WCM overview 13

Problems are addressed at three levels:

Reactive Once a problem has emerged, it is attacked and solved PROCESS IS

Preventive Analyzing the problem and detecting its root causes,

Reactive Preventive Proactive

Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7

© FCA Italy – all rights reserved WCM overview 14

The path towards excellence is characterized by

© FCA Italy – all rights reserved WCM overview 15

 FROM THE TOP (E-matrix)

 FROM THE FLOOR

© FCA Italy – all rights reserved WCM overview 16

© FCA Italy – all rights reserved WCM overview 17

Pillar Team and Floor Teams have

Plan, train, sustain, monitor

Learn, do and show

© FCA Italy – all rights reserved WCM overview 18

© FCA Italy – all rights reserved WCM overview 19

© FCA Italy – all rights reserved WCM overview 20

© FCA Italy – all rights reserved WCM overview 21

WCM produces deep changes in processes (physical,

© FCA Italy – all rights reserved WCM overview 22

WCM model is recognized as the common production system of a group of Companies

How long has the WCM Association existed ?

Who founded the WCM Association ?