Leancafe09 Slides

World Class Manufacturing
Our Company: CNHi structure
CNHindustrial IVECO Group
AGRICULTURAL CONSTRUCTION COMMERCIAL

POWERTRAIN
EQUIPMENT EQUIPMENT VEHICLES
62.828
Employees
24.87 $Bln
Revenues
8.463
Active patents owned
LEAN CAFÉ _ 2021 September 23rd 1

Our drivers in CNHi
64
Headquarter
Plants World Class Manufacturing Turin
Cost
Quality
Service Level
• WHY WCM?
AGENDA • WORLD CLASS MANUFACTURING

• WHAT IS WCM
• PILLARS
• STRUCTURE
• AUDIT
• NEXT STEP
3
Why WCM
«Toyota is a wonder, they are the best and will

continue to be so. They are the model to follow,
we have to find the way to cover the gap between
us and them as soon as possible»
Sergio Marchionne
(9 November 2004)

Why WCM

Why WCM
ORGANIZATION
IMPROVEMENT
CHANGE MANAGEMENT
Creation of the System that supports
Continuous Improvement

• WHY WCM?

• WHAT IS WCM
• PILLARS
• STRUCTURE
• AUDIT
• NEXT STEP
7
What is WCM
The World Class Manufacturing is a LEVEL OF EXCELLENCE of total logistic/productive cycle.

The concepts of CONTINUOUS IMPROVEMENT and TOTAL INVOLVEMENT OF COMPANY are
the foundation.
IT DETECTS WASTE AND

LOSSES
IT INVOLVES ALL EMPLOYEES
IT INTRODUCES NEW TOOLS

AND NEW METHODS

World Class Manufacturing What are the main challenges to keep running system organized
(different plants, locations, people, culture,...)?
WCM main goals and principles
Safety &
Environment Work
Place Quality Maintenance Logistics
Waste & Loss
Organization
Analysis
Method Total Total Total

Just in Time
& Industrial Quality Productivity
Production
STD Engineering Control Maintenanc
*JIT*
*TIE* *TQC* e*TPM*
Quality Technical Service

Productivity Improvement Productivity Level
Focus
• WCM AUDIT
• BEST PRACTICE
SYSTEM
Target 0 0 0 0
Waste Error Breakdown Inventory
Values Involvement, Value Creation, Customer Satisfaction
0 Accident
CHANGE MANAGEMENT
DEPTH EXPANSION
Seven steps example
WORK PLACE ORGANIZATION

Seven steps example
Sort Set In Order Shine Standardize Sustain
Engine line Engine line

Seven steps example
BEFORE WCM
ALL ASSEMBLY
ACTIVITIES WERE
VALUABLE

Seven steps example
Not Value Added Operations
• MURI
• MURA
• MUDA
Value
Added
Operations
Semi-Value Added Operations
14
Seven steps example
The operator has to

select the proper
components based
on the vehicle model
in the line
MOTORE MOTORE MOTORE
3 2 1
GOLDEN
ZONE
4
The operator takes 3
2
the component
already selected
based on
sequence of the
vehicle in the line
MOTORE MOTORE MOTORE
3 2 1

Outputs Examples
Before After

Outputs Examples
Before After

PILLARS
18 18
WCM Pillars

Logic approach:7 Steps Approach
Logistics & Early

Cost Focused Autonomous Professional Quality People
Safety Customer Equipment – Environment
Deployment Improvement Activities Maintenance Control Development
Service Early Product
Preventive Reactive Preventive
Reactive
Proactive
Proactive

Safety
10 Technical Pillars approaching improvement in 7 Steps

Early
Logistics &
Cost Focused Autonomous Professional Quality Equipment – People
Safety Customer Environment
Deployment Improvement Activities Maintenance Control Product Development
Service
Management
To meet operators’ requirements,

promoting continuous improvement of
safety at the workplace.

Safety
Purposes Main Activities

o Drastically reduce the number o Periodic internal audits of safety
of accidents o Risk identification and
o Develop a culture of assessment
prevention as regards safety o Systematic analysis of accidents
o Constantly improve workplace o Technical improvements to
ergonomics machines and to the workplace
o Develop specific professional o Education, training and control
skills
Expected Results
o Workplaces improvement
o Elimination of conditions for potential
accidents
o General SAFETY IMPROVEMENT(ergonomics,
noise, ppe’s, tools)

Cost Deployment

Early
Logistics &
Service
Management
So that the management can apply an effective improvement plan

addressing major causes of losses with maximum effectiveness,
applying the most correct methods with the greatest impact.

Cost Deployment

o Scientifically and systematically o Localization of losses
address the main items of loss (losses/processes matrix)
of the plant production-logistics o Identification of sources of losses
system (source of losses/consequences
o Quantify potential expected matrix)
economic benefits direct o Valorization of losses (source of
resources and managerial losses/cost matrix)
commitment toward activities with o Valorization of expected benefits
the greatest potential (costs/benefits matrix)
Expected Results
o Objective knowledge of the main causes of loss
o Improvement of managerial skills towards clear understanding of priorities and
planned management of activities and benefits
o Improvement of the ability to plan all the skills necessary for application of the
methods chosen
o Analysis of relationships between cost factors, processes that generate costs
and the various types of rejects and losses
Focused Improvement

Early
Logistics &
Service
Management
To eliminate the main wastes and losses identified previously through Cost
Deployment, to avoid dedicating commitment and resources to non-
priority problems and to create know how to attack each specific loss.

Focused Improvement

o Drastically reduce major o Define the activities to be carried out,
production losses, eliminating objectives and resources for project
process inefficiencies implementation
o Eliminate non-value added o Train the groups and monitor project
activities in order to increase progress implement the projects
product cost competitiveness o Provide the groups with the necessary
o Develop specific professional specialist support
problem-solving skills o Certify and actualize results
Expected Results
o A significant reduction of costs through:
• improvement of overall equipment effectiveness (OEE)
• reduction of set-up times
• reduction of waste
• professional growth and acquisition of the method
• development of a wide-spread improvement-driven attitude.
Knowledge inventory
Examples
Heinrich Pyramid
Safety Management Audit Training
A, B, C,.. Matrix
5 Years CD
Quick Kaizen
Major Kaizen
AM Calendar
Breakdown map
Muri, Mura, Muda

460 Golden Zone
WCM Tools & Machine Ledger

Standard Maintenance Procedure
Methods Quality Assurance Matrix

Poke Yoke
Part classification
5T
Life Cycle Cost

Front loading concept
Design FMEA
Payback Period
Learn Use Teach Inspect method

Radar Chart
Environmental Management Audit

Training
Environmental risk assessment
Energy CD
4M Analysis
5 Why’s

People Development

Early
Logistics &
Service
Management
o because skills and methods of work are often unable to

guarantee error-free operations
o because of shortcomings in the skills assessment and
improvement system
o because knowledge and motivation to improve are
insufficient to enable the development of the required skills to
support the improvement projects

• Your bio says you use 400+ tools. How do you ensure proper
World Class Manufacturing understanding of all these tools? PD
People Development • How do you handle training for so many tools and methods (460?)

o Provide correct knowledge and o Mapping of skills required and possessed
skills for each workplace through a o Analysis of gaps and definition of
structured training system training plans
o Develop the roles of maintenance o Development of tools (4M, AM tags,
technicians, technologists, specialists OPL…) and training skills
as the main agents of training o Setting up of the Training Center with
o Assure simple, effective the necessary materials and equipment
documentation of knowledge and
operating skills owned and developed
that are to be deployed and
maintained
Expected Results
o Application of Quality Control for effective process control by operators: improvement of
quality
o Good maintenance skills: improvement of efficiency
o Application of Autonomous Maintenance: knowledge and application of cleaning, inspection
and lubrication by operators
o Zero human errors: application and deployment of error-proofing techniques (Poka Yoke)
o Reduction of the risk of accidents
o Improvement of climate and motivation
The way to approach – FI,PD,CD
COST DEPLOYMENT
(WHERE TO GO)
WORKPLACE QUALITY MAINTENANCE LOGISTIC
ORGANIZATION SYSTEM SYSTEM SYSTEM
PRIORITIZATION METHOD
MAJOR
LOSSES
RESULTS
FOCUSED IMPROVEMENT PEOPLE DEVELOPMENT

HOW WE HAVE TO WORK AND WHICH METHOD PEOPLE INVOLVEMENT IN ORDER TO
WE NEED TO SOLVE THE ISSUES AND REDUCE GUARANTESS KNOWLEDGE SKILLS AND KNOW
LOSSES HOW TO PURSUIT IMPROVEMENTS.

Workplace Organization

Early
Logistics &
Service
Management
o Because workplaces, materials and equipment are often downgraded, dirty

and untidy
o product quality is obtained with too many inspections and reworking
o people’s motivation can certainly be improved

Workplace Organization

o Improve production efficiency and o Setting up of the teams, training and
productivity: preparation for the activity
• restoring and maintaining basic o Elimination of everything that is not
conditions necessary, tidying and cleaning
• eliminating non-value added o Analysis and elimination of non-value
activities operators involvement added activities
• improving product and o Improvement of work cycles and of
equipment knowledge. product quality through development
of operators’ skills
Expected Results
o Elimination of labour and material losses
o Improvement of product quality through application of a sturdy, error-proof
process
o Improvement of productivity and process costs reduction
o Ergonomics and safety on the job
o Improvement of climate, motivation and proactiveness
Logistics and Customer Service

Early
Logistics &
Service
Management
o because stocks of material at the plant are high with heavy financial charges
o because there is a considerable risk of damage and obsolescence also due to the
condition of the containers and the need for sequencing
o because production has to be rescheduled frequently due to shortage of materials

Logistics and Customer Service
o • establish JIT conditions inside the o • application of the Value Stream Map to
plant and with suppliers identify losses and opportunities
o • considerably reduce stock levels o • improvement of the internal and external logistics
o • level volumes and production mix and o Definition of a proper material flow feeding:
improve line saturation JIS, JIT,internal sequencing, etc.
o • minimize internal handling, also o Definition of a proper material call off system:
with direct deliveries by suppliers to the from patrolling to kanban, call off, bom,…)
o assembly lines o • redesign packaging systems
o • integrate the sales networks, o • deployment of the main materials handling
manufacturing and purchasing
methods (synchronous JIT, Kanban, two bins
system, FIFO, shared external transport, etc.)
Expected Results
o prompt filling of orders – Level of service and delivery Quality
o reduction of stocks and work in process
o reduction of damage and obsolescence of materials
o improvement of plant logistics skills

Autonomous Maintenance

Early
Logistics &
Service
Management
o because equipment is often in deteriorated conditions

o because machine efficiency does not comply with objectives
o because people’s motivation can certainly be improved

Autonomous Maintenance

o Improve the global efficiency of o Creation of the teams, training and preparation
the production system: for the activity initial cleaning (cleaning for
• stopping accelerated inspection and for knowledge)
deterioration and restoring o Elimination of sources of contamination
and maintaining basic and inaccessible areas
conditions o Definition and application of efficient,
• involving people sustainable cleaning, inspection, lubrication
• improving product and and re-tightening cycles
o Improvement of inspection methods through
equipment knowledge.
development of operators’ skills
o Focus operators’ activities also through
product quality control
Expected Results
o Improvement of overall equipment efficiency (OEE) and of product quality
o Extension of the useful life of the equipment
o Improvement of climate, motivation and proactiveness
Professional Maintenance

Early
Logistics &
Service
Management
o because there is a high number of breakdowns

o because no systematic Preventive Maintenance activities are carried out
o because stoppages are seldom analyzed
o because there is little cooperation between operators and maintenance staff

Professional Maintenance

o Increase machine efficiency o Deployment, control and breakdowns
(increase MTBF - reduce MTTR) by analysis
improving maintenance skills and using o Improvement of maintenance staff skills
Fault Analysis techniques o Improve Planned Maintenance schedules to
o Facilitate cooperation between reduce costs
operators and maintenance staff in o Support of operators engaged in
order to achieve Autonomous Autonomous Maintenance (elimination of
Maintenance objectives tags and improvement of cleaning, inspection
and lubrication skills)
o Application of new maintenance techniques
Expected Results
o Reduction of machine breakdowns
o Improved Overall Equipment Effectiveness (OEE)
o Increase in the percentage of Planned Maintenance
o Definition of a Preventive Maintenance plan
o Motivation and professional growth of maintenance staff
o Improved cooperation between operators and maintenance staff
Quality Control

Early
Logistics &
Service
Management
o because customer satisfaction is not appropriate

o because sometimes faulty products reach customers
o because reject and reworking costs are high

Quality Control
o Guarantee product quality for o Deployment of defects, reworking and rejects in
customers, minimizing costs order to analyze the origin of non -conformities (QA
o Define production process matrix)
conditions able to prevent o Definition of operating conditions able to
occurrence of nonconformities guarantee the quality desired and process
o Maintain the conditions defined in order capability (QM matrix)
to guarantee conformity in time o Set-up, training and management of
o Improve operators’ problem solving improvement teams
knowledge o Compilation of the X matrix and definition of Q
Points and of prevention and maintenance cycles
(capital-intensive areas)
Expected Results o Definition of Standard Operating Procedures – SOP
(labour-intensive areas)
o Improved customer satisfaction
o A significant reduction in defects, rejects and reworking and therefore in the
costs of non quality
o Deployment of quality improvement skills
o Increase in product quality improvement proposals
Early Equipment Management & Early Product Management

Early
Logistics &
Service
Management
o because new equipment start-up times are often longer than expected
o because equipment is not designed to optimize operational running costs
o Because it’s extremely important to minimize the cash spent and reduce
the time to market
o Because it’s important to reach for the goal of a world class product launch
through cross-functional teamwork

• How do you involve engineering/design area into the
Early Equipment Management & Early Product Management WCM activities?

o Start new equipment in the defined time o Formal insertion of EEM in the product
o Guarantee fast, stable start-up development process through specific
o Reduce Life Cycle Cost (LCC) design reviews
o Design equipment that is easy to o Definition of quotes and specifications of supply
operate, maintain and inspect consistent with user’s needs (operation,
o For EPM the focus is the continuous maintenance, inspection, disposal)
o Co-design initiatives
improvement to current products.
o Knowledge management building for EPM
o Utilizing front loading, moves to preventive and
proactive
o Design standards and checklists guide the
Expected Results preventive and proactive improvements.
o Reduced life costs of the equipment

o Reliable, maintainable, accessible, easy to operate, inspect, clean, low noise equipment
o Definition of economically sustainable Preventive Maintenance cycles in the design phase
o Fast set-up and start-up
o High product quality
Environment & Energy

Early
Logistics &
Service
Management
o To meet the needs of operators and of

civil society, guaranteeing correct
management of the environment

• Did not see any mention of commitment to Net Zero or Circular Economy
Environment & Energy as part of the elimination of waste. Do you have such a policy?

o Comply with environmental
management e requirements and o Periodic internal audits on the impact
regulations of the factory on the surrounding
environment
o Develop a culture of prevention as
o Identification and prevention of risks
regards the environment
o Application of ISO 14000 standards
o Continuously improve the conditions
o Technical improvements to
of the working environment, also over
equipment
and above regulatory and legal
o Training, education and control
obligations
o Develop specific professional skills
Expected Results
o Reduction in energy consumption
o Reduction in the generation of polluting substances and noise
o Increase in the amount of material recycled
o Improvement of the working environment
o Elimination of the conditions for potential environmental accidents

How can we apply these concepts? What is the structure
and organization?
STRUCTURE
45 45
WCM Association Members

CNHi Organization WCC DIRECTOR
=1
WCM
PROGRAM MANAGER = 4
WCM PILLAR
CT WORLDWIDE = 13
WCM PILLAR
CT REGIONAL = 25
WCM Plant Manager
= 1 in each Plant
How many people, how is it organized? How many people in
WCM PILLAR LEADERS corporate? How many people in relevant Plants? (separate
departments, or as a part of Process/ Industrial Engineering or
= 13 in each Plant Quality or ?)

EVALUATION
MECHANISM
48 48
Change Management
Audit and Assessment System

Audit System
TECHNICAL PILLARS MANAGERIAL PILLARS

1. Health & Safety 11.Management Commitment
2. Cost Deployment 12.Clarity of Objectives
3. Focused Improvement 13.Route Map to WCM
4. Autonomous Activities 14.Allocation Highly Qualified People

• Work Place Organization 15.Commitment of Organization
• Autonomous Maintenance
16.Competence of Organization
5. Professional Maintenance towards Improvement
6. Quality Control Safety 17.Time and Budget
7. Logistics Customer Service 18.Level of Detail
8. EEM / EPM 19.Level of Expansion
9. People Development 20.Motivation of Operators
10.Environment/Energy
Audit Awards
System of ranking for Awards achievement?

CNHi Audit Awards
Detail & Best Virtual Plant
WCM 2019 2020 2021
# Plants involved 55 55 56
Roadmap
# Bronze plants 25 28 29 all in Europe
# Silver plants 15 16 16
# Gold plants 2 2 3
# World Class plants

World Class Supplier
The major part of the
value of a
car/truck/equipment
comes from the
supplier
Involve the strategic suppliers into the programme.
Create a robust partnership, based on the growth of people.
Improve conditions through a win-win approach.

WCM Suppliers
Detail & deliverables
Suppliers 2019 2020 2021
Roadmap
# Suppliers involved 206 218 220
# Bronze plants 2 3 3
# Silver plants 0 0 0
COSTS
TOO
EXPENSIVE
Prioritise
SERVICE
QUALITY/
Plants&
Warranty
spare
parts

RESULTS 55
Safety
CNHi WW
-45% Safety Lost times

Severity
index
-46%
Frequency
index
-53% -55%
Severity Frequency
index index
Fatal accidents
Accidents with Safety First Aids
permanent
injury
Accidents
4 plants with zero
First Aid incident since 3 years
6 plants with zero

incident since 2 years
Unsafe actions and
conditions

Environment and Energy
CNHi WW
Energy Reduction
CO2 Reduction

Engagement
CNHi WW
Suggestions per person
Best Practices

WCM data and figures
From 2020 Annual Report

• WHY WCM?
• PEOPLE IN WCM
• NEXT STEP
60
What is “World Class” ?
• It’s not a procedure

• It’s not a project
WCC • It’s not a Book of Knowledge
WORLD CLASS COMPANY

is a PROGRAM to
CHANGE BEHAVIOURS and
BUILD UP KNOWLEDGE to
continuously LEAN UP the Company
THE CHALLENGE is
“DO THE RIGHT THINGS ON THE FIRST TIME”

World Class
Company (WCC)
62
«Something done in right way
always can be done better»
Gianni Agnelli

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World Class Manufacturing

Our Company: CNHi structure

CNHindustrial IVECO Group

AGRICULTURAL CONSTRUCTION COMMERCIAL

LEAN CAFÉ _ 2021 September 23rd 1

AGENDA • WORLD CLASS MANUFACTURING

«Toyota is a wonder, they are the best and will

LEAN CAFÉ _ 2021 September 23rd 4

LEAN CAFÉ _ 2021 September 23rd 5

LEAN CAFÉ _ 2021 September 23rd 6

AGENDA • WORLD CLASS MANUFACTURING

The World Class Manufacturing is a LEVEL OF EXCELLENCE of total logistic/productive cycle.

IT DETECTS WASTE AND

IT INVOLVES ALL EMPLOYEES

IT INTRODUCES NEW TOOLS

LEAN CAFÉ _ 2021 September 23rd 8

Method Total Total Total

Quality Technical Service

Values Involvement, Value Creation, Customer Satisfaction

LEAN CAFÉ _ 2021 September 23rd 11

Sort Set In Order Shine Standardize Sustain

Engine line Engine line

LEAN CAFÉ _ 2021 September 23rd 13

Semi-Value Added Operations

The operator has to

LEAN CAFÉ _ 2021 September 23rd 15

LEAN CAFÉ _ 2021 September 23rd 16

LEAN CAFÉ _ 2021 September 23rd 17

LEAN CAFÉ _ 2021 September 23rd 19

Logistics & Early

Preventive Reactive Preventive

LEAN CAFÉ _ 2021 September 23rd 20

10 Technical Pillars approaching improvement in 7 Steps

To meet operators’ requirements,

LEAN CAFÉ _ 2021 September 23rd 21

Purposes Main Activities

LEAN CAFÉ _ 2021 September 23rd 22

10 Technical Pillars approaching improvement in 7 Steps

So that the management can apply an effective improvement plan

LEAN CAFÉ _ 2021 September 23rd 23

Purposes Main Activities

10 Technical Pillars approaching improvement in 7 Steps

LEAN CAFÉ _ 2021 September 23rd 25

Purposes Main Activities

Muri, Mura, Muda

WCM Tools & Machine Ledger

Methods Quality Assurance Matrix

Life Cycle Cost

Learn Use Teach Inspect method

Environmental Management Audit

LEAN CAFÉ _ 2021 September 23rd 27

10 Technical Pillars approaching improvement in 7 Steps

o because skills and methods of work are often unable to

LEAN CAFÉ _ 2021 September 23rd 28

Purposes Main Activities

FOCUSED IMPROVEMENT PEOPLE DEVELOPMENT

LEAN CAFÉ _ 2021 September 23rd 30

10 Technical Pillars approaching improvement in 7 Steps

o Because workplaces, materials and equipment are often downgraded, dirty

LEAN CAFÉ _ 2021 September 23rd 31

Purposes Main Activities

10 Technical Pillars approaching improvement in 7 Steps

LEAN CAFÉ _ 2021 September 23rd 33

LEAN CAFÉ _ 2021 September 23rd 34