Learning from the best:

Lean through volatile markets

Questionnaire 2012

Bild: BMW Group

Automotive Lean Production Award & Study

Application deadline: April 13th, 2012

Award & Study: Application and dates

Application deadline for the
'Automotive Lean Production'-Study 2012 is April

Info Line 'Automotive Lean Production':

13th, 2012.

Please return the completed questionnaire to:

Agamus Consult Unternehmensberatung GmbH c/o Mr. Ferdinand Wagner Boschetsrieder Strae 69 D-81379 Mnchen
Your data will be stored electronically until the evaluation and, of course, handled confidentially. Data will not be used for any other purpose nor divulged to third parties.

Tel. +49 89 558917-530 Fax: +49 89 558917-555 Email: lean.award@agamus.com or Internet: www.automobil-produktion.de/alp www.agamus.de/automotive-lean-production-award There you will also find the questionnaire for download.

'Automotive Lean Production' Award & Study

is a cooperation between the magazine AUTOMOBIL PRODUKTION and Agamus Consult Unternehmensberatung GmbH. Agamus Consult has served automotive enterprises as an implementation consultant for more than 18 years.

BMW Leipzig Plant: 7th Congress 'Automotive Lean Production'

On November 27th and 28th, 2012 an international circle of experts will meet for the 7th Congress Automotive Lean Production in Leipzig. Frank-Peter Arndt, Member of the Board of Management of BMW AG in charge of Production, will open the Congress. Within this event the bestperformers of the study receive the Automotive Lean Production Awards 2012 and present their prize-winning lean-projects. The BMW plant Leipzig, 2011 award-winner in the category excellent overall-system, invites the participants to an exclusive visit to its production on November 27th, 2012. Information about the congress: www.automobil-produktion.de/alp and www.agamus.de/automotive-lean-production-award

The winners of the Automotive Lean Production Awards 2011

Photo: Gudrun Muschalla

Bild: BMW Group

Learning from the best Lean through volatile markets

Objective of the initiative Lean leads to success Since 2006, Agamus Consult and AUTOMOBIL PRODUKTION have annually carried out the study Automotive Lean Production. The study paper is focused on the following questions: n What are the success factors of Lean Production? n Efficiency and effectiveness: How does the leanmethodology work? n Objective Lean processes: What are the main steps? n Who applies Lean methods and strategies and what are the results in terms of quality and cost? n Thinking beyond: Lean Production as part of a Lean Enterprise n How does Lean Production develop in Germany and Europe and who is best in class? The best performers of the study will be awarded the Automotive Lean Production Award in the following categories: n OEM n Supplier: International Group, Midsized International Company, Midsized National Company Due to the increasing number of participants from such areas as commercial vehicles or special-purpose-vehicles, an Award will be assigned among these participants for the first time in 2012.

Winners of the 2011 Awards were BMW, Volkswagen, TRW Automotive, Behr and Continental. They are presented on page 9. Participation is free. Who can participate? The questionnaire is intended for Lean Managers in the fields of production, logistics and development as well as Operations Managers with national or international responsibility. The survey addresses plants or operating units that earn at least 50 percent of their revenue in the automotive sector. Results of the Study After analysis of the questionnaires, the top performers candidates for the 2012 Lean Production Award - are visited for further analysis and on-site validation of the results. In a personal feedback session you discuss your strengths and potential for improvement together with the experts. The study allows direct comparison with the best of class: In addition to the study paper (regular price Euro 289,--), all participants receive an individual analysis with benchmarkresults in international comparison on request.

Comments from former participants

I consider the immediate feedback by the external experts who have analyzed our processes intensively and with great competence as a very important point. Already in the validation phase, we received valuable new thoughts that led to further optimization options.
Peter Kssler, Plant Manager Ingolstadt, AUDI AG (Interview with Tina Rumpelt, issue 10/2010 of AUTOMOBIL PRODUKTION magazine)

The Automotive Lean Production Award, one of the most important awards in the automotive industry
BMW Group Communication (BMW Press-Information, September 15th 2010)

Just by attentively reading the studys questionnaire we were able to make significant progress
Plant Manager of an OEM (Extract from a letter that was attached to a returned questionnaire, April 2010)

2012 Agamus Consult - All rights reserved

A. Contact data
1

Name of participant:
2

Job title:
3

Company and address:

4

Phone number:
5 6

E-Mail: What is the exact designation of your unit (company, plant, ) you are participating with in the study? (hereafter always designated as plant) ____________________________________________________________________________________________________ State your plants two most important products: ____________________________________________________________________________________________________ Do you wish to apply for one of the AWARDs for your plant? (You will receive the results of the study even if you do not apply for the AWARD.)
YES NO

7 8

B. Structural data
9 10 11 12 13 14

YES

NO

15 16

17

How many employees work at your plant? What is the percentage share of temps (temporary workers, etc.) in production-related depart% ments? (Based on FTE) What is the quota of direct employees in relation to the entire workforce? % (direct employees = spend at least 80% of their attendance with value adding activities) What was your plants revenue in the last business year? (In millions of ) What percentage of your revenue stems directly from enterprises in the automotive industry? % Your organization is mainly attributable to which tier of the automotive industry? (one response only please) OEM TIER 1 TIER 2 or higher Are you a development supplier? What percentage of your total volume is delivered by the following ways to the customer? % Batch % Just in Time (JIT) % Just in Sequence (JIS) What are the main production technologies at your plant? Assembly Casting (metal) Pressing, punching, forging ... (metal) Machining (shape-cutting) Painting, powder coating, heat treatment, electroplating Plastics processing (e.g. injection moulding, thermoforming, RIM-process) Manufacturing of electronic parts (e.g. SMD assembly) Other (please specify) _____________________________________________________________________

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C. Introduction of Lean
There is not just one way to implement Lean Production. Each company has to find its own path.

18

Which implementation strategy did you select and which do you consider to be the most effective? Top-Down (method-driven, e.g. description of the lean-system => rollout => measurement of implementation stage) Bottom-Up (process-driven, e.g.. process analysis => test of suitable methods => system description => extension to other areas => measurement of process quality) Bipolare strategy (introduction from the top and the bottom at the same time) Wedge strategy (implementation starts at the middle management level of the organization) Multiple-nucleus strategy (implementation on different organizational levels and areas at the same time) Which were/are the three most important success factors for the successful implementation at your organization? 1. 2. 3. Which were/are the three most critical obstacles for the successful implementation at your organization? 1. 2.
NOT SO IMPORTANT

19

20

UNIMPORTANT

21

22

Benchmarking Creation of a dedicated organizational unit that is responsible for the production system External support Hiring of lean-experts Networks (benchmarking networks, Universities, visits to reference sites,) Audits by interns Audits by externs Lean-controlling (cost, results, ROI, time, effort of employees) Other (please specify)___________________________________________________________ What do you consider important when implementing a production system? Detailed concept and system description Little development expenditure Recording and documentation of methods Quick results (Quick wins) Sustainable improvement of efficiency Other (please specify)___________________________________________________________

D. Lean Philosophy & system approach

How far along are you on the way to a lean company? 23 24

YES

25

Since when (year) have you been introducing lean principles and tools to an appreciable extent? Rate your progress in introducing lean practices; what phase are you in now? (one response only please) The planning stage we have yet to introduce lean principles The early phase we have launched pilot projects and achieved some positive results Extensive introduction the initiative is underway and we have applied lean principles and practices to many areas and achieved solid progress Advanced implementation most lean practices have been introduced comprehensively Almost all employees, department heads, and managers understand, abide by, and act according to lean principles YES NO Which statement applies to your plant? (one response to each statement please) We can quantify the benefits of introducing lean production We can quantify the costs of introducing lean production We are satisfied with the implementation speed at which we are introducing lean production
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SEHR WICHTIG NO

WICHTIG

3. What were or are support factors for your implementation? (please select on the scale from unimportant to very important)

MOST EFFECTIVE

SELECTED

26

27 28

29

Factors that limit the introduction of lean production are (one response only to each statement please): Employees do not have enough time for this Employees willingness to deal with lean production Financial resources Existing machinery The plants current layout Other reasons_____________________________________________________________________________ There are no limiting factors at our plant How many suggestions for improvement are submitted per employee and year? How strong was/is the commitment of the top management regarding Lean and the production system? % During the introductory phase (please state positive in 0-100 percent) % How is it today? (please state positive in 0-100 percent) DEVELIMPLEAccording to your estimation, where do you see your position at the following long OPED MENTED term topics? (please state positive in 0-100 percent) % % Lean-strategy developed and implemented % % Production system developed and implemented % % Tactical rollout-plan developed and implemented Controlling-system, which connects lean performance indicators with the profit and loss % % statement

30 31

To which extent have you implemented the following lean production practices at your plant? 5S (sort, set in order, shine, standardize, sustain) FMC - Flexible Manpower Cell (a working environment in which people and machines can quickly adapt to changing customer demands) Flexible working hours (e.g. flex time accounts) Flow production (work cells sequenced to match the flow of materials, optimized paths, synchronized and concatenated processes) Group/team work models (multiple qualifications, partly autonomous teams) Kaizen workshops (continuous improvement workshops with the employees who take part in the process) Supplier development (proactively develop the supplier to extensively integrate material and information flows) Cyclical materials supplier in production (e.g. milk run, water spider) Level production (smooth out call-offs with the aim of regularly producing uniform quantities of a product for a defined period) Poka-yoke (employ a specially designed material or manufacturing process to prevent errors; failsafe processes) Q-Tools (QFD, FMEA, 6-Sigma) Fast-response systems (standardized event- and time-driven escalation procedures that provide the necessary resources in the event of problems; e.g. andon display board) Fast setup (fast tooling to flexibly respond to customer requirements; goal: reduce stock)
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32 33

34 35

36

37 38

39

40 41

42

HALFWAY

PILOT

Lean-elements are the base for operating and continuously improving a lean company. The challenge during conception and implementation is the specific selection of the elements that fit the company and to combine them efficiently.

COMPLETELY

EXTENSIVELY

Lean-Elements

NOT IMPLEMENTED

E. Production system - structure and implementation level

43

Standardized workflows (clearly visualize workflows, defined workers-cycles dependent on the customer tact time; Goal: process reliability and efficient employee deployment) Standardized KPIs (key performance indicators) (key figures, that represent the necessary efficiency ratios (OEE, workforce productivity, complaint files) at production group level and are aggregated to area codes) TPM - Total Productive Maintenance (maintenance strategy, autonomous maintenance, management of external services, spare-part-management, workload planning and scheduling in maintenance) Pull production control (pull principle, self-regulated control loops) Visual management (visual indications of standards to ensure deviations are monitored and readily identified) Value stream methodology (create graphical views of material and information flows in the form of a map and model; determine total lead time and identify unproductive activities within the cycle) Segmentation (formation of independent production units, that produce a product self-reliant)

44

45

46 47

48

49

F. Measurement of maturity and implementation state

A saying that is also true for introducing a production system: What you cant measure, you cant manage 50 51

YES

NO

52 53

NOT SO IMPORTANT

IMPORTANT JA

UNIMPORTANT

Do you measure the maturity level of your production system? How do you mainly measure the maturity level? (one response only please) Internal audits Audits executed by external personnel Are you using special performance indicators to measure the maturity level? If yes, which?_____________________________________________________________________________ How important are the following lean-fields at your plant?

Long-term company strategy (connection of lean-activities in order to optimize the business model) Process optimization (basics and tools for lean design and improvement of value streams) Challenge and encourage employees (Integrated concepts, solutions and rewardsystems for lean-training on all hierarchy levels) Challenge and encourage suppliers (Supplier Development, value-stream optimization, integration of suppliers in terms of exchange of experience with lean and joint development of best-practices) Learning Organization (behavioural change in order to establish a self driven CIP)

G. Supply Chain
Only an integrated consideration of the value chain avoids sub optimal partial solutions. 54 55

56 57 58

What is the percentage share of material costs in total turnover? (raw materials and purchased parts) How much of this material is delivered by the following ways of delivery? Batch Just-In-Time (JIT) Just-In-Sequence (JIS) With how many suppliers do you have a logistics agreement? (e.g. VMI, consignment stock, time windows for delivery) With how many suppliers do you have an EDI agreement? With how many suppliers do you have a quality assurance agreement? (e.g. quality inspections at the suppliers and random samples at the customers)
2012 Agamus Consult - All rights reserved

VERY IMPORTANT NEIN

% % % % % % %

59

60 61

62

63

64 65 66 67 68 69

What are the percentage shares of your inventory? (please specify each in percent) Raw material Work in progress (incomplete products) Semi-finished products Finished products Is there one pacemaker process in the defined value stream designs? To what extent do you analyze value streams from your company to the customer? Less than 25 % 25 % bis 50 % More than 50 % We do not analyze value streams towards customers To what extent do you analyze value streams from your company to the supplier? Less than 25 % 25 % to 50 % More than 50 % We do not analyze value streams in respect of suppliers. What is the time frame for the improvements with suppliers that are derived/developed from value streams? Up to 6 months 6 months to 1 year 1 year to 3 years Lean has been expanded to most strategic suppliers. The following information concernig these suppliers are known: The suppliers value streams The suppliers stocks (referred to their delivery contents) Qualification activities of the suppliers Key figures (such as PPM, trash and rework rate, production capacities, OEE) Do you maintain a regular dialog about lean practices with your customers? with your suppliers?

% % % %

H. Value Stream Performance

The Value Stream Performance describes the ability to let material flow. It is an important adjusting lever for the success of the company. 70 71 72

73 74 75 76

How many days supply (own + consigned) of finished goods do you maintain on average? How many days supply (own + consigned) of raw materials do you maintain on average? How frequently do you produce your A products? (One answer only please) Several times a day Every day Every third day Every week At intervals greater than weekly or irregularly Unknown What is your plants service level (on time in full deliveries) from your customers perspective? (order placement date, delivery date) What is your suppliers customer service level from your perspective? (order placement date, delivery date) How high is average overall equipment effectiveness (OEE) as a percentage of total production time at bottleneck processes/machines? How high is your direct customers complaint rate? (product and logistics defects only)

YES

NO

% % %
PPM

77 78

I. Your experience with lean YES NO Every implementation of lean-production is subject to (external) influences. How do you stay on track in order to achieve your objectives? How are employees at the shop floor level rewarded for the success of lean practices? Please name examples: ___________________________________________________________________________________________ Is middle managements resource planning for lean topics realistic?
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79 80 81 82

Does middle management incur significant capacity bottlenecks in the course of the year (e.g. brought on by having to deal with additional issues)? From the production managers perspective: The lean philosophy is important. Lean issues take up .... ____% of my daily work time. Would employees approach company management if plant management decided to stop using lean tools? What relative percentage of improvement did you achieve through your lean-actiIMPROVEvities in the last two years respectively are you planning to achieve in the next two MENT IN years? In terms of:

IMPROVEMENT IN THE LAST 2 THE NEXT 2 YEARS YEARS

83 84

85 86

Productivity % % Cost reduction % % Internal PPM % % PPM to customer % % Lead time % % Reaction speed % % Flexibility % % Other (please specify) __________________________________________________________ % % How much higher is the yearly increase in productivity caused by your lean-activities, than it % would be if you hadnt started those activities. How much manpower did you invest in the last 12 months into the implementation/development of leantopics within your area? (in man days) Management Internal lean-experts External consultants Trainers for courses FTE/100 EE How many lean-experts that are released from other duties do you have per 100 employees? How long did it take / will it take until your investment in lean paid off respectively will pay MONTHS off?

J. Trend
Stagnation in lean leads to relative decline in performance. Lean needs to be continuously developed and transferred to other areas. 87 YES NO

88

How do you regard the importance of lean in the future? Decreasing Constant Increasing What are the future topics at your company in terms of lean? (please name) ___________________________________________________________________________________________________ ___________________________________________________________________________________________________

89

Where do you see the challenges of the future in terms of lean? (please name) ____________________________________________________________________________________________________ ____________________________________________________________________________________________________

90

91

Is management sufficiently aware of the current status of and developments in lean practices? (Lean Development, etc. ) In terms of in-house developments? (objectives, roadmap, achievements) In terms of external developments? (trends, congresses, training, publications) Are you affected by the development towards an aging society? (Yes, if average age of employees in production and logistics is above 35 years) If yes, are you considering this within your production system? How? ________________________________________________________________________________________

YES

NO

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K. Lean Development
The extension of the development focus to the whole value chain will be an increasing factor for success in the future.

concerning costs concerning functionality/mountability concerning logistics (e.g. stock, area, lead time, packaging) concerning quality/warranty and goodwill costs concerning complexity (e.g. overhead, change management)

Contact: Ferdinand Wagner Project Manager Automotive Lean Production Award&Study Agamus Consult Unternehmensberatung GmbH Boschetsrieder Strae 69 D-81379 Mnchen Phone: +49 89 558917 530 lean.award@agamus.com

2012 Agamus Consult - All rights reserved

NOT AT ALL

COMPREHENSIVELY

PARTIALLY

How correct are the following statements? We already have a lean development system We are using proactive supplier management that integrates the suppliers into the product development process (PDP) at an early stage 94 The PEP is throughout fully focused on the customer value and requirements. Methods like QFD are applied consistently 95 There is a explicit project organisation with clear assignment of competences and responsibility 96 There is a multi-project-organisation 97 We have a distinct variant and complexity management 98 Efficient risk management is applied during the development stage 99 An efficient knowledge management system is installed. All project data is centrally organized at a high level of standardization 100 After each project completion there is a systematic lessons learnt process 101 Where are the causes for disturbances at your production start-ups? Customers Internal Suppliers 102 To what extent do you assess the effects of an added variant?
92 93

ABSOLUTELY CORRECT

NOT CORRECT AT ALL

GENERALLY CORRECT

NOT QUITE CORRECT

AUToMoTIve LeAn ProDUCTIon AWArD 2011

The winners of the benchmark-studyAutomotive Lean Production 2011 presented by AUToMoBIL ProDUKTIon and Agamus Consult (from left to right): Jrgen Ernst, Plant Manager, Mhlacker Plant, Behr GmbH & Co. KG Manfred Erlacher, Senior Vice President Plant Leipzig, BMW AG Franz Linner, Vice President Purchasing, Production and Technology Cockpit and Interior, BMW AG Wolfgang Gntner, Plant and Location Manager Regensburg, Continental Automotive GmbH Hartwig Diers, Project Supervisor NSF, VW Slovakia, a.s. Dr. Andreas Siebert, Plant Manager, TRW Automotive, European Breaking & Suspension, Koblenz

Bild: Gudrun Muschalla

The winners of the

Automotive Lean Production Awards 2011

Category "oeM": volkswagen AG, Werk Bratislava Category "International Group": Continental Automotive GmbH, Werk regensburg TrW Automotive Lucas Automotive GmbH, Werk Koblenz Category "Midsized International Company": Behr GmbH & Co. KG, Werk Mhlacker Category "Best value Chain": BMW AG, Werk Landshut Special-Award "excellent overall System": BMW AG, Werk Leipzig

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