16th of October 2009
MASTER THESIS
CULTURAL AND ORGANISATIONAL APPROACH
EXECUTIVE MBA
NODET ALAIN
MAIN PURPOSE OF THIS THESIS • Main purpose of this thesis This thesis describes the strategy implemented by the Industrial Executive Team to deploy a Lean Manufacturing approach in the 5 factories of the FagorBrandt Group. Through the different chronological phases, the managerial and organisational impacts are analysed in terms of advantages, difficulties and benefits for the people and for the company.
• Target of this presentation The target of this presentation is to show a synthesis of this approach with a specific focus on the strategy elaboration : - Who is committed ? - How to do it ? - What the first actions and the first results are ?
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AGENDA
• The FagorBrandt Company
• Lean Manufacturing definition and why in our company • Top management commitment
• Our Lean approach and the reasons for this choice • The FagorBrandt model – “How to do it”
• Pilot actions • First tangible results • Conclusion
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THE FAGORBRANDT COMPANY • FagorBrandt identity card Company name :
FagorBrandt SAS
Activities :
Household appliances and small goods
Main markets :
France, Spain, UK, Italia, Holland, Australia, Norden, US
Brands :
Fagor, Brandt, Vedette, Sauter, De Dietrich, Thomson, Ocean, Samet, San Giorgio
Commercial loc. :
All continents
Facilities loc. :
France
Employees :
4 000
Main competitors :
BSH (Viva, Bosch, Siemens, Gaggeneau) Electrolux (Faure, Arthur Martin Electrolux, AEG, Zanussi) Indesit (Ariston, Scholtès, Indésit, Hotpoint) Whirlpool (Whirlpool), Miele (Miele, Imperial) Candy (Rosières, Candy) Samsung, LG, No name
Orléans
Vendôme
Aizenay
La Roche
Lyon
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LEAN MANUFACTURING • Lean Manufacturing definition Lean Manufacturing is a global organisational approach, with some specific tools, which focuses all available resources on the real value supplied to the customer. In this way, the Lean approach identifies all waste along the product or service life cycle in order to eliminate them.
• Why I should launch this approach - Managerial reasons • To mobilize managers and teams • To give a long-term industrial vision
-Economical reasons • To compete with a worldwide level (Asian and Eastern competitors) • To resist to the economic crisis – risk and opportunity
- Industrial reasons • To get cost reductions, quality and time delivery improvements • To change an old manufacturing organisation => lack of flexibility 5
TOP MANAGEMENT COMMITMENT • Top-down approach FagorBrandt Executive Committee Manufacturing Steering Committee – Lean Committee Factory Executive Committees Managers
Technicians & Workers
• Decision and coordination loops Manufacturing Manager
Factory Managers
Workshop Managers Workers
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OUR LEAN MANUFACTURING APPROACH • Two different ways of a Lean approach Automotive industry approach • Centralised and independent team • Top-down management • Teams have to apply procedures • Single methodology • Controlled by audit
FagorBrandt approach • Managed by the Manufacturing Committee • Multi-level management • Teams have to define and apply procedures • Adapted methodology • Controlled by audit
• Main reasons for this choice Managerial project before to be an industrial project.
Previous failed experience in 2005.
To reach a deep involvement of the factory managers in this new challenge.
To respect the cultural and maturity differences between each plant. 7
CHOICE OF “HOW TO DO IT” • The “Manufacturing 2010” house
1 target
4 axes
3 attitudes 8
CHOICE OF “HOW TO DO IT” • The internal communication First intention : create a specific campaign of posters. - Abandoned because expensive, complicated and may be artificial.
Selected solution : use the existing supports (periodic workshop meetings and internal publications) - Efficient, simple, free and already known.
• With or without external assistance Simple observation : a global lack of Lean Manufacturing knowledge Decision to use : - Training-action with consultant (dedicated to a specific problem) - Exchange of experiences between factories - Visit of other companies already implementing a Lean approach - Conferences and books 9
CHOICE OF “HOW TO DO IT” • Deployment phase To the factory boards The “Lean University” – 3E methodology (Explore, Engage and Execute) : One day and a half, all the factory boards, ‘green location’ (Escem) - Team-building - Explore : Understand the project ‘Manufacturing 2010’ - Engage : Work and share their vision about the Lean - Execute : Define the first steps of their factory action plan To the middle management Organised by each factory board during management meetings. After Lean basis explanations, they have to define their priorities on their own and start concrete, quick and simple actions in workshops. To the workers Done by the middle management next to the assembly lines. With simple actions performed at their own workstations and rewards for best practices.
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SOME PILOT ACTIONS • Ergonomic action in Orleans
Before
After
• 5S action in Lyon
Before
After 11
i-0 8
-09 rs09
8.0
6.0
2500.0
2000.0
4.0
1000.0
2.0
0.0
-
-2.0
i-0 9
pt09
-07
i-0 7
pt07
-08
pt08
-09 rs09 ma
ma
jan v
no v -0 8
se
juil -08
i-0 8
ma
rs08
ma
jan v
no v -0 7
se
juil -07
ma
rs07
ma
jan v
no v -0 9
se
juil -09
ma
pt09 no v -0 9
pt09 no v -0 9
se
3500.0
se
10.0 i-0 9
4500.0 juil -09
PRODUCTIVITY (%) - 2007 / 2009
i-0 9
• Productivity
juil -09
ma
ma
jan v
no v -0 8
pt08
se
juil -08
ma
rs08
500.0
-08
RUPTURES SERVICE (Unit) - 2007 / 2009
ma
-09
rs09
jan v ma
FINISHED PRODUCT INVENTORIES (Unit) - 2007 / 2009
jan v
1500.0
pt07
• Ruptured Service
no v -0 7
pt08
no v -0 8
se
juil -08
i-0 8
ma
• Finished product inventories
se
3000.0
i-0 7
4000.0
juil -07
pt09
no v -0 9
se
5000.0
ma
i-0 9
juil -09
-08
rs08
ma
jan v
-
rs07
-09
rs09
ma
ma
jan v
no v -0 8
pt08
se
pt07
no v -0 7
se
100 000
-07
i-0 8
juil -08
ma
i-0 7
juil -07
ma
rs07
-07
150 000
ma
-08
rs08
ma
jan v
no v -0 7
pt07
se
juil -07
i-0 7
ma
ma
jan v
300 000
jan v
-07
rs07
jan v ma
FIRST TANGIBLE RESULTS • Customer backlog CUSTOMER BACKLOG (Unit) - 2007 / 2009
16 000
250 000
14 000
200 000
12 000
10 000
8 000
6 000
50 000
4 000
2 000
-
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CONCLUSION • What has been experienced Positive points
The 5 factories have actively started implementing Lean Manufacturing. The process of deployment has been top-down and bottom-up. The schedule has been respected and the first results are visible.
To be improve
Teams had an obvious lack of Lean knowledge in the starting phase. The communication with the unions has been too late. A weak commitment from the Executive Committee (pb of information).
• A extraordinary experience of management First of all, a Lean Manufacturing approach is a human adventure where the personal attitudes are more important than technical competencies. It is a long-term commitment which is able to direct teams toward a single target of improvement. ‘Gemba’ actions had revealed hidden talents of some people (future managers).
“The improvement is infinite”
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