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Copyright Autoliv Inc., All Rights Reserved
AutolivGeneralPresentation 2008-09-18Sabancý UniversityElçin Calado
ALV-ER/Sep2008/General Presentation2008 - 2
Autoliv in Brief
§ Sales and technology leader
§ Sales: US $6.8 billion
§ Fortune 500 company
§ Sales to all major vehicle manufacturers
§ >80 facilities in 32 vehicle producing countries
§ 13 technical centers in 12 countries and 21 crash test tracks
§ About 42,000 associates and 4,000 in R,D&E
RoW13%
Japan
9%
Europe
54%
North America
24%
Autoliv in Brief
ALV-ER/Sep2008/General Presentation2008 - 3
Autoliv in the World
USA
Mexico
Brazil
Argentina
Australia
South Africa
EUROPE• Czech• Estonia• France• Germany• Hungary• Italy• Poland• Romania• Russia• Spain• Sweden• Turkey• UK
India
ChinaJapan
Indonesia
Canada
Korea
Malaysia
PhilippinesThailand
Taiwan
Autoliv in Brief
Tunisia
ALV-ER/Sep2008/General Presentation2008 - 4
Autoliv’s Global Engineering
USADetroit Ogden
FranceGournayPont-de-BuisCergy-Pontoise
GermanyElmshorn
Dachau
AustraliaMelbourne
SpainBarcelona
South KoreaSeoul
JapanTsukuba
Kanagawa
SwedenVårgårda
Motala/Linköping
ChinaShanghai
TurkeyGebze
Autoliv in Brief
8 crash tracks for full scale tests and 21 sled crash tracks.Approx. 4,000 employees in R,D&E.
Technical center with crash labOther technical centerCrash lab
RomaniaBrasov
ALV-ER/Sep2008/General Presentation2008 - 5
§Our visionTo substantially reduce traffic accidents, fatalities and injuries
§Our missionTo create, manufactureand sell state-of-the-art automotive safety systems
Vision, Mission & Strategies
ALV-ER/Sep2008/General Presentation2008 - 6
Our Values
§ Life - we have a passion for saving lives.
§Customers - we are dedicated to creating satisfaction for our customers and value for the driving public.
§Employees - we are committed to the development of people’s skills, knowledge and creative potential.
§ Innovation - we are driven for innovation and continuous improvement.
§Ethics - we adhere to the highest level of ethical and social behavior.
§Culture - we are founded on global thinking and local actions.
Vision, Mission & Strategies
ALV-ER/Sep2008/General Presentation2008 - 7
Our Strategies
Customers Technology Cost Control Employees
§ Global Presence
§ Highest-value safety system solution
§ Highest level ofservice
§ Technologicalleadership
§ Complete systemcapabilites
§ Efficient manufacturingand purchasing
§ Quality excellence
§ Dedicated andmotivated employees
Vision, Mission & Strategies
ALV-ER/Sep2008/General Presentation2008 - 8
2006 Safety Vent Bag
7% of all automotive industrysafety patents
2005 Night vision systemPedestrian hood
2004 Fixed-hub steering wheel 2002 Anti-sliding bag
Adaptive load limiter2000 Telematics
1998 Curtain airbag Anti-whiplash seat
1997 Side airbag for head protection, ITS
1995 Knee airbag and seatbelt load limiter
1994 Side thorax bag
1992 Steering wheel integrated sensor
1989 Seatbelt buckle pretensioner
1986 Belt grabber
1980 Airbag production
1956 Seatbelt production
2007 Multi Volume Cushion
2008 Integrated Safety Electronics
Technology Leadership Technology
ALV-ER/Sep2008/General Presentation2008 - 9
Complete Safety System Supplier
Steering WheelDriver Airbag
Pelvis & ThoraxSide Airbag
Inflatable Curtain
Passenger Airbag
Seatbelt SystemsRear Side Airbags
Electronic Control Unit (ECU)
Knee Airbag
On-Call-System Pedestrian Protection
Night Vision Camera
Satellite Sensor
Anti-Whiplash System
Anti Sliding Airbag
Other Important Products:Child SeatsActive Seatbelts
Technology
ALV-ER/Sep2008/General Presentation2008 - 10
Product Development SystemAPDS
Project startConcept validation
Product & process developmentDesign verification
Full-speed production runs
Concept ideaFeasibility studyCost targets
Product & process qualification
PRODUCT IDEAS§ Crash tests § Crash statistics§ Customer demands§ Universities§ Independent inventors § Insurance companies
PHASE 1CONCEPT DEFINITION
PHASE 2DEVELOPMENT
PHASE 0PROJECT INITIATION
PHASE 4PRODUCTION LAUNCH
PHASE 3VALIDATION
CONTINUOUS IMPROVEMENTS
CommercialProduction
Technology
ALV-ER/Sep2008/General Presentation2008 - 11
Products in Focus Technology
Night Vision Safety Vent Airbag Curtain Airbag Active Seatbelts
ALV-ER/Sep2008/General Presentation2008 - 12
Re-design Saves Both Costs and the Environment
1998
Weight: 2.3 kg
Weight: 3.3 kg
30%
26%
Weight: 1.7 kg2008
2002
Technology
ALV-ER/Sep2008/General Presentation2008 - 13
Our Zero-defect Policy
Eliminate bad designs
Eliminate bad components
Eliminate bad manufacturing
Eliminate non-conforming products
Autoliv Product Development System
(APDS)
AutolivProduction System
(APS)
AutolivSupplier Manual
(ASM)
Autoliv Quality System
(AQS)
Zero defect
Quality
ALV-ER/Sep2008/General Presentation2008 - 14
Well-balanced WorkforceAutoliv Türkiye
Employees
0
5
10
15
20
25
30
<20 20-25 26-30 31-35 36-40 41-45 46-50 51-55 56-60 >60
Men Women
ALV-ER/Sep2008/General Presentation2008 - 16
The TPDS / ”The 7 wastes in Product DevelopmentDD SS
Stop and go tasks / redundant meetings/ superficial reviews
Excess motion or activity during task execution6 Motion
Batching, system overutilization, arrivalvariation
A build up of material or information that is not being used
5 Inventory
Stop and go tasks, redundant tasks, reinvention, process variation- lack of standardization
Doing unnecessary processing on a task or an unnecessary task
4 Processing
Hand-offs/ excessive information distrubation
Moving material or information from place to place
3. Conveyance
External quality enforcement, correction and rework
Inspection to catch quality problems or fixingan error already made
7 Correction
Waiting for decisions, information distrubation
Wait for materials, information, or decisions2 Waiting
Batching, unsynchronizeed concurrenttasks
Producing more or earlier than the next process needs.
1 Overproducing
PD ExamplesWhat is this? (in Manufacturing)7 Wastes
ALV-ER/Sep2008/General Presentation2008 - 18
Lean PD Definition
We all know Toyota and Honda is making a good long term progress
World economy
DD SS
ALV-ER/Sep2008/General Presentation2008 - 19
Lean-PD Definition
How have Toyota come to today´s position?
If You ask Toyota themselves how they do they don´t have a good answer …”thats the way we always have done.”( = it´s in the Toyota culture since the company started).
Learn from Toyota, create a model
DD SS
ALV-ER/Sep2008/General Presentation2008 - 20
LEANPRODUCT
DEVELOPMENTSYSTEM
SKIL
LED P
EOPL
E
TOOLS & TECHNOLOGY
PROCESS
Lean PPD Model and 13 Principles
(from The Toyota Product Development System)
1. Establish customer-defined value to separate value added from waste. 2. Front load the product development process to thoroughly explore alternative Solutions while there is Maximum Design Space. 3. Create a leveled Product Development Process Flow. 4. Utilize Rigorous Standardization to Reduce Variation, and Create Flexibility and Predictable Outcomes.
5. Develop a “Chief Engineer System” to Integrate Development from start to finish. 6. Organize to balance Functional Expertise and Cross-functional Integration. 7. Develop Towering Technical Competence in all Engineers. 8. Fully Integrate Suppliers into the Product Development System. 9. Build in Learning and Continuous Improvement. 10. Build a Culture to Support Excellence and Relentless Improvement.
11. Adapt Technology to Fit your People and Process.
12. Align your Organization through Simple, Visual Communication.
13. Use Powerful Tools for Standardization and Organizational Learning.
What is it?DD SS
ALV-ER/Sep2008/General Presentation2008 - 21
Background/introduction at ALSWhy Lean Product Development Project?
* Added customer value and improved customer service * Improved planning and front loading gives better resource balance and less fire drill mode * Less administration, less waste -> more positive working climate* More time for innovation and new development * Increased projects efficiency and improved competitiveness
DD SS
ALV-ER/Sep2008/General Presentation2008 - 22
Expectations in TC area§ Efficiency improvement: 10% per year -> need cont improvements way
of work and culture
§ Create a Customer first / ”customer is king” mentality -> customer value
§ JIT culture in tasks in projects daily way of work, for all, including management!
§ Stay within the head-count forecast
§ Motivated and trained employees -> positive working climate
§ Higher flexibility -> adaptive to changes -> ”Think long term in daily actions”
§ Focus on continuous improvement & good standards
§ Improved planning (AFIS) & prioritization/decision making
DD SS
ALV-ER/Sep2008/General Presentation2008 - 24
Lean-PD / Muda-Muri-Mura
MURIOverloading
MUDAWaste!
MURAUnevenness
loading
DD SS
ALV-ER/Sep2008/General Presentation2008 - 25
APS – LPDS culture§ Tools + Principles + Leadership = PROGRESS!
Rating = 79Profitability
CompetitivnessSatisfaction
Just In Time Employee Involvement Quality First
Leveling 3 Safety / Ergonomy 2
Continuous Flow 2 Flexibility & Motiv. 2
Pull System 3 Discipline to Stds 2
Takt Time 4 Cont Improvement 4
Freq Deliveries 3 Process & Result 2
Line Concepts 2 Don't Blame /Judge 2
Team Work 5S Standards Muda Elimination T.P.M
Six Sigma
Quality Assurance
Quality Methods
Autoliv
APS Survey
APS Road Map
Lean PD Score card
Leadership training
KNOWLEDGE &
LEADER-SHIPEPIs
QCDSM indicators
OPI, EPI, etc
“The Vårgårda Way”“The Vårgårda Way”
PRINCIPLES
Questionarys& Surveys
DD SS
ALV-ER/Sep2008/General Presentation2008 - 26
VISION in APDS to follow the TPDS Philosophy,”fire drill mode” or
Liker Chapter 5:
Create a Leveled Product Development Process Flow
“Companies that continue to view the PD process in a traditional way; as uncontrollable series of discrete events that just will pop up, will always be on the defensive and be forced to deal with variability and capacity issues in a fire drill mode. Toyota never accepts variability problems as necessary nor uncontrollable.”
Source: The TPDS, Morgan Liker, page 81, Showed by Daniel Ahlström at Hallaberget 070816.
DD SS
ALV-ER/Sep2008/General Presentation2008 - 27
Summary from Liker chapter 17 & own thoughts;“Getting to culture change -> The heart of Lean PD”
§ Essentials to succeed with lean PD transformation:§ 1. More complex & less precise than manufacturing transformation§ 2. Cultural issues must be resolved to enable full success§ 3. Don’t reduce Lean methodologies to tools.§ 4. Leaders must be intensely involved & engaged§ 5. Leaders must understand the commitment & have patience
DD SS