Optimizing Process Performance

Optimizing Optimizing Process Process

PerformancePerformance

Carlos Eduardo DaSilvaCarlos Eduardo DaSilvaGlobal Quality Manager

Vibracoustic North AmericaA Division of Freudenberg-NOK General Partnership

Hannover Fair – Hannover, Germany – April 2009

Operational Excellence

http://www.managingautomation.com/leadership/index.html

The Freudenberg Group

The Freudenberg Group comprises 14 Business Groups and two divisions operating independently on various markets all over the world. Our actions are motivated by the search to find the best solutions for our customers, since our own success is based on theirs. This has been the case for the last 160 years and remains our pledge for the future.

We are therefore intensely committed to developing our ability for innovation in all fields even further.

As a family company, we are guided by our long-term orientation, financial solidity and the excellence of our people in 53 countries around the globe.


Optimizing Process [email protected]+1 (603) 361 8303

Organization

Parent Company Freudenberg & Co.

Seals and Vibration ControlTechnology Business Area

Business Groups

Freudenberg Seals and Vibration Control Technology Europe

Freudenberg-NOK GeneralPartnership

NOK-Freudenberg Group China

Vibracoustic (Europe)

Burgmann Industries

NonwovensBusiness Area

Business Groups

Freudenberg Nonwovens

Freudenberg Filtration Technologies

Freudenberg Politex Nonwovens

Household ProductsBusiness Area

Business Groups

Freudenberg Household Products

Specialties and OthersBusiness Area

Business Groups

Freudenberg Chemical Specialities

Freudenberg NOK Mechatronics

Freudenberg IT

Freudenberg New Technologies

DivisionsFreudenberg Service Support

Freudenberg Immobilien ManagementDichtomatik



Global Presence

Locations in 53 countries



Corporate Culture

People

Leadership Long Term Orientation

ResponsibilityInnovation

Value for Customers

The Guiding Principles are a short version of the Groups Business Principles, summarized for our employees around the world, our business partners and the public at large.

Guiding Principles





Safety

Safety Empowerment Through Team HarmonySafety Empowerment Through Team Harmony



7,000 employees$2.5 billion

Global Supply3,500 employees

$950 million

24,000 employees$3.5 billion

Communication

• Global Key Account Management

• Global Lead Center Structure

• Global Program Management

• Standardized Production Technology

• Cooperative R&D

• Employee Exchange

Business Group: Freudenberg-NOK



Our business model is based on leading edge Technology combined with the relentless pursuit of operational excellence through the Growtth® (Get Rid of Waste Through Team Harmony) continuous improvement program.




Headquarters: Plymouth, Michigan• Established July 1, 1989• General Partnership between Freudenberg of Germany and NOK of Japan• Integrates Japanese, German, and American Technology• 30 Locations in the AmericasDesigns and Manufactures:• Seals & Gaskets• Custom Molded Rubber Products• PTFE & Plastic Components• Anti Noise, Vibration & Harshness Products• Brake Hoses• Rebuild Kits




+Vibration Vibracoustic = Acoustic

We convert noise and vibration into sound and comfort.We convert noise and vibration into sound and comfort.

www.vibracoustic.com

Vibracoustic North America



Lean Thinking Case StudyAggressive Six Sigma ProgramSupply Chain & Outsourcing InitiativesProduct Development Best Practices Leader

Best Practices – World Class Processes



Narrow Product Mix Short Lead Time Minimal Waste; Low Cost Motivated, Trained, Empowered, Entrepreneurial, Employees Highly Predictable, High Performance Business and Manufacturing Processes

Characteristics

Continuous Improvement Culture Highly Responsive to Customers High Span of Control Product Team Organization Structure

Focused FactoryO

ffices and

Team

Ro

om

s

Dock

Ad

min

istration



Mold Sit SpringQC

Inspect

Ship

Trim SitSit

Sit QCInspect

Sit Pack

Spring Trim Mold

ShippingPackingQC

VisionSystem

From Conventional to Lean Manufacturing



Data transformed becomes information.

Information transformed becomes intelligence.

Intelligence transformed becomes competitive advantage.

Decision Based in Facts



TEAM BEHAVIOR

Management

INDIVIDUAL BEHAVIOR SKILLSINDIVIDUAL BEHAVIOR SKILLSINDIVIDUAL BEHAVIOR SKILLSINDIVIDUAL BEHAVIOR SKILLSEXECUTION

ATTITUDE COMPETENCEATTITUDE COMPETENCE

Assurance

ATTITUDE COMPETENCEATTITUDE COMPETENCE

Assurance

KNOWLEDGEKNOWLEDGEKNOWLEDGEKNOWLEDGE

Changing Behavior



PROCESSES

PROCESSES CO

NTR

OLS

CON

TRO

LS

PEOPLE

Key Concept



MANAGEMENT LEVEL

Product Assurance

ENGINEERING LEVEL

Quality Control

OPERATOR LEVEL

Business Management

Effectiveness Efficiency

KPC

KPP

KPI

KPP – Key Process Parameters / KPC – Key Product Characteristics / KPI – Key Performance Indicator

Key Metrics



Employees Participation in Kaizen Events 1993 to 2008

16707

3561 36714413 4747 4112 4739 5214 5738 5453

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

1993 -1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Year

Eve

nts

People ImprovementSince 1993, we reported over 75,000 times that people participated in continuous improvement activities



Kaizen Events at Freudenberg-NOK General Partnership 1993 to 2008

5349

14011823

2510 26652893

3538 3564

4178 3991

0

1000

2000

3000

4000

5000

6000

1993 -1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Year

Eve

nts

Process ImprovementOver 31,000 times in 16 years we improved processes, saving more than US $225 million between 2000 and 2006.



DDefineefine

MMeasureeasure

AAnalyzenalyze

IImprovemprove

CControlontrol

Predictive 6-Sigma is the DMAIC process withthe “Define” stage being the identification ofCC’s, SC’s and Process HIC’s.

Continuous Improvement through VariabilityReduction.

Definition of Quality Procedures and requirementsto control all “significant” sources of variation.

SPC and Control Charting. Quality Index SPC and Control Charting. Quality Index supported by a Stable and Insupported by a Stable and In--Control Process.Control Process.

Control Improvement

Certified Green Belts 482

Certified Black Belts 67

Green Belt Projects Completed 197

Black Belt Projects Completed 189



Production Preparation Process – 3P

A. Information Phase - Define Proposed State

B. Creative Phase - Kaizen

C. Redefine Phase - Define New Proposed State

Freudenberg-NOK team collecting data during the simulation of a future

production cell.

Example Before

AfterPeople 27 9Floor Space (sq. ft.) 3500 1100Distance Traveled >100 mi. 21 ft.Production Lead Time 21 Days 7 hrs.Mfg. Cost (indexed) 100 71Capital Cost (indexed) 100 57



1999

1992 1996 2000 2002 2003 2004 2005 2006

Q1 Preferred Quality Award

QS 9000 QS 9000 CertificationCertification

Golden Pull Award

Supplier AwardSupplier Award

1999

Preferred SupplierPreferred Supplier

ISO/TS 16949:2002 ISO/TS 16949:2002 CertificationCertification

2001 – 2002 - 2003Subaru - Isuzu

2004 - 2005

2004 - 2005 - 2006

Supplier Award

ISO 14001:2004 ISO 14001:2004 CertificationCertification

Gold PentastarAward

1997 - 1998

Vibracoustic Performance Recognition



Established in 1988 to promote an awareness of lean manufacturing concepts and to recognize companies that achieve world-class manufacturing status.

The Nobel prize of manufacturing is named for Japanese industrial engineer Shigeo Shingo, one of the world’s leading experts in improving manufacturing process.

He helped create the renowned Toyota Production System.

Dr. Shingo is the author of A Study of The Toyota Production System and The Shingo System for Continuous Improvement.

The Shingo Prize



6 Manufacturing Sites

•Manchester, NH Gaskets

•Manchester, NH Vibracoustics

•LaGrange, GA

•Cleveland, GA

•Shelbyville, IN

•Ligonier, IN VCT

Shingo Prize at Freudenberg-NOK



FOR ALL “FOR ALL “EFFECTEFFECT” WE CAN ” WE CAN TOGETHERTOGETHER FIND A FIND A CAUSECAUSE

Journey to Excellence



For converting from Batch to Lean

Lessons learned by Freudenberg-NOK during 16+ years of Lean Transformation

A few examples . . .

Secrets to Success



Top DownA champion at the top of the organization is critical to success.

• The champion sets the agenda for the organization.• The champion controls the resources.

• The champion (top executive) must be engaged in the transformation. Kaizen participation

• Team member• Report outs

• 20% of time in year one

The champion must understand lean well enough to lead the transformation unwaveringly.

Secrets to Success #1




Certification Process

Purpose:• Train internal experts – Black Belts• Train internal practitioners – Green Belts

Benefit:Systematic approach to educate and train both the internal expert and the rest of the organization in lean systems

Drive certification through policy deployment.

Make promotions conditional upon certification.




Quantify, Track, Report Improvements“You can improve what you measure.”

Some believe that because eliminating waste (implementing lean) is inherently the right thing to do, the results don’t need to be quantified. Freudenberg-NOK believes that waste costs money. If we are doing a good job of eliminating waste, we should save a lot of money. It’s about focus!

• Get the finance team to develop a method for converting lean improvements to $ saved.

• Involve the finance team in periodic reporting of results.

• Measuring lean improvements is inexact. Strive for a reasonable estimation of savings or benefits without creating bureaucracy.



• Quality Drives Market ShareQuality Drives Market Share

• GROWTTH Drives GrowthGROWTTH Drives Growth

• Technology Sets Us ApartTechnology Sets Us Apart

• Bureaucracy Is The EnemyBureaucracy Is The Enemy

• Communicate, Participate, CelebrateCommunicate, Participate, Celebrate

Business Imperatives



Questions?Questions?



Thank You!Thank You!Carlos Eduardo DaSilvaCarlos Eduardo DaSilvaGlobal Quality Manager

+ 1(603) 628 [email protected]

http://www.managingautomation.com/leadership/index.html

Documents

Optimizing Process Performance