Electrolux Manufacturing System - Transforming info-board into digital interface Giuseppe Caiulo - Axiom Groupe
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Electrolux Manufacturing System Transforming info-board into digital interface Giuseppe Caiulo 11/7/2018
Who we are Electrolux shapes living for the better by reinventing taste, care and wellbeing experiences, making life more enjoyable and sustainable for millions of people. Founded in Sweden in 1919, we’re a global 122 billion SEK in sales 150 markets reached leader in appliances for households and professionals. Our main strategic drivers are to act sustainably, create better experiences and always improve! 60 million products 56,000 employees sold annually ELECTROLUX CORPORATE PRESENTATION 3
An offering for best-in-class consumer experiences Taste Care Wellbeing The offering includes cookers, hobs, The offering includes washing The offering includes vacuum ovens, hoods, microwave ovens, machines, tumble dryers and other cleaners, air conditioning refrigerators, freezers, dishwashers small appliances for fabric care, equipment, water heaters and small appliances. such as irons. and heat pumps. Electrolux is the only appliance company with a complete offering for consumers as well as for professional food, beverage and laundry service customers. ELECTROLUX CORPORATE PRESENTATION 4
2017 ELECTROLUX Geographical SALES presence and sales Sales by region Professional kitchen 30% 6% Air care, water care and laundry 6% 35% and services 11% 9% Floor care and small domestic appliances 6% Sales category Laundry 15% 17% Kitchen 60% 5% ELECTROLUX CORPORATE PRESENTATION 5
2017 ELECTROLUX FOOTPRINT FACTORIES EMA: 34 sites and 34.4 M Units produced PL-Swidnica HC&SDA: 4 sites and 21.7 M Units produced Ov FS MWO 1161 PL-Olawa Wm 1810 PL-Zarow Professional: 10 sites and 206 K Units produced Dw 1438 Best Poland Hood 320 D-Rothenburg Ov Ho Co MWO 2064 PL-Siewierz Dry 1100 UE –Ivano Wm 235 H-Nyíregyháza St Cloud Ref-Frz 603 Ref-Frz-Cfrz 866 I-Solaro RO-Satu Mare Dw 591 FS 916 Springfield FS 2219 I-Susegana H-Jászberény Memphis Ref-Frz-Cfrz 1210 Kinston Ref-Frz 829 Ov FS 286 Dw 1300 I-Porcia Wm 951 Hangzhou Juarez (2) Ho 353 Best Italy Wm 739 Anderson I-Forli Hood 60 Ref-Frz-Cfrz 2034 Ov-Ho 1590 Ref-FRz 1382 Egypt (3) Rayong Ref 136 KWIKOT Wm 760 Manaus FS Cookers 101 Water Heater 336 MWO 1075 São Carlos Wm 175 Ref-Frz 441 AC 713 FS 829 WH 739 Wm 1696 Santiago FS Ov Ho 292 Adelaide Ref 145 Ov FS 311 Wm 288 Rosario Curitiba Wm 63 Ref-Frz-Cfrz 1809 Ref 439 FS Cookers 30 *closed during 2017 Bubble size indicates approx production volume in units 6
Electrolux Manufacturing System Global program to achieve operational and cultural excellence. ‘How we do things’ within Electrolux manufacturing. Internally developed best practice principles and tools to leverage the talent of the whole team. Our way to excellence! EMS allows: Gaining advantage of group scale through standardization Leveraging the talent and innovation of each team member Obtaining world class employee safety, cost, working capital and customer delivery Driving our value proposition through product quality Creating ‘One Electrolux’ Support our Purpose: Shape leaving for the better 7
EMS Way: Our Management System EMS Principles Visual Factory is fundamental to: • Clearly communicate strategy • Facilitate alignment • Engage everyone 10 ©2018 Electrolux All rights reserved
Business Plan Deployment Business Plan Deployment uses a structured methodology to align the organisation to reach goals and manage change. Goals Objectives and Targets Methods Control Items 11 ©2018 Electrolux All rights reserved
BPD Board Owner Support Business Plan Deployment Plant Responsibility Policy ◎ / Routine Cross Functional (Y/N) Category Objectives Target Timing Method Control Item Growth Profit 110% 105% 100% 95% 90% 85% DSA 80% Target 75% 70% 65% 60% 55% 50% JAN FEBR MÁRC ÁPR MÁJ JÚN JÚL AUG SZEPT OKT NOV DEC DSA 80% 84% 88% 97% Target 96% 96% 97% 97% 97% 97% 97% 97% 98% 98% 98% 98% COMPANY MGR COORDINATOR ISSUER PART NAME PROBLEM FOLLOW UP SHEET PART NUMBER NO. PROBLEMS COUNTERMEASURE FOLLOW-UP RESULT DATE CAUSE Person Progress Item Sketch Action Responsible Date Result Date ORIGINATOR COUNTERMEASURE PROPOSED COUNTERMEASURE AGREED PROBLEM SOLVED PROBLEM DOES NOT OCCUR AGAIN 12 ©2018 Electrolux All rights reserved
Multilevel BPD boards L1 PLANT L2 AREA Assembly Tecnological Quality Engineering Supply chain Controlling Plant Manager Area Managers L3 Team Leaders Team Members TEAM 13 ©2018 Electrolux All rights reserved
EMS Award 14 ©2018 Electrolux All rights reserved
Challenge & Needs > 4000 ACTIONS per year ! EMS improvement processes • Easy to loose control of situation • Need repeated calls for update • Lack of prioritization • Delay in response • Lost opportunities and people disengagement/frustration • Always individual action plans, no integration, no system coordination • No way to have a real time overview of status of improvement activities unless visiting each team and manually consolidate info 15
Digital technology can help us ! Networking? Keeping alignment? Manual updates? 16
Digital EMS Digital Action Tracking Digital Improvement Digital Boards and instant notification Problem solving EMS Way Suggest & win BPD Digital Auditing Digital reporting Digital Team Meeting 5S SOP 5D Leader Check 17
Digital EMS Digital Action Tracking One single platform where we have: and instant notification • All improvement actions, any type, originated from any source (Audits, CIP,PS, EMS Way) with : Instant messaging on progress status Real time overview at a glance of progress of activities at team, Area, Plant Level Actions automatically inserted in users TODO lists Automatic reminders sent to actions responsible before due date is expiring • Possibility to measure improvements lead-time and level of employee engagement More improvements, more control, more transparency, faster process 18
Digital EMS One single platform where we have: Digital Auditing • All type of audits, with possibility to see summary results and detail audit cards • Possibility to connect to each audit the relative 5S SOP improvement actions 5D Leader Check • Audits are automatically shared with all involved people (no need to send mails) • Audits can be performed on tablet or smartphones, eliminating paper • Audit form which are immediately containing pictures More control, more transparency, faster process, less non value added time 19
Digital EMS One single platform with: • All structured improvement (Problem Solving, EMS Digital Improvement Way, CIP workshop, Before/after, Suggest&Win…) Problem solving • Real time update of project team members • Real time possible control of improvements and EMS Way Suggest & win their status BPD • Possibility to share solutions and results among users • Stronger BPD process More control, more transparency, faster process, less non value added time, more time to do improvement. 20
Digital EMS Digital Boards One single platform where we have • All KPI and charts supporting Digital Team Info Board and KPI: • KPI • Audit • Improvement • Actions tracking Audit Board • Reporting Improvement Board • Communication • Everything real time updated, nothing to print or to e-mail Open Actions Board Reporting All this is not possible with traditional board, where all info are on paper 21
Team Info Board: from 2D to 3D or more Before After Front KPI Board Audit Board Back Open Actions Board Improvement Board In principle no limit to number of boards 22
Digital EMS Digital Team Meeting • Having all info managed in one single platform • Team Leaders can • Have all info at finger print • Full possibility to choose what to display in limited time • Use the screen to present defects or to share completion of an improvement activity • Use the screen to show some relevant info to the team about some initiatives All these is possible only with a digital board 10x communication impact! 23
Project benefits • Totally in line with «Paperless factory» concept • Supporting Digital Auditing • One single platform, accessible by pc/smartphone/tablet, where we have: a. All improvement actions, b. All type of audits, • Connecting people across the organization through automatic info & update sharing • Manager easily understanding where they need to focus their attention on coaching • Project managed to be 1 Global platform: we have only one Electrolux cloud space 24
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