CNH PowerPoint Template (PPT)

Report
Operations Management Overview
at CNH Saskatoon
10/15/13
Plant Information
Flexi-Coil Company History

The previous company, Flexi-Coil Ltd., was established in 1952.

During the 1990s Flexi-Coil became Canada's largest farm manufacturer.

Air Seeding and Tillage industry leader in North America and Australia. (air
carts, drills and coil packer)

New Holland purchased 35% of Flexi-Coil in 1997

1999 Merger of New Holland and CaseIH

The remaining shares of Flexi-Coil were acquired in January of 2000
Saskatoon Facility
PLANT
LAND
632,000 SQUARE FT
156 ACRES
58,700 SQUARE M
63 HECTARE
Headcount
Manufacturing
94 Salaried
723 Hourly
Total Saskatoon Site
817
Fabrication:113
West Plant: 218
East Plant: 236
Other:
156
No third party logistics
CNH SASKATOON INFORMATION
CNH Saskatoon Sales 2012 - $412M
CNH Projected Sales 2013 - $500M
2012 F3 Total Mfg Cost - $276,377
Inbound Freight
6%
Material
63%
Added Value
30%
New
Product/Projects
1%
Plant Summary – Supplier Distribution
Step 3 Activity with Local Suppliers
Saskatoon
Suppliers
$8,000,000
$6,000,000
$4,000,000
$2,000,000
0-20 Km
18%
2160 p/n
$0
Just In Sequence Complete
Just In Sequence In Process
8
Plant Layout
Planter, Header
Assembly Lines
East Powder
Paint Line
Planter and
Header Weld
Stalls
Fabrication
Equipment
West Powder
Paint Line
M66 Assembly
Tillage and Air
Seeder Weld
Stalls
Receiving /
Warehouse
Air Seeder line
Tillage Crating
and Component
Assembly
Fabrication Department
Fabrication is divided into two areas
• North Fabrication
• Torch and Machine
Types of Equipment:
• 8 Vertical Milling Machines
• 9 CNC Lathes
• 3 Lasers
• 6 Plasma Cutters
• 7 Punch Presses (110ton to 800ton)
• 7 Press Brakes
• 12 Saws (autosaws, CNC, and Large Saws)
Volumes
Product
2006 2007 2008 2009 2010 2011 2012 2013
Drawbars
287 180
Sprayers
285 245
Tillage
421 190
Seeding Tools 439 321
Grain Drills
99 22
Planters
585 623
Air Carts
763 684
Disk Harrows
921
Headers
2512 2947
Total
5391 6133
453
535
706
1061
101
1216
1762
1057
4865
11756
86
20
0 85 55
115 132 69
383 158 180 337 218
826 527 509 482 793
1809 1298 1623 2030 2085
1078 627 515 699 665
2641 2435 2406 2943 2490
6823 5065 5348 6708 6375
Product Line
Products
Planters
Air Carts
(17 models, 1 brand)
(4 models, 3 brands)
Hoe/Disk Drills
(4 models, 3 brands)
Products
Corn Heads
(2 models, 2 brands)
Pickup Heads
(2 models, 2 brands)
2011- 2013 New Product Launches
1265 Planter
16R30/18R20 Corn Header
580 Bu Air Cart
January 2013
April 2011
February 2011
Pickup Header
Pull-Type Sprayer
M66
January 2011
Dec 2011
January 2013
Plant Summary – Customer Distribution
Canada
21.9%
CIS
1.8%
China
2.6%
USA
70.6%
Africa
0.5%
S America
0.6%
Australia/NZ
2.0%
16
Plant Summary – Operational Complexity
MFG Parts: 34,833 Buy Parts: 9,883
Lines – 7
Planters
Headers
Cultivators
Disc Drills
6
8
3
4
33
34
40
42
346
60
108
60
Models – 50
TT – Technical type 348
Options - 1289
Air Systems
Sprayers
Drawbars
Air Drills
16
3
2
8
16
63
84
36
366
177
12
160
17
Operational Complexity - Scheduling
This is not a Production Schedule.
1
2
3
5
6
Jan
Feb
March
April
May
June
July
Prod
Week
Prod
Days
1301
1302
1303
1304
1305
1306
1307
1308
1309
1310
1311
1312
1313
1314
1315
1316
1317
1318
1319
1320
1321
1322
1323
1324
1325
1326
1327
1328
1329
1330
3
5
5
5
5
5
5
4
5
5
5
5
4
5
5
5
5
5
5
5
4
5
5
5
5
5
4
5
5
5
8
9
10
All Build Rates and Quantities are averages.
11
12
13
14
15
16
17
This is not a Production Schedule.
18
19
20
22
23
24
25
All Build Rates and Quantities are averages.
27 28
29
30
32
33 34
E1
E2
E3
E4
West
West
West
West - PT, 24RFF, 1260
Centre - 12/16 FF
East - Corn
North - Small Planter, Pick Up
Seeder & Sprayer
Tillage
SDX / Sprayer
S&OP 1306A
Month
7
Product Rate
24R30
24R30
36R30
36R30
36R30
36R30
36R30
36R30
36R30
36R30
36R30
36R30
36R30
24R30
24R30
24R30
24R30
24R30
24R30
24R30
24R30
24R30
24R30
24R30
PT/Split
PT/Split
PT/Split
PT/Split
PT/Split
PT/Split
5
5
1
2
2
2
2
2
2
2
2
2
2
1
4
4
4
4
4
4
4
4
4
4
1
4
5
5
5
5
Total
15
25
1
6
10
10
8
8
10
8
10
9
6
1
15
20
20
20
20
20
16
20
20
17
6
17
20
25
20
25
Run
Qty
Product
144 12/16R30
169 12/16R30
1 12/16R30
7 12/16R30
17 12/16R30
27 12/16R30
35 12/16R30
43 12/16R30
53 12/16R30
61 12/16R30
71 12/16R30
80 12/16R30
86 12/16R30
1 12/16R30
16 12/16R30
36 12/16R30
56 12/16R30
76 12/16R30
96 12/16R30
116 12/16R30
132 12/16R30
152 12/16R30
172 12/16R30
189 12/16R30
6 12/16R30
23 12/16R30
43 12/16R30
68 12/16R30
88 12/16R30
113 12/16R30
Rate
3
4
5
5
5
5
5
5
5
5
5
5
3
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
Total Run Qty Product Rate Total
9
20
25
25
25
25
25
20
25
25
25
25
12
10
10
10
10
10
10
10
8
10
10
10
10
10
8
10
10
10
488 508 533 558 583 608 633 653 678 703 728 753 765 Corn
10 Corn
20 Corn
30 Corn
40 Corn
50 Corn
60 Corn
70 Corn
78 Corn
88 Corn
98 Corn
108 Corn
118 Lg Corn
128 Lg Corn
136 Corn
146 Corn
156 Corn
166 Corn
2
6
10
10
10
10
10
10
10
10
10
10
4
4
10
10
10
10
8
30
50
50
50
50
50
50
40
50
50
50
20
20
40
50
50
50
Run
Product
Qty
Rate
Total
Stacker
Stacker
Stacker
Stacker
Rgd Trlg
Rgd Trlg
Rgd Trlg
Rgd Trlg
Rgd Trlg
Rgd Trlg
Pick Up
Pick Up
8 Pick Up
38 Pick Up
88 Pick Up
138 Pick Up
188 Pick Up
238 Pick Up
288 Pick Up
338 Pick Up
378 Pick Up
428 Pick Up
478 Pick Up
528 Pick Up
548 Pick Up
568 Pick Up
608 Pick Up
658 Pick Up
708 Pick Up
758 Pick Up
5
5
5
5
2
4
6
6
6
6
4
8
8
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
15
25
25
25
10
20
30
24
30
30
20
40
32
60
60
60
60
60
60
60
48
60
60
60
60
60
48
60
60
60
Run
Qty
201
226
251
276
10
30
60
84
114
144
20
60
92
152
212
272
332
392
452
512
560
620
680
740
800
860
908
968
1028
1088
Product
Rate
50Series Seeder
50Series Seeder
50Series Seeder
50Series Seeder
50Series Seeder
50Series Seeder
50Series Seeder
50Series Seeder
50Series Seeder
Sprayer
Sprayer
Sprayer
Sprayer
Sprayer
50Series Seeder
50Series Seeder
50Series Seeder
50Series Seeder
50Series Seeder
50Series Seeder
50Series Seeder
50Series Seeder
50Series Seeder
50Series Seeder
50Series Seeder
50Series Seeder
50Series Seeder
50Series Seeder
50Series Seeder
50Series Seeder
3
3
3
3
3
3
3
3
2.8
1
3.2
4
4
2.4
1
2.6
3
3
3
3
3
3
3
3.2
4
4
5
5
5
5
Total
9
15
15
15
15
15
15
12
14
5
16
20
16
12
5
13
15
15
15
15
12
15
15
16
20
20
20
25
25
25
Run
Qty
Product
9
24
39
54
69
84
99
111
125
5
21
41
57
69
5
18
33
48
63
78
90
105
120
136
156
176
196
221
246
271
ATX700/FC5500/P2060
ATX700/FC5500/P2060
ATX700/FC5500/P2060
5000HD/ATX400/P2050
5000HD/ATX400/P2050
5000HD/ATX400/P2050
5000HD/ATX400/P2050
5000HD/ATX400/P2050
5000HD/ATX400/P2050
ST820/ST830/PTX600
ST820/ST830/PTX600
ST820/ST830/PTX600
ST820/ST830/PTX600
5000HD/ATX400/P2050
5000HD/ATX400/P2050
5000HD/ATX400/P2050
5000HD/ATX400/P2050
5000HD/ATX400/P2050
ATX700/FC5500/P2060
ATX700/FC5500/P2060
ATX700/FC5500/P2060
ATX700/FC5500/P2060
ATX700/FC5500/P2060
ATX700/FC5500/P2060
ST820/ST830/PTX600
ST820/ST830/PTX600
ST820/ST830/PTX600
ST820/ST830/PTX600
ST820/ST830/PTX600
ST820/ST830/PTX600
Rate Total
Run
Qty
1.67
1.4
1.6
1.8
3
2.8
2.8
2
2.4
4.4
4.6
4.6
4
2.8
3
2.8
2.8
2.8
2
2
2
2
2.2
2
4.6
3.8
3.75
3.4
3.2
3.2
42
49
57
9
24
38
52
60
72
22
45
68
84
14
29
43
57
71
10
20
28
38
49
59
23
42
57
74
90
106
5
7
8
9
15
14
14
8
12
22
23
23
16
14
15
14
14
14
10
10
8
10
11
10
23
19
15
17
16
16
Product
Rate Total
P2080/P2085/PRD500/PRD500T
P2080/P2085/PRD500/PRD500T
P2080/P2085/PRD500/PRD500T
P2080/P2085/PRD500/PRD500T
P2080/P2085/PRD500/PRD500T
P2080/P2085/PRD500/PRD500T
P2080/P2085/PRD500/PRD500T
P2080/P2085/PRD500/PRD500T
P2080/P2085/PRD500/PRD500T
P2080/P2085/PRD500/PRD500T
P2080/P2085/PRD500/PRD500T
P2080/P2085/PRD500/PRD500T
1
1
1
1
1
1
1
1
1
1
1
0.8
P2080/P2085/PRD500/PRD500T
P2080/P2085/PRD500/PRD500T
P2080/P2085/PRD500/PRD500T
P2080/P2085/PRD500/PRD500T
P2080/P2085/PRD500/PRD500T
P2080/P2085/PRD500/PRD500T
P2080/P2085/PRD500/PRD500T
P2080/P2085/PRD500/PRD500T
P2080/P2085/PRD500/PRD500T
P2080/P2085/PRD500/PRD500T
P2080/P2085/PRD500/PRD500T
P2080/P2085/PRD500/PRD500T
P2080/P2085/PRD500/PRD500T
P2080/P2085/PRD500/PRD500T
M66 50/60
M66 50/60
M66 50/60
1
18
35
1
1
1
1.6
2.2
1.8
3.25
2.6
2.4
2
2
2
2
0.4
0.4
0.2
Run
Qty
3
5
5
5
5
5
5
4
5
5
5
4
23
28
33
38
43
48
53
57
62
67
72
76
5
5
5
8
11
9
13
13
12
10
10
10
8
2
2
1
5
10
15
20
28
39
48
61
74
86
96
106
116
124
2
4
5
5
PLANT METRICS
Plant KPI’s - Safety
KPI - Lost Time Injury Frequency
IFI
3 Million
Hours no
Lost Time
Injury
100%
Decrease in
LTI
Frequency
since 2008
1.5
1
0.5
0
2008
2009
2010
IFI
2011
Target
2012
2013
KPI – First Aid Injury Frequency
FACFI
20
Frequency
Frequency
2
74% Decrease
in First Aid
Frequency
since 2008
15
10
5
0
2008
2009
2010
First Aid
2011
2012
2013
Target
20
World Class Manufacturing
WCM audit May, 2013 – 54 points,
Number 1 CNH plant in NA
1st out of 30 CNH plants world wide
Why WCM Is Important to Saskatoon
 Considerable improvements to Plant KPI’s (Safety,
Shipping)
Quality, Productivity,
 Continue to empower employees (ESP, Employee Observation Form, Quick
Kaizen, Plant Wide Data Collection)
 Staying competitive globally requires constant growth and improvement
2011 Savings $5.6M
9.0% of Trans. Cost
2012 Savings $5.9M
9.2% of Trans. Cost
Motivation of Operators
Employee Suggestion Program
Motivation of
Operators
2,535
Suggestions YTD
61%
Implemented
WCM As A Way of Life In Saskatoon
2011
2012
2013
Annual Savings$5.6 M $5.9 M $4.6 M
% Trans. Cost 9.0%
9.2%
9.1%
Route Map to WCM
Route Map to WCM 2013
WCM Route MAP 2013
70
Saskatoon
60
60
61
62
62
Aug
Sep
Oct
Nov
Dec
3
4
3
2
2
2
3
3
3
4
3
4
3
2
2
3
3
3
3
4
3
4
3
2
3
3
3
3
3
4
3
4
3
2
3
3
3
3
3
4
3
4
3
3
3
3
3
3
3
4
3
4
3
3
3
3
3
3
3
4
3
3
3
3
3
3
3
3
2
3
3
3
3
3
3
3
3
3
2
3
3
3
3
3
3
3
3
3
2
3
3
3
3
3
3
3
3
3
2
3
3
4
3
3
3
3
3
3
2
3
3
4
3
3
3
3
3
3
2
3
3
4
3
3
3
3
3
3
2
3
57
28
29
58
29
29
59
30
29
60
31
29
61
31
30
62
32
30
62
32
30
56
57
58
59
Apr
May
Jun
Jul
3
4
3
2
2
2
2
3
2
3
3
4
3
2
2
2
2
3
2
3
3
4
3
2
2
2
2
3
3
3
3
4
3
2
2
2
2
3
3
4
3
3
2
3
3
2
3
2
2
3
3
3
2
3
3
3
3
3
2
3
3
3
3
3
3
3
3
3
2
3
3
3
3
3
3
3
3
3
2
3
52
26
26
54
26
28
55
26
29
56
27
29
50
52
52
54
Dec
Jan
Feb
Mar
2
3
3
2
2
2
2
3
2
3
3
4
3
2
2
2
2
3
2
3
3
4
3
2
2
2
2
3
2
3
3
3
2
3
3
2
3
2
2
3
3
3
2
3
3
2
3
2
2
3
52
26
26
55
50
40
30
20
10
0
Safety
Cost Deployment
Focused Improvement
Autonomous Activity
Professional Maintenance
Quality Control
Logistic / Customer Service
Early Equipment Management
People Development
Environment
Management Commitment
Clarity of Objectives - KPI
Route Map To WCM
Allocation of Higlhy Qualified People
Commitment of the Organization
Competence of Organization
Time and Budget
Level of Detail
Level of Expansion
Motivation of Operators
TOTAL
Technical
Managerial
50
24
26
WCM Evolution
•18 major projects initiated in WO/Log/AM/PM/QC/FI
•16 Fiat Experts from Mirafiori Plant arrived for 8 weeks
•Isvor Trainers were onsite for 4 weeks
•Saskatoon project champions consisted of
Supervisors/Manufacturing Engineers/Group Leads
Fiat Special
Action Plan
Feb. 2009
2008
WCM
Starts
Mar. 2008
2009
Materazzo
Audit
Aug. 2010
35 Points
2010
Yamashina
Audit
April 2009
14 Points
Mr. Emo
Audit
May 2011
41 Points
2011
Yamashina
Audit
Oct. 2010
37 Points
Mr. Risi
Audit
Nov 2012
50 Points
2012
Mr. Pino
Audit
Dec. 2011
44 Points
Mr. Orkun
Audit
May 2013
54 Points
27
Clarity of Objectives – KPI’s
Saskatoon
Plant:
SAF
"Lost Time" Injury Frequency Index
QUA
Overall OKOL
CQA
CQA
WCM
HR
WCM Road Map
Target
Act
#
Air Carts, Headers
Small Planter
Planters
(large)
Headers
current product
Target
Act
Target
Act
Target
Act
%
Audit
Target
Act
Target
Act
Target
Act
Absenteism
Suggestions per Employee
DEL
Linearity - MTD OKTS
Air Carts
Linearity - MTD OKTS
Corn Headers
Linearity - MTD OKTS
Planters
Parts Reliability - Number of pass
due FLT parts
Avg Missing Parts per Unit - Prod1
Avg Missing Parts per Unit - Prod2
Avg Missing Parts per Unit - Prod3
FIN
Planters
Direct Hours BTR
Target
Act
Act
Target
Act
Act
Target
Act
Act
Target
Act
Act
Act
Act
Target
Act
Target
Act
Mfg Hours Index
65.0
88.7
60.0
43.8
40.0
29.3
65.0
72.7
60.0
60.0
40.0
N/A
65.0
80.7
60.0
N/A
40.0
N/A
65.0
73.9
60.0
N/A
40.0
N/A
65.0
87.2
60.0
N/A
40.0
N/A
65.0
90.1
60.0
N/A
40.0
35.0
65.0
81.1
60.0
N/A
40.0
40.0
65.0
78.0
60.0
53.7
40.0
21.3
65.0
80.4
60.0
46.0
40.0
N/A
#
47
47
47
47
47
47
47
47
48
48
48
48
48
48
48
48
49
49
%
3.0
2.7
0.19
0.14
3.0
2.6
0.19
0.17
3.0
3.3
0.19
0.19
3.0
2.5
0.19
0.41
3.0
2.4
0.19
0.21
3.0
3.2
0.19
0.17
3.0
2.9
0.19
0.42
3.0
2.7
0.19
0.24
3.0
2.2
0.19
0.23
10
10
100%
0
0
34
34
100%
0
0
59
49
83%
0
0
84
77
92%
0
16
15
50
333%
1
0
55
82
149%
1
0
95
118
124%
1
1
137
142
104%
1
0
16
14
88%
4
26
650%
0
0
29
32
110%
33
57
173%
0
0
52
52
100%
63
77
122%
0
0
72
71
99%
93
123
132%
0
0
76
74
97%
99
130
131%
0
71
1
0
1
1
1
0
1
0
1
0
18458
15571
157.6
157.0
-2
1828
1221
32299
31165
27.2
30.5
18458
18399
157.6
153.9
-12
1828
1370
32299
30621
27.2
30.1
18458
18560
157.6
154.6
-9
1828
1560
32299
32200
27.2
27.9
18458
18560
157.6
150.0
-24
1828
2315
32299
31601
27.2
26.6
12822
12656
150.5
174.9
77
935
1395
31801
30691
26.8
26.4
16027
16400
150.5
150.0
-2
1168
1400
31801
31034
26.8
26.6
16027
17470
150.5
152.0
5
1168
1150
31801
31750
26.8
26.8
16027
17826
150.5
148.9
-5
1168
1017
31801
30515
26.8
26.1
16104
17599
145.7
145.5
-1
1097
1896
30081
30947
25.3
26.5
#
#
#
#
%
#
%
#
%
#
Total Mfg Inventory
Total Mfg Inventory Days
 Communicated weekly
 Tied to employee PLM
Clarity of Objectives
#
#
#
hrs
%
1 point of MI = $ 3.175
TOT Non Mfg Hours
9-Mar
16-Mar
23-Mar
30-Mar
6-Apr
13-Apr
20-Apr
27-Apr
4-May
Forecast1 Forecast1 Forecast1 Forecast1 Forecast1 Forecast1 Forecast1 Forecast1 Forecast1
March
March
March
March
April
April
April
April
May
W10
W11
W12
W13
W14
W15
W16
W17
W18
0.06
0.06
0.06
0.06
0.06
0.06
0.06
0.06
0.06
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Target hrs
Act
Target kUSD
Act
Target Days
Act
28
Clarity of Objectives – KPI’s
Objectives managed through central
Performance Management System
(EHRMS System)
Plant
Functional
Area
Salaried Employee
Hourly Employee
Clarity of Objectives
Example of Goal Alignment from Plant
Manager to the Hourly Employees:
Plant Manager’s Goals provide the foundation for
all other objectives. For 2012 they are:
-Cost (Productivity & Spending)
-Safety
Area
Manager’s Goals are derived from the Plant
-Quality
Manager’s goals. For 2012 they are:
-Delivery & Inventory
-Cost (Productivity & Spending)
-WCM
Production
Supervisor’s Goals are derived from
-Safety
the
Area
Manager’s
Goals and linked with their
-Quality
employee’s Goals:
-HR
-Spending
-WCM
Hourly
Employee’s Goals are derived from the
-Productivity
Success Share Targets set across all plants:
-Safety
-Spending
-Quality
-Productivity
-HR
-Safety
-WCM
-Quality
-WCM
29
Clarity of Objectives – KPI’s/Communication
Clarity of Objectives
Front Entrance Safety
Activity Boards
Departmental Boards
Pillar Display Boards
Kaizen Tracking Board
KPI Display Boards
30
WCM Tools Used
Some Of The MethodsTools Used So Far:
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
DOE
PPA
Regression Analysis
LCA
Kaizen (QK, SK, MK, AK)
NVAA Analysis
SOP / OPL’s
Spaghetti Diagram
Process Mapping
EWO
Herca’s
PFMEA
Poka Yoke
Video Analysis (WO/LOG/FI)
SMED
TWTTP/HERCA
Commitment of the
Organization
31
Headcount
1200
1000
117
99
800
92
94
89
600
88
95
Hourly
910
818
400
725
587
200
Salary
439
723
515
0
2007
2008
2009
2010
2011
2012
2013 YTD
Plant KPI’s - Safety
KPI - Lost Time Injury Frequency
IFI
3 Million
Hours no
Lost Time
Injury
100%
Decrease in
LTI
Frequency
since 2008
1.5
1
0.5
0
2008
2009
2010
IFI
2011
Target
2012
2013
KPI – First Aid Injury Frequency
FACFI
20
Frequency
Frequency
2
74% Decrease
in First Aid
Frequency
since 2008
15
10
5
0
2008
2009
2010
First Aid
2011
2012
2013
Target
33

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