MAGNA Seating doo. 1 st KAIZEN CONGRESS, BELGRADE. Marko Terzić, Continuous Improvement Manager

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1 MAGNA Seating doo 1 st KAIZEN CONGRESS, BELGRADE Marko Terzić, Continuous Improvement Manager

2 Global Presence NORTH AMERICA 138 Manufacturing / Assembly EUROPE 117 Manufacturing / Assembly 25 Engineering / Product Development / Sales 50 Engineering / Product Development / Sales 75,750 Employees 59,250 Employees SOUTH AMERICA 13 Manufacturing / Assembly ASIA 59 Manufacturing / Assembly 2 Engineering / Product Development / Sales 23 Engineering / Product Development / Sales 3,500 Employees 22,775 Employees ~161,000 Employees 29 Countries 58 OEM Customers 327 Manufacturing 100 Eng / Product Dev / Sales $36.4 Billion (2016 Sales) Magna Seating Marko Terzić 2

3 Product Systems SEATING EXTERIORS CLOSURES VISION SYSTEMS ROOF SYSTEMS Capabilities complete seating systems seat structures, mechanism & hardware solutions specialty mechanism solutions foam & trim products design & development capabilities Capabilities fascia & trim liftgate & exterior modules front end modules active aerodynamics lightweight composites Capabilities latching systems door modules window systems power closure systems handle assemblies electronics engineered glass hinges wire forming sealing & trim running boards roof racks composite products Capabilities interior mirrors exterior mirrors actuators door handles headlamps tail lamps small lighting Capabilities soft tops retractable hard tops textile folding roofs modular roofs Global Footprint 23,825 employees 52 mfg/assy facilities* 9 product development/ engineering/ sales centers Global Footprint 20,400 employees 58 mfg/assy facilities* 13 product development/ engineering/ sales centers Global Footprint 13,300 employees 41 mfg/assy facilities* 10 product development/ engineering/ sales centers* Global Footprint 9,650 employees 27 mfg/assy facilities 8 product development/ engineering/ sales centers Global Footprint 2,050 employees 6 mfg/assy facilities 4 product development/ engineering/ sales centers *including In Progress Facilities *including Minority JVs *including Minority JVs Magna Seating Marko Terzić 3

4 Product Systems BODY & CHASSIS POWERTRAIN ELECTRONICS VEHICLE ENG & CONTRACT MFG FUEL SYSTEMS Capabilities body systems chassis systems technology, engineering & tooling systems Capabilities GETRAG transmissions driveline systems fluid pressure & controls metal-forming solutions advanced engineering Capabilities automated driving systems secure connectivity electrification Capabilities engineering services from systems and modules to complete vehicle development contract manufacturing world class flexible solutions from niche to volume production fuel systems energy storage systems made of steel, plastic and aluminum Global Footprint 44,450 employees 93 mfg/assy facilities* 21 product development/ engineering/ sales centers Global Footprint 32,275 employees 54 mfg/assy facilities 30 product development/ engineering/ sales centers Global Footprint 1,925 employees 6 mfg/assy facilities 11 product development/ engineering/ sales centers Global Footprint 11,700 employees 16 mfg/assy facilities 29 product development/ engineering/ sales centers * including Minority JVs & In Progress Facilities Magna Seating Marko Terzić 4

5 Global Presence 2016 SALES $36.4 Billion MANUFACTURING EMPLOYEES 161,000 MARKET POSITION 327 #1North America global sites #3 Globally Magna Seating Marko Terzić 5

6 Magna Seating Global Presence North America 12, Europe 4, JIT Seating 11 Recliners 2 Adjusters 1 Structures 3 Trim 3 Foam + Blending fac. 6 New JIT Facility 1 JIT Seating 11 Structures 1 Trim 4 New JIT Facility South America 1, Asia 1,056 JIT Seating 5 Recliners 2 Adjusters 2 Structures 7 New JIT Facility 8 JIT Seating 3 Structures 3 Trim 2 Foam 2 Seating ~23,000 People 17 Countries 50* 15 * Includes New JIT Facilities Manufacturing / Assembly Engineering / Product Development / Sales / R&D Centers Number of Employees Magna Seating Marko Terzić 6

7 Magna Seating Odžaci About Foundation of MAGNA ODŽACI TRIM PLANT : April 2012 Start of production : October 2013 Space (Production) : m 2 (7.143m 2) ), from extension in No. of employees : 1288 (September 2017) Projects Products Cutting and sewing of covers for premium passenger cars and light commercial vehicles Capabilities Trim covers production (cutting & sewing) Technology CNC Cutting fabric, vinyl, sponge Standard sewing machines Side Airbag machines Multi needle machines Certified ISO/TS ISO EMS ISO OHSAS Magna Seating Marko Terzić 7

8 MAGNA Lean concept MAFACT - Magna Factory Concept Magna Seating Marko Terzić 8

9 MAFACT - Introduction Mafact = Magna Factory Concept The purpose of Mafact is to create a common, but unique factory concept for all Magna Divisions globally, where common operating principles are employed to achieve our goal to be world class manufacturers. This will enable us to satisfy our Customers, to generate healthy profit margins and to provide employees with a better place to work. Mafact makes use of continuous improvement in all our processes to eliminate the 7 types of waste. This is accomplished through the efforts of dedicated teams of capable individuals that are supported by our Leadership teams Magna Seating Marko Terzić 9

10 MAFACT - Introduction All of our Divisions must reflect the same World Class image and performance to our Customers, Employees and Shareholders. As a minimum, this means that each plant should reflect clean, organized work areas, with good visual controls at all times. Production targets should be visual with ongoing monitoring of outputs to targets. People should be well-trained in their responsibilities and in charge of the operation, performing work in a standardized way and everything from product development through purchased components, to the shipping of finished product, should be well controlled. In essence, each plant should have similar systems in place in order to achieve this Magna Seating Marko Terzić 10

11 8 Pillars WCM H&S / Environmental Quality Manufacturing Excellence Logistics Design Engineering / APQP Management Cost Human Resources MAFACT Magna Seating Marko Terzić 11

12 What Mafact Covers Expectations MAFACT Pillars Objectives Tools and Methods Customer Satisfaction Quality Efficiency On-Time-Delivery Simultaneous Engineering People Development Sensible Investments Reliability Health & Safety / Environmental Quality Manufacturing Excellence Logistics Design Engineering / APQP Management Cost Human Resources Safe Workplace Cleanliness and Organization Ergonomics Environmental Awareness & Compliance Preventive Quality Management Effective Problem Solving Scrap Reduction Supplier Management Warranty Reduction Reduction of Waste Standardized Work / Consistent Set-Ups Line Balancing Qualified Employees Efficient Processes Effective Maintenance Continues Improvement Good Material Flow Material Identification Optimal Stock Rotation Optimized Inventory Management Production Scheduling Controlling Changes Keeping Records Up-to-Date Planning for Product & Process Design Meet Business Plan Targets Controlling Critical KPI Establish Communications & Reporting Top Management Involvement Openness to Ideas and Suggestions Controlling Cost Tracking Cost Savings Qualified Employees Motivated Employees Good Communication & Information Employee Leadership Balance Employee Involvement Safety Mindset Personal Protective Equipment 5S Methods Visualization and Identification Ergo Risk Assessments and Actions Environmental Systems Incident / PPM Tracking (KPI) Zero Defect / Fast Response Board A3 Problem Solving Methodology, Quality Tools and Six Sigma Scrap Monitoring (KPI) Supplier Incident / PPM Tracking (KPI) Warranty & Cost Monitoring (KPI) 7 Types Of Waste Standardized Work Recording / Combination Table and Chart Line Leveling On the Job Training in Production Processes & Problem Solving TPM OEE Ongoing Continues Improvement & Problem Solving Material Movement Quantities and Frequencies Labeling and FIFO Min/Max Inventory Levels / Supermarkets Line Supply Pull System / Kanban DFSS FMEA Effective Project Management Lessons Learned / Benchmarking Effective Change Management Record Keeping Business Planning KPI Monitoring & Actions Contol & Information Boards Daily Operations Meetings Process Audits MAFACT Approach Bill Of Material Reviews MCRP Cost Of Quality KPI Monitoring Purchasing / Engineering / Continues Improvement Cost Savings KPI Recruiting Process Training for all Employees Employee Performance Appraisals / Employee Opinion Surveys Employee Information Systems Leadership Methods Employee Involvement / Reward and Recognition Results Safety Quality Timing Cost Motivation Magna Seating Marko Terzić 12

13 Magna Industry Initiatives World Class Manufacturing as one of Magna s Top 3 Initiatives Magna implemented the Global Initiative Agenda 2025 High Level Management involvement Grouped by Functionality (JIT, Trim, Metals, ) Working Levels with individual Tasks Magna Seating in liaison with by Magna Steyr regards Smart Factory Magna Seating Marko Terzić 13

14 Magna Industry Current Status Product Design and Development CAD Testing Simulation Process Design and Development Design Verification Assembly Simulation PT 3D Printing. Product and Process Validation Packaging Simulation Mat. Flow Simulation Simulation Process Simulation 3D Printing Equipment Simulation Ergonomic Simulation Serial Production Forecast Simulation Process Simulation Robotics Vision Systems 3D Printing Magna Seating Marko Terzić 14

15 MAGNA ODŽACI Continuous Improvement Magna Seating Marko Terzić 15

16 7 Types of Waste Waste is anything in the process that is non value added (ie what the customer doesn t pay for). Walking, moving parts, unpacking, reworking, waiting, correcting, scanning. In general, lean mfg identifies 7 types of waste (plus 1). State some examples of value added, non value added work and waste! Magna Seating Marko Terzić 16

17 TOP KAIZENS BROKEN SEAM Critical X 1 Critical X 2 Critical X 3 Critical X Magna Seating Marko Terzić 17

18 TOP KAIZENS PRODUCTION BACKLOG Critical X 1 Critical X 2 Problem: Production backlog Critical X 3 Critical X Magna Seating Marko Terzić 18

19 TOP KAIZENS INVENTORY DISCREPANCIES Critical X 1 Problem: Inventory discrepancies Magna Seating Marko Terzić 19

20 Magna Seating Marko Terzić 20