General Manager Roundtable Lean Production

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1 Lean Production 1

2 No. Time Topic Participants description Tuesday, 1 08:30 09: :00 09: :10 09: :40 10: :30 11: :30 12:00 Arrival, Registration, Networking Welcome and program of the day Miele/Hong Da intro and Lean Experience in Hong Da Experience exchange and open discussion Factory tour with some lean examples Feedback and discussion AHK-members AHK-Team Mr. S. S. Teo Mr. B. Altemeier coffee, tea Moderator AHK Company introduction MWS-system practical challenges Moderator AHK Organised by Hong Da tbd Moderator AHK 2

3 Agenda Introduction Miele & Cie. KG Introduction Hong Da China Company Ltd. Introduction MWS General informations Implemantation at HongDa experiences 3

4 Agenda Introduction Miele & Cie. KG Introduction Hong Da China Company Ltd. Introduction MWS General informations Implemantation at HongDa experiences 4

5 Miele Business Unit: Household Appliances Miele 2012: 16,000 employees (10,000 Germany) Turnover > 3 Bill EUR daily production rates (units)

6 Miele: from milk separator to high tech appliances Gütersloh: Headquarters and factories 6

7 2009: Hong Da integration into Miele & Cie. KG Warendorf Oelde Lehrte Bünde Bielefeld Gütersloh Arnsberg Euskirchen Unicov (CZ) 7 Bürmoos (A) In red: Miele world representations Brasov (RU) 7

8 Agenda Introduction Miele & Cie. KG Introduction Hong Da China Company Ltd. Introduction MWS General informations Implemantation at HongDa experiences 8

9 History of Hong Da and backgrounds 宏達中國有限公司 Hong Da China Co Ltd Phase out production range S2xx (1997) S1xx (2002) S3xx (2004) S7xx (2005) S4 (2009) S5 (2012) 1978 foundation in Hong Kong (Melitta) 1991 production moved to China workforce structure of Hong Da (total: 383 employee, as at ) Joint Venture Miele/Melitta 100% owned by Miele since worker 69 staff 12 exp. Staff 371 expatriates local worker and staff* 2011 movement to the new factory in QiShi 9

10 General overview of the new factory Dongguan Worker dormitory Block B Staff dormitory Canteen Worker dormitory Staff dormitory canteen Block A Finished goods Block C assembly area Block B From Design To Reality Plastic shop Block A Shop-in-shop partner Office building 1 st step: warehouse 2 nd step: fan-/cable-reel production warehouse Officebuilding Block C incoming zone Block A Shop in shop partner Block B Molding / Tooling / Cable reels + Fans / Whse Block C Assay lines / Whse / Laboratory

11 Agenda Introduction Miele & Cie. KG Introduction Hong Da China Company Ltd. Introduction MWS General informations Implementation at HongDa experiences 11

12 The structure of the Miele Erfolgssystem (MES) Customer Miele ErfolgsSystem (MES) Strategic orientation Miele Product Development System IMNU 2.0 Miele Wert- schöpfungs- System (MWS) MWS Miele Quality Management System Q-Core Strategic planning Employees Processes 12 12

13 Structure and content of MWS principles Wertschöpfungs ssystem Transparency Stability Synchronicity Productivity Flexibility Status of process steps is always immediately recognisable Processes deliver the required quality and are impervious to faults Process stages interact without stockpiling of work in progress and without downtimes Optimum use of resources (personnel, capital, material, energy, time ) Fast response to fluctuations in demand and to product mix Miele- Wertschöpfungssystem MWS coordination 13 13

14 Structure and content of MWS modules Principles Transparency Stability Synchronicity Productivity Flexibility Orderliness and cleanliness High uptime of plant and equipment Value stream design Waste-free processes Flexible deployment of staff Labelling of areas and surfaces High availability of third-party components Levelled production Separation of value creation and logistics Volume flexibility Modules MWS targets and key performance indicators Process capability Just in time Time-and-motion planning Stock-keeping unit flexibility Visualised information Reliable human resource capacity Concurrent shift models Appropriate automation Flexibility within international production network Miele- Wertschöpfungssystem MWS coordination 14 14

15 Agenda Introduction Miele & Cie. KG Introduction Hong Da China Company Ltd. Introduction MWS General informations Implementation at HongDa experiences 15

16 status of MWS-implementation in Hong Da self evaluation transparency 10 Hong Da 2008 Hong Da 2012 flexibility stability productivity synchronity 16

17 status of implementation in Hong Da MWS-key activities in production (1) activity description photos Assembly area optimisation Internal and external logistic optimisation stabilisation of assembly lines MTM-rollout in subassembly areas Flexible usage of resources with new layout standardized processes in indirect areas Elimination of waste and working inefficiency (workload/workforce) Reduction of inventory and space Integration of new models in warehouse structure 17

18 status of implementation in Hong Da MWS-key activities in production (2) activity description photos Plastic shop technology roadmap stability in machine and equipment refurbishment and maintenance concept of molds productivity gain with work organisation automation rollout SMED in Plastic shop and assembly area introduction of GEFF as a KPI to measure the machine idle time continous set-up workshops in assembly line and plastic shop to reduce downtime standardised and transparent set-up process description 18

19 Agenda Introduction Miele & Cie. KG Introduction Hong Da China Company Ltd. Introduction MWS General informations Implementation at HongDa experiences 19

20 Development of related KPI`s days Sep 2008 Nov 2008 Jan 2009 Mrz 2009 Mai 2009 inventory turnover (days) Jul 2009 Sep 2009 Nov 2009 Jan 2010 Mrz 2010 Mai 2010 Jul 2010 Sep 2010 Nov 2010 Jan 2011 Mrz 2011 Mai 2011 Jul 2011 Sep 2011 Nov 2011 Jan 2012 Mrz 2012 Mai 2012 Jul 2012 Sep 2012 reduction of inventory FTE development of total worker in assembly area may jun jul aug sep oct FTE direct FTE indirect productivity improvement Cost of Poor Quality (Unit:HKD) Y2009 Y2010 Y2011 Y2012 Write Off Freight Compensation Sorting Rework Scrap Quality improvement 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 48% 38% 83% 87% 97% 83% 90% 90% 86% 85% 92% 92% 78% Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec YTD In Time Delay 88% high delivery performance 20

21 Challenges and experiences in the implementation of lean principles doing the right things at the right time! Go-and-See is better than rely on reports IE/PM detailed knowledge of processes is necessary to convince the colleagues doing is better than long planning and analysation phase! direct training of line-leader/supervisor and worker is very important high fluctuation in China have to be considered in lean solutions cultural differences should be in mind, but not guide your daily work 21

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