Lindab Group. Operational Excellence & review Experience. Lean Practitioners Conference Coventry, Tomas Martinak

Transcription

1 Lindab Group Operational Excellence & review Experience Lean Practitioners Conference Coventry, Tomas Martinak

2 Lindab at a glance Net sales SEK 7,589 m 5,100 employees 32 countries 137 branches 24,000 customers Share of net sales Products & Solutions 89% Building Systems 11% Share of net sales per market Nordic 44 % CEE/CIS 19% Share of net sales Non-residential construction 80% Residential construction 20% Western Europe 33% Other Markets 4%

3 Products & Solutions Complete offering of solutions Indoor climate solutions Examples Ventilation products Examples Building solutions Examples Share of Group sales Share of Group sales Share of Group sales Fire & smoke Examples Air movement Examples Rainwater and building products Examples Share of Group sales Share of Group sales Share of Group sales Share of Group Sales

4 Always profitable Net Sales (SEK m) EBIT SEK m EBIT Net Sales

5 Building on our strengths Developing a strategy to reach our wanted position Simplifying is our passion, ultimate comfort is our vision Supported by Strategic Intiatives People Products Production and Processes Sales and Distributions Our Basics

6 Three financial targets supported by the strategy 5-8% 10% <2.5 Annual Growth Operating Margin Net debt/ebitda The targets stretch over a business cycle

7 Hoshin Kanri Strategy Deployment Safety Delivery / Lead time Productivity Quality Zero Defects Human Development Everyone trained in improvement Motivated to improve Empowered to improve

8 Operational Excellence Model lindab we simplify construction

9 review Study with Simpler review / rethink redevelop Vision & Strategy reflow resource Material Flow Improvement Make or Buy redesign Technical Product / Process Sales booster Value Stream Improvement Architecture & Infrastructur e Daily Improvement resolve Coach line managers in problem solving to consistently meet demand

10 review Study with Simpler Projects/Locations Value Streams Functions Cost Categories Lindab Profile plant in Förslöv, Sweden All businesses and buildings on main plant Receipt of customer order to cash All site material flows and key info flows Raw material flow including Lindab steel flow Direct headcount Indirect headcount All support functions on site Maintenance Planning and CS Logistic Engineering SG&A Finance HR Sales Direct/Indirect Labour/Interim All fixed/variable costs Capex Energy Total procurement costs: Transport / Logs Make v buy Cash focus on working capital: Raw / WIP / Finished Goods

11 review Study with Simpler Approach Interviews of key staff members including Senior Leaders, Production Management, HR, Quality, Industrial Engineering, Customer Services, Maintenance, Tooling, Finance and Sales Plant reviews conducted to evaluate current state and improvement opportunities in the value stream. Financial analysis Examined key documents and data (income statement, balance sheet, monthly reports, organizational charts, etc.) Developed an improvement hypothesis using observations and quantified waste in the current state analysis. Prioritized those opportunities and calculated the financial impact on the income statement and balance sheet. Produced a before/after P&L, proposed plant layout and summary report Lindab Förslöv Plant Layout

12 review Study with Simpler Opportunities Productivity: Over production, Extended lead times, Increased waiting times for machine & material, Low operator productivity Link production to consumption and level load Sequence production using Heijunka where appropriate Standard work with clear roles to takt times Introduce layout to maximize flow with model cells and promote multi-machine operation Reduce wastes and balance manual operations to takt time

13 review Study with Simpler Opportunities Planning: Multiple hand offs/interventions/duplication and changes. Pull flow system, Supermarket, Heijunka 1 point of intervention in production Implement Planning Cell (SO,CO,MO,planning and CS) flexible to Sales Order takt time

14 review Study with Simpler Opportunities Load Capacity Management: Daily production variation Some equipment overloaded others are under utilized Over Production Implement manufacturing model cells Pull Flow and levelling batch size reduction Flexible tooling

15 review Study with Simpler Opportunities Raw Materials Management: On stock raw material Over processing, slitting whole coils. Less initial stock, more VMI for Rain Line products VMI Pull Flow system

16 review Study with Simpler lindab we simplify construction

17 lindab we simplify construction review Study with Simpler EBITDA Evolution M SEK Cashflow Evolution M SEK BUDGET 2016 PRODUCTIVITY LOAD CAPACITY TRANSPORT NON QUALITY PACKAGING OTHERS P&L AFTER BUDGET 2016 RAW MATERIAL LOAD CAPACITY PAINTING MAINTENANCE PACKAGING OTHERS P&L AFTER 32M SEK EBITDA improvement 40M SEK Cashflow improvement Load capacity balancing Labour hour usage increase Material Management

18 Lindab Insights Wakeup call. Kicking in open doors. Good connection between opportunity and money. How to realize opportunity? Professional approach.