Kaizen Congress Presentation

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1 Kaizen Congress Presentation Customer Value through Innovation

2 Disclaimer This document contains confidential and proprietary information owned by NORMA Group. Any disclosure, use, copying or distribution of this information without the express written consent of NORMA Group ist strictly prohibited.

3 NORMA Group key facts Global market and technology leader in joining technology Listed on the Frankfurt stock exchange since 2011 and included in the MDAX index since 2013 Headquarters in Maintal near Frankfurt/Main, Germany Sales of about EUR 900 million in 2016 Numerous sales and distribution sites across Europe, the Americas and Asia-Pacific Operates a global network of more than 25 manufacturing facilities Employees > 6,700 worldwide Delivers to more than 10,000 customers in 100 countries Offers more than 35,000 innovative joining solutions in three product categories: Clamp, Connect, Fluid NORMA GROUP SE. All rights reserved. 28/9/2017

4 Global presence > 30 locations Americas Brazil Mexico USA Europe, Middle East, Africa (EMEA) Czech Rep. Russia France Serbia Germany Spain Italy Sweden Netherlands Switzerland Poland Turkey Portugal UK Asia Pacific (APAC) Australia China India Indonesia Japan Malaysia Singapore South Korea Thailand NORMA GROUP SE. All rights reserved. 28/9/2017

5 Product categories CONNECT CLAMP DRAIN FIX FLOW CONTROL FLUID QUICK PLAST NORMA GROUP SE. All rights reserved. 28/9/2017

6 Connecting everything, everywhere EXAMPLES OF NORMA GROUP S KEY END-MARKETS Construction equipment Infrastructure & Water Management Shipbuilding Aviation Commercial vehicles Engines Passenger vehicles White goods Railways Pharma & Biotech Agricultural equipment Wholesalers NORMA GROUP SE. All rights reserved. 28/9/2017

7 NORMA Serbia, Subotica Focus of operation FLUID systems: urea and fuel transportation, tank ventilation, oil cooling system Quick Connectors Production processes Extrusion, injection molding Area Production 9,000 m² Storage 3,000 m² Personnel (direct & indirect) Total 971 Production 771 Awards and Certifications OHSAS ISO/TS ISO 9001,14001 Products: CVS FTS OTS TOC UTS CWS TVS UFS Quick connectors UTS NORMA GROUP SE. All rights reserved. 28/9/2017

8 8 Production processes Extrusion Injection Molding Oven Thermoforming QC Production NEW PROCESSES: Extrusion Multilayer Steam Thermoforming Flex Assembly UREA Assembly UREA HT Assembly 28 th of July Ruben Chaidez- Lean Plant Layout Bootcamp NORMA Serbia NORMA GROUP SE. All rights reserved.

9 Plant layout NORMA GROUP SE. All rights reserved.

10 More Gemba NORMA Production System, NPS Definition: Define process, Reduce waste and Drive results Without Leadership kaizen will not sustain Develop our Leaders, Teams and Associates Leadership Observe the Real thing Get the Real facts Trust the kaizen process Lean Improve QSIDCP forever Growth Accelerate our Organic Growth Less Muda Daily Management Is About Making not Reporting The News Learn and Adjust, be competitive

11 OCT= 1 second D/R = 1 second C/O 1 hour REJ = 3% U/T = 85% 27,600 sec. avail. EPE = 2 weeks OCT= 39 sec D/R = 39 sec C/O 10 min REJ = 4% U/T= 100% 2 Shifts 27, 600 sec Avail. OCT = 46 sec D/R = 46 sec C/O 10 min REJ = 5% U/T = 80% 2 Shifts 27,600 sec. Avail. D/R = 62 sec C/O 0 REJ = 6% U/T =100% 2 Shifts 27, 600 sec. Avail. OCT = 40 sec D/R = 40 sec C/O 0 REJ = 7% U/T = 100% 2 Shifts 27,600 sec. Avail. 18,400 pcs/mo -12,000 L -6,400 R Tray = 20 pcs 2 Shifts 1x daily Lead Time= 23.6 days Process Time= 188 sec NORMA Production System With NPS fundamentals : Problem Is Noticed Problem Corrected Customer Generate ECR No Manufacturing Engineering Group Analyzes ECR Assign Valid Yes Drafting ECR? Resource Approved? Cross Functional ECO/ECR Meeting Generate Changes Bring ECO to Meeting Yes Drafting No Implement ECO ECO Coordinator Voice of the Customer (VOC) Transactional Process Improvement (TPI) 5S Ferrous Metals Co. 500 ft coils 6-week Forecast Weekly fax Production MRP Control 90/60/30 day Forecasts Daily Order Manchester Avenue Tues & Thurs Weekly Schedule TT = 60 sec. Daily Ship Schedule Shipping I Coils 5 days Stamp 200 t I 4600 L 2400 R Machine 1 I Weld L 1600 L 600 R 850 R OCT = 62 sec I Sub-Assembly I 1200 L 640 R Assembly 1 I Staging 2700 L 1440 R Highland Manufacturing Sheet Metal Housings Current State (Date) 5 days 7.6 days 1.8 days 2.7 days 2 days 4.5 days 1 sec. 39 sec. 46 sec. 62 sec. 40 sec. 3/14/2002 Standard Work/Flow Daily Management/ Visual Management Value Stream Mapping KANBAN SMED Kaizen Event Basics Problem Solving Process Policy Deployment

12 NPS overview GROWTH Growth Lean LEAN LEADERSHIP Leadership Dream Develop Deliver Reliability Transactional Operations Business Process Leadership Development Associate Development Voice of the Customer Project Management NORMA Reliability System Transactional Process Improvement 5S & Visual Management Policy Deployment NPS Immersion Introduction to NPS DIVE Lean Logistic Value Steam Mapping Daily Management KAMISHIBAI Training & Facilitation (TFTI) DF-X Assembly/Manufacturing Poka Yoke Standard Work Problem Solving Process KAIZEN board Kaizen Event Basics D-FMEA P-FMEA Value Analysis/ Value Engineering Set-up Reduction/ SMED Lean Assessment Presidents KAIZEN QSB Scrap marketplace KANBAN NPS Tool Certification (MBB) Measurement System Analysis NPS Leadership Total Productive Manufacturing Insight Discovery MSA Gauge R&R What s unique about NPS tools / processes? > Integrated and improved over time > Smart usage...pick for highest impact > Velocity of implementation > Commitment to use...everybody s job > Shared across NORMA sites > Improvement through training / training through improvement Lean Plant layout and factory standards

13 NBS overview Systems and Processes are the essential building blocks of our company! Every facet of our business at GEMBA, in the warehouse or in the office is part of our system that can be managed or improved by applying correct principles/tools! When we apply defined principles and practices to the systems and processes that deliver value to our customers, we're creating a business system" Our business system is designed to connect all of our organization`s intricate parts and interrelated steps to work together for the achievment of the NORMA strategy and vision 2025! Creating effective business systems often unifies the problem solving and decision making of the organization. Many common tools and methodologies are universally 28/9/2017 taught and expected to be utilized by all levels. The business system also encompasses how we lead our people and connect them to the operational strategy/vision. NORMA GROUP SE. All rights reserved.

14 6. NORMA Business System tool box GROWTH Growth Lean LEAN LEADERSHIP Leadership Dream Develop Deliver Reliability Transactional Operations Business Process Leadership Development Associate Development Voice of the Customer Lean Development Value Selling NORMA Reliability System Transactional Process Improvement 5S Policy Deployment NBS Immersion Introduction NBS Breakthrough Open Innovation Project Management Pricing DIVE external+internal Lean Logistic Value Stream Mapping Daily Visual Management Developing Talent Training & Facilitation (TFTI) Customer Segmentation Product LCM Sales Force initiative DF-X Assembly/Manufacturing Poka Yoke Standard Work direct+indirect Problem Solving Process Advanced Talent Assessment Kaizen Event Basics Intellectual Property Process Programm Purchasing Process D-FMEA P-FMEA Value Analysis/ Value Engineering Set-up Reduction/ SMED Lean Assessment Leadership Style Presidents KAIZEN Ownership NBS tool boxes Board GE cost savings Scrap Market place Supplier Quality Development Commodity Management NORMA Store KANBAN Measurement System Analysis KAIZEN board Strategic Planning Mentoring Bubble assignment Certification (SME) NBS Leadership Operations NPEX Lean Admin Total Productive Manufacturing Budgeting Core values Insight Discovery HR Business Development Finance Timing : August 2017 : Owners nominate NBS tool boxes September 2017 : Owners define the roll out plan NBS tool boxes for October 2017 : Presentation NBS road map to board and approval November 2018 : Owner start to define and describe all NBS tool boxes for 2018 January 2018 : Start to roll out NBS system KAMISHIBAI Suggestion Program Gauge R&R Lean layout Heijunka Energy conservation Factory standards Acquisition Integration Compliance Accounts Receivable Best Practices Accounts Payable Best Practices Korn Ferry Recruiting & Selection Change Management Employee branding Feedback culture 28/9/2017 NORMA GROUP SE. All rights reserved.

15 SME certification SME definition A Subject Matter Expert is defined as someone who has shown skills and proficiency in training and facilitating others in a specific lean, growth or leadership tool and has completed the steps for certification. Subject Matter Experts will be able to train many others in the understanding and application of NPS Tools.

16 SME certification NPS Lean tool SME certification process Step 1: Attend lean tool Event Step 2: Leads event Step 3: Leads Reviews for 3 Months Step 4: Becomes certified as a trainer and facilitator Step 5: Leads event at Another Site Step 6: Leads Reviews for 3 Months

17 TFTI Training and Facilitation techniques

18 Kaizen board Picture

19 Kaizen board Norma Serbia Picture

20 Concepts of lean production JIT Production 7 waste types, KAIZEN and lead time reduction The Kaizens follow the five-day standard sequence (i.e. Prep(Kaizen Charter), Training, Current State, Future State Implementation, and Report Out). Concept Traditional Cash Marketing R&D Product Design Production Preparation Purchasing Manufacturing Distribution Service Development Production Business Lead NORMA? Systems months

21 Concepts of lean production JIT Production 7 waste types, KAIZEN and lead time reduction Concept After Kaizen Cash Marketing R&D Product Design Production Preparation Purchasing Manufacturing Distribution Service Waste reduction 48 months Marketing R&D Product Design Production Preparation Purch. Manuf. Distribution Service Waste reduction Speed is essential for success Mkt. R&D Product Design Production Preparation Purch. Manuf. Dist. Service 6 months

22 Software for Time analysis Method, SMED, Line Balance Nr.of operators 6 Cycle time 155 Available time OEE 0.85 Norm target 143 Current 123

23 TPI Transactional process improvement Current state Waste detected: Inventory Waiting Quality defect Motion Overprocessing In the current state we identified above mentioned waste in the process steps prior to the PTR, which caused repetition of PTR s and long lead times. Quality defects in information caused missing components, capacity issues, failure of tool validation runs, success and acceptance rate failures. Root cause analysis for tool validation failures showed that inadequate or missing tool specification and tool acceptance protocols and lack of tool claiming process contribute to the tool validation failure and PTR failure. Overprocessing and waiting affected both PT and LT

24 TPI Future state Pre Kaizen By reducing and /or eliminating Quality defect, Waiting, Over processing the team managed to design and define a process where: Success and acceptance criteria are agreed on by all stakeholders prior to PTR Material, Production, Capacity planning are triggered by demand in ERP Tool specification, Tool acceptance protocols and Tool claim registers increase control of tool validation process and efficiency Operators and Trainers in Production are introduced to/ trained for the new product during tool validation and PTR Post Kaizen Improve ment Metrics Success rate 67% > 90% 25% Lead time 81 d 62.1 d 23.40% Process time 54.6 h 40.8 h 25.30%

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