PRODUCTION SYSTEM INTRODUCTION 5 SUSTAIN 4. PERFECT DELIVERY PERFORMANCE 1. NO DEFECTS 2. NO INVENTORY 5. HIGH COST EFFICIENCY 3.

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4 BULTEN PRODUCTION SYSTEM INTRODUCTION The Bulten Production System is our common foundation where each individual employee s knowledge, experience, and their wish to improve their work are of the utmost importance. In order to continue our development, it is extremely important that all our employees understand and apply Bulten s production principles. With this Production System, Bulten is involved in a process of continuous improvement and innovation with the aim of being the leading business partner and the most cost-effective supplier of fasteners and services to the automotive industry. Only with innovative, dedicated, professional, and empowered people will we achieve the best results. Gothenburg, 2016 Tommy Andersson CEO Bulten AB Jörg Neveling Senior Vice President Production Bulten AB Frank Welzel Production Manager Germany Juha Kauppinen Production Manager Sweden Stanislaw Piotrowski Production Manager Poland 3 BULTEN PRODUCTION SYSTEM GOALS 1. NO DEFECTS 4. PERFECT DELIVERY PERFORMANCE The zero-defects philosophy demands that we consider quality as our absolute priority. It is based on the approach that no fault in any process or service can be deemed acceptable. If a fault is detected, it should be analysed to find its root cause and appropriate measures should be taken to ensure that such faults do not reoccur (the use of other techniques or tools should be considered, e.g. standardized work). Even small changes that improve quality are extremely important in our company s striving for no defects. 2. NO INVENTORY Inventory turns are a measure of how quickly a company processes. We have to convert products and materials into money as quickly as possible. In addition, holding on to inventory costs money, so the quicker we sell our inventory the better. Ideally, we should keep no inventory because then we can invest our money in other aspects of our business, e. g. to buy new equipment. We strive for customer satisfaction and make great efforts to meet our quality objectives as well as to deliver our products on time and in suitable packaging. Our systems ensure that the customers requirements are met and that the right services are provided. We keep working on improving our processes so we can achieve the perfect delivery performance we are aiming for. Everyone contributes to the achievement of our goal. Therefore, suppliers and all employees help each other so that we can create the best solutions for our customers. 5. HIGH COST EFFICIENCY In order to achieve world class standard in production, we need increased efficiency to meet the customers and shareholders expectations regarding the price while, at the same time, sustaining a level of profitability that will allow us to keep developing. We look for waste in order to reduce it. We utilize our working time and machines efficiently and applying common methods of work. We achieve this by using the aforementioned techniques. 3. NO ACCIDENTS An accident is the worst thing that can happen at work. We are all responsible for our safety. If we follow our safety rules and work instruction and use safety equipment, such as gloves, helmets, safety shoes, etc., we will avoid injury. In an environment that prioritises safety, everybody must report potential causes of injury so they can be eliminated as soon as possible. Safety must not be compromised BULTEN PRODUCTION SYSTEM TECHNIQUES 1. 5S 5S represents 5 steps to maintain a visual workplace (visual controls and information systems). These are foundational to Kaizen (continuous improvement) and a manufacturing strategy based on lean manufacturing (waste removal) concepts. 5S is one of the methods that will help ensure our company s survival. SORT 4STANDARDIZE 1 5 SUSTAIN SET IN ORDER 2 2. STANDARDS (TS16949, ISO 14001, ISO 18001, ISO 50001) Standards are the basis for verification and diagnosis as well as for training people, maintaining best practices, and improvement. Standards represent the best, easiest and safest way currently known to achieve a task. They ensure that all employees use best practices and control process variation. All tasks and jobs must be carried out correctly as this is the foundation for all products to maintain a good and even level of quality. Today we use the best methods and solutions available. The standards we use in our daily work are described by systems. TS sets in order all quality-related items, ISO 14001/ISO regulates environmental protection issues/energy, and ISO is a set of rules regarding health and safety. They formalize our procedures. 3 SHINE 3. PROBLEM SOLVING (PDCA, ISHIKAWA, 5WHY) Problem solving is used when products or processes fail and corrective action has to be taken to prevent further failures. It can also be applied to a product or process prior to an actual fail event, i.e. when a potential problem can be predicted. Problem solving consists of using generally known methods (i.e. PDCA, Ishikawa, 5Why), in an orderly manner, for finding solutions to well-defined problems. Well-defined problems should have specific goals, clearly defined solution paths and clear expected solutions. If justified, a lesson learned documentation should be created

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