Autoliv Lean Thinking

Developing & Leading a mature lean organisation : 

Developing & Leading a mature lean organisation Strategy Actions Results Standards “The way we do things at Autoliv”

Complete Safety System Supplier : 

Complete Safety System Supplier Steering Wheel Driver Airbag Pelvis & Thorax Side Airbag Inflatable Curtain Passenger Airbag Seatbelt Systems Rear Side Airbags Electronic Control Unit (ECU) Knee Airbag Vision System Pedestrian Protection Night Vision System Satellite Sensor Anti-Whiplash System Anti Sliding Airbag Other Important Products:Child SeatsActive Seatbelts Technology Driver Assist Radar

Slide 3: 

Autoliv in Brief Sales and technology leader Sales: US $6.5 billion Fortune 500 company Sales to all major vehicle manufacturers ~80 facilities in 29 vehicle producing countries All facilities have deployed Autoliv’s lean system, APS. 13 technical centers in 9 countries and 21 crash test tracks ~38,000 associates and 3,600 in R,D&E Autoliv in Brief

Autoliv in the World : 

Autoliv in the World USA Mexico Brazil Australia South Africa EUROPE Estonia France Germany Hungary Italy Poland Romania Russia Spain Sweden Turkey UK India China Japan Indonesia Canada Korea Malaysia Philippines Thailand Taiwan Autoliv in Brief Tunisia

Our Belief : 

Our Belief “It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.” Charles Darwin

Slide 6: 

Autoliv Production SystemIntroduction

Autoliv Production System : 

Autoliv Production System The Autoliv Production System (APS) is the formalization of the Autoliv business culture based on the Toyota Production System (TPS) to help every single Autoliv plant grow towards excellence. With APS each Autoliv plant is working towards the same vision, to improve: Profitability Competitiveness Satisfaction (Shareholders, Customers, Employees & Society) Who will benefit from implementation of APS: Customers Company/Shareholders Employees Society

Creating APS : 

Creating APS APS was created based on TPS and LEAN concepts and launched to all Autoliv facilities during 2001-2002. TPS LEAN APS

APS HOUSE : 

APS HOUSE Quality First Profitability Competitiveness Satisfaction Autoliv Just In Time Employee Involvement Leveling Pull System Takt Time Freq Deliveries Line Concepts Continuous Flow Safety/ Ergonomy Discipline to Stds Cont Improvement Process & Result Don't Blame/Judge Flexibility & Motiv. Quality Assurance Quality Methods Six Sigma Team Work 5S Standards MUDA Elimination T.P.M. PRIVATE PROPRIETARY

APS is the world’s best practice way of doing our job. : 

APS is the world’s best practice way of doing our job.

Policy Deployment at Autoliv : 

Policy Deployment at Autoliv

How do we get everyone working towards our strategies every day? : 

Do people know what we want? Do people care? How do we know they are working on important improvements first? How do we get buy in? How can we follow up without smothering? How do we get everyone working towards our strategies every day?

The Compass : 

The Compass The compass is a very useful tool if we are lost or not sure which direction to go. Take any compass and it will point in the same direction. True North. Would it be useful to a business to have all it’s employees putting their efforts to move the company in the same direction? Policy Deployment is the tool that helps the employees to see the company plan direction. Policy Deployment

Autoliv Global Policy Deployment : 

Autoliv Global Policy Deployment Annually Autoliv Globally uses Policy Deployment to drive the following key indicators. Quality Cost Reduction APS Deployment (Lean) Test Centre Efficiency Operations Efficiency Financial Reporting (Time & Accuracy of Forecast)

Policy Deployment at Autoliv : 

Policy Deployment at Autoliv How the Policy Deployment is created

Policy Deployment Process Overview : 

Policy Deployment Process Overview Develop 5-year Plan Prioritise current period Define Shared Ownership Company Level Department Level Input Department Drafts KPIs and Priorities Senior Management reviews and agrees on shared targets Department finalises Policy Deployment and presents it Input Sub-Department Level Each level decides how it can support achievement of level above to meet Department KPIs Submits Draft Policy Deployment for approval.

Policy Deployment Process Overview : 

Policy Deployment Process Overview Develop 5-year Plan Prioritise current period Define Shared Ownership Company Level Department Level Input Department Drafts KPIs and Priorities Senior Management reviews and agrees on shared targets Department finalises Policy Deployment and presents it Input Sub-Department Level Each level decides how it can support achievement of level above to meet Department KPIs Submits Draft Policy Deployment for approval.

Policy Deployment Process Overview : 

Senior Manager Policy Deploy. Company Plan Deployment Target Agreement Reporting Target Setting Dept. Manager Policy Deploy. Staff Policy Deploy. Policy Deployment Process Overview

Example of Dept level Policy Deployment. : 

Example of Dept level Policy Deployment.

Policy Deployment Process Overview : 

Policy Deployment Process Overview Develop 5-year Plan Prioritise current period Define Shared Ownership Company Level Department Level Input Department Drafts KPIs and Priorities Senior Management reviews and agrees on shared targets Department finalises Policy Deployment and presents it Input Sub-Department Level Each level decides how it can support achievement of level above to meet Department KPIs Submits Draft Policy Deployment for approval.

Review Frequency : 

Review Frequency Updated Monthly Monthly review of Department Level Policy Deployments 6monthly review of Individual Staff Deployments by Managers Linkage to Pay reviews. Manufacturing Department internal review Weekly. All Policy Deployments for Departments and Work Groups displayed. Regular review with Managers.

Visual Displays in work areas. : 

Visual Displays in work areas. Office Factory

Visual Displays in work areas. : 

Visual Displays in work areas. Work Platforms

Policy Deployment Objective : 

Policy Deployment Objective Get everyone to understand the Company plan direction. Allow all employees to see where their tasks contribute to the company plan. Provide clarity to all Staff Link Department Plans to Company Plan Link Individual targets to Department & Company Plans. Standardise target Format Monthly Scoring/Planning to aid self direction & Performance Review One Page Target Report to be Displayed in Work Area. Aid Communication up and down the Organisation Facilitate Employee input to company plans Reduce Direct Supervision time Empower Self Directed work teams with common goals. Move Decision Making to lower organisational levels. Encourages Planning for Continuous Improvement

People at Autoliv : 

People at Autoliv Employee Involvement OK team!

Flexibility & Motivation : 

Flexibility & Motivation Employee Involvement Safety/ Ergonomics Discipline to Standards Continuous Improvement Process & Result Don't Blame/Judge Flexibility & Motivation

Training Doing Training Doing Training Doing : 

Training Doing Training Doing Training Doing Our strategy us to train then apply learning straight away. Training is cascaded. The trained become the trainers. Training is a key element of all improvement workshops

Self Directed Work Teams : 

Self Directed Work Teams Bringing multi-discipline and multi-functional people together. Speeds up communication and improvement. Shared Goals and share understanding. Empowers all levels of organisation. Reduction in noise and waste between employees and functions.

Celebrate : 

Celebrate Celebrate all improvement large and small. Use close out of workshops as recognition opportunity. Encourage and reward initiative. Mix formal and informal opportunities to praise and teach.

Improvement at Autoliv : 

Improvement at Autoliv Continuous Improvement

Workshops : 

Workshops Cross Functional Teams Specific improvement Objective Learning Opportunity

Waste Elimination : 

Waste Elimination Fundamental behind all activity Autoliv identifies 7 types of waste All employees trained to spot each type of waste.

5S – Improvement Foundation : 

5S – Improvement Foundation Everything has a place and is in its place. Everyone can see problems, waste and improvement areas Powerful knowledge – make workplace safer, simpler, cleaner & clearer

Autoliv Global Policy Deployment - Quality : 

Autoliv Global Policy Deployment - Quality Eliminate bad designs Eliminate bad components Eliminate bad manufacturing Eliminate non-conforming products Autoliv Product Development System (APDS) AutolivProduction System(APS) AutolivSupplier Manual(ASM) Autoliv Quality System(AQS) ZERO DEFECTS Driven through 4 Streams

Global Customer Reject Index : 

Global Customer Reject Index Quality Index (2004=1.0)

Waste has no where to hide at Autoliv : 

Waste has no where to hide at Autoliv Visual Management

Material System Overview : 

Completed product sent to Store every 20mins Each Box Taken releases a Kanban Kanbans to line every 20mins same qty each time Material System Overview Information Flow Customer 3 x per day LINE HEIJUNKA Material Flow Kanbans sent 3 x per day Finished Goods Buffer 3 x per day

Visual Management - Line Queue : 

Visual Management - Line Queue Yellow Means Running too fast. Minus 1 operator from Cell Green means running to Takt time. OK. Red means running too slow take action. Blue means tell management. Serious issue may lead to missed supply to Customer.

Visual Management : 

Visual Management Manager or Employee can easily see current condition.

Visual Management : 

Visual Management Only have signals for what is important. Reaction to condition must be clear. Responsibility must also be clear. If you measure and chart ensure the following – Desired condition or target is shown. There is a displayed action plan to improve. Display who us responsible to update. Ensure the team understands the chart. Area leader must discuss chart with team regularly. Don’t be afraid to stop measuring and displaying if there is no value. Avoid Signal Clutter

Standards & Discipline at Autoliv : 

Standards & Discipline at Autoliv Standards and Discipline

Standards & Discipline : 

Standards & Discipline Always update the standard when an improvement is made. Ensure PDCA discipline in everything – meetings workshops quality improvements Safety alerts and investigations testing , design etc.

: 

How to implement ? Standards (documented work instructions, procedures, etc.) are the “wedge” that keeps us from sliding back Role of Standards in Continuous Improvement

Discipline to Standards : 

Discipline to Standards What is the result when we do not follow Standard? Waste increases Quality Problems Cost increases No way to see what´s normal or abnormal In short we have Chaos Employee Involvement Safety/ Ergonomy Discipline to Stds Cont Improvement Process & Result Don't Blame/Judge Flexibility & Motiv.

The solution is at the workplace at Autoliv : 

The solution is at the workplace at Autoliv Key Lessons

Key Lessons : 

Key Lessons Go to the workplace to find the answer 5S is the platform for improvement and Visual Management Management must demonstrate commitment, daily. Business Plan Deployment is at the core of the Autoliv Improvement Culture Plan Do Check Act runs through all processes Celebrate all improvements large and small Without Standards and Discipline there is only failure and chaos Passion Persistence Publicity

Slide 50: 

Autoliv Every year, Autoliv’s products save over 20,000 lives The Worldwide leader in Automotive Safety Systems The Worldwide leader in Automotive Safety Systems