DRIVING PERFORMANCE IMPROVEMENTS IN THE SUPPLY CHAINedge.penton.com/documents/113440_AD12_Porsche_Consulting.pdf · 2014-11-22 · Value stream supply chain Lean transformation of

12th Annual Aerospace & Defense Industry Suppliers Conference November 18, 2014

PRESENTED BY:

RONNY RUDZINSKI PRINCIPAL

DRIVING PERFORMANCE IMPROVEMENTS IN THE SUPPLY CHAIN

Proceedings Sponsored by:

Operational Excellence: Driving performance improvements in the Supply Chain

Ronny Rudzinski – Principal Aerospace, Porsche Consulting, Inc.

Litchfield Park, AZ, / November 18, 2014

Porsche Consulting Source: Porsche AG

Learn from others

Optimize from the inside-out

Enable excellence

INT1401_141118_01_ROR_PCON at SpeedNews_Speech.pptx 2

Porsche Consulting Source: Porsche Consulting


Tradition

Transformation

Traction

Take-away points

Porsche Consulting Source: Porsche Consulting; Photo: Fotolia


Source: Porsche AG Porsche Consulting

At the beginning of the 1990s, the starting point for improvement was in production


Source: Porsche Consulting, Foto: Porsche AG Porsche Consulting INT1401_141118_01_ROR_PCON at SpeedNews_Speech.pptx 6

Now, this is what Porsche car assembly looks like in Stuttgart-Zuffenhausen

Source: Porsche AG Porsche Consulting

Value creation was significantly increased by applying the just-in-time principles and utilizing workers’ creativity – Assembly plant BT 12 (Panamera and Macan)


0%

25%

50%

75%

100%

Porsche has been tackling continuous improvement for more than 20 years

-74%

Model change 964 993




911 Manufacturing hours

Year 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 91 09 10 11 12 13

Source: Porsche AG P.2

Continuous improvement

New product concept


165,808

101,844

73,284

55,782

45,119

32,390

20,79115,082

19,45613,15912,65211,57111,87810,6999,7528,7127,9596,847

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

05/06 04/05

90,954

03/04 02/03 01/02 00/01 93/94 92/93

7,133

99/00 98/99 97/98 96/97 95/96 94/95 2011 2010**

95,564

09/10* 08/09

76,739

07/08 06/07 2013 2012

Efficient processes: productivity increased from 2 cars per employee in 1993 to >8 cars per employee in 2013 Porsche AG – Production and Employees

* Porsche Zwischenholding GmbH ** Calendar year 2010 Source: Porsche AG, Annual Reports

In units and numbers

Production in units

Employees


Customer satisfaction will only be achieved if quality, cost, delivery service and employee motivation are harmonized

Porsche Consulting * Evaluation Porsche Leipzig September 2010 (6-Month Average Receiving to Assembly) Source: Porsche Consulting; Photo: Porsche AG

Missing parts [ppm]

Inventory Logistics Cost -62%

Current*

0.8

Start (2007)

2.1

-22%

Internal Logistics

Transport

Result NLC Target Planning

Q

D C

15

400-96%

after before

M



Tradition

Transformation

Traction

Take-away points


An operating model can be described based on five main areas

Supplier Customer

3

2 1

5

Production

4

Demand planning process Order process

Distribution process Delivery process


Source: Porsche Consulting

We began our journey with manufacturing but did not stop there; we continued to improve from the inside-out

Customer-relevant

Innovations

Robust Supply Chain enable require

Processes

Strategy

Organization

have impact on

Mindset and Behaviors

are embedded in



The perfect supply chain and line back logistics approach both create the foundation for “Operational Excellence”

Today

Tomorrow

Stable &

reliable forecast

Supplier comm-

unication

Takted internal logistics

Defined stock levels

in the super-market

Single steps goods

receiving

High frequency delivery in external

transports

Capacity planning

Production driven

material presen-tation

Standard work

& surgeon/

nurse principle




Tradition

Transformation

Traction

Take-away points


The logistics vision is simple: “frequently forwarding small quantities”

“A logistics masterpiece. …I do not know of any other plant that implements the principles of lean production so consistently as in Leipzig…”

Michael Macht, Former Head of Production at Volkswagen AG*

Process chain assembly: 5.33 hours from receiving to point of use

Pick-up at supplier

Receiving area Porsche

Distribution Picking in the supermarket

Takted deliveries

Assembly line Logistics center


09:00 T0-1

09:10 T0

09:15 T0

14:15 T0

14:20 T0

14:30 T0

06:00 T0


Integrated production and logistics processes are planned entirely according to the line back approach

Value stream supply chain

Lean transformation of value stream

Cell design

Inbound logistics

Line delivery Stocking Materials presentation

Supply chain

Average results achieved Lead time -50% Inventory -30% Productivity +25%



A structured material management approach helps to reflect reality in the system and enables smooth operations with the lowest possible inventory levels



A sustainable implementation of the transformation will be supported by the 8 Success Factors

Process Vision

Methods/ Tools

Training

Workshop/ Project Plan

Communi- cation

Key Performance Indicators

Willingness to Change

Breaking the current system and culture in order to change

Using standardized methods and tools for the implementation

Creating an organization that supports the lean transformation

Creating trust in the change process through transparent communication

Aligning the entire team toward a common goal

Empowering the people by improving their knowledge

Defining the road map to implement the process vision

Measuring the progress by tracking key performance indicators

CIP* Organization

8 Success Factors

1 2

3 4

5 6

7 8

* Continuous Improvement Process Source: Porsche Consulting



Tradition

Transformation

Traction

Take-away points



Tradition, transformation and traction

Porsche Consulting

Learn from others: Lessons learned (int./ext.) It won’t happen overnight Customer-relevant innovation

Optimize from the inside-out: Commitment to the journey Start from the inside-out Run your business the Lean way

Enable excellence: Achieve business results

through proactive leadership Lead the transformation Start implementing!


Documents

DRIVING PERFORMANCE IMPROVEMENTS IN THE SUPPLY CHAINedge.penton.com/documents/113440_AD12_Porsche_Consulting.pdf · 2014-11-22 · Value stream supply chain Lean transformation of