Strategic opportunity

How we reduced our lead time with 75% in

a high mix/low volume market

Efeco

EC (B)

Diegem

ECL (Cn)

ECTPL (In) Esco SaEsco Gmbh Esco Drives Esco Power Esco BVADD (B)

Saintes

Who we are

€ -

€ 2 000 000

€ 4 000 000

€ 6 000 000

€ 8 000 000

€ 10 000 000

€ 12 000 000

€ 14 000 000

€ 16 000 000

€ 18 000 000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Sales

-

0,50

1,00

1,50

2,00

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Sales Ratio

What we do

LEAN

Lean ‘07-’10

The COVER

The THRUST system

The TIGHTNESS system

The HUB

The SLEEVE

Is this the best way of working?

20 pcs

Change

Training5SSMEDCell-concept, FlowVisual management

Lean ‘07-’10

Market expectations are changing

Even for every product range expectations are different

Customers Expectations =𝐐 × 𝐒

𝐂 × 𝐓²

𝐐 = 𝐐𝐮𝐚𝐥𝐢𝐭𝐲

𝐓 = 𝐓𝐢𝐦𝐞

𝐂 = 𝐂𝐨𝐬𝐭

𝐒 = 𝐒𝐞𝐫𝐯𝐢𝐜𝐞

What did we want :

• Be open to new ideas and methodologies

• Be pro-active

77

Change with QRM

Explore

Reduce

Strategy

VariabilityLean

Lean/sigmaTools

Esco

Source: 2010, It’s About Time - The Competitive Advantage of Quick Response Manufacturing, Rajan Suri – p 5

88

• Lead time is the complex interaction of people, machines and materials

• QRM

• Sales

• Engineering

• Order processing

• Production

• Cells QROC

• Team takes the lead

• Multi-tasking

• Focus on time

• Leadtime

Focus on time

Organisation

Apply QRM and compete on time

Company wide

System dynamics

99

QR(m) successes

• Focus on “Lead Time Reduction”

• Define FTMS

• Qroc-team takes the lead• Flexible workforces/cross trained

• MCT = KPI

Start QRM

Where we are

4130417-QRM-Board meeting-v0GXC

Total lead time for FTR is 201 days

3 1 19 7 2 1 166 2

Note: reference coupling is FTRN70 ; hardware lead time excluded for MCT

201 days

Sales EngineeringMethod

Manufacturing

Elapsed Time Touched Time

MCT

Total ManufTime

5130417-QRM-Board meeting-v0GXC

Total lead time for High Speed is 244 days

3 1 19 8 1 1 210 1

244 days

Sales EngineeringMethod

Manufacturing

Elapsed Time Touched Time

MCT

Total ManufTime

6130417-QRM-Board meeting-v0GXC

Total lead time for Modified FST is 170 days

1 1 10 2 155 1

Note: reference coupling is FST, boring, keyway; hardware lead time excluded for MCT

170 days

Sales Ops Manufacturing

Elapsed Time Touched Time

MCT

Total ManufTime

7130417-QRM-Board meeting-v0GXC

Total lead time for Modified DPUSL is 115 days

4 1 17 3 10 2 77 1

Note: reference coupling is DPUSLNSAF, boring, keyway, balancing, ATEX marking, set screw ; hardware lead time excluded for MCT

115 days

Sales Engineering Ops Manufacturing

Elapsed Time Touched Time

MCT

Total ManufTime

TRANSPORT

INDUSTRY

QRM key to succes

Where we are

INDUSTRY

Sales/CS

Engineering

Quality

Admin

Production & Industrial Eng

Machines Machines

CoachingGeneral services

TRANSPORT

People

Customer Customer

ESCO COUPLINGS

Sales/CS

Engineering

Admin

Production & Industrial Eng

People

QRM key to succes

Where we are

Quality

Production

SalesEngineering

Shop floorQuality

IndustryTransport

QRM key to succes

Where we are

IndustryTransport

Qroc

4130417-QRM-Board meeting-v0GXC

Total lead time for FTR is 201 days

3 1 19 7 2 1 166 2

Note: reference coupling is FTRN70 ; hardware lead time excluded for MCT

201 days

Sales EngineeringMethod

Manufacturing

Elapsed Time Touched Time

MCT

Total ManufTime

Where we are

Actual : 90 days

Production

Sales

Engineering

Shop floor

Quality

QRM key to succes

Transport

Qroc

Where we are

QRM key to succes

MCT team Industry (start)

5130417-QRM-Board meeting-v0GXC

Total lead time for High Speed is 244 days

3 1 19 8 1 1 210 1

244 days

Sales EngineeringMethod

Manufacturing

Elapsed Time Touched Time

MCT

Total ManufTime

6130417-QRM-Board meeting-v0GXC

Total lead time for Modified FST is 170 days

1 1 10 2 155 1

Note: reference coupling is FST, boring, keyway; hardware lead time excluded for MCT

170 days

Sales Ops Manufacturing

Elapsed Time Touched Time

MCT

Total ManufTime

7130417-QRM-Board meeting-v0GXC

Total lead time for Modified DPUSL is 115 days

4 1 17 3 10 2 77 1

Note: reference coupling is DPUSLNSAF, boring, keyway, balancing, ATEX marking, set screw ; hardware lead time excluded for MCT

115 days

Sales Engineering Ops Manufacturing

Elapsed Time Touched Time

MCT

Total ManufTime

Where we are

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31

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Gear

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1/0

4/2

01

5

Disc

• MCT map :• Gear

• 170 at start 75 in 2014 55 actual• Disc

• 115 at start 35 in 2014 25 actual

MCT team Industry

Where we are

1818

Success factors

Time

Cost

Quality

1919

Success factors

2020

Ongoing Steps: WW situation

Team Transport

2121

Team Transport

Ongoing Steps: Shorter Supply

2222

Team Transport

Ongoing Steps: Shorter Supply

2323

Team Transport

Ongoing Steps: Shorter Supply

2424

Ongoing Steps: Team Industry

Plant Saintes

Team Industry

Plant Diegem

Assy & Packaging Industry

2525

Ongoing Steps: Warehousing

Outside Warehouse

Plant Saintes

45 km

2 km

Plant Diegem

2626

Ongoing Steps: Warehousing

Team Transport

Warehouse Transport

Plant Diegem

Team IndustryOutside Warehouse IndustryAssy & Packaging & Shipment

Plant Saintes

26 km

2727

• Focus on people• QRM training for all employees• Teambuilding is important• Team coaching is needed in the start-up• QROC close to jobfloor• Take enough time to involve team members

• Focus on the process• Full Integration, from order till invoice• Not only shopfloor

• Results are not predefined, but are…….• WIP & Inventory reduction• Increased floor space utilisation• Reduction of overhead

Lessons Learned

2828