LEAN MANUFACTURING DEPLOYMENT STRATEGY

Executive MBA – Master Thesis

LEAN MANUFACTURING DEPLOYMENT STRATEGY Cultural and organisational approach

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 1 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

To my wife, For whom these hours of training have been infinitely long when they were too short for me who pursued the dream of knowledge.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 2 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

page

Contents PART 1 : INTRODUCTION 1.

Special thanks 6

2.

3.

4.

Preamble 2.1 Change, is it as simple as walking ?

7

Introduction 3.1 Author’s general presentation 3.2 Main purpose of this thesis 3.3 Organisation of the thesis 3.4 What is being studied and what is not being studied

8 8 9 9

FagorBrandt Group Presentation 4.1 MCC Group Presentation – Message from the Chairman 4.2 MCC industrial organisation 4.3 French factory organisation 4.4 Social context (cooperative versus non cooperative) 4.5 Is the French Lean Manufacturing approach directly applicable in Spanish facilities ? 4.6 Economical situation of this business sector 4.7 Competition overview 4.8 Main constraints and main opportunities in our industrial structure 4.9 The Value Chain according to Michael Porter

10 10 11 11 12 13 14 15 17

PART 2 : LEAN MANUFACTURING GENERALITY 5.

Definition of the Lean approach 5.1 Introduction 5.2 Lean ; what is essential ? 5.3 The origin of the concept 5.4 The Toyota Production System (TPS) 5.5 The 14 TPS management principles 5.6 The evolution of Lean Manufacturing 5.7 Back to some Lean practises

20 20 21 22 23 24 24

PART 3 : FAGORBRANDT DEPLOYMENT 6.

Why FagorBrandt should launch this approach 6.1 Main conceptual reasons for the organisation transformation 6.2 Economical reasons 6.3 Industrial reasons 6.4 Managerial reasons 6.5 Why now

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

29 30 30 31 32

Master Thesis - 3 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

7.

8.

9.

Top management commitment to this project 7.1 Two directions to manage the change 7.2 Who are involved, who decide, who manage 7.3 Decision and coordination loops

33 34 36

Preliminary phase 8.1 Short definition of this preliminary phase 8.2 The main reasons to fail a Lean project 8.3 Starting assumptions 8.4 Identified resistances and potential accelerators 8.5 Notion of Group Culture 8.6 A previous failed experience 8.7 Choice of ‘’how to do it’’ 8.8 With or without external assistance 8.9 Industrial benchmark 8.10 Planning of deployment

38 38 38 39 40 41 42 48 49 49

Deployment phase 9.1 To the factory boards 9.2 To the middle management 9.3 To the workers 9.4 Pilot actions 9.5 Tangible results after 18 months

51 53 55 56 60

PART 4 : CONCLUSION 10.

Conclusion 10.1 First global results – what is been experienced 10.2 A profitable experience of Management 10.3 Extending towards other industrial sites

63 64 65

Bibliography Glossary Index

67 69 73

PART 5 : APPENDIX 11. 12. 13.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 4 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

PART 1 INTRODUCTION

1.

Special thanks 6

2.

3.

4.

Preamble 2.1 Change, is it as simple as walking ?

7

Introduction 3.1 Author’s general presentation 3.2 Main purpose of this thesis 3.3 Organisation of the thesis 3.4 What is being studied and what is not being studied

8 8 9 9

FagorBrandt Group Presentation 4.1 MCC Group Presentation – Message from the Chairman 4.2 MCC industrial organisation 4.3 French factory organisation 4.4 Social context (cooperative versus non cooperative) 4.5 Is the French Lean Manufacturing approach directly applicable in Spanish facilities ? 4.6 Economical situation of this business sector 4.7 Competition overview 4.8 Main constraints and main opportunities in our industrial structure 4.9 The Value Chain according to Michael Porter

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

10 10 11 11 12 13 14 15 17

Master Thesis - 5 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 1 : Special thanks First of all, I want to thank the entire team of MBA teachers for their availability during these eighteen months, especially Christian Maupetit who has brilliantly managed this training, and my mentor Denis Malherbe, who has helped me with this Master thesis. In addition, I want to address a friendly thanks to Caroline, who has helped me with the English editing from her native country, Canada and to Vincent, who has created the cover of this document. I also want to thank all my ‘school colleagues’ for our exchange of experiences and for the good times shared together. Finally, thanks to the FagorBrandt factory managers and their teams. Without them, this journey towards industrial improving would not have been possible.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 6 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 2 : Preamble 2.1 Change, is it as simple as walking ? So characteristic of mankind, walking has often been described as two short moments of stability - when both feet are on the ground - interspersed by long periods of instability - when one leg is in motion (R. Lewin - Human evolution - 2005). Although a foot is permanently in support on the ground, it is paradoxically the movement that gives the body balance and not the opposite. Just like the human movement, the concept of walking forward or evolution is based on the principle of imbalance. Whether it is applied to the human body or an organisation, the willingness to set in motion breaks a reassuring and comfortable situation. Whatever the motivations, the speed or the importance for this change, the transformation of an organisation from a situation in a given time, brings upheavals, creates resistances and leads to a new situation and a new moment. The starting point is a balance, the destination is a new balance, but it is only the link between these two points that lead to an evolution. Through the Lean Manufacturing deployment, an unstable period is introduced in the FagorBrandt industrial organisation ; people, habits, methods, etc... Of course, the challenge is to reach a better situation which could answer externally to the new competitive environment and internally to the workers expectations. In any case, as to walk ahead, this project is a step beyond.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 7 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 3 : Introduction 3.1 Author’s general presentation My name is Alain Nodet, I am 46 years old and I am the Manufacturing Director of the FagorBrandt SAS Group. I am member of the Executive Board and my boss is the Group CEO. I am in charge of the 5 French industrial factories located in Orléans (900 employees), Vendôme (350 employees), Lyon (850 employees), La Roche-sur-Yon (750 employees) and Aizenay (120 employees). There are 5 people on my direct team : 4 factory managers and 1 industrialisation manager. My responsibility in this Group could be defined by the following 5 dimensions : - To work with the other executive board members in order to lead the Company towards growth and profitability. - To organise our plants to meet customer’s expectations on time. - To involve and focus all teams on these targets. - To improve production tools and methods facing markets in times of deep change. - To manage managers and employees with respect and personal consideration. In connection with the first dimension, the ‘Manufacturing 2010’ project described in this Master thesis answers how to achieve the other four.

3.2 Main purpose of the thesis This thesis states and analyses the strategy of management used to deploy a Lean Manufacturing program in the industrial sites of the FagorBrandt Group. The focus will be the human side of this evolution; resistances, accelerators, expectation and fears. More than a simple list of tools or methods focused on waste reduction, this approach is a complete system of people management based on the product value. It starts from the client drafts to the supplier payments and goes through each aspect of the industrial process. Thus, through the different chronological phases of the deployment, the impacts on main players will be described, especially the changing issues facing managers and unions. Moreover, based on examples, the implementation and use of some specific tools will be analysed to underline advantages, difficulties and financial benefits. At the end of this thesis, after seeing what a typical Lean Manufacturing approach is, the reader will be able to understand what the preferred ways are according to industrial, economical, human and cultural considerations. For me, this thesis is an exceptional and motivating opportunity to combine operational reflexions and conceptual approaches. This is a win-win job : The Fagorbrandt Lean project provides the outline and the contents of this document and the thesis researches ways to improve of the operational deployment.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 8 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 3 : Introduction 3.3 Organisation of the Master thesis After providing general background information, the subject will be developed following 3 chronological phases (as it will be done in the factories) : - The preliminary phase (or how the deployment strategy has been defined by the Executive Manufacturing Committee). - The deployment phase (or how the first level of the industrial implementation has been done with the Board of each factory). The operational phase (or how the different action plans have been implemented in workshops by the operational teams). In addition, I will demonstrate : - How the Lean Manufacturing program is in line with the global company strategy and how it will contribute to the imposed objectives. - How the changes will be accepted through all the management chain, from the top-down ? - And accessorily, the Lean Manufacturing approach – what it is and where it originated ?

3.4 What is being studied and what is not being studied This thesis focuses on production operations in our French factories. Impacts on their administrative departments and suppliers are not analysed. On the contrary, all interactions with the Spanish side of the Group will not be studied in this document; even if links are sometimes made. As a Lean Manufacturing approach is infinite, all actions started during the Executive MBA period and mentioned in this thesis will not be concluded in June 2009 (term-end of the course of study). In this case, I will show and analyse partial results only.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 9 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 4 : FagorBrandt Group presentation 4.1 MCC Group Presentation – Message from the Chairman MONDRAGÓN CORPORACIÓN COOPERATIVA, MCC, is a business group made of 264 companies and entities organised into three main areas: Financial, Industrial and Distribution, together with the Research and Training sectors. Mondragón Corporación Cooperativa is the fruit of a young priest’s clever vision, Don José María Arizmendiarrieta, in collaboration with the solidarity and efforts of all our worker-members. Together we have been able to transform a humble factory, which in 1956 manufactured oil stoves and paraffin heaters, into the leading Industrial Area in the Basque Country and ranking 7th in Spain. MCC had sales of € 13,390 million in its industrial and distribution activities, € 12,332 million of administered assets in its financial activity and a total workforce of 83,000 people at the end of 2006. MCC’s mission combines the basic objectives of a business organisation competing in international markets with the use of democratic methods in its organisation and with special emphasis on job creation, the promotion of its workers in personal and professional terms and a commitment to the development of its social environment. José María Aldecoa Chairman of the General Council (source : MCC Internet Website)

4.2 MCC industrial organisation

FINANCE

Machines tools

Components

DISTRIBUTION

INDUSTRY

Engineering

Household appliances

Automobile

Construction

Industrial systems

Fagor Electrodomésticos Group

FagorBrandt SAS (France)

Fagor Electrodomésticos (Spain)

Commercial dept

Marketing dept

La Roche plant

R&D dept

Aizenay plant

Fagor Mastercook (Poland)

Manufacturing dept

Human Res dept

Financial dept

Orleans plant

Lyon plant

Vendôme plant

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Legal dept

After-sales dept

Source : MCC

Master Thesis - 10 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 4 : FagorBrandt Group presentation 4.3 French factory organisation The 5 factories in France are mainly organised by product lines : For washing activities, La Roche-sur-Yon and Lyon plants are dedicated to producing toploading washing machines (600,000 U), top and front-loading dryers (220,000 U) and dishwashers (160,000 U). For cooking activities, Orleans, Vendôme and Aizenay are dedicated to producing ovens (390,000 U), cookers (140,000 U), hoods (95,000 U), microwave ovens (130,000 U), vitro hobs (60,000 U), gas hobs (90,000 U) and induction hobs (350,000 U). Vendôme and Aizenay are fully focused on manufacturing operations while the others have additional support departments like R&D, purchasing, marketing or IT.

4.4 Social context (cooperative versus non cooperative) In the Spanish part of the Group : There is a fundamental difference between the Spanish Fagor Group and the French or Polish entities : a very large part of the employees in the Basque country are “worker-members” called internally ‘’Socios‘’. It means that they are personally and financially associated with the Group economical results. When they start to work in the cooperative, these employees are sponsored by people already working in the company, and they have to pay a capital which is reinvested in the Group. Depending on the company's year-end results, this capital is remunerated or not. They recover all or a part of it when they leave the Group. Due to this, the relationship between employees and their jobs is radically different from the traditional workers as we know them in our profit-driven factories. These people are more concerned with sales and production efficiency. There are no unions, first because the cooperative status does not allow them, but also because it is difficult to stop working when your own money is invested in your factory. On the other hand, all main decisions are submitted to the ‘’Socios ‘’ for voting. Each voice is taken in account (from worker to upper-manager) and the decision is the result of the majority. Such system runs as a democratic model but it could take more time as everyone must be consulted. This situation has no equivalence in France or in Poland. To define deeper the ‘’cultural ‘’ context, it is necessary to take into account several items such as national specificities (Basque country + Spain), organisation (individual values, belief), but also the institutional governance mode (cooperative) and their main industrial target : to preserve the employment in the Basque country. It means a complex situation for the French entities.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 11 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 4 : FagorBrandt Group presentation In France : In France, the Group organisation is based on a classic social system where unions represent an important part of negotiation. Each act of reorganisation or large-scale change must be presented to the Central Company Committee and the workforce representatives. Moreover, this process must occur in each factory. Within the project context, this step cannot be bypassed, because unions could strongly oppose the move on principle. Their positions could compromise the success of our action of progress. We need to integrate them very early on in the process in order to properly manage any eventual resistance, for lack of having their tacit consent.

4.5 Is the French Lean Manufacturing approach directly applicable in Spanish facilities ? This part of the global project is, for the most part, not included in this thesis, but as it could be a natural extension of the Lean Manufacturing approach, this paragraph has been added for some basis of reflection. As we have started to explain, there are fundamental differences between the Spanish system and the French one. The Spanish organisation is based on a deep cultural system where obtaining general consensus is the rule for making each decision. And, in addition, always remembering that one of their primary goals is employment in their country. Financial issues are a constraint, not the deciding factor. Commonly, a Spanish manager could not impose a decision or a strategy without a ‘socios’ consultation and positive feedback from them. This system entails a very lengthy decision making process, with many meetings. Moreover, before, during and after this process, some small ‘dissident’ groups could appear, outside of those involved in the meetings, and try to influence the final decision. It is not uncommon to find that the real power to make a decision does not lie in the hands of a manager, but rather in the hands of someone else in his organisation. Therefore, it is fundamental to locate where or with whom the real power lies and tries to maintain a strong communication link with these people. A short discussion with the right person or people is often a more efficient use of time than spending long hours in a meeting. At this level of our project and according to our deployment planning, it is not possible to use the same strategy in France - traditionally management leaves high-level decision-making to the manager and favours the decisions made during meetings. So, the question is not to analyse what is the best way to implement this project in both situations, but rather how to use these local specifications to achieve our targets in the best conditions possible. Moreover, as the Spanish deployment starts several months after the French program begins, it will provide an opportunity to make comparisons and discover contributions equally made by both systems. It is evident that this dual approach will enrich both organisations and the result after several months of working will provide for better global efficiency. Most notably, the main contributing factors will be the different team’s capabilities to accept the other’s culture and adapt its own point of view to reach a global gain. This subject itself could be the theme for another thesis, but it is not further analysed here.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 12 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 4 : FagorBrandt Group presentation 4.6 Economical situation of this business sector Global situation : As we can see on the chart below, the last three years total European household appliance market (2006 – 2007 – 2008) is quite flat, roughly +2.5% a year. Western Europe shows a slow increase ; about +1.2 % a year with 84,000,000 U. It is essentially a replacement market with a high equipment rate. The most activity concerns the transition of the appliance typology from free-standing segments (cookers for instance) to built-in segments (ovens + hobs). Eastern countries show a stronger increase ; +6 % a year with 30,000,000 U. It is a developing market with real opportunities. However, in Eastern Europe, the average price level is much lower, so there are more economical constraints for the different players. Due to this, it is very difficult to produce in Western Europe (where the labour cost is high) then to sell to the East, except maybe for the top range products. The last, but not least of the parameters is the worldwide economical situation, especially concerning that of raw material prices. The cost of raw material (steel, copper, oil, plastic, etc…) has increased dramatically recently while, year after year, the average market price of our appliances decreases. Consequently, the customers/dealers are putting a great deal of pressure on manufacturers to save their margins. When a company is caught between these two phenomena, only a few solutions are possible : to drastically cut its internal costs (design and manufacturing) by improving its flexibility or to relocate to a Low Cost Country (LCC). As are many other companies, FagorBrandt is faced with this situation.

Source : CECED

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 13 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 4 : FagorBrandt Group presentation 4.7 Competition overview According to the figures below, the Fagor Group is fifth in Western Europe in terms of volume and forth in Eastern Europe. As number one in France and in Spain, the Group is the European leader for top-loading washing machines, top-loading tumble dryers, pyrolytic ovens and induction hobs.

Source : GFK

The equipment rate is not the same according to the family of products. Each home has a refrigerator or a washing machine when only one in three has a dryer. In recent years, we see a reversal trend between free-standing cookers and built-in equipment such as ovens or hobs. This trend is led by an increase in the rate of kitchen equipment in homes. This is a positive evolution for household manufacturers because built-in appliances generate more margin than free-standing. Metascope TNS Sofres : 2007 Survey

In comparison with the majors, the Fagor Group has taken a challenger position with a challenger strategy ; To cover all market segments with a large range of appliances, from the end of the first quartile to the top of the forth quartile. It is mainly focussed on value-added products; high-level electronic features and high-quality finishing. To reach this target, the Group offers a scope of 9 own brands (Edesa, Masterccok, Fagor, Brandt, Vedette, Sauter, San Giorgio, Thomson and De Dietrich,) and supplies components or sub-assemblies to 50 main OEM customers all around the world. For this activity, there are 16 production sites located in France (5), Spain (7), Italy (1), Poland (1), Morocco (1), China (1) and commercial subsidiaries in 19 countries.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 14 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 4 : FagorBrandt Group presentation

In addition to household goods, the Fagor Group sells small appliances such as cookware products, health and beauty devices, air treatment and small cooking appliances.

4.8 Main constraints and main opportunities in our industrial structure Without doing any SWOT analysis of our industrial structure, it is interesting to focus on our main constraints and main opportunities in order to implement our Lean Manufacturing strategy. Two sources could help us with this analysis ; the market point of view, given by a GFK report (French market - Q2/2008) and an industrial point of view through an internal survey done by the board of each French factory in June 2008. According to the GFK report, our Group is under the constraint of an average price decrease in its commercial sector. The pressure on cost is still increasing and could mean new opportunities for foreign competitors, such as BSH, Whirlpool and exotic manufacturers (especially from Eastern or Far-Eastern countries, like China and Korea. At the same time, there is a repositioning movement : Until now, the more dynamic quartiles or segments of market were from the beginning of the second to the top of the third one. With this recent evolution of pricing, a new distribution has appeared : a strong increase in the first quartile and a similar, but smaller effect in the fourth one. The consequences for us could be immediate. When our marketing definition (based on innovation and value-added features) and high price structure (Western organisation) are examined, the Group’s natural target on the market starts from the second quartile to the fourth. So, a large part of this pie could escape our spectrum, and what’s more, it is the one which shows strong gains.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 15 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 4 : FagorBrandt Group presentation On the other hand, the GFK report puts forth a high level of technicality, innovation and technology control for the Group. Through these aspects, FagorBrandt is able to maintain a good level of value (i.e. pricing) and some opportunities like the Environment and Energy wave, certain legal constraints (European Standard evolution), and an evolution of the typology market. GFK looks at a reduction of the large dealer sales to the benefit of small and local retailers and this part of the market is fully covered by our Group. Last June, I launched a survey to the board of each factory in order to gather the thoughts and ideas of these managers regarding the industrial managerial situation in FagorBrandt. Based on the four following questions, each factory’s board had two hours to answer through SWOT analysis : - How do we involve our teams in a Lean project ? - How do we induce a better performance measurement ? - How do we implement a continuous improvement dynamic? - How do we know and respect the customer demand ? To focus on the human factor, this job has underlined some very positive items, such as the real membership feeling, the desire to be federated through a long- term vision, a clear understanding of the competitive environment, and a young middle- management. In addition, thanks to the natural progression of people turnover, it will be easy to reorientate future recruitments towards specialities close to the Lean in order to reinforce our competences. However, it will be equally important to pay attention to the lack of Lean knowledge, the unions’ claims, the perennity of this action, the lack of involvement from the rest of the Group, and a possible reorganisation driven by the Spanish shareholders. All these points will be taken into account in the strategy of deployment which will be detailed in the third part of this thesis.

Has the financial crisis changed something in this model ? In fact, since November 2008, the international crisis has introduced some modifications in the schema of sales. The traditional quartile distribution has been changed. Initially, the quartile which saw the most sales and the greatest margin was the third one. And due to this, that’s where our stronger brands were focused. Since last November, the average amount of household appliance purchases has decreased. The confidence of the consumers has been lost and they have reduced their consumption. When an appliance is broken down, they are obliged to change it. But, instead of buying a new one, which may be more sophisticated, more aesthetically pleasing, and therefore, more expensive, they prefer to save their money and spend only the bare necessary. Consequently, they buy an entry range appliance. For manufacturers such as FagorBrandt, this evolution of attitude has increased the pressure on the prices and the imperative need to reduce internal costs.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 16 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 4 : FagorBrandt Group presentation 4.9 The Value Chain according to Michael Porter In order to complete this global view of our Group, a comparison with the Value Chain model defined by Michael Porter can be made. Based on the distribution of value creation, Michael Porter proposes to split company activities into single tasks and to reveal the potential of competitive advantages thanks to its structure.

Company Infrastructure Administration

Support Activities

M ar gin

Human Resources Management Technology Development, Engineering Procurement

Value Creation

Primary Activities

Inbound Logistics

Operations (Manufact uring)

in

Outbound Logistics

Marketing & Sales

After-sales Service

g ar

M

Source : Michael Porter – 1980

Several aspects can be identified : main activities, supports and their respective costs. According to Porter, the more a company is able to encourage cohesive interaction of all their departments, the more it is efficient and the more it could take advantages of the market in the following three dimensions : Product price, customer service and margin. This model has also two limits : the risk of conflict between business responsible and process responsible and the compartmentalization between the different activities.

Unfortunately, in our case, we have limited internal information from our competitors to make a full comparison and detect where all the opportunities exist. Apart from some financial results, only two aspects are visible : their creativity and rhythm of new products which appear on the market, and where their factories are located. Focussing on our Manufacturing approach, the plant location represents a fundamental issue with two contradictory sides, especially when the facility is in a LLC (Low Cost Country) : there are substantial production cost savings due to the low level of wages, but there is also loss of flexibility and reactivity due to the distance between producer and retailer. As Fagorbrandt is mainly situated in Western Europe, flexibility* and reactivity** will be two of the primary levers of customer satisfaction. Our factories are located within one day’s travel by truck to our customers, whereas our foreign competitors require six weeks by boat for product delivery. We will use this to explain why our Group needs a Lean Manufacturing project.

* Flexibility : For a factory, its ability to supply a large range of products without any delay and any overcost. By extension, the ability of a structure to be modified quickly to conform to new constraints. ** Reactivity : For a factory, the ability to supply an identified product with a short delivery time. By extension, the ability of a structure to react quickly when facing external requests.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 17 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 4 : FagorBrandt Group presentation

Bibliography        

MCC (MONDRAGÓN CORPORACIÓN COOPERATIVA) - www.mcc.es CECED (European Committee of Domestic Equipment Manufacturers) - 2008 report GFK (Growth from Knowledge) - 2007 & 2008 reports - Market Research Company SOFRES - 2007 survey Human evolution – Roger Lewin - 2005 http://www.cibleus.com/fondement-marketing/chaine-valeur.html http://chohmann.free.fr/strategie/modele_porter.htm www.123business-fr.com

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 18 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

PART 2 LEAN MANUFACTURING GENERALITY

5.

Definition of the Lean approach 5.1 Introduction 5.2 Lean ; what is essential ? 5.3 The origin of the concept 5.4 The Toyota Production System (TPS) 5.5 The 14 TPS management principles 5.6 The evolution of Lean Manufacturing 5.7 Back to some Lean practises

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

20 20 21 22 23 24 24

Master Thesis - 19 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 5 : Definition of the Lean approach 5.1 Introduction In order to further enlighten the reader on the Lean Manufacturing approach, the paragraph below summarizes what the approach entails and highlights its main principles. A large part of the information comes from existing sources, extracted from websites or specialised books. All references are mentioned at the end of this chapter or directly in the text. If the reader already knows this subject, he could bypass this chapter and go directly to Chapter 6. Or if he wants to delve deeper into this area, I invite him to read these referenced books or documents to gain a more complete understanding.

5.2 Lean ; what is essential ? Before speaking about tools, it is essential to develop a better overview of this approach. The main and more common mistake about the Lean is to consider this system as an addition of different improvement tools. It is impossible in this way to imagine that a Lean success story is only due to some appropriated techniques. On the contrary, when a Lean project is reduced to implement tools in the workshops, the result is invariably a failure. If there is only one important definition to remember in this Master Thesis about Lean, it is this : Lean Manufacturing is a global organisational approach, with some specific tools, which focuses all available resources on the real value supplied to the Customer. In this way, the Lean approach identifies all waste along the product or service life cycle. When a waste has been located, if it is not useful, it must be eliminated immediately. If it is mandatory, it must be reduced as much as possible. This approach is based on the people’s commitment and involvement and must be both Top-Down and Bottom-up. It is a long-term philosophical and integrated approach and not a summary of punctual tools, even if they are very powerful. According to J. Drew, B. McCallum and S. Roggerhofer (Objectif Lean), to be perennial, a Lean project has to be supported by three areas : the operational system, the managerial system and the cultural system. - The operational system enables the management of people, resources and information and the creation of value for customers. This is the most tangible pillar of our construction. - The managerial system organizes all processes and competences in order to support the organisational system and to favour the performance. - The cultural system reflects the people’s attitude, their aspirations and their own objectives. These different factors must be in accordance with the operational system and the managerial system.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

LEAN APPROACH Operational system Managerial system Cultural system Source : AN

Master Thesis - 20 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 5 : Definition of the Lean approach The heart of the Lean project is located in the operational system because the added value is created here. The two other systems have to be dedicated to help the first one to optimize its way of operating. Regarding the cultural system, a lot of Lean experiences have failed because the people aspect has been neglected. The success in terms of Lean transformation is in a large part due to the result of the team’s capacity to manage this challenge. It is firstly true for the top management, but all teams must be stimulated by recognition of their action. Most of Lean transformations include three specific components : ‘Kaisen’ work-groups, ‘benchmarking’ processes and ‘external recruitment’ of experimented people (people with a first Lean experience) : - The principle of the Lean deployment is not based on one big breakthrough, but many small steps of improvement. Little by little, each section of the production flow is studied, analysed, transformed and improved. This is Kaisen and it is a virtuous circle. The first time, when a situation is analysed, a lot of waste is identified, then eliminated. In general, these steps save time for people, and in turn this free time could be used to study new situations, eliminate further waste, thereby saving more time, etc… - The ability to measure the performance of an organisation is also a fundamental aspect of Lean. When a Lean approach is launched, it is important for the team to visit other factories already engaged in this project for, at the very least, two reasons : It provide a quick overview of what the real Lean opportunities are and which level their organisation is currently at. The first observation creates the desire to go further and the second one gives an idea of how much time is required to meet their target. - At the beginning of a Lean deployment approach, generally only a few people have global Lean knowledge. Recruiting people with this knowledge has advantages, such as gaining external points of view, the sharing of real experience and practices to share, quick possibility of employee training, and maybe, preferred entries with which to do benchmarking. In addition, to manage a Lean approach, it is necessary to develop a system of performance measurement. After defining several appropriate indicators, for example the industrial productivity, the inventory turnover, the Customer Service Rate and many others according to the industrial activity of the company, a preferred image of the situation must be drawn up in order to define a point of reference. During the deployment of Lean, these indicators will be periodically checked to follow the evolution of the performance. According to the results, it will then be possible to strengthen certain actions, to start new ones towards not exploiting axes, or, to stop others because that is less effective.

5.3 Origin of the concept According to a large panel of publications, there are a lot of very old examples of standardisation processes. One of the first and well-known cases documented in literature was in the 14th century in Venice when Venetians adopted a real continuous flow method to make thousands of galleys each year. Even if some older societies had tried to use similar mass production organisations, they had been unable to reach the same systematic level of efficiency. During the following centuries, based on this success, the English, then the American arsenals copied this system to make military equipment in large quantities.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 21 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 5 : Definition of the Lean approach Deriving from this long story and based on the Adam Smith (1723-1790) and Frederick Winslow Taylor (1856-1915) theories, the first industrial person who really used these revolutionary and repetitive production methods was Henry Ford (1863-1947). He built the first assembly line in continuous flow in the world in Highland Park in 1913. To do this, he combined several work approaches : mobile assembly line, standardisation and high wages. His target was to manufacture in large batches with interchangeable parts. Everybody saw the monotonous and repetitive side of this principle, but from an engineering point of view, the industrial and economical consequences were huge. As soon as possible, Ford aligned process steps to sequence them. He used dedicated machines and indicators to make and assemble parts in a few minutes. But the Ford’s main problem was not the flow; it was his inability to supply diversity. The Ford T is a famous example of this customer-limited choice. Each time a car maker proposed options, the production set-up was incredibly more complex and longer, until the creation of the automated system to plan productions (like MRP : Material Requirement Planning). In the thirties, and again, after the Second World War, Kiichiro Toyoda and Taiichi Ohno from the Toyota Company watched this situation carefully. They improved Ford’s original idea with simple innovations to ensure continuous production with a large product variety. They invented the Toyota Production System (TPS). Source : www.institut-lean-france.fr

5.4 The Toyota Production System (TPS) ”What we do, it’s to track the time between when the customer places their orders until we collect payment. And we reduce this time by eliminating all waste and that which is not giving added value”. Taiichi OHNO, Founder of the Toyota Production System Three men were especially prominent in creating the Toyota Production System : Sakichi Toyoda, his son Kiichiro Toyoda and Taiichi Ohno, a production engineer. In the late 1940s, Ohno was in charge of a machine shop and he experiments with various ways of setting up the equipment to produce needed items in a timely manner. In 1956, Ohno went to the United States to visit automobile plants, but his most important discovery was the supermarket (Japan did not have self-service stores yet). He marvelled at the way customers chose exactly what they wanted and in the quantities that they wanted. Ohno admired the way the supermarkets supplied merchandise in a simple, efficient, and timely manner. The ‘just-in-time’ philosophy was born. Based on a replacement system or ‘pull production’, the target of TPS is to produce a single part to replace what has been used by the customer. To perform this, each step of the process needs to be performed just in time, with the right quality at the right price, with the right part and only the right part. And according to Ohno, the only way to do this is to eliminate all waste in all processes (see the following paragraph ‘Back to the Lean basis’). This system is at the opposite of the mass production American model (like that created by Ford) ; to amortise fixed costs and dope productivity, the classic principle is to increase batch size always using the same workers. TPS explains that during a period of low economic growth and high diversification period, only cars which are sure to sell have to be produced.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 22 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 5 : Definition of the Lean approach In this way, workshops have to limit batch sizes and exchange tools often and quickly. In fact, the priority is the flow and not individual machines. Often represented by a house, TPS is formed on two pillars : Just-in-Time and Jidoka (again a Japanese word which means automatic control to stop production in case of a problem). For stability, the foundations are based on continuous improvement, regular production and work standardisation. The roof represents the target : high quality, low cost and on-time delivery.

High quality, low cost and on time delivery

Just in time

Jidoka

(Time mgt)

(Quality mgt)

Continuous improvement

Regular production

Standard operation

Stability Source : Le modèle Toyota - Jeffrey Liker

5.5 The 14 TPS management principles It is possible to use several tools of the TPS while applying some principles of the Toyota model. The result is a few surges of improvement in the short term. However, the company which fully implements all the TPS principles in a constant process has lasting results and a long-term competitive advantage. The Lean is not meant to imitate the tools used by Toyota in a determined manufacturing process. The Lean is to develop principles that are tailored to the company and apply them systematically to achieve a high level of performance for customers. It is the best way to gain competitiveness and profitability. According to the author Jeffrey Liker in “Le Modèle Toyota”, himself inspired by the works and writings of Taiichi Ohno, James Womack and many others, and in order to succeed, the TPS defines 14 management principles organized in four sections : - Long-term philosophy. - The right process produces the right results. - Add value to the organisation by developing your people. - Continuously solving root problems drives organisational learning.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 23 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 5 : Definition of the Lean approach Long-term philosophy 1. Base your management decisions on a long-term philosophy, even at the expense of short-term financial goals. 2. Have a philosophic vision that transcends the immediate decision-making and guide the company towards a common purpose beyond profit. The right process produces the right results 3. Create a continuous process flow to bring problems to the surface. 4. Use pull systems to avoid excess production. 5. Level out the workload. 6. Build a culture of stopping to fix problems, to get quality right the first time. 7. Standardized tasks and processes are the foundation for continuous improvement and employee empowerment. 8. Use visual control so no problems are hidden. 9. Use only reliable, thoroughly tested technology that serves your people and processes. Add value to the organisation by developing your people 10. Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others. 11. Develop exceptional people and teams who follow your company's philosophy. 12. Respect your extended network of partners and suppliers by challenging them and helping them improve. Continuously solving root problems drives organisational learning 13. Go and see yourself to thoroughly understand the situation. 14. Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly. 15. Become a learning organisation through relentless reflection and continuous improvement.

5.6 The evolution of Lean Manufacturing The difference between TPS and Lean is a question of time and location. TPS was born just after the Second World War in Japan and Lean was born about twenty years ago on the other side of the Pacific Ocean. It was an American guy, John Krafcik, who invented this word to define as best as possible the Toyota methods. Lean Manufacturing is also called ‘Agile Manufacturing’. Definitively, TPS and Lean Manufacturing represent the same philosophy and try to reach the same objectives : better product, better quality, better cost, better delivery time and better respect for people.

5.7 Back to some Lean practises Without detailing a complete guide on Lean Manufacturing and its tools, the target of this paragraph is to explain the main ideas of this approach. Lean Manufacturing is a new business model that provides a far superior performance for customers, employees, shareholders and society in a more general sense.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 24 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 5 : Definition of the Lean approach This structured approach is driven by four steps : to analyse that which already exists, to pinpoint the real value-added and by contrast, to identify waste and to eliminate them (and do so again, and again, and again…).

Existing analyze Added value identification Waste identification

Source : AN

Waste cancellation

According to the TPS, there are three type of waste : - Muri or overloading. Each time production exceeds the real requirement, Muri is created. Buying in advance or producing in excess induces financial over-engagement, machine overuse, lack of space in workshops, obsolescence risks and workforce overuse. - Mura or irregularity, variability. Jerk of production, rhythm-breaking, yo-yo orders, as many causes to create inventory buffers. The Lean approach looks for a regular production flow like a river. If there are some obstacles, the target is not to add water to jump over, but to eliminate them systematically. - Muda or non value-added. In other terms, all operations which do not contribute to the product value and which are not sold to the customer. Shigeo Shingo (another TPS inventor) identified seven forms of waste : overproduction, inventories, unnecessary motions, waiting, transportation, over-processing and Non-Right First Time (Scrap, Rework and Defects). In general, Muda is the result of Muri plus Mura. An additional Japanese word makes the link between these three terms, Gemba. This word means manufacturing floor. All problems come from this place and have to be solved in the place. A clear and precise idea of what happened is not possible if people do not go to workshops and observe the daily reality ; real facts, real places and real people. This is a fundamental element. Most companies start by reducing Muda because it is easier. However, it quickly becomes apparent that in order definitively eliminate waste, it is necessary to work on Muri and Mura. For example, cancelling inventories without getting reliable machines or smooth production invariably leads to a crash. In addition to these types of waste, there are three other main systems included in the Lean basis : 5S Organisation, Visual Management and Standardised Operations. Seiri, Seiton, Seiso, Seiketsu, Shitsuke : Five Japanese words to describe a method to organise a workplace (workshop, office, etc…) in order to improve efficiency and safety. In English, these words are translated as : - Sorting (select and keep only what is necessary), - Straighten or Set in Order (each thing in the right place and a place for each thing), - Sweeping (clean and maintain clean), - Standardising (write work rules and responsibilities), - Sustaining (respect rules and continuously improve the system). A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 25 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 5 : Definition of the Lean approach Why 5S Organisation : there are a lot of advantages to starting with this organised approach, such as eliminating wasted time, looking for something, to improve employee safety, improve efficiency, decrease machine breakdowns, free-up and maximize use of space, get a nicer life environment. It is not necessary to practice the Lean approach to make 5S. 5S Organisation could be managed independently. But it is absolutely mandatory to include a 5S action in a Lean Manufacturing deployment. Each Muda action has to start by, or at the very least, go with a 5S action to strengthen and perpetuate improvements. Visual Management is another Lean Manufacturing pillar. This idea is simple : If a person is able to see what is happening, he is able to correct it if necessary and he is able to improve it too. If a manager is able to control permanently control his workshop by watching its operations, he is able to react quickly and again, improve his performance. Visual Management and 5S are closely related. Visual Management includes several aspects : Production flow, workshop organisation, indicators, team management, inventory location, etc… Another virtue of the visual aspect of improvement is the involvement of others by providing an example. A collective emulation could result from visible success. According to my experience, with few exceptions, people personally need to improve their environment and try to find innovative solutions to achieve this. Observing other examples around them could be a trigger of change. For an external visitor in a Lean workshop, the flow of parts has to be clear, the machine tool’s environment has to be clean, the tasks and responsibilities have to be easily readable and a simple manual board has to outline the objectives and note the performance of each day. Another very important TPS recommendation to perform with Lean is to develop standardised operations. As we have seen, stabilising the production flow is one of the main stumbling blocks of the Lean approach. But putting all organisations under constraint to reach greater performance is a risk of destabilisation in a factory. On the contrary, define standard processes, standard operations and standard organisation help to reassure workers improve machine reliability and reduce time of tool exchange and, therefore stability in the system is once again achieved. To sum up, four inescapable processes have to be implemented to succeed with a Lean Manufacturing project : - Analyse the reality and eliminate all waste - Organise and clean equipments and procedures Waste - Use Visual Management to facilitate elimination operation control - Simplify and standardise all operations Workshop organization

Visual management

Operation standardization

Source : AN

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 26 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 5 : Definition of the Lean approach

Bibliography  Objectif Lean - J. Drew, B. McCallum, S. Roggerhofer - McKinsey & Compagny - Eyrolles Editions d’Organisation - 2008  Le Modèle Toyota - Jeffrey Liker - Editions Village Mondial - 2006  Système Lean - James Womack & Daniel Jones - 2ème édition - Editions Village Mondial - 2007  Le lexique du Lean - The Lean Entreprise Institute - Traduit par l’Institut Lean France -Troisième édition - 2007.  Kanban - Kenichi Sekine - Editions Hommes et techniques - 1983  Institut Lean France - www.institut-lean-france.fr  The Lean Enterprise Academy - www.leanuk.org  Toyota Motor Corporation - www.toyota.co.jp/en/vision/production_system  Toyota Motor Manufacturing - www.toyotageorgetown.com  www.123business-fr.com  www.lean.enst.fr/wiki/bin/view/Lean/WebHome  www.chohmann.free.fr

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 27 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

PART 3 FAGORBRANDT DEPLOYMENT

6.

7.

8.

9.

Why FagorBrandt should launch this approach 6.1 Main conceptual reasons for the organisation transformation 6.2 Economical reasons 6.3 Industrial reasons 6.4 Managerial reasons 6.5 Why now

29 30 30 31 32

Top management commitment to this project 7.1 Two directions to manage the change 7.2 Who are involved, who decide, who manage 7.3 Decision and coordination loops

33 34 36

Preliminary phase 8.1 Short definition of this preliminary phase 8.2 The main reasons to fail a Lean project 8.3 Starting assumptions 8.4 Identified resistances and potential accelerators 8.5 Notion of Group Culture 8.6 A previous failed experience 8.7 Choice of ‘’how to do it’’ 8.8 With or without external assistance 8.9 Industrial benchmark 8.10 Planning of deployment

38 38 38 39 40 41 42 48 49 49

Deployment phase 9.1 To the factory boards 9.2 To the middle management 9.3 To the workers 9.4 Pilot actions 9.5 Tangible results after 18 months

51 53 55 56 60

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 28 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 6 : Why FagorBrandt should launch this approach 6.1 Main conceptual reasons for the organisation transformation Réal Jacob, Alain Rondeau and Daniel Luc have described in their book “Transformer l’organisation”, Racines du savoir collection, four transformation origins, four transformation configurations and four transformation orientations :

Po li c y

Ec on

A transformation could be triggered by four main origins : economical reasons due to the international competition or worldwide situation, political reasons due to the market deregulation or fragile control structures, technological reasons due to the information system evolution or the know-how management and social reasons due to the manpower evolution.

om y

Te

ch no

ial

4 origins

gy

So c

s

lo

Be

sin

es

Source : AN

lie

Bu

fs

tio

l

ni

iva

sa

rv

Or ga

Su

n

4 configurations

Regarding the transformation configurations, some of them could be belief oriented such as a cultural and ideological evolution, some of them could be organisation oriented such as values and practices evolution, some of them could be business oriented such as activity evolution and some of them could be survival oriented such as quick, voluntary and deep organisation evolutions

Source : AN

Pe

rfo

ie nt

rm

Cl

an

ce

4 orientations

-b

su

s

ed

es

ac

k

oc

Fe

Pr

Source : AN

This process of transformation could follow four different orientations : Client-oriented - where better organisation performance is reached and centred on the key of success (Total Quality and Score card). Process-oriented - where optimal work organisation and better coordination are reached (Kaisen and project teams). Standard performance-oriented - where better work standards and practices are reached (Best practices and benchmarking). Feedback-oriented - where all information is systematically written and used to train every worker (company look-out and Quality circles).

Economy Organisation Client

Processus

If our own process is to be described using 3 main characteristics of a transformation, the economical reasons could be chosen for the origin, the organisation orientation for the configuration and two orientations could define our targets : Client and process.

Source : AN

Hereafter, our own reasons will be more precisely described under 3 different viewpoints ; economical, industrial and managerial. At least, we will see why this approach is started now.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 29 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 6 : Why FagorBrandt should launch this approach 6.2 Economical reasons In times of economic crisis, the order books tend to fall sharply and the first reflex of companies is to respond by reducing their production and their staff. From the Lean viewpoint, this situation can be transformed into an opportunity; to benefit from the manpower released by the decline in activity, to accelerate the deployment of the approach, to strengthen the training and to multiply projects of continuous improvement. Therefore, companies that use the Lean approach have a double advantage over others when a crisis arises : With less costly organisations, they are better prepared to ride out a crisis. Secondly, with reduced costs and increased turnover before confronting any difficulties, they could have greater cash flow allowing them to have some flexibility to absorb any unexpected decrease in orders. Companies which are able to sum up all keys of success in the Lean development (top management’s will, long-term view, people involvement, etc) are certainly able to reduce their costs and save financially. If these aspects are not part of their primary target, they have to be given serious consideration, as they are indissociable and mandatory for success. The economic context of the household appliance industry is very volatile, depending on the desires of consumers, the price of energy and raw materials. Our factories are therefore subject to very severe external constraints and as such, their adaptability is a major advantage. The use of Lean is part of the response to this need. According to the FagorBrandt Group’s industrial distribution in Europe, some facilities are located in the West and one in the East (Poland). The economic constraints are not the same, mainly due to the cost of labour (Poland’s cost is half that found in France or Spain). As the French factories are not able to compete in this manner, one of the identified levers is the best technical control which exists in the ‘old’ plants, and by this way, their ability to drastically improve their flexibility and their reactivity. This tangible aspect is easily demonstrated and will be used to convince managers and all those interested by a worldwide business view. To summarize, the international economic pressure is such that we have no other choice than to move, adapt and improve our Group. Thanks to this project, plus increasing transportation costs and a higher level of reactivity demanded by our customers, our Western industrial sites could restore a little bit of perennity.

6.3 Industrial reasons Cost reductions, quality improvements and on time deliveries, year after year, make the difference between profitable companies and non-profitable companies. Manufacturing is a large part of the economical process and has to contribute to the global performance (see the Porter model in Paragraph 4.9). On one hand, production operations are the unique steps where there is real added value given to products, (the basic value of an appliance is determined by the cost of components plus the direct labour cost). On the other hand, a lot of waste is induced by the company structures, whether via process organisation or human organisation. To work continuously on structures, processes and methods, training and communication are the main ways to move factories towards better results. Furthermore, we have identified two operational items on which to focus our energy : product quality and tooling flexibility.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 30 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 6 : Why FagorBrandt should launch this approach According to the information received from our own After-sales Service department, the FagorBrandt customer quality is no more, but also no less, critical than our competitors’. This situation is not acceptable as the Group wants to impose our appliances as references on the market. This topic will be given priority and fully explored in the Lean deployment. Finally, because the market goes up and down at an increasing rate, there is a big challenge to adapt our industrial tools ; firstly, to answer this new and erratic demand, and secondly, if we are able to meet it, to do this without exceeding our cost. To summarize, on one hand, a lot of continuous improvement tooling is dedicated to quality management, and on the other hand, our Group wants to be the standard reference in this area on the market. These two items have to be developed concurrently. Moreover, the absolute necessity to converge our industrial facilities with market requests seems an obvious outcome for the Lean deployment.

6.4 Managerial reasons One of the biggest difficulties with this approach is that we are unable to control external events after launching the system. This issue has been pinpointed by the internal survey mentioned in Paragraph 4.8 and represents a real concern for management. For FagorBrandt, external means not only outside of the Group (the worldwide economy situation for example), but also inside such as strategic or industrial modifications introduced by the Spanish shareholder. In general, regarding the extra-group risks, as soon as the dynamic is launched and big and small meetings are held to present the deployment plan, people are enthusiastic, some initial results appear, and of course, a major event (like an economic crisis) is not forecasted. During our teamwork with the factory manager, this eventuality has been seen as a risk, but also as an opportunity. During these difficult periods, the creation of a unifying project is difficult, but necessary to focus people, especially managers, on production, teams, training and improvement. If it is clearly easier to deploy this approach when the economic situation is favourable, the factory has to resist and see get the crisis through with as minimal damage as possible. Keeping teams focussed on this target by using a Lean approach presents a good way to lead everybody. And in the end, we have decided that difficulties are neither a sufficient reason nor an excuse to stay fixed. There is a vital necessity to maintain permanent action which mobilizes teams and managers. As Lean is more of a long-term philosophy than a simple project, this voluntary approach, initiated by the top management, has the capacity to involve people from the top-down. Six months after the launching, this situation has now happened for one industrial site and it is described in the third part. Regarding the intra-group risks, when we started to think about this project, we did not have enough information from the Spanish management to make a clear decision. Faced with this lack of information, and without any possibility to get more in the short-term, we estimated that we could begin the Lean Manufacturing project and adapt it later if necessary.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 31 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 6 : Why FagorBrandt should launch this approach Taking into consideration these two risks, the managerial decision was based on the fact that we will gain more with this project versus doing nothing, even if we need to modify our planning or strategy in the face of external events.

6.5 Why now The amalgamation of several events led to an opportune time to launch this approach. In addition to the three external factors mentioned, a final but essential element triggered this ambitious project : the encounter between two people who came from different backgrounds, but who held a similar diploma (CPIM*) and a common industrial sensibility. This is the real human factor. These two people are François (one of the plant managers who had been recently hired by our company after a relevant experience in the Valeo Group) and myself (after having been promoted as Manufacturing Director). Immediately, a shared vision was born ; what the industrial performance improvement could be, what the real human and technical opportunities in the French sites are, and as such, towards which targets we could lead the teams. So, to be exact, our Lean Manufacturing story started in July 2007 and this was the beginning of this human and industrial adventure which will be deciphered in the third part of this thesis. * : Certified in Production and Inventory Management.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 32 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 7 : Top management commitment to this project 7.1 Two directions to manage the change From top-down or from bottom-up, these are the two ways to manage a large project of evolution in a complex organisation. Beer, Eisenstat and Spector – Why change programs don’t produce change – Harvard Business Review - 1991 – proposed six steps to succeed in a bottom-up change. They based their schema on the principle that people, with help from management, are able to understand a new situation and are able to imagine for themselves how it is possible to improve. These six steps are : 1. To explain the diagnosis of the company problems and to mobilize workers to begin a process of change. 2. To build a shared vision in order to define a new organisation with new responsibilities. 3. To involve everybody in this vision in developing competences and cohesion. 4. To focus on results and spread the approach to all departments without the imposition from top management, even if some basis mistakes are made by a few people. They could be corrected later. 5. To consolidate these evolutions by formalised structures and systems. 6. To check and adjust the strategy according to the new process and all new internal and external constraints. On the same topic and in the same magazine, John Kotter wrote an article in 1995 entitled “Leading change. Why transformation efforts fail”. He described a similar method but using the opposite approach ; from top-down. According to this author, eight stages are necessary to manage by this way. 1. To create a feeling of emergency by the exam of the market, the worldwide economy, the current or potential crisis, etc... 2. To form a strong guiding team with enough power to drive the change and involve people. 3. To elaborate a vision and a strategy to lead the company. 4. To communicate this vision and use all possible means to show these strategies. 5. To delegate responsibilities in order to eliminate obstacles and modify all systems and organisations which could hinder the target achievement. 6. To plan short-term improvements, implement them and recognise the best players. 7. To consolidate all gains and promote new ones. Continuously, start new projects and new actions. 8. To anchorage these new practices in the company culture and link them to the company successes. Of these two conceptual models described, neither one constitutes a perfect guideline to introduce our project in FagorBrandt. Due to our current descending practises, it felt difficult to start by the method pointed out by Beer, Eisenstat and Spector without destabilize the global chain of management. After some long years of traditional management (top-down), our organisation was not ready for this and the risk was too great to introduce the Lean Manufacturing approach at the same time as a management system change. For this reason, the model of John Kotter was chosen and the deployment was started by top management, as described hereafter.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 33 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 7 : Top management commitment to this project Nevertheless, when the last step of the deployment will be reached, i.e. at the workers level, using the method from a shared common vision to bring about solutions may seem interesting and more productive than a traditional top-down approach.

7.2 Who are involved, who decide, who manage According to James Womack, Lean is a trip, not a destination and to be efficient and perpetual, the Lean Manufacturing decision has to be taken whenever it is possible by top management. This rule is absolutely true but very theoretical. To really be applied, it means that all industrial companies are managed by an industrial boss, or at the very least, by a man who thinks like an industrial one or has just an idea of what it is. In reality, many companies are driven by a financial, a commercial manager or one from another specialty. In many cases, it is the Manufacturing Manager who impulses this approach to his Group. And the difficulties in persuading teams are doubled ; He needs to join downstream teams for the operational deployment and convince top management that Lean approach is essential for the Group. Therefore, to invest a little money or resources in this project could be necessary in the beginning. The FagorBrandt Group is in this latter situation.

FagorBrandt Executive Committee CIO - Trade – Marketing – Finance – Human Resources – R&D – Supply Chain – Legal - Manufacturing

Manufacturing Steering Committee – Lean Committee Manufacturing manager – Factory managers – Industrialization manager

Factory Executive Committee Factory manager – Production – Human Resources – Finance – Quality – Maintenance

Managers All departments

Deployment chain

Technicians & Workers All the factory

Source : AN

In concrete terms, I launched this project at the factory managers’ level in August 2007 and the first presentation to the President and my colleagues of the FagorBrandt Executive Committee was given in January 2008. This lapse of time was necessary in order to prepare a convincing and supported message. After this last meeting, the FagorBrandt Executive Committee gave its green light.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 34 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 7 : Top management commitment to this project After this decision, the complete management of the Lean project fell into the Manufacturing Executive Committee’s hands (as Lean Committee), including the 4 factory managers, the Industrialisation Manager and myself as Manufacturing Manager. All decisions – planning, actions and means of deployment – are made at this level. The project management is based on a Manufacturing Steering Committee member consensus. Due to the Group story, this type of management, definitively introduced by me, has a great influence on the course of the project. This aspect will be more detailed in Chapter 8. Two issues have to be managed by the FagorBrandt Executive Committee : The budget and people. As much as our decisions in these matters match with the yearly financial framework defined in the beginning of each year, the Manufacturing Steering Committee could okay some organisation evolutions or some expenses. All other decisions have to be submitted and discussed with the top management in order to obtain their approval. The last action that was taken by this Committee, and probably the most important, was to create a situation of change for all the teams, with a starting point, a direction and a target. Based on the Lean principles, the project had to convince and mobilize people on three levels (Meyer & Allen – 1991) : - Emotionally : work in a team environment, get pleasure doing the job, have an affective relationship with the project in order to desired performance levels and a personal commitment with passion and energy. - Morally : have a feeling of membership in an organisation with a contract-like understanding between people. - Calculated : work with a desire for recognition by management, salary, advancement, greater responsibilities, more authority in the organisation, etc… However, this level could be unproductive if it is too excessive.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 35 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 7 : Top management commitment to this project 7.3 Decision and coordination loops If a top-down way is used to decide to launch this project, its operational management could not simply use a single organisation method. To reach maximum efficiency, several managerial loops have been created ; some of them vertical, to transmit objectives and guidelines to the industrial teams and to back up all of their ideas and actions, and some others horizontal to assist with communication between people in order to exchange practices and promote a training network

y tor Fac ager n Ma

Manufacturing Manager

Fac Ma tory nag er

Fac Ma tory nag er

y tor Fac ager n Ma

The top level loop works between the FagorBrandt Executive Committee and the Manufacturing Steering Committee. I represent the common point and there is no fixed frequency of meeting. It depends on necessity. The intermediate loop is located between the Manufacturing Steering Committee and the Factory Executive Committee. It meets on a monthly basis and the common point is the Factory Manager. This level is the most important as all the operational decisions are made here. Contrary to the two first loops, the lower level loop is not a vertical connection, but a horizontal one. It is forged by the teams themselves each time a subject becomes transversal. For example, it could be created for training, best practice sharing or transversal audits. According to our industrial culture, this type of loop is not natural and, as we consider them to be very important, we have to pay close attention and incite our teams to organize them. The majority of these meetings provide occasions for knowledge sharing and reciprocal emulation.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 36 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 7 : Top management commitment to this project The stakes are considerable here. They are based on the capacity of each team to share and to perpetuate experiences and knowledge. Through this, the Lean will take on its true dimension in the factories. But what are these stakes ? First of all, it is a managerial stake. As it is explained in Chapter 5, Lean is above all an organisational approach. It is essentially based on people; those who develop the initiative like an industrial strategy, those who deploy it in factories and finally, those who implement, train workers and use it in their everyday life. The challenge is particularly difficult for the middle management (the people closest to workers). These managers will have to explain to workers the necessity to modify their way of working in order to increase the performance of the company. If it is done without example or best practice, the feeling of the workers will immediately be : “my manager tells me that I will work harder, yet without any wage increase, so just for the company. I cannot accept this !”. Secondly, it is a question of time. To be efficient, the Lean approach needs many years. It is not a short-term trip. In the beginning, teams must be conscious that, sometimes, the Lean will induce deep modification of their habits, a long-term commitment and a healthy daily work ethic to progress small step by small step. For this, people must be convinced that the Lean approach is of paramount necessity for their factory. This is the role of the top-management to take time to explain, to demonstrate and to involve all employees in the approach.

Bibliography  Why change programs don’t produce change - Beer, Eisenstat and Spector - Harvard Business Review - 1991  Leading change. Why transformation efforts fail - John Kotter - Harvard Business Review - 1995  www.think-differently.org/2007/06/book-review-john-kotter-on-change.html  Système Lean - James Womack & Daniel Jones - 2ème édition - Editions Village Mondial – 2007  La mobilisation des personnes au travail – M. Tremblay – Quoi, Pourquoi, Comment – Collection ‘Racines du savoir’ – Edition Gestion - 2006

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 37 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 8 : Preliminary phase 8.1 Short definition of this preliminary phase This preliminary phase of the project started from the creation of the Manufacturing Steering Committee, at the end of August 2007 and finished with the first meeting which included all Factory Executive Committee members, in June 2008. This phase covered all the period of creation and the definition of the FagorBrandt Lean approach. The main participants were Manufacturing Steering Committee members. During this step, this committee essentially spoke about the Lean philosophy, not about continuous improvement tools.

8.2 The main reasons of a Lean project failure According to a lot of bad experiences relayed in literature, it is possible to detect the most common mistakes done in a Lean deployment. As it is explained in Chapter 5, the first is to consider Lean as a tool and not as an integrated approach. But, there are many other possible issues : - Thinking of it is as an easy “trip” and forgetting to prepare carefully - Thinking of Lean as simply a question of tool control - Not being ready to make real efforts and put forth a lot of energy - Not establishing the strategy and communicating it to the teams. - Not involving top management. - Eliminating steps in order to gain time or avoid difficulties - Confiding the project to technicians only and not including managers. - Not involving the whole company, from the top-bottom of each organisational structure. - Not training people to gain internal knowledge and perpetuate the system. - Not measuring the real current situation, even - or mostly - if it is not positive. - Not benchmarking other companies. - Wanting to start large action without first running a pilot workshop. - Not communicate on the first successes. - And at the end, stopping in the middle of the trip… This list is not complete, but shows that there are already a lot of known reasons for a Lean deployment failure ; All the more reason for the FagorBrandt Lean Steering Committee to prepare the FagorBrandt deployment with the maximum of attention. This is the topic of this current chapter.

8.3 Starting assumptions Beyond the 3 reasons described in Chapter 6 (economical, industrial and managerial), the launching of this project has to take into account a bad experience in 2004-2005. During this period, the previous top management team, led by the Quality Manager, launched a complete program in order to create a complete production system called the ‘’FPS” – FagorBrandt Production System. Firstly, based on the Valeo model (the company from where the Quality manager came), they chose to write all the new procedures and standards with a very little team input. Secondly, they imposed these new rules on each factory, telling them to work in accordance with them. With a limited number of meetings and a heavy hand, they tried to convince all operational teams to accept this new system and change all internal processes.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 38 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 8 : Preliminary phase As nobody was prepared to change, and because the new system was very different from the effective methods already in existence, the result did not meet expectations. Consequently, top management spent a lot of energy, but saw minimal return. In addition, in order to have an easier managerial control, this top team had literally separated each factory and each department. ‘Divide to have a better control’ was the practice in those days. Meetings with factories were held separately and the different factory managers did not have any working relationship, except sometime by phone. Today, there still are two remaining elements in our company from this period : a positive one, with a Quality System used for the ISO certification and a negative one with an great distrust, or even a real opposition, for big projects, which come from top management. This last point will be deeply incorporated in our thought as to “how to manage the deployment with the factory teams”.

8.4 Identified resistances and potential accelerators The resistance could be identified by following two groups of workers within the company structure : the managers and the employees. Regarding the managers, the resistance could be translated as inaction or inappropriate actions. Several reasons have been identified by Weitzel & Johnson (1989) : the facility of ‘laisser-faire’, the cost and the perturbations of the change, the fear of the defeat, the fear of the unknown, etc… Regarding the employees, there are two types of resisters : - The ambivalent – those who wait for real results before they understand the global situation and commit themselves. - The opponents – whose who clearly react against the change. They concentrate their energy on creating obstacles in order to stop or to slow the project. Moreover, when the resistance is passive (absenteeism or lack of motivation), it is more difficult to locate. This behaviour is not critical and has to be considerate as legitimate reflex. But, it is a source of perturbations which must be identified and controlled. On the other hand, some managers and employees are immediately ready to accept the change. Usually, they think that there are more risks by staying immobile than there are, by doing something. They are curious, able to control their fears, and prefer to look toward the future rather the past. When the project was launched and the first steps were taken in August 2007, the Manufacturing Executive Committee was composed of three categories of people : - One factory manager and myself were fully convinced of the probable positive outcome presented by this opportunity. This manager had had a previous experience with the Lean approach and knew the positive expected results. His level of uncertainty was close to zero level. - Three managers were in need of further information. They had neither positive nor negative ideas on the Lean approach due a lack of knowledge. They were simply convinced of the necessity to change something in our manufacturing area. - One of them was opposed to the project. He was very independent and had some difficulties to work well with the other team members.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 39 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 8 : Preliminary phase Having no knowledge in Lean Manufacturing further led to some loss of his authority in his factory. Besides, he left the company a few months later. The preliminary step was to recreate a team ; in fact, to gather a group of people from various levels and to develop a common vision and target. According to M. Barabel and O. Meier - Manageor (2006), three principles govern a team : - The principle of finality : the team is rallied around a project with common goals and it perform tasks according to shared targets. - The principle of unity : in order to favour cohesion, the team develops a feeling of membership and works together in terms of adhesion, implication and cooperation. - The principle of diversity : because each team member is different, this diversity brings wealth and opportunities to the group. By managing and validating these differences, a creative dynamic is formed. The four fundamental tasks of this ‘new’ team were : - To chose a name  the CODIM (in French : COmité de DIrection Manufacturing) - To share a common project  The Lean Manufacturing approach, - To schedule long-term agenda of regular meetings in order to work together. These meetings would be organized in all factories, each one in turn. - To recognize that each factory and each team in these factories had their own qualities and specialties. This last point has been fundamental and has deeply influenced our approach of deployment. It will be explained in Paragraphs 8.5 and 8.6.

8.5 Notion of Group Culture In the eighteen’s, E. Schein and F. Bournois have defined group culture as a system of ways to think, to feel and to act which are shared between all members of a same organisation. So, it is essentially a collective phenomenon used in order to adapt the internal structure in face of external aggressions, a kind of survival reaction. A company culture regroups specific values, beliefs, standards, vocabulary, history, experiences and practices. It is based on a real process of identification and social membership. According to this definition, each organisation has its own culture and each entity within each organisation also has its own culture, more or less issued from the Group. But this is not static and can change, whether according to external events such as another group buying or strong market evolution, or caused by internal reasons such as growth, top management team modification or a strategic project. Contrary to that which was previously described in Paragraph 8.1, the Codim decided to take into account and to respect the cultural differences between each facility. Moreover, the target was - thanks to them - to use the best of all the teams by the mobilisation of each member. Our project deployment had to be enough flexible to be adapted to each factory, while at the same time ensuring that each action converged with the global goal. Historically, there were two cultures in opposition to one another in our Group ; that of the washing division and that of the cooking division. Twenty years ago, the washing market was the priority area for our Group.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 40 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 8 : Preliminary phase These factories were the biggest and accounted for the majority of the profit margin. For the last fifteen years, the situation has reversed and the cooking division is now the most profitable. Consequently, all actions launched in cooking were bad for washing and vice versa. This hidden antagonism posed a real problem for the forging of links between teams, irrespective of level in the hierarchy. Fortunately, some actions have been taken for the past several years, such as the transferring of cooking managers in the washing factories. When this project was launched, the situation was not so critical, yet not all teams were ready to work together willingly. The gaining of mutual respect will be a long road strewn with obstacles, but there are many reasons to be optimistic, especially thanks to the young managers working in our entities – Past experiences do not cloud their mind.

8.6 A previous failed experience Before speaking about operational details in this project, it is important to mention a previous failed experience in terms of industrial plan deployment. This story still was in the mind of many people in the factories and could introduce an important source of resistance. In 2005, the Group Quality manager in those days wanted to introduce a global Quality System called the FPS (Fagor Production System). He came from Valeo Group and intended to reproduce this model in our company. To start his project, he formed a special team of four Quality managers ; one focussed on the ISO System (International Standard Organisation), one on the supplier monitoring, one on the factories and one on the Research and Development departments. All of these people had a specific supervision job and worked with all teams for using the Quality tools. They more involved in respect of the System than to participate in the teamwork. In addition, based on his previous experience, this manager written a complete book for his Production System and imposed it as the unique reference. Even the idea was very good and its targets were respectable, from the team’s viewpoint, this top-down approach felt like an artificial system which made independently of their real problems. According to our analysis, the main lacks of this project were : - A real missing communication, from the beginning to the deployment. - No team listening and no participating in the target definitions, from top-management to operational teams. - A system to control people more than a system to help them. - An imposed and rigid System too far away from the reality. - A Quality team which had not conducted the deployment on the field but from their offices. Taking into account this failed (and very expensive) operation, and in addition with the other risks mentioned in Paragraph 8.2, the Lean Committee tried to define a strategy to avoid falling into the same traps.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 41 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 8 : Preliminary phase 8.7 Choice of ‘’how to do it’’ In the beginning, that was one of the most important issues discussed in this project. Escape this fundamental question and no team would be ready to follow the proposed approached for a long time. Our target was to find an opportune answer as a stepping-stone, which would be strong enough to promote a healthy existence. In 1973, Peter Drucker observed that “the most important reason of frustrations and failures in companies came from a lack of reflections on their rationale and their mission”. And in addition, thanks to these reflexions, companies have to define their vision, strategy, values and behaviours which govern them. According to this, if it is true for a global company, it is also true for a strategic project. This is the reason for which the Lean Committee started its job by defining all these elements, except for values (which will be discussed later). A name The first task was to find a simple, yet encompassing name, with a word and a target date. - ‘Manuf 2010’ was the first name, but it was abandoned after a few weeks. In order to obtain a professional opinion, this name had been proposed to our Communication Department. According to their analysis, the word ‘Manuf’ was viewed as simplistic, restrictive and not status-enhancing when it was applied to the Group industrial strategy. So, after a short creative meeting, some other proposals were put forth, such as ‘Performance’, ‘Ambition’, ‘Challenge’ or ‘Energy’. Finally, the original word was transformed into ‘Manufacturing 2010’ for two reasons : to make a natural continuity with the previous one (already diffused in the factories) and because we are identified as the Manufacturing Department in the FagorBrandt Group. - 2010 : three years from the launch was the date chosen, as it allowed for the appropriate implementation of the Lean process (including obtaining the preliminary results), yet it was that has not too far off to be widely appreciated and accepted. Moreover, three years is a time period that has often used for industrial and commercial plans, and therefore people are accustomed to working with this duration. Of course, ‘2010’ is not the end of this approach, but just an initial target for the first step. After 2010, the next horizon date could be ‘2013’ or ‘2015’. It will depend on the ability of each factory team to project itself in the long or in a medium-term. A sentence A name and a timeline were not sufficient and the Lean Committee wanted to add a short sentence to relay the Group’s vision. The verb and a ‘superior’ word, which were chosen, elicit the desire to go further. As it is not really possible to translate the French sentence, literally “Créons l’Excellence”, the English version is : “Towards Excellence”. This last sentence will be used for the future Spanish and Polish deployment.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 42 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 8 : Preliminary phase A graphical representation A name and a slogan were not sufficient. We wanted a graphical representation of our project and for this, the Lean Committee decided to use the most traditional one : The Lean House created by Toyota. Like many users of this picture, we have adapted it to our specific approach. Therefore, the Manufacturing 2010 house has been built with three steps (two for Toyota), four pillars (two for Toyota) and one roof (same).

Three attitudes F. Alexandre-Bailly, D. Bourgeois, JP. Guère, N. Raulet-Croset, and C. Roland-Lévy (Comportements humains et management) defined attitude as a state of mind in order to react in a certain way in the face of a particular social circumstance. It is based on three interconnected components : One is a cognitive component which refers to faiths and corresponds to a private experience, and another component is emotional, which is related to socio-emotional phenomena and expresses itself as an attraction or a rejection. Finally, a third one, a operating component, corresponds to an intention to act and is associated with behaviours. The attitude assumes four essential functions : knowledge, adaptation, expression and selfdefence. It is difficult to identify natural attitudes of a person, and, even more so, of a group of people. But there is a strong relationship between attitude and behaviour. So, if it is possible to give some attitudes as a referential, then it is possible to influence the behaviours. In this project, our intention was to provide guidance to mentally prepare people for the changes ahead. So, we have chosen three words, which have both industrial and individual references, because one’s attitude was not formed around one’s professional life alone. Upon, the three steps of this ‘House’, these three attitudes have been written : Flexibility, Quality and Punctuality. Symbolically, these attitudes represented the foundations of the FagorBrandt Lean approach.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 43 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 8 : Preliminary phase Another question was : Why ‘attitudes’ and not ‘values’ ? Firstly, it was not possible to use the term ‘values’ because the FagorBrandt Group had already defined five managerial values (Leadership, Ambition, Audacity, Adaptability and Commitment). The Lean Committee wanted to avoid any confusion between the Group ‘values’ and some Lean ‘values’. Secondly, as it was explained above, it was important to promote an idea of moving forward to be ready to do something different. These outlines for each attitude have been used to explain and convince teams to adhere. Why ? Because, it was fundamental that teams understood and integrated our approach’s philosophy before speaking about any improvement tools.

Flexibility Why ? - Our customers move every day and we need to adapt our organisation permanently. - Some competitors need six weeks to deliver these products in Europe and we only need one day. - We have to work with the right dimension – not too much, nor not enough. How ? - In our way of thinking : A reason is not the best just because it is already establish. - In our reactions : A process is not the best one just because we have always processed like this. - In our production process : It is not impossible just because we have never done it. Quality Why ? How ? -

Our growth and survival depends on this. Achieving success the first time enforces the pride felt by our teams. Quality is fully part of the respect we have for our jobs. The Quality of our products will make the difference against our competitors. The Quality of our services is the way to recognize our professionalism.

Punctuality Why ? - A client cannot wait for us. - To be the first one in a market is a strategic advantage for sales. - Internally, many people lose time due to our delays. How ? - Punctuality is a real personal quality. On-time respect is a voluntary target. - It is true in our commitments, in our meetings, in our responses and in our deliveries.

Four pillars As do the attitudes, the pillars carry with them a symbolism : to elevate, to show the direction of our actions towards our target. These pillars represent the four axes of deployment, which are the areas where teams need to concentrate their attention : People, Measurement, Continuous Improvement and Customer Requirement.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 44 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 8 : Preliminary phase For each pillar, the Lean Committee chose some specific elements upon which to focus all action. (were no limitations necessary, many other aspects could have been looked at end, and, the deployment in each factory would have been able excessively divergent. People

-

Campus des managers (Manager training) Annual performance meeting Internal factory communication Employee training Management of competences Employee Reviews New workers’ integration Acknowledgement Job exchanges

Measurement

-

Balanced Score Card Visual Management Frequency measurement Reliability measurement Comprehension of indicator (employee education) Material and workforce productivity

Continuous Improvement

-

5S (Organizing and cleaning) GAC (Quality improvement workgroups) PDCA (Action plan methodology) QRQC (Quick Response Quality Control) 7 Muda (Waste management) VSM (Value Stream Mapping) Irritants (Ergonomics) Competence networks

Customer requirements

-

MRP2 (Manufacturing Resources Planning) Synchro (Phase-in and phase-out Schedule) S&OP (Sales & Operations Planning) System homogenisation Physical and information flow mapping Finished product inventory reduction

The deployment in each factory As it has previously been explained, there are historically two ways of working in our Group ; cooking and washing. Despite our efforts to eliminate or reduce them, it was impossible, even unconscionable, to by-pass them. It was too early for that. After long discussions, the Lean Committee decided to take this fact into account and organise the project according to these differences. If the advantage of this decision was evident, the new risk appeared immediately : creating a very divergent deployment and as such, an increase in differences between factories. Now, we wanted Lean Manufacturing to be gathered in teams.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 45 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 8 : Preliminary phase In fact, the theoretical answer was included in the Lean principles : pilot runs, best practice exchanges, etc…

Choice of internal communication In 1948, H.D. Lasswell defined a linear process of communication in five points : Transmitter

Message

Channel

Receiver

Impact

During the same period, an American engineer, C. Shannon formulated a similar process adapted to telecommunication systems : Transmitter

Encoding

Message

Decoding

Receiver

He wanted to propose a mathematical analysis for the signal transformation. His model is still used as a reference for the communication sciences. These models pointed to an important lack : there was no feed-back or retroaction loop. This communication was unidirectional. Now, it was mandatory to evaluate the efficiency of the communication. N. Wiener, a cybernetician, modified the linear model by the addition of this priority element which takes into account the reaction of the receiver. According to him, there were four steps in a communication process. The feed-back was used to regulate the exchange of information and to help understand the content of the message. It guaranteed the reliability of the system. Message Transmitter

Receiver Reaction

In our factories, there already were several existing channels of communication. Some of them, dedicated to the managers, were made by the top management, and some others, made by the middle management, were dedicated to the workers. Some of them were created thanks to meetings and some others thanks to internal newspapers (paper or through electronic mail). According to the type of the message and its target, a particular channel was chosen. Meetings were selected each time the message needed being transmitted quickly, directly and needed getting feed-back according to the N. Wiener’s model. The communication attached to our Lean deployment will primarily use this channel. To go with the deployment, in addition to the traditional channels of communication already implemented in our factories, the Lean Committee had the idea to communicate through posters in workshops. Several different posters would be used, and on each, an image of a Group appliance and some words in relation with our project.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 46 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 8 : Preliminary phase A product image was chosen because people in our company are proud of their jobs and the accompanying words promote a common language. We hired a young probationer in communication to help us with this job. After speaking with our Communication Department and obtaining the Group’s graphic codes, he created about twelve posters, like the two samples below.

After three months of working on the posters, these communication supports were again presented to the central department of communication in order to coordinate their use with the rest of the communication strategy. Then, a surprise turn of events : during the same period, the graphic codes of the Group had changed without informing our probationer. His work was no longer line with them. Due to our disappointment and as our probationer had finished his training course, the head of communications promised to help us transform these posters to meet the new codes shortly. However, nearly one year later, nothing has been done. So, we have momentarily abandoned this idea. The Lean Committee is keeping the poster idea as a possibility to relaunch in the future if necessary, but not as a priority for communication in the factory. Instead of this, each plant manager has focused on the Lean deployment communication through the existing supports : - A monthly 2 hours meeting dedicated to the managers to review the previous results, and to inform about the Group news, the market’s main figures, and the forecast for the coming month. - A monthly 30 minutes meeting dedicated to the workers in order to redistribute this information in the workshops. - A daily 5 minutes meeting dedicated to the workers, but at the level of each production line, and fully focused on the daily production events : results of the previous day in terms of quality, quantity, security and actions in progress.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 47 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 8 : Preliminary phase - In addition, every week, an internal communication note which synthesizes all these data is sent by e-mail to all employees equipped with a computer. So, there were four different ways to relay the Lean message in the factories and each plant manager has used them according to his own strategy and his own level of deployment. Last possibility to communicate on Manufacturing 2010 and the Lean deployment ; use of the FagorBrandt Intranet computing network. After a discussion with our head of communications, a project to open this website to other departments than only Communications and Human Resources was in progress. Included in this study, it would be possible to open a specific area for the Manufacturing Department. This opportunity will not available before the end of 2009, and possibly 2010. In the meantime, only the means described above have been used in every industrial site.

8.8 With or without external assistance During the deployment preparation, the Lean Committee thought about its capacity to involve people in this approach without any external assistance ; external assistance meant specialised consultants. The important question was about the knowledge of each factory manager, and their ability to launch and manage the Lean approach in his plant. This concern was fundamental according to one of the previously identified dangers : Focus on tools and forget the global vision. The first answer to our question needed not be a concern as the factory managers were confident in their ability to start as usual. They all have extensive management experience and known their teams well. It was not the first time they launched an industrial project and if they did like before, there was no reason why they would not be able to reach this target now. They just have to forget that the last industrial project was a failure… Secondly, the beginning was always easy and so there was no reason to pay somebody to get the first results and thereby spend unnecessarily. On the other hand, all documents and books explain that specialists are indispensables they are able to greatly to help you on this journey. Large companies such as Valeo, Forecia and Renault have gone with Japanese mentors called ‘sensei’ or ‘senseï’. This Japanese title refers to ‘masters, and teachers who guaranteed their knowledge and their experience’. Conscious about the general lack of Lean knowledge of the industrial teams, the Lean Committee decided to hire some small consulting companies, which were selected for their skills, their proximity to the industrial sites, their availability and the cost of their services. And in order to avoid the same mistake as describe in Paragraph 8.6, these services were only paid as and when actions were launched in each factory. The purpose of this strategy was to ensure that some work meetings, called ‘training-action’ regularly occurred with these specialists, so as to learn their practices and be able to reproduce them in other workshops without them. Moreover, whenever it was possible, some collaborators from other plants would join these workgroups and were able to deploy the same practices in their own departments. With this experience, the Lean Committee has verified that this method was very efficient and not too costly.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 48 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 8 : Preliminary phase 8.9 Industrial benchmark Another way of learning ; to visit other companies which had already started to implement Lean Manufacturing. With the contacts established locally by the different plant managers plus their previous experiences, it was not too difficult to find some factories willing to welcome us and share their industrial methods and results. As such, the Lean Committee has visited several plants, mainly in the automotive and electrical equipment industry. Additionally, during a ‘Lean Summit’ organised in Lyon by The Lean Enterprise Institute (www.institu-lean-france.fr), the Lean Committee attended some conferences, talks, and participated in some Lean workshops. These exchanges of ideas and insights were much appreciated, informative and helpful in the development of our project. Other contacts have now been made in order to find some new opportunities for visits which, of course, would be reciprocated. Furthermore, due to the interest of these experiences, the Lean Committee has decided to organise the same type of visits during the operational deployment, for some of their collaborators – managers and employees. The target was two-fold : first to learn theoretically and by practice about Lean, and see what kind of results were obtainable, and secondly, these visits could be used as rewards for the best performers in each factory.

8.10 Planning of deployment This schedule details the initial main steps of the FagorBrandt Lean project. As shown, we forecasted about 18 months for this mandatory phase, from the starting point to the first real actions in the factories. This period might seem long, but it was necessary to build a sustainable project. It was also the choice held by the Lean Committee to include all the teams of the company in this approach, from top-management to all the employees.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 49 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 8 : Preliminary phase

Bibliography  Manageor – Michel Barabel, Olivier Meier - Les meilleurs pratiques du Management – Edition Dunod – 2006  Transformer l’organisation – R. Jacob, A. Rondeau, D. Luc – La gestion stratégique du changement – Collection ‘Racines du savoir’ - Edition Gestion – 2002  Comportements humains et management – F. Alexandre-Bailly, D. Bourgeois, JP. Guère, N. RauletCroset, C. Roland-Lévy – Editions Pearson Education – 2006  La mobilisation des personnes au travail – M. Tremblay – Quoi, Pourquoi, Comment – Collection ‘Racines du savoir’ – Edition Gestion – 2006  Objectif Lean - J. Drew, B. McCallum, S. Roggerhofer - McKinsey & Compagny - Eyrolles Editions d’Organisation - 2008  Système Lean - James Womack & Daniel Jones - 2ème édition - Editions Village Mondial – 2007  The Structure and Function of Communication in Society - H.D. Lasswell - Harper & Brothers – 1948  The Mathematical Theory of Communication - C. Shannon - University of Illinois Press - 1949

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 50 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 9 : Deployment phase 9.1 To the factory boards According to R. Jacob, A. Rondeau and D. Luc (Transformer l’organisation), change is defined like a managerial strategy, especially if it involves a question of values and attitudes. And as a result, it needs a balance between inertial resistances and change forces. In case of strategic changes, their observations show that it is preferable to lead the evolution by one group of people and to manage the daily activity change by another. In fact, if the two phases are done by the same team simultaneously, the inertial resistance would be stronger than the change force. To induce a deep change, the organisation needs people to receive a strong and almost provoking message. To manage and stabilize the organisation, it needs the opposite attitude. As it is demonstrated in ‘Objectif Lean’, by J. Drew, B. McCallum and S. Roggerhofer, the Executive Committee in each factory has to share a clear vision of their final goal, define the target they need to reach, and how they will measure the evolution. Based on this, they could build a coherent scenario to involve and communicate to all employees regarding the target and the way in which to reach it. Moreover, they could develop a precise schedule; evaluate the requested knowledge, resources and competences. Finally, they could delegate a specific role to each team member. After defining the FagorBrandt strategy, the message, etc… the moment had come to commence the change into plants. Of course, the first group of people who had to receive and understand this new approach was the Factory Executive Committee. So, it was important to create specific parameters in terms of location, time, and activity. The Lean Committee’s intention was to use the ‘3E’ method : Explore (Understand needs and share ideas about possible solutions), Engage (Work together on the vision definition and agree on respective roles and specific objectives) and Execute (Transform the vision in reality and evaluate progress regarding targets). It was at this meeting that the first two steps of this methodology were applied : For the first time in a very long time, all the members of the Factory Executive Committees were gathered in the same place and at the same time. To focus their attention towards training, the place chosen was a university, in fact, a business school. The duration of this ‘Lean University’ was one day and half. - The first half-day was dedicated to team building with a sports activity. The obvious objective was to promote from the initial onset two feelings in the group : The first one focused on team spirit, cohesion and a desire to work together. The second one was oriented to team competition and the win desire. These two feelings were useful for the next day’s activities. So, the Lean Committee chose a go-carting challenge. Four teams, like fours factories, but the Factory Executive Committees were mixed. And just before dinner, the brief, yet strong meeting was held to introduce ‘Manufacturing 2010’ : our current situation, our new and ambitious targets and what we are going to do together to reach them. It was the first ‘E’ of the ‘3E’ schema : Explore. The conclusion of our first day … a resting of bodies and minds in a convivial atmosphere shared around a meal !

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 51 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 9 : Deployment phase - The second full day was dedicated to working on the Lean project. It was the second ‘E’ : Engage. There were three main parts : two periods to work in a group and a third one to discover an external experience led by an out-of-group intervener. During the first part, time in a group was focused on analysing the plant’s current situation according to the four pillars of the Manufacturing 2010 house : People, Measurement, Continuous Improvement and Customer Requirement, (see Paragraph 8.6). So, for the first workgroup session, all Factory Executive Committee were mixed, and then divided into four groups. They then had to develop a SWOP analysis about these four questions : How to commit our teams to Manufacturing 2010 ? How to make measurement improvements to increase our performance evaluation ? How to implement a efficient continuous improvement dynamics ? And how do we identify and evaluate the real customer requirement ? Following the group work, all Factory Executive Committees reconvened and the results of their analyses were shared. The benchmarking presentation was very interesting because a lot of managers had never seen how a Lean company was organised. Demonstrating this process by way of example was, therefore, very effective. For the Lean Committee, the target of this morning period was to demonstrate that they were able to work together, to inspire a feeling of confidence within each person and to provide an overview of how a company would work with a Lean approach over a long period. The afternoon was dedicated to working in their respective factory teams. Each Factory Executive Committee was to take back the SWOT analysis done in the morning session, follow each pillar, extract three weaknesses in accordance with their factory situation, look for solutions to rectify them, and develop a 2008-2009 action plan. As has been done in the morning, all Factory Executive Committees again reconvened and these analyses were shared. Each Committee had to react and comment on the action plan defined by the others. For the Lean Committee, the afternoon session was to enable for each Factory Executive Committee the opportunity to create a Lean action plan (what, who and when). It was the first milestone of their own Lean approach. The last part of the day was dedicated to summarizing this primary ‘Lean University’. Each person was invited to voice both positive and negative views of these two days and what he would expected for the next session.

According to the Lean Committee, this ‘Lean University’ was very interesting and encouraging with respect to several aspects : - Top-management commitment : The Lean Committee was able to present to the Factory Executive Committees a coherent, quantified, and developed vision of the industrial project. As such, all managers were given a clear overview of the next year’s direction of the manufacturing activity in the Group. - People involvement: Globally, all managers were interested in this project, the Lean approach, and the possibility of improvements created by it. They were in high spirits and worked diligently on each analysis.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 52 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 9 : Deployment phase - People participation : in many books, Human Resources are classically described as Lean resistant. It was true in the beginning, some people were very leery, but after the gocarting challenge, everyone participated equally. Moreover, this race established a friendly and constructive atmosphere for the two days. - Output results : Each Factory Executive Committee, with its manager, left the session with the desire to deploy the Lean approach in its factory, thanks to the action plan they had defined. They knew the final target, they analysed their site’s current situation, and they formed an initial idea about how to start working towards their objective. - A final message in 6 points : o The Lean approach in each factory needs to start with the top-management. o Each Factory Executive Committee has to set ambitious targets for its site. o Start with easy, but representative victories and transform them into best practices. o Listen to your teams. They have many solutions that you yourself may not imagine. o Use external competences to help you (benchmarking, consulting). o Be patient. Lean is a long journey. This step was important for another reason. Just as it was fundamental to involve each Factory Executive Committee member in this project, it was also fundamental for the plant managers to determine as soon as possible if all these people were in accordance with it and were able to support and transmit the Lean philosophy in their teams. In fact, after the ‘Lean University’, two or three collaborators were identified as ‘fragile’ in this organisation. But, at that stage, it was not possible to know if they will not or cannot follow through. So, the Lean Committee’s decision was to personally supervise and help them in training. After a probation period, if they were unable to produce what their manager asked of them, some decisions would have to be made, as to whether or not a new position or new job, in or outside the Group would have to be assigned.

9.2 To the middle management According to Linda Rouleau (Transformer l’organisation), middle management is in the centre of the organisation for specific reasons. During recent years, the reduction in the number of hierarchical levels and managerial positions has had some considerable effects on the practices of this category of collaborators. These large transformations have induced a deep uneasiness both professionally and personally. Some specialists did not hesitate to make this link known. One of the problems identified was the trap of double messages. For example, when topmanagement wanted to make this management level sensitive to the importance of the quality and the Client service, they continued to evaluate the performance in workshops on their short-terms efficiency rate at the same time. Other case, when top-management asked employees to trust them and remain loyal, when in the long run, they needed to let some employees go. Middle management was at a dead-end ; If they followed the new directive, they were penalized, if they did not follow it, the result was the same. On the other hand, again in ‘Objectif Lean’, J. Drew, B. McCallum and S. Roggerhofer deemed the relationship between top-management and the operational teams to be essential - not only because it was a Lean deployment, but this approach did certainly make it compulsory. The authors explained that it was not sufficient to demonstrate the Lean benefits to topmanagement alone. They had to be made known to all the employees. Moreover, it was the operational management who had to implement the approach and navigate it every day in the workshops, not the top-managers.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 53 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 9 : Deployment phase For these reasons, it is easy to understand why top-management in each factory had to take time to explain and convince their middle management regarding Lean manufacturing. It was the indispensable wheelwork between them and workers. In accordance with our global strategy of deployment and before starting any communication in the workshops, each Factory Executive Committee had a difficult job creating and writing their own projects in detail. During short seminars, the teams worked to define : - Their main message to their middle management based on the Lean general process. In fact, how the Lean approach could be adapted to the local history. - By which methods or tools they wanted to begin. - How a Lean expert team could be organised in order to help the Lean actions. - How Lean could be broken-down and defined in each department (leader, schedule, pilot action, etc…). - What their measurement means were (tools, indicators, frequency, targets, etc...). - How the best practices and best teams should be highlighted and rewarded. At the end of these seminars, each factory had written a ‘contract of management’ in order to jay the foundation of their commitment for this strategic project. These four documents are still accessible on our computer network and could be consulted by anyone in the Manufacturing departments. Two different examples to illustrate what some of these contracts entail : - One factory chose to focus the Lean introduction trough ‘5S’ actions. Consequently, all employees, from top-management to the factory workers, were trained during a two-hour period by an external consultant, and each person had a personal action adapted to his environment. The results were quick and spectacular. But the main benefit of this global action was mobilising everyone in the factory towards the same target. This demonstrated that Lean was easy, concrete and concerned everybody in the organisation, not only the managers. - Another factory chose a more technical start. They identified a specific product with a complicate flow in the workshops, and they have developed a VSM (see Appendix Glossary) with the concerned teams. In the beginning, less people were involved in this approach, but this action was the best possible choice and evidence of this has been shown throughout the factory. Some other VSM were launched later on. Back to the middle management. How do we organise communication to ensure that each of these managers will be transformed into a Lean leader ? In each plant, several management meetings were held to explain what the Lean was and what the Group’s long-terms strategy through the Manufacturing 2010 project was. One of the most important points was to clearly convey the advantages for these managers in using this approach : - Greater proximity with their operational teams due to daily actions. - Developing new reasons to motivate and commit people by visible and useful actions. - Reassume the word in front of the unions through very short daily meetings. - Participation in a global plan in favour of factory competitiveness, i.e. work for the future. - Learning new skills and other ways to work. Re-examining our current practices. - Rewarding their team for achievements, using things other than money (visit of other Group factories, visit of external companies, etc…). - Be included in the expert Lean team and work with the other workshops.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 54 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 9 : Deployment phase As some Factory Executive Committee members, not all middle managers were ready to commit themselves to this project and engage their energy in face of an unknown, and maybe, according to them, an uncontrolled evolution. Their reactions were quite normal, and for some of them, they were almost anticipated. Fortunately, these were only few. One thing was sure; leaving some managers out of this strategy was not an option. Fir this reason, the first job of the plant manager was to develop convincing arguments, include them in workgroup, help them through training, and in the end, if necessary, a threat could be a good motivation. On the contrary, some of them were really enthusiastic, so enthusiastic that they were ready to revolutionize the workshops. As Lean is more of an endurance race than a sprint, this excessive reaction was not necessarily better than the great resistance, but much easier to channel. These managers were nominated as workgroup leaders, in addition to having their daily responsibilities. Moreover, they have participated in the Lean Committee of the factory. Without a doubt, these people were the real leaders of the Lean project and they were able to inspire their teams in the workshops. To be complete, running in tandem with Manufacturing 2010, the FagorBrandt Group launched a large program of managerial training called ‘Campus des managers’. Without any links between the two initiatives in the beginning, the target of Campus was to bring to each manager to the same base of managerial knowledge and practices. During two sessions of three days, these teams of six or eight people worked on the Group’s values and defined the attitudes and practices of a ‘good’ manager (meeting management, face-to-face interview, etc…). After these two modules, a final session was introduced and each group had to choose between several items, including Lean Management. Not defined in the beginning of ‘Campus des managers’, this Lean module was added in accordance with the request of the Lean Committee and it was accepted by the Group’s Human Resources Manager. It was a good illustration of the combined interest between the two departments.

9.3 To the workers The last - but not least - phase of our deployment was regarding the workers. As much as we considered the middle manager’s engagement in the Lean approach, we paid as much attention on the workers. The main reasons of this were that : - This population was the key to success, even if the level of interest in their daily job was not very great (which could also represent an opportunity). - Their potential of acceleration was equal to their potential of resistance. - Due to these above mentioned issues, we needed to succeed from the start. As the situation was not the same, the solutions were not the same. The Lean Committee, with the Factory Executive Committees, decided to deploy the Lean approach only on real actions in real situation (remember Gemba - Paragraph 5.7). All training was done using real situations and concrete cases.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 55 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 9 : Deployment phase Among the encountered issues, and in putting aside people who were clearly in resistance, some of them were more difficult to manage : - Production of intangible factors during the Lean actions. - The competence of each employee to create or propose an evolution and the speed of this evolution. - The internal workers’ mobility between assembly lines or between workshops. Whatever the situation, we always paid attention to the health and safety of the people during tests and pilot sequences. In practice, every department of production or assembly has defined its own action plans and constituted its workgroups in accordance with the factory plan. In order to create a positive stimulation between these groups, several kinds of rewards have been established : - For small actions, a group would present their results, in person, to the Factory Executive Committee. These meetings would be organised as and when the workgroup completed its job. Some presents could be distributed at the end of the meetings. - For other actions, during the monthly factory review Score Card meeting with the industrial top-management, the two selected workgroup would explain their job and the results. - For the best practices, the plant management would organise some trips outside the factory. For example, to visit other Lean industrial sites (benchmarking), to visit our central warehouses, etc... These rewards could seem simple, but their impact on workshops has been considerable. After these visits, employees would greatly discuss what they had seen and create a sort of expectation and desire. In our case, it has been a positive attitude for everybody. - Finally, twice a year, Comex (FagorBrandt top-management) would go to each factory and the best practices and the people who had worked for these successes would be presented and acknowledged.

9.4 Pilot actions The follow section provides some examples of the first actions deployed in the FagorBrandt factories. Some of them are very representative of employees’ involvement or demonstrate the efficiency of a Lean approach. In any case, all of them have been selected as the best practices to promote our project. They have been presented to FagorBrandt Comex to credit all managers and employees who contributed to these successes.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 56 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 9 : Deployment phase a. Best practice of ergonomic action combined with 5S operation Before

After

Main results : - Better workshop environment and better visual management of the process. - Better quality of production. - Better flexibility for these subassembly operations.

b. Workgroup on distance and organisation issues ; Production flow optimisation Before

After

Main results : - Active and efficient participation from employees of this workshop. - Distance reduction : Saving of 23% (410 km per year). 5.9 steps for gluing operation (value added) compared to 7.8 steps previously taken. - Improvement of production rate thanks to the Muda reduction (moving and organisation).

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 57 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 9 : Deployment phase c. One of the best 5S actions on a painting installation. (investment : less than € 3 500) Before

After

Main results : - High commitment of the team to this action and reappropriation of their workshop

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 58 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 9 : Deployment phase -

Better work environment and better visual management of the painting process. Better visibility for the maintenance operations. Very best practice for the factory.

d. Value Stream Mapping (VSM) of a complete processus. Before

After

Main results : - Six inventory locations have been cancelled. - Four inventory locations have been moved. - Two value added operations have been brought together. - The running time has decreased from 11.7 days to 5.5 days. - The batch size has reduced from 5000 pieces to 500 pieces (with a SMED action). - Muda reduction = + 29 % of value added.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 59 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 9 : Deployment phase Tangible results after 18 months Independently from the great and positive emulation created in all factories, it was necessary to measure the positive action of this Lean approach through some classic indicators. The Lean Committee selected three main indicators, as they were linked to Quality, Flexibility, Punctuality, and also to the Cash flow. These indicators were the Finished Product Inventory Level, the Customer Backlog Level, the Rupture After-Service Level and the Productivity Rate. The charts are below and do not need any comment.

FINISHED PRODUCT INVENTORIES (Unit) - 2007 / 2009 300 000

250 000

200 000

150 000

100 000

50 000

09 no v-

pt09 se

l-0 9 jui

ai09 m

ar s-0 9 m

v09 jan

08 no v-

pt08 se

l-0 8 jui

ai08 m

ar s-0 8 m

v08 jan

07 no v-

pt07 se

l-0 7 jui

ai07 m

ar s-0 7 m

jan

v07

-

CUSTOMER BACKLOG (Unit) - 2007 / 2009 16 000

14 000

12 000

10 000

8 000

6 000

4 000

2 000

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

09 no v-

pt09 se

l-0 9 jui

09 aim

ar s-0 9 m

-0 9 jan v

08 no v-

pt08 se

l-0 8 jui

08 aim

ar s-0 8 m

-0 8 jan v

07 no v-

pt07 se

l-0 7 jui

07 aim

ar s-0 7 m

-0 7

-

jan v

9.5

Master Thesis - 60 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 9 : Deployment phase

RUPTURES SERVICE (Unit) - 2007 / 2009 5000.0 4500.0 4000.0 3500.0 3000.0 2500.0 2000.0 1500.0 1000.0 500.0

09 no v-

se pt09

l-0 9 jui

09 aim

ar s-0 9 m

09 vjan

08 no v-

se pt08

l-0 8 jui

08 aim

m

ar s-0 8

08 vjan

07 no v-

se pt07

l-0 7 jui

07 aim

ar s-0 7 m

jan

v-

07

0.0

PRODUCTIVITY (%) - 2007 / 2009 10.0

8.0

6.0

4.0

2.0

-

09 no v-

pt09 se

l-0 9 jui

09 aim

ar s-0 9 m

09 vjan

08 no v-

pt08 se

l-0 8 jui

08 aim

ar s-0 8 m

08 vjan

07 no v-

pt07 se

l-0 7 jui

07 aim

ar s-0 7 m

jan

v-

07

-2.0

Bibliography  Transformer l’organisation – R. Jacob, A. Rondeau, D. Luc – La gestion stratégique du changement – Collection ‘Racines du savoir’ - Edition Gestion – 2002  Objectif Lean - J. Drew, B. McCallum, S. Roggerhofer - McKinsey & Compagny - Eyrolles Editions d’Organisation - 2008

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 61 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

PART 4 CONCLUSION

10.

Conclusion 10.1 First global results – what is been experienced 10.2 A profitable experience of Management 10.3 Extending towards other industrial sites

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

63 64 65

Master Thesis - 62 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 10 : Conclusion 10.1 First global results – what has been experienced After the two first years of adventure in this Lean improving process, it is possible to conclude in a positive way. Globally, according to the original targets - The five factories have actively started in accordance with the Lean Committee project, - The processus of deployment has been top-down, but also bottom-up, - The schedule has been respected, - The communication has been as large as possible in the plants and the company, - The teams were committed in the action plans and the results are visible. Was the method that we used to deploy the Lean the best ? It is difficult to ascertain, but what is certain, is that it has been adapted by our Group and it has brought the expected profits.

Nevertheless, it is possible to criticize some points : a. For our choice to give each factory the ability to define their own way of deployment, and when we observed a posteriori in the starting phase, we noticed that some Factory Executive Committees oriented their first actions towards Lean tools and by doing so, had forgotten the real sense of this approach. It is especially true according to the level of Lean knowledge of the factory manager and his team. The lower the level of knowledge; the more the action becomes privileged instead of being global. A solution to avoid this basic mistake could be to organise a seminar at the start of the project dedicated to building a team ; - What’s the team’s vision of the project, - What’s their own three-year plan for their factory, - What’s the role of each team member, their expectations, and their fears, their managerial and technical competences ? - Are they able or have they the desire to work together ? Do they stand unified ? This phase could be done with an external support to assure a new and impartial viewpoint. As the deployment efficiency is based on the team’s cohesion, it is very important to start with a clear and strong basis. b. Linked to the issue below, the level of knowledge of the Lean Committee member. There was a great disparity of Lean knowledge in this team and we should have spent more time training and discussing the Lean. The start up of the actions in every factory would have been more effective and could have been a little more uniform. c. An additional focus should be on the communication to the unions. We waited for September 2008 and December 2008 to relay of the real information to the Central Committee. According to the different actions already launched in the factories, and even if these operations had been explained locally, this exchange with this official authority came too late. In general, unions have a very negative viewpoint of the Lean approach, especially due to the risk of dismissal. Most of them have therefore rejected the project without analysis. The conclusion is that, for unions, as for managers, more time needs to be spent demystifying the Lean and to further educate them about the project, as well as explaining what kind of advantages would be gained for both the workers and the company.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 63 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 10 : Conclusion d. Finally, it is with the FagorBrandt top-management that we are going to finish. As it was with the other employees, the Lean culture was viewed very poorly. And with the other employees, the Lean Committee should have paid more attention to their knowledge of the Lean, especially at the beginning of the project. We have lost several months trying to convince them that it was the right way to improve the results of our Group, particularly with regard to its industrial part.

10.2 A profitable experience of Management This Lean Manufacturing project has been a real experience of Management : - Real because it has covered all the different aspects of a project, from an initial idea to a concrete application in the factories : from the very beginning when all was possible, to its current state, with the necessary adaptations made in accordance with the daily demands. One of the more important roles of the Lean Committee was to always keep our ambitions at a high level and to support teams towards the same targets. - Experience because, everybody learnt little by little (and after many challenges) the differences between the Lean’s theory as it stands and its deployment in real conditions. Our capacity to continuously adapt our Lean approach to the field was a sine qua non condition for success. The principles of Kaisen (or Continuous Improvement) were not only good for the tasks performed in workshops, they were also mandatory for the Lean Manufacturing project deployment itself. Day after day, our teams experimented, modified, adapted and retried each method of improvement. This job was fastidious but very efficient. Some methods have been abandoned due to external factors ; financial for example. But each time, teams did their analysis and proposed alternatives which were less expensive and cleverer. - And Management because this ‘adventure’ was, above all, a question of people. Each division of managers or workers has efficiently contributed to its success. A specific mention has to be awarded to the middle management. Always located between top-management, workers and production constraints, their daily job was often difficult. Nevertheless, their hierarchic position was strategic.

Although this project is still not finished, it has really demonstrated that the success of the Lean Manufacturing approach mainly came from the managerial attitude of the factory’s teams. Additionally, it has shown the imperative necessity and the way in which to elicit a winning attitude from each team member. Two of the most beneficial effects were to create a shared vision of the Manufacturing area and provide long-terms goals to fully involve everyone. Of course, the Lean approach has not eliminated all operational difficulties, especially during this economic crisis. However, it was an essential component to help our collaborators see beyond this conjunction – which is necessary to do today to be ready for tomorrow. Moreover, each team has noticed a deep evolution in mentalities. Little by little, managers, technicians and workers have changed. In the beginning, they were very sceptical of this approach (thinking it was, yet again, a new hobby of top-management…).

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 64 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 10 : Conclusion But when they were presented with the possibilities ; different managerial methods, production and environment improvements, etc…, they wanted to do more and at a quicker pace. That is the virtuous circle of Lean Manufacturing. As for me, because I launched and really pushed this mandatory project for the survival of our company, the results proved that the art of management was much more powerful than the most powerful of Lean tools. So, to spend one day on management was more efficient and profitable for employees individually and FagorBrandt as a whole than spending hundred of days in training (even if this point was clearly inescapable).

10.3 Extending towards other industrial sites As the Fagor Group is European, after this first positive experience in the French factories, the next step will be focused on its widening to the other manufacturing sites. Discussions with the Spanish industrial top-management about this opportunity have already begun and it is possible to forecast the start of the Lean approach with the factories in Spain and in Poland before the end of 2009. It will be a new challenge for a new enlarged Lean Committee.

Olivet, July 2009.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 65 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

PART 5 APPENDIX

PART 5 : Appendix 11. 12. 13.

Bibliography Glossary Index

67 69 73

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 66 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 11 : Bibliography 11.1 Part 1        

MCC (MONDRAGÓN CORPORACIÓN COOPERATIVA) - www.mcc.es CECED (European Committee of Domestic Equipment Manufacturers) - 2008 report GFK (Growth from Knowledge) - 2007 & 2008 reports - Market Research Company SOFRES - 2007 survey Human evolution – Roger Lewin - 2005 http://www.cibleus.com/fondement-marketing/chaine-valeur.html http://chohmann.free.fr/strategie/modele_porter.htm www.123business-fr.com

11.2 Part 2  Objectif Lean - J. Drew, B. McCallum, S. Roggerhofer - McKinsey & Compagny - Eyrolles Editions d’Organisation - 2008  Le Modèle Toyota - Jeffrey Liker - Editions Village Mondial - 2006  Système Lean - James Womack & Daniel Jones - 2ème édition - Editions Village Mondial 2007  Le lexique du Lean - The Lean Entreprise Institute - Traduit par l’Institut Lean France Troisième édition - 2007.  Kanban - Kenichi Sekine - Editions Hommes et techniques - 1983  Institut Lean France - www.institut-lean-france.fr  The Lean Enterprise Academy - www.leanuk.org  Toyota Motor Corporation - www.toyota.co.jp/en/vision/production_system  Toyota Motor Manufacturing - www.toyotageorgetown.com  www.123business-fr.com  www.lean.enst.fr/wiki/bin/view/Lean/WebHome  www.chohmann.free.fr

11.3 Part 3  Why change programs don’t produce change - Beer, Eisenstat and Spector - Harvard Business Review - 1991  Leading change. Why transformation efforts fail - John Kotter - Harvard Business Review 1995  www.think-differently.org/2007/06/book-review-john-kotter-on-change.html  Système Lean - James Womack & Daniel Jones - 2ème édition - Editions Village Mondial – 2007  La mobilisation des personnes au travail – M. Tremblay – Quoi, Pourquoi, Comment – Collection ‘Racines du savoir’ – Edition Gestion - 2006

11.4 Part 4  Manageor – Michel Barabel, Olivier Meier - Les meilleurs pratiques du Management – Edition Dunod – 2006  Transformer l’organisation – R. Jacob, A. Rondeau, D. Luc – La gestion stratégique du changement – Collection ‘Racines du savoir’ - Edition Gestion – 2002  Comportements humains et management – F. Alexandre-Bailly, D. Bourgeois, JP. Guère, N. Raulet-Croset, C. Roland-Lévy – Editions Pearson Education – 2006

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 67 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 11 : Bibliography  La mobilisation des personnes au travail – M. Tremblay – Quoi, Pourquoi, Comment – Collection ‘Racines du savoir’ – Edition Gestion – 2006  Objectif Lean - J. Drew, B. McCallum, S. Roggerhofer - McKinsey & Compagny - Eyrolles Editions d’Organisation - 2008  Système Lean - James Womack & Daniel Jones - 2ème édition - Editions Village Mondial – 2007  The Structure and Function of Communication in Society - H.D. Lasswell - Harper & Brothers – 1948  The Mathematical Theory of Communication - C. Shannon - University of Illinois Press 1949

11.5 Part 5  Le lexique du Lean - The Lean Entreprise Institute - Traduit par l’Institut Lean France Troisième édition - 2007.  www.tpslean.com/leanglossarylist.htm  www.searchmanufacturing.com/Manufacturing/Lean/glossary.htm  www.agilean.com/lean_office_glossary.htm  www.leanqad.com/glossary/

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 68 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 12 : Glossary The target of this glossary is not to present all the definitions linked to a lean approach, but just to give an explanation for the main terms and main tools. If the reader wants to know more, there is a lot of documentation, books and websites to get a complete overview of the lean terminology.

Lean Manufacturing or Lean Production Lean Manufacturing is a global organisational approach, with some specific tools, which focuses all available resources on the real value supplied to the Customer. In this way, the Lean approach identifies all waste along the product or service life cycle. When waste has been located, if it is not useful, it must be eliminated immediately. If it is mandatory, it must be reduced as much as possible. This approach is based on the people’s commitment and involvement and must be both topdown and bottom-up. It is a long-term philosophical and integrated approach and not a summary of punctual tools, even if they are very powerful.

Lean Management Lean Management is a managerial approach of the organisation deployed with a Lean Manufacturing project. The topics are : - To create an improvement culture in order to satisfy all customers - To train and delegate responsibility to all employees in the company, from the top-down. - To mobilize and involve all resources in small teams into short and visible actions. - To highlight and create synergies between teams by using Best Practice communications.

Autonomation Automation is the most difficult concept in our classical industrial organisations. It means that a worker is able to immediately stop a machine or a process each time he detects a defective part. If there is only a single machine, it could be easier to implement this strategy, but, if there is a complete assembly line with many workers, the consequences could be huge for the production, even if it is very efficient regarding the quality aspect.

Cellular Manufacturing or U-shaped work cell U-cell is the typical workstations organisation in a Lean Manufacturing approach. The target of this structure is to pass the part in production one by one, and workstation after workstation in order to minimize motions, distances and work-in-progress inventories. It also provides high flexibility by adaptation of the number of workers with the requested volume ; one worker for each station, or one worker for every two stations if the volume is divided by two, etc… Moreover, the U organisation facilitates the visual management of the production, as all workstations are concentrated in a small area. Nevertheless, the U-shaped configuration is not the only possible layout. Some other dispositions could be chosen according to the product or the process.

Empowerment Lean Manufacturing is based on people involvement. According to this principle, it is mandatory to give more responsibility and more visibility to the production staff through training and communication. The more the employees are concerned and mobilized in the project, the more the chance of success are real.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 69 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 12 : Glossary Gemba Gemba is a Japanese world that means “where the value is added to the product” or “where the action takes place”. Lean actions are always located in workshops and, as such, the managers have to be close to the workers and to the parts. They cannot spend too much time behind their desk as the reality is not there.

Kaisen or Continuous Improvement Step by step, an organisation or a process can be improved. Kaisen is not to make a big revolution once, but small evolutions, to incrementally change the system by elimination of each waste. To gain 60% immediately is better than eventually gaining 100% in one or two months. Kaisen is beneficial for safety, quality, capacity, flexibility, reactivity, etc…

Kanban Kanban is the emblematic method used by Toyota to manage the production flow. The principle is to replace consumption with a new production. It is based on the pull manufacturing system which is led by real consumer need (contrary to the push manufacturing, which is led by a given schedule planned in advance). The information transfer of consumption between the downstream workstation and the upstream one is done by a card (in Japanese : Kanban) or a signal. A card is equivalent to a defined quantity and the inventory level is determined by the number of cards in circulation between two operations. A simple illustration of Kanban is made by two boxes : A full box in use close to downstream station and an empty box in the process of being filled, close to the upstream station. Then the boxes are swapped and the cycle begins again. If the two boxes are full, there is no production.

Materials Requirements Planning (MRP) Based on the Master Schedule (customers’ requests), MRP is a software system which electronically plans each step of production (quantity, date, location), based on the bill of material and inventory. This is a push manufacturing system, and is contrary to the Kanban pull method (see above).

Muda or Waste Muda is defined as any activity that utilizes equipment, materials, space, and/or people, which does not give real value (or added value) to the product, i.e value sold to the customer. There are seven types of Muda : overproduction, defects, unnecessary inventory, inappropriate processing, excessive transportation, waiting and unnecessary motion.

San Gen Shugi (Gen ba + Gen butsu + Gen jitsu) The three realities : real location, real part, real event. This is an approach implemented during the analysis of a problem, in order to determine the real reasons for which it has arisen. Gen ba (real location) : To go to the place, in the workshop, where and when the event occurred and to speak with the actual workers involved. Gen butsu (real part) : To look over the part with the problem, to analyse it in comparison with good quality parts and against the standard. Gen jitsu (the reality) : To approach the event with real and quantified data .

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 70 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 12 : Glossary Takt Time Takt time is the necessary production time based on, then divided by customer request. It gives rhythm to the production according to real client need. It smoothes and controls the cadence of all the whole Lean system.

SMED - Single Minute Exchange of Die Organisational techniques used to change production in less than ten minutes : - Accurately observe the process of the changeover (with a camera, for example) - Highlight internal operations (when it is necessary to stop the machine) and external operations (could be done before or after stopping the production) - Transform (as much as possible) internal operations to external ones. - Reduce the remaining internal operations - Reduce the external operations

TPM (Total Productive Maintenance) TPM is a system which organises an advanced and proactive maintenance in order to avoid problems and damages of the industrial equipment or machine tools. It is based on procedures which define what kind of maintenance operations has to be done, when, and by whom. For example, the primary level of maintenance could be done by production staff on a daily frequency, a second level could be done by technicians on a weekly or monthly frequency and the higher level has to be done by specialised companies on an annual frequency.

Visual management It is the implementation of visual tools in the workshop that quickly verify if all production operations are under control, if there are any anomalies.

VSM (Value Stream Mapping) A VSM is an analysis process whereby a mapping of each part and how information flows through the organisation is made. This step comes before a Lean approach and is focused on the value chain from the customers’ viewpoint. It enables the organisation to gather current statistics and to forecast the future process by identifying waste to be eliminate.

5 S - Five S 5S is the most basic tool for a Lean deployment. It must be used before any other tool. It is a simple method of five operations that create a suitable, safe and clean workplace : - Sort : Remove all unneeded items. - Set in order : Make a place for everything and put everything in its place. - Shine : Thoroughly clean and inspect everything in the work area. - Standardize : Maintain the improvements through discipline and structure. - Sustain: Continue to support 5S efforts through auditing, job descriptions that include maintenance of the system, management support and expectations, etc.

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 71 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 12 : Glossary

Bibliography  Le lexique du Lean - The Lean Entreprise Institute - Traduit par l’Institut Lean France -Troisième édition - 2007.  www.tpslean.com/leanglossarylist.htm  www.searchmanufacturing.com/Manufacturing/Lean/glossary.htm  www.agilean.com/lean_office_glossary.htm  www.leanqad.com/glossary/

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 72 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 13 : Index 5 5S

26, 27, 48, 57, 59, 60, 72

A Assistance

4, 29, 51

B Benefits

8, 56

C Campus 47, 58 Challenge 7, 21, 33, 39, 54, 55, 65 Change 4, 7, 8, 11, 17, 27, 29, 35, 38, 39, 41, 42, 43, 54, 67, 70, 72 Communication 12, 31, 38, 44, 47, 48, 49, 50, 51, 56, 57, 65, 70 Competences 16, 20, 35, 47, 54, 56, 59, 65 Constraints 3, 5, 13, 16, 18, 31, 35 Consultant 51, 57 Continuous flow 21, 22 Continuous improvement16, 23, 24, 25, 31, 33, 41, 55 Control 16, 23, 24, 27, 30, 31, 33, 41, 42, 44, 72 Cultural 8, 11, 12, 20, 21, 30, 43 Culture 12, 24, 35, 39, 43, 69 D Decision Deployment

11, 12, 24, 33, 37, 48, 56 4, 7, 8, 9, 12, 16, 21, 27, 29, 31, 32, 33, 35, 36, 37, 41, 42, 43, 44, 45, 47, 48, 49, 50, 51, 52, 56, 58, 65, 72

E Employees Evolution Excellence

8, 11, 25, 39, 42, 50, 52, 54, 56, 57, 59, 60, 69, 70 3, 7, 8, 15, 16, 17, 18, 19, 21, 25, 30, 35, 43, 54, 57, 59, 65, 67 45

F Financial crisis Flexibility Ford

17 13, 17, 18, 31, 32, 46, 55, 60, 69, 70 22

I Improvement Indicators Involvement

16, 20, 21, 23, 24, 25, 27, 31, 33, 34, 35, 41, 46, 48, 55, 69, 70, 72 21, 22, 27, 57 16, 20, 27, 31, 55, 69, 70

K Kanban

28, 67, 70

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 73 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 13 : Index L Leader Lean Manufacturing

M Managers

13, 57 1, 3, 5, 7, 8, 9, 12, 16, 17, 19, 20, 25, 27, 33, 34, 35, 37, 42, 43, 48, 52, 69, 70

Manufacturing 2010 Market Methodology Muda

6, 8, 16, 31, 33, 34, 37, 39, 41, 42, 44, 47, 49, 50, 51, 52, 55, 56, 57, 58, 59, 70 8, 45, 46, 51, 54, 55, 57, 58 18, 67 48, 54 26, 27, 48, 60, 62, 70

O Ohno Opportunities

22, 24 3, 5, 13, 16, 17, 21, 34, 43

P Performance Philosophy Practices Processus Product value Punctuality

16, 20, 21, 24, 25, 27, 30, 31, 34, 38, 39, 47, 55, 56 22, 24, 25, 33, 41, 46, 56 21, 30, 35, 38, 43, 51, 56, 57, 58, 59 57, 60, 61, 62 8, 26 46, 47, 55

Q Quality

15, 22, 23, 24, 25, 30, 31, 32, 33, 41, 42, 44, 46, 47, 48, 50, 55, 56, 60, 69, 70

R Resistance Resources

4, 7, 8, 12, 29, 42, 44, 54, 58 20, 37, 51, 54, 69

S Score Card Sensei SMED Smith Socios Standardisation Strategy SWOT analysis

47, 59 51 62, 72 22 11 21, 22, 23 8, 9, 12, 15, 16, 33, 35, 39, 41, 44, 45, 50, 51, 54, 56, 57, 58, 69 16, 55

T Target Taylor Tools Toyota

8, 11, 12, 15, 16, 21, 22, 23, 25, 26, 30, 31, 33, 34, 35, 38, 43, 44, 45, 47, 49, 51, 52, 54, 55, 56, 57, 58, 69 22 8, 20, 22, 24, 25, 33, 41, 44, 46, 51, 57, 65, 69, 72 3, 19, 22, 24, 25, 28, 46, 67, 70

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 74 / 75 -

LEAN MANUFACTURING DEPLOYMENT STRATEGY

Chapter 13 : Index Training Trip U Unions

2, 6, 21, 31, 33, 38, 39, 41, 47, 50, 51, 54, 56, 58, 70 37, 39, 41 8, 11, 12, 16, 57

V Value-added Visual Management VSM

15, 16, 25, 26 26, 27, 47 48, 57, 62, 72

W Waste Womack Workshop

8, 20, 21, 22, 25, 26, 27, 31, 69, 70, 72 24, 28, 37, 40, 53, 67 9, 20, 22, 26, 27, 41, 49, 50, 51, 52, 56, 57, 58, 59, 60, 61, 70, 71, 72

A. NODET - EMBA6 – 2007 /2009 – ESCEM Tours

Master Thesis - 75 / 75 -