GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 1JohnS.HamalianGMSGMSGMSGMSINTRODUCTION TOGMSGlobal Operating SystemGMS Executive Overview(4-5 Hours)GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 2JohnS.HamalianGMSGMSClassroomNorms1.Pagers,phones-Pleaseturnofforputonvibrate2.Ifurgentcall,pleasetalkoutside3.Relax,askquestionsandhavefun!StandardizedIntroductions1.Name2.Role3.MainhobbyGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 3JohnS.HamalianGMSGMSCustomerSatisfactionCustomerEnthusiasmWhat Do We Need To Do To Meet Our Vision?JKCustomerSatisfactionisnotgoodenough!GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 4JohnS.HamalianGMSGMSCustomerEnthusiasmExternalCustomer(BuysProduct)InternalCustomer(YOU!)Who is the Customer? GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 5JohnS.HamalianGMSGMSCustomerEnthusiasmGoodBuyingExperienceGoodOwnershipExperience+=What Makes Customer Enthusiasm? SalesMarketingDesignEngineeringManufacturingAfterSalesGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 6JohnS.HamalianGMSGMSuSafe, Clean & Healthy EnvironmentuPeople-Oriented OrganisationuAttractive, High Quality ProductsuGood Customer ResponseuHigh Customer ValueGMVWToyotaFordWhat Does Everyone Need to Get Customer Enthusiasm? GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 7JohnS.HamalianGMSGMSSAFETY(SafeWork)QUALITY(AttractiveProduct)COST(GoodValue)PEOPLE(OrganizationalDevelopment)RESPONSIVENESS(Quantity/Volume/Speed)Safe, Clean & Healthy Working Environment for all employees and visitors Focus on employee Development, Involvement and EnthusiasmEach customer in each process expects a high quality product or serviceCustomers want a quality product or service but they also want it FAST!Eliminate waste and control costs to deliver our customers the right product at the right price!Needs Translate to GoalsTHE 5 MAIN GOALSProvide every product or service (exactly what the customer wants) defect free, on demand, with no waste and in a work environment where everyone is happy and safe.$GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 8JohnS.HamalianGMSGMSS P Q R CThe Goal Sequence Has A Meaning!Modern philosophy is that Safety is always First with a priority on People and Quality. If we focus on these things, Cost - through waste reduction - will eventually decreaseTRADITIONALMODERNC R Q P STraditionally, the organisation was focused around financial controls with Quantity as a priority People development and Safety were not particularly importantAlwaysRememberThePriorities$JHamalianGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 9JohnS.HamalianGMSGMS“One System”-One Language- One Umbrella- One Company Culture- One Mindset Global Operating SystemIt is a critical philosophy to achieve our VisionGMSHow Do We Reach Our Goals?GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 10JohnS.HamalianGMSGMSNUMMI(TOYOTA)CAMI(Suzuki)OPEL(Eisenach)GMNA(GreenBook)QNSaturnCreationofGMSGMSnotaonlya“GM”systembutismostlymodeledonToyota&someSuzukiphilosophyGMS(1996)GMSwasbornoutofthestrategicneedtoadoptmodern,leanthinkingforcorporatesurvivalGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 11JohnS.HamalianGMSGMSMass vs. Lean ProcessesProductionSystemBufferedorMass(“Fordism”)Lean(Toyota)Buffers&WasteHighLowStandardizationHigh,bymanagersHigh,byteamsLeaderSpanofControlNarrowModeratePlanning&ProblemSolvingLow(reactive)High(proactive)DegreeofCorrectionHigh(inspect-outquality)Low(built-inquality)Teamwork&EmpowermentLowHighRiskLowHighBufferedprocessesareprotectedagainsteverything:unexpectedqualityproblems,stoppages,highabsenteeism,etc.Leanprocessesassurecontinuousflowwithminimalwastebyempoweredteamsandthequalityshouldbeachievedwithintheprocess1800 (Craft)1900 (Mass)2000 (Lean)What is Lean Thinking?GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 12JohnS.HamalianGMSGMS Toyota Philosophy Strong Corporate Culture Balance Between Process and Results Commitment to Learning not Knowing Entire Organisation Knows and Uses the System Minimum barriers between functions and levels Focus on Long Term ResultsRespectForHumanityandContinuousImprovementthroughtheEliminationofWasteareFoundationofToyotasSystemGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 13JohnS.HamalianGMSGMSShortLeadTimeContinuousImprovementCompanyPeopleInvolvementCompanyStandardizationBuilt-In-QualitySafetyPeopleQualityResponsivenessCostUseGMSPrinciplesToObtainOurGoalsGOODPROCESSESGOODRESULTSBusiness Goals (Scorecard)Methods to Meet the Goals(GMS)Vision/MissionLeanPrinciples(Process)Goals&Metrics(Results)GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 14JohnS.HamalianGMSGMSTHE 5 GMS PRINCIPLESPeople are the most valuable resource in the companyPeople InvolvementStandardizationBuilt-In-QualityShort Lead TimeContinuous ImprovementDonotAcceptBuildShipaDefect!Set and follow standards to achieve a base from which to growCustomers Quality expectations are built in to each process to ensure defects are not passedReduce the time to deliver any product or serviceFoster a culture of change and constant improvement$GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 15JohnS.HamalianGMSGMSGMSLike An Atom We Need All The Pieces Working Together!“One Company” One SystemACompany-WideOperatingSystembasedonLeanBusinessPrinciplesGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 16JohnS.HamalianGMSGMSGMSGMSManufacturingProcessValidationProductQualityStandardsQualitySystemManagementIn-ProcessControl&VerificationQualityFeedback/Feed-ForwardStandardizedWorkVisualManagementManagementbyTAKTTimeTAKTWork-placeOrganizationAndonConceptProblemSolvingEarlyMfg.andDesignIntegration(DFM/DFA)ContinuousImprovementProcessLeanDesignofFacilities,Equipment,ToolingandLayoutBusinessPlanDeploymentTotalProductiveMaintenanceControlledExternalTransportationScheduledShipping/ReceivingLevelVehicleOrderScheduleSupplyChainManagementInternalPull/DeliverySimpleProcessFlowSmallLotPackagingTemporaryMaterialStorageFixedPeriodOrderingSystem/OrderPartsHealthandSafetyPriorityQualifiedPeopleTeamConceptPeopleInvolvementOpenCommunicationProcessValuesVisionShopFloorManagement4LikeAJigsawPuzzleYouNeedAllThePiecesSoItCanWorkThe33ElementsWorkTogetherGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 17JohnS.HamalianGMSGMSGMSGMS4GMSCASESTUDYGeneralMotorsNorthAmerica:BeforeGMS:1996AfterGMS:2003SPQRCSPQRCBUT!Toyotastillenjoys8%netprofitwhileGMisat1.5%GMneedstooutperformToyotabyUS$1,500$2,000/unitGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 18JohnS.HamalianGMSGMS GMS as an Enterprise-Wide SystemAvoid the Silo SyndromeTake an Integrated ApproachLink the Functional Groups Together Used in Manufacturing but Principles are GenericEngineeringManufacturingPurchasing&SuppliersSPOPowertrainGMS is a common operating methodology that can be used anywhere in the organisationSILOSILOSILOSILOSILOJHamalianGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 19JohnS.HamalianGMSGMSDesigners & Product EngineeringPurchasing &SuppliersProductionAfter-Sales & DealersBuyersSales & Marketing“One Company” with Customer FirstLean Business PrinciplesACommonLanguageandCompanyCulturethroughouttheentireCustomerChainJHamalianGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 20JohnS.HamalianGMSGMSNewVehicleFactory5What is a Factory?A place where a repeatable process is conducted in which there are inputs, internal activity and outputsNewAdvertisementFactoryWho are Operators?ExpenseReportProcessingFactoryPurchasingOrderProcessFactoryAnyone who works in a highly repeatable job and requires support to be effective ServiceCenterFactoryParadigmShift:Wehavetothinkoftheworkwealldointermsofacommonprocessmethodology-EveryoneCanUseLeanBusinessPrinciplesJHamalianGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 21JohnS.HamalianGMSGMSGMSGMSPeopleInvolvementFPeopleInvolvementElementsVisionValuesHealth&SafetyQualifiedPeopleTeamworkPeopleInvolvementOpenCommunicationLeadershipBehavior(ShopFloorManagement)GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 22JohnS.HamalianGMSGMSFishPhilosophyVideoGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 23JohnS.HamalianGMSGMSFishPhilosophyVideoDiscussionuWhatGMSconceptsdidweseeinthevideo?uDiscussasanopenforumGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 24JohnS.HamalianGMSGMSFishPhilosophyVideoDiscussionEnvironment At The Fish Company Enables:People Involvement/Employee EnthusiasmTeamworkLow AbsenteeismJob Rotation/Flexibility.GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 25JohnS.HamalianGMSGMSRoots = Culture, Values & Philosophy (GMS Principles)Trunk = People & MindsetPeopleInvolvementCompanyBranches = Processes & Tools (GMS Elements)Fruit = Quality ProductPEOPLEareourmostimportantresource!LikeaTree,PeopleNeedNurturingforGrowthSoil = EnvironmentGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 26JohnS.HamalianGMSGMSChangeInThinkingDirectorsManagersSupervisorsOperatorsTRADITIONALMODERNVIP #1TEAM MEMBER #1MgrGroupLeaderTeamLeaderTeamMemberGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 27JohnS.HamalianGMSGMSLeadershipMindChangeTOP-DOWN LEADERSHIP STYLEMODERN LEADERSHIPMINDSETDirectionSupport80%20%20%80%DirectionSupportTWO-WAY STREETGive OrdersTeach & Coach!JHamalianGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 28JohnS.HamalianGMSGMSEmployeeMindChangeTRADITIONAL EXPECTATIONMODERN EXPECTATION Just Do What You Are Told To Do Employee Enthusiasm Not Important Participate in Making Standardized Work Continuously Improve Job Involved in Problem Solving Involvement Brings Enthusiasm!JHamalianGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 29JohnS.HamalianGMSGMSEffectiveCommunicationwTrustwMutualRespectwTeamwork/CooperationwEmpowermentPeopleInvolvementCompanyGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 30JohnS.HamalianGMSGMSManufacturingProcessValidationProductQualityStandardsQualitySystemManagementIn-ProcessControl&VerificationQualityFeedback/Feed-forwardStandardizedWorkVisualManagementManagementbyTAKTTimeWork-placeOrganizationAndonConceptProblemSolvingContinuousImprovementProcessLeanDesignofFacilities,Equipment,ToolingandLayoutBusinessPlanDeploymentTotalProductiveMaintenanceControlledExternalTransportationScheduledShipping/ReceivingLevelVehicleOrderSchedulesSupplyChainManagementInternalPull/DeliverySimpleProcessFlowSmallLotPackagingTemporaryMaterialStorageFixedPeriodOrderingSystem/OrderPartsHealthandSafetyPriorityQualifiedPeopleTeamConceptPeopleInvolvementOpenCommunicationProcessValuesVision/MissionShopFloorManagementHealthandSafetyPriorityEarlyMfg.andDesignIntegration(DFM/DFA)PeopleInvolvementGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 31JohnS.HamalianGMSGMSZERO Incidents!Ourgoalis:HealthandSafetyGroupDiscussion:WhatisanIncidentvs.anAccident?“We are committed to protecting the health and safety of each employee as the overriding priority of the Corporation”.GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 32JohnS.HamalianGMSGMSThe Stages of Safety AwarenessStage1:UnawarenessofHazardsStage2:AwarenessButNoActiontoPreventInjuryStage3:InjuryButStillNoConcernBuildinga“SafetyCulture”No Problem He Can Still Work!GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 33JohnS.HamalianGMSGMSThe Stages of Safety AwarenessBuildinga“SafetyCulture”Stage4:InjuryandRealisationofImpacttoPersonandCompanyStage5:AwarenessofHazards&ProactiveCountermeasurestoPreventIncidentsSPQRCGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 34JohnS.HamalianGMSGMSPotentialHazard/UnsafeSituationNearMissRecordableorFirstAidInjuryLostWorkdayInjuryFatality13003,00030,000EmployeeSpillsCoffeeonFloorandWalksAwayEmployeeSlipsonCoffeeWhileFalling,employeesBodyGrazesEdgeofMetalDrawerandLaceratesArm.RequiresFourStitchesEmployeeFracturesArmWhileHittingtheFloor.TwoWeeksOutofWork.EmployeeHitsHeadonEdgeofDeskWhileFalling.BreaksNeck.Dies.Herbert Heinrich Travelers Insurance Co.Most ProactiveProactiveMost ReactiveHeinrichHazard PyramidReactiveGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 35JohnS.HamalianGMSGMSHealthandSafetyuHowCanWeAchieveOurGoalofzeroFirstAidInjuries,RecordablesorLostWorkDays?- Incident Prevention (Building a Safety “Culture”)- Incident Reporting, Tracking andResolution (encourage honest, open reporting to enable Problem Solving & avoid repeat incident)GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 36JohnS.HamalianGMSGMSHealthandSafetyIncidentscanbePreventedthroughthesefiveactivitiesandmore:uBehavioruWorkplaceOrganization/5SuPersonalProtectiveEquipmentuSafeUseofHazardousMaterialsuErgonomicsGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 37JohnS.HamalianGMSGMSManufacturingProcessValidationProductQualityStandardsQualitySystemManagementIn-ProcessControl&VerificationQualityFeedback/Feed-forwardStandardizedWorkVisualManagementManagementbyTAKTTimeWork-placeOrganizationAndonConceptProblemSolvingEarlyMfg.andDesignIntegration(DFM/DFA)ContinuousImprovementProcessLeanDesignofFacilities,Equipment,ToolingandLayoutBusinessPlanDeploymentTotalProductiveMaintenanceControlledExternalTransportationScheduledShipping/ReceivingLevelVehicleOrderSchedulesSupplyChainManagementInternalPull/DeliverySimpleProcessFlowSmallLotPackagingTemporaryMaterialStorageFixedPeriodOrderingSystem/OrderPartsHealthandSafetyPriorityQualifiedPeopleTeamConceptPeopleInvolvementOpenCommunicationProcessValuesVision/MissionShopFloorManagementTeamConceptPeopleInvolvementGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 38JohnS.HamalianGMSGMSTeamworkHOWDOYOUACHIEVEREALTEAMWORK?What is a Team?GroupDiscussion:GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 39JohnS.HamalianGMSGMSTeamConceptSmallgroupsofempoweredpeoplewhosharecommongoalsandsupporteachotherthroughcommontasksGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 40JohnS.HamalianGMSGMSTeamConceptDirection&SupportFeedbackTheOrganizationStructureIsDesignedToSupportSmall,EmpoweredTeamsGroupLeader&SupportAreasTeamLeaderTeamMemberLeadershipGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 41JohnS.HamalianGMSGMSuCommonSPQRCgoalsandregularteammeetings.uEmpowermenttomakedecisionswithinspansofcontroluResponsibilityfor:MakingStandardizedWorkProblemSolvingContinuousImprovementuJobRotationisgenerallyperformedTeamConceptGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 42JohnS.HamalianGMSGMSDesignManufacturingPC&LSales&MarketingFinanceHumanResourcesQualityUnionsInformationSystemsEngineeringSuppliersPurchasingA Single Team Can Only Be Successful If The Big Team Wins!IndividualFamilyCompanyNation & WorldJHamalianGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 43JohnS.HamalianGMSGMSManufacturingProcessValidationProductQualityStandardsQualitySystemManagementIn-ProcessControl&VerificationQualityFeedback/Feed-forwardStandardizedWorkVisualManagementManagementbyTAKTTimeWork-placeOrganizationAndonConceptProblemSolvingEarlyMfg.andDesignIntegration(DFM/DFA)ContinuousImprovementProcessLeanDesignofFacilities,Equipment,ToolingandLayoutBusinessPlanDeploymentTotalProductiveMaintenanceControlledExternalTransportationScheduledShipping/ReceivingLevelVehicleOrderSchedulesSupplyChainManagementInternalPull/DeliverySimpleProcessFlowSmallLotPackagingTemporaryMaterialStorageFixedPeriodOrderingSystem/OrderPartsHealthandSafetyPriorityQualifiedPeopleTeamConceptPeopleInvolvementOpenCommunicationProcessValuesVision/MissionShopFloorManagementQualifiedPeoplePeopleInvolvementGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 44JohnS.HamalianGMSGMSOurPeopleWillBe.Empowered/Engaged/EnergeticKnowledgeableFlexible/Open-MindedCustomerOrientedSkilledintheContinuousImprovementProcessandProblemSolvingAbletoWorkinTeamsQualifiedPeopleGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 45JohnS.HamalianGMSGMSPeopleDevelopmentTimeHiring/AssessmentTrainingJobPerformanceFeedbackJobImprovement&GrowthQualifiedPeopleGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 46JohnS.HamalianGMSGMSWE LEARNWE LEARN10% of what we read20% of what we hear30% of what we see50% of what we see and hear70% of what we discuss with others80% of what we experience personally95% of what we teach to someone elseWilliam GlasserGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 47JohnS.HamalianGMSGMSThe Four Steps of JITStep1:PREPARETRAINEE(StudyStandardizedWork)Step4:FOLLOWUP(TraineeConfirmSkill)Step3:TRYOUTPERFORMANCE(TraineeDo,TrainerWatch)Step2:PRESENTOPERATION(TrainerDo,TraineeWatch)APCDJOB INSTRUCTION TRAINING (JIT)AwarenessKnowledgeSkillConfirmationWhy What How!TrainingMethodologyHEARSEEDOGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 48JohnS.HamalianGMSGMSManufacturingProcessValidationProductQualityStandardsQualitySystemManagementIn-ProcessControl&VerificationQualityFeedback/Feed-forwardStandardizedWorkVisualManagementManagementbyTAKTTimeWork-placeOrganizationAndonConceptProblemSolvingEarlyMfg.andDesignIntegration(DFM/DFA)ContinuousImprovementProcessLeanDesignofFacilities,Equipment,ToolingandLayoutBusinessPlanDeploymentTotalProductiveMaintenanceControlledExternalTransportationScheduledShipping/ReceivingLevelVehicleOrderSchedulesSupplyChainManagementInternalPull/DeliverySimpleProcessFlowSmallLotPackagingTemporaryMaterialStorageFixedPeriodOrderingSystem/OrderPartsHealthandSafetyPriorityQualifiedPeopleTeamConceptPeopleInvolvementOpenCommunicationProcessValuesVision/MissionShopFloorManagementPeopleInvolvementPeopleInvolvementGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 49JohnS.HamalianGMSGMSCreateandmaintainanenvironmentwhichfostersa“spiritofpride”PeopleInvolvementElement(Involvement&Recognition)GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 50JohnS.HamalianGMSGMSTherearethreeaspectsofInvolvement&Recognition:1.Individual&TeamIdeas2.SmallGroupPrograms3.RewardsandRecognitionInvolvement&RecognitionSuggestionsGo Fast!Problem Solving CirclesCIP ContestsIncentive SystemsRecognition ProgramsGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 51JohnS.HamalianGMSGMSManufacturingProcessValidationProductQualityStandardsQualitySystemManagementIn-ProcessControl&VerificationQualityFeedback/Feed-forwardStandardizedWorkVisualManagementManagementbyTAKTTimeWork-placeOrganizationAndonConceptProblemSolvingContinuousImprovementProcessLeanDesignofFacilities,Equipment,ToolingandLayoutBusinessPlanDeploymentTotalProductiveMaintenanceControlledExternalTransportationScheduledShipping/ReceivingLevelVehicleOrderSchedulesSupplyChainManagementInternalPull/DeliverySimpleProcessFlowSmallLotPackagingTemporaryMaterialStorageFixedPeriodOrderingSystem/OrderPartsHealthandSafetyPriorityQualifiedPeopleTeamConceptPeopleInvolvementOpenCommunicationProcessValuesVision/MissionShopFloorManagementOpenCommunicationProcessEarlyMfg.andDesignIntegration(DFM/DFA)PeopleInvolvementGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 52JohnS.HamalianGMSGMSLeadersmustdrivecommunicationsActivelyengageemployeesinthebusinessopenly&frequentlyOpen-DoorPolicyListenOftenHaveaPhysicalPresence(MBWAManagementByWalkingAround)OpenCommunicationProcessGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 53JohnS.HamalianGMSGMSGuidingPrinciplesTraditionally,communicationonlyfocusesonthe“WHAT”andmaybethe“HOW”,butpeopledeservetoknowthe“WHY”!WHAT - HOW - WHY?EVEN IF THEY DONT AGREE AT LEAST THEY WILL UNDERSTAND!JHamalianGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 54JohnS.HamalianGMSGMSCommunicationBoardsState of theBusiness Mtg. Team Mtg.BusinessUpdateMtg. Job PostingsTeamBoardsNewslettersVoice MailE-mailInternet /IntranetTeachingCoachingTrainingFeedbackSatelliteBroadcastsDiagonalSlice Mtg.Dept. Heads.Mtg.GroupTrainingLevelTwoInformationalCommunicationCoreLevelFace-to-faceCommunicationLevelOneFace-to-manyfacesCommunicationGOODBETTERBEST!KeyEnablersEffectiveUseOfMediaMake a Communication Plan!GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 55JohnS.HamalianGMSGMSManufacturingProcessValidationProductQualityStandardsQualitySystemManagementIn-ProcessControl&VerificationQualityFeedback/Feed-forwardStandardizedWorkVisualManagementManagementbyTAKTTimeWork-placeOrganizationAndonConceptProblemSolvingEarlyMfg.andDesignIntegration(DFM/DFA)ContinuousImprovementProcessLeanDesignofFacilities,Equipment,ToolingandLayoutBusinessPlanDeploymentTotalProductiveMaintenanceControlledExternalTransportationScheduledShipping/ReceivingLevelVehicleOrderSchedulesSupplyChainManagementInternalPull/DeliverySimpleProcessFlowSmallLotPackagingTemporaryMaterialStorageFixedPeriodOrderingSystem/OrderPartsHealthandSafetyPriorityQualifiedPeopleTeamConceptPeopleInvolvementOpenCommunicationProcessValuesVision/MissionShopFloorManagementShopFloorManagementPeopleInvolvementGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 56JohnS.HamalianGMSGMS GoandSeeLeadershipStyleLeadByExampleSPQRC-basedMeetingStructureProactiveCommunicationProcessRegularChecksofProcessesLeadershipBehavior(ShopFloorManagement)GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 57JohnS.HamalianGMSGMSGoandSeeLeadershipStyleThefocusofleadershipisontheplaceswhereworkisperformed.Thisisaccomplishedthroughthe“GoandSee”philosophy:Go and See the work areas where concerns exist and to check progress“D“Dontont just sit at your desk, go and see what is happening!” just sit at your desk, go and see what is happening!”GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 58JohnS.HamalianGMSGMSLeadByExampleForExampleIfYouWantPeopletoKeepTheirAreaClean,YouHadBetterAlsoKeepYOURAreaClean!LeaderJHamalianGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 59JohnS.HamalianGMSGMSILoveLucyVideoPartI(Stop video before Chocolate Assembly Line)GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 60JohnS.HamalianGMSGMSILoveLucyVideoDiscussionuWhatGMSconceptsdidwe(not)seeinthevideo?(athomeandatthejob!)uDiscussasanopenforumnotbyteamsGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 61JohnS.HamalianGMSGMSILoveLucyVideoDiscussionWhat did we see in the video:Lack of Teamwork: At home, spouses did not understand each others jobs No teamwork at factory Boss was traditional top-down style, not a leaderLack Of Qualified People: Job qualifications not clear, poor screening process Lucy & Ethel not qualified for job Lucy & Ethel received poor training by bossLack of Open Communication: Spouses did not communicate enough (example at breakfast) No talking at factory results in no support & no teamworkJHamalianGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 62JohnS.HamalianGMSGMSManufacturingProcessValidationProductQualityStandardsQualitySystemManagementIn-ProcessControl&VerificationQualityFeedback/Feed-forwardStandardizedWorkVisualManagementManagementbyTAKTTimeWork-placeOrganizationAndonConceptProblemSolvingEarlyMfg.andDesignIntegration(DFM/DFA)ContinuousImprovementProcessLeanDesignofFacilities,Equipment,ToolingandLayoutBusinessPlanDeploymentTotalProductiveMaintenanceControlledExternalTransportationScheduledShipping/ReceivingLevelVehicleOrderSchedulesSupplyChainManagementInternalPull/DeliverySimpleProcessFlowSmallLotPackagingTemporaryMaterialStorageFixedPeriodOrderingSystem/OrderPartsHealthandSafetyPriorityQualifiedPeopleTeamConceptPeopleInvolvementOpenCommunicationProcessValuesVisionShopFloorManagementManufacturingProcessValidationProductQualityStandardsQualitySystemManagementIn-ProcessControl&VerificationQualityFeedback/Feed-forwardStandardizedWorkVisualManagementManagementbyTAKTTimeWork-placeOrganizationAndonConceptProblemSolvingEarlyMfg.andDesignIntegration(DFM/DFA)ContinuousImprovementProcessLeanDesignofFacilities,Equipment,ToolingandLayoutBusinessPlanDeploymentTotalProductiveMaintenanceControlledExternalTransportationScheduledShipping/ReceivingLevelVehicleOrderSchedulesSupplyChainManagementInternalPull/DeliverySimpleProcessFlowSmallLotPackagingTemporaryMaterialStorageFixedPeriodOrderingSystem/OrderPartsHealthandSafetyPriorityQualifiedPeopleTeamConceptPeopleInvolvementOpenCommunicationProcessValuesVisionShopFloorManagementWASTEGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 63JohnS.HamalianGMSGMSHowOftenDoWeSeeTheseScenariosinOurWorkArea?Stocking Up InventoryExcessive Transporting,Storage & HandlingExcess WalkingDecision -Communication and Reporting MazeEquipment BreakdownOUTOFORDERMeetings, Meetings,Meetings!GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 64JohnS.HamalianGMSGMSThree Enemies: 7Wastes(Muda),Unevenness(Mura),andOverburden(Muri)EnemiesofAnyProcessGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 65JohnS.HamalianGMSGMS7TYPESOFWASTEShiftMindsetTYPESTYPESOFOFWASTEWASTEI IC COOMMWWP PMMCURRENTTHINKINGWASTE NOT DEFINEDREACT TO LARGE EXAMPLESREACTIVE IMPROVEMENTREQUIRED THINKINGCorrectionCorrectionOverOverProductionProductionMotionMotionMaterialMaterialMovementMovementWaitingWaitingInventoryInventoryProcessingProcessingWASTE IS TANGIBLEIDENTIFY MANY SMALL OPPORTUNITIESLEADS TO LARGE OVERALL CHANGEWASTESendingbackformsforincompleteorinaccuratedataProducingreportsthatarenotused,performingmoreanalysisthanrequired,producingreportsbeforetheyareneededSearchingformisplaceditemsFilingdocumentsthatwillneverbeusedagainDelaysingettingneededinformation,approvals,ordecisionsKeepingmultiplecopiesofreportsProcessingexcessivewrittencommunicationtodetermineissuesrequiringattention(mentalprocessing)CONTINUOUS IMPROVEMENTGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 66JohnS.HamalianGMSGMSWasteisEVERYWHERE!JHamalianWaste Elimination through People Involvement is the Foundation of the entire Operating SystemGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 67JohnS.HamalianGMSGMSMakeWasteVisible&ConquerIt!Waste is easy to identify in a well organised organisationMostWasteisHiddenTherearetwomajorcategoriesofwaste:1.Obviouswaste2.Hiddenwaste.JHamalianGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 68JohnS.HamalianGMSGMSPoor companies let waste slowly build up then realize they are in trouble and make huge cuts thataffect value-added activities and peoples livelihood.Successful companies continuously eliminate waste From all processes and actually GROW the company!Why Eliminate Waste?Example:ToyotaJHamalianGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 69JohnS.HamalianGMSGMSEliminatingWasteIsJobSecurityWASTE$MORE MONEY FOR VALUE-ADDED THINGSBETTER PRODUCTS, BETTER FEATURES, MORE ADVERTISING INCREASED SALES, INCREASED DEMAND, MORE PRODUCTION, MORE JOBSJHamalianGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 70JohnS.HamalianGMSGMSGMSGMSStandardizationFStandardizationElementsStandardizedWorkWorkplaceOrganizationManagementByTaktTimeVisualManagementGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 71JohnS.HamalianGMSGMSWorldClassContinuousImprovementChangeStandardizationThepurposeofstandardizationistoreducevariationandstabilize,soastoachieveabasefromwhichtogrowandimprove.“THEWEDGE”TOSTABILIZEBESTPRACTICEGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 72JohnS.HamalianGMSGMSStandardizationAStandardIsTheBestCurrentPracticeBasedOnManyPeoplesExperience&LessonsLearned,soDONT SHORTCUT THE STANDARD!BAD THINGS COULD HAPPEN, ESPECIALLY SAFETY & QUALITY PROBLEMSIF YOU DONT LIKE THE STANDARD, TRY TO CHANGE IT, BUT NEVER SHORTCUT IT.StandardShortcutJHamalianGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 73JohnS.HamalianGMSGMSWhatHappensWhenWeDoNotFollowStandards?EVERY YEAR PEOPLE DIE FROM NOT FOLLOWING LOCK-OUT PROCEDUREU.S SUBMARINE HITS JAPANESE FISHING BOAT - SURFACING PROCEDURE NOT FOLLOWEDEXXON VALDEZ OIL SPILL CAPTAIN DID NOT FOLLOW STANDARDSGERMAN PLANE CRASHES IN SWITZERLAND AIR TRAFFIC CONTROL PROCEDURES IGNOREDJHamalianGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 74JohnS.HamalianGMSGMSMAKERULETEACHRULEKEEPRULELEAD BY EXAMPLE!Itiseasytomakestandards,butwedonotalwaysdoagoodjobcommunicatingthemandareevenworseatsustainingthem(includingourselves)Ifyoudonothaveaprocesstosustainastandardwhyevenintroduceitinthefirstplace?BE A ROLE MODEL!JHamalianGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 75JohnS.HamalianGMSGMSResultsachievedonlywhenpeoplealldotherightthingPeopleInvolvementLinktoStandardizationDiscipline and Orderly EnvironmentLack of Discipline results in ChaosI.S.Han-RBPSGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 76JohnS.HamalianGMSGMSManufacturingProcessValidationProductQualityStandardsQualitySystemManagementIn-ProcessControl&VerificationQualityFeedback/Feed-forwardStandardizedWorkVisualManagementManagementbyTAKTTimeWork-placeOrganizationAndonConceptProblemSolvingContinuousImprovementProcessBusinessPlanDeploymentTotalProductiveMaintenanceControlledExternalTransportationLevelVehicleOrderSchedulesSupplyChainManagementInternalPull/DeliverySimpleProcessFlowSmallLotPackagingTemporaryMaterialStorageFixedPeriodOrderingSystem/OrderPartsHealthandSafetyPriorityQualifiedPeopleTeamConceptPeopleInvolvementOpenCommunicationProcessValuesVision/MissionShopFloorManagementStandardizationEarlyMfg.andDesignIntegration(DFM/DFA)LeanDesignofFacilities,Equipment,ToolingandLayoutScheduledShipping/ReceivingWorkplaceOrganizationGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 77JohnS.HamalianGMSGMSWPO Motto:WPO Motto: “A place for “A place for everything and everything and everything in its everything in its place”place”GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 78JohnS.HamalianGMSGMSWorkplaceOrganizationPut order to the workplace by making Standards that allow “out-of-standard” conditions to be visible!GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 79JohnS.HamalianGMSGMSHowisworkplaceorganizationdone?WorkplaceOrganization5S5SelfDiscipline/Cont.Improvement4Sustain/Maintain2Sort/Standardize1Sift/Clear3Sweep/CleanGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 80JohnS.HamalianGMSGMSAnythingoutsidethestandardisWASTE!WPOisakeymeansofvisualizingandeliminatingwasteWhyworkplaceorganization?MakeWasteVisible!JHamalianGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 81JohnS.HamalianGMSGMSWhyworkplaceorganization?Good 5S Leads to Good Safety! Good 5S Leads to Good Safety! No trip, slip hazards, etc.No trip, slip hazards, etc.SAFETYQUALITYItems always in same place means less Items always in same place means less likely to make mistakeslikely to make mistakesCOSTItems always in same place means less Items always in same place means less wasteful and more repeatable motions wasteful and more repeatable motions JHamalianGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 82JohnS.HamalianGMSGMSExampleof5SCabinet“After5S”Cabinet“Before5S”WhichCabinetDoYouWant?(WhichoneisSafer,makesWastevisible,leadstolessMistakesandletsyougetpartsQuicker?)GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 83JohnS.HamalianGMSGMSManufacturingProcessValidationProductQualityStandardsQualitySystemManagementIn-ProcessControl&VerificationQualityFeedback/Feed-forwardStandardizedWorkVisualManagementManagementbyTAKTTimeWork-placeOrganizationAndonConceptProblemSolvingBusinessPlanDeploymentTotalProductiveMaintenanceScheduledShipping/ReceivingLevelVehicleOrderSchedulesSupplyChainManagementInternalPull/DeliverySimpleProcessFlowSmallLotPackagingTemporaryMaterialStorageFixedPeriodOrderingSystem/OrderPartsHealthandSafetyPriorityQualifiedPeopleTeamConceptPeopleInvolvementOpenCommunicationProcessValuesVision/MissionShopFloorManagementManagementbyTAKTTimeStandardizationEarlyMfg.andDesignIntegration(DFM/DFA)LeanDesignofFacilities,Equipment,ToolingandLayoutControlledExternalTransportationContinuousImprovementProcessGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 84JohnS.HamalianGMSGMSInstillingASenseOfTime&DisciplinetoKeepIt1)Meeting Time2)Meeting Place3)Participants4)(Leader has no regard for time)8:00 Introductions8:10 Kick-off8:30 Team Activity11:00 Report-Outs(Leader Keeps Time)No AgendaAgenda with TimeNo Time Management:Management By Takt: No Sense of Time Built in Process Some arrive late, others have to wait No timekeeper to keep discipline Meeting can easily go over time thus producing waste Sense of Time Built In to the process All members have a Respect for time Leaders ensure Discipline Keeping time minimizes WasteTimeManagementPhilosophyJHamalianGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 85JohnS.HamalianGMSGMSTaktTime=NumberofgoodsorservicesrequiredpertimeperiodRelateallWorktoTimeandMakeitVisualandManageable!TaktTime:TheRequiredAmountOfTimeToProduceaProductOrServiceBasedOnCustomerDemandOperationalTimePerPeriodManagementByTaktTime(TimeManagement)GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 86JohnS.HamalianGMSGMSManagementByTaktTime(TimeManagement)Operation3090Take-OffLandingServe DrinksMeeting8 HoursKick-OffWrap-Up60Project3 monthsConceptAdvertisement shown on T.V.Flight Attendant has 60 to serve drinks if there are 60 passengers, Takt Time = 1)Example: MarketingExample: Board MeetingExample: AirlinerLunchNext StepsQuarter ReviewApprovalProduction ReadyJHamalianGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 87JohnS.HamalianGMSGMSManufacturingProcessValidationProductQualityStandardsQualitySystemManagementIn-ProcessControl&VerificationQualityFeedback/Feed-forwardStandardizedWorkVisualManagementManagementbyTAKTTimeWork-placeOrganizationAndonConceptProblemSolvingContinuousImprovementProcessBusinessPlanDeploymentTotalProductiveMaintenanceControlledExternalTransportationScheduledShipping/ReceivingLevelVehicleOrderSchedulesSupplyChainManagementInternalPull/DeliverySimpleProcessFlowSmallLotPackagingTemporaryMaterialStorageFixedPeriodOrderingSystem/OrderPartsHealthandSafetyPriorityQualifiedPeopleTeamConceptPeopleInvolvementOpenCommunicationProcessValuesVision/MissionShopFloorManagementStandardizationEarlyMfg.andDesignIntegration(DFM/DFA)LeanDesignofFacilities,Equipment,ToolingandLayoutVisualManagementGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 88JohnS.HamalianGMSGMSVisualManagementKeyConceptsMAKE STANDARD & OUT OF STANDARD CONDITIONS CLEAR & VISIBLE!xxJHamalianGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 89JohnS.HamalianGMSGMSVisualManagementKeyConceptsSTATUSATAGLANCEGUIDELINE SHOULD NOT TAKE MORE THAN ONE SECOND TO GRASP ANY SITUATION!JHamalianGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 90JohnS.HamalianGMSGMS“APictureIsWorthAThousandWords.”GetStandardsOutFromtheDeskandIntotheOpen!GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 91JohnS.HamalianGMSGMSWhich visual method communicates information (how much time is left for walking) better?WALKDONTWALKExampleStack LightJHamalianGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 92JohnS.HamalianGMSGMSManufacturingProcessValidationProductQualityStandardsQualitySystemManagementIn-ProcessControl&VerificationQualityFeedback/Feed-forwardStandardizedWorkVisualManagementManagementbyTAKTTimeWork-placeOrganizationAndonConceptProblemSolvingContinuousImprovementProcessBusinessPlanDeploymentTotalProductiveMaintenanceControlledExternalTransportationScheduledShipping/ReceivingLevelVehicleOrderSchedulesSupplyChainManagementInternalPull/DeliverySimpleProcessFlowSmallLotPackagingTemporaryMaterialStorageFixedPeriodOrderingSystem/OrderPartsHealthandSafetyPriorityQualifiedPeopleTeamConceptPeopleInvolvementOpenCommunicationProcessValuesVision/MissionShopFloorManagementStandardizedWorkStandardizationLeanDesignofFacilities,Equipment,ToolingandLayoutEarlyMfg.andDesignIntegration(DFM/DFA)GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 93JohnS.HamalianGMSGMSStandardizedWorkThedocumented,currentbestmethodtoSafelyandEfficientlyperformanyrepeatableprocessthatmeetsthenecessarylevelofQualityStandardizedWorkCanBePerformedEverywhere!OfficeProductionGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 94JohnS.HamalianGMSGMSWithoutStandardizationWithStandardizationStandardizedWorkGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 95JohnS.HamalianGMSGMSEachIndividualHasGoodIdeasIfWeDoNotDocumentTheBestMethodsThenWeAreNotFullyUtilizingTheTeamsBrainpowerandWeWillNeverImproveOrWeMayActuallyGetWorse!SAFETY, QUALITY, EFFICIENCYWithout Standardized Work We Are Destined To Repeat The Same Mistakes Over and Over Again!JHamalianGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 96JohnS.HamalianGMSGMSWouldYouWantToGetIntoAPlaneWhereTheCrewDidNotExactlyFollowAStandardizedCheckProcess?EvenThoughTheyHavePerformedItHundredsOfTimes!1.Check Fuel 2.Check Tires3.Check InstrumentsNobodys Memory is Perfect - Have the Discipline to follow Standardized Work. Dont Get Complacent!JHamalianGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 97JohnS.HamalianGMSGMSLegoExerciseGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 98JohnS.HamalianGMSGMSGMSGMSBuilt-In-QualityFBuilt-InQualityKeyElementsCustomerQualityStandardsProcessValidation/ChangeControlIn-ProcessControlFeedback/FeedforwardCommunicationGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 99JohnS.HamalianGMSGMSuWhatIsQuality?uGroupDiscussionBuilt-In-QualityGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 100JohnS.HamalianGMSGMSDefinitionsQualityiswhatthecustomerperceivestobeacceptabletoachievehis/herenthusiasmGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 101JohnS.HamalianGMSGMSMadCowPoorQualityMeansLostSalesFirestone(UnintendedAccidents)uninstalledshiftlock(SuddenAcceleration)GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 102JohnS.HamalianGMSGMSWhatisBuilt-In-Quality?GroupDiscussionBuilt-In-QualityGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 103JohnS.HamalianGMSGMSWhatisBuilt-InQuality?UnderstandYourSupplierandCustomerandbuildqualityINTOtheprocessthroughPrevention,DetectionandContainmentsodefectsarenotpassedtothecustomer!GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 104JohnS.HamalianGMSGMSSuppliersProductionDealersBuyersSales&MarketingTheCustomerChainEveryProcessHasatLeastOne“Customer”andOne“Supplier”SatisfyYourCustomerDesign&EngineeringWho is Your Customer?Who is Your Supplier?- Group DiscussionGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 105JohnS.HamalianGMSGMSDonotAcceptBuildShipaDefect!SolveProblemsThroughTeamwork!Built-In-QualityMottoSatisfyYourCustomerGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 106JohnS.HamalianGMSGMSQualityThroughTeamworkKnowYourCustomer!What water leaks?I dont see any water leaksThis car wasnt made on my shiftThe problem is Press Shop. The flange is too long.I wont run any trial until I have an assembly method from Engineering and the manpower.The problem is that the pieces are bad from the supplier. It is not from my area, maybe its the sealerDont run away from the problem!GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 107JohnS.HamalianGMSGMSAlwaysRememberThePrioritiesSafetyPeopleQualityResponsivenessCostImportanceQualityistheKeytoOurSurvivalWeWillNotMaintainGlobalAutoLeadershipwithoutitanditInvolvesEachandEveryOneofUs,DayinandDayOutCustomer Enthusiasm!JHamalianGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 108JohnS.HamalianGMSGMS“Customer”Feedback/Feedforward“Suppliers”YouProcess A Process B Process CProactiveReactiveGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 109JohnS.HamalianGMSGMSILoveLucyVideoPartIII Love Lucy(Start video at Chocolate Assembly Line)GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 110JohnS.HamalianGMSGMSILoveLucyVideoDiscussionWhat did we see in the video: Lack of Standardized Work: No documented standardized work on job No standardized work to use as basis for training No quality standard for completed chocolate Lack Of Management By Takt Time: Takt Time arbitrarily changed No communication or planning of Takt Time change No visual indication of workstation beginning and end Lack of Built-In Quality: No way to call for help No way to stop line or prevent defects from leaving stationI Love LucyJHamalianGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 111JohnS.HamalianGMSGMSGMSGMSShortLeadTimeFShortLeadTimeKeyElementsSimpleProcessFlowPullSystemConceptLevelSchedulingGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 112JohnS.HamalianGMSGMSAchieve Customer Enthusiasm by delivering more quickly and reducing costs, while maintaining qualityShortLeadTimeJHamalianTheRelentlessPursuittoReducetheAmountOfTimeToProduceaProductOrServiceGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 113JohnS.HamalianGMSGMSPhilosophy“Brilliantprocessmanagementisourstrategy”“Wegetbrilliantresultsfromaveragepeoplemanagingbrilliantprocesses”“ourcompetitorsoftengetaverage(orworse)resultsfrombrilliantpeoplemanagingbrokenprocesses.”JamesWomackProcessThinkingatToyotaToyotaObservesthatGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 114JohnS.HamalianGMSGMSShortLeadTimeSimple Process Flow“The Perfect Process” Identify Customer Requirements Relate Work to Time Make Process Flow & Waste Visual Use First In First Out (FIFO) Pull from Customer, not Push from Supplier Establish Rhythm (level scheduling) in Small Lots Make Progress/Delays Visual“Simple Sequential Process Flow of Material and Information”Guiding PrinciplesOneKeyToolis“ValueStreamMapping”GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 115JohnS.HamalianGMSGMSFlowRestrictorsFlowUnderstandingtheflowdetermineswheretoapplyProcessImprovementsTheoryofConstraintsGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 116JohnS.HamalianGMSGMSAvaluestreammapfollowsaproductsproductionpathfrombeginningtoend,andprovidesavisualrepresentationofeveryprocessinboththematerialandinformationflows.Avaluestreaminvolvesallthesteps,bothvalueaddedandnonvalueadded,requiredtocompleteaproductorservicefrombeginningtoendWhat is a Value Stream?What is a Value Stream Map?Value Stream MappingMake The Process Visual!GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 117JohnS.HamalianGMSGMSUnderstandinghowthingscurrentlyoperate.Thisisthefoundationforthefuturestate.ScopingtheScopingtheValueStreamValueStreamDesigningaleanflowthroughtheapplicationofGMSprinciplesFuturestatedrawingDeterminetheValueStreamtobeimprovedThegoalofmapping!PlanningandImplementationCurrentstatedrawingValue Stream MapsEnable a System ViewGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 118JohnS.HamalianGMSGMSJacks Taxes - Current StateIN40 clientsSort receipts & documentsConfirmdeductionsMail formsINTax forms to client by 4/10Receipts & DocumentsINNotify of missing documentsReminder post-cardPrint & Collate formsTSReview & sign formsINSend reminderPrepareworksheetTSClientJohn10 min-100%Jack60 min1 week95%Jack10 min1 week50%John15 min-98%Jack15 min-100%John10 min-100%Jack30 min-10%Missing documents1 week3 weeks3 days3 days1 dayW/TP/T10 min1 week30 min3 weeks60 min10 min3 days15 min15 min10 min3 days1 day1 weekFTQ100 %98 %100 %50 %100 %95 %10 %1 week140 min7 wks, 2 days4.7 %Total Lead Time:7 wks, 2 days, 140 minP/TW/TFTQP/TW/TFTQP/TW/TFTQP/TW/TFTQP/TW/TFTQP/TW/TFTQP/TW/TFTQINClarify deductionsGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 119JohnS.HamalianGMSGMSuCustomerrequirements?uWorkflowsmoothly?uTrigger&sequencework?uRhythm(leveling)?uProgress&delaysvisible?uProcessimprovements?Jacks Taxes Process ImprovementIN40 clientsSort receipts & documentsConfirmdeductionsMail formsINTax forms to client by 4/10Receipts & DocumentsINNotify of missing documentsClarify deductionsReminder post-cardPrint &Collate formsTSReview & sign formsINSend reminderPrepareworksheetTSClientJohn10 min-100%Jack60 min1 week95%Jack10 min1 week50%John15 min-98%Jack15 min-100%John10 min-100%Jack30 min-10%Missing documents1 week3 weeks3 days3 days1 dayW/TP/T10 min1 week30 min3 weeks60 min10 min3 days15 min15 min10 min3 days1 day1 weekFTQ100 %98 %100 %50 %100 %95 %10 %1 week140 min7 wks, 2 days4.7 %Total Lead Time:7 wks, 2 days, 140 minP/TW/TFTQP/TW/TFTQP/TW/TFTQP/TW/TFTQP/TW/TFTQP/TW/TFTQP/TW/TFTQTaktTime=Availabletime/CustomerRequirements=40days/40Clients=1perdayINCOMBINEPROCESSESStand.WorkJohnAccordionFileXOXOFIFODataentryWorksheettrainingIndividual1040,1040EZtrainingReduceprocesstimeto75minStandardizeWorkCustomerIncentiveGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 120JohnS.HamalianGMSGMSIN40 clientsMail formsforms to clientComplete Accordion FileChecklist & Accordion FileJacks TaxesFuture State Check & sign formsINSend ReminderData entry+ print formsFSClientFIFOmax 1 daymax 1 dayXOXO1 per day Over 8 weeksTaktTime=Availabletime/CustomerRequirements=40days/40Clients=1perdayCustomerRequirements:TaxFormscompletedaccuratelyFinishedbeforefillingtimeLowestpossiblecostW/TP/TFTQ100 min2 days98 %2 days, 100 min10 min75 min15 min10 min1 day1 dayP/TW/TFTQP/TW/TFTQP/TW/TFTQP/TW/TFTQJohn10 min100%John75 min98%Jack15 min1 day100%John10 min1 day100%98 %100 %100 %100 %GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 121JohnS.HamalianGMSGMSTotal Lead Time(Order To Delivery)Process Lead Time (Lean Materials)Product Lead Time3AreasofShortLeadTimeReceive Order To Delivery of Product Receive Order To Delivery of Product and Receive Payment and Receive Payment (O.T.D.)(O.T.D.)(O.T.D.)(O.T.D.)From Raw Material to Final AssemblyFrom Raw Material to Final AssemblyReduce Lead Time to Produce Any Reduce Lead Time to Produce Any Good Or ServiceGood Or ServiceExamples: Product Development (Concept to SOP) Budget Development Marketing Clinic FeedbackJHamalianGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 122JohnS.HamalianGMSGMSGMSGMSContinuousImprovementFContinuousImprovementKeyElementsBusinessPlanDeploymentProblemSolvingAndonConceptContinuousImprovementProcessGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 123JohnS.HamalianGMSGMSContinuousImprovementCompanySmall, steadyimprovements toconstantly improveThe Standard!No Company Today Can Survive Without Having All Employees Focused on Continuous ImprovementJHamalianGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 124JohnS.HamalianGMSGMSPoor Organisations Resist Change and Become Stifled and Stale Great Organisations Embrace Change and Constantly Look for Ways to Improve”TheOnlyConstantisChange”BuildaContinuousImprovementCultureNever Be Satisfied With The Status Quo!JHamalianGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 125JohnS.HamalianGMSGMSStandardizationImprovementStandardizationStandardizationStandardizationImprovementImprovementContinuousImprovementStandardized Work Is A Baseline for Many, Small Continuous Improvements!OncetheImprovementisValidated,UpdatetheStandard!GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 126JohnS.HamalianGMSGMSPlanDoCheckAction GrasptheSituationGrasptheSituationThePDCACyclePDCA is a Fundamental Concept Throughout GMSGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 127JohnS.HamalianGMSGMSThe PDCA Cycle is One Of The Most Important Concepts In A CompanyPDREACTPPoor companies do littleplanning, mostly doing, do not check their status and then react to everythingDCAWorld-Class companies do excellentplanning, always performchecks that enable taking correctiveaction and stay on scheduleJLPDREACTOr, they do a lot of Planning and no Execution or check system which again leads to Reaction or lack of ImprovementJHamalianGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 128JohnS.HamalianGMSGMSLetsgototheBeach!PlanPrepareforthetripTwodaysbeforeleaving,checkengineOILLEAK!Fixoilleak&leaveontimeOurFamilyHasNotHadAVacationInALongTime!PDCACanBeUsedForAnythingDoGrasptheSituationCheckActionJHamalianGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 129JohnS.HamalianGMSGMSManufacturingProcessValidationIn-ProcessControlandVerificationProductQualityStandardsQualityFeedback/Feed-forwardStandardizedWorkVisualManagementManagementbyTAKTTimeWork-placeOrganizationAndonConceptProblemSolvingContinuousImprovementProcessBusinessPlanDeploymentTotalProductiveMaintenanceControlledExternalTransportationScheduledShipping/ReceivingLevelVehicleOrderSchedulesSupplyChainManagementInternalPull/DeliverySimpleProcessFlowSmallLotPackagingTemporaryMaterialStorageFixedPeriodOrderingSystem/OrderPartsHealthandSafetyPriorityQualifiedPeopleTeamConceptPeopleInvolvementOpenCommunicationProcessValuesVisionShopFloorManagementContinuousImprovementBusinessPlanDeploymentQualitySystemManagementEarlyMfg.andDesignIntegration(DFM/DFA)LeanDesignofFacilities,Equipment,ToolingandLayoutGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 130JohnS.HamalianGMSGMS?Leader?differentdirectionsnoownershipPlansnotcommunicated?GoalstoocomplicatedBeforeBPDONLY (S)HE KNOWS THE GOALSnoregularreviewsGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 131JohnS.HamalianGMSGMS VISIONTRACKPERFORMANCEDEPLOYRESOURCESGME-BPD GuideREGULARCOMMUNICATIONCLEARTARGETSCLEARDIRECTIONCOMMONGOALSLeaderEVERYONE KNOWS THE GOALSAfterBPDGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 132JohnS.HamalianGMSGMSConcreteGOALS(SPQRC)RegularandConsistentReviewsCoordinationVision/MissionAchievingOurVisionIn order for GM to achieve Its VISION, we have to achieve our GoalsSPECIFICOBJECTIVESCLEAR&MEASURABLETARGETSAMETHODTORESEARCHTHETARGETSGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 133JohnS.HamalianGMSGMSWhy Engage the Workforce?Why? Why? Why? Why? Why?1-66-1010-2020-4040-10050%40%30%20%10% of People Involvement% of Possible Improvement WhoisinvolvedinBPD?Everyone!NoOnePersonHasAlltheBestIdeas!GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 134JohnS.HamalianGMSGMSTop LeadershipTop LeadershipMission/StrategyGoals & ObjectivesClear TargetsAction Plans Review ProcessTheCascadingProcessLevel2Level3Level4Level1Detailed Action Plans and CountermeasuresCascading Strategies and ObjectivesGroup LeaderGroup LeaderAction PlansClear TargetsReview ProcessTeamTeamClear TargetsReview ProcessDepartment ManagerDepartment ManagerGoals & ObjectivesClear TargetsAction PlansReview ProcessGoDownToTheLowestLevel!EachLevelofLeadershipMustHandDownSimple&ClearTargetstoTheirTeamS.M.A.R.T. Targets: Specific, Measurable, Aligned, Realistic & TimedGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 135JohnS.HamalianGMSGMSIfYouCantMeasureIt,YouCantManageItIfYouCantManageIt,YouCantImproveItTargetsandMetricsMeasuringMaySeemLikeExtraWorkandTooControlling,butHowElseCanYouGetaBaselineforImprovement?JHamalianGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 136JohnS.HamalianGMSGMSBelow ExpectationsNeeds ImprovementMeets ExpectationActionsAnnual Business PlanXActivitiesPLANDOPROBLEMSOLVINGCHECKACTRegularReviewsGoals, Objectives, Targets, MethodsCountermeasures Open, Team Discussion Coaching & Learning Get Support & Resources Go To SeePDCAisthefoundationofBPDGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 137JohnS.HamalianGMSGMSManufacturingProcessValidationQualitySystemManagementQualityFeedback/Feed-forwardStandardizedWorkVisualManagementManagementbyTAKTTimeWork-placeOrganizationAndonConceptProblemSolvingEarlyMfg.andDesignIntegration(DFM/DFA)ContinuousImprovementProcessBusinessPlanDeploymentTotalProductiveMaintenanceControlledExternalTransportationScheduledShipping/ReceivingLevelVehicleOrderSchedulesSupplyChainManagementInternalPull/DeliverySimpleProcessFlowSmallLotPackagingTemporaryMaterialStorageFixedPeriodOrderingSystem/OrderPartsHealthandSafetyPriorityQualifiedPeopleTeamConceptPeopleInvolvementOpenCommunicationProcessValuesVision/MissionShopFloorManagementContinuousImprovementAndonConceptLeanDesignofFacilities,Equipment,ToolingandLayoutIn-ProcessControlandVerificationProductQualityStandardsGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 138JohnS.HamalianGMSGMSWhatistheAndonConcept?The ANDON Concept encourages employees to call for help when there is a problem or out of standard situation, using audio and/or visual signals to help attract attentionThe ANDON Concept is an enabler to controlquality while keepingtheprocessgoing by pulling in support to address issues before they become problemsQuality Andon SystemWalkie Talkie/Mobile PhoneHotel “Bell” for BellhopAirplane Call for AttendantGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 139JohnS.HamalianGMSGMSAlwaysRememberThePrioritiesSafetyPeopleQualityResponsivenessCostImportanceFor Example, Sometimes We Have To Sacrifice Quantity to Achieve QualityGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 140JohnS.HamalianGMSGMSMgrGroupLeaderTeamLeaderTeamMemberDecisionDecisionDecisionPullAndonSupportSupportSupportNeedshelpFunctionofEveryoneincludingManagersandStaffistoSupportourTeamMembersGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 141JohnS.HamalianGMSGMSAndonIsNotJustaSystemOfWiresandLightsIt is a Concept of Calling For Help Before It is Too LatePull Your Andon!EVERYONE HAS AN “ANDON CORD”JHamalianGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 142JohnS.HamalianGMSGMSManufacturingProcessValidationProductQualityStandardsQualitySystemManagementIn-ProcessControl&VerificationQualityFeedback/Feed-forwardStandardizedWorkVisualManagementManagementbyTAKTTimeWork-placeOrganizationAndonConceptProblemSolvingEarlyMfg.andDesignIntegration(DFM/DFA)ContinuousImprovementProcessLeanDesignofFacilities,Equipment,ToolingandLayoutBusinessPlanDeploymentTotalProductiveMaintenanceControlledExternalTransportationScheduledShipping/ReceivingLevelVehicleOrderSchedulesSupplyChainManagementInternalPull/DeliverySimpleProcessFlowSmallLotPackagingTemporaryMaterialStorageFixedPeriodOrderingSystem/OrderPartsHealthandSafetyPriorityQualifiedPeopleTeamConceptPeopleInvolvementOpenCommunicationProcessValuesVision/MissionShopFloorManagementContinuousImprovementProblemSolvingGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 143JohnS.HamalianGMSGMSWhatIsaProblem?AProblemIsDefinedAsaDiscrepancyBetweenanExistingStandardorExpectationandtheActualSituationStandardActualDiscrepancyTIMELEVELProblemSolvingGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 144JohnS.HamalianGMSGMSProblemsAreSeedsforImprovementDontHidethem,LetthemRiseUp!EveryonehasProblemstheDifferenceisinhowtheydealwiththem!IfThereAreNoProblems,ThenSomethingIsWrong!GrowingNo Problem means Big Problem!Create a Company Culture Where “Red” is not Always Bad!GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 145JohnS.HamalianGMSGMSProblemsOccurBecauseofFailuresintheSystemProblemSolvingBlame The Process Not The People!JHamalianGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 146JohnS.HamalianGMSGMSGuidingPrinciplesEveryoneisresponsibleforProblemSolving!TeamMemberTeamLeaderGroupLeaderMaterialEngineerManagerSectionLeaderGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 147JohnS.HamalianGMSGMS123456ProblemDescriptionProblemDefinitionLocatePointofCauseRootCauseInvestigationLong-termCountermeasureFollow-Up&Check7Short-termContainmentPracticalProblemSolvingGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 148JohnS.HamalianGMSGMSuWhenisProblemSolvingappropriate-SafetyIncident-SignificantCustomerDissatisfier-LostTimeIssues-LateDeliveryofGoodorServiceandanyotherabnormalsituationsatanywherePracticalProblemSolvingCan Be Used For Anything!GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 149JohnS.HamalianGMSGMSWhy is Problem Solving Part of Continuous Improvement?Traditional Companies Stop at Temporary Fixes They Just Contain the Problem and Put on a Band-Aid World-Class Companies Find The Root Cause and Put in Steps to Prevent It From Happening AgainThats Not Real Improvement It is Just Getting Back to Standard!Now, THAT is Continuous Improvement!KJJHamalianGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 150JohnS.HamalianGMSGMSManufacturingProcessValidationProductQualityStandardsQualitySystemManagementIn-ProcessControl&VerificationQualityFeedback/Feed-forwardStandardizedWorkVisualManagementManagementbyTAKTTimeWork-placeOrganizationAndonConceptProblemSolvingEarlyMfg.andDesignIntegration(DFM/DFA)ContinuousImprovementProcessLeanDesignofFacilities,Equipment,ToolingandLayoutBusinessPlanDeploymentTotalProductiveMaintenanceControlledExternalTransportationScheduledShipping/ReceivingLevelVehicleOrderSchedulesSupplyChainManagementInternalPull/DeliverySimpleProcessFlowSmallLotPackagingTemporaryMaterialStorageFixedPeriodOrderingSystem/OrderPartsHealthandSafetyPriorityQualifiedPeopleTeamConceptPeopleInvolvementOpenCommunicationProcessValuesVision/MissionShopFloorManagementContinuousImprovementContinuousImprovementProcessGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 151JohnS.HamalianGMSGMSContinuousImprovementCultureSet challenging hurdles, conquer them, then raise the bar!Create an Environment where Peopleare driven to Continuously seekImprovement through theElimination of WasteJHamalianGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 152JohnS.HamalianGMSGMSWhenYouClimbtotheTop.YouCanSeetheNextTarget!ContinuousImprovementCultureGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 153JohnS.HamalianGMSGMSImprovementIstheRelentlessPursuitoftheEliminationoftheEnemy-WASTE!SafetyQualityCostProductivityImprove7TypesofWasteContinuousImprovementCultureNever Be Satisfied With The Status Quo!GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 154JohnS.HamalianGMSGMS1)GrasptheCurrentSituation2)ImaginetheIdealSituationSetTarget3)CompareCurrentSituationtoIdeal-SeetheGap4)DefineStrategytoAchievetheIdeal5)ImplementCIPs6)Follow-UpGapIdealNowWhatistheCIPMethod?Make Challenging Targets,Set Expectations Use BPDSuggestionProgramKaizen/CIP Small IdeasKaizen/CIP Teams & WorkshopsValue Stream MappingGo Fast!GMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 155JohnS.HamalianGMSGMSWhatistheDifferenceBetweenProblemSolvingandContinuousImprovementProcess(CIP)?Problem Solving is Getting Back to Standard and Staying ThereCIP is Raising The Standard!StandardActualProblem SolvingNewStandardActual(CurrentStandard)Continuous Improvement ProcessJHamalianGMSExecutiveOverviewGM ConfidentialVersion Date 2004.8.12Slide 156JohnS.HamalianGMSGMSDieChangeExercise