Kleinmann & Consultants GmbH„Qualificiency- Quality considering higher efficiency“

Mechanical engineering and metalworlking business forumLatvia, city of Jelgava, February 22nd, 2018

Peter KleinmannManaging Partner

P. Kleinmann

Senior positions in Operations and Global

Quality

VP Quality/Reengineering

Pilot company in Germany introducing the methods of the TOYOTA

production system

Global introduction of CIP

to 32 factories

1999 - 20021985 - 1998 2002 - 2005

Industrial Bearings

and Distribution

COO

1.VP Global Quality2.COO (Rus,Sp,Tur,Ind)

1.EVP Global Quality2.COO Hungary and Germany

XCITEIntroduction of

sustained efficiency/quality

improvements

2009 - 2012

Consultancy services on operations, quality, and

Lean

2006 - 2009

TQM Introduction,, new factory in

Russian Federation

Managing Partner Kleinmann &Consultants GmbH

Improvement in customer quality,

turnaround management, new 15,000 sq.m factory

Since 2012

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Motivation

Current success factors need to be reconsidered to take into account faster processes, our access to a virtually unlimited amount of information and a global radius of action.

Lean and TOTAL QUALITY principles, which have been deployed in Western Europe since the late 1980s, continue to enjoy great legitimacy.

Nevertheless, these tools should also be re-evaluated to take into account changes in our current business environment such as shorter development times and life cycles, global markets, and higher standards of efficiency and quality. Volume and variant flexibility has become a success factor.

The values of productivity and companyquality are becoming more important for sustained commercial success.

Internal and external customer orientation is not a question, but a must

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Proven tools and new methods for meeting increased expectations in the new environment

"The first driver": Productivity Scissors

-9%

-6%

-3%

0%

3%

6%

9%

2018 2019 2020

Costs

Prices

Rising costs

- Materials- Labour- Plant

Falling earnings - Price erosion- Discounts- Up-front payments

6% minimum annual productivity gain needed

An annual productivity gain of at least 6% is necessary to maintain a company's financial position

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"The second driver": Company quality

As markets become increasingly complex, the qualitative capability of all business processes also gains in importance -> "Qualificiency" in all areas of the company

IMAGE

PERSONAL RELATIONSHIPS

VALUES TRUST

FunctionalityService

Application

technologyOn-time delivery

Product

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Image

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For example Company IMAGE:

Is it important for the enduser, that the SUPPLIER of the Car Producer has a good reputation?

Is it for your company important as well to have a good reputation?

very important25,3%

important34,2%less important

22,9%

not important15,4%

not specified2,1%

Image

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Only 51 % of all car enduser are oriented on one brandand have a strong brand loyality

37 % of all car enduser are highly satisfied with their carbut have no brand loyality

The emotional quality is getting more important againstthe functional quality, ….so more than product quality isrequested

Image

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Only 51 % of all car buyers are comitted to one brand

Regular Customer 51 %

Escaping Customers 49 - X %

New Customers, to be convinced49 – X %

Loosing customers becauseof missing „Company Quality increases costs to win newcustomers

Image

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How can I commit myself to 100 % Customer Satisfaction?

JUST DO THE UNEXPECTED!

Image

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Wishes

Needs

Requirements

Surprises

Overachievements ofRequirements

Fullfilment ofRequirements

SURPRISES ARE REALY UNEXPECTED

Company quality

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FROM PROCUCT QUALITY…..

TO COMPANY QUALITY

Influences on quality

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Internal Process / Production / AssemblyOrder

Customer

Perception

Human influence

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Each employee is a SUPPLIER

Each employee is aCUSTOMER

Each employee has aPRODUCT

What is the first prerequisite?

Everything has to support the value added level Everybody has to serve his internal customer

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A new added value understanding & organization!

End Producer Final Customer Dealer

Purchasing HRQuality

Management?

Managing Board

Customer level

Added value level

Service level

Coordination level

Controlling

AssemblyProduction

What is the second prerequisite?

Everything has to support the value added level Everybody has to serve his internal customer

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Lean & Quality Culture

Leadership & Entrepreneurship

Quality FIRST

Total Productive

Maintenance

Suggestion System

Vision, Mission, Strategy, Targets

Total Quality Management

InformationTechnology

Full Employee

Involvement

Poka-Yoke

MQBCustomer

SurveyEmployee

SurveyGatewaySystem

Qup!

Culture

Strategy

Method

Tools OEE SMED Zero Line

A Lean & Quality Culture with a people oriented strategy!

Organisation is the key

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From Hierarchies……

Operators

Team leader

Group managers

Foreman

Department managers

Main department

managers

Technical manager

COO

CEO

Organisation could create flexibility

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…..to self responsible focused factories and units

Organizational structure

Horizontal Vertical Mixed culture

Final products Flexible process

chains for small lot

sizesF

inal

ass

embl

y

Single-components Modules Systems

Product line Customer line Platforms

Customer-oriented lines with small lot sizes

Com

pone

nts

Type of structure Type of structure Type of structure

1

2

3

4

6

5

1 2 3 4 5

Internal Customer / Supplier relationship

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DON'T GET IT

DON'T MAKE IT

DON'T SEND IT

MASAAKI IMAIFounder of Kaizen

Human Potential as a quality factor

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From PRODUCT Quality to Company Quality

Technical

Skills

Organisational

Skills

Human

Skills

In parallel the protection against immitation increases

Productionprocess,

Technology

Productinnovation

Organization,Business process

Human potential,Company culture

„Skill-Type“

„Skill -Value“

Sales strategy,Marketing concept

From vision to results

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How should the company look likein 3-5 years?Vision

Defin

ition

Top

Down

Realisatio

n

Bottom

Up

How can I lead the realityto the Vision?

Strategy & Strategical Measures

Measures, Actions, Continuous Improvement !

What do I have to reach, to fullfillthe strategy?Targets

Do I reach my targets in time or do I have to start on top activities?KPI

From vision to results

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Without a target,

each shot is

a strike

KPI Board

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KPI Board

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Costs of Quality

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Traditional View

Fullfillment

Co

sts

InspectionCosts

Failure Costs

Optimum

Total CostsAcceptance of failures !!

Costs of Quality

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Each deviation from the optimumcreates losses

Also in business processes !

Costs of Quality

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Production ALT UT

Production BLT UT

Part

A

B

C

D

E

Each deviation from the optimum will createproblems at the end of the process chain

Costs of Quality-Taguchi´s loss function

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increasingLoss

increasingLoss

Target

okNot ok Not ok

UT OT

Traditional View

Quality Loss L(y) = k (y - T)2Cost coefficient forTargetoriented Production

Q-Item

Target

Costs of quality

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Co

sts

Deviation Costs

Total costs

Fullfillment of customer perception in %

Inspection/ Failure preventionCosts

As good as possible, not as good as necessary

Influence of quality on ROI

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Company Quality

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Does Company Quality andContinuous Improvement fit together?

….and if yes, how?

Company quality plus continuous improvement

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Performance

Time

Without Continuous Improvement

With Continuous Improvement

Performance Gap

Innovation

Performance with / without Continuous Improvement

Influence by the Company Culture

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Company Culture

Schnelle Diagnose

Company Quality plus ContinuousImprovement

Fast Diagnosis

Futur orientedStrategy

ConsequentTherapie

survive Learn andlive

Live better

Liquidity

Success

FinancialResult

MarketLeader-ship

Enjoy life

Vitality, Continuity und strong discipline are the prerequisitesto be the winner of the competition

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TQM

Quality Strategy

TQM Tools

Vision

SPC Advanced Program Mgt Qup! Story Global KPI System

Initial Part ApprovalKnowledge Management

Database

SQA Mgt

Advanced R&R QCDMS

Poka Yoke Scrap Reduction Prog. FMEA PDCA

Policy & Strategy Leadership People

Partnership & Resources Processes

Key Performance Results People Results Customer Results Society Results

Program Management Audit

Quality Training

Sustainability

Qualificiency as a model

Four Areas of Qualificiency

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Increase of „Qualificency“– Profit Improvement through higher Quality

4. Supplier-QM

INPUT ENABLERS in the organization RESULTS

1. BeforeSOP

2. After SOP

3. After Delivery

Advanced QM Operative QM Customer QM

Change

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The openess for CHANGE will beone of the most important

success factor for your company

…..everywhere and everytime!

K&C-Supporting areas

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Consulting

Coaching

Training

Interims-Management

Lean Company

Qualificiency Advanced Development

Factory Construction

CEE

Contact

Kleinmann & Consultants GmbHManaging Partner Dipl. Ing. Peter Kleinmann

Goethestrasse 1997523 Schwanfeld

Phone: +49 (0) 9384 903430Fax: +49 (0) 9384 903413Mobile: +49 (0) 171 3715266Email: peter.kleinmann@kleinmann-consultants.deInternet: www.kleinmann-consultants.de

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