lely operational excellence 20140402
DESCRIPTION
ÂTRANSCRIPT
www.lely.com
Peter Smit
Lely Introduction
Corporate Movie
VISION A sustainable, profitable and enjoyable future in farming
MISSION
We inspire people to create innovative
solutions that help our customers excel in
sustainable milk production, forage
harvesting and energy sourcing.
Sales level € 570 mln. (2013)
Number of employees 2.000 fte
Investments in R&D from
our product turnover
6%
Number of living patents 2.550
Number of R&D units 7
Number of production units 6
Number of markets > 60
COMPANY PROFILE
Turnover Lely Group (in million EUR)
2013: the next step in
business management
• At the end of 2013, Lely moved to the Greenest Innovation Campus.
• The Campus is housing the employees of the Lely Group headquarters
and the two production locations.
The Lely Campus
Lely Astronaut Automated milking system
Lely Vector Automated feeding system
Lely Juno Feed pusher
Lely Discovery Mobile barn cleaner
Dairy products
Lely Splendimo Mowers
Lely Lotus Tedders
Lely Hibiscus Rakes
Lely Tigo Loader wagons
Lely Welger Balers
Forage products
From Grass to Glass…
The cow is always the starting point for each and every product!
Focus
Warranty :
• Improving warranty procedures
• Optimization of our product development process
• Alignment of warranty conditions
Quality :
• Improving our reliability of delivery
• Extra end control of whole goods
www.lely.com
Erik Nijssen, Plant Manager
Dairy Operations
Operational Excellence & Quality
Content
1. Dairy Operations Products
2. Factory lay-out and relocation
3. Quality
4. Specifics Operations
Lely Astronaut Automated milking system
Lely Vector Automated feeding system
Lely Juno Feed pusher
Lely Discovery Mobile barn cleaner
Dairy products
Movie Austronaut Production
Lay out and relocation
Layout en verhuizing Uitgangspunten
• 15% meer oppervlakte en 60% meer capaciteit (!)
• Flow: • Achterwaarts laden en lossen
• Optimalisatie goederen ontvangst
• Minimaliseren magazijn ruimte
• Veiligheid • Reductie reach- en heftruck treintje
• Duidelijke transport- en bezoekerspaden en onderscheid pallets en kleine dragers
• Efficiency / flexibliliteit • Minimaliseren van materiaal handling, one touch
• Geen bovenloop kranen
• Administratieve herindeling
Lay-out development
Final Master layout………
Preparation
• Rapid Experiment with relocation company
• Over 100 learnings
Preparation
Verhuizing
• 14,000 m2 in 18 dagen
• Equivalent aan 3 voetbalvelden of 6,5 woning (per dag)
• 70 eigen mensen
Relocation
Quality
Quality can only be maintained and improved
there were it is made
Reject rate long term positive
The general development of the reject rate has been positive for
the last couple of years.
Reject rate long term positive, but…..
Reject rate of 0.8% sounds good (?), but
Would you put you family on a plane with a 99,2% success
ratio?
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0,992x0,992x0,992x0,992x0,992x0,992x0,992x0,992x0,992x0,992x0,992x0,992x0,992x
0,992x0,992x0,992x0,992x0,992x0,992x0,992x0,992x0,992x,992x0,992x0,992x0,992x0,
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…
Reject rate long term positive, but….. …0,992x0,992x0,992x0,992x0,992x0,992x0,992x0,992x0,992x0,992x0,992x0,992x0,992x0,992x0,992x0,992x0,992x0,992x0,9
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An Austronaut has 600 purchased parts (excl. screws, bolts, etc) chance of getting it right
is 0,8%.
What is Lely doing to improve?
IPC (In process control)
IPC is all about putting responsibility back at the
source; the production cells.
Each cell sign off a product which is stated by
them to live up to expectations for the clients (final
customers AND next cell). Each next cell sign for
acceptance of a good semi-product.
LQI (Lely Quality Index)
A4 RU
Product Catagorie Zijde/onderdeel Omschrijving Artikel nr. Norm (NC) Weging Low score High score Low fouten High fouten Totaal
A4 RU Visueel Voorzijde(Links) Las verkleuring onder 30 5 20 1 150
A4 CU Visueel Voorzijde (Rechts) Vlekken aanwezig 5.1004.1375.0 30 5 20 1 150
A4 RU Visueel Voerbakzijde Plaat niet goed gemonteerd 5.1004.5384.0 30 5 20 1 600
LQI defines the quality delivered by our factories,
departments and assembly groups in a value
based on the quality level of our products
(SQR) Supplier Quality
Requirements
SQR further defines the quality expectations of
suppliers for Lely. Expectations on
management systems, continuous
improvement, quality control, AQL, preventive
and corrective measures are included.
What is Lely doing to improve?
Welding standards on technical drawing
Suppliers Day
Specifics Operations
Specifics
Specifics
Specifics
www.lely.com
Peter Smit
Supplier Cooperation
• 2010 - Make shift from operational to strategic
• 2011 - DMO Strong focus on cost reductions
• 2012 - Alignment of organization to NPI
• 2013 - Operational excellence
• 2014 - “Back to the basics”
“ To develop and manage a supplier base that will give Lely a competitive edge in terms of quality, operational excellence, total costs and innovation”
Lely purchasing
Direct Spend 2013 Overview
Suppliers by BU Spend € M % in Total Spend # Suppliers
Electronics € 180 52% 212
Steel € 120 38% 778
Other € 35 10% 239
TOTALS € 335 1.229
Supplier Relationship
Supplier
performance
2
3
1
Supplier
monitoring
Reactive supplier
relationship
Professional supplier
relationship (Win-Win)
Journey to
World-class
Value Sourcing (QLTC)
Aim to have a close cooperation with supplier to:
improve Quality
optimize Logistics
make use of Technology and Innovation
lower total Cost
by:
Setting up teams with people from: Quality, Logistics, Planning,
Engineering, Purchasing supported by Legal, Finance, and other
stakeholders from both Lely and supplier.
And monitoring progress through mutually agreed KPI’s.
Purchasing Reports & KPI’s
Existing reports
• On time delivery > 95%
• Reject rate < 0,4%
• TCO improvement 3.5%
Future reports
• Inventory @Lely per supplier 45% less than 2013 avg
• Warranty costs > 50%
• Quote + lead-time for new item < 3 weeks
Digital dashboard
www.lely.com
Questions & answers