GE TRANSPORTATION

GE Works Divider Slide LayoutsJanuary 2012

General Information

GE Transportes Ferroviários

Since 197214.000 m2

~550 employeesUS$340M in 2011

CONTAGEM

2011

+140 locos

60’s 70’s 80’s 90’s 2000 2011

1962GET in

Campinas/SPService

1972GET in

Contagem/MGNew Locos

History...400`MUS$

Focus on repair and modernize

locomotives

2008AC4400

Localization Plan

20091a AC44 made in

Brazil

2009Exportation

of locomotives to Nigeria

200MUS$

2004Focus on new

products: -

Exportation of

locomotives to Africa

- Traction Motors

2008New

production line 2011

ITS Business

$50M

2013

+ 1300 units delivered

0

200

400

600

800

1000

1200

1400

1600

0

20

40

60

80

100

120

140

160

Number of locomotives made in Brazil

Nu

mb

er

of

locom

oti

ves -

Acu

mu

late

d

Volu

me o

f lo

com

oti

ves -

Year

Clients

Africa (South Africa,

Nigeria)

Colombia

Argentina

ProductsRail / Locomotives

Modernization

Evolution® Series (Imported)

C-Family

GE AC44

Dash 9

National Productio

n

PNP BNDES

Exportation

ProductsServices

• Parts

• Technical Assistance

• MSA – “Maintenance Services

Agreement” … Long Term

Maintenance Contracts

• Repair and Modernization

ProductsRail / Signaling and CommunicationSince 2009

Level Crossing

Positive Train Control

Signaling & Train Control

Switch Point Machines

GE Works Divider Slide LayoutsJanuary 2012

Productivity:WS Nozzle Fuel Injection

Productivity: WS Nozzle Fuel Injection

GE Transportation, a unit of GE, solves the world’s toughest transportation challenges. GE Transportation builds equipment that moves the rail, mining and marine industries. Our fuel – efficient and lower emissions freight and passenger locomotives, diesel engines for rail, marine and stationary power applications, signaling and software solutions, drive systems for mining trucks, and value-added services help customers grow. GE Transportation employs approximately 12,000 employees worldwide.

Initial Scenario

High demand High growth potential.

Flat production

Limiting factor Production lot size; Cycle time (lot) = Available

time.

Two workers from other areas Demotivation; Lack of IP training.

Goals & objectives

Increase daily production from 16 to 25 nozzles (56%)

Improve aggregate value percentage (VA/VNA ratio) from 0.52 to 2.0 (284%);

Reduce Takt Time (Real) from 91.3 to 58.4 (36%).

Define

• Scope and Timeline Definition• Initial Analysis• Process Map Definition

Measure

• Chronoanalysis• Data Table• Value Stream Map

Analyze

• Spaghetti Diagram • Cause and Effect Diagram• Priority: Effort x Impact

Improve

• Bottlenecks Identification• Job Sequencing• Kaizens Implementation

Control

• Standardization• Visual Management• Control Methods Implementation

Project Schedule

Lean ToolsProcess Flow

DiagramChronoanalysi

s

Value Stream Map

Spaghetti Diagram

1 2

3 4

Matrix: Effort x Impact

Ishikawa Diagram

Kaizens

Job Sequencing

Visual Management

PDCA

P

DC

A OEE

Quality

Performance

Availability

Brainstorm

Problem StudyData CollectionCause Analysis

Action Plan

Job sequencing

Monitoring of job sequencing and identification of

problems

Plan

DoCheck

Act

Correction of identified problems

Standard

Final Standard work sheet

Ultrasonic Washing

Before:

1h06’

Before:

1h30’

Before: 15’

Before: 56’

Time Waste

Time Waste

Time Waste

Start at 7:30 a.m.

Finish at 4:40 p.m.

32 nozzles

Finish at 3:50 p.m.

Start at 7:30 a.m.

Desmontagem Escova de aço

Retífica

Escorredor

Bancada

Lavagem dealta pressão

Peritagem

Pré Montagem

TestePOP

TanqueTipagem

Em

bala

gem

Lavador

Recebimento Entrega111.5m

Desmontagem

Escova de aço

Retífica

Escorredor

Bancada

Lavagem dealta pressão

Peritagem

Pré Montagem

TestePOP

TanqueTipagem

Em

bala

gem

Lavador

Recebimento EntregaAvailability

Methods Machines

Men

Nozzle StorageMaterials Delay

Job Sequencing

Preventive Maintenance

Inactive Washing Machine

Setup

CapacityCommunication

Materials

Low Productivity

Supply Chain

Damaged Materials

QualificationMotivation

Measurements

Environment

Lack of Measuring

Routine

Insalubrity

Pollution

1 2

3 4

Impact

Effort

1

1

3

2

2

32

Quantity

Action Item Date Assigned

% Complete

25 50 75 100

Kaizen Newspaper

Moving Washing Machine into Repair RoomMaintenance Machine Plan

Process visual assistance

Change the cable used in grinding

Calculator, clock and funnel

Job Sequencing

Visual Management

Packaging Material Boxes

5S Improvement

25/07/13

05/08/13

29/07/13

15/07/13

06/08/13

01/08/13

20/07/13

06/08/13

02/08/13

BeforeAfter Internal Results Reduction of 89% in walking

distance; Reduction of 70% in the

ultrasonic washing process time;

Reduction of 75% in the grinding rework;

External Results: Forklift and external washing

machine available for the use of other work stations of the building;

Reduction of lines, costs and NVA.

MOC: #422

IP Review (IP–BB-0001 and IP-BB-0011) and IP Definition (IP-BB-0021, IP-BB-0022 and IP-BB-0023)

07/08/13

Process Training 2 workers

Metrics UOM Start Goal CP1 CP2 CP3 CP4 CP5 Result % Change

Production Unit 16 56% 16 16 24 28 32 32 100%

VA/NVA Ratio

- 0.52Reach 2.0 284%

0.52 2.04 2.23 3.5 4.1 4.1 688%

Takt Time (Real)

Min/Unit 91.358.44 (36%)

91.3 50.6 50 46.6 44 44 (52%)

Target Sheet Improve

SavingsIndicator (per day) Start Final

VA rate

Production

Locomotives

34%

3216

1 2

76%

25

increase in productivity

100%

• Make it happens

Expertise 

Inclusiveness

Imagination & courage

• Customer service capacity increase

• Confiability

External focus• Efficient and simple

solutions• Make correct

decisions• Clear Process

Definition

• Teamwork

• Motivation

• Ideas interaction

• Continuous learning

• Theory application

Growth Values

• Accept risks: learn with mistakes

Clear thinker