634114978819478856

Developing & Leading a mature lean organisation
Strategy Actions Results Standards The way we do things at Autoliv
Copyright Autoliv Inc., All Rights Reserved
Complete Safety System Supplier

Vision System Inflatable Curtain Passenger Airbag
Technology
Rear Side Airbags Pedestrian Protection
Seatbelt Systems Pelvis & Thorax Side Airbag Anti-Whiplash System Electronic Control Unit (ECU) Driver Airbag Steering Wheel Anti Sliding Airbag Knee Airbag Driver Assist Radar Satellite Sensor
Night Vision System
Other Important Products: Child Seats Active Seatbelts

APS/Lean Summit/2010
Autoliv in Brief

Sales and technology leader Sales: US $6.5 billion Fortune 500 company Sales to all major vehicle manufacturers producing countries lean system, APS. North America 24% Japan 11%
Autoliv in Brief
RoW 12%
~80 facilities in 29 vehicle All facilities have deployed Autolivs

53% Europe
13 technical centers in 9 countries and

21 crash test tracks in R,D&E
~38,000 associates and 3,600

APS/Lean Summit/2010 Copyright Autoliv Inc., All Rights Reserved
Autoliv in the World
Autoliv in Brief
Canada
USA
Mexico
EUROPE Estonia France Germany Hungary Italy Poland Romania Russia Spain Sweden Turkey UK
Japan China Tunisia India Thailand Malaysia Korea Taiwan Philippines
Brazil
Indonesia Australia South Africa
Our Belief
It is not the strongest of

the species that survives, nor the most intelligent, but the one most responsive to change.
Charles Darwin
Autoliv Production System

Introduction
Autoliv Production System

The Autoliv Production System (APS) is the formalization of the Autoliv business culture based on the Toyota Production System (TPS) to help every single Autoliv plant grow towards excellence. With APS each Autoliv plant is working towards the same vision, to improve:
Profitability Competitiveness Satisfaction (Shareholders, Customers,

Employees & Society)
Who will benefit from implementation of APS:
Customers Company/Shareholders Employees Society

Creating APS

APS was created based on TPS and LEAN concepts and launched to all Autoliv facilities during 2001-2002. TPS
Just in Time
L
Manual /Automatic Line Stop Labor -Machine Separation Error Proofing Visual Control
5
LEAN
Built-in Quality
A
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ti
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Pre-Conditions :
Contin ious Flow Pull Systems Takt Time Level Production Flexible, Capable, Highly Motivated People
Operational Stability
Standardized Work Total Productive Maintenance Robust Products & Processes Supplier Involvement
APS
A t li
to m Cu s ers
The New Generation of Manufacturing Companies make use of less resources of everything
Just in time
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Employee involvement
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Culture CULTURE
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APS HOUSE
Profitability Competitiveness Satisfaction
Just In Time
Leveling Continuous Flow Pull System Takt Time Fre Deliveries Line Concepts
Employee Involvement
Safety/ Ergonomy Flexibility & Motiv. Discipline to Stds Cont Improvement Process & Result Don't Blame/Judge
uality First
uality Assurance uality Methods Six Sigma
Team Work
Standards
MUDA Elimination
T.P.M.
PRIVATE PROPRIETARY
APS is the worlds best practice way of doing our job.
Policy Deployment at Autoliv
How do we get everyone working towards our strategies every day?
Do people know what we

want? Do people care? How do we know they are working on important improvements first? How do we get buy in? How can we follow up without smothering?
The Compass
The compass is a very useful tool if we are lost or not sure which direction to go. Take any compass and it will point in the same direction. True North.
Policy Deployment

Would it be useful to a business to have all its employees putting their efforts to move the company in the same direction? Policy Deployment is the tool that helps the employees to see the company plan direction.
Autoliv Global Policy Deployment
Annually Autoliv Globally uses Policy Deployment to drive the

following key indicators.

Quality Cost Reduction APS Deployment (Lean) Test Centre Efficiency Operations Efficiency Financial Reporting (Time & Accuracy of Forecast)
Policy Deployment at Autoliv
How the Policy Deployment is created
Policy Deployment Process Overview

Company Level
Develop 5-year Plan Prioritise current period Define Shared Ownership
Department Level
Department Drafts KPIs and Priorities Senior Management reviews and agrees on shared targets Department finalises Policy Deployment and presents it
Input
Sub-Department Level
Each level decides how it can support achievement of level above to meet Department KPIs Submits Draft Policy Deployment for approval.
Input

Company Level
Department Level
Input
Input

Company Plan
Reporting Target Setting

Senior Manager Policy Deploy.
Deployment Target Agreement

Dept. Manager Policy Deploy.
Staff Policy Deploy.

Example of Dept level Policy Deployment.

Company Level
Department Level
Input
Input
Review Fre uency
Updated Monthly Monthly review of Department Level Policy Deployments 6monthly review of Individual Staff Deployments by Managers Linkage to Pay reviews. Manufacturing Department internal review Weekly. All Policy Deployments for Departments and Work Groups
displayed. Regular review with Managers.
Visual Displays in work areas.
Office
Factory
Visual Displays in work areas.
Work Platforms
Policy Deployment Objective
Get everyone to understand the Company plan direction.

Allow all employees to see where their tasks contribute to the company plan. Provide clarity to all Staff Link Department Plans to Company Plan Link Individual targets to Department & Company Plans. Standardise target Format Monthly Scoring/Planning to aid self direction & Performance Review One Page Target Report to be Displayed in Work Area. Aid Communication up and down the Organisation Facilitate Employee input to company plans Reduce Direct Supervision time Empower Self Directed work teams with common goals. Move Decision Making to lower organisational levels. Encourages Planning for Continuous Improvement
People at Autoliv
OK team!
Flexibility & Motivation

Safety/ Ergonomics Flexibility & Motivation Discipline to Standards Continuous Improvement Process & Result Don't Blame/Judge
Communicate, Communicate, Communicate!
Satisfying Work
Flexible & Motivated Employees
Employee Development
Valued Employees
Training Doing Training Doing Training Doing
Our strategy us to train then apply learning straight away.

Training is cascaded. The trained become the trainers. Training is a key element of all improvement workshops
Self Directed Work Teams
Bringing multi-discipline and multi-functional people together.

Speeds up communication and improvement. Shared Goals and share understanding. Empowers all levels of organisation. Reduction in noise and waste between employees and functions.
Celebrate
Celebrate all improvement large and small.

Use close out of workshops as recognition opportunity. Encourage and reward initiative. Mix formal and informal opportunities to praise and teach.
Improvement at Autoliv
Continuous Improvement
Workshops
Cross Functional Teams

Specific improvement Objective Learning Opportunity
Waste Elimination
Fundamental behind all activity

Autoliv identifies 7 types of waste All employees trained to spot each type of waste.
5S Improvement Foundation
Everything has a place and is in its place.

Everyone can see problems, waste and improvement areas Powerful knowledge
make workplace safer, simpler, cleaner & clearer
Autoliv Global Policy Deployment Driven through 4 Streams

Eliminate bad designs Eliminate bad components
uality
Eliminate bad manufacturing
Eliminate nonconforming products
ZERO DEFECTS
Autoliv Product Development System (APDS) Autoliv Supplier Manual (ASM) Autoliv Production System (APS) Autoliv Quality System (AQS)
Global Customer Reject Index

Index (2004=1.0)
uality
Waste has no where to hide at Autoliv
Visual Management
Material System Overview

HEIJUNKA
Customer
Kanbans sent 3 x per day
Each Box Taken releases a Kanban Kanbans to line every 20mins same qty each time Finished Goods Buffer
Material Flow Information Flow

Completed product sent to Store every 20mins LINE

Visual Management - Line
ueue
Yellow Means Running too fast. Minus 1 operator from Cell Green means running to Takt time. OK. Red means running too slow take action. Blue means tell management. Serious issue may lead to missed supply to Customer.
Visual Management
Manager or Employee can easily see current condition.
Visual Management
Only have signals for what is important.

Reaction to condition must be clear. Responsibility must also be clear. If you measure and chart ensure the following
Desired condition or target is shown. There is a displayed action plan to improve. Display who us responsible to update. Ensure the team understands the chart. Area leader must discuss chart with team regularly.
Dont be afraid to stop measuring and displaying if there is no value.
Avoid Signal Clutter
Standards & Discipline at Autoliv
Standards and Discipline
Standards & Discipline
Always update the standard when an improvement is made.

Ensure PDCA discipline in everything
meetings workshops quality improvements Safety alerts and investigations testing , design etc.
Role of Standards in Continuous Improvement

How to implement ?
Standards (documented work instructions, procedures, etc.) are the wedge that keeps us from sliding back
Continuous Improvement
Discipline to Standards
What is the result when we do

not follow Standard?
Waste increases Quality Problems Cost increases No way to see whatvs normal or
abnormal In short we have Chaos
Safety/ Ergonomy Flexibility & Motiv. Discipline to Stds Cont Improvement Process & Result Don't Blame/Judge
The solution is at the workplace at Autoliv
Key Lessons
Key Lessons
Go to the workplace to find the answer

5S is the platform for improvement and Visual Management Management must demonstrate commitment, daily. Business Plan Deployment is at the core of the Autoliv Improvement Culture Plan Do Check Act runs through all processes Celebrate all improvements large and small Without Standards and Discipline there is only failure and chaos Passion Persistence Publicity
Autoliv
Every year, Autolivs products save over 20,000 lives
The Worldwide leader in Automotive Safety Systems The Worldwide leader in Automotive Safety Systems

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Developing & Leading a mature lean organisation

Strategy Actions Results Standards The way we do things at Autoliv

Copyright Autoliv Inc., All Rights Reserved

Complete Safety System Supplier

Rear Side Airbags Pedestrian Protection

Night Vision System

Other Important Products: Child Seats Active Seatbelts

 ~80 facilities in 29 vehicle  All facilities have deployed Autolivs

 13 technical centers in 9 countries and

 ~38,000 associates and 3,600

Autoliv in the World

Japan China Tunisia India Thailand Malaysia Korea Taiwan Philippines

Indonesia Australia South Africa

Copyright Autoliv Inc., All Rights Reserved

It is not the strongest of

Copyright Autoliv Inc., All Rights Reserved

Autoliv Production System

Copyright Autoliv Inc., All Rights Reserved

Autoliv Production System

Profitability Competitiveness Satisfaction (Shareholders, Customers,

Who will benefit from implementation of APS:

Customers Company/Shareholders Employees Society

Copyright Autoliv Inc., All Rights Reserved

Pr fit ilit titi S ti f ti

The right part at the right time in the right amount

56U8 5 T5S 5         #         "   ! !  I " 9 9 8 7 6 5 P

Profitability Competitiveness Satisfaction

Copyright Autoliv Inc., All Rights Reserved

APS is the worlds best practice way of doing our job.

Copyright Autoliv Inc., All Rights Reserved

Policy Deployment at Autoliv

Copyright Autoliv Inc., All Rights Reserved

How do we get everyone working towards our strategies every day?

 Do people know what we

Copyright Autoliv Inc., All Rights Reserved

Copyright Autoliv Inc., All Rights Reserved

Autoliv Global Policy Deployment

 Annually Autoliv Globally uses Policy Deployment to drive the

Copyright Autoliv Inc., All Rights Reserved

Policy Deployment at Autoliv

How the Policy Deployment is created

Copyright Autoliv Inc., All Rights Reserved

Policy Deployment Process Overview

Policy Deployment Process Overview

Policy Deployment Process Overview

Reporting Target Setting

Deployment Target Agreement

Staff Policy Deploy.

Example of Dept level Policy Deployment.

Copyright Autoliv Inc., All Rights Reserved

Policy Deployment Process Overview

Copyright Autoliv Inc., All Rights Reserved

Copyright Autoliv Inc., All Rights Reserved

Copyright Autoliv Inc., All Rights Reserved

Review Fre uency

Copyright Autoliv Inc., All Rights Reserved

Visual Displays in work areas.

Copyright Autoliv Inc., All Rights Reserved

Visual Displays in work areas.

Copyright Autoliv Inc., All Rights Reserved

Policy Deployment Objective

 Get everyone to understand the Company plan direction.

~80 facilities in 29 vehicle All facilities have deployed Autolivs

13 technical centers in 9 countries and

~38,000 associates and 3,600

It is not the strongest of

56U8 5 T5S 5 # " ! ! I " 9 9 8 7 6 5 P

Do people know what we

Annually Autoliv Globally uses Policy Deployment to drive the

Get everyone to understand the Company plan direction.

Our strategy us to train then apply learning straight away.

Bringing multi-discipline and multi-functional people together.

Celebrate all improvement large and small.

Cross Functional Teams

Fundamental behind all activity

Everything has a place and is in its place.

Manager or Employee can easily see current condition.

Only have signals for what is important.

Avoid Signal Clutter

Always update the standard when an improvement is made.

What is the result when we do

Go to the workplace to find the answer