Site visit to IMI Brno
Site visit to IMI Brno IMI Precision Engineering The Phoenix Valve Karlheinz Pfanz, Business Development Director, Brno 9 June 2015
Site visit to IMI Brno
Background ‣ Truck Powertrain Applications ‣ Tough application environment ‣ Cost (Fuel) Efficiency is significant driver ‣ 25 years experience in market ‣ Existing Platform competitiveness
Site visit to IMI Brno
Phoenix Differentiation ‣ New technology (Patent Protected) ‣ Fast Response ‣ High durability ‣ Simulates proportional behavior
Site visit to IMI Brno
Product Potential ‣ Phoenix Valves Potential
c.£35.0M p.a. ‣ Quotations submitted
c.£14.0M p.a. * Typical contract period c.7 years
‣ Contract already won
c.£4.5M p.a. Start of production (SOP) early 2017
Site visit to IMI Brno
Potentials
‣ Potential 4 Million Valves ‣ One Valve every five seconds ‣ New business model for IMI PE ‣ Prepare now for Serial Production
Site visit to IMI Brno
Site visit to IMI Brno IMI Precision Engineering Lean History Radim Polasek, Lean Champion, Brno 9 June 2015
Site visit to IMI Brno
Early Days NO HOUSEKEEPING
PRODUCTION IN BATCHES
Site visit to IMI Brno
New times
Cultural Awareness Level Production Cultural Awareness Level Production
Material Control
10 9 8 7 6 5 4 3 2 1 0
Total Productive Maintenance
Visual Management & Housekeeping Standardised Work
Flexible Operations
Quick Changeover
Continuous Improvement Error Proofing
Material Control
10 9 8 7 6 5 4 3 2 1 0
Total Productive Maintenance
Visual Management & Housekeeping Standardised Work
Flexible Operations
Quick Changeover
Continuous Improvement Error Proofing
Site visit to IMI Brno
Future
Strategy deployment Forecast planning New products introduction Lean organization Reduction of product complexity
Site visit to IMI Brno
IMI Norgren – Cooperation ‣ IMI is part of Czech Lean Community ‣ Benchmarks ‣ Workshops ‣ Congresses ‣ Seminars
Site visit to IMI Brno
Site visit to IMI Brno IMI Precision Engineering Fix8 – Rationalization and Forecasting Caroline Zyla, Global Purchasing Manager, Brno Jill Gunson, European Stock Manager, Brno 9 June 2105
Site visit to IMI Brno
Value Stream Mapping Sales order input, collating data, forecasting
Order receipt to EDC, planning, picking and replenishment, MTO & MTS, Manufacturing.
EDC receipt of materials or items, stocking, logistics and delivery
Value Stream Map
‣ To Get to Future State Need: ‣ Parts Rationalisation, Sales Forecasting, & Drop Shipment
Site visit to IMI Brno
Rationalisation Strategy 13,500 Part Numbers = 80 % Sales 00 0 , 0 5 4 t r a P e v i t c A s r e b Num
150,000 o S d e v o m e R s t r Pa Far
Phase 3: Phase 2: Parts with Phase1: low sales, Parts with no but business sales , quick impact wins
Whole product families to be looked at
Site visit to IMI Brno
Sales Forecasting 21% Cost of Goods Sold = Customer Forecast
Phase 3:
102 ry o t n e Inv Days
82% On Time Delivery Non Stocked Products
Phase1: Establish Procedures & Systems 31 March 2015
Phase 2: Pilot All Regions 30 June 2015
Global Rollout 30 Sept 2015
Site visit to IMI Brno
Why These Projects? Optimise Establish accurate and reliable sales and financial forecast planning Rationalise Reduce and standardise our product portfolio from 450,000 to 50,000 SKUs
“TOGETHER, we will improve our competitiveness and build a strong platform for future growth.” Mark Selway Group CEO and Precision Divisional Managing Director
Site visit to IMI Brno
Site visit to IMI Brno IMI Precision Engineering Smart Solenoids – Successful Valves Ondrej Simonek, Process Engineer, Brno 9 June 2015
Site visit to IMI Brno
Continuous Improvement
IMPROVEMENTS
DESIGN COMPETITIVE PRICE AND QUALITY CUSTOMER SATISFACTION
PROCESS WORLD CLASS PRODUCTS TECHNOLOGY
GROWTH
Site visit to IMI Brno
Why are Solenoids important? Customers Want ‣ Larger Valve Flow Rates ‣ Smaller Products ‣ Solenoid Performance!
Value Engineering ‣ New Materials ‣ Reduced Size
Site visit to IMI Brno
Value Engineering
‣ New Technology ‣ Reduced Cost
Old technology:
New technology:
Welded contact by flame
Pressed IDC contact
‣ Improved Design ‣ Collaboration
Reduced encapsulation and optimized circuit
Site visit to IMI Brno
‣ Better Productivity ‣ Better Logistics ‣ Better Quality ‣ Automated Efficiency
FLOW
‣ Pull & Partial Flow
Pull
Pull
Flow
BUSINESS
‣ Safer Workplace
PRODUCTIVITY
LEAN improvements
Site visit to IMI Brno
Site visit to IMI Brno IMI Precision Engineering How Flow generates Cash Tomas Petrik, Logistics Manager, Brno 9 June 2015
Site visit to IMI Brno
How to Manage a Supply Chain
Push
Purchasing - ERP Forecast or Stock Over-production
Pull
Batch Production Only When Consumed Needs Stable Demand
Flow
Just in Time Deliveries Load Leveling Needs Good Forecast & OEE
Site visit to IMI Brno
Stock turns
How to Manage a Supply Chain 16 14 12 10 8 6 4 2 0
Push
Pull
Flow
Site visit to IMI Brno
Real Life Case - Commercial Vehicle Stock development CV
Stock value
4.5 4
Stock value ( mio GBP
3.5 3 2.5 2 1.5 1 0.5 0 2011
Push
2012
2013
Pull
2014
today
12/2015
Flow
Site visit to IMI Brno
Our Take on Lean ‣ PULL systems improved stock turns 25% ‣ FLOW is more difficult ‣ FIX 8 ‣ Sales and Operational Planning ‣ Part Number Rationalisation ‣ Direct Shipments ‣ IMI Precision Engineering Brno leads the way ‣ Collaboration & Sharing increases rollout speed
in IMI
Site visit to IMI Brno
Site visit to IMI Brno IMI Precision Engineering Level loading, flow and Setup Reduction Stanislav Zednicek, Senior Planner, Brno Dusan Muzikant, Senior Engineer, Brno 9 June 2015
Site visit to IMI Brno
Grandfather of Phoenix 20 years old design 12 years made in the Czech Poka Yoke systems Stable Quality < 10 PPM 700 000 pcs / year
Site visit to IMI Brno
Cartridge Valve – Level Loading Benefits
250
No Spikes Less Lead Time Reduced Stock
Requirements Forecast accuracy OEE Set up times
Stock Value [k £]
Continuous production
200
-90%
150 100 50 0 The past PUSH
2014 PULL
Today Year end Future FLOW
Site visit to IMI Brno
SMED LEAN tool
Site visit to IMI Brno
Reduction of setup time = SMED VARIETY (12 000 PN)
Setup time QUALITY REQUIREMENTS
TRACEABILITY
MAINTENANCE
4 250 hours/month
Site visit to IMI Brno
Use in other areas Learn leveling with current products Lean environment before Phoenix
NEEDED FOR PHOENIX
We will continue
20k pcs / day Handling with 40 pallets daily Stockturns > 20 / year
Site visit to IMI Brno
Site visit to IMI Brno IMI Precision Engineering Zetor Tractors - Creating Customer value in Eastern Europe Oto Zatloukal, Technical Director, Brno Miroslav Kazda, Senior Design Engineer, Brno 9 June 2015
Site visit to IMI Brno
Technical Center Brno Introduction ‣ Founded in 2004 ‣ Core activities: ‣ Central & Eastern European projects ‣ Site support / Value engineering ‣ Commercial Vehicles, Rail, Industrial automation ‣ Current state ‣ 25 engineers ‣ Laboratory for testing and validation ‣ ISO TS 16949 certified
Site visit to IMI Brno
Zetor Tractor Applications FORTERRA HD
PROXIMA POWER FIRST IN 2009
Released products
LAST IN 2014
2005
1946
Thousands tractors per year
DIAGNOSTIC SYSTEM
8 7 6 5 4
‣ each year, new product equipped with IMI systems
3 2
‣ at least two projects on go simultaneously
1 0
2007 2008 2009 2010 2011 2012 2013 2014 2015
§ ZETOR PRODUCTION (UNITS) § IMI SALES (k€)
‣ focus on technically advanced product lines
Site visit to IMI Brno
Zetor Tractor Applications NEW PROJECT - Double Clutch Transmission Control ‣ engine to transmission two way CAN communication ‣ load sensing for lower emissions and fuel usage ‣ ISO BUS implementation as next step
‣ fully automated transmission ‣ all speeds shifted under load ‣ all speeds reversible under load ‣ improved efficiency ‣ driver-friendly / comfortable
Site visit to IMI Brno
Site visit to IMI Brno IMI Precision Engineering Mix Model Lines – Reducing Complexity Marek Musil, Process Engineer, Brno 9 June 2015
Site visit to IMI Brno
Saved area
V64 V68 F68 B68 R68
F64 L64
L68
R64
68 Series production line
Simulation area
64 Series production line
FRL production - Current and future layout
B64
‣
Current area 280 m2
‣
One shift production 170 m2
‣
Line utilization 20% (one shift production only)
‣
Mix model line 48 m2(2 or 3 shift production)
‣
1500 part numbers , 9 production lines
‣
Saved area 120 m2
‣
2014 Sales: 1,8 million GBP
Site visit to IMI Brno
Mix Model line layout
Test 1 Test 2 Tested units
Packaging
64 Series production line
Tested units
Test 1 Test 2
Test 3
Test 4
68 Series production line
Test 3 Test 4
Packaging
Site visit to IMI Brno
Expected benefits
‣ One piece flow, Level-Loaded ‣ Save space approx. 120 m2 ‣ Increase line utilization from 1 shift to 3 shifts
Site visit to IMI Brno
Site visit to IMI Brno IMI Precision Engineering Direct Shipping Tomas Petrik, Logistics Manager, Brno 9 June 2015
Site visit to IMI Brno
Current State
‣ Always through EDC ‣ Transportation ‣ Increased lead time ‣ Complex Supply Chain
Site visit to IMI Brno
Why Direct Shipment? ‣ Reduces complexity ‣ Provides visibility ‣ Improves customer service ‣ Reduces lead times
Site visit to IMI Brno
Future State ‣ Phase 1 – Completed: ‣ Czech Sales ‣ Phase 2 – Q3 2015: ‣ Commercial Vehicle Products ‣ Phase 3 – Q4 2015: ‣ Investigate Further potential
