European Regions for Innovative Productivity · 2011-01-30 · DOUKI-SEISAN ACHIEVEMENT OF QCDP...
Transcript of European Regions for Innovative Productivity · 2011-01-30 · DOUKI-SEISAN ACHIEVEMENT OF QCDP...
European Regions
for
Innovative Productivity
Dr Colin Herron
• 31 years experience of the automotive industry.
• 17 years with Nissan.
• Worked in Nissan Quality, Engineering, and
Purchase departments in the UK, Spain and Japan.
• 9 years in the Nissan Supplier Development Team.
• 4 lean benchmarking visits to 27 companies in Japan.
• Visiting Professor of Engineering (Newcastle University).
• Manager and founding member of the NEPA team.
• Responsible for manufacturing in Regional Development A
Agency (RDA).
•With a regional economy of £38.8bn, North East England is
the smallest UK region, However:
•North East England produces 1 in every 5 cars made in the UK
•Over 500 leading international companies, including 40% of
Dow Jones listed businesses, have made the region their home
•The North East is well connected to Europe with:
- two international airport
- three main ports
• Five universities
Regional profile
•One-fifth of the UK’s production capacity for process industries is
based in the North East, including 58% of its petrochemical
industry, 35% of its pharmaceuticals and a major share of its
speciality chemicals sector.
•Over 70% of the platforms operating in the North Sea were built on the region’s major rivers
•Over the past three years, North East England has had the highest
number of new technology start-ups in the digital media and
animation field, outside London, according to the London Business
School
Regional profile
Low cost economies
The conscious or unconscious
ability of our manufacturing to run their own businesses effectively.
Energy prices
Lack of innovation
Problems!
NMUK has been the most productive plant in Europe for the last several years, and the largest car producer in the UK for the last three years.
Our 6th University
Semi-Direct
Indirect
Direct
14%
63%23%
People Facts
NMUK’s total workforce of c.5000 is split into three areas
of operation.
- Direct staff (manufacturing)
- Semi-direct (eg QA, maintenance)
- Indirect (engineers, administrative)
- Capacity 500,000
- 2007 production 353,000 vehicles
- About 75% of NMUK output is exported to over
55 countries worldwide
- Workforce is currently 4,500-5,000
Production Facts
What can we learn from an exemplarsuch as Nissan?
•Nissan is split into autonomous units which are interlinked.
•The Supervisor is in effect a plant manager of an SME.
•Every year the Supervisor has to make his business more effective.
•The Supervisor has no spare staff.
•Planning works on JIT
•The Sunderland plant is designated the training centre for:
UK, Russia, Africa, India, Morocco and Iran
Individual responsibility of
a Nissan Supervisor
Facility
SafetyProcessChange
Quality
NPW
CostOperation
Training
People
NISSAN PRODUCTION WAY (NPW)
IDEAL MANUFACTURING SYSTEM
DOUKI-SEISAN
ACHIEVEMENT OF QCDP TARGETS
Genba Kanri (shop floor)
QCS PLM
JIT
Production
Prod Control EngineeringQuality Assurance
IMPROVEDCUSTOMER
SATISFACTION
IDS
GK (shop)
The Nissan productionway (NPW)
Safety Quality Productivity Cost HR
Set up standard
Check abnormality
Kaizen
PD
CA
TPS = Make problems andopportunitiesfor kaizen visible
J. K. Liker Toyota culture 2008Without kaizen the tools of TPS
would be useless
Nissan definition of Kaizen
“ Renew the heart to let it make good”
KaizenChange / New Begin / Spirit
Kaizen = Continuous Improvement
The North East ProductivityAlliance (NEPA)
� Operational in 2003
� Led by industry, focusing on the needs of industry
� Improving the productivity of all manufacturing sectors
� Developing long-term sustainability
� Maximising the return on public and private investment
� Provides a tailored package of support
� Has a provenance back to Honda, Nissan and Toyota
NEPA
IndustryEducation
The North East Productivity Alliance
Regional Development Agency
The founding conceptof NEPA was to disseminatethe best practice of Nissaninto general manufacturing.
This will be the basis of theERIP methodology
The concept for NEPAand ERIP
What is Lean manufacturing?
TQC
Pull systems
Andon
5 S
Kaizen
Agile
OEE
FMEA
Toyota production system
SMEDKan Ban
Quality circles
MRP
TPM Genba kanri
6 sigma
Poka Yoke
Hoshin Kanri
RCM
VSMERP
TQM
JIT
MRP 2
Jidoka
Heijunka
Kaizen blitz
Kaikaku
Chaku-chaku
MudaTAKT
My image of what can happening
The theory of abstractionand application
Theory proposed by Paul Lillrank
Recipient
Transfer
CopySource
Application
Abstraction
CopyJAPAN
Transfer
Application
Abstraction
Basis of the NEPA methodology
CopyingCompany
Copying
Transfer
Abstraction
Application
Transfer
Application
Abstraction
Abstraction
Application
ExemplarIPC
IPC
IPC
North East model
Anybody who makes something
Target is less than 150 staff
Who is it for?
SME
SME SME
SME
SME
SME
The concept for NEPA and ERIP
(Using the UK as an example)
Exemplar
University
IPC
Development Agency
Current performance
metrics+
Diagnosis of current
manufacturing needs =
Business
needs
Support group
Strategy
Activities
Training
Local government
Industry
University
Local government
Industry
University??
Knowledge transfer
Local government
Industry
University??
Local government
Industry
University??
Local government
Industry
University??
Local government
Industry
University??
Partner A Partner B Partner C
Partner D Partner E Partner F
RDA RDA RDA RDA
HEI HEI HEI HEI
SME SME SME SME
EX EX EX EX
IPC IPC IPC IPC
Transnational
Transnational
Optional transnational(not funded by the programme)
High level of transnationalexchange
High level of transnationalexchange
Country A Country B Country C Country D
Internal
Main transnational work
Knowledge transfer
Main transnational work
1. IPC to IPC
2. IPC to Exemplars
3. HEI conferences/seminars
4. RDA Strategy setting
5. Lead SME meetings
6. SME conferences
7. Communication
Role of IPC
1. Manage the regional programme
2. Work with HEI (universities) to measure impact
3. Produce case studies
4. Attend/organise transnational events
5. Pilot the methodology
6. Collate and feedback outputs/findings
•Identify the IPC members
•Identify the participating
SME
WP 2
SME ClusterMembers/partners
Country A
HEI (University)
Exemplar
RDA
Chamber
Others
Wo
rk p
ackag
e 1
Wo
rk p
ackag
e 7
SMEPartners SMEPartners SMEPartners SMEPartners
Country A Country B Country C Country DWP 2
WP 4
WP 6
IPC IPC IPC IPCWP 3
IPC IPC IPC IPCWP 5
Copyright (c) Colin Herron One Northeast 2007
Evaluation
Copying
Recipient
company
Transfer
Application
Abstraction
P
N
A
IPC
A word of cautionA word of caution
90% of change programmes fail
Up to
The NEPA Programme Statistics
�Jobs Safeguarded 3,042
�Jobs Created 200
�Total Number Trained 5,900
�SME’s engaged 183
�Non-SME’s engaged 119
©Colin Herron 2007
TMD Friction Ltd could this year increase production on one of
their pressing lines by up to 30% - saving them almost £500,000 a
year.
TMD
An historic North East manufacturer with links to the region’s
proud rail past has embraced the latest business productivity
techniques to win new orders worth over £300,000.
Henry Williams
A WEARSIDE manufacturing company has won valuable new
contracts worth nearly £100,000 after adopting the latest
business improvement techniques to make it more productive.
Faraday
The firm which employs 316 staff in the North-East needs 30 extra
machinists to help make 20,000 of its world famous wax jackets at its
South Shields base. Barbour is now in a position to bring work back
in-house after training from NEPA, an advisory body.
Barbour
©Colin Herron 2007
“The result has been increased staff retention – 35% up from 2004 - and currently we are on track to achieve
a further 25% retention increase this year. “We have also improved efficiency in terms of throughput rates
and cost reductions, both of which have enabled the company to increase profitability year on year.”
International Cuisine
Rosemary Bertram, A&J Scott finance director said: “Our data collection so far has proven that by adopting all the
lean manufacturing techniques learned on the NEPA masterclass we can achieve an increase in turnover of £1.1m
with an initial investment of £40,000 to automate some of the changeovers.
A and J Scott
2008 2009
J J A S O N D J F M A M J J A S O N D
IPC Membership
WP 2
Close IPC membership stage
IPC Strategy and business plan
WP 3
WP 4
•Collate outputs from WP 2 and 3•Bring together existing tools/models/experience etc
•Develop a common toolkit and methodology for SME change
Apply PDCAWP 1 and 7
2010 2011
J F M A M J J A S O N D J F M A M J
WP 5
Closure event
WP 6Trial and modify
Evaluation and final format ofthe methodology and materials
Total project review
•Conference
•Speech
•Commission feedback
Suggested next stage
WP 7HEI to continue
post closure
Communication
• Between partners
• The rest of the EU• EU policy
• EU Outcomes
• With WP 1WP 1
Management (governance)
Copyright (c) Colin Herron One Northeast 2007
Thank you for your attention
Special thank you to translators
Also