Presentation Nashville

IIE Annual Conference, Nashville 2007

1

From Newcomer to Market Leader – Success Through IE Methods and Innovations

Ján Košturiak Zbyněk Frolík

IIE Annual Conference, Nashville 2007, USA

From Newcomer to Market Leader – Success Through

IE Methods and Innovations


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Program

1. Introduction2. Linet story3. Implementation of IE methods - examples4. Innovation management - example5. Linet production system6. Experience and summary


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Zbynek Frolík – Founder and Managing

Director of Linet (Czech republic)

Jan Kosturiak - Managing Director of Fraunhofer IPA Slovakia

(Slovakia)


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Frau

nhof

er

Leading Organisation for appliedResearch in Europe58 Institutes in Germany12000 EmployeesPresident: Prof. Dr.-Ing. J. Bullinger

Fraunhofer Germany

Fraunhofer USA

Fraunhofer Asia


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Fraunhofer IPA –Institute of Production

Technology and Automation, Stuttgart


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Fraunhofer IPA

Prof. Dr.-Ing. Rolf Dieter SchraftProf. Dr.-Ing. Engelbert Westkämper


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Layout Planning and

Logistics

Process Optimisation,

TOC

Time Measurement

and Workplace Optimisation

Corporate Organisation

and Innovations

Centralizované fraktály

Fi nancie, controlingTechnické centrumPredaj, Marketi ngRiadenie kvali ty

Informačné technológieLogi stika, Nákup

Správa majetku a údržbaRiadenie ľudských zdrojov

Výrobný frakt álVHP

Výrobný fraktálSHP

Údržba Prac.tímy

Prac.tímy

Údržba

Generálny ri aditeľ

Čl en predst avenstva Čl en predst avenstvaPredseda predstavenstva

Výrobný fraktálBanja Luka

Výrobný fraktálSlavošovce

Kval i t aPl ánovani e výroby

Tech. zabezpečeni eNákup j ed. mat er i ál u

M aj st r i

Kval i t aPl ánovani e výrobyTech. zabezpečeni e

Nákup j ed. m at er i ál uM aj st r i

Fraunhofer IPA Slovakia


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Network – Germany, Austria, Slovakia, Czech Republic


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1990 – after political changes in Czechoslovakia –15000 Tsd USD starting investment – old

agricultural farmNew idea – production of hospital beds


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+ Flexible, hard working employees from agriculture, strong motivation, basic entrepreneurial skills and knowledge from medical care (Z.Frolik worked as technical manager in a hospital and some years ago he started his own business – flower farming and selling)

- Missing market, products, customers, production equipment, production skills


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2000- 12.000 m2 Production area- 230 Employees / modern production technologyand organisation- Turnover 19 Mil. USD


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2002- 21.000 m2 Production area- 275 Employees / new assembly, dispatch,development centre- Turnover 32 Mil. USD


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2006-23.000 m2 Production area- 320 Employees/ Research, Development, Innovation and Training Centre - Turnover 70 Mil. USD


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2007 - 2012- Goal – Turnover 200 Mil. USD- New production facilities and development centre- New production plants in China, Mexico, UK

College of Industrial Engineering and Innovations


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Milestones and success factors

1. Starting with Common Sense and Simple Industrial Engineering Methods2. Flexible Team Based Organisation Structure3. Customer Orientation and Strong Focus on Product and Process Innovation4. Development of Human Skills and Knowledge5. Development of Linet Production System –Lean and Innovative Enterprise


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Qualitäts- prozesseQuality

Processes

TPMTPM

Rüstzeit- reduzierung

QuickChangeover

StandardisierteArbeit

Work Measurement

and Standards

WertstrommanagementValue Stream Management

Kanban, Pull,nivellierteProduktion

Kanban, Pull,Synchronised

Production

5S and Visual

Management

Lean Layout,Manufacturing

CellsKaizen

Teamwork

IE Methods in Linet


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Analyse the Video

1. Where are the added value and non added value activities?

2. How to reduce waste?

3. Lesson from this example?Material Preparation –

Sawing, Bending, Laser

Machining – Turning, Drilling, Milling, Grinding

Welding

Co-operation, Assembly


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Bending Drilling Welding Packaging

34 21 49 20

30 pcs 30 pcs 30 pcs 30 pcs 30 pcs 30 pcs

34x30 + 30 + 21x30

124 sec/pcs

21x30 + 30 + 49x30

+ 8 h.– waiting in thestorage

49x30 + 30 + 20x30

processtime

Numberof piecesin thepalette

Transport time

9,3 Hours/ Lot

Value added

Non value added

HandlingWorker

30 pcs

Operator

CooperationERPSuppliers

Before – Separated Processes


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Bending

DrillingWelding

30 pcsMin. 210 pcsWIP02Handling workers24Operators

20 sec9,3 hoursWaiting and transport times

79 sec124 secTotal process time / piece

AfterBefore

27 52

After – Manufacturing Cell


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Process 3 Process 4

FIFO

Process 1 Process 2

Process 3 Process 4

Value Stream Improvement Principles

1. Flow production – when possible

2. Otherwise FIFO Buffer

3. Or Supermarket


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Kde vznikajírozdíly ?

1.Value Stream 2. Time Measurement

3. Line Balancing

4. Simulation

5. WorkplaceOptimization

6. Visualisation

Standardised process planning


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Customer Value Definition

Product Portfolio Complexity

Low Value

High Value

Production andDelivery Flexibility

InnovationAbility

Focus on CustomerValueDefinition

Image,TechnicalLeadership

Competitor 1

Competitor 2

Outsourcing


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Marketing Technology

ProductionSales

ZISK

Service

Marketing Development,Design

ComponentProduction

Strategicpurchasing

Supply,Int.Logistics

ProductionAssembly

Dispatch,Transport

Sales

EconomicsHuman resources

Quality

Productsupport

ProductDevelopment

Productproduction

ProductSales

Customer Supplier

Productpreparation

ProductRealisation

Cost calculation

Actual costs

Organisational Structure


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Value Stream Management


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Lean Workplace

1. Work measurement and standardisation

2. 5S

3. Ergonomics

4. Visual Controls

5. Mistake proofing

6. Jidoka, stop line


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Flexible and Mobile Machines and Layout

Air bolster


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Flexible and Mobile Machines and Layout


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Flexible Workforce, Teams

1. Keeping and improving process standards

2. Work organisation

3. Autonomous maintenance

4. Cleanness and order

5. Quality and safety

Neschopen obsluhy

Schopen obsluhy,když někdojiný zajistí připravu stroje

Požaduje malé vedení při přípravě

Ovládá stroj s výjimkouneobvyklých okolností

Ovládá stroj plně

481

407 Rubešová Marie

Košťáková IvetaAndrš Petr431

45 Bártů Miloš489 Pýcha Zdeněk

Soudek OldřichLakatoš Julius

Čermák Pavel444351 Vejražka Václav96

91 Král František

Demeterová Dagmar

84 Košťáková Jana38

484 Križan Martin426

249 Kraus Miloslav

376 Drmotová Hana500 Mandalík Josef

os.č. Jméno40 Novotný Ladislav

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Výrobní systém

30 Melcr Josef2 Kalousová Alena

Hodnocení Multifunkčnost pracovníků - Linet IIPracovní místo

Děl

ení


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Flexible Manufacturing Cells Mfg. CellLIS LEN 100 CLIS LEN 63 CLIS LEN 25 C s dráhouLIS LEN 40 COMÍLACÍ BUBEN

OMÍLACÍ BUBENOMÍLACÍ BUBEN

VIZUALIZACE LINET II

LIS LEN25 C

LISLEN 40 C

LIS LEN 63 C

LIS LEN100 C

STŘEDISKO 1410

OMÍLACÍBUBEN

OMÍLACÍBUBEN

OMÍLACÍBUBEN

Mfg. Cell

1. U Shape line

2. Low cost automation –chaku chaku

3. Modular machines

4. Quick setup

5. Flexible line occupation


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Production organisation

Press Dept. Welding Plastic Assembly

Processteams

Processteams

Processteams

Processteams

SMED

5S

TPM

Quality

Foreman, process planner, production planner, logistics

Projects

Processgoals

Logistics

Technology

Processgoals

Processgoals

Processgoals

Horizontal strategicco-ordination

Process realisationand operation control

Project teams– support of the

realisationof the strategic

goals

Goal: SBU


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Product Innovations


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TRIZTOC

Systematic Innovation

WOIS

Lean Management

TOC

FMEA TQM

Kaizen

Six Sigma

=

Customer Benefits (Useful Functions)

Costs + Harmful Functions

Customer Value

Customer Value Increase


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Project: Innovation of hospital bedProject duration: 6 monthsProject team: designer, production engineer,

external consultant, logistic expert, process engineer, service, marketing, customer

Project inputs: Target price, target markets, product life cycle, production volume

Project goals: New product with higher customer value (new functions, better parameters, lower costs)

Innovation project


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Project steps1. Market analysis- Customer requirements- Analysis of competitors- Development trends

2. Product analysis- Structure- Functions- Parameters- Costs

3. Innovation process- Add required functions- Eliminate not required

functions- Improve required

parameters- Solve contradictions

4. Implementation- Product design- Testing- Production- Marketing/ Sales- Evaluation


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Innovation by WOIS

Benchmarking, Competition, Follow up Others, „RedOcean“

...Breakthrough Innovations, Business Leadership, „Blue Ocean“

Contradiction

Source: H.Linde, WOIS


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Contradiction solution - BMWNew solutionBMW and Krebsöge

One piece – tear upNo machining required, better connection quality

System Parameter

No ofmachinngoperations

ñ ò

Goal I

ñ ConnectionQuality

Goal II

òMachining Costs

Connecting rod

Expensive surface machining

Old solution

Contradiction



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Contradiction –Development Barrier

New Solutions –Contradiction Solution Principles, Variation and Combination, Final Solution

Orientation - Strategy, Trend Analysis, Current State Analysis, Evolution Trends, Ideal Solution

Spiral of Evolution

Contradiction based innovation strategy



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Segment 1 Segment 2

Market

Customer processes

Needs, requirements

Mar

ket

S egm

ents

Cus

tom

ers

Nee

d s

Nurse PatientTechnican

Manager Doctor

Segment - EU Thomas Decket Sabine Ludger T.Hartman Belgium Belgium International Netherlands Kim Netherlands Priemer Poradie MOBILIZACE PACIENTA

5 5 5 4 5 5 5 5 5(5) 5 4,9 2

TRANSPORT PACIENTA

5 4 5 4 3 3 4 5 4(5) 4 4,1 9

REHABILITACE PACIENTA NA LŮŽKU

4 3 3 2 2outside of the bed

3 2 4 3(3) 3 2,9 15

HYGIENA PACIENTA

3 4 5 2 4 4 2 5 5(5) 3 3,7 12

KOMFORT PACIENTA

3 4 2 2 4 4 3 5 has control over

movements, sorrouding

3(3) 5 3,5 13

BEZPEČNOST PACIENTA

5 5 5 5 5 5 5 5 5(5) 5 5,0 1

PŘÍSLUŠENSTVÍ 4 5 4 4 5 4 5 5 5(5) 5 4,6 5 OSTATNÍ MANIPULACE S PACIENTEM

3 3 4 4 4 5 5 4 5(4) 5 3,2 14

MANIPULACE S LŮŽKEM

5 5 4 4 5 5 5 5 5(4) 5 4,8 3

POLOHOVÁNÍ PACIENTA

5 4 4 4 4 5 5 4 4(4) 5 4,4 6

VZHLED LŮŽKA 4 4 2 3 5 4 5 4 4(4) 4 3,9 10 OVLÁDÁNÍ, ERGONOMIE

4 4 4 5 4 5 4 5 3(3) 4 4,2 8

HYGIENA LŮŽKA 4 5 5 4 5 5 5 4 4(4) 4 4,5 4 BEZPEČNOST SESTRY

4 4 5 3 4 4 5 5 4(4) 5 4,3 7

KOMPATIBILITA MATRACE, LŮŽKA A LŮŽKOVIN

4 3 4 3 3 4 5 4 4(4) 4 3,8 11

RYCHLÝ SERVIS, 5 5 4 4 5 4 5 4 4(4) 5 4,5 4

ProcessesO1= Handling with patientO2 = Handling with bedO3 = TransportO4 = Adjustment, setupO5= Connection with environmentO6= Work with accessoriesO7= Ensuring safetyO8= Mattress handlingO9= Design-interaction with product

O1= Handling with patientO11 = patient examination: CT, RTGO12 = moving patient onto other bedO13 = patient positioningO14 = turning patientO15 = patient mobilisationO16 = handling during urinateO17 = changing clothesO18 = patient hygieneO19 = eatingO20 = re-dressingO21 = changing mattressO22 = changing bed clothesO23 = adjusting patient positions

Orientation


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Analysis of competitors


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Interview with the customers – not right definition of the real requirements for the innovation process


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When the customer can not exactly define what he wants, we had to understand his processes better – video analysis


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Contradictionmatrix

Y ↑ = Mobilisation=f(...)

Y ↑ = Safety=f(...)

Y ↑ = Handling with bed=f(...)

Y ↑ = Hygiene =f(...)

Y ↑ = Stiffness

Y ↑ =Handling comfort

Y ↑ = Costs

Contradictions P1 P2 P3 P4 P5

x1=

Num

bero

fcom

pone

nts

x3=

Num

bero

fwhe

els

↑

↑

x2=

Num

bero

fdriv

es

↑

↑

Y ↑ = Accessoriesx4

= N

umbe

rofm

obili

satio

nel

emen

ts

↑

↑

x5=

Wei

ght

↑

↑

x6=

Num

bero

fvar

iabl

epa

rts

Y ↑ =Variability ↑

↑


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Ideas Product Evolution Trends

Kinematic analysis Solution map


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815Time Standard

6501350Production Costs - €

20052001Eleganza De Luxe

6,511Time Standard

4501000Production Costs - €20052001Eleganza Standard

0,33Time Standard

2360Production Costs - €20052001Handling mechanism

Number of Parts – 15 %

Number of Parts – 30 %

Results of the integration ofproduct and processinnovations


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1998 production costs USD 150

Telescopic elevation unit evolution

2006production costs USD 202003 production

costs USD 50


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Lean Logistics– SCM, Partnership

with Suppliers, VSM, TPM, Standardisation,

Kaizen, Quality in Process,Logistical Network

Optimisation

Lean Production– Lean Workplace,

visualisation, VSM, Pull, Kaizen, TPM, SMED, Manufacturing Cells,

Team Work, Quality in Process, LCA

Lean ProductDevelopment

– Set Based Thinking, VSM, DFMA, VA, Project

Management, Team Workand Simultaneous

Engineering, Quality and Visualisation,

Kaizen

Lean Office – 5S, Time and Meeting

Management, VSM, Quality in Process,Kaizen, Standardisation

and Visualisation, Team Work

Knowledge Managementand Development

of Corporate Culture- Continuous Development

and Visualisation of Knowledge- Non Blaming Culture- People Involvement

- Continuous Improvement


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Measurement and Development of Human Potential

MoralPotential

Mental Potential

PhysicalPotential

EmotionalPotential

Individual performance, goal orientation, team performance, corporate performance, leadership

Discipline, keeping standards, win – win conflict solutions, fairness, ethical mind

Information, experience, skills, knowledge, wisdom

Selfawareness, selfcontrol, selfmotivation, empathy


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Summary – IE Implementation in Linet

1. 1990 – 1993 – Building production program and production system

2. 1993 – 1995 – Basic IE methods, stabilisation and standardisation

3. 1995 – 2000 – New manufacturing system - lean4. 2000 – 2005 – Innovations, integrated

product/process development, logistics5. 2005 - 2007 – Knowledge management6. Future – international growth, modular

manufacturing system


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Our most difficult dilemmas

1. Management of company growth versus IE and lean implementation

2. Productivity versus innovation ability3. Productivity versus flexibility 4. Flexibility versus stability5. Discipline versus entrepreneurship and

creativity of employees


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Company

Creating Knowledge,Development People

Products, Services

Innovation Business College- Product Innovations

- Industrial Engineering

- Process Innovations

- Business System Innovation

Lean and Innovative Enterprise


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Current problems

1. How to reach and keep the best talents and individuals?

2. How to share, communicate and develop the best corporate practices in the organisation?

3. How to transfer knowledge between employees on the projects and actions in the company?

4. How to increase and measure knowledge?

5. How to change knowledge into innovation as fast as possible?


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Export in 73 countries

Summary

• Starting capital: 15 Tsd. USD• Turnover: 70 mil. Euro• Average annual return of capital 63%• EBIT 25%• Capital growth 800 x• 320 employees• Added value per employee: above 60 Tsd. USD• Export: 73 countries


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Coware

CooperationCommunicationCoalitionCommon...

... SuccessHardware

Software

Brainware

Individual Thinking Performance

Management, Control

Equipment,Assets

OR world of tradeoffs

AND world of innovations

Development of competitive factors



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Paradigm changes

Management by opportunities, company as a living organism

Management by objectives, process and project management

Management principles

Innovation and Knowledge ManagementQuality, Productivity, FlexibilityManagement focus

Business and Thinking InnovationProduct and Process innovationInnovation focus

Systematic Innovation, Lean Product Development

Lean Manufacturing, Six Sigma, TOC

Improvement concepts

Co-operation, partnershipCompetition, fightIntercorporate relationships

Culture of trials and experimentsNo mistake and error cultureCorporate culture

Brainware, co-wareHardware, softwareCompetitive factors

Focus on the employee´s heart (self motivation, emotional intelligence) and

soul (moral and ethics – soul intelligence)

Focus on the “empolyee´s muscles” (peformance – physical intelligence) and brains (kaizen –

mental intelligence)

Employees

New Practices – Blue Ocean, create new customer value

Best practices, benchmarking, increase customer value

Change management focus

ImprovementStandardisationCorporate processes

InnovationProductivityCorporate strategy

TomorrowYesterday


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One reason more for rapid innovation and high productivityThe copying factories in China



Start of the company 1991

European leader in design and production of small motorbikes



• More than 50 copying factories for Blata products in China.

• Time to copy – 1 – 4 months, production quantities in the Chinese companies – 10 Tsd. – 100 Tsd. / month

• Very low quality, price 10 times lower – the products are imported to USA and European Union – only imports to EU -100 Tsd/month). The similar situation is with the LINET hospitalbeds (these products are sold only in China)


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BLATA Quadard

Czech republic Maltese republic

UK

Copies of Blata products imported to Europe


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Thank you for your attention

We are looking for international co-operation

Development the College of Industrial Engineering and Innovations

[email protected]

[email protected]

mailto:[email protected]

mailto:[email protected]

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