Andrew JonesMay 2011
Trade showsWe’ve manufactured for many of the world’s most prestigious car brands but remain dedicated to the aftermarket. That’s a big difference.
100,000+ parts for 99% of Europe’s most popular cars. 5,600 delivery points in 136 countries. Europe’s largest OE Quality aftermarket manufacturer.
Our complete aftermarket range of OE quality products covers 99% of Europe’s most popular cars. That’s another big difference.
The Klarius Group employs 1,200 personnel across Europe, and has an annual turnover of 350 million Euros
Klarius Group - Key Customers
OE/OES
Fast Fit
Independent Distributors
Klarius Racing
National Distribution
Buying Groups
Klarius Group - OE Quality
OE quality standard of Klarius and QH
products
All our products are produced to reach or to exceed the OE quality. The OE quality is Klarius-QH standard of manufacturing. The continued success in the supply of original equipment (QH products) reflects the Group’s consistently high quality standards across the whole product range.
Klarius Group - In detail
• Headquarters in Manchester (UK)
• 1200+ Employees
• 5 Manufacturing Plants– 3 in UK– 1 in Spain,– 1 in Germany
• 5 Research & Development & Technical Centres
– 3 in UK– 1 in Spain– 1 in Germany
Klarius Group is the largest European manufacturer of aftermarket car parts today. The Klarius Group operates five high-volume Manufacturing Plants, a Research & Development Centre, four European Technical Centres, eight International Logistics & Distribution Hubs, and eighteen national and regional Stock Warehouses based across Europe. Klarius Group Headquarters are located in Manchester (UK).
Klarius Group• Klarius Group supplies: Aston Martin,
GM, Jaguar, Land Rover, Nissan, Renault, Peugeot, VW and many others...
• Major European shock absorbers manufacturer (Bilbao, Spain)
• Largest European type approved exhausts manufacturer (Cheadle & Lancaster, UK)
• Key European manufacturer of OE water pumps (Colwyn Bay, UK)
• Major European rotation electrics manufacturer (Oranienburg, Germany)
Klarius Group Europe’s largest manufacturer of aftermarket car parts
Technical Centre Missions
Klarius Group –Technical Centres
• Klarius Group designed, tested, manufactured and introduced over 5100 new parts so far this year
• Technical centres for Emission Control, Suspension, Braking, Water pumps, Rotating Electrics, Transmission
• Responding to the new market applications
• Conforming to specific legislation• Certified by customers• Lean responsive manufacturing
Klarius Group - World class logistics
We’ve manufactured for many of the world’s most prestigious car brands but remain dedicated to the aftermarket.
It’s one thing to manufacture the parts and another to have them available, but to deliver them on time is a big promise to make.
We don’t just make car parts!
Klarius Group – Logistic organisation
European Distribution OrganisationEuropean Distribution Organisation
§ 8 International Logistics & Distribution Hubs:- France (Lille)- Germany (Unna)- Ireland- Spain (Bilbao)- The Netherlands- UK (Hinkley & Cheadle)
§ 18 National/Regional Warehouses:- France - Germany - Spain (Madrid)- Ireland- Netherlands- UK
Klarius Group now offer over 100,000 parts, covering the majority of the European Car Parc, supplying over 80,000 parts every day, to over 5,600 delivery points in more than 136 countries.
Klarius Group – Broadest Aftermarket product offering
• OE Quality manufacturer
• 97% of the European car parc available
• 5 600 delivery points in more than 136 countries
• 80 000 parts delivered every day
• 1 Klarius QH part fitted every second
ProduitsKlarius Group 7 family product ranges
BrakesBrake DrumsBrake ShoesBrake DiscsBrake PadsBrake CalipersBrake CablesBrake HosesBrake Cylinders
Auto ElectricsAlternatorsDynamosStartersCommercial Ignition
TransmissionClutch Kits & ComponentsDual Mass FlywheelClutch CableClutch Master CylinderClutch Slave CylinderConcentric Slave CylinderCV BootDriveshaftCV JointsWheel Bearing KitsEngine mountingsCablesSpigot bearingsUniversal joints
Emission controlExhaust Tubes & SilencersAccessories / MountingsCatalytic ConvertersDiesel Particulate Filters
Steering & SuspensionSuspension Arm / Ball JointsSuspension BushesStabilizer LinksTie Rod EndDrag LinksTop Strut Mounting Kits & ComponentsSuspension SpheresSteering RacksShock AbsorbersCoil SpringsGas Springs
EngineDrive BeltsDrive Belt KitsTiming BeltsTiming Belt KitsTensionersCrankshaft PulleysEngine Mountings
CoolingWater PumpsThermostatsRadiator CapsRadiatorsIntercoolerExpansion TankAir Conditioning Components
14
Principles of the Klarius Business System
The Customer defines value
Deliver Value to Customers on Demand
Standardize and Solve to improve
Transformational Learning requires deep personal experience
Mutual Respect and Shared Responsibility enable higher performance
Basic ideals derived from decades of experience
15
Deliver Value to Customers on Demand without waste
• Flowing 1-by-1 at “Takt Time”• Zero Defects is achievable• Customer Pull triggers action• Increasing Velocity motivates improvement
16
Standardize and Solve to Improve
• Standard Work, the current best known way• Root cause problem solving vs. firefighting• Deming Cycle of Plan, Do, Check, Act• Constant improvement is sustainment
POLICYUNTRAINED
LACK OF MOTIVATION
LOW STAFFING
APPROVALS
WORK FLOW
INSTRUCTIONS
NO DUE DATES
NO FOLLOWUP
SCHEDULE
COMMUNICATIO
NSUPPLIER
LATE POOR COORDINATION
POLICYUNTRAINED
LACK OF MOTIVATION
LOW STAFFING
APPROVALS
WORK FLOW
INSTRUCTIONS
NO DUE DATES
NO FOLLOWUP
SCHEDULE
COMMUNICATIO
NSUPPLIER
LATE POOR COORDINATION
WRONG FUEL IN CAR
UNTRAINED
LACK OF MOTIVATION
LOW STAFFING
APPROVALS
WORK FLOW
INSTRUCTIONS
NO DUE DATES
NO FOLLOWUP
SCHEDULE
COMMUNICATIO
NSUPPLIER
LATE POOR COORDINATION
17
Learning by Doing
•Rapid Improvement Events
–A highly effective way to practice change.
–How many will we have to do to be
expert at change?
Postponed perfection is the enemy of improvement
Required deep personal experience.
Learn by doing.
How many golf books did Tiger Woods read to get that good?
18
Deliverables
Agree on the Key Performance Measures
Value Stream Mapping (Current, Ideal, Future)
Baseline current performance against Key Performance Measures
Rapid Improvement Plan (DO IT!!!!!)
conducted with leadership team
Value Stream AnalysisA
pp
roach
for
Su
ccess
19
A3 THINKING TITLE:_______________________________________________
Date Started:_______________ Current
Date:______________
Team:__________________________________________
Review Team:___________________________________
1. Reasons for Action 4. Gap Analysis 7. Completion Plans
2. Initial State 5. Solution Approach 8. Confirmed State
3. Target State 6. Rapid Experiments 9. Insight
20
Lean Implementation In Klarius
• I am the Leader in the organisation creating the culture ;
• LEAN is our way of life• Some Examples
• Internal manufacturing projects,
• New Product Development Project
Manufacturing Project• Problem; • Declining sales per part number• More and more part numbers are required to sustain the volume• Large batch sizes were unrealistic• Too much working capital • Poor customer service• Solution• Use Lean tools,• Kanban system for material flow• Setup reduction on each and every process (bottleneck first)• Drive quality improvements• Employee buy-in focus and leadership
Average Batch Size
70
75
80
85
90
95
100
105
110
115
Jun '08 Jul '08 Aug '08 Sep '08 Oct '08 Nov '08 Dec '08 Jan '09 Feb '09 Mar '09 Apr '09
Average Batch Size Exhaust
30
35
40
45
50
55
60
65
70
May
-09
Jun-
09
Jul-0
9
Aug
-09
Sep
-09
Oct
-09
Nov
-09
Dec
-09
Jan-
10
Feb-
10
Mar
-10
Apr
-10
May
-10
Jun-
10
Jul-1
0
Aug
-10
Sep
-10
Oct
-10
Nov
-10
Dec
-10
Jan-
11
Feb-
11
Mar
-11
Apr
-11
May
-11
Series1Average Batch Size - Exhaust
Availability
90
91
92
93
94
95
96
97
98
99
100
Qtr 4 '08 Qtr 1. 09 Qtr 2, 09 Qtr 3, 09 Qtr 4, 09 Qtr 1, 10 Qtr 2, 10 Qtr 3, 10 Qtr 4, 10 Qtr 1, 11 Qtr 2, 11
PercentTarget
Working Capital
1300
1500
1700
1900
2100
2300
2500
Qtr 4 '08 Qtr 1. 09 Qtr 2, 09 Qtr 3, 09 Qtr 4, 09 Qtr 1, 10 Qtr 2, 10 Qtr 3, 10 Qtr 4, 10 Qtr 1, 11 Qtr 2, 11
44% Reduction
The Design Process
Exhaust System Design
Components Preparation
J IG Building
Car Tests
J IG Completion
Tube Bending
Production
The Equipment The Technical Centre has to keep at the forefront of technology. That’s why, the technical centre
department is equipped with every necessary technology. The Office Team designs with the best design softwares on
the market (Catia, SolidWorks & AutoCAD); The J IG Fabrication Team builds with high technologies to
certify quality and precision. The Testing Team has the materials to control every
characteristic of an exhaust system in view of homologation in line with European legislation.
3D CAD
Approved Test Track ISO 10844
Acoustic Holography
Thermo Structural Analysis
Plasma Cutter
Technical Centre – Our Centre of Innovation
• The problem:• Only developing 15 parts per month• 16 weeks leadtime• No customer focus• 15 weeks of work in progress• No competitive edge!!!• Low levels of innovation, low productivity, not
LEAN!!!!!
Tech Centre Improvements - Klarius Year 1
•Productivity increased dramatically•Team size remains unchanged (25 heads)•Work schedule is Customer Focused / Driven•Jobs completed per month from 25 > 100 in 12months period•Rapid Development is possible & improved MFR links•New types of work undertaken by department
Catalyst DevelopmentQuality improvements
Tech Centre – Year 2/3 in Lean - Sustain
• Maintaining 100 per month development run rate (even through Christmas period – team flexed working hours to maintain output)
• Team members cross trained for improved cover and flexibility
• Implementation of visual T Card system to manage work
• Improved customer focus as more customers use our service
• Automated work prioritisation in line with customer demand
• Team continues to improve independently
• Improvement in work area 5S and upkeep
• Creation of office & canteen environments with layout change
Tech Centre – 3 Years in Lean• Productivity increased dramatically
• Team size reduced by 2
• Work schedule is Customer Focused / Driven
• Jobs completed per month from 15 > 100 in 12months period
• Rapid Development is possible
(less than one week is regularly achieved)
• The team has developed confidence to improve for themselves
without needing permission.
Output improvements- Klarius Year 1UK - Total Devlopment Jobs Completed
0
10
20
30
40
50
60
70
80
90
100
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Month
No
of
job
s
Achieved Linear (Achieved)
CI Event
Fast Track Cats
CI Event
Cars Layout & Prep Area
CI Event
Jig Methods
CI Event
Jigs Layout
UK-Total Development Jobs Completed FY09
0102030405060708090
100110120130
Oct Nov Dec Jan Feb Mar APRIL May June Jul Aug
Month
No
of
Job
sOutput improvements- Klarius Year 2
Maintained during Christmas holiday
New office & canteen
Output improvements- Klarius Year 3
Klarius - Product Devlopment Output
0
20
40
60
80
100
120
140
160
Mar Apr May Jun Jul Aug Sep Oct Jan Feb Mar Apr
Month (2010-2011)
Nu
mb
er o
f jo
bs
dev
elo
ped
Technical Centre – Our Centre of Innovation
• The problem; the progress so far• Only developing 15 parts per month, currently 140 per month• 16 weeks leadtime, 3 weeks lead time (tests are carried out every Friday)• No customer focus, now customer focused• 15 weeks of work in progress, 2 weeks of WIP• No competitive edge!!!, Market place has recognised our progress, more
orders!!! • Low levels of innovation, low productivity, not LEAN!!!!! We are using
lean as the way of life!• One every 2.5 years, 2 catalogues issued in one year!
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