System Approach for CIP supporting Your plant vision

Well organized in every aspect Purchasing Supplier Development Well organized in every aspect WHO WE ARE Connected Industry Solutions Value Stream Manage-ment PULL Corporate Culture Develop-ment System Approach for CIP Lean Training Shop-floor Management 5S Quick Change Over … A group of highly motivated and well-experienced people at 10 locations worldwide. Contact Christian M. Abrahams christian.abrahams@de.bosch.com +49 1520 864 28 48 Bosch PSD. Lead the change. WHAT WE DO Support actively our suppliers on various business processes and work out serious benefits by profound value stream driven improvements. For suppliers and Bosch. WHOM WE SERVE Mobility Solutions suppliers worldwide at first glance. And ourselves if we do a good job.

System Approach for CIP Market Challenge Sourcing decisions are mainly driven by cost leadership, staying ahead of competitors is hard to reach. Markets are becoming more VUCA over time, customers are demanding flexibility and ability to adapt faster. Improving faster and better than others is the vital criteria to survive the race of competition.

“A surplus of similar companies, employing similar people, with similar educational backgrounds, coming up with similar ideas, producing similar things, with similar prices and similar quality.” Dr. Kjell A. Nordström Swedish economist, writer & public speaker © Wikipedia

System Approach for CIP Cost Profit Relation Traditional approach Price = Cost + Profit No cost improvement activity Profits diminish over time No new projects Automotive necessity Profit = Price - Cost Effective cost reduction activities, e.g. lean Profits will be preserved Competitiveness is maintained

Where do you start to improve? System Approach for CIP Where do you start to improve? You have calculated your offers with 80% OEE and your internal target for your production with two machines is 85%. You only have staff available to start CIP at one out of two machines. Machine A OEE 60% deviation to target 25% Machine is in 10 shifts / week No direct workers Equipment fully depreciated No delivery problems OEE oscillates from 30% to 90% making output prognosis difficult. Machine B OEE 70% deviation to target 15% Machine is in 18 shifts / week 3 direct workers Equipment is only 2 years old Tracking with customer ongoing OEE oscillates from 68% to 72% providing reliable output.

Bosch’s System Approach for CIP A workshop based tool to systematically select the CIP projects having the biggest lever on the business and assuring the sustainability of improvements.

System Approach for CIP What happened at Bosch? After applying lean tools for improvement work at Bosch for some 10 years, we found that the activities were not yielding the desired results. We developed the System Approach for CIP which allows the improvement teams to select the projects that will have the biggest effect on your business, show a clear correlation between efforts and desired results and make these results sustainable. Before System Approach With System Approach Time Performance Lean Maturity Result KPR Performance Lean Maturity Result KPR Time

3- Levels / 4-Step Implementation System Approach for CIP 3- Levels / 4-Step Implementation 1 - Focus Topics Deriving focus topics for specific value streams based on an internal and external framework, the actual situation and a defined true north. 2 - System CIP Projects Defining projects to reach targets with stability criteria (e.g. OEE 75% ± 5%) and setting of new standards to finally achieve a target situation. 3 - Point CIP Securing newly set standards and avoiding decay of results over time. 4 – Daily Management Transferring target conditions into daily management as soon as stability and sustainability have been proven. Then using deviations of stability as trigger in daily decision making processes.

System Approach for CIP @ Supplier KPI Trees By using a system of indicators in a KPI tree, shop floor indicators are linked to economic results in a cause-and-effect relation. With each level CIP activities become more specific and have there own indicators. Monitoring KPI M-KPI are calculated, thus they cannot be improved directly, they just tell you where to act and are used in System CIP. Improvement KPI I-KPI tell you what to improve and show whether a problem is solved, i.e. if your new standard is stable.

System CIP, Point CIP, Daily Management System Approach for CIP @ Supplier System CIP, Point CIP, Daily Management 1 - System CIP Projects to reach targets with stability criteria are run and new standards to achieve a target situation are developed and implemented. 2 – Handshake I New standard is handed over to shop floor responsible to be trained and tested. 3 - Point CIP Stability of standards are now being tested and improved to avoid decay of results over time. 4 – Handshake II Validated standard is handed over to persons responsible to execute them, as soon as stability and sustainability have been proven 5 – Daily Management Standards are handed over to the team. Then deviations of stability are used as triggers in daily decision making processes.

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