1. System Approach for CIP supporting Your plant vision

2. 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
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.

3. 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.

4. “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

5. 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

6. 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.

7. 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.

8. 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

9. 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.

10. 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.

11. System CIP, Point CIP, Daily Management
System Approach for 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.

12. Thank you! Questions? Take a flyer!