nullnullGMS Executive Overview
(4-5 Hours)INTRODUCTION TOGMSGlobal Operating Systemnull Classroom Norms
Pagers, phones - Please turn off or put on vibrate
If urgent call, please talk outside
Relax, ask questions and have fun!!
Standardized Introductions
Name
Role
Main hobbyCustomer Satisfaction is not good enough!!!Customer Satisfaction is not good enough!!!What Do We Need To Do To Meet Our Vision? nullCustomer
EnthusiasmExternal Customer
(Buys Product)Internal Customer
(YOU!)Who is the Customer? nullCustomer
EnthusiasmGood Buying
ExperienceGood
Ownership
Experience+=What Makes Customer Enthusiasm? Sales
MarketingDesign Engineering Manufacturing After SalesnullSafe, Clean & Healthy Environment
People-Oriented Organisation
Attractive, High Quality Products
Good Customer Response
High Customer Value
GMVWToyotaFordWhat Does Everyone Need to Get Customer Enthusiasm? nullSAFETY
(Safe Work)QUALITY
(Attractive Product)COST
(Good Value)PEOPLE
(Organizational Development)RESPONSIVENESS
(Quantity/
Volume/Speed)Safe, Clean & Healthy Working Environment for all employees and visitors Focus on employee Development, Involvement and EnthusiasmEach customer in each process expects a high quality product or serviceCustomers want a quality product or service but they also want it FAST!Eliminate waste and control costs to deliver our customers the right product at the right price!!Needs Translate to Goals…THE 5 MAIN GOALSProvide every product or service (exactly what the customer wants) defect free, on demand, with no waste and in a work environment where everyone is happy and safe.$nullS P Q R CThe Goal Sequence Has A Meaning!Modern philosophy is that Safety is always First with a priority on People and Quality. If we focus on these things, Cost - through waste reduction - will eventually decreaseTRADITIONALMODERNC R Q P STraditionally, the organisation was focused around financial controls with Quantity as a priority – People development and Safety were not particularly importantAlways Remember The Priorities…$$J Hamaliannull“One System”One ‘Language’
One Umbrella
One Company Culture
One Mindset Global Operating SystemIt is a critical philosophy to achieve our VisionGMSHow Do We Reach Our Goals?…nullNUMMI (TOYOTA)CAMI (Suzuki)OPEL (Eisenach)GMNA (Green Book)QNSaturnCreation of GMSGMS not a only a “GM” system but is mostly modeled on Toyota & some Suzuki philosophyGMS (1996)GMS was born out of the strategic need to adopt modern, lean thinking for corporate survivalWhat is Lean Thinking?Mass vs. Lean ProcessesBuffered processes are protected against everything: unexpected quality problems, stoppages, high absenteeism, etc.
Lean processes assure continuous flow with minimal waste by empowered teams and the quality should be achieved within the process1800 (Craft)1900 (Mass)2000 (Lean)What is Lean Thinking?Toyota Philosophy Toyota Philosophy Strong Corporate Culture
Balance Between Process and Results
Commitment to Learning not Knowing
Entire Organisation Knows and Uses the System
Minimum barriers between functions and levels
Focus on Long Term ResultsRespect For Humanity and Continuous Improvement through the Elimination of Waste are Foundation of Toyota’s SystemnullShort Lead TimeContinuous Improvement CompanyPeople Involvement CompanyStandardizationBuilt-In-QualitySafety
People
Quality
Responsiveness
CostUse GMS Principles To Obtain Our GoalsGOOD PROCESSES GOOD RESULTSBusiness Goals (Scorecard)Methods to Meet the Goals
(GMS)Vision/
Mission Lean Principles
(Process) Goals & Metrics (Results)nullTHE 5 GMS PRINCIPLESPeople are the most valuable resource in the companyPeople InvolvementStandardizationBuilt-In-QualityShort Lead TimeContinuous ImprovementDo notAccept
Build
Shipa Defect!Set and follow standards to achieve a base from which to growCustomer’s Quality expectations are built in to each process to ensure defects are not passedReduce the time to deliver any product or serviceFoster a culture of change and constant improvement$nullLike An Atom We Need All The Pieces Working Together!!“One Company” – One SystemA Company-Wide Operating System based on Lean Business PrinciplesnullIn-Process Control &
Verification4Like A Jigsaw Puzzle You Need All The Pieces So It Can WorkThe 33 Elements Work Togethernull4GMS CASE STUDYGeneral Motors North America:
Before GMS:
1996
After GMS:
2003
SPQRCSPQRCBUT!!!…Toyota still enjoys 8% net profit while GM is at 1.5%GM needs to outperform Toyota by US$1,500 – $2,000 / unit… GMS as an Enterprise-Wide System GMS as an Enterprise-Wide SystemAvoid the ‘Silo Syndrome’
Take an Integrated Approach
Link the Functional Groups Together
Used in Manufacturing but Principles are GenericEngineeringManufacturingPurchasing &
SuppliersSPOPowertrainGMS is a common operating methodology that can be used anywhere in the organisationSILOSILOSILOSILOSILOJ HamaliannullDesigners &
Product EngineeringPurchasing &
SuppliersProductionAfter-Sales &
DealersBuyersSales & Marketing“One Company” with Customer FirstLean Business PrinciplesA Common ‘Language’ and Company Culture throughout the entire Customer ChainJ HamalianWhat is a ‘Factory’?What is a ‘Factory’?New Vehicle Factory5A place where a repeatable process is conducted in which there are inputs, internal activity and outputsNew Advertisement FactoryWho are ‘Operators’?Expense Report Processing FactoryPurchasing Order Process FactoryAnyone who works in a highly repeatable job and requires support to be effective Service Center FactoryParadigm Shift: We have to think of the work we all do in terms of a common process methodology - Everyone Can Use Lean Business PrinciplesJ HamaliannullPeople Involvement
People Involvement Elements
Vision
Values
Health & Safety
Qualified People
Teamwork
People Involvement
Open Communication
Leadership Behavior
(Shop Floor Management)Fish Philosophy VideoFish Philosophy VideoFish Philosophy Video
DiscussionFish Philosophy Video
DiscussionWhat GMS concepts did we see in the video?
Discuss as an open forumFish Philosophy Video
DiscussionFish Philosophy Video
DiscussionEnvironment At The Fish Company Enables:
People Involvement/Employee Enthusiasm
Teamwork
Low Absenteeism
Job Rotation/Flexibility….nullRoots = Culture, Values & Philosophy (GMS Principles)Trunk = People & MindsetPeople Involvement CompanyBranches = Processes & Tools (GMS Elements)Fruit = Quality ProductPEOPLE are our most important resource!!!Like a Tree, People Need Nurturing for GrowthSoil = EnvironmentChange In ThinkingChange In ThinkingTRADITIONALMODERNVIP #1TEAM MEMBER #1Leadership Mind ChangeLeadership Mind ChangeTOP-DOWN LEADERSHIP STYLEMODERN LEADERSHIPMINDSETDirectionSupport80%20%20%80%DirectionSupportTWO-WAY STREETGive OrdersTeach & Coach!!!J HamalianEmployee Mind ChangeEmployee Mind ChangeTRADITIONAL EXPECTATIONMODERN EXPECTATION Just Do What You Are Told To Do
Employee Enthusiasm Not Important Participate in Making Standardized Work
Continuously Improve Job
Involved in Problem Solving
Involvement Brings Enthusiasm!J Hamalian Effective Communication Effective CommunicationPeople Involvement CompanynullEarly Mfg. and Design Integration (DFM / DFA)People InvolvementHealth and SafetyHealth and Safety> Our goal is:ZERO Incidents!!
Group Discussion:
What is an ‘Incident’ vs. an ‘Accident’?“We are committed to protecting the health and safety of each employee as the overriding priority of the Corporation”.The Stages of Safety AwarenessThe Stages of Safety AwarenessStage 1:
Unawareness of HazardsStage 2: Awareness But No Action to Prevent InjuryStage 3:
Injury But Still No ConcernBuilding a “Safety Culture”No Problem – He Can Still Work!The Stages of Safety AwarenessThe Stages of Safety AwarenessBuilding a “Safety Culture”Stage 4:
Injury and Realisation of Impact to Person and CompanyStage 5:
Awareness of Hazards & Proactive Countermeasures to Prevent IncidentsSPQRCHeinrich Hazard PyramidHeinrich Hazard PyramidPotential Hazard / Unsafe SituationNear MissRecordable or First Aid InjuryLost Workday
InjuryFatality13003,00030,000Employee Spills Coffee on Floor and Walks AwayEmployee Slips on CoffeeWhile Falling, employee’s Body Grazes Edge of Metal Drawer and Lacerates Arm. Requires Four Stitches
Employee Fractures Arm While Hitting the Floor. Two Weeks Out of Work.Employee Hits Head on Edge of Desk While Falling. Breaks Neck. Dies.Herbert Heinrich Travelers Insurance Co.Most ProactiveProactiveMost ReactiveReactiveHealth and SafetyHealth and SafetyHow Can We Achieve Our Goal of zero First Aid Injuries, Recordables or Lost Work Days?- Incident Prevention (Building a Safety “Culture”)
Incident Reporting, Tracking and Resolution (encourage honest, open reporting to enable Problem Solving & avoid repeat incident)Health and SafetyHealth and SafetyIncidents can be Prevented through these five activities and more:
Behavior
Workplace Organization/5S
Personal Protective Equipment
Safe Use of Hazardous Materials
ErgonomicsnullEarly Mfg. and Design Integration (DFM / DFA)Total
Productive MaintenancePeople InvolvementTeamworkTeamworkHOW DO YOU ACHIEVE REAL TEAMWORK?What is
a Team?Group Discussion:Team Concept
Team Concept
Small groups of empowered
people who share common goals
and support each other
through common tasksTeam ConceptTeam ConceptDirection & SupportFeedbackThe Organization Structure Is Designed To Support Small, Empowered TeamsGroup Leader & Support AreasTeam LeaderTeam MemberLeadership
Team Concept
Team Concept
Common SPQRC goals and regular team meetings.
Empowerment to make decisions within spans of control
Responsibility for:
Making Standardized Work
Problem Solving
Continuous Improvement
Job Rotation is generally performed
nullA Single Team Can Only Be Successful If The Big Team Wins!!…DesignManufacturing
PC&LSales & MarketingFinanceHuman
Resources
QualityUnionsInformation
Systems
EngineeringSuppliersPurchasingIndividualFamilyCompanyNation & WorldJ HamaliannullPeople InvolvementOur People Will Be. . .Our People Will Be. . .Empowered/Engaged/Energetic
Knowledgeable
Flexible/Open-Minded
Customer Oriented
Skilled in the Continuous Improvement Process and Problem Solving
Able to Work in Teams
Qualified PeopleQualified PeoplePeople DevelopmentTimeQualified PeopleWE LEARNWE LEARN10% of what we read
20% of what we hear
30% of what we see
50% of what we see and hear
70% of what we discuss with others
80% of what we experience personally
95% of what we teach to someone else
William Glasser
The Four Steps of JITThe Four Steps of JITStep 1: PREPARE
TRAINEE
(Study Standardized Work)Step 4: FOLLOW UP (Trainee Confirm Skill)Step 3: TRY OUT
PERFORMANCE
(Trainee Do, Trainer Watch)Step 2: PRESENT
OPERATION
(Trainer Do, Trainee Watch)A P
C DJOB INSTRUCTION TRAINING (JIT)AwarenessKnowledgeSkillConfirmationWhy – What – How!!!Training MethodologyHEAR
SEE
DOnullEarly Mfg. and Design Integration (DFM / DFA)Total
Productive MaintenancePeople InvolvementPeople Involvement Element
(Involvement & Recognition)People Involvement Element
(Involvement & Recognition)Create and maintain an environment which fosters a “spirit of pride”Involvement & RecognitionInvolvement & Recognition There are three aspects of Involvement & Recognition:
1. Individual & Team Ideas
2. Small Group Programs
3. Rewards and Recognition
SuggestionsGo Fast!Problem Solving CirclesCIP ContestsIncentive SystemsRecognition ProgramsnullTotal
Productive MaintenanceEarly Mfg. and Design Integration (DFM / DFA)People InvolvementOpen Communication Process
Open Communication Process
Leaders must drive communications
Actively engage employees in the business openly & frequently
Open-Door Policy
Listen Often
Have a Physical Presence (MBWA – Management By Walking Around)Guiding Principles
Guiding Principles
Traditionally, communication only focuses on the “WHAT” and maybe the “HOW”, but people deserve to know the “WHY”!!!WHAT - HOW - WHY?EVEN IF THEY DON’T AGREE AT LEAST THEY WILL UNDERSTAND!!!J HamalianKey Enablers
Effective Use Of MediaKey Enablers
Effective Use Of MediaCommunication
BoardsState of the
Business Mtg. Team Mtg.Business
Update
Mtg. Job
PostingsTeam
Boards
Newsletters
Voice MailE-mailInternet /
IntranetTeaching
Coaching
Training
FeedbackSatellite
BroadcastsDiagonal
Slice Mtg.Dept. Head’s.
Mtg.Group
TrainingLevel Two
Informational
CommunicationCore Level
Face-to-face
CommunicationLevel One
Face-to-many faces
CommunicationGOODBETTERBEST!!Make a Communication Plan!nullEarly Mfg. and Design Integration (DFM / DFA)Total
Productive MaintenanceLevel Vehicle Order SchedulesSimple Process FlowOpen Communication ProcessPeople InvolvementLeadership Behavior
(Shop Floor Management) Go and See
Leadership StyleLead By ExampleSPQRC-based
Meeting StructureProactive
Communication
Process Regular Checks
of ProcessesLeadership Behavior
(Shop Floor Management)Go and See Leadership Style
Go and See Leadership Style
The focus of leadership is on the places where work is performed. This is accomplished through the “Go and See” philosophy:
Go and See the work areas where concerns exist and to check progress
“Don’t just sit at your desk, go and see what is happening!!!”Lead By ExampleLead By ExampleFor Example – If You Want People to Keep Their Area Clean, You Had Better Also Keep YOUR Area Clean!!!LeaderJ HamalianI Love Lucy Video Part I
(Stop video before Chocolate Assembly Line)I Love Lucy Video Part I
(Stop video before Chocolate Assembly Line)I Love Lucy Video
DiscussionI Love Lucy Video
DiscussionWhat GMS concepts did we (not) see in the video?
(at home and at the job!)
Discuss as an open forum – not by teamsI Love Lucy Video DiscussionI Love Lucy Video DiscussionWhat did we see in the video:
Lack of Teamwork:
At home, spouses did not understand each other’s jobs
No teamwork at factory
Boss was traditional top-down style, not a leader
Lack Of Qualified People:
Job qualifications not clear, poor screening process
Lucy & Ethel not qualified for job
Lucy & Ethel received poor training by boss
Lack of Open Communication:
Spouses did not communicate enough (example – at breakfast)
No talking at factory results in no support & no teamworkJ HamaliannullHow Often Do We See These Scenarios in Our Work Area?How Often Do We See These Scenarios in Our Work Area?Stocking Up InventoryExcessive Transporting, Storage & HandlingExcess WalkingDecision - Communication and Reporting MazeEquipment BreakdownMeetings, Meetings, Meetings!nullThree Enemies: 7 Wastes (Muda), Unevenness (Mura), and Overburden (Muri)Enemies of Any Process7 TYPES OF WASTE7 TYPES OF WASTEShift MindsetTYPES OF WASTEICOMWPMCURRENT
THINKINGWASTE NOT DEFINED
REACT TO LARGE EXAMPLES
REACTIVE IMPROVEMENTREQUIRED
THINKING
CorrectionOver
ProductionMotionMaterial
MovementWaitingInventoryProcessingWASTE IS "TANGIBLE"
IDENTIFY MANY SMALL OPPORTUNITIES
LEADS TO LARGE OVERALL CHANGEWASTESending back forms for incomplete or inaccurate data
Producing reports that are not used, performing more analysis than required, producing reports before they are needed
Searching for misplaced items
Filing documents that will never be used againDelays in getting needed information, approvals, or decisions
Keeping multiple copies of reports
Processing excessive written communication to determine issues requiring attention (mental processing)
CONTINUOUS IMPROVEMENTWaste is EVERYWHERE!!!Waste is EVERYWHERE!!!J HamalianWaste Elimination through People Involvement is the Foundation of the entire Operating SystemMake Waste Visible & Conquer It!Make Waste Visible & Conquer It!Waste is easy to identify in a well organised organisationMost Waste is Hidden There are two major categories of waste:
Obvious waste
Hidden waste. J HamalianWhy Eliminate Waste?Why Eliminate Waste?Poor companies let waste slowly build up then
realize they are in trouble and make huge cuts that
affect value-added activities and people’s livelihood.
Successful companies continuously eliminate waste
From all processes and actually GROW the company!!Example: ToyotaJ HamalianEliminating Waste Is Job SecurityEliminating Waste Is Job SecurityWASTE$MORE MONEY FOR VALUE-ADDED THINGSBETTER PRODUCTS, BETTER FEATURES, MORE ADVERTISING INCREASED SALES, INCREASED DEMAND, MORE PRODUCTION, MORE JOBSJ HamaliannullStandardization Standardization Elements
Standardized Work
Workplace Organization
Management By Takt Time
Visual ManagementnullWorld
ClassContinuous
ImprovementChangeStandardizationThe purpose of standardization is to reduce variation and stabilize, so as to achieve a base from which to grow and improve.“THE WEDGE” TO STABILIZE BEST PRACTICEStandardizationStandardizationA Standard Is The Best Current Practice Based On Many People’s Experience & Lessons Learned, so…DON’T SHORTCUT THE STANDARD!!!BAD THINGS COULD HAPPEN, ESPECIALLY SAFETY & QUALITY PROBLEMSIF YOU DON’T LIKE THE STANDARD, TRY TO CHANGE IT, BUT NEVER SHORTCUT IT….StandardShortcutJ HamaliannullWhat Happens When We Do Not Follow Standards???EVERY YEAR PEOPLE DIE FROM NOT FOLLOWING LOCK-OUT PROCEDUREU.S SUBMARINE HITS JAPANESE FISHING BOAT - SURFACING PROCEDURE NOT FOLLOWEDEXXON VALDEZ OIL SPILL – CAPTAIN DID NOT FOLLOW STANDARDSGERMAN PLANE CRASHES IN SWITZERLAND – AIR TRAFFIC CONTROL PROCEDURES IGNOREDJ HamaliannullMAKE RULE
TEACH RULE
KEEP RULELEAD BY EXAMPLE!!!It is easy to make standards, but we do not always do a good job communicating them and are even worse at sustaining them (including ourselves)If you do not have a process to sustain a standard – why even introduce it in the first place?BE A ROLE MODEL!!!J Hamaliannull■ Results achieved only when people all do the right thingPeople Involvement Link to StandardizationDiscipline and Orderly EnvironmentLack of Discipline results in ChaosI.S. Han - RBPSnullManufacturing Process ValidationIn-Process Control &
VerificationVisual ManagementManagement by TAKT
TimeProblem SolvingContinuous Improvement ProcessTotal
Productive MaintenanceLevel Vehicle Order SchedulesSupply Chain
ManagementTemporary Material StorageHealth and Safety PriorityPeople InvolvementValuesVision/
MissionShop Floor ManagementStandardizationEarly Mfg. and Design Integration (DFM / DFA)Lean Design of Facilities,
Equipment, Tooling and LayoutScheduled Shipping /
ReceivingnullnullWorkplace OrganizationPut order to the workplace
by making Standards that allow
“out-of-standard” conditions
to be visible!!How is workplace organization done?How is workplace organization done?Workplace Organization5S5 Self Discipline/
Cont. Improvement4 Sustain/Maintain2 Sort/Standardize1 Sift/Clear3 Sweep/CleannullAnything outside the standard is WASTE!!!
WPO is a key means of visualizing and eliminating wasteWhy workplace organization?Make Waste Visible!!!J HamaliannullWhy workplace organization?J HamaliannullExample of 5SWhich Cabinet Do You Want?
(Which one is Safer, makes Waste visible, leads to less Mistakes and lets you get parts Quicker?)nullQuality System ManagementIn-Process Control &
VerificationQuality Feedback/ Feed-
forwardStandardized WorkVisual ManagementWork-
place OrganizationAndon ConceptProblem SolvingBusiness Plan
DeploymentTotal
Productive MaintenanceScheduled Shipping /
ReceivingLevel Vehicle Order SchedulesSupply Chain
ManagementInternal
Pull /
DeliverySimple Process FlowTemporary Material Storage Fixed Period Ordering System/
Order PartsHealth and Safety PriorityTeam ConceptValuesVision/
MissionShop Floor ManagementStandardizationEarly Mfg. and Design Integration (DFM / DFA)Lean Design of Facilities,
Equipment, Tooling and LayoutControlled External
TransportationContinuous Improvement ProcessnullTime Management PhilosophyInstilling A Sense Of Time & Discipline to Keep ItMeeting Time
Meeting Place
Participants
(L
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