SKF Manufacturing Excellence

Kent ViitanenDirector, Industrial Division Manufacturing & Supply

Capital Markets day 2010

What Manufacturing Excellence means for SKF?

Our continuous strive to be World Class in Manufacturing by involving all employees and working according to

defined principles

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SKF Manufacturing Excellence – in a nutshell

SKF - the preferred partner

Quality / Zero Defects

SpeedNo waste

Service

Consistently doing the right things right with speed

CMD 2010

SKF Manufacturing Excellence – in a nutshell

SKF - the preferred partner

Quality / Zero Defects

SpeedNo waste

Service

Consistently doing the right things right with speed

and continuously improving!

CMD 2010

SKF lean manufacturing evolution

Single Operation focus Flow and methods focus Improvement and people focus

Channel Concept &Temple of Excellence

Batch ProductionSpecialized workshops

SKF Quality Mgmt System Channel Concept

TQMTemple of Manufacturing

Zero DefectsSix sigma

The SKF Manufacturing

Excellence Bridge

1970 1980 1990 2000 2010

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•Strong leadership

•Live the values

•People involvement

Our journey and focus

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SKF Manufacturing Excellence Delivering world class results through…..

Improvements everyday, everyone and

everywhere

Find the problemFix the problem

Keep it from coming back

The SKF Bridge of Manufacturing Excellence

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The SKF Bridge of Manufacturing Excellence

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“Standardized work”means that we always need to have a normal situation. That is the

defined and agreed way we do things today.

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Standardised work

Suppliers Customers

Standardised activities, interfaces and processes

Visual and organisedworkplace

Find root causeSupport

Real time environment where deviations triggers action

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Support functions

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The SKF Bridge of Manufacturing Excellence

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that each of us have a personal responsibility to ensure that what we hand over to our customer is according to the defined and agreed standard.

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Right from me

CustomerSupplier

Chain of relationships

Our equipment can help us

Knowing the risks

Designed for quality

Supplier dependance

Support

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The SKF Bridge of Manufacturing Excellence

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“We care” means that we, all SKF employees, care about each other and care about both the internal and external environment. We are the actors of change.

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The SKF Bridge of Manufacturing Excellence

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means that we produce only what the customers

have requested, according to the standard, and on

time.

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The SKF Bridge of Manufacturing Excellence

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a new and better standard.

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Continuous improvements

Right from Me

We Care

Demand Driven Flow

Continuous Improvement

Reduce variation

Challenge and question our standardised work

KPI’s to identify improvement possibilities

Eliminate waste•Overproduction•Transportations• Inventory•Overprocessing

•Waiting•Rework•Motion•Under utilised creativity

Experimenting as a base for a learning organization

The ManufacturingExcellence Slope

Standardised Work

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The thinking model in Manufacturing Excellence

It starts with the thinking model - a model in 3 steps:

The PRINCIPLES learn all employees with a way to think. With known and agreed principles we know how to develop

The METHODS give us a way to do things.We chose the appropriate and deployed methods and tools

As always - the RESULTS and TARGETS are measured and tracked on a regular basis

But..if we don’t reach the result we try to question

the method instead of the people and work together to improve the method.

Copyright SAM Consulting AG

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Two ways of leadership style

“Old” leadership style “New” leadership style

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SKF Manufacturing Excellence – in a nutshell

Consistently doing the right things right with speed

and continuously improving!

Quality / Zero Defects Service No

wasteSpeed

SKF - the preferred partnerBEFORE NOW

Who contributes more?

Who learns more?

Today – tomorrow – in 5 years!

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Manufacturing Excellence status in Industrial Division factories

•44 Factories started their journey•More then 125 Practice Grounds•>4000 People Trained •142 trained facilitators

Some voices from the team• “Better sense of teamwork”• “Appreciation for team members

responsibility and contributions”• “Each day is better than the

day before”• “I think our channel is better now

than it was several months ago”• “You can’t support all the ideas”

•Deviation meetings in all Industrial Division factories•Big increase in number of improvements•Significantly higher involvement•Very positive improvement in leadership

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Manufacturing Excellence key messages

• The SKF Manufacturing Excellence rests on a long tradition of lean manufacturing

• Continuous improvement: KPI’s remain- but we strive for a higher level – a never ending journey

• Everyone involved and on board in the improvement work

• Long term continuous improvement requires long term people development –individual competence development based on the specific needs of each area

• Leadership is key

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During the factory visit you will be able to do a ‘reality check’ yourselves.

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