Implementing Lean on a Global Scale ---------------------------------------------------------------------------------------------------------------------------------------------------------- Succeeding through Diversity of Products, Processes and People Berlin, Germany - November 28, 2017
Luvata Special Products Five Business Units Superconductors Electrical Electrical Formed Pori Special Power Asia Products Power Products Americas High-quality Leader supplier of Global leader of World’s leading fully - Leading supplier in integrated welding electrodes high value-add integrated producer South East Asia of producer of to the automotive superconducting of copper alloy wire , busbars and products and industry with a wire to high-growth and supplier of choice anodes as well as solutions for the footprint on four MRI market for demanding photovoltaic metals and continents applications such as ribbons electrical industries alkaline batteries, ordnance and photovoltaic 2 | Luvata Special Products Confidential Information. Unauthorized Reproduction/Distribution is Prohibited
Our Global Footprint Americas Asia 28% 40% 1300 employees 12 locations 7 countries Europe 32% Pori, Finland St. Petersburg, Russia Appleton, USA Wolverhampton, UK Branford, USA Delaware, USA Welwyn Garden City, UK Waterbury, USA Suzhou, China Zhongshan, China Pasir Gudang, Malaysia Sao Paulo, Brazil Formed Products Electrical Power Americas Pori Special Products Electrical Power Asia Superconductors 3 | Luvata Special Products Confidential Information. Unauthorized Reproduction/Distribution is Prohibited
Luvata Special Products Strategic House Vision We will use our unique technology know-how to influence the development of a sustainable modern world KEY GROWTH STRATEGY ELEMENTS Build on distinct strengths Grow in adjacent markets Partnerships beyond metals Focus on technically demanding products Geographical, complementary products Joint development teams, and similar technologies extend non-production offering CORE COMPETENCIES Innovation Procurement Production Sales Customer driven, agile Lean methodology Structured sales process Structured road map sourcing to new product and Application engineer Luvata Production System process development mentality (LPS) Open mindset Passion for results Delivering on our promises People 4 | Luvata Special Products Confidential Information. Unauthorized Reproduction/Distribution is Prohibited
Global LPS Team Europe Alejandro Tassara 32% Richard Hainrihar Vincent Li Europe Americas Asia Tara Christina John Nelly Jari Markku Steve Nicola Ariff Bob Roberto 5 | Luvata Special Products Confidential Information. Unauthorized Reproduction/Distribution is Prohibited
Our LPS Journey 2016 Focus up and The journey of a thousand miles down the supply begins with a single step. chain, working Chinese Proverb with suppliers 2012 and customers LPS Audit Program developed and 2010 administered Companywide globally learning, communication, benchmarking, and shared 2008 experiences Conduct Lean Transformations at each location on selected value streams 2007 Developed a Lean Production System for our business 6 | Luvata Special Products Confidential Information. Unauthorized Reproduction/Distribution is Prohibited
2007: LPS Vision, Principles, and Objectives Empower capable people to Why hy we exist Our Vision operate high performing businesses by continually reducing waste. Our Principles Wha hat t guide des s us Our Objectives Wha hat t succe ccess ss looks ks like 7 | Luvata Special Products 7 | Confidential Information. Unauthorized Reproduction/Distribution is Prohibited
LPS applies 4 critical components People Flow Influence mindsets and behaviors Configure our assets so material and build skills to develop capable and information can flow through people who believe in the improved our operations way of working Align our organization to support the Manage our assets to new operating system so that systems improve overall equipment are in place to manage performance effectiveness and built-in quality and drive the improvements Performance Management Process Excellence 8 | Luvata Special Products Confidential Information. Unauthorized Reproduction/Distribution is Prohibited
Luvata Production System Plant Guide People Flow Plant Design Standard Operations Flow Philosophy 5 Workplace/5S Interval Planning 4 Continuous Improvement Sequence 3 Skill Building Inventory Mgmt 2 Culture Pull 1 Safety Customer Orientation 0 Review Practice Process Philosophy Solving Problems Built-in-quality Raising Problems TPM Target Setting OEE Visual Control Labour Productivity Responsibility and… Performance Management Process Excellence Process Excellence 9 | Luvata Special Products Confidential Information. Unauthorized Reproduction/Distribution is Prohibited
2008: LPS Transformation Approach 16 weeks Prepare LPS Prepare LPS LPS waves Diagnose Design Implement Refine Transformation Transformation (2 weeks) (2 weeks) (10 weeks) (2 weeks) (3-6 months) • Select focus Flow area Performance • Train management Management • Initiate data Process collection Excellence • Run People introductory Development workshops 10 | Luvata Special Products 10 | Confidential Information. Unauthorized Reproduction/Distribution is Prohibited
The plant prepares for its pilot transformation through five steps 1. Send 5. Measure 4. Train 2. Select 3. Select navigator performance personnel pilot area LPS team ahead data 6 months 2 months 3 months 2 months 1 month in advance Sufficient performance data must be captured before pilot starts Lean team should have initial training before facilitating data collection Lean team members must hand over previous responsibilities (and pilot’s chain of command should also free-up time where appropriate) Area must be selected before appropriate change team is recruited and local management informed Navigator must gain sufficient experience of critical success factors for a lean implementation in order to become plant’s leading lean representative and spokesperson 11
LPS and Local Management: LPS Team Local Mgmt LPS GM/Plant Manager Director Guest Local Operations HR Navigator Navigator Manager Manager Change Change Planner Engineers Supervisor Agent 1 Agent 2 Typical Profile for Navigator Typical Profile for Change Agent • Highly Respected • Highly respected • Highly capable (Rising star within plant mgmt) • Good knowledge of processes • Excellent analytical and problem-solving skills • Good interpersonal skills • Able to drive a team through uncharted territory • Self-starter with positive can-do attitude Important! The LPS Team has no decision-making authority; this stays with the local chain of command. It may therefore be necessary to free up some time for the chain of command (especially production and planning roles). 12
LPS Transformation Approach 16 weeks Prepare LPS Prepare LPS LPS waves Diagnose Design Implement Refine Transformation Transformation (2 weeks) (2 weeks) (10 weeks) (2 weeks) (16 weeks) • Rearrange • Map product • Develop flow • Dedicate • Select focus inventory path Flow flows update product flows area • Flush out excess procedures inventory • Understand • Establish KPI's • Introduce daily • Develop system Performance • Train current • Introduce meetings on the reviews measurements/ management performance Management shop floor performance boards processes • Calculate • Institute • Plan further roll- • Identify • Initiate data Process improvement focused out of OEE or 6- bottlenecks and collection potential with problem Excellence sigma events quality issues new product solving flows • Map skill levels • Evaluate skill levels • Tailor training • On-the-job • Run People and required and define future programs training introductory improvement development Development workshops areas programs 13 | Luvata Special Products 13 | Confidential Information. Unauthorized Reproduction/Distribution is Prohibited
2010: Share the knowledge and experiences • Leadership and coordination • SharePoint site President Director Americas Director Europe Director Asia • Annual conference • Benchmarking 14 | Luvata Special Products 14 | Confidential Information. Unauthorized Reproduction/Distribution is Prohibited
2012: LPS Audit Program • Encourage and invigorate LPS efforts across all Business Units Why? • Evaluate facilities against a common ‘lean’ standard • Outline steps in order to reach this standard When? • Every 12-24 months • On-site at each Luvata location Where? that has completed their LPS pilot transformation • Conducted by LPS Office • 1 to 3 days visit per plant How? • Interviews, observations and assessment based on LPS Plant Guide 15 | Luvata Special Products 15 | Confidential Information. Unauthorized Reproduction/Distribution is Prohibited
Key Contributor to Success A Robust Performance Management Program KPI's to Reviews Individuals Visual Target Management Setting Solving Raising Problems Problems 16 | Luvata Special Products 16 | Confidential Information. Unauthorized Reproduction/Distribution is Prohibited
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