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INTRODUCTIONTO GMS GlobalOperatingSystem GMSExecutiveOverview 4 5Hours ClassroomNormsPagers phones PleaseturnofforputonvibrateIfurgentcall pleasetalkoutsideRelax askquestionsandhavefun StandardizedIntroductionsNameRoleMainhobby CustomerSatisfaction CustomerEnthusiasm WhatDoWeNeedToDoToMeetOurVision CustomerSatisfactionisnotgoodenough CustomerEnthusiasm ExternalCustomer BuysProduct InternalCustomer YOU WhoistheCustomer CustomerEnthusiasm GoodBuyingExperience GoodOwnershipExperience WhatMakesCustomerEnthusiasm SalesMarketing DesignEngineeringManufacturingAfterSales Safe Clean HealthyEnvironmentPeople OrientedOrganisationAttractive HighQualityProductsGoodCustomerResponseHighCustomerValue GM VW Toyota Ford WhatDoesEveryoneNeedtoGetCustomerEnthusiasm SAFETY SafeWork QUALITY AttractiveProduct COST GoodValue PEOPLE OrganizationalDevelopment RESPONSIVENESS Quantity Volume Speed Safe Clean HealthyWorkingEnvironmentforallemployeesandvisitors FocusonemployeeDevelopment InvolvementandEnthusiasm Eachcustomerineachprocessexpectsahighqualityproductorservice CustomerswantaqualityproductorservicebuttheyalsowantitFAST Eliminatewasteandcontrolcoststodeliverourcustomerstherightproductattherightprice NeedsTranslatetoGoals THE5MAINGOALS Provideeveryproductorservice exactlywhatthecustomerwants defectfree ondemand withnowasteandinaworkenvironmentwhereeveryoneishappyandsafe SPQRC TheGoalSequenceHasAMeaning ModernphilosophyisthatSafetyisalwaysFirstwithapriorityonPeopleandQuality Ifwefocusonthesethings Cost throughwastereduction willeventuallydecrease TRADITIONAL MODERN CRQPS Traditionally theorganisationwasfocusedaroundfinancialcontrolswithQuantityasapriority PeopledevelopmentandSafetywerenotparticularlyimportant AlwaysRememberThePriorities JHamalian OneSystem One Language OneUmbrellaOneCompanyCultureOneMindset GlobalOperatingSystem ItisacriticalphilosophytoachieveourVision GMS HowDoWeReachOurGoals NUMMI TOYOTA CAMI Suzuki OPEL Eisenach GMNA GreenBook QN Saturn CreationofGMS GMSnotaonlya GM systembutismostlymodeledonToyota someSuzukiphilosophy GMS 1996 GMSwasbornoutofthestrategicneedtoadoptmodern leanthinkingforcorporatesurvival Massvs LeanProcesses Bufferedprocessesareprotectedagainsteverything unexpectedqualityproblems stoppages highabsenteeism etc Leanprocessesassurecontinuousflowwithminimalwastebyempoweredteamsandthequalityshouldbeachievedwithintheprocess 1800 Craft 1900 Mass 2000 Lean WhatisLeanThinking ToyotaPhilosophy StrongCorporateCultureBalanceBetweenProcessandResultsCommitmenttoLearningnotKnowingEntireOrganisationKnowsandUsestheSystemMinimumbarriersbetweenfunctionsandlevelsFocusonLongTermResults RespectForHumanityandContinuousImprovementthroughtheEliminationofWasteareFoundationofToyota sSystem ShortLeadTime ContinuousImprovementCompany PeopleInvolvementCompany Standardization Built In Quality SafetyPeopleQualityResponsivenessCost UseGMSPrinciplesToObtainOurGoals GOODPROCESSESGOODRESULTS BusinessGoals Scorecard MethodstoMeettheGoals GMS Vision Mission LeanPrinciples Process Goals Metrics Results THE5GMSPRINCIPLES Peoplearethemostvaluableresourceinthecompany PeopleInvolvement Standardization Built In Quality ShortLeadTime ContinuousImprovement Donot AcceptBuildShip aDefect Setandfollowstandardstoachieveabasefromwhichtogrow Customer sQualityexpectationsarebuiltintoeachprocesstoensuredefectsarenotpassed Reducethetimetodeliveranyproductorservice Fosteracultureofchangeandconstantimprovement LikeAnAtomWeNeedAllThePiecesWorkingTogether OneCompany OneSystem ACompany WideOperatingSystembasedonLeanBusinessPrinciples In ProcessControl Verification 4 LikeAJigsawPuzzleYouNeedAllThePiecesSoItCanWork The33ElementsWorkTogether 4 GMSCASESTUDY GeneralMotorsNorthAmerica BeforeGMS 1996AfterGMS 2003 SPQRC SPQRC BUT Toyotastillenjoys8 netprofitwhileGMisat1 5 GMneedstooutperformToyotabyUS 1 500 2 000 unit GMSasanEnterprise WideSystem Avoidthe SiloSyndrome TakeanIntegratedApproachLinktheFunctionalGroupsTogetherUsedinManufacturingbutPrinciplesareGeneric Engineering Manufacturing Purchasing Suppliers SPO Powertrain X GMSisacommonoperatingmethodologythatcanbeusedanywhereintheorganisation SILO SILO SILO SILO SILO JHamalian Designers ProductEngineering Purchasing Suppliers Production After Sales Dealers Buyers Sales Marketing OneCompany withCustomerFirst LeanBusinessPrinciples ACommon Language andCompanyCulturethroughouttheentireCustomerChain JHamalian NewVehicleFactory 5 Whatisa Factory Aplacewherearepeatableprocessisconductedinwhichthereareinputs internalactivityandoutputs NewAdvertisementFactory Whoare Operators ExpenseReportProcessingFactory PurchasingOrderProcessFactory Anyonewhoworksinahighlyrepeatablejobandrequiressupporttobeeffective ServiceCenterFactory ParadigmShift Wehavetothinkoftheworkwealldointermsofacommonprocessmethodology EveryoneCanUseLeanBusinessPrinciples JHamalian PeopleInvolvement PeopleInvolvementElementsVisionValuesHealth SafetyQualifiedPeople TeamworkPeopleInvolvementOpenCommunicationLeadershipBehavior ShopFloorManagement FishPhilosophyVideo FishPhilosophyVideoDiscussion WhatGMSconceptsdidweseeinthevideo Discussasanopenforum FishPhilosophyVideoDiscussion EnvironmentAtTheFishCompanyEnables PeopleInvolvement EmployeeEnthusiasmTeamworkLowAbsenteeismJobRotation Flexibility Roots Culture Values Philosophy GMSPrinciples Trunk People Mindset PeopleInvolvementCompany Branches Processes Tools GMSElements Fruit QualityProduct PEOPLEareourmostimportantresource LikeaTree PeopleNeedNurturingforGrowth Soil Environment ChangeInThinking TRADITIONAL MODERN VIP 1 TEAMMEMBER 1 LeadershipMindChange TOP DOWNLEADERSHIPSTYLE MODERNLEADERSHIPMINDSET Direction Support 80 20 20 80 Direction Support TWO WAYSTREET GiveOrders Teach Coach JHamalian EmployeeMindChange TRADITIONALEXPECTATION MODERNEXPECTATION JustDoWhatYouAreToldToDoEmployeeEnthusiasmNotImportant ParticipateinMakingStandardizedWorkContinuouslyImproveJobInvolvedinProblemSolvingInvolvementBringsEnthusiasm JHamalian EffectiveCommunication PeopleInvolvementCompany EarlyMfg andDesignIntegration DFM DFA PeopleInvolvement ZEROIncidents Ourgoalis HealthandSafety GroupDiscussion Whatisan Incident vs an Accident WearecommittedtoprotectingthehealthandsafetyofeachemployeeastheoverridingpriorityoftheCorporation TheStagesofSafetyAwareness Stage1 UnawarenessofHazards Stage2 AwarenessButNoActiontoPreventInjury Stage3 InjuryButStillNoConcern Buildinga SafetyCulture NoProblem HeCanStillWork TheStagesofSafetyAwareness Buildinga SafetyCulture Stage4 InjuryandRealisationofImpacttoPersonandCompany Stage5 AwarenessofHazards ProactiveCountermeasurestoPreventIncidents SPQRC PotentialHazard UnsafeSituation NearMiss RecordableorFirstAidInjury LostWorkdayInjury Fatality 1 300 3 000 30 000 EmployeeSpillsCoffeeonFloorandWalksAway EmployeeSlipsonCoffee WhileFalling employee sBodyGrazesEdgeofMetalDrawerandLaceratesArm RequiresFourStitches EmployeeFracturesArmWhileHittingtheFloor TwoWeeksOutofWork EmployeeHitsHeadonEdgeofDeskWhileFalling BreaksNeck Dies HerbertHeinrichTravelersInsuranceCo MostProactive Proactive MostReactive HeinrichHazardPyramid Reactive HealthandSafety HowCanWeAchieveOurGoalofzeroFirstAidInjuries RecordablesorLostWorkDays IncidentPrevention BuildingaSafety Culture IncidentReporting TrackingandResolution encouragehonest openreportingtoenableProblemSolving avoidrepeatincident HealthandSafety IncidentscanbePreventedthroughthesefiveactivitiesandmore BehaviorWorkplaceOrganization 5SPersonalProtectiveEquipmentSafeUseofHazardousMaterialsErgonomics EarlyMfg andDesignIntegration DFM DFA TotalProductiveMaintenance PeopleInvolvement Teamwork HOWDOYOUACHIEVEREALTEAMWORK WhatisaTeam GroupDiscussion TeamConcept Smallgroupsofempoweredpeoplewhosharecommongoalsandsupporteachotherthroughcommontasks TeamConcept Direction Support Feedback TheOrganizationStructureIsDesignedToSupportSmall EmpoweredTeams GroupLeader SupportAreas TeamLeader TeamMember Leadership CommonSPQRCgoalsandregularteammeetings EmpowermenttomakedecisionswithinspansofcontrolResponsibilityfor MakingStandardizedWorkProblemSolvingContinuousImprovementJobRotationisgenerallyperformed TeamConcept Design Manufacturing PC L Sales Marketing Finance HumanResources Quality Unions InformationSystems Engineering Suppliers Purchasing ASingleTeamCanOnlyBeSuccessfulIfTheBigTeamWins Individual Family Company Nation World JHamalian PeopleInvolvement OurPeopleWillBe Empowered Engaged EnergeticKnowledgeableFlexible Open MindedCustomerOrientedSkilledintheContinuousImprovementProcessandProblemSolvingAbletoWorkinTeams QualifiedPeople PeopleDevelopment Time QualifiedPeople WELEARN 10 ofwhatweread20 ofwhatwehear30 ofwhatwesee50 ofwhatweseeandhear70 ofwhatwediscusswithothers80 ofwhatweexperiencepersonally95 ofwhatweteachtosomeoneelseWilliamGlasser TheFourStepsofJIT Step1 PREPARETRAINEE StudyStandardizedWork Step4 FOLLOWUP TraineeConfirmSkill Step3 TRYOUTPERFORMANCE TraineeDo TrainerWatch Step2 PRESENTOPERATION TrainerDo TraineeWatch APCD JOBINSTRUCTIONTRAINING JIT Awareness Knowledge Skill Confirmation Why What How TrainingMethodology HEARSEEDO EarlyMfg andDesignIntegration DFM DFA TotalProductiveMaintenance PeopleInvolvement Createandmaintainanenvironmentwhichfostersa spiritofpride PeopleInvolvementElement Involvement Recognition TherearethreeaspectsofInvolvement Recognition 1 Individual TeamIdeas2 SmallGroupPrograms3 RewardsandRecognition Involvement Recognition Suggestions GoFast ProblemSolvingCircles CIPContests IncentiveSystems RecognitionPrograms TotalProductiveMaintenance EarlyMfg andDesignIntegration DFM DFA PeopleInvolvement LeadersmustdrivecommunicationsActivelyengageemployeesinthebusinessopenly frequentlyOpen DoorPolicyListenOftenHaveaPhysicalPresence MBWA ManagementByWalkingAround OpenCommunicationProcess GuidingPrinciples Traditionally communicationonlyfocusesonthe WHAT andmaybethe HOW butpeopledeservetoknowthe WHY WHAT HOW WHY EVENIFTHEYDON TAGREEATLEASTTHEYWILLUNDERSTAND JHamalian CommunicationBoards StateoftheBusinessMtg TeamMtg BusinessUpdateMtg JobPostings TeamBoards Newsletters VoiceMail E mail Internet Intranet TeachingCoachingTrainingFeedback SatelliteBroadcasts DiagonalSliceMtg Dept Head s Mtg GroupTraining LevelTwoInformationalCommunication CoreLevelFace to faceCommunication LevelOneFace to manyfacesCommunication GOOD BETTER BEST KeyEnablersEffectiveUseOfMedia MakeaCommunicationPlan EarlyMfg andDesignIntegration DFM DFA TotalProductiveMaintenance LevelVehicleOrderSchedules SimpleProcessFlow OpenCommunicationProcess PeopleInvolvement GoandSeeLeadershipStyle LeadByExample SPQRC basedMeetingStructure ProactiveCommunicationProcess RegularChecksofProcesses LeadershipBehavior ShopFloorManagement GoandSeeLeadershipStyle Thefocusofleadershipisontheplaceswhereworkisperformed Thisisaccomplishedthroughthe GoandSee philosophy GoandSeetheworkareaswhereconcernsexistandtocheckprogress Don tjustsitatyourdesk goandseewhatishappening LeadByExample ForExample IfYouWantPeopletoKeepTheirAreaClean YouHadBetterAlsoKeepYOURAreaClean Leader JHamalian ILoveLucyVideoPartI StopvideobeforeChocolateAssemblyLine ILoveLucyVideoDiscussion WhatGMSconceptsdidwe not seeinthevideo athomeandatthejob Discussasanopenforum notbyteams ILoveLucyVideoDiscussion Whatdidweseeinthevideo LackofTeamwork Athome spousesdidnotunderstandeachother sjobsNoteamworkatfactoryBosswastraditionaltop downstyle notaleaderLackOfQualifiedPeople Jobqualificationsnotclear poorscreeningprocessLucy EthelnotqualifiedforjobLucy EthelreceivedpoortrainingbybossLackofOpenCommunication Spousesdidnotcommunicateenough example atbreakfast Notalkingatfactoryresultsinnosupport noteamwork JHamalian HowOftenDoWeSeeTheseScenariosinOurWorkArea StockingUpInventory ExcessiveTransporting Storage Handling ExcessWalking Decision CommunicationandReportingMaze EquipmentBreakdown Meetings Meetings Meetings ThreeEnemies 7Wastes Muda Unevenness Mura andOverburden Muri EnemiesofAnyProcess 7TYPESOFWASTE ShiftMindset TYPESOFWASTE I C O M W P M CURRENTTHINKING WASTENOTDEFINEDREACTTOLARGEEXAMPLESREACTIVEIMPROVEMENT REQUIREDTHINKING Correction OverProduction Motion MaterialMovement Waiting Inventory Processing WASTEIS TANGIBLE IDENTIFYMANYSMALLOPPORTUNITIESLEADSTOLARGEOVERALLCHANGE WASTE Sendingbackformsforincompleteorinaccuratedata Producingreportsthatarenotused performingmoreanalysisthanrequired producingreportsbeforetheyareneeded Searchingformisplaceditems Filingdocumentsthatwillneverbeusedagain Delaysingettingneededinformation approvals ordecisions Keepingmultiplecopiesofreports Processingexcessivewrittencommunicationtodetermineissuesrequiringattention mentalprocessing CONTINUOUSIMPROVEMENT WasteisEVERYWHERE JHamalian WasteEliminationthroughPeopleInvolvementistheFoundationoftheentireOperatingSystem MakeWasteVisible ConquerIt Wasteiseasytoidentifyinawellorganisedorganisation MostWasteisHidden Therearetwomajorcategoriesofwaste ObviouswasteHiddenwaste JHamalian Poorcompaniesletwasteslowlybuildupthenrealizetheyareintroubleandmakehugecutsthataffectvalue addedactivitiesandpeople slivelihood SuccessfulcompaniescontinuouslyeliminatewasteFromallprocessesandactuallyGROWthecompany WhyEliminateWaste Example Toyota JHamalian EliminatingWasteIsJobSecurity WASTE MOREMONEYFORVALUE ADDEDTHINGS BETTERPRODUCTS BETTERFEATURES MOREADVERTISING INCREASEDSALES INCREASEDDEMAND MOREPRODUCTION MOREJOBS JHamalian Standardization StandardizationElementsStandardizedWorkWorkplaceOrganizationManagementByTaktTimeVisualManagement WorldClass ContinuousImprovement Change Standardization Thepurposeofstandardizationistoreducevariationandstabilize soastoachieveabasefromwhichtogrowandimprove THEWEDGE TOSTABILIZEBESTPRACTICE Standardization AStandardIsTheBestCurrentPracticeBasedOnManyPeople sExperience LessonsLearned so DON TSHORTCUTTHESTANDARD BADTHINGSCOULDHAPPEN ESPECIALLYSAFETY QUALITYPROBLEMS IFYOUDON TLIKETHESTANDARD TRYTOCHANGEIT BUTNEVERSHORTCUTIT Standard Shortcut JHamalian WhatHappensWhenWeDoNotFollowStandards EVERYYEARPEOPLEDIEFROMNOTFOLLOWINGLOCK OUTPROCEDURE U SSUBMARINEHITSJAPANESEFISHINGBOAT SURFACINGPROCEDURENOTFOLLOWED EXXONVALDEZOILSPILL CAPTAINDIDNOTFOLLOWSTANDARDS GERMANPLANECRASHESINSWITZERLAND AIRTRAFFICCONTROLPROCEDURESIGNORED JHamalian MAKERULETEACHRULEKEEPRULE LEADBYEXAMPLE Itiseasytomakestandards butwedonotalwaysdoagoodjobcommunicatingthemandareevenworseatsustainingthem includingourselves Ifyoudonothaveaprocesstosustainastandard whyevenintroduceitinthefirstplace BEAROLEMODEL JHamalian Resultsachievedonlywhenpeoplealldotherightthing PeopleInvolvementLinktoStandardization DisciplineandOrderlyEnvironment LackofDisciplineresultsinChaos I S Han RBPS ManufacturingProcessValidation In ProcessControl Verification VisualManagement ManagementbyTAKTTime ProblemSolving ContinuousImprovementProcess TotalProductiveMaintenance LevelVehicleOrderSchedules SupplyChainManagement TemporaryMaterialStorage HealthandSafetyPriority PeopleInvolvement Values Vision Mission ShopFloorManagement Standardization EarlyMfg andDesignIntegration DFM DFA LeanDesignofFacilities Equipment ToolingandLayout ScheduledShipping Receiving WPOMotto Aplaceforeverythingandeverythinginitsplace WorkplaceOrganization PutordertotheworkplacebymakingStandardsthatallow out of standard conditionstobevisible Howisworkplaceorganizationdone WorkplaceOrganization 5S 5SelfDiscipline Cont Improvement 4Sustain Maintain 2Sort Standardize 1Sift Clear 3Sweep Clean AnythingoutsidethestandardisWASTE WPOisakeymeansofvisualizingandeliminatingwaste Whyworkplaceorganization MakeWasteVisible JHamalian Whyworkplaceorganization JHamalian Exampleof5S Cabinet After5S Cabinet Before5S WhichCabinetDoYouWant WhichoneisSafer makesWastevisible leadstolessMistakesandletsyougetpartsQuicker QualitySystemManagement In ProcessControl Verification QualityFeedback Feed forward StandardizedWork VisualManagement Work placeOrganization AndonConcept ProblemSolving BusinessPlanDeployment TotalProductiveMaintenance ScheduledShipping Receiving LevelVehicleOrderSchedules SupplyChainManagement InternalPull Delivery SimpleProcessFlow TemporaryMaterialStorage FixedPeriodOrderingSystem OrderParts HealthandSafetyPriority TeamConcept Values Vision Mission ShopFloorManagement Standardization EarlyMfg andDesignIntegration DFM DFA LeanDesignofFacilities Equipment ToolingandLayout ControlledExternalTransportation ContinuousImprovementProcess InstillingASenseOfTime DisciplinetoKeepIt MeetingTimeMeetingPlaceParticipants Leaderhasnoregardfortime 8 00Introductions8 10Kick off8 30TeamActivity11 00Report Outs LeaderKeepsTime NoAgenda AgendawithTime NoTimeManagement ManagementByTakt NoSenseofTimeBuiltinProcessSomearrivelate othershavetowaitNo timekeeper tokeepdisciplineMeetingcaneasilygoovertimethusproducingwaste SenseofTimeBuiltIntotheprocessAllmembershaveaRespectfortimeLeadersensureDisciplineKeepingtimeminimizesWaste TimeManagementPhilosophy JHamalian TaktTime Numberofgoodsorservicesrequiredpertimeperiod RelateallWorktoTimeandMakeitVisualandManageable TaktTime TheRequiredAmountOfTimeToProduceaProductOrServiceBasedOnCustomerDemand OperationalTimePerPeriod ManagementByTaktTime TimeManagement ManagementByTaktTime TimeManagement Operation 30 90 Take Off Landing ServeDrinks Meeting 8Hours Kick Off Wrap Up 60 Project 3months Concept AdvertisementshownonT V FlightAttendanthas60 toservedrinks ifthereare60passengers TaktTime 1 Example Marketing Example BoardMeeting Example Airliner Lunch NextSteps QuarterReview Approval ProductionReady JHamalian ManufacturingProcessValidation QualitySystemManagement In ProcessControl Verification QualityFeedback Feed forward StandardizedWork Work placeOrganization ProblemSolving ContinuousImprovementProcess TotalProductiveMaintenance ControlledExternalTransportation ScheduledShipping Receiving LevelVehicleOrderSchedules SupplyChainManagement InternalPull Delivery SimpleProcessFlow TemporaryMaterialStorage FixedPeriodOrderingSystem OrderParts HealthandSafetyPriority PeopleInvolvement Values Vision Mission ShopFloorManagement Standardization EarlyMfg andDesignIntegration DFM DFA LeanDesignofFaciliti
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