Lean Rolling Stock Maintenance How to improve efficiency of rolling December, 2009
Transcription
Lean Rolling Stock Maintenance How to improve efficiency of rolling December, 2009
December, 2009 Lean Rolling Stock Maintenance How to improve efficiency of rolling stock maintenance operations C O N F I D E N T I A L | www.oliverwyman.com Confidentiality The confidentiality of our clients’ plans and data is critical. Oliver Wyman rigorously applies organizational separation of teams working for competitors as well as several other rules to protect the confidentiality of all client information. Similarly, our industry is very competitive and we view our approaches and insights as proprietary. Therefore, we look to our clients to protect Oliver Wyman's interests in our presentations, methodologies, and analytical techniques. Under no circumstances should this material be shared with any third party, including competitors, without the written consent of Oliver Wyman. © Oliver Wyman www.oliverwyman.com FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales paper_draft_final (3).ppt 1 Introductory Remarks The present document provides insights on Oliver Wyman’s approach to lean rolling stock maintenance The intention of the document is to provide a base for discussion on how to optimize rolling stock maintenance operations using lean management methods and tools Therefore parts of this document may not entirely be self explanatory and may require additional verbal explanations For any questions please contact: Joris D’Incà Oliver Wyman AG Tessinerplatz 5 8027 Zürich Tel.: +41 (1) 208 7749 Mobile: +41 (79) 4212484 [email protected] © Oliver Wyman www.oliverwyman.com Jochim Wegner Oliver Wyman Consulting GmbH Kasernenstr. 69 40213 Düsseldorf Tel.: +49 (211) 8987 694 Mobile: +49 (151) 21225386 [email protected] FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales paper_draft_final (3).ppt 2 Content Rolling stock maintenance: A major cost factor for rail operators Oliver Wyman approach to reach best-in-class lean rolling stock maintenance How to unlock the potential of maintenance operations through lean management Oliver Wyman qualifications © Oliver Wyman www.oliverwyman.com FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales paper_draft_final (3).ppt 3 Rolling Stock Maintenance: A major cost factor for Rail Operators Maintenance accounts for approx. 30% of the lifecycle costs of a high-speed train, making it the largest rolling stock operating cost factor besides energy Life Cycle Costs – High-speed fleet In percent 100% 7% 11% Cleaning Tech. management 30% Maintenance (incl. spare parts) 30% Energy 23% Depreciation Example Comments Besides energy and depreciation, maintenance is the largest cost factor of a high speed train Over the lifecycle of a high-speed train, maintenance costs exceed depreciation Approx. 60% of maintenance costs are personnel cost and 40% for material / spare parts For a fleet in service, maintenance cost is the major cost position subject to optimization as depreciation and energy stay constant during the fleet’s lifecycle High-speed Source: Oliver Wyman © Oliver Wyman www.oliverwyman.com FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales paper_draft_final (3).ppt 4 Example Rolling Stock Maintenance: A major cost factor for Rail Operators Therefore, effective maintenance is a driver of competitive advantage for rail operators Example: Cost comparison of freight wagon refurbishment Example: Comparison of availability of reference locomotive 93% +47% 11,2 Adjustment for labor rates ~0,4 Overheads ~4,6 Direct labor 9,2 7,6 1.4 88% 5% +21% 2.7 Hours worked on wagon: 3.5 4.2 Railroad A Railroad B ~35 +97% Materials Railroad A Railroad B ~70 Overall, in this example, Railroad A has a cost advantage of 3-4% over Railroad B Source: Oliver Wyman Open-Book-Benchmarking © Oliver Wyman www.oliverwyman.com FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales paper_draft_final (3).ppt 5 Content Rolling stock maintenance: A major cost factor for rail operators Oliver Wyman approach to reach best-in-class lean rolling stock maintenance How to unlock the potential of maintenance operations through lean management Oliver Wyman qualifications © Oliver Wyman www.oliverwyman.com FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales paper_draft_final (3).ppt 6 Objectives of Lean Rolling Stock Maintenance The overall objective of Lean Rolling Stock Maintenance is to reach an optimum between maintenance costs, availability and quality of the fleet Quality Optimization of vehicle reliability, security and comfort Maintenance costs Vehicle availability Minimization of personal and material costs Maximization of vehicle availability for operations Source: Oliver Wyman © Oliver Wyman www.oliverwyman.com FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales paper_draft_final (3).ppt 7 Lean Rolling Stock Maintenance – Overall KPI targets Measurable Key Performance Indicators (KPI) should be the guiding line for lean maintenance optimization Lean Rolling Stock Maintenance Overall KPI examples Quality Vehicle availability Maintenance costs Failure rate Cycle time for interventions Preventive maintenance Reliability (MTBF/MDBF) Delivery times (inbound/outbound) Curative maintenance Customer comfort Response times to failures Costs of indirect functions Condition of rolling stock Downtime due to failures Assets and facilities ... … … © Oliver Wyman www.oliverwyman.com FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales paper_draft_final (3).ppt 8 Oliver Wyman lean maintenance approach – Overview Lean Maintenance can be achieved in three stages B A C Maintenance Strategy Setup Maintenance Process Redesign Lean Workshop Transformation Re-definition of maintenance regimes – Modularization – Condition based – Stretching Redesign of maintenance core processes – Planning and Controlling – Fleet Management – Technical engineering – Repairs – Retrofitting / Modernization – Spare part/Component logistics and procurement Implementation of lean methods to optimize workshop efficiency – Standardized work – Workplace organisation – Shopfloor management Scope of activity Workshop footprint Leadership organization and systems Impact on operating costs Time horizon 2+ years 1 - 2 years <1 year Source: Oliver Wyman © Oliver Wyman www.oliverwyman.com FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales paper_draft_final (3).ppt 9 A A B C Maintenance Strategy Setup Four areas have to be addressed to define the overall rolling stock maintenance setup Re-definition of maintenance regimes A Transition to modularized maintenance regimes Maintenance Regime A modularized maintenance regime helps to optimize downtime of a train and introduce condition based maintenance Non modularized maintenance regimes Modularized maintenance regime Freight traffic traction Freight traffic traction 140k km F2 35k km F2 5k km F1 F0 F0 t SM 7 SM 6 SM 3 SM 6 SM 7 SM 2 SM 5 SM 2 SM 5 SM 2 SM 1 SM 4 SM 1 SM 4 SM 1 Natural train downtime Driven by kilometric performance Service modules to use natural down times Avoidance of short term control due to extensive preventive maintenance Transition to flexible service capacities through qualification on as many locations as possible Synchronization of circulation and maintenance often not possible Tailored modules by km / time / erosion / utilization t Scope of activity A Condition based maintenance Workshop 1 Preventive Maintenance Corrective Maintenance Modifications Small Exam Med. Exam Diagno stics Light Light Heavy Refurbishment Heavy Outside Workshop 5 () Cleaning Inside () Workshop 3 Workshop 4 Overhauls () Workshop 2 Stretching of maintenance intervals Depth of maintenance operations – Light maintenance – Heavy maintenance – Refurbishment – Cleaning Scope of Service performed internally by workshop Maintenance is split across several facilities Types of rolling stock Full scope Limited scope Source: Oliver Wyman Workshop footprint A Leadership organization and systems Optimization of workshop footprint balancing – Cost of locations – Transfer cost of rolling stock – Transfer time needed Footprint Location planning needs to take trade-off between transfer cost of rolling stock and cost of location into consideration Location planning for maintenance cites Example ICE-T Trade-Off for Location Optimization Location of trains in downtimes and location of trains with failures Hamburg Location of trains with failures Berlin Dresden Transfer cost for rolling stock Leipzig Wiesbaden Frankfurt Saarbrücken 33 © Oliver W yman www.oliverwyman.com 12 © Oliver Wyman www.oliverwyman.com Optimized location concept Munich Cost of location (direct and indirect costs) A Definition and implementation of leadership and KPI system Leadership Systems An integrated KPI system ensures appropriateness and quality control in maintenance planning and execution Performance indicators for maintenance planning and execution Performance Indicators Maintenance costs Frequency of investigation 24/7 Peak times … Availability Quality Overall maintenance costs per train-km Fleet availability Mean time / distance between Failures Vehicle maintenance costs per 1.000 km Vehicle availability Absolute failure frequency per 1.000 train km Parts and labor costs per replacement Spare part availability Refurbishment quota … … … ICE-T depot © Oliver W yman www.oliverwyman.com 13 © Oliver Wyman www.oliverwyman.com 14 Source: Oliver Wyman © Oliver Wyman www.oliverwyman.com FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales paper_draft_final (3).ppt 10 A B B C Maintenance Process Redesign Process redesign for maintenance encompasses direct maintenance related processes and related planning and supporting processes Illustrative Core processes 1.0 Integrated Planning and Controlling 1.1 Vehicle support and maintenance standards 1.2 Capacity planning and controlling 1.3 Vehicle transfer and return 1.4 Spare parts – Purchase / Logistics 2.0 Fleet Maintenance 2.1 Task preparation 2.2 Plant planning / controlling 2.3 Periodical work 2.4 Repairs 2.5 Cleaning / vehicle preparation 3.0 Modernization & retrofitting 3.1 Task preparation 3.2 Plant planning / controlling 3.3 Engineering 3.4 Modernization 3.5 Retrofit 4.0 Component manufacturing and refurbishment 4.1 Task preparation 4.2 Plant planning / controlling 4.3 Component manufacturing 4.4 Component refurbishment 5.0 Support functions 5.1 Finance and Controlling 5.2 IT 5.3 QSE 5.4 Human Resources Source: Oliver Wyman © Oliver Wyman www.oliverwyman.com FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales paper_draft_final (3).ppt 11 A C B C Lean Workshop Transformation – Objective Lean Workshop Transformation eliminates the root causes creating inefficiencies in the workshops by creating a higher level of industrialization of the workshop Typical issues creating inefficiencies in a rolling stock maintenance workshop (examples) Objective of Lean Workshop Transformation Maintenance tasks are not standardized - Inadequate checklists or work instructions - Lack of standards for tools and locations - Missing standard times for tasks Workshop organization not performance driven - Lack of performance management - Supervisors lack information about job status - No sharing of best practices Insufficient planning and preparation - Repairs are given the highest priority and interrupt scheduled work - Scheduled maintenance tasks are started before all parts and equipments are ready Industrialization of the workshop - More standards - Higher efficiency Infrastructure constraints - Tracks are not equipped in a standard way - Teams have to wait for a shared equipment to become available Spare parts logistics - Long lead times for spare parts - Repairables logistics not optimized Source: Oliver Wyman © Oliver Wyman www.oliverwyman.com FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales paper_draft_final (3).ppt 12 A C B C Lean Workshop Transformation – Foundations Industrialization is achieved by applying Lean and Six Sigma concepts in 3 key areas: Work standardization, Workplace organization and Shopfloor management Lean Manufacturing Six Sigma Lean system: delivery of products and services matched to customer needs Six sigma system: reduce variation and defects to improve quality Lean concepts: eliminating waste, i. e. anything not adding value to the product or the customer, and improving process flow Six sigma concepts: reduce process variation to eliminate defects, while ensuring the organization is focused on the voice of the customer to differentiate products and services Lean approach: a total organizational and cultural transformation Lean Workshop Transformation 3 focus areas: Work standardization Workplace organization Shopfloor management © Oliver Wyman www.oliverwyman.com Six sigma approach: measure defects, analyze the root cause, systematically improve the system and ensure sustainment of the gain FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales paper_draft_final (3).ppt 13 A C B C Lean Workshop Transformation – Overview Our experience shows that these 3 areas are key pillars to drive Lean Workshop Transformation Objective Results Work standardization Workplace organization Shopfloor management Reduce variation in preventive and curative maintenance tasks to improve efficiency and quality Organize workplace in the most efficient manner possible Establish adequate planning and communication on the shopfloor Stabilized, repeatable maintenance processes Defined standards in terms of cleanliness and orderliness (“A place for every tool and every tool at its place”) Quicker exchange of information on the shopfloor KPI-based process to ensure sustainability Continuous improvement on the shopfloor Reduced throughput time Increased quality (elimination of sources of error) Increased flexibility in the deployment of employees Accelerated feedback to work order planning teams Source: Oliver Wyman © Oliver Wyman www.oliverwyman.com FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales paper_draft_final (3).ppt 14 A C B C Lean Workshop Transformation – Toolbox Lean Workshop Transformation uses a toolbox combining traditional and Lean Six Sigma methods and tools Traditional Process Improvement tools Lean tools Checklists PDCA Pareto Charts 5S Flowcharts/Process Maps Standardized work Cause-Effect Diagram (Ishikawa diagram) Level production Histogram Value Stream Mapping Correlation Total Productive Maintenance (TPM) Control Chart Visual Controls Problem solving (5 Why, A3 boards,…) Pull/Kanban Systems Continuous improvement process … Lean Workshop Transformation Organization and Planning tools Statistical tools Vision, Mission, Values Gage R&R (MSA) Hoshin Planning (Policy deployment) Process Capability Roles and responsibilities Data Collection Plan “Go see it” Management system Hypothesis Testing Empowered workforce Multiple Regression Flexible workforce Design of Experiments Quality circles/Quality function deployment Modeling Supplier development Statistical Process Control CTQ/Voice of the Customer (Kano model) Cross-Functional Mapping … © Oliver Wyman www.oliverwyman.com FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales paper_draft_final (3).ppt 15 A C B C Lean Workshop Transformation – Oliver Wyman Lean Curve Lean tools used will depend on the organization’s current lean maturity Lean Maturity levels and corresponding lean focus/tools Position of best-in-class workshops in the rolling stock maintenance industry 4 Realized improvements Lean maturity 3 Position of average workshops in the rolling stock maintenance industry 2 Maturity level 1 Transformation focus Organizational development Discipline building Lean tool use Continuous improvement Methods and Tools Vision, Mission, Values Hoshin Planning (Policy Deployment) Visual controls Quality circles Roles and responsibilities Core competencies linked to performance PDCA Empowered workforce Flexible workforce “Go see it” Management System Problem solving 5S Error proofing (EP) Continuous improvement process Feedback and communication system Quick changeover (QCO) PD linkage via DFA/DFM and QFD Pull/Kanban systems Supplier development Standardized work Andon Level production 1-piece-flow Value Stream Mapping Just-in-time (JIT) Total Productive Maintenance (TPM) Statistical process control Source: Oliver Wyman © Oliver Wyman www.oliverwyman.com FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales paper_draft_final (3).ppt 16 B A Lean Workshop Transformation – Standardized work Standardized work has several levels of excellence, ranging from basic checklists for a complete check to standard worksheets for every single task of this check Standardized work C C Basic Checklist Level 1 Contents Optimized checklist with maintenance tasks Advanced Checklist Level 2 Optimized checklist including – Tools used and locations – Material used Standard time for entire check Standardization Missing tasks and existing and optimization standards included in levers checklist Improved coordination between different tasks (e. g. mechanical and electrical) Improved task preparation Reduced movements and search time Workplace organization Shopfloor management Standard worksheet For each task: – Detailed description of how the task is carried out – Standard time for each step – Visualization of each task – Safety equipment – Tool – Material Reduced variance in carrying out a certain task Maintaining a predefined quality level Workers perform each task in the most efficient way Optimized sequence of maintenance tasks Source: Oliver Wyman © Oliver Wyman www.oliverwyman.com FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales paper_draft_final (3).ppt 17 B A Lean Workshop Transformation – Standardized work In order to standardize work, the actual steps of maintenance tasks are recorded and optimized with the maintenance teams Standardized work C C Workplace organization Shopfloor management Oliver Wyman case example Recorded sequence of I2 maintenance level Excerpt Pos.Nr. Pos. # Aktivität Check- Nr. MA -12 1 Werkzeug Vorbereiten 6.1.1.1 -1 13 1 Kompressor Sicht- und Funktionsprüfung Luftockner 5 -1 14 1 Luftgerüstschrank: Absperrhäne prüfen -1 Filter vom Magazine holen (unvollständige Bon) -Unterbrechung wegen 1503 Reparatur -1 Werkzeug Vorbereiten 1 Alte Filter ausbauen Sichtprüfung, Entwässerung 6.1.1.1.-1 Filter aus Lager holen 6.1.1.2 1 Neue Filter einbauen -2 Ersatzteile für I2 aus dem Wartungspaket für I3 ausgesucht -Pause -1 Abklärung Checkliste mit Baureihenbetreuer; Checkliste Eintragen -2 Materialbeschaffung -1 Absprache bezüglich Pannenbehebung -1 Werkzeug vorbereiten -2 Absprache mit Vorarbeiter -1 Materialbeschaffung -1 Turbolader reparieren 6.2.1 1 Hydrauliköl wechseln 6.2 1 Ölfilter ausbauen, Schleuderfilter auslaufen lassen 6.2 1 Hydraulikölfilter abbauen -Beobachtung unterbrochen wegen Reparatur 1817 6.2 Filterspritzwanne Hydrostatik 6.2 Öl füllen 6.2 2 Einbau Ölfilter 6.2 1 Einfüllen Hydrostatiköl -1 Checkliste Eintragen 3.5.1 1 Dieselfilter austauschen 3.5.1 1 Dieselfilter entlüften -1 Checkliste nachsehen 1.6.8-2 2 Kühl- und Washanlage Flüssigkeit holen 1.6.8-2 1 Kühl- und Washanlage Flüssigkeit holen + füllen -1 EPI holen (Helm) 2 2 Sichtprüfung Fahrwerk -2 Checkliste Eintragen 2.5 1 Sichtprüfung Unterbau + alle Schalter und Steckdosen -1 Checkliste Eintragen -Pause -1 Werkzeug vorbereiten (Radmeßung) 2.4.-2 2 Radsatz vermessen -1 Datenblatt Radsatz abgeben -1 Checkliste eintragen -1 Meßwerkzeug zurück bringen -1 Schmierpumpe holen 1.1.2.1. 1 Türschlösser und Scharnieren schmieren -1 Schmierpumpe zurück bringen -1 Checkliste eintragen + lesen -1 EPI und Werkzeug weg räumen # of workers per task Task 07:00 08:00 Issues 09:00 10:00 11:00 12:00 13:00 14:00 Visualization of actual sequence 15:00 16:00 Dauer (min) 5 10 10 5 25 5 10 10 10 10 15 10 30 20 5 5 10 20 15 15 15 290 15 35 10 5 20 30 20 10 10 10 5 10 5 15 10 30 10 25 5 15 5 5 15 5 5 20 Sequence of PM tasks not optimized, e. g. – Oil purge valve only opened at the beginning of oil filter change lasts several hours – Brake test delays underbody grease PM tasks have been fully interrupted due to repairs on another locomotive Frequent and lengthy movements by workers to get tools or parts Duration Checklist references Source: Oliver Wyman © Oliver Wyman www.oliverwyman.com FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales paper_draft_final (3).ppt 18 B A Lean Workshop Transformation – Workplace organization Workplace organization is optimized using the 5S method - a standard process involving a systematic review of all items and installations in the work area using 5S cards Standardized work C C Workplace organization Shopfloor management Oliver Wyman case example 5S implementation process Sort Straighten Shine Standardize Sustain Implementation stages Systematic review of all items and installations in the pilot area using 5S cards 5S card Identification of usage type and frequency for each item Definition of storage locations Organization of workplace Cleaning of area Disposal of unnecessary items Deployment of visual tools Clarification of responsibilities for maintenance and inspection Review of delivered results Definition of checklist for area Implementation of KPI-based continuous improvement process Tagging of equipment and material using 5S cards Organization of workplace Source: Oliver Wyman © Oliver Wyman www.oliverwyman.com FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales paper_draft_final (3).ppt 19 B A Lean Workshop Transformation – Workplace organization Typically, a pilot area will serve as a reference for 5S roll-out to the entire workshop Standardized work C C Workplace organization Shopfloor management Oliver Wyman case example After (Examples) Before (Examples) Cleanliness/ orderliness Workplace organization Tools and materials are not stored in specified locations “A place for everything and everything at its place” Cleanliness variable Visual management standards Tools are stored without system Use of shadow boards to ensure tooling is complete No visual clues Cabinets in the work area – Insufficiently marked – Work benches insufficient and used as shelves Sorting and systematic storing of parts/tools Creation of additional workspace in the work area Standards are kept through implementation of 5S checklists and KPI-based 5S audits Source: Oliver Wyman © Oliver Wyman www.oliverwyman.com FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales paper_draft_final (3).ppt 20 B A Lean Workshop Transformation – Shopfloor management Efficient shopfloor management relies on effective communication by maintenance managers and team leaders Standardized work C C Workplace organization Shopfloor management Efficient shopfloor management Principles of effective communication Communication should be structured, disciplined and frequent All meetings held on the shop floor via information centers/boards and or team rooms One-on-one communication regarding results of a process or other audit take place at the point of cause (POC) or location of the audit with the appropriate employees In effective meetings only relevant information/issues based on actions / feedback and accurate data are discussed Rules for visual displays All information and data are kept on simple, visual displays (e. g. boards), which are – Completed in a timely manner – Updated by hand whenever possible – Reviewed regularly by key personnel Characteristics of simple, user-friendly visual controls: – Current status communicated at a glance – Prompt “go and see” activity – Initiate containment, countermeasure and support activity Source: Oliver Wyman © Oliver Wyman www.oliverwyman.com FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales paper_draft_final (3).ppt 21 B A Lean Workshop Transformation – Shopfloor management Ultimately, a coordinated set of daily meetings involves all workshop levels – from the worker on the shopfloor to the workshop manager Standardized work C C Who? Workshop manager Area manager Supervisor Teamleader What? When? Where Key points from previous shift Action relevant to Group/Team Specific trends for Group/Team Shift schedule Safety check Safety Quality Kaizen Worker Shopfloor management Purpose Continuous improvement Confirmation of previous shift results Trend analysis Review actions taken and results Next steps Review shift report Review performance trends Review actions Review previous shift performance Review trends Set action Review outstanding tasks Review resources capacity Workplace organization Infocenter Before each shift Group area Team area Communication of shift requirements Communication of key points from previous shift Consensus on actions for coming shift Communication of trends Prioritization of tasks Consistent dialogue with group Overview of key points from previous shift Create awareness on coming actions Create awareness on Group metrics and actions Safety issues Worker involvement Communication of key points specific to team Worker input to continuous improvement process Develop ownership and accountability Source: Oliver Wyman © Oliver Wyman www.oliverwyman.com FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales paper_draft_final (3).ppt 22 B A C Lean Workshop Transformation - Effects Lean addresses all the key value levers of an organization to optimize operational performance and economic results Value levers for workshop operations C Illustrative Key results Hours per maintenance Productivity increase by 15% - 40% Personnel Hourly rate COGS Reduced material usage Material Costs Limited but effective support resources requirements SG&A EBIT Additional 3rd party maintenance and operations revenue Turnover ROCE1 Inventory Working Capital Receivables Liabilities Capital employed Reduced capital costs through better inventory management and pooling Increased availability of critical parts Infrastructure Reduced infrastructure costs (increased OEE) Reduced CAPEX requirements Rolling stock Increased rolling stock availability by 3-4% Reduced CAPEX requirements Fixed assets Overall ROCE improvement of +5 pts 1 Return on capital employed Source: Oliver Wyman © Oliver Wyman www.oliverwyman.com FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales paper_draft_final (3).ppt 23 A C B C Lean Workshop Transformation – Sustainability Short term Lean Workshop Transformation should be combined with a longer term Lean culture change to ensure sustainable productivity improvements Performance curve of Lean Workshop Transformation projects Lean Workshop Transformation methods Workshop Productivity (indexed) Lean principles, benchmarks and best practices Quick short term improvements Optimization of processes and structure Productivity increasing measures Change Management/Sustainability Proven methodology and coaching Sustainable Lean Workshop Transformation Productivity with CIP/ Lean culture change 125 Lean culture change effect Productivity without CIP/ Lean culture change 100 Lean Workshop Transformation Continuous improvement/ Lean culture change Time Source: Oliver Wyman © Oliver Wyman www.oliverwyman.com FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales paper_draft_final (3).ppt 24 Content Rolling stock maintenance: A major cost factor for rail operators Oliver Wyman approach to efficient rolling stock maintenance How to unlock the potential of maintenance operations through lean management Oliver Wyman qualifications © Oliver Wyman www.oliverwyman.com FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales paper_draft_final (3).ppt 25 Lean Workshop Transformation – Principles To achieve sustainable results, Lean Workshop Transformation implements a process of top-down definition of KPIs and goals and bottom-up generation of ideas Contents RS manager up mtto Bo Project sponsor To p - do wn Roles and organization levels Workshop manager Core team KPIs and targets Maintenance manager Project team Maintenance teams Problem solving process Top-down definition of KPIs, targets and approach Definition of issues Decisions (top level of escalation process) Consolidation of KPIs and targets (“catch ball” principle) Implementation responsibility (escalation) Support of (pilot) areas Follow-up on improvements (KPI) Check effectiveness of implemented measures Escalation, in case of insufficient support Bottom-up workshops to reach KPI-targets Generation of improvement ideas Implementation of improvements Escalation, in case of insufficient support Source: Oliver Wyman © Oliver Wyman www.oliverwyman.com FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales paper_draft_final (3).ppt 26 Lean Workshop Transformation Pilot – Generic approach Typical duration of a pilot phase is 12 weeks, including a 2 weeks quick scan Lean Workshop Transformation – Pilot Lean workshop loop 2 weeks1 1 Quick scan to identify pilot workshop area Quick assessment of workshop areas – Standardized work – Workplace organization – Shopfloor management Comparison of relative maturity Selection of pilot workshop area 1 week 2 Definition of priority topics, goals and KPIs Definition of priority topics for Lean Transformation Assessment of improvement goals Definition of corresponding KPI improvements Priority topics and KPIs defined 9 weeks 3 Lean workshops 4 Specific workshops with project teams for each priority area: – Task explanation – Observation/Issue analysis – Action definition – Implementation launch Actions planned and implementation launched Implementation Implementation of longer term actions Follow-up on actions through PDCA action plan Actions implemented/ Continuous improvement 1 Depends on the number of workshop areas to scan (~2 days per area) Source: Oliver Wyman © Oliver Wyman www.oliverwyman.com FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales paper_draft_final (3).ppt 27 Oliver Wyman case example Example Lean Transformation approach Standardized work, 5S, Shopfloor management and KPIs were implemented in a pilot area of the client workshop using a 3-step approach Lean Transformation Step 1 Lean Transformation Step 2 Standardized work Level 1: Fully completed checklists Coordinated electrical/ mechanical tasks Optimized task sequence Standardized work Level 2: Tools Materials Standard time for complete maintenance task Lean Transformation Step 3 Standardized work Level 3: Optimization of each individual task Standard worksheets with standard time for each task Standardized work Workplace organization and cleanliness 5S 5S implementation based on maintenance tasks 5S checklist and KPI to keep standard Capacity and resource planning Shopfloor management & KPIs Implementation of two meetings per shift Implementation of work, resource and track planning Definition of KPI set Source: Oliver Wyman © Oliver Wyman www.oliverwyman.com FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales paper_draft_final (3).ppt 28 Success factors for implementation Clear targets and management leadership are key success factors for Lean Maintenance Transformation Clear targets and responsibilities for improvement measures Management buy-in, commitment and leadership Transparency on goals and methods Trust in project success from all stakeholders, incl. shopfloor workers Fast execution of improvements to kick-off lean culture Openness on performance gaps and related root causes (“no sacred cows”), willingness to change Management implication and leadership in order to change things quickly Success factors Implementation oriented approach quickly generating visible results Transparent communication within the project and to all stakeholders Early identification and mitigation of implementation obstacles Source: Oliver Wyman © Oliver Wyman www.oliverwyman.com FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales paper_draft_final (3).ppt 29 Quick Lean Maintenance Operations Assessment Have you implemented lean maintenance basics? Quick Lean Maintenance Assessment Scorecard Lean Temperature Check Practice Implementation level Standardized work Not (0) Partly (1) Fully (2) PM is carried out using comprehensive checklists as a reference – standard times are defined for the whole checklist 20 For key tasks, standard worksheets show the optimal way to perform the task. All workers are trained to the optimal method 18 For main fault categories, curative interventions (inspection, repair) are standardized (use of fault trees,…) 16 Clear separation of team spaces and workplace Workplace organization 14 12 Workplace is always clean and orderly, tools are kept at their designated places, materials and parts are stored away 10 Visual management standards (floor and installation markings, tags,…) are defined and implemented everywhere You’ve implemented a lot of basic practices, but can still improve on those You’ve started with lean practices, but could benefit from a complete roll-out 8 5S checklist, KPI and audit process exist to sustain workplace organization standards Shopfloor management Congratulations, you are ready to continue with sophisticated lean methods 6 4 Team meetings, lead by supervisors, take place at least once per shift on the shopfloor to perform resources and work planning 2 Visual displays, updated daily, with work and resource planning, SQACM1 KPIs and PDCA action plan efficiently support meetings Lean maintenance practices are not implemented or seem to be very weak only – call for action needed 0 All unsolvable issues at one level are escalated, using the correct escalation process, and are resolved in due time Score2 x / 20 1 Safety, Quality, Availability, Costs, Morale 2 Assess your implementation level (not, partly or fully implemented) for each of the 10 practices, then sum up corresponding points (0 = not, 1 = partly, 2 = fully implemented) Source: Oliver Wyman © Oliver Wyman www.oliverwyman.com FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales paper_draft_final (3).ppt 30 Content Rolling stock maintenance: A major cost factor for rail operators Oliver Wyman approach to efficient rolling stock maintenance How to unlock the potential of maintenance operations through lean management Oliver Wyman qualifications © Oliver Wyman www.oliverwyman.com FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales paper_draft_final (3).ppt 31 Qualifications of Oliver Wyman Oliver Wyman disposes of comprehensive experience in the fleet management and lean maintenance of railway companies 1 Comprehensive experience in the railway industry Oliver Wyman is one of the leading consulting firms in the transportation industry with in-depth knowledge of the rail industry and its relevant drivers along the entire value chain 2 Extensive experience in rolling stock maintenance optimization Over the past years, we have accumulated significant experience in the field of rolling stock maintenance through projects with many leading European and international rail operators 3 Lean maintenance competences © Oliver Wyman www.oliverwyman.com Oliver Wyman’s Transportation Team disposes of distinct (also railway-related) experience and in-depth know-how in the area of maintenance, fleet / asset management, sourcing, and resource optimization adapting lean principles FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales paper_draft_final (3).ppt 32 © Oliver Wyman www.oliverwyman.com FSMUC1-OPE92101-20091214 Lean Rolling Stock Maintenance_sales paper_draft_final (3).ppt 38