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Littelfuse Lean Enterprise – Doing Lean

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Littelfuse Lean Enterprise – Doing Lean Beyond the lean tool basics: Creating and sustaining a global lean culture Matt Swain Global Director, Enterprise Lean Six Sigma Littelfuse, Inc. Protect Ι Control Ι Sense — A Global Approach ▪ Founded in 1927 Protect ▪ Today’s sophisticated electronics require ▪ Introduced many innovative, greater protection from ESD, power surges industry-first technologies and other occurrences ▪ Handle more power in smaller products ▪ Today ▪ Innovative circuit protection solutions – 10,000+ employees worldwide Control – $1.1 Billion in 2016 net sales ▪ Safely and efficiently control power in even – Publicly held: LFUS (NASDAQ) the harshest environments – More than 40 locations worldwide: ▪ Limit equipment damage and minimize ▪ Americas electrical hazards ▪ Europe ▪ Improve productivity and reduce costs ▪ Asia Sense ▪ Sensing technologies are increasingly used to support complex electronic systems Lean starts here… 2011 in earnest… ▪ Broad platform of technologies help improve product performance, comfort, convenience and safety Strategy and Enterprise Lean Six Sigma Operational Excellence: A Foundational Element of Our Success; Recognized Externally Lean Six Sigma Culture Association for Manufacturing Supplier Quality Excellence Award Excellence Award Manufacturing Littelfuse New Product Excellence Operating Introduction Quality Achievement Award System Supplier Excellence Award Supply Chain M&A Excellence Integration Best Delivery Supplier Quality Supplier Award Award Lean Enterprise 2011 (start) Mark Global Director Lean Enterprise Littelfuse Lean Master Ellen Mike Matt Corp. Lean Leader Corp. Lean Leader Corp. Lean Leader Littelfuse Lean Expert Littelfuse Lean Expert Littelfuse Lean Expert • 4 corporate associates dedicated to lean enterprise • 35 additional semi-dedicated associates globally Littelfuse Lean Enterprise – Doing Lean • Value Stream Maps • A3 • 6S Lean • LSGA • Pull Manufacturing • Flow & Operations • VOC • SIPOC • Standard Work 2012 • More… Littelfuse Lean Enterprise – Doing Lean Lean Manufacturing & Operations 2013 • OEE • Autonomous Total Maintenance • Preventive Productive Maintenance Maintenance • Predictive Maintenance • SMED • More… Littelfuse Lean Enterprise – Doing Lean • VA/VE • 3P • Lean NPD Events Lean Lean • Risk Management Manufacturing New Product • Critical-to-Cost & Operations Development • Critical-to-Quality • More… 2014 Total Productive Maintenance Littelfuse Lean Enterprise – Doing Lean Lean Lean Manufacturing New Product & Operations Development 2015 2016 • DMAIC • DOE Total • Control Plans Productive Six Sigma • FMEA Maintenance • MSE • Correlation • More… Today’s Phases of Training At Start (2011) Now Week A Phase 1: A3, Gemba Guide, Hoshin Kanri, LSW, Tiered Meetings Week B Phase 2: 6S, LSGA, TPM, SMED, OEE, Std Work, Poka Yoke, VOC Week C Phase 3: Coaching, Kaizen, Quality at the Source, SIPOC, TQM, VSM Week D Phase 4: 3P, Little’s Law, Supply Chain, TWI Week E* Phase 5: Heijunka, Muri, Project Management, Pull, Kanban, VA/VE Week F* Phase 6: Lean NPD Six Sigma *Week E started in 2014, Week F started in 2013 Littelfuse Lean Enterprise – Being Lean Lean Lean Manufacturing New Product & Operations Development Total Productive Six Sigma Maintenance Enterprise Lean Six Sigma Today Matt Global Director ELSS Littelfuse Lean Master Ellen Jeff Kevin Global ELSS Manager Global ELSS Leader Global ELSS Manager Littelfuse Lean Master 6-Sigma Master Black Belt 6-Sigma Master Black Belt Edita David Corporate Lean Corporate Lean Leader Admin. 6 -Sigma Master Black Belt Jim Arturas Noe Scott Ray Carlo Regional Lean Lean Manager Regional Lean Regional Lean Regional Lean Lean Manager Manager Manager Manager Manager (Kaunas) (Legnago) (Europe) (North America) (China) (Philippines) 6 Corporate, 6 Regional and 82 ELSS Implementers & Leaders Enterprise Lean Six Sigma Today Matt Global Director ELSS Littelfuse Lean Master Ellen Jeff Kevin Global ELSS Manager Global ELSS Leader Global ELSS Manager Littelfuse Lean Master 6-Sigma Master Black Belt 6-Sigma Master Black Belt Edita David Corporate Lean Corporate Lean Leader Admin. 6 -Sigma Master Black Belt Jim Arturas Noe Scott Ray Carlo Regional Lean Lean Manager Regional Lean Regional Lean Regional Lean Lean Manager Manager Manager Manager Manager (Kaunas) (Legnago) (Europe) (North America) (China) (Philippines) 6 Corporate, 6 Regional and 82 ELSS Implementers & Leaders ELSS = The Littelfuse CI Platform and Basis for LFOS Lean ▪ Dongguan & Suzhou Receive 2017 AME Manufacturing Excellence Awards ▪ Certified Lean Contributors - 832 ▪ Certified Lean Experts - 54 Current ▪ Model Lines 12 of 17 ▪ PFEF 14 of 17 sites participating ▪ TPM 12 of 17 ▪ Lean Manager (Europe) Hired ELSS = The Littelfuse CI Platform and Basis for LFOS Lean ▪ Dongguan & Suzhou Receive 2017 AME Manufacturing Excellence Awards ▪ Certified Lean Contributors - 832 ▪ Certified Lean Experts - 54 Current ▪ Model Lines 12 of 17 ▪ PFEF 14 of 17 sites participating ▪ TPM 12 of 17 ▪ Lean Manager (Europe) Hired ▪ ELSS Guide Revision 6 ▪ Upgrades to Phase 1 – 6 Lean Training ▪ Finalize Corporate Hoshin Cadence Next ▪ Customer Interaction Training for Engineers ELSS = The Littelfuse CI Platform and Basis for LFOS Six Sigma ▪ Yellow Belt Trained: 1619 ▪ Green Belt Trained: 168 ▪ Certifications in Process (77 have passed exam) Current ▪ Black Belt Training 1 Done in China ▪ Master Black Belt Projects in Process ($4.2 Million in Cost Impact) ELSS = The Littelfuse CI Platform and Basis for LFOS Six Sigma ▪ Yellow Belt Trained: 1619 ▪ Green Belt Trained: 168 ▪ Certifications in Process (77 have passed exam) Current ▪ Black Belt Training 1 Done in China ▪ Master Black Belt Projects in Process ($4.2 Million in Cost Impact) ▪ Design for Six Sigma ▪ Limited Upgrade from Minitab to JMP Next ▪ Continue to Develop Regional Six Sigma Expertise ELSS = The Littelfuse CI Platform and Basis for LFOS LFOS ▪ Lean Midyear Assessments Current ▪ Key LFOS Program Manager Role and Lean Leader Position Filled ELSS = The Littelfuse CI Platform and Basis for LFOS LFOS ▪ Lean Midyear Assessments Current ▪ Key LFOS Program Manager Role and Lean Leader Position Filled ▪ Upgrade Global Metric System (GMS) for Ops ▪ LFOS Visual Management Next ▪ Addition of End-of-Year Lean 4.0 Functional Assessments in Addition to Factory Assessments ELSS = The Littelfuse CI Platform and Basis for LFOS Lean Six Sigma LFOS ▪ Dongguan & Suzhou Receive 2017 AME ▪ Yellow Belt Trained: 1619 ▪ Lean Midyear Assessments Manufacturing Excellence Awards ▪ Green Belt Trained: 168 ▪ Certified Lean Contributors - 832 ▪ Certifications in Process (77 ▪ Certified Lean Experts - 54 have passed exam) Current ▪ Model Lines 12 of 17 ▪ Black Belt Training 1 Done in China ▪ PFEF 14 of 17 sites participating ▪ Key LFOS Program Manager ▪ TPM 12 of 17 ▪ Master Black Belt Projects in Role and Lean Leader Position Process ($4.2 Million in Cost ▪ Filled Lean Manager (Europe) Hired Impact) ▪ ELSS Guidebook Revision 6 ▪ Design for Six Sigma ▪ Upgrade Global Metric System (GMS) for Ops ▪ Upgrades to Phase 1 – 6 Lean Training ▪ Limited Upgrade from ▪ LFOS Visual Management ▪ Finalize Corporate Hoshin Cadence Minitab to JMP ▪ ▪ Addition of End-of-Year Lean Next Continue to Develop ▪ Customer Interaction Training for 4.0 Functional Assessments in Engineers Regional Six Sigma Expertise Addition to Factory Assessments Littelfuse Operating System OPERATIONAL EXCELLENCE: EVERYONE, EVERY DAY, EVERYWHERE STRATEGIC OBJECTIVES PRINCIPAL OPERATIONAL CAPABILITIES RESULTS ▪ Customer Satisfaction ▪ Talent Management ▪ Enterprise Lean Six ▪ Safety Incidents ↘ ▪ Flawless Product ▪ 5-Phase Product Sigma ▪ Customer Complaints ↘ Introduction Development ▪ Category Management ▪ On Time Delivery ↗ ▪ Acquisition Integration ▪ Quality Management ▪ Integration Playbook ▪ Cash Conversion Cycle ↘ System ▪ Order to Cash ▪ Information Technology ▪ Productivity ↗ ▪ Centers of Excellence Acceleration ▪ Sales & Operations ▪ Employee Engagement ↗ ▪ Sustainable Pipeline ▪ Corporate Social Planning of Best Talent Responsibility CORPORATE VALUES OPERATIONS VALUES QUALITY VISION CONTINUOUS IMPROVEMENT CULTURE Customer Focus, Results Data Driven, Engaged, Zero Defects. Think Lean. Driven, Teamwork, Integrity, Forward-looking. Zero Excuses. Reduce Variation (6). Innovation. ▪ Enterprise Lean Six Big-impact examples Lean VSM Round 1-6, EBU Six Sigma: Automotive Fuse 1st 6th Measure % Change • High temperature application 160ºC vs. Round round traditional 130ºC Floor Space • Increase safety margin for all automotive -13% (M2) customers Capacity • Prevent risks of terminal relaxation and melted 23% fuses (5 days, 2 shifts) • Design of Experiment applied to analyze effect of Margin 600% variables to gap and forces Productivity 71% (units/hour) IMPACT: Pleased Customer with the NPD process & develop an additional market OEE 65% 89% 37% opportunity with no competition! Cycle Time -32% (seconds) Number of -49% Operators Big-impact examples Lean VSM Round 1-6, SBU Six Sigma: Sensor Product 1st 6th Measure % Change • 30% yield attempting to produce at rate; Round round improved to 95% Floor Space -11% • Applied several experiments to find root (M2) cause(s) Capacity 26% (K/day) Output (EA) 41% per year Productivity 65% (units/hour) Cycle Time -8% (hours) Number of -18% Operators OEE 68% 93% 37% Impact: $3.7M / year （CLIP 3S） Lean 4.0 Assessments (TNM) 10 2016 Year End 9 2017 Lean 4.0 Midyear 8 2017 Lean 4.0 Goal 7 6 5 4 3 2 1 0 Successes • Culture change (doing lean to being lean) • Steering Committee: CEO, CLHRO, SVP Ops, VP Quality
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