World Class Manufacturing

Methods and Tools

for the
Fiat Group Automobiles
Production System
Contents
Tools
4M Technique ………………………………….. 46
Preface ………………………………………………… 4
The reasons for the guide …………………………… 9 5S ……………………………………………….. 48
5W1H …………………………………………… 50
5Whys …………………………………………... 52
WCM and FAPS AM Tag …………………………………………. 54
Mission and World Class Manufacturing ……..……. 12
ABC Classification …………………………….. 56
FAPS
FMEA …………………………………………… 58
Fiat Group Automobiles Production System ….…… 14
Kanban …………………………………………. 60
Methods and tools NVAA …………………………………………… 62
The correspondence matrix …………………………. 18 OPL - One Point Lesson ……………………… 64
Poka Yoke ……………………………………… 66
Methods QA Matrix ………………………………………. 68
Safety ………………………………………………….. 22 QM Matrix ……………………………………… 70
Cost Deployment …………………………………….. 24 Six Sigma ………………………………………. 72
Focused Improvement ………………………………. 26 SMED …………………………………………… 74
Autonomous Activities: ………………………………. 28 Value Stream Map …………………………….. 76
• Autonomous Maintenance (AM) ………………... 28 X Matrix ………………………………………… 78
• Workplace Organization (WO) …………………. 30
Professional Maintenance (PM) ……………………. 32 KPI and Audit System
Quality Control ………………………………….……. 34 KPI System …………………………………….. 82
Logistics and Customer Service …………………… 36 Audit System …………………………………… 84
Early Equipment Management …………………….. 38
People Development …………………………..……. 40
Environment ………………………………………….. 42 WCM Performance Report
Preface

Fiat Group Automobiles has decided to raise its standards to World

Class level, as reflected in the World Class Manufacturing (WCM) route
map. Together with leading European and Japanese experts, we have
defined our Production System that embraces the entire organization of
the factory, involving quality system, maintenance system, cost
management and logistics with an evolutionary perspective.

This system is based on systematic aggression of all types of wastes

and losses, applying methods and standards with rigor and involving
everyone.

We want to be a world-class manufacturer where:

“Loss identification depends on your eyes… • awareness of safety is an essential value
• the voice of the customer is heard in the workshop
people improve their eyes as they learn” • leaders have a passion for standards
• no form of waste is accepted
• methods are applied strictly and tenaciously
Prof. Hajime Yamashina • all faults are made visible
• people involvement is the driving force of change.

The Production System is the basis for your success.

I rely on your efforts to achieve our aim to make it real and to assure
that all the underlying principles of WCM become part of your way of
working for Fiat Group Automobiles.

Manufacturing Management

Stefan Ketter

4 5
FAPS: Production System and WCM The methodological guide
The definition and introduction of the Fiat Group Automobiles To facilitate deployment of this program, I am pleased to present this
Production System (FAPS) is a major innovation program intended to methodological guide to the Fiat Group Automobiles Production
wrought far-reaching changes in our way of producing in order to System to all those who operate in Manufacturing.
achieve World Class Manufacturing (WCM) standards of excellence.
It is a lean collection of methods and tools, indispensable for the
We set the objective to build up a structured system that defines implementation of the Fiat Group Automobiles Production System,
methods and tools able to promote long-lasting, systematic and is intended to:
improvements that eliminate not only waste but also the related • spread use of these methods and tools
sources. • promote sharing of a common language
• reinforce actions intended to improve the competitiveness of our
We have compared our performance with that of other company
manufacturers that have enjoyed considerable success in the • guarantee constant application of the method in time.
automotive sector, in particular, the Toyota system, created by Taiichi
Ohno, which has promoted a sevenfold increase in the productivity of The methods and tools presented in the guide are the offshoot of
the Japanese company in the last 25 years. in-depth discussions with practical and theoretical experts of
international renown, but stem first and foremost from valorization of
We have worked hard inside the company to identify the most our experience, constructed with fatigue, and to which many of you
effective ways of adopting lean systems, applying a structured, have contributed as stakeholders in the change and to whom I would
systematic approach in order to overstep the practice of isolated, often like to express my most sincere thanks.
difficult to repeat improvements.
As in major challenges in the world of sport, important results are the
We finally carried out an improvement route map of Fiat Group direct consequence of a passion for one’s own work: I have no
Automobiles Manufacturing performance to enable all plants to achieve doubt that you will all demonstrate this passion and apply this in
continuously better results. developing and implementing the System in your working
environment.
Effective application of tools and methods is sustained by:
• people involvement: everyone must firmly believe in the entire
program
• investment in their skills, as a key lever for the success of the World Class Manufacturing FGA & Group
overall framework.
Luciano Massone
As indicated by Prof. Yamashina, the resulting cultural change helps
people to see things from a different point of view and to think as men
of action and to act as men of thought.

6 7
Cooperate with us
As always, words tend to acquire greater significance in time, gradually
becoming more specific according to the reference context.
Therefore, the methods and tools proposed in the pages will inevitably
The reasons for the guide
reveal their inadequacy – at least partially – when new challenges are
encountered and as they are widely applied.
However, when this happens, it will be considered a good sign as it
reveals that people have applied their contents as a way of doing things
and of acting. At this point, we will be pleased to draw up new, A guide in order to
subsequent editions of this guide that incorporate your suggestions
based on your experience. contribute to deployment of:
• languages
Our thanks go to the Team that contributed to producing this guide • methods
whose members included Prof. Hajime Yamashina, Francesco • tools
EROICO, Luciano MASSONE, Grzegorz PAWLIKOWSKI, Alessandro for World Class Manufacturing.
PESSI, Stefano ROSSI of Fiat Group Automobiles - World Class
Manufacturing FGA & Groupand Marco GOBETTO, Emanuela
Intended for
BALLOTTA of ISVOR FIAT.
all those involved in Fiat Group
The World Class Manufacturing FGA & GroupTeam invites you to
Automobiles production and logistics
continue your role of stakeholder in implementing the project,
system improvement actions.
participating in our community on the World Class Manufacturing FGA
& Groupsite where you will be able to share your successes and
difficulties, sharing these with your colleagues.

8 9
WCM and FAPS

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Methods
Standards and Tools
Audits
Involvement Safety Standardization
Leadership

11
 WCM
Mission and World Class Manufacturing

E ILFAPS
Mission World Class Manufacturing (WCM)

FAPSand
Fiat Group Automobiles Manufacturing has set itself the Represents the level of excellence of the entire logistic-
objective of improving the performance of the corporate production cycle measured according to the methods
Operating System to a level of excellence able to achieve applied and the performance achieved by best-in-class

ILWCM
World Class competitiveness. companies worldwide.
A goal that can be achieved only through wide-scale people The experience acquired by these companies has lead to the
development and an organization able to: definition of World Class Manufacturing (WCM), based on
the following concepts:
• Total Quality Control (TQC)
• Total Productive Maintenance (TPM)
• attack all types of waste and loss
• involve all those who operate at all levels of • Total Industrial Engineering (TIE)
the organization • Just In Time (JIT).
• apply methods and tools rigorously
• deploy and standardize the results achieved The level reached by each company is certified by external
experts and is achieved through continuous improvement of
performance and constant involvement of all levels of the
company.

Manufacturing thus becomes a formidable competitive Principles

leading edge for the Company, providing a major, long-
lasting contribution to improving Customer Satisfaction. WCM is based on important, challenging principles:
Manufacturing intends to play a decisive role in maximizing
Company performance in its competitive priorities such as:
quality, price, speed of delivery, flexibility and innovation. The • it is introduced and deployed top down with the constant
level of performance to be achieved will change according to commitment of the management
evolution of the market and of competitors and will have to be • it is based on the constant, widespread contribution of all those
redefined periodically with the contribution of all those who who work at the company (and not consultancy driven)
operate on processes and with the decisive involvement of • it is a way of working (and not a project)
equipment and material suppliers. • it is reinforced and developed with the involvement of all
concerned
• it requires methods, tools, standards and rigorous application of
these
• it results in the setting up of a visible, transparent system
• it is effective as it aims to ‘keep it simple’

12 13
FAPS - Fiat Group Automobiles Production System

WCM and FAPS

Definition

An integrated model that optimizes all production-logistic processes The Fiat Group Automobiles Production System aims to achieve
and promotes continuous improvement of essential factors such as significant efficiency and customer satisfaction results, taking as
quality, productivity, safety, delivery. reference the methods applied by best practice competitors,
Application of the system is supported by an Audit System and it is structured and defined in World Class Manufacturing.
structured according to objectives, achievement of which is measured
on the basis of suitable Key Performance Indicators (KPI). Therefore, WCM is both the reference and arrival point of Fiat Group
Automobiles Manufacturing and establishes the standards of
excellence to be achieved when defining the objectives of each
Plant, Operating Unit and ETU and in subsequent assessment of
Purpose performance.

Maximize production system performance in accordance with

logistic plans and defined quality objectives through:
• improvement of processes
• improvement of product quality
• control and gradual reduction of production costs
• flexibility in meeting market and customer requirements
• involvement and motivation of people who operate on industrial
processes.

Main
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The Production System
Methods
Standards and Tools
A structured set of methods and tools applied throughout the
Audits
company, involving all employees, in order to promote a radical
improvement in production system performance, to assure that Involvement Safety Standardization
the product is delivered to the customer by the times and with the Leadership
quality required, also eliminating not value added activities and any
other type of loss or waste of human resources, equipment,
materials and energy.

14 15
METHODS AND
TOOLS

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Leadership

17
METHODS AND TOOLS
The correspondence matrix
The table below shows the main relationships between the methods
described and the operating tools used.

METHODS AND TOOLS

The tools used to apply each method are indicated.

Tools

4M Technique

5S

5W1H
5Whys
AM Tag

ABC Classification

FMEA
Kanban

NVAA
OPL
Poka Yoke

QA Matrix
QM Matrix

Six Sigma
SMED

Value S. Map

X Matrix

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18 19
 METHODS

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Methods
Standard e Strumenti

1. Safety Audit9. Early Equipment

2. Coinvolgimento
Cost Deployment Sicurezza Management
Standardizzazione
3. Focused Improvement Leadership10. People Development
4. Autonomous Maintenance 11. Environment
5. Workplace Organization 12. ….
6. Professional Maintenance
7. Quality Control
8. Logistics/Customer Service

21
Safety

The Seven Steps of Safety

Why it is applied
To meet operators’ requirements, promoting continuous improvement of Step 7 Fully implemented safety management
safety at the workplace.
Step 6 Autonomous safety standards

Step 5 Autonomous inspection

(measures against potential problems)
Its purpose
Step 4 Safety General inspection (education and training of people)
• drastically reduce the number of accidents

METHODS
• develop a culture of prevention as regards safety
Step 3 Initial safety standards (list of all the problems)
• constantly improve workplace ergonomics
• develop specific professional skills
Step 2 Countermeasures and horizontal expansion

Step 1 Accident and related causes analysis

Main activities
• periodic internal audits of safety
• risk identification and assessment
• systematic analysis of accidents Safety assessment levels
• technical improvements to machines and to the workplace
• education, training and control 0. There are no activities to improve safety.
[Link] are an appointed person responsible for safety and an organization including
finance. There are reports of accidents. No substantial reduction of accidents has
been achieved yet.
[Link] time an accident takes place, an accident analysis is made and
countermeasures to avoid a repeat are taken.
[Link] are safety standards, but are not strictly followed by all employees.
Expected results [Link] are responsible for their own safety, and take countermeasures
autonomously against safety problems.
[Link] Lost Time Accidents for the last three years. Proactive approach to safety.
• workplaces improvement Fully implemented Safety Management System. ISO 18000 achieved.
• elimination of conditions for potential accidents

22 23
Cost Deployment
The Seven Steps of Cost Deployment

Why it is applied • Define and apply the improvement plan

Step 7 • Follow-up and restart from step 4
So that the management can apply an effective improvement plan
Step 6 • Estimate improvement costs and corresponding
addressing major causes of losses with maximum effectiveness, reduction of losses and waste
applying the most correct methods with the greatest impact.
Step 5 • Identify methods for recovery of losses and waste
Its purpose
Step 4 • Calculate the costs of losses and waste
• scientifically and systematically address the main items of loss of
the plant production-logistics system Step 3 • Separate root causes of losses from the resulting losses
• quantify potential expected economic benefits
• direct resources and managerial commitment toward activities with

METHODS
• Identify losses and waste from the point of view of quality
the greatest potential Step 2
• Quantify losses and waste according to previous measurements

• Quantify total transformation costs

Main activities Step 1
• Assign cost reduction objectives
• Know total transformation costs by process
• localization of losses (losses/processes matrix)
• identification of sources of losses (source of losses/consequences
Cost Deployment assessment levels
matrix)
• valorization of losses (source of losses/cost matrix) 0. No proper understanding, definitions and measurement of waste and losses.
• selection of methods for eliminating losses (losses/solutions matrix) 1. Waste and losses have been roughly defined and identified. Based on an
• valorization of expected benefits (costs/benefits matrix) approximate translation of waste and losses into cost, some projects and activity
programmes have been created. There is a lack of co-operation between Finance and
Production. The results of improvement activities have not been financially checked .
2. All major waste and losses are identified jointly by the co-operation between
Finance and Production. Waste and losses are almost correctly translated into cost.
Based on the cost deployment, proper projects and programmes are run and good
results obtained. Must be implemented to required standards.
3. Cost deployment matrices of A, B, C, D, and E matrices are correctly used in all the
Expected results major areas and substantial cost reduction has been achieved.
4. Cost deployment is properly used by making G matrix to establish an annual budget
which is correctly followed.
• objective knowledge of the main causes of loss 5. Whatever improvements have been made, there is a philosophy to continuously
• improvement of managerial skills towards clear understanding of seek for opportunities to reduce cost and increase productivity. For this purpose, 30%
priorities and planned management of activities and benefits of the Cost of Conversion is regarded as waste and losses, and efforts are
• improvement of the ability to plan all the skills necessary for continuously made to try to identify such (probably hidden) waste and losses. Each
time waste or losses are reduced, the lessons learned are horizontally expanded to
application of the methods chosen other areas.

24 25
Focused Improvement
The Seven Steps of Focused Improvement

Monitoring and horizontal deployment

Why it is applied Step 7

To eliminate the main wastes and losses identified previously Step 6 Costs/benefits analysis
through Cost Deployment, to avoid dedicating commitment and
resources to non-priority problems and to create know how to Step 5 Project activities with identification of the correct method
attack each specific loss.
Project Team:
• Line manager (Leader)
Its purpose Step 4 • Production Engineering
• Design
• drastically reduce major production losses, • Maintenance
• Others
eliminating process inefficiencies
• eliminate non-value added activities in order to increase

METHODS
Step 3 • Selection of the theme
product cost competitiveness • Preparation of the plan and deployment
• develop specific professional problem-solving skills
Step 2 Stratification of losses

Definition of the area or model machine

Step 1 • Bottleneck processes
Main activities • Major Losses

• define the activities to be carried out, objectives and

Focused Improvement assessment levels
resources for project implementation
• train the groups and monitor project progress
• implement the projects 0. There are no projects or programmes based on Cost Deployment. All the projects are
chosen ad hoc, and no systematic approach or a proper method is used.
• provide the groups with the necessary specialist support 1. There is a system to choose subjects for Focused Improvement but no proper cost and
• certify and actualize results benefit analysis is made. There is no system to horizontally expand the knowledge gained
after each Focused Improvement.
2. Based on Cost Deployment, proper subjects for Focused Improvement have been
selected. Based on the needs of the Focused Improvement, a proper cross-functional
Expected results team is formed. Knowledge to reduce or eliminate waste and losses are created step by
step.
3. There is substantial knowledge to eliminate or reduce waste and losses.
A significant reduction of costs through: 4. The various tools of intermediate and advanced levels such as PPA and DOE are
• improvement of overall equipment effectiveness (OEE) utilized to attack and solve difficult problems which have been left unattended. The
• reduction of set-up times lessons learned are horizontally expanded to others.
• reduction of waste 5. There is a system to continuously increase the in-house knowledge to reduce or
eliminate all possible (and probably hidden ) waste and losses. The knowledge is
• professional growth and acquisition of the method horizontally expanded.
• development of a wide-spread improvement-driven attitude.

26 27
Autonomous Activities - Autonomous Maintenance (AM)

The Seven Steps of Autonomous Maintenance

Why it is applied
Step 7 Full-scale application of the Autonomous Maintenance
• because equipment is often in deteriorated conditions
• because machine efficiency does not comply with objectives system
• because people’s motivation can certainly be improved Step 6 Improvement of standards

Step 5 Autonomous inspection

Its purpose
Step 4 General inspection
Improve the global efficiency of the production system:
• stopping accelerated deterioration and restoring and maintaining basic

METHODS
Step 3 Initial standard
conditions
• involving people
Step 2 Measures against sources of contamination
• improving product and equipment knowledge.

Step 1 Initial cleaning and inspection

Main activities
• creation of the teams, training and preparation for the activity
• initial cleaning (cleaning for inspection and for knowledge) Autonomous Maintenance assessment levels
• elimination of sources of contamination and inaccessible areas
• definition and application of efficient, sustainable cleaning, inspection, 0. There are no activities to involve operators in daily maintenance and
improvement.
lubrication and re-tightening cycles
1. Model machines for AM from the AA machines of which breakdown losses are the
• improvement of inspection methods through development of operators’ major ones due to the lack of basic conditions, have been chosen and Step 1 ~ Step 3
skills have been implemented to correct standards. A system for auditing that the steps have
• focus operators’ activities also through product quality control been correctly followed is in place.
2. Step 4 for model machines. Step 1 ~ Step 3 for all AA class machines have been
completed. Cost and benefit analysis proves benefit of AM.
3. Step 5 for the model machines. Step 1 ~ Step 4 to all AA class machines. Step 1 ~
Expected results Step 3 to A class machines.
4 Step 6 for model machines. Step 5 for AA class machines. Step 1 ~ Step 4 to ( AA +
• improvement of overall equipment efficiency (OEE) A) class machines.
and of product quality 5. Step 7 for model machines. Step 6 for AA class machines. Step 1 ~ Step 5 for ( AA +
• extension of the useful life of the equipment A ) class machines. Autonomy starts to take place from model machines, gradually A
• improvement of climate, motivation and proactiveness class machines and then up to B class machines.

28 29
Autonomous Activities - Workplace Organization (WO)

The Seven Steps of Workplace Organization

Why it is applied Standard work sequences

Step 7

• because workplaces, materials and equipment are often downgraded,

dirty and untidy Step 6 Improvement of standards
• because product quality is obtained with too many inspections and
reworking Step 5 JIT supply of materials
• because people’s motivation can certainly be improved
Step 4 Training in product characteristics
Its purpose
Step 3 Initial standards
Improve production efficiency and productivity:

METHODS
• restoring and maintaining basic conditions
Step 2 Re-organize the process
• eliminating non-value added activities
• operators involvement
• improving product and equipment knowledge. Step 1 Initial cleaning

Main activities
Workplace Organization assessment levels
• setting up of the teams, training and preparation for the activity
• elimination of everything that is not necessary, tidying and cleaning
• definition and application of maintenance cycles 0. There are no activities to involve operators in daily assembly work improvement.
• analysis and elimination of non-value added activities 1. Model areas for AA from the AA areas of which losses such as idleness, walking,
• improvement of work cycles and of product quality through development transportation, searching, setup and adjustment, and production of defectives are
substantial due to the lack of proper work place organization, have been chosen and
of operators’ skills
Step 1 ~ Step 3 have been implemented to correct standards. A system for auditing
that the steps have been correctly followed is in place.
2. Step 4 for model areas. Step 1 ~ Step 3 for all AA class areas have been completed.
Expected results Cost and benefit analysis proves benefit of AA.
3. Step 5 for the model areas. Step 1 ~ Step 4 to all AA class machines. Step 1 ~ Step
3 to A class areas.
• elimination of labour and material losses 4. Step 6 for model areas. Step 5 for AA class areas. Step 1 ~ Step 4 to ( AA + A) class
• improvement of product quality through application of a sturdy, areas.
error-proof process 5. Step 7 for model areas. Step 6 for AA class areas. Step 1 ~ Step 5 for ( AA + A )
• improvement of productivity and process costs reduction class areas. Autonomy starts to take place from model areas, gradually A class areas
• ergonomics and safety on the job and then up to B class areas.
• improvement of climate, motivation and proactiveness

30 31
Professional Maintenance (PM)
The Seven Steps of Professional Maintenance
• Management of maintenance costs
Step 7
• Construction of a planned maintenance system
Why it is applied
Step 6 Construction of a predictive maintenance system
• because there is a high number of breakdowns (trend management)
• because no systematic Preventive Maintenance activities are
Step 5 Construction of a periodic maintenance system
carried out
• because stoppages are seldom analyzed
Step 4 Measures addressing weak points of the machines and
• because there is little cooperation between operators and
maintenance staff extension of the average life of components

Step 3 Definition of maintenance standards

Its purpose
• Faults analysis

METHODS
Step 2
• increase machine efficiency (increase MTBF - reduce MTTR) by • Recovery and reversal of deterioration
improving maintenance skills and using Fault Analysis techniques
• facilitate cooperation between operators and maintenance staff in Step 1
Elimination and prevention of accelerated deterioration
order to achieve Autonomous Maintenance objectives

Main activities Professional Maintenance assessment levels

• deployment, control and breakdowns analysis 0. Mainly Breakdown Maintenance is practiced. No measurement of MTBF and
• improvement of maintenance staff skills MTTR of the major machines
• improve Planned Maintenance schedules to reduce costs 1. Model machines for Professional Maintenance have been chosen and Step 1 ~
• support of operators engaged in Autonomous Maintenance Step 3 have been implemented. Steps 1 ~ 3 must be fully implemented to correct
(elimination of tags and improvement of cleaning, inspection and standards. Each step is audited before moving onto the next step. There are machine
ledgers for the machines. MTBF and MTTR of the major components of the machines
lubrication skills) are measured.
• application of new maintenance techniques 2. Step 4 ~ Step 5 to model machines. Step 1 ~ Step 3 to AA class machines. From
broken components, the lessons learned are horizontally applied to the similar
Expected results components under similar condition.
3. There is a clear logical linkage between AM and PM activities and shutdown
maintenance. For those AA machines which are not covered by AM and /or PM,
• reduction of machine faults component maintenance is practiced.
• improved Overall Equipment Effectiveness (OEE) 4. Step 6 for model machines. From Time Based Maintenance to Condition Based
• increase in the percentage of Planned Maintenance Monitoring. Step 5 for AA class machines. Step 1 ~ Step 4 for A class machines
• definition of a Preventive Maintenance plan 5. Step 7 for model machines. Step 6 for AA class machines. Step 1 ~ Step 5 to A
• motivation and professional growth of maintenance staff class machines.
• improved cooperation between operators and maintenance staff

32 33
Quality Control
The Seven Steps of Quality Control

Step 7 Improvement of methods to maintain zero defect conditions

Why it is applied
Step 6 Maintenance of suitable conditions for zero defects
• because customer satisfaction is not appropriate
• because sometimes faulty products reach customers Step 5 Identification of suitable conditions for zero defects
• because reject and reworking costs are high Step 4 Reduction and removal of all possible reasons for chronic losses

Its purpose Step 3 Analysis of chronic loss factors

Step 2 Restoration and improvement of operating standards

• guarantee product quality for customers, minimizing costs
• define production process conditions able to prevent occurrence of non- Step 1
Study of current condition
conformities

METHODS
• maintain the conditions defined in order to guarantee conformity in time
• improve operators’ problem solving knowledge
Quality Control assessment levels

Main activities 0. No proper Quality Control is practiced. Based on inspection the good and rejects are
sorted out. No measurement of Cp, Cpk.
1. Based on QA matrix, model processes for Quality Control have been chosen, and 4M
• deployment of defects, reworking and rejects in order to analyze the analysis at critical process areas is applied properly. Step 1 ~ Step 4 have been
origin of non -conformities (QA matrix) implemented. The results improve Quality Control giving benefits. Cp, Cpk are
• definition of operating conditions able to guarantee the quality desired measured.
and process capability (QM matrix) 2. Step 5 to the model processes. Five questions for zero defects are raised at the
• set-up, training and management of improvement teams critical processing point to identify root causes of quality problems. Conditions for zero
defects are known for more than 40 percent of the quality problems and operating
• compilation of the X matrix and definition of Q Points and of prevention standards are well established for them. Step 1 ~ Step 4 to AA class processes for
and maintenance cycles (capital-intensive areas) improving quality.
• definition of Standard Operating Procedures – SOP (labour-intensive 3. PPA is applied at the critical processing points to determine unknown causes of
areas) quality problems. For equipment related quality problems, X-matrix and QA-matrix are
made to establish operating standards. For human errors, SOP is well established in
case of lack of Knowledge and skills. Fool proof devices are extensively used in case of
absent-mindedness, forgetfulness, carelessness, inattention, etc.
Expected results 4. Step 6 for model processes. To identify quality factors, DOE and/or Taguchi Methods
are applied to those quality problems which proved to be difficult to analyze even by
PPA. Analysis of variance is applied to identify the contribution rate of each factor. For
• improved customer satisfaction major quality factors, control charts are used to control quality not by results but by
• a significant reduction in defects, rejects and reworking and therefore in causes. Step 4 to Step 5 for AA class processes. Step 1 ~ Step 3 for A class machines.
the costs of non quality The approach is moving from preventive to proactive.
5. Step 7 for model processes. The approach is proactive. The process is well
• deployment of quality improvement skills stabilized and under full process control. Step 6 for AA class processes. Step 4 ~ Step 5
• increase in product quality improvement proposals for A class processes.

34 35
Logistics/Customer Service
The seven steps of Logistics/Customer Service

Step 7 Adopt pre-established sequence-time planning

Why it is applied
Step 6 Integrate the sales network, manufacturing and purchasing
• because stocks of material at the plant are high with heavy financial
charges Step 5 Fine-tune internal and external logistics
• because there is a considerable risk of damage and obsolescence also
due to the condition of the containers and the need for sequencing Level production
Step 4
• because production has to be rescheduled frequently due to shortage of
materials
Step 3 Redefine external logistics

Its purpose Step 2 Redefine internal logistics

METHODS
• establish JIT conditions inside the plant and with suppliers
Step 1 Re-engineer the lines to satisfy customers
• considerably reduce stock levels
• level volumes and production mix and improve line saturation
• minimize internal handling, also with direct deliveries by suppliers to the Logistics/Customer Service assessment levels (*)
assembly lines 0. No synchronization between Sales, Manufacturing and Materials Handling. High stock
• integrate the sales networks, manufacturing and purchasing levels also due to absence of JIT and use of conventional handling methods. The
principle of reducing handling is not fully understood and applied
1. Assembly produces according to effective orders and receives materials in an
Main activities organized manner. The Bodyshop produces the main sub-assembles with a cell type
system in order to reduce Lead Times and to minimize handling. Synchronization
between Press Shop and Bodyshop.
• application of the Value Stream Map to identify losses and opportunities 2. Activities to create a flow through the entire plant. Shared internal handling and
• improvement of the internal and external logistics transport is applied. Synchronization between Materials Management and Assembly.
• redesign packaging systems Suppliers deliver directly to the line. FIFO is applied.
3. Sales Management tries to sell vehicles continuously in order to level production and
• deployment of the main materials handling methods (synchronous JIT, create a homogeneous flow in the entire plant. Internal and external logistics minimize
Kanban, two bins system, FIFO, shared external transport, etc.) handling and improve Visual Factory. Synchronized production for most parts produced
internally. FIFO applied for many materials. Stocks in Assembly for bulky, expensive
materials with many variants: max 2hrs.
4. Integrated Sales, Distribution, Manufacturing and Materials Handling functions in order
Expected results to create a precise flow from receipt of order to delivery. FIFO applied to most materials.
Stock turnaround > 25. Stocks in Assembly for bulky, expensive materials with many
• prompt filling of orders variants: max 1hr.
5. Rigid sequence programming in the entire plant. Complete synchronization between
• reduction of stocks and work in process
Sales, Distribution, Manufacturing and Materials Handling. Lead Time from receipt of
• reduction of damage and obsolescence of materials order to delivery to the network: 5 days. Minimum handling. FIFO always applied. Stock
• improvement of plant logistics skills turnaround > 40. Stocks in Assembly for bulky, expensive materials with many variants:
max 30’.
(*) short version – see Audit Manual

36 37
Early Equipment Management
The seven steps of EEM (*)

Step 7 Start-up (Design Review 7)

Why it is applied Step 6 Production tests and inspections (Design Review 6)

• because new equipment start-up times are often longer than Step 5 Installation (Design Review 5)
expected
• because equipment is not designed to optimize operational
Step 4 Construction (Design Review 4)
running costs
Step 3 Detailed design (Design Review 3)
Its purpose
Step 2 Drafting of outline project (Design Review 2)

METHODS
• start new equipment in the defined time
• guarantee fast, stable start-up
Step 1
• reduce Life Cycle Cost (LCC) Planning (Design Review 1)
• design equipment that is easy to operate, maintain and inspect (*) short version – see Audit Manual

Main activities Early Equipment Management assessment levels

0. There is no system to create production and maintenance friendly equipment.

• formal insertion of EEM in the product development process
through specific design reviews 1. 1st trial of EEM by the introduction of an EEM system. Still substantial modifications
• definition of quotes and specifications of supply consistent with are needed. The machine has many design weaknesses.
user’s needs (operation, maintenance, inspection, disposal)
• co-design initiatives 2. Several trials of EEM continuously refining the EEM system. Fewer modifications are
needed. The equipment is not perfect and has still many design weaknesses.

3. The EEM systems have good check lists based on the plant experiences at various
Expected results stages from concept to full production to avoid unnecessary design changes and
modifications. It also specifies the person in charge, the necessary documents, etc., at
each design review stage.
• reduced life costs of the equipment
• reliable, maintainable, accessible, easy to operate, inspect, clean, 4. Good experiences of EEM. Capable to guiding and coaching equipment suppliers.
low noise equipment Only some minor problems are left at the time of full production. The system moves from
preventive to proactive.
• definition of economically sustainable Preventive Maintenance
cycles in the design phase 5. There is a good EEM system to guarantee Quality, Cost and Delivery. To assure
• fast set-up and start-up quality by equipment, five questions for zero defect are carefully checked. Ease of
• high product quality operation and maintenance. Each time any major investment is made, the EEM system is
refined.

38 39
People Development
The seven steps of People Development

Why it is applied Step 7 Continuous assessment

• because skills and methods of work are often unable to guarantee Step 6 Specific and elective skills
error-free operations
• because of shortcomings in the skills assessment and improvement Step 5 Establish a system for improvement and upgrading
system
Establish a suitable training system for improvement
• because knowledge and motivation to improve are insufficient Step 4
of skills and for identification of experts
• to enable the development of the required skills to support the
improvement projects Step 3
Implement team skills improvement projects

Step 2 Establish an initial training system for improvement of skills

Its purpose
Step 1 Define principles and priorities

METHODS
• provide correct knowledge and skills for each workplace through a
structured training system
• develop the roles of maintenance technician, technologist, specialist
as the main agents of training
• assure simple, effective documentation of knowledge and operating People Development assessment levels
skills owned and developed that are to be deployed and maintained
0. No system to evaluate required knowledge and skills of each employee, and actual
levels of their knowledge and skills.
Main activities
1. There is a rough evaluation system for checking required knowledge and skills of
production employees, but no measurement system for checking their actual knowledge
• mapping of skills required and possessed and skills.
• analysis of gaps and definition of training plans
• development of tools (4M, AM tags, OPL…) and training skills 2. There is a reasonable evaluation system for checking required knowledge and skills
• setting up of the Training Center with the necessary materials and of all employees including the plant manager, and a measuring system for checking their
equipment actual knowledge and skills. Gap analysis is made, but education and training are
carried out ad hoc. No financial evaluation of losses due to lack of knowledge and skills.

Expected results 3. There is a systematic education and training system, for minimizing the gap between
the required knowledge and skills of each employee, and their actual knowledge and
• application of Quality Control for effective process control by skills. The cost of education, training and the costs caused by lack of knowledge and
operators: improvement of quality skills are continuously followed up. Evaluation system to be applied across entire plant.
• good maintenance skills: improvement of efficiency
• application of Autonomous Maintenance: knowledge and application 4. There is continuous effort to make education and training as efficient and effective as
of cleaning, inspection and lubrication by operators possible. Employees are willing to make improvements.
• zero human errors: application and deployment of error-proofing
techniques (Poka Yoke) 5. There is a systematic education and training programme to create competent human
• reduction of the risk of accidents resources at every level such that the company can be continuously developed into a
• improvement of climate and motivation World Class one. People are highly motivated to take on additional skills

40 41
Environment
The seven steps of the Environment
• Full-scale application of the Environment Management System in
Step 7 order to create a model plant as regards the environment

Why it is applied • Establish a system for reduction of environment impact and for
reduction of environmental risk
Step 6
• Reduce environment impact in logistics
To meet the needs of operators and of civil society, guaranteeing • Pursue a green procurement policy
correct management of the environment. • Establish an Environment Management System (EMS) combined with
Step 5 a supporting system such as environmental auditing
• Adopt an operating and reporting system

• Control chemical substances

Step 4
Its purpose • Save resources
• Save energy

• comply with environmental management requirements and • Prepare temporary standards.

Step 3
regulations • Expand the knowledge created in Step 2 horizontally

METHODS
• Establish a top management audit system
• develop a culture of prevention as regards the environment
Step 2
• continuously improve the conditions of the working environment, • Take measures to combat sources of contamination
also over and above regulatory and legal obligations • Understand local legislation and rules on the environment and their trends
Step 1
• develop specific professional skills
Environment assessment levels
Main activities 0. The management is not well aware of the local laws and regulations on environments and their
trends. There is no clear vision on environmental issues and no time and budget allocated for
environmental improvements.
• periodic internal audits on the impact of the factory on the 1. There is an appointed person responsible for the environmental improvements and an organization
surrounding environment including finance. There is a vision on the environmental issues and leadership by the top
management toward environmental improvements. The top knows what environmental issues the
• identification and prevention of risks plant must deal with currently and deploy them into action programmes with the necessary budget.
• application of ISO 14000 standards 2. There exists an education system to nurture employees on environmental issues and risk
• technical improvements to equipment management. All the input items to the plant and output ones at the plant are clearly located and
quantified. All major internal and external environmental issues are clearly identified and visualized as
• training, education and control in a noise map, a dust map, risk maps, environmental load maps, etc. Based on the deployments of
environmental issues, proper projects and programmes are run and good results obtained. Must be
implemented to required standards.
3. An EMS focusing on manufacturing and internal logistics and self auditing system are available.
Required standards are met by the current environmental activities and environmental issues the
Expected results plant must deal with in long and medium terms are well understood and deployed into action
programmes with the necessary budget.
4. All the major areas on environmental issues are managed under the EMS and a substantial
• reduction in energy consumption improvement has been achieved. Almost no pollution problems exist. There exist supporting systems
• reduction in the generation of polluting substances and noise such as environmental accounting and reporting system. External benchmarking with competitors has
been made and the plant manages far better than the competitors. Ready for applying or already got
• increase in the amount of material recycled an external certification such as ISO 14000.
• improvement of the working environment 5. There exist well established systems for environmental load reduction, operating system,
• elimination of the conditions for potential environmental accidents environment risk reduction and they are all actively working well. There is a philosophy to
continuously seek for opportunities for better environments.

42 43
 TOOLS

Ma
n

int
tio

em
Lo
za

ena
i gi

yst
an st

nce
g ic
or

yS
e Sy
ac st

Sy
alit
pl em

ste
k
or

Qu

m
W

Metodologie
Methods

Standard Audit
& Tools
Standard
Standard Tools
Coinvolgimento Sicurezza Standardizzazione
• GAV
• ETUdi Visual
Ute Factory • 4M Technique • OPL - One Point Lesson
Leadership
• GAV di Dominio
• Domain Visual Factory • 5S • Poka Yoke
• Ute
• Box di Box
ute • 5W1H • QA Matrix
• Shopfloor painting
• Colorazioni officina • 5Whys • QM Matrix
• Shopfloor training area
• Area trainingpyramid
in officina • AM Tag • Six Sigma
• Heinrich’s
• Piramide di Heinrich
• Green Cross • Equipment ABC Prioritization • SMED
• Croce Verde
• Material feeding • FMEA • Value Stream Map
• ……………..
• Material feeding • Kanban • X Matrix
•……………….. • NVAA

45
4M Technique (Machine – Material – Method – Man)
Definition Application phases
A tool used to analyze a phenomenon by making a list of possible The steps in compiling the diagram are:
factors (causes, contributory causes, sub-causes) at the origin of the • define and specify the effect encountered, the problem studied, the
phenomenon (effect) and subsequently organizing the factors listed predefined objective
in categories. • use Brainstorming to list all possible causes of the effect
• identify the categories / families of factors, elements and causes
Its purpose that may contribute to generating the effect considered
• identify the sub-causes (causes of the causes) that may contribute
Represent the concept of relationship and cause. to causing the effect and insert these appropriately along the
The most widely-used 4Ms technique is the one developed by branch of the area you are concentrating on
Ishikawa (fishbone diagram): its diffusion has been promoted by its • continue searching for components in the cause-effect sequences
intrinsic ability to steer the work group towards stratification of the until you reach the cause that has given rise to the problem
factors into broader categories. • carefully check the validity of the cause-effect sequences adopting
To classify the causes of a problem, Ishikawa proposed, as general the same approach.
method, that of the four Ms:
Method - Material - Man – Machine.
In some cases, the Environment, Measurement, Management
(management factors) or Market (customers – competitors) are An example
added.
Time Environment Method Man

TOOLS
Method of application
Chaoticity Knowledge of the
operating context Relationships
The 4Ms technique (also known as Cause-Effect diagram) is an between
Misshapen different
Logistics
instrument that promotes high level aggregation of a multi- Various assemblies
limited none professions
disciplinary work team and can be used in all phases of the PDCA require- Cooperation
ments for Constantly Procedure Limited or none
cycle: reply times changing Culture of the user
limited none
• in the diagnostic phase, to generate possible theories regarding Irrational Not
the causes of a deviation formalized Lack of resources
• in the decision-making phase, to generate possible solutions and Relationship with
to assess the risks of the solutions Not updated issuing unit /
• in the planning phase, to forecast potential problems. departments
Limited
Information leadership
not in Explanatory
The 4Ms diagram must resemble a ‘large tree with branches’. network material Limited knowledge
The effect considered must represent an identifiable, measurable
objective. Missing
Machine
Machines Material Role of Urp
Do not confuse the effect with the problem (symptom - disease).

46 47
5S
Definition Activities

This is the name of a workplace improvement method developed in

Japan.
The 5 S are the initials of the Japanese words that express the basic
concepts of the method.

• Seiri: sort
• Seiton: set
• Seiso: shine
• Seiketzu: standardize SET
• Shitzuke: sustain

Its purpose

• instill a general mental attitude keeping the workplace clean and tidy, SHINE
making minor but continuous improvements to working conditions
• improve productivity and quality, reducing search times and non
value added activities ‘A place for everything and

TOOLS
SORT everything in its place’
• reduction of searching times
• reduction of quality problems
• creation of a safer, more comfortable
environment
• involvement of everybody in improvement
activities

Method of application
The 5 ‘S’ approach is: STANDARDIZE
SUSTAIN
• methodical: it defines principles and rules to be applied
• permanent: must be constantly applied to guarantee good results

48 49
5W1H

Definition
• Who is doing it
A logical analysis tool used in quality improvement techniques in

Who?
• Who should do it?
order to guarantee that a problem or topic under discussion is
• Who else could do it?
analyzed taking a complete view of all its essential aspects: Who,
• Who else should do it?
What, Where When, Why, How.
• What must be done?

What?
• What should be done?
• What else could be done?
• What else should be done?
• Why is that person doing it?
• Why do it?

Why?
‘I keep six honest serving men
• Why do it there?
They taught me all I know
• Why do it then?
Their names are WHO and WHAT and WHY and WHERE
• Why do it in that way?
and WHEN and WHO’.
• Where must it be done?

Where?
• Where it is being done?
From ‘Just So Stories’ by Rudyard Kipling
• Where should it be done?

TOOLS
• Where else could it be done?
• Where else should it be done?
• When was it to be done?

When?
• When should be done?
• When else could it be done?
Method of application • When else should it be done?
• How is it done?
The 5W1H help to understand specific circumstances each time a • How is it being done?

How?
deeper comprehension is necessary. They help to focus on key • How should it be done?
problems. • How else could it be done?
These questions can be used at several levels according to the • How else should it be done?
depth of inquiry to be achieved.

50 51
5 WHYS
Definition The steps
A Problem-solving tool intended to trace the root causes of an
abnormal phenomenon through a consecutive set of questions
(whys) which must be answered.
Stopping at the first why’s, there is a risk of not tracing the real
cause of the problem.

It is applied in:
• breakdowns analysis
• analysis of sporadic defects
• analysis of chronic losses due to specific causes.

Its purpose
• identify the ‘root’ cause of a specific problem so as to eliminate it
completely
• get people used to asking themselves questions and finding
answers, i.e. using their own intelligence. One of the many An example

TOOLS
definitions of intelligence is in fact the ability to ask oneself and
answer questions Topic analyzed: MICRO STOPPAGES GRINDING "LANDIS" Tg. 735217
PROBLEM 1st Why 2nd why 3rd why 4th why 5th why ACTION
Cycle does not ‘Flange forward’ Pins do not enter Insufficient Set minimum
start due to fault sensor does not the holes ‘slow’ rotation to slow rotation
in the feed unit enable the cycle find holes values (2 turns
Points requiring particular attention instead of 0.5)

Insufficient push Use springs with

• go into minimum details in order to establish the root cause of springs higher load

(there are no limits on the levels) Insertion more Round the

• precisely describe all the causes (even those that prove to be difficult in
threaded holes
contact surfaces
of the feed pins
incorrect) and actions (even those that it is decided not to apply) (smaller diameter)

to keep control of the analyses made In the case of

random Set a rotation in
• use data rather than generic expressions positioning of the the opposite
direction to the
feed units on the
• for each cause, identify actions that will eliminate these for ever chamfer, the part Slow rotation in
one direction only
feed unit if the
is pulled instead pins are not
of remaining still, inserted after
so that the pins searching for the
are not inserted holes

52 53
AM Tag
Definition An example Date:
Nr.

Name:
Equipm.:
A suitably compiled cardboard tag attached to the machine close to any Zone:
defect that has been detected. Leader:

Defects are usually tagged during the initial phases of Autonomous

Activities, during specific stoppages for inspection and cleaning. However, DEFECT TAG
tagging of defects is a continuous activity carried out each time the Oil leak High/low pressure
operator or maintenance technician identifies a problem that cannot be Water leak Noise
solved immediately or which tends to reoccur. Air leak Faulty part
Grease leak Irregular functioning

Its purpose Leakage of granules/chips Difficult to clean

Powder leak Part that can be improved
No working range Missing screw/bolt
Make visible any defects, deterioration, excess noise, missing
Difficulty of lubrication Sheath loose
components, sources of dirt, inaccessible areas, risks for operator safety High/low temperature Vibration
or for product quality.
Other defects:

Method of application Use the back for any suggestions

Repair carried out on

The Tag is compiled by the person who has identified the problem and
Time taken SIGNATURE
consists of 2 copies:
• the first is inserted in the specific pocket on the board for subsequent

TOOLS
recording, analysis and action planning TYPE OF DEFECT (classification of the tags)

• the second remains on the machine close to the defect until the Machine Mechanical Electrical Pneumatic Hydraulic
problem has been definitively solved. 1 ...
2 ...
3 ...

Points requiring particular attention 

 

 

TIME
TAGS
  


$
 

 


PROGRESSIVE
1. Highlight machine problems of any type even if they appear to be trivial NUMBER OF ISSUED
TAGS
2. Fill in the tag writing clearly all the necessary data to facilitate the 

subsequent analysis phase "
#
Measurement of the

 
quantity of tags to remove
3. Attach the tag beside the defect. If the problem affects a mobile part Measurement
"!! # of
the
‘readyness ’ of the

 


!!
of the machine, attach it as close as possible system in applying


the improvement   


 
 

PROGRESSIVE
4. Record the data in the forms to be indicated on the board NUMBER OF SOLVED
TAGS

WEEKS
 


54 55
ABC Classification
Definition An example

Tool used to classify equipment according to priority in order to optimize Classification Description Nr. Item Score assignment
the use of maintenance resources (human and economic). guidelines
Mean Time to Repair
calculated according to Mean Time to
Time to Repair the failure data 1 Repair >1day = 35, <0.5 hours = 5
(T) collection system
Its purpose (ticket; etc.)
(MTTR)

Use of the
2 >100% = 5 <60% = 1
Align maintenance priority with company objectives according to Cost Machine/Equipment

Deployment. Effect on product

Effect quality KPI > 10% = 5; no
3 quality (quality KPI)
effect = 0
Identify the most critical machines for the plant as they have a significant
Costs of non quality
impact on safety, product quality, maintenance costs, energy consum- 4 (Returns from >
2,500 = 5,
250 = 1
ption, on the environment and on the performance of the entire pro- Effect on other
Customer)

duction process with, at the same time, a high coefficient of use. Gravity (G)
machines/equipment 5 Losses of Energy >
4,000 = 5,
250 = 1
in terms of safety;
production; 0.1% of the production loss of the
environment; costs. Line = 5
Impact on
6 < 0.01% of the production loss of the
production
Method of application Line =1
Impact of the failure
High risk for the personnel = 5,
7 on the safety of
• define and list all the machines, using a worksheet persons No risk = 1

• classify the machines using the TGPC method: Impact of the failure

TOOLS
High risk for the environment = 5,
8 on the environment
T – Time to Repair moderate effect = 1

G – Gravity Mean Time Between

Faults based on past
P – Probability of Failure Probability of data (if available) - Frequency of
9 MTBF >4/month = 35, <1/month =
C – Critical impact Failure (P) MTBF stoppage due to the
5
failure
• divide the machines into 4 classes according to the results of the
analysis: 20 = Has no impact on the
line/process
>95% Class AA
40 = has an impact on the line
80%-95% Class A Based on the critical < 24hours
20%-80% Class B Critical nature of
impact of the Critical impact of the
equipment as regards 10 equipment as 60 = has an impact on the line
< 20% Class C the plant (C) consequent line regards consequent > 24hours
• check consistency of the results of the classification with Cost stoppages line stoppages 80 = has an impact on more than
one line < 24hours
Deployment. The result must be balanced with its related valuation so
100 = has an impact on more than
that the work team concentrates only on equipment with a significant one line > 24hours
loss or which is critical for business.
T + G + P + C = Plant Priority Score

56 57
FMEA - Failure Mode and Effects Analysis
Definition The steps of the method

A preventive product or process analysis technique used to define, • form the team
identity and eliminate ‘failures’, problems and errors before it is too • collect and analyze the information
late and therefore too expensive. • identify the product or process to be analyzed
• identify the functions for each product or process to be analyzed
• identify failure modes (deterioration of functioning and product
For each ‘failure’, it is possible to estimate: faults respectively)
• the effect of the ‘failure’ on the system • identify the effects of each failure mode (from the point of view of
• the probability that the ‘failure’ will occur both the external and internal customer)
• the means available to detect that a ‘failure’ has • trace, organize and list the causes of the failure modes
occurred. • describe the control measures planned
• quantify the probability of occurrence of the causes of each failure
Its purpose mode (p)
• quantify the severity of the effects of the failure modes (g)
• prevent potential product and production process failures,
• quantify the possibility of recording failure modes (r) in the case in
reducing as far as possible their effects on the company and
which these occur
customer
• calculate the associated risk (calculation of the probability of risk
• identify and highlight critical product/process parameters
index: pgr = p x g x r)
characteristics in order to permit suitable management during
• list in order of priority and assign corrective actions
manufacture and customer assistance
• apply corrective actions and re-assess risk (calculation of the new

TOOLS
pgr)
• distribute, review and update the analysis
• identification of weak points in safety, reliability,
manufacturing technology
• reduction of the number of product or
production equipment modifications
• reduction of the cost of any modifications Where it is applied
• reduction of new product development times
• reduction of warranty assistance costs • Project FMEA: on components or parts of components
• reduction of the costs of internal production • Process FMEA: on process operations and equipment
failures (costs of non quality) • Production equipment FMEA: on components of machinery,
• lower risk as regards the manufacturer’s equipment and tools
objective liability
• improved customer satisfaction

58 59
Kanban
Definition Application phases
An extremely simplified production planning and regulation tool. Definition of the model
Kanban works back from the downstream to the upstream • code the materials
processes, dimensioning production flow and sorting the processes • define the Kanban code numbers
required according to a Pull type approach. Each workstation, pulling • scale stocks
what it needs from the inter-operational deposit, authorizes the • record and define procurement times
upstream workstation to reintegrate what has been pulled. • define the type of containers
Kanban is an instrument for communicating requirements through the
various processes according to which nothing must be produced (or Definition of procedures
procured) by a workstation (or supplier) except in the case of a • draft procedures according to the results of the analysis
precise requirement physically signaled by a downstream workstation • provide the cards
(customer). • activate the procedure for supply of container racks

Pilot application
Its purpose • apply the procedures defined in Pilot areas
• check the procedure defined previously in field
• reduce stocks • propose any improvements to the procedures
• reduce stocks (reducing the number of Kanban)
• achieve a high level of quality Deployment throughout the plant
• develop visual management • deploy the procedures defined throughout the plant

TOOLS
• eliminate idle times
• simplify procedures
Functional diagram
FORTH: Station A sends N parts to station B SECOND: Station B sends Q parts to station C
Method of application
It is applied in a ‘Pull’ system in which specific priorities are defined
according to the downstream production process.
In a ‘Pull’ system, productivity is improved by controlling work flows
and through: STATION A STATION B STATION C
• small batches
• short machine set-up times (SMED)
• minimum and in any case controlled stocks 8
• operators involved in stage of completion of the work.

THIRD: Station B requires the production FIRST: Station C requires the production
of N parts to Station A of Q parts to Station B

60 61
NVAA – Not Value Added Activity
Definition Examples of not value added activities

An instrument for identifying activities that do not add value (for the
customer and/or the company). Examples of non-valued added
activities of a process, procedure or a service are unnecessary
transport wait invert rotate
movements, waiting, counting, reworking, inspections and controls. walk
Warning! non-value added activities remain such even if defined in
the operation sheet and therefore is considered part of the
standard time according to Work Analysis. assembly insertion wiring attempt
positioning tightening attempt
attempt attempt attempt

Method of application
It is possible to modify reworking pass on
speed of production press LOAD to load transfer look reload
a video

press START to put away

start the analysis re-stack place send push

press STOP to end

the analysis
During the analysis, click
to indicate NVAA, semi pull press lift lower storing

TOOLS
VAA or VAA activities

replace find count sort measure

Click on the nodes to

move the video to the
transition point
put in bath choose move stack detach

To apply the instrument, a computer application has been

developed that permits: untie dry regulate connecting look
• display, division and classification of the activities carried out by
an operator
• selection of those that are value added and those that are not
• measurement of the portion of non-value added activities leave parts delay stop
inspect accumulate
• quantification of possible improvement margins. around

62 63
OPL - One Point Lesson
Definition An example

A simple but effective training instrument that makes it possible to focus ONE POINT LESSON (OPL) Basic knowledge Problem Improvement Rep. Nr.
the topic of the training at a single point, in a short time and in a single Plant: M.F. O.U.: ENGINES ETU: 105 OP. 110 SAIMP GRINDING Compiled by:…… Nr. 17
sheet. Subject: FLOW INDICATORS – visual control of operating range Signature: Date: 03/07/15
The secret of assuring that an OPL is clear consists in preparing a text
that is easy to understand, with sketches, drawings and photos.
NON-CORRECT
OPERATING RANGE

Its purpose
CORRECT OPERATING
Describe and deploy the best practices of a plant. RANGE
There are three types of OPL:
1. Basic lessons. Improve operators’ basic knowledge with the
technical or management information they need to know; they teach
how to carry out a certain activity, how a plant component works, etc.
2. Problem. Teach operators what to do in specific situations in order Highlighted the operating range with indication in red (incorrect operating range) and green (correct operating range)
to avoid errors, faults, defects or accidents; to do this, sketches or Data of the training
photos are prepared to describe the problem and clearly indicate the Trainer
Student
steps to be taken to prevent it from occurring again.
3. Improvement. Deploy knowledge of improvements to the plant,

TOOLS
equipment, method of work or to the product so that they become
shared know-how and are applied across the organization to similar Four questions to ask
situations; they usually show two phases: Before – After. for good operators
training
(‘The way to teach’) :
Method of application
Training using OPL is usually carried out by Maintenance or by the
process engineer (see AM).
The lower part of the OPL is used to record the training carried out.
OPLs must be numbered, divided according to topic and suitably
managed for subsequent deployment.
1. How do you do this job?
2. How do you know that this job is carried out correctly?
3. How do you know that your products has no defects?
4. What do you do if you have a problem?

64 65
Poka Yoke
Definition Examples of Poka Yoke

A technique for preventing human errors when carrying out any

production activity.
The solutions adopted should be as simple as possible and of IDENTIFY OBJECTS ACCORDING TO THEIR CHARACTERISTICS
reduced cost, defined starting from the outset, from attentive design
of the workplace, of equipment and, in particular, of the product. BY WEIGHT: BY SIZE: BY SHAPE:
In this way, Poka Yoke at zero cost are possible.
The underlying conviction of Poka Yoke is that production of even a
single faulty part is not acceptable and the zero cost quality is
obtained only by preventing defects and never recovering these.

Its purpose
IDENTIFY DEVIATIONS FROM PROCEDURES OR
PROCESSES OMITTED
Prevent errors or to highlight the error when this occurs using specific
devices. PROCESS IN SEQUENCE: PROCESS-TO-PROCESS
SEQUENCE METHOD:

TOOLS
INCORRECT PROCEDURE
IT IS NOT

8 principles for application of Poka Yoke POSSIBLE TO

DRILL AFTER
BENDING

1. Build quality in the processes CUT BEND

WE LEFT OUT SOME
2. All errors and defects due to inattention can be eliminated PARTS

3. Stop making mistakes and start doing things correctly

4. Don't search excuses: think how to avoid errors IDENTIFY DEVIATIONS FROM VALUES DEFINED
5. 60% hope of success is sufficient – apply your idea immediately!
6. Errors and defects can be reduced to zero when everyone USE A COUNTER: PARITY CONTROL IDENTIFY CRITICAL
cooperates in eliminating these METHOD: CONDITIONS:
7. Ten heads are better than one
8. Find the real cause of the problem using the 5W1H method

66 67
QA Matrix
Definition An example
A set of matrixes that:
• highlight the correlations between the faults generated in the product
and the phases (at various levels of detail) of the production system, Plant Q A Matrix
both internal and external, in which they are generated Gravity Process
• define priority defects, weighting these according to parameters such

Cost of direct labour

as: frequency of occurrence, cost of materials, cost of labour involved

Frequency
Cost of Material

Priority

Assembly
Bodyshop
in the rework or repair, severity for the customer (see example).

Painting
End customer
Postaz./UTE
Station/ETU
U.L. release
Its purpose

ICP/TOC

Team
Problem

PIC
• list defects in order of priority
• identify the physical locations of the non-conformities at different and
gradually more in-depth levels of detail
• highlight the link existing between each type of non-conformity and the
corresponding phases of the process in which they have occurred

Supply
• define the importance of each of the 4M in relation to each non-
conformity, for each phase of the process
FUNCTION CODE
C65AE110 – COMPLETE FRONT
Method of application LIGHTING CLUSTERS

TOOLS
A05CC360 – REAR OIL GUARD
ENGINE SHAFT
• list the defects indicating the main faults highlighted by each indicator
IMMERSED SUPPLY PUMP
of the IQM in the period
A30HD310 – MECHANICAL TRANS.
• define, for each defect, frequency, cost of material, cost of labour, GEAR ENGAGEMENT HOSE (F)
severity, etc. in order to establish priorities 29-IGNITION DIFFICULTIES
• define the correlation with the phases of the production process where WATER/AIR TIGHTNESS
those defects took place (initially at plant level, the process can be C60AJ110 – STARTER BATTERY
divided into ETU, afterwards a more detailed analyses can move up to C65AA110 – COMPLETE HEADLIGHT

machine/workplace level) A18ME352 – INJECTION/IGNITION

CONTROL UNIT (MPI)
• also analyze the correlation with each 4M in order to correctly address D71TJ110 –- MOTORINO
WINDOW MOTOR
ALZACRISTALLI
the following improvement and solution phase; indication of the C65LJ410 – STOP LIGHT SWITCH
correlation may contain different weights or levels so as to provide
9002-SUSPENSIONS: NOISE
indications regarding the contribution of each M and, therefore, the
9003-INTERNAL NOISE
composition of the team that is to carry out the analysis
740-OTHER WHEELS (INCLUDING
• identify priority areas of action, launch the projects as established by ROLLING NOISE)
the Quality Control method

68 69
QM Matrix
Definition An example

A tool for defining and maintaining machine operating conditions able to

guarantee the desired quality performance.
It consists of a set of tables that establish the necessary operating
conditions and controls to avoid non-conformities, for each component
of the machine that affects product quality.
The points at which the activities planned are carried out are indicated
on the machine applying a green label (Q Point).

Its purpose
• list the operating conditions that must be maintained on the machine
(functioning parameters, inspections, replacements, work and setting
procedures,etc.), by whom (machine operator, maintenance
technician), how (equipment, tolerances,etc.) and when (frequency,
phase of the cycle, etc.) in order to avoid product non-conformities
• create a quality objectives check-list that guarantees prevention and
immediate reaction to non-conformities
• define machine operator and maintenance staff responsibilities and
identify their training requirements

TOOLS
Points requiring particular attention

Five rules for defining the machine operating conditions that guarantee
zero defects (‘5 conditions for 0 defects’):
1. Clearly defined zero defects conditions
2. Zero defects conditions that are easy to establish
3. Zero defects conditions that do not change easily
4. Any changes in conditions that are easy to recognize
5. Zero defects conditions that are easy to restore.

70 71
Six Sigma
Definition The 5 phases - DMAIC
1. Define: identification of the problem, of objectives and scope of
A quality management method applied world-wide at companies of the project
different size operating in various sectors such as GE, Motorola, 2. Measure: analysis and measurement of the current performance
American Express. of the process
It promotes more efficient, effective management of company 3. Analyze: analysis and recording of the main causes
processes and control of the underlying relationships of cause and 4. Improve: selection of problem-solving strategies
effect, making it possible to identify, quantify and eliminate activities 5. Control: standardization of the situation, continuous
that do not improve profitability and to define new standards of work. improvement

• analysis of the process or service

• identification of defects • Q.F.D.
• far-reaching action on the causes of defects in order • Map of the processes
• Capability Analysis
to remove or reduce these • M.S.A.
• application of various tools both graphic and
analytical in order to improve manufacturing, logistic, • Cause-effect diagram

administrative and management processes

• Testing of the hypothesis
• Regressions
Its purpose • Design of Experiments

• DOE

TOOLS
Control Plan
• take decisions based on objective data and not on subjective • SPC
perceptions Optimized
• optimize processes/improve quality product/process

• increase productivity
• reduce inefficiencies
• cut costs Emphasis on data analysis
• obtain improved customer satisfaction Six Sigma is a method of improvement that entails various decisions
• promote improved competitiveness (attention to risks: know and control these!).
A decision is taken after attentive, structured analysis of the existing
The three applications process. Data to be analyzed are therefore necessary: do we have
all the data?
• DMAIC – Incremental improvement of existing processes If so, we can make the analysis, if not we must take samples.
(Define, Measure, Analyze, Improve, Control) At this point, data analysis envisages the use of statistic notions and
• DMADV – Redesign of existing processes, design of new processes tools, the use of which is simplified by specific statistical software
(Define, Measure, Analyze, Design, Verify) (MINITAB).
• DFSS-IDOV - Robust Design
(Design for Six Sigma – Identify, Design, Optimize, Validate)

72 73
SMED - Single Minute Exchange of Die
Definition Tools used
A set of techniques for carrying out changeover or set-up operations in SMED requires use of a set of specific process recording and
less than ten minutes. It is a tool for analysis and redesign of plant redesign tools that are structured differently according to the
operating procedures. technical and/or organization purposes of the analysis, for
SMED is intended to minimize machine stoppages and therefore example:
internal set-up operations. It is particularly suited for the following • flow diagram with timings
categories of processes: • redesign of lay-out
• batch production with high set-up times or frequent set-up • 5S and Visual Factory techniques
• processes characterized by frequent replacement of tools • Poka Yoke technological modifications.
• ‘bottleneck’ production processes
• processes in which set-up operations have a major impact on
product quality.

Its purpose
Application of SMED promotes: Set-up time reduction methods
• improvement of production line efficiency
• a consequent reduction in WIP due to set.-up times and batch size

TOOLS
(reduction of the economic batch)
• reduction of complexity of the operators’ work
DEFINE METHOD OF WORK AND TRAIN PEOPLE
• reduction of response times in the case of modifications of production
programs and promotes production system flexibility (JIT)
• reduction of costs due to defects and reworking in the production
MODIFY THE MACHINES AND/OR TOOLS
start-up phase
• reduction of the number of used equipments (in the case of major
DEVELOP TOOLS INTERNALLY
improvements in times)
 DESIGNED FOR PARTICULAR USES
• reduction of process management costs
 LIGHT, EASY TO MOVE
• involvement of operating personnel in improvement activities: SMED
 LOW COST
is possible only with the contribution of operating personnel.
 WITHOUT ADJUSTMENTS AND CHECKS

DRASTIC REDUCTION OF SET-UP TIMES

74 75
Value Stream Map
Definition An example

A tool that makes it possible to highlight the areas of waste of a Current State
company process. It helps to see, understand and represent the current
stream of materials and information that, referring to a specific product,
flow through the value stream from the customer to suppliers (Current
State Map).
Therefore, it makes it possible to draw a map of how the value of the
future process should be, according to improvements identified and
certain applicability of these (Future State Map).
With regard to Lean Production (continuous improvement), before
defining the Future State Map, it is also important to represent an ideal
situation (Ideal State Map).

Its purpose
• display the stream of processes and to define what must be done to
improve this and to obtain value added
• see where waste is located and its causes
• define a situation to be achieved

TOOLS
• lay the bases for an implementation plan with a graphic representation
that summarizes operating decisions and benefits Future State

Method of application
• select the product family
• develop the Current State Map
• develop the Ideal State Map
• develop the Future State Map
• develop the implementation plan
• validate the implementation plan

76 77
X Matrix
Definition An example

It is, generally speaking, a quality improvement instrument that makes it

possible to compare two pairs of lists of elements in order to highlight
the correlations that exist between one list and the two adjacent lists.

Its purpose

As a FAPS instrument, when analyzing the causes of product quality

defects and the link between the anomaly and the machine component
responsible for this, it is applied to establish the relationship between:
• the type of defect (defect mode),
• the abnormal phenomenon that causes this defect (process variables
or abnormal phenomenon),
• the part of the machine on which it is generated (machine group)
• machine components on which to carry out prevention activities (Q
Point/Component - see QM Matrix), with related operating conditions
and parameters to be verified.

TOOLS
Method of application

Using conventional symbols, the four areas considered are correlated

with each other, in cyclical fashion:
• Defect mode
• Abnormal phenomenon or Process variables
• Section or Machine group
• Q Point or Components
In this way, it is possible to observe which item, referring to each area, is
critical for application of subsequent corrective, maintenance and
training actions.
If correctly applied, the X Matrix is a powerful analysis tool that,
however, requires in-depth knowledge of the physical phenomena and
of the links between the product and the process.

78 79
 KPI AND
AUDIT SYSTEM

Ma
n
io

tem
at

int
n iz Lo

ena
Sys
ga gi
st
Oor ic

nce
e

y
Sy
ac

alit
pl st

Sy
rk em

Qu
o

ste
W

m
Metodologie

Standard & Tools

Audit
Coinvolgimento Sicurezza Standardizzazione
1 2 3 4 5
Safety Cost Focused Autonomous Professional

Technical
Deployment Leadership
Improvement Activities (AM & WO) Maintenance

Items
6 7 8 9 10
Quality Logistics / Early Product / People Environment
Control Customer Service Equipment Mgt Development

Management
1 2 3 4 5
Management Clarity of Route map Allocation of Highly Qualified Commitment of

Items
Commitment Objectives & KPI to WCM People to Model Areas Organization
6 7 8 9 10
Competence of the organization Time & Level of Level of Motivation of
towards improvement Budget Expansion Details the Operators

81
KPI SYSTEM

The indicators have been selected referring to:

The Fiat Group Automobiles Production System has been • the levers on which each level is able to operate to influence the
structured with a clear objective-oriented approach in which trend of the indicator
these objectives must be measurable, shareable and monitored • best practices taken from outside the Fiat Group Automobiles
continually throughout the entire organization. • organization, amongst acknowledged WCM companies.
Therefore, a KPI (Key Performance Indicator) model consisting of
homogeneous families of indicators has been developed: As the production processes carried out by Fiat Group Automobiles
Manufacturing differ considerably, the KPI have been personalized
• Cost (C)
for the Bodywork plants and for the Stamping pole.
• Quality (Q)
• Productivity (P) The deployment has been defined, starting from Manufacturing
• Safety (S) Management down to the individual Domain Teams.
• Human Resource (HR)
• Production System (PS)
• Delivery (D)
• Stock (S)

AUDIT SYSTEM
KPI AND
82 83
 AUDIT SYSTEM
Assessment: Methodologies Implementation
The FAPS Audit System is one of the major elements for
assessing, guiding and supporting application of the Fiat Group
Index (MII)
Automobiles Production System according to the path towards
World Class Manufacturing. The Plant is assessed for each methodology with a score of
It is intended to monitor the trend of results (through the KPI) and between 0 and 5 (as described above).
to guide the management to the correct application of Production The all-round assessment of the Plant is summarized in an
System methods. indicator called the Methodologies Implementation Index (MII)
To do this, both periodic self audits, carried out by plant which can also be applied at Operating Unit and ETU level.
management in order to monitor progress of the activities of the The MII represents the sum of all the levels achieved in
Pillars, and external audits, by independent managers for applying each methodology.
certifications of the levels achieved, are planned.

The Audit System, as envisaged by WCM, comprises: Method Implementation Index

• 10 technical criteria (Pillars), each referring to a precise

methodology, organized in 7 application steps
• 10 managerial criteria, to support Pillar technical criteria,
necessary for optimal application of the Production System. MII = 58

Acknowledgements
Once the assessment has been checked by external experts,
Ma

n
tio
em

int

iza Lo specific acknowledgments are assigned to the Plant:

yst

ena

n gi
ga
Bronze
50 points
st
or
y S

O ic
nce

e Sy
ac
alit

pl st
Silver
65 points

AUDIT SYSTEM
Sy

k em
Qu

or
ste

80 points
W
Gold
m

KPI AND
Metodologie
Methods

Standard & Tools

Also, to qualify for rewards, a minimum level of implementation
Audit is required for certain methods:
Coinvolgimento Sicurezza Standardizzazione
Technical

1 2 3 4 5
Safety Cost Focused Autonomous Professional
Items

Leadership
Deployment Improvement Activities (AM & WO) Maintenance Bronze Silver Gold
6 7 8 9 10
Quality Logistics / Early Product / People Environment Safety: level > 3 Safety : level > 4 Safety: level > 4
Control Customer Service Equipment Mgt Development
AM: level > 2 AM: level > 2 AM: level > 2
Management

1 2 3 4 5
Management Clarity of Route map Allocation of Highly Qualified Commitment of PM: level > 2 PM: level > 3 PM: level > 4
Items

Commitment Objectives & KPI to WCM People to Model Areas Organization

6 7 8 9 10
WO: level > 2 WO: level > 3 WO: level > 4
Competence of the organization Time & Level of Level of Motivation of
towards improvement Budget Expansion Details the Operators Quality: level > 2 Quality: level > 4
Logistics: level > 4

84 85
SYNOPTIC TABLE

87
‘© 2008 Fiat Group Automobiles. All rights reserved. All the materials contained herein are protected by copyright and reproduction,
republication, diffusion, transmission, display or any other form of use, even partial, in any way and with any instrument are forbidden
without the prior written authorization of Fiat Group Automobiles. Fiat Group Automobiles does not assume and specifically declines any
responsibility, guarantee, expressed or implicit, recharging any error or omission in this material and/or in any modification and/or use
thereof. The information provided in this support is liable to continuous update: Fiat Group Automobiles does not assume and specifically
declines any responsibility or guarantee for the consequences deriving from use of not updated information.’

Riprinting completed Juli 2008