1.1.5 –Workforce Development Integration (Operational Excellence)
June 11, 2012 Alex D‘Anci, QO – Operations Development Group
© ABB Group 090914_QO_Quality & OPEX Vision 2012_1_1 June 8, 2012 | Slide 1
© ABB Group June 8, 2012 | Slide 3
A global leader in power and automation technologies Leading market positions in main businesses
135,000 employees in about 100 countries
$38 billion in revenue (2011)
Formed in 1988 merger of Swiss and Swedish engineering companies
Predecessors founded in 1883 and 1891
Publicly owned company with head office in Switzerland
© ABB Group June 8, 2012 | Slide 4
Power and productivity for a better world ABB’s vision
As one of the world’s leading engineering companies, we help our customers to use electrical power efficiently, to increase industrial productivity and to lower environmental impact in a sustainable way.
© ABB Group June 8, 2012 | Slide 5
How ABB is organized Five global divisions
Power Products
Power Systems
Discrete Automation and Motion
Process Automation
$10.9 billion 35,300
employees
$8.1 billion 19,600
employees
$8.8 billion 28,500
employees
$8.3 billion 28,300
employees (2011 revenues, consolidated)
Low Voltage Products
$5.3 billion 21,400
employees
Electricals, automation, controls and instrumentation for power generation and industrial processes
Power transmission
Distribution solutions
Low-voltage products
Motors and drives
Intelligent building systems
Robots and robot systems
Services to improve customers productivity and reliability
ABB’s portfolio covers:
© ABB Group June 8, 2012 | Slide 6
Power and automation are all around us You will find ABB technology…
crossing oceans and on the sea bed,
orbiting the earth and working beneath it,
on the trains we ride and in the facilities that process our water,
in the fields that grow our crops and packing the food we eat,
in the plants that generate our power and in our homes, offices and factories
Tackling society’s challenges on path to low-carbon era Helping customers do more using less
Source: IEA, World Energy Outlook 2011
12,
500
Terawatt-hour (TWh)
10,000
20,000
30,000
17,
200
2009 2035
34,
350
+99.7%
ABB power and automation solutions are:
Meeting rising demand for electricity
Increasing energy efficiency and reducing CO2 emissions
Improving productivity to raise competitiveness of businesses and utilities
Rise in electricity demand by 2035 (under current policies)
Electricity demand is calculated as the total gross electricity generated less own use in the production of electricity and transmission, and distribution losses.
© ABB Group June 8, 2012 | Slide 8
Improving capacity, reliability and efficiency in the grid A pioneer in smart technologies
Transmission at ultrahigh voltage
Minimal losses with direct current solution
Challenge ABB solution China: deliver 6,400 MW of
hydropower over 2,000 km
US: Increase capacity and reliability for Texas utility
World’s largest installation enabling existing lines to carry more power
Also enables integration of renewable energy
India: Improve reliability in grid serving state of Karnataka (pop. 53 million)
Network management with real-time control
Key building block for smart grid
© ABB Group June 8, 2012 | Slide 9
Renewable energy Key growth driver for both power and automation
Generation and transmission solutions for:
Hydro
Wind
Solar
Wave
Xiangjiaba-Shanghai (China)
Wind Capital (US)
Totana solar (Spain)
Pelamis wave energy (Portugal)
Project examples ABB scope
Grid connection
Transformers
Turnkey execution
Customized generators
© ABB Group June 8, 2012 | Slide 10
Boosting productivity and energy efficiency Example: Stora Enso, world’s biggest paper maker
Skoghall mill, Sweden: No. 1 maker of board for drink cartons
Two-year revamp boosted productivity and cut CO2 by 170,000 tons/year
ABB provided key control systems:
For boiler, collecting and analyzing data on pressure, flow, temperature, etc. from thousands of instruments
For total control over power supply with real-time data
© ABB Group June 8, 2012 | Slide 11
Leading power system’s biggest-ever transformation Smarter, greener grid for more efficiency and reliability
Merging power and automation technologies makes electricity network more reliable, flexible, secure and efficient. Smart grid benefits include:
Lower power consumption
Greater use of renewable energy
ABB’s broad offering in both power and automation technologies positions it uniquely to support this evolution
Transformation of grid to take place over several decades
© ABB Group June 8, 2012 | Slide 12
Ground-breaking and nation-building projects Pushing the boundaries of technology
Longest underground power link
Longest and highest capacity power link
Longest underwater power link
Largest gearless mill drive (for crushing ore)
Largest SVC installation
Most remote offshore wind farm linked to grid
First platform connected to mainland grid
Europe’s largest thermal solar power plant
First commercial wave power plant
First 600 kV power link
Longest conveyor belt
Substation in world’s tallest building
Power and automation of largest chemical cellulose plant
Automation of largest alumina plant
Largest battery
Mine hoist for largest potash mine
Largest reverse-osmosis desalination plant
Largest SCADA network
© ABB Group June 8, 2012 | Slide 13
Shaping the world we know today through innovation Pioneering technology since 1883
Founding fathers
1900
Industrial robot
Turbochargers
HVDC
Ultrahigh voltage
Gas-insulated switchgear
Variable-speed motor drives
Extended control systems
Steam turbine
1920 1930 1940
Electric propulsion systems
1990 2000
1960 1970
Gas turbine
1950
Gearless motor drives
1980
Electrical drive system for locomotives
© ABB Group June 8, 2012 | Slide 14
Innovation is key to ABB’s competitive advantage Leadership built on consistent R&D investment
More than $1.3 billion invested annually in R&D 7,500 scientists and engineers Collaboration with 70 universities
MIT (US), Tsinghua (China), KTH Royal Institute of Technology (Sweden), Indian Institute of Technology (New Delhi), ETH (Switzerland), Karlsruhe (Germany), AGH University of Science and Technology (Poland)
© ABB Group June 8, 2012 | Slide 15
Fashioning the world we will live in tomorrow Tackling challenges with customers and partners
R&D programs focus on incremental and breakthrough developments to address challenges including:
Integrating renewable power sources into the grid
Enhancing power network efficiency, reliability and flexibility
• Improving industrial resource efficiency and asset productivity
• Optimizing flexibility and reliability
© ABB Group June 8, 2012 | Slide 16
Developing sustainability of products and operations Lowering environmental impact and costs
Sustainability in product development
Focus on resource and energy efficiency of equipment over life cycle
Independently verified Environmental Product Declarations for main products
Sustainability in ABB’s operations
Cuts targeted in use of energy, raw materials, hazardous substances
eg, China: 63% cut in energy use per unit of revenue between 2002 and 2010
© ABB Group June 8, 2012 | Slide 17
People make the difference The best want to work in a first-class environment
ABB is one of the world’s most global companies
A culture of openness, flexibility and inclusiveness helps to attract top performers
ABB strives for excellence in personal development, operational execution, health and safety, business ethics
A Group-wide staff development program aims to bring a culture of leadership to every level of the organization
© ABB Group June 8, 2012 | Slide 18
Committed to the highest standards of business ethics Integrity as bedrock of ABB’s global culture
Code of Conduct defines relationships with all stakeholders
Employees acknowledge Code of Conduct and take compulsory training courses
Zero tolerance toward violations
Several reporting options in place for employees to report suspected violations; each report thoroughly investigated
“Whatever change may be going on in the world around us, one thing remains unchanged: ABB’s commitment to maintain the highest standards of business ethics and integrity.”
CEO Joe Hogan in ABB’s Code of Conduct
0%2%4%6%8%10%12%14%16%18%20%
0
10000
20000
30000
40000
50000
2010 2011 2012
© ABB Group June 8, 2012 | Slide 19
© ABB Group June 8, 2012 | Slide 19
© ABB Group June 8, 2012 | Slide 19
© ABB Group June 8, 2012 | Slide 19
Revenue (US$ million) by quarter and annual operational EBITDA margin (Q1 margin for 2012)
13-19% operational EBITDA margin corridor targeted for period 2011-2015
Q4
Q3
Q2
Q1
Main investments 2011/12 Main acquisitions and investments Plant expansion New plant 2011 2012 Switzerland Sweden, Italy, China, India, Estonia
Brazil China, Bulgaria, US, India
Baldor, Obvient, Epyon, Validus, Mincom, Trasfor , Lorentzen & Wettre, Novatec Solar**, Ecotality**, Aquamarine Power**
Newave
A successful business and a reliable partner Strong financial position is competitive advantage
**ABB equity investments
© ABB Group June 8, 2012 | Slide 20
Power systems
Discrete automation and motion
Europe
Asia
Americas
Middle East and Africa
Well-balanced business and geographic portfolio Capturing growth opportunities, wherever they arise
Share of employees 2011
47%
Mature markets
Emerging markets
Power products
Process automation
Low voltage products
53%
25%
21%22%
12%
20%
Orders by division % of total orders 2011 (non-consolidated)
38%
30%
23%
9%
Orders by region % of total orders 2011
© ABB Group June 8, 2012 | Slide 21
Innovation, passion and diversity are hallmarks of ABB
“ABB is a dynamic, multicultural team that spans the globe, working in a fascinating world of high technology.”
“Our portfolio is vast, but the benefits are straightforward: we help to provide reliable power supplies and improve productivity, while lowering environmental impact.”
CEO Joe Hogan
© ABB Group 090914_QO_Quality & OPEX Vision 2012_1_1 June 8, 2012 | Slide 22
September 2009 Quality & Operational Excellence - Vision 2012
© ABB Group 090914_QO_Quality & OPEX Vision 2012_1_1 June 8, 2012 | Slide 24
ABB Quality Policy To ensure that we meet our responsibilities and obligations to our customers, our people, our
partners, our suppliers and to our shareholders we are committed to the following Quality Objectives:
1. Deliver on-time & on-quality products, systems and services that meet or exceed our customer's expectations.
2. Identify and understand our customer's expectations, measure customer perceptions, and implement improvements to increase customer satisfaction.
3. Enable and engage our people at all levels in a relentless drive to improve operational performance along the value chain from suppliers to customers.
4. Increase the motivation and skills of our people to add value to our customers and our businesses, through continual training and development.
5. Leverage our partners & suppliers strengths to improve our products and our businesses from product design through production, installation and operation.
6. Embed social responsibility & company ethics policies in our business practices.
7. Continually improve environmental, health and safety performance through all products, operations, systems and services.
© ABB Group 090914_QO_Quality & OPEX Vision 2012_1_1 June 8, 2012 | Slide 25
ABB Quality Policy to QO Key Actions Deliver on-time & on-quality products, systems and services
that meet or exceed our customer's expectations
Identify and understand our customer's expectations, measure customer perceptions, and implement improvements to increase customer satisfaction
Leverage our partners & suppliers strengths to improve our products and our businesses from product design through production, installation and operation
Enable and engage our people at all levels in a relentless drive to improve operational performance along the value chain from suppliers to customers
Increase the motivation and skills of our people to add value to our customers and our businesses, through continual training and development
Embed social responsibility & company ethics policies in our business practices
Continually improve environmental, health and safety performance through all products, operations, systems and services
Driving Excellence in Operations
Drive “Customer Feedback” action follow-up (NPS & CCRP inputs)
Drive OPEX Projects in the units
Drive OPEX Projects in Partners & Suppliers (Supplier Qualification Process, Flop 10)
...
Supporting Flawless Project & Risk Management Lead Project Mgt Council (publish ABB
Project Mgt Framework)
Assess & Certify Project Mgrs & BU’s
Drive Project & Risk Mgt Training
...
Building an ABB Continual Improvement culture Gain GEF level awareness & support
Develop “ABB 4Q” methodology
Drive “ABB 4Q” training & coaching
...
© ABB Group 090914_QO_Quality & OPEX Vision 2012_1_1 June 8, 2012 | Slide 26
>xxx PM’s Certified Project Risk Management; trained total >xxx
Streamline Internal Trading project launched
BU Project Mgt Maturity Cert in key countries
ABB On-Time, On-Quality,
On-Cost for all products
and projects
ABB 4Q skills development of >xxx people per month
2009 2011 2012 2010
Excellence in Operations
Continual Improvement Culture
>xx% of Large, and all GA, projects led by Senior PMs
Quality & Operational Excellence Vision 2012
ABB PM Framework of processes & tools published by PMC
ABB 4Q skills development of >xxx people per month
ABB 4Q program launched
PM Council launched
Flop 10 launched to boost supplier quality & delivery
>xxx OPEX projects launched & >xxx$ OPEX value delivered
Flawless Project & Risk Mgt
>xxx$ OPEX value delivered (>xxx$ cum.)
Supplier OTD/OQD >xx%
>xxx$ OPEX value delivered (>xxx$ cum.)
Customer action process launched
Joint ABB-Customer OPEX projects launched
Q&OPEX competency model implemented
© ABB Group 090914_QO_Quality & OPEX Vision 2012_1_1 June 8, 2012 | Slide 27
ABB 4Q Approach agreed
Deploy SMT for OPEX Project Mgt
Upgrade Competency Model for Q&OPEX
Agree Q&OPEX Career Model & Mechanics
On-Time, On-Cost On-Quality Products, Systems, Services improving >xx%/year
Build Networks of Q&OPEX Leaders
2009 2011 2012 2010
One ABB “Core OPEX” Methodology & Tools with Training Materials
Collaborative Group Wide Improvement Projects
Q&OPEX Competency Development Widespread OPEX Engagement Across the Group
Operations Development Group – Vision 2012
Support Streamline Internal Trading Project – Sales & Ops Planning
Support “Flop 10” supplier development
Assess ODG Competences & develop actions to close gaps
Training & Awareness pilots for all levels
Training : awareness, fundamentals, basic, advanced & expert levels
>xx% ABB people “trained” in 4Q
Roll out training: >xx% ABB people trained (2012 Target : >xx%)
Implement Best Practice Spreading processes
Implement Q&OPEX Career Model
Support PMC OPEX projects
Redefine Job Descriptions & grading structure for Q&OPEX
© ABB Group 090914_QO_Quality & OPEX Vision 2012_1_1 June 8, 2012 | Slide 28
2009 2011 2012 2010
PM Skills and Competencies
Local Engagement
Project Management Group - Vision 2012
On-time, on-profit, on-quality project execution
PM Competency assessments conducted in xx key countries >xxx trained in Project Risk Mgt
>xx% of Large/Complex & Group Accounts projects led by Senior PM
Company Senior PM recognized as key leaders & role models
Risk Review Application – Release 1.1
Project execution (& review) tools roadmap developed
LBU PM Maturity Certification( OPM3)
ABB PM Council (PMC) established
ABB PM Network defined
PM Network actively spreading best practices
ABB PM Network - social networking processes developed - peer to peer problem solving & On-line coaching support
PM processes and guidelines formalized in PM Framework
LBU PMgt Certification piloted
PM Processes and
Tools
>xx% PM assessed and certified
© ABB Group 090914_QO_Quality & OPEX Vision 2012_1_1 June 8, 2012 | Slide 29
2009 2011 2012 2010
Supplier Qualification
(SQP)
Customer Quality
Supplier Surveillance (SSP) Supplier Improvement Process (SIP)
Customer & Supplier Quality Group - Vision 2012
Group Guideline issued for SQP SQ Reference Team Established
SQP applied to all new direct material suppliers
SQP applied to all new suppliers
Supplier performance is no longer impacting ABB customer deliveries and improving by xx% year over year
Group definitions for OQD and OTD agreed & published eSmart measurement fields aligned
OTD & OQD Scorecard implemented for top xxx Suppliers
Flop 10 Supplier List published
Public recognition of top performing suppliers
xxx Flop 10 Supplier Improvement projects running
xxx suppliers trained on ABB 4Q Continuous Improvement
xxx Flop 10 Supplier Improvement projects running
Group Guideline issued for SSP
Group Guideline issued for SIP
Customer action process implemented
CCRP performance published internally
Customer action process agreed with GAM’s & BU’s
Joint ABB-Customer OPEX projects launched
Process audit performed on suppliers with OTD/QOD <xx%
© ABB Group 090915_ABB Core Opex_Brief_0_6.ppt June 8, 2012 | Slide 30
Division B Core OPEX
Division A Core OPEX
ABB Core OPEX – Vision 2012
Basic
Advanced
Expert
4Q Skill Levels
Daily problem solving
activities $
More complex CI and problem solving projects
k$
CI Projects
M$
Number of initiatives
Eliminate Root cause
Process Redesign
Fundamentals E-Learning
10 hours over 5 days
1 Week
4 Week
Training depth
ABB Core OPEX
People Leadership Resources, Involvement, Motivation, Recognition
Value Stream Mgt Process Maturity
Continuous Improvement of Core OPEX itself with ideas from inside and outside ABB
4Q – Continuous Improvement People Skills Building
Improvement triggers from workplace daily rounds, CCRP, COPQ and Cost-out
Executive ½ Day
© ABB Group 090915_ABB Core Opex_Brief_0_6.ppt June 8, 2012 | Slide 31
Basic
Advanced
Expert
4Q Skill Levels
Daily problem solving
activities $
More complex CI and problem solving projects
k$
CI Projects
M$
Number of initiatives
Eliminate Root cause
Process Redesign
Fundamentals E-Learning
10 hours over 5 days
1 Week
4 Week
Training depth
ABB Core OPEX
People Leadership Resources, Involvement, Motivation, Recognition
Value Stream Mgt Process Maturity
Continuous Improvement of Core OPEX itself with ideas from inside and outside ABB
4Q – Continuous Improvement People Skills Building
Improvement triggers from workplace daily rounds, CCRP, COPQ and Cost-out
Executive ½ Day
ABB Core OPEX – It comes from the top
Leaders understand how Operational Excellence can enhance:
Customer satisfaction
Efficiency and cost savings
Employee satisfaction and safety
Competitive advantage
Additionally, it is understood that in order to get maximum effect, the whole organization needs to be engaged.
This may require organizational changes to remove barriers to process innovation as well as new reward and recognition programs to encourage daily participation in continuous improvement.
The people who best know how to improve operations are the ones who are working in it every day.
© ABB Group 090915_ABB Core Opex_Brief_0_6.ppt June 8, 2012 | Slide 32
Basic
Advanced
Expert
4Q Skill Levels
Daily problem solving
activities $
More complex CI and problem solving projects
k$
CI Projects
M$
Number of initiatives
Eliminate Root cause
Process Redesign
Fundamentals E-Learning
10 hours over 5 days
1 Week
4 Week
Training depth
ABB Core OPEX
People Leadership Resources, Involvement, Motivation, Recognition
Value Stream Mgt Process Maturity
Continuous Improvement of Core OPEX itself with ideas from inside and outside ABB
4Q – Continuous Improvement People Skills Building
Improvement triggers from workplace daily rounds, CCRP, COPQ and Cost-out
Executive ½ Day
ABB Core OPEX – Where do we start?
First we need to see and understand how we add value for our customers.
We deliver our customers wishes through a system of interconnected processes – a value stream.
If the processes are not mature and stable, the quality may be poor or it may take longer than expected to deliver goods and services.
Unstable processes need more inventory to guarantee delivery and maintain operational efficiency.
Our free cash is tied up in this inventory.
For us to have continuous improvement, we need stable processes as a baseline to start from.
Operational Excellence comes from continuously improving value streams of mature processes.
© ABB Group 090915_ABB Core Opex_Brief_0_6.ppt June 8, 2012 | Slide 33
Basic
Advanced
Expert
4Q Skill Levels
Daily problem solving
activities $
More complex CI and problem solving projects
k$
CI Projects
M$
Number of initiatives
Eliminate Root cause
Process Redesign
Fundamentals E-Learning
10 hours over 5 days
1 Week
4 Week
Training depth
ABB Core OPEX
People Leadership Resources, Involvement, Motivation, Recognition
Value Stream Mgt Process Maturity
Continuous Improvement of Core OPEX itself with ideas from inside and outside ABB
4Q – Continuous Improvement People Skills Building
Improvement triggers from workplace daily rounds, CCRP, COPQ and Cost-out
Executive ½ Day
ABB Core OPEX – What tools do we use?
4Q was developed in ABB as a simple, yet powerful process improvement and problem solving methodology. We have many years of experience with 4Q.
4Q is an easy to learn framework for the systematic application of standard quality tools.
4Q solves problems in targeted processes by:
Measuring the process
Analyzing the measurements to determine problem root causes
Carrying out improvement activities to eliminate the root cause of the problem
Changing the process to sustain the improvement
© ABB Group 090915_ABB Core Opex_Brief_0_6.ppt June 8, 2012 | Slide 34
Basic
Advanced
Expert
4Q Skill Levels
Daily problem solving
activities $
More complex CI and problem solving projects
k$
CI Projects
M$
Number of initiatives
Eliminate Root cause
Process Redesign
Fundamentals E-Learning
10 hours over 5 days
1 Week
4 Week
Training depth
ABB Core OPEX
People Leadership Resources, Involvement, Motivation, Recognition
Value Stream Mgt Process Maturity
Continuous Improvement of Core OPEX itself with ideas from inside and outside ABB
4Q – Continuous Improvement People Skills Building
Improvement triggers from workplace daily rounds, CCRP, COPQ and Cost-out
Executive ½ Day
ABB Core OPEX – What problems do we solve?
Opportunities for improvement are everywhere!
Which ones to attack first?
When our value stream is mapped and we understand its dynamics, we know what problems are hurting us more than others.
Every day when our process teams meet in the factory and in the office:
We discuss problems and initiate actions to fix them.
Uncover repeat problems that are solved with 4Q.
NPS & CCRP are a rich source of input for 4Q activities
4Q is also used for reducing Cost of Poor Quality
Cost out and capital efficiency management initiatives use 4Q well
© ABB Group 090915_ABB Core Opex_Brief_0_6.ppt June 8, 2012 | Slide 35
Basic
Advanced
Expert
4Q Skill Levels
Daily problem solving
activities $
More complex CI and problem solving projects
k$
CI Projects
M$
Number of initiatives
Eliminate Root cause
Process Redesign
Fundamentals E-Learning
10 hours over 5 days
1 Week
4 Week
Training depth
ABB Core OPEX
People Leadership Resources, Involvement, Motivation, Recognition
Value Stream Mgt Process Maturity
Continuous Improvement of Core OPEX itself with ideas from inside and outside ABB
4Q – Continuous Improvement People Skills Building
Improvement triggers from workplace daily rounds, CCRP, COPQ and Cost-out
Executive ½ Day
ABB Core OPEX – Triggers for 4Q
Problem triggers from daily rounds in the factory, office, customers, NPS, CCRP, COPQ and Cost-out initiatives feed 4Q.
Daily rounds will expose many small problems and safety issues that need to be solved using the full cycle of 4Q or only parts of it.
Larger 4Q projects that eliminate problem root causes have business impacts in the tens to hundreds of thousands of dollars.
Eventually, we will want to redesign processes and even the whole value stream for a more efficient delivery process with business impacts in the millions of dollars.
Quality, customer satisfaction and safety improves every time 4Q is applied.
© ABB Group 090915_ABB Core Opex_Brief_0_6.ppt June 8, 2012 | Slide 36
Basic
Advanced
Expert
4Q Skill Levels
Daily problem solving
activities $
More complex CI and problem solving projects
k$
CI Projects
M$
Number of initiatives
Eliminate Root cause
Process Redesign
Fundamentals E-Learning
10 hours over 5 days
1 Week
4 Week
Training depth
ABB Core OPEX
People Leadership Resources, Involvement, Motivation, Recognition
Value Stream Mgt Process Maturity
Continuous Improvement of Core OPEX itself with ideas from inside and outside ABB
4Q – Continuous Improvement People Skills Building
Improvement triggers from workplace daily rounds, CCRP, COPQ and Cost-out
Executive ½ Day
ABB Core OPEX – Workforce Development
Learning and applying 4Q is easy.
We do not need to know much of 4Q to start using it on our daily work
Awareness and Fundamentals training from ABB University on inside.abb will give enough knowledge to solve problems as part of a 4Q team. This training is always available online for refreshing skills.
Basic training is targeted for on-the-job training with real work examples. Training is by an Advanced or Expert level person who works in the organization. A person with Basic training can work on own 4Q projects on their own or as part of a team.
Advanced training gives a person the skills to identify problems and lead teams to solve them by root cause elimination and even process redesign
Experts can train others to the Advanced level and other Experts.
Each level is certified with a test.
© ABB Group 090915_ABB Core Opex_Brief_0_6.ppt June 8, 2012 | Slide 37
Basic
Advanced
Expert
4Q Skill Levels
Daily problem solving
activities $
More complex CI and problem solving projects
k$
CI Projects
M$
Number of initiatives
Eliminate Root cause
Process Redesign
Fundamentals E-Learning
10 hours over 5 days
1 Week
4 Week
Training depth
ABB Core OPEX
People Leadership Resources, Involvement, Motivation, Recognition
Value Stream Mgt Process Maturity
Continuous Improvement of Core OPEX itself with ideas from inside and outside ABB
4Q – Continuous Improvement People Skills Building
Improvement triggers from workplace daily rounds, CCRP, COPQ and Cost-out
Executive ½ Day
ABB Core OPEX – Improves with experience
ABB Core OPEX is a living thing.
Many ABB businesses and divisions already have Operational Excellence initiatives, so where does ABB Core OPEX fit in?
ABB Core OPEX is a minimum framework and set of tools that can efficiently and effectively improve the order to cash cycle.
Parts from ABB Core OPEX can be included on other Operational Excellence initiatives.
Parts from other Operational Excellence initiatives, from inside and outside ABB can be incorporated into ABB Core OPEX.
By pooling our best practices, ABB Core OPEX helps us to become One ABB.
© ABB Group 090915_ABB Core Opex_Brief_0_6.ppt June 8, 2012 | Slide 38
ABB Core OPEX Basic Methodologies
Value Stream Mapping and Value Stream Development
Process Maturity
Workforce development (train-the-trainer)
7 wastes of Lean
5S + Workplace Safety
4Q and the 7 classic quality tools
Gemba Rounds (daily stand up meetings at the workplace)
Pull and Theory of Constraints
Supplier Integration
© ABB Group 090907_ABB Core Opex_0_5.ppt June 8, 2012 | Slide 39
The OPEX Cycle
Map Value Stream & Process Maturity
Bottleneck Management & Pull
Eliminate Waste Smooth Loading
New Selling Model
Supplier Integration
5S Safety
Gemba Rounds 4Q
© ABB Group 090915_ABB Core Opex_Brief_0_6.ppt June 8, 2012 | Slide 40
The OPEX Cycle Step by Step to Operational Excellence
The OPEX cycle. 4Q is used for problem solving and continuous improvement.
Quick VSM, identify processes
Process Maturity Assessment, assign owners.
Steps 1, 2 & 3 of TOC, include Future VSM and scheduling
Parallel to TOC:
5S + Safety
7 Wastes
Establish Gemba rounds
Supplier Integration
Get process maturity to level 3
Level loading & new selling model
Work to level 4 process maturity
Start over when major changes or every 5 years
© ABB Group 090915_ABB Core Opex_Brief_0_6.ppt June 8, 2012 | Slide 41
Core OPEX Skill Levels Skill building
Training Course Objective Roles & Responsibilities Duration
Executive 4Q To provide senior managers with an understanding of 4Q and how to deploy it in their own organizations
• To support & deploy 4Q improvement initiatives 0.5
Fundamental 4Q To give participants the knowledge to identify & support 4Q projects
• Understand the 4Q methodology • Sponsoring 4Q projects • Conduct regular 4Q project reviews
E-Learning
Basic 4Q To provide all employees with basic skills to improve on-time, on-quality, on-cost delivery performance
• Participate within 4Q improvement projects • Lead local improvement actions using 4Q methodology
10 hr
Advanced 4Q To equip selected employees with detailed skills & knowledge to improve on-time, on-quality, on-cost delivery performance
• Lead 4Q improvement projects • Coach and disseminate 4Q methodology across ABB
business units 5 Days
4Q Expert To provide high performing employees with advanced skills to support strategic deployment & internal coaching
• To act as improvement consultant for executive/senior management
• Train and coach people within the 4Q programme 20 Days
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2200
2010
-04-
08
2010
-04-
29
2010
-05-
20
2010
-06-
10
2010
-07-
01
2010
-07-
22
2010
-08-
12
2010
-09-
02
2010
-09-
23
2010
-10-
14
2010
-11-
04
2010
-11-
25
2010
-12-
16
2011
-01-
06
2011
-01-
27
2011
-02-
17
2011
-03-
10
2011
-03-
31
2011
-04-
21
2011
-05-
12
2011
-06-
02
2011
-06-
23
2011
-07-
14
2011
-08-
04
2011
-08-
25
2011
-09-
15
2011
-10-
06
2011
-10-
27
2011
-11-
17
2011
-12-
08
2011
-12-
29
2012
-01-
19
2012
-02-
09
2012
-03-
01
2012
-03-
22
2012
-04-
12
2012
-05-
03
4Q Basic training participants performance over time
# of certified 4Q Basic
# of Trained4Q Basic
# of SMT projects
2072
736
250
ABB 4Q Basic Program - Participants status & results May 21th 2012
© ABB Group June 8, 2012 | Slide 42
36%
12%
% %# of
Training Classes
# of Participants
# thereof 4Q certified
# of 4Q SMT
projects
MUSD savings out of these
projects
MUSD savings out of these participants
total SMT savings MUSD
4Q as % of Total
all as % of Total
2010 31 430 46 246 6.2 10.3 165.0 3.7% 6.2%
2011 94 1191 131 412 44.7 77.4 559.9 8.0% 13.8%
2012 32 451 73 79 68.3 102.8 709.3 9.6% 14.5%
SUM 157 2072 250 737 119.1 190.6 1434.3 8.3% 13.3%
Top Related