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September 07 Businessexcellence 31 plant in Statesville, North Carolina in 2000 as design engineering manager. A number of arrows aligned to open up the change agent role for him, he says. Haldex has four divisions (Commercial Vehicle Systems, Hydraulic Systems, Garphyttan Wire and Traction Systems) but historically, they had had little to do with each other. “In many cases, within a division, some of the facilities had had nothing to do with each other,” says Silberman. One of the fi rst steps the change agent team took was to develop a tool called a gap analysis which they took to every Haldex facility in the world. The team produced a comprehensive document with 80 or so questions about the use of lean principles. Are you using 5S? Are you using process mapping, value stream mapping, six sigma, kanban? It was an important exercise, not only for what the team learned about the facilities, but what the facilities learned about Haldex. “It showed leadership by the company,” says Silberman, “by sending a senior executive out with us; it also made the four of us into a team. We were introduced to all the facilities’ management, and the processes on the shop fl oor. It kicked off lean and it showed the facilities that Haldex was serious because they hired four people to do nothing but this.” The improvement program started with 5S, which, says Silberman, is the easiest way to start, and any other tools each facility felt would be most benefi cial to them. “The four of us then started mentoring sites, trying to bring them forward in their use of the tools. We used a train the trainer program with ourselves as the experts.” As they visited more sites, the team noticed that people were interested in meeting colleagues from different facilities, so twice-yearly meetings were set up for the lean leader from each site, alternating between Europe and the US. “We have train the trainer sessions, share best practice sessions, and in the next meeting in the fall we’re going to take them on a tour of a Toyota facility near Toronto, Canada,” says Silberman. “People who go into the same building every day don’t always see where they need to go, so we’re trying to help them with the vision.” Annual meetings for plant managers were also introduced, when it became apparent that the lean leaders needed more support from their managers. At one such meeting, they visited the Toyota facility in Georgetown, Kentucky. The meetings help people get to know each other, share best practice, and in some cases realize for the fi rst time where their product goes. There are a number of things happening that aren’t necessarily on the lean agenda, Silberman points out, but bringing people together improves understanding and helps iron out potential problems between one facility and another. “We’re also trying to develop our people by getting them in more classes,” says Silberman, “training them in lean principles and tools, problem solving and confl ict resolution, and if they’re interested in going to a community college to develop themselves we have programs to help them from a fi nancial point of view and sometimes even a time point of view, depending on their function. We also bring videos in of what our product does and where it goes. We make components that go into vehicles, and it can be obscure unless they start looking under the hood. It helps them take ownership and feel connected to the customer.” Although the Haldex lean program is global in scope, it’s not a rigid global plan. “We asked each plant to create its own plan to become lean,” says Silberman, “and the change agents mentor them in that plan. It’s site specifi c, it’s not a generic plan. Some sites will go with six sigma earlier than others, because they have a need to use a powerful problem solving tool. Others are focused on supply chain for their own reasons. We tailor the plan for each site to make it work for them.” Another distinguishing feature is the tier Haldex “You ask a cell team to continually improve their quality, their throughput, etc, through small daily incremental changes. You send in a six sigma team to make a big step improvement” Tri Part provides Haldex Hydraulics with a single point of purchase for its precision machined parts. We supply our customers with multiple operation capability, integrated with engineering, craftsmanship and quality systems. Our mission is to be a leader in the manufacture of high precision machined parts, exceeding our customers’ expectations through continuous improvement, on time delivery and keeping costs low. Tri Part

Businessexcellence September 07 32 system that Haldex has created to recognize and monitor a site’s progress. It starts with copper and progresses through bronze, silver, and gold, to platinum (world class). Copper is the entry level, but it means the facility is actually doing something. “It has some KPI requirements for inventory, delivery and quality performance, so beyond just using the tools you have to have some level of success.” Moreover, copper is not awarded unless 100 percent of the site’s employees have been trained in the Haldex Way. Cell teams must also be in place, preventative maintenance and environmental management must be practiced, as well as value stream mapping. “Gold is an enterprise level lean measure,” says Silberman. “We no longer ask the plant how they are doing as a silo, we ask how they are doing with their suppliers, and we add focus to administration. They have already done the product stuff. Now we’re asking if product design is part of the lean structure? How about human resources, global purchasing and finance?” Finance people are tough to engage, says Silberman, “but they still need to be using the 5S tools and they still need to be process mapping. They still need to be aware who their customers are, so we’re getting them involved. We haven’t really developed platinum yet,” he adds, “because if we get everybody to gold we’ll be a world class company, and the leading sites will be platinum.” The lean strategy is also as flexible within a facility as it is between facilities. Each cell team has targets and goals that are relevant to them, but they are linked to the site’s KPIs. One area may have a quality target of 300ppm, for instance, while another may have 100ppm target, depending on the process, the level of automation, and the complexity. “We don’t tell each function what its KPIs must be; we tell them they must have them, they must be relevant to the site and the process and they need to be working on improving them. All these are visualized with charts and graphs, using red, yellow and green, so anybody walking by can see whether they are meeting their goals.” Another significant aspect of the Haldex improvement program is that it employs both lean and six sigma. Some scholars recommend choosing one or the other, but Silberman is in no doubt they work well together. “I think lean and six sigma fit perfectly,” he says. “Cell teams cannot solve all their problems. Eventually they come to a problem that is above their ability to solve. Even if they pull in some cross functional individuals it may still involve more time than they can spend to solve it. You ask a cell team to continually improve their quality, their throughput, etc, through small daily incremental changes. You send in a six sigma team to make a big step improvement.” Haldex