Achieving Excellence - MAPP

mappinc.com

Achieving Excellence - MAPP

Introduction | MAPP’s Annual Plastics Benchmarking ConferencePresented by:Laurie Harbour-FelaxManaging DirectorOperational Strategy andPerformance ImprovementStout RisiusAchieving Excellence -3--3-


-4-Market Overview Mergers & Acquisitions: lots of opportunity, buyers and money Financing Environment: strong climate but credit crunch Economic Climate: stable but uncertain Equity Markets: many private equity firms interested in manufacturing3.33.0VolumeValueTotal U.S. M&A Deal Volume and Value2Q 2004 – 2Q 2007$600$550Volume (in thousands)2.72.42.11.81.51.20.90.60.30.02.8 2.7 2.6 2.7 3.0 3.0 2.7 2.9 3.0 2.9 2.8 2.9 2.62Q 04 4Q 04 2Q 05 4Q 05 2Q 06 4Q 06 2Q 07$500$450$400$350$300$250$200$150$100$50$0Value ($ billions)Source: M ergerstat


-5-Market OverviewPrecedent Transaction Analysis: Selected Plastics TransactionsTransaction Value / EBITDA MultiplesIndustrial Plastics Automotive Plastics Plastic Packaging12.0x11.0x10.0x9.0x8.0x7.0x6.0x5.0xTransaction Value / EBIT2004 2005 200620074.0xPlastic Packaging companies have generated some of the highest multiples and therecurrently exists a very well defined valuation range for any type of automotive supplier.


-6-The Tipping Point• Manufacturing customersare moving to low costcountries• Significant overcapacity inplastics• Auto companies havewarned of softeningdemand for vehicles in thedomestic market• Substantial volumedeclines in all industriescould be the force thatpushes at-risk suppliersinto severe financialdistress


Consolidation Continues-7-


Speed to DetectionTime-8-Real Time Costs / Risks


-9-Strategic AlignmentStrategic Alignment Facilitates Collaboration and Speed to Execution


-10-Change Equals OpportunityCHANGE:Companies can choose toEMBRACE ITorFIGHT ITand suffer the consequencesCompany’s ability to MANAGE CHANGEis a key competitive advantage!


-11-Performance Improvement Program• Launched the Performance Improvement Programin 2006• One day operational assessment to assistcompanies with embracing change and developinga plan• Championed by MAPP• Sponsored by Conair – 50% Support• Assessments conducted by Stout Risius Ross/Extended Enterprise


-12-Operational ConsistencyMAPP Member Comparative Graph100%90%80%70%60%50%40%30%20%10%0%A B C D E F G H I J K LSeries1 48.3 55.3 56.3 55.0 57.0 65.3 58.5 60.2 57.8 66.2 43.2 64.1


-13-ClubCharacteristics• Financially stable• High value added• Long term focus• Driven by strategic plan• Invest in R&D• Proprietary technology• Operations excellence• Great program management• Collaborate with customer• Diversified customer base• Strategic marketing andbusiness developmentCompanies must improve their sophistication toalign their strategy, operations and financials


Introduction | MAPP’s Annual Plastics Benchmarking ConferencePresented by:Paul FontainePresident & CEOExtended Enterprise GroupJohn StrongVice President U.S. and AsiaExtended Enterprise GroupAchieving Excellence -15--15-


-16-Who is Extended Enterprise Group?A NICHE consulting firmspecializing in:• Launch Readiness• Supplier Assessments /Development Readiness• Lean ManufacturingImplementation• Process ImprovementSpecialist


-17-Product Gate Review ProcessDocument LessonsLearned and Open IssuesManufacturingReadiness PFMEAAPQP ReviewSupplier ReadinessPPAP Readiness R/Y/GProgram ManagementR/Y/GStrategic FilteringStrategic PlanningCapital Asset ManagementRequest for QuoteContract Management


-18-Product Gate Review Process• Acceptance of terms(Define Project Scope)• Managing Engineeringchanges• Terms and Conditions• Design responsibility• Warranty & Liability• Excuse ofperformance• Insolvency• CancellationRequest for QuoteContract Management


-19-• Capacity and capitalanalysis tools to verifycapacity and understandcurrent lifecycle models• Improve Capital equipmentuse• Improve capital MROstrategies• Recognize end of lifecycles• Leverage current capacityfor future programs vs.new investmentsProduct Gate Review ProcessStrategic PlanningCapital Asset Management


-20-Challenges Suppliers FaceStrategic PlanningCapital Asset ManagementStrategic (CEO agenda)OperationalPerspectiveStrategyOpportunityAssist Suppliers in thedevelopment ofcapacity to handleboth the strategy andthe implementation.Delivery CapabilityStrategicDeploymentDo the Right ThingTacticsCOMPETITIVEADVANTAGEDepth


-21-Product Gate Review ProcessStrategic PlanningCapital Asset ManagementRough Cut CapacityPlanning (RCCP)


-22-• Portfolio Development• Differentiates projectrate of return• Prioritize• Risk ManagementProduct Gate Review ProcessStrategic Filtering


-23-Product Gate Review ProcessStrategic FilteringPortfolioManagement(Filter Model)


-24-• World classcompanies manageby exception• Open issues aretracked and colorcoded creating visualmatrix that trackimportant issuesProduct Gate Review ProcessProgram ManagementR/Y/G• World classcompanies providecross functionalprogram managerswho are responsiblefor the deliverables.


-25-Product Gate Review ProcessProgram ManagementAutomatedMatrix


-26-• Suppliers areassessed and reviewstake place for thesuppliers capabilitiesrelative to:APQP ReviewSupplier ReadinessPPAP Readiness R/Y/GProduct Gate Review Process• Financial reviews• Operational reviews• Management reviews• Material reviews• Quality reviews• Process FailureMode Effect AnalysisReviews


-27-Product Gate Review ProcessAPQP ReviewSupplier ReadinessPPAP Readiness R/Y/GAPQPPPAPPPAP Roll-up


-28-Product Gate Review ProcessManufacturingReadiness PFMEA• Weekly manufacturingreadiness reviews withcross functional teamsare conducted• Visual Management toolsare used to measureperformance andcompletion of tasks• Provide reviews forproject activities that arerolled together to showreadiness for all sectorsof the program• Providemanufacturingreadiness preflightcheck list to ensureall facets ofmanufacturing arecovered. (RawReceipt to FinalShipping)• Conduct Run at Ratesand action plans foreach run at rate.• PFMEA reviews areconducted to drivedown RPN values


-29-Product Gate Review ProcessManufacturingReadiness PFMEAProject Roll-Up


-30-Product Gate Review ProcessManufacturingReadiness PFMEAVisual AidCRITICAL PROCESS


-31-Product Gate Review ProcessDocument LessonsLearned and Open Issues• Post project or programreviews are conducted• Lessons learned log ismaintained for each postprogram or project review• PFMEA reviews arecaptured and transferredto similar product• Corrective action logs arereviewed for trends andPFMEA action plans areestablished to lower RPNvalues• Once pilot is complete – Begin thenext project. As you go forward youmust• Accelerate process.• Train The Trainer• Share Lessons Learned acrossPlants – Divisions – Organization• Develop and Deploy a LL library.• Digital cameras allow us to photodocument.• Start to Finish – Pictures Tell a GreatStory• Communicate often-informal on thefloor


-32-Product Gate Review ProcessDocument LessonsLearned and Open IssuesFloor Metrics


-33-Questions & AnswersQuestions and Answers

More magazines by this user
Similar magazines