Leading with vision, succeeding through people

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1 SIQ Excellence Arena 2013 Leading with vision, succeeding through people Ehrtfried Baeumel, Robert Bosch GmbH Bamberg Plant 1

2 Content Presentation of Robert Bosch GmbH Bamberg Plant Leading with Vision: Creating and Deploying a Sound Strategy Succeeding through People: Sustaining Excellence into the Future 2

3 Robert Bosch GmbH Bamberg Plant 3

4 Bamberg Plant in the Heart of Europe Bamberg Bamberg 4

5 Bamberg a gorgeous place to live and work More than 1000 years old archbishop s see, former imperial city UNESCO World Heritage since 1993 Regarded as one of the most beautiful German cities, embedded in a wonderful nature and riverside landscape of Regnitz and Main 71,000 inhabitants, centre of the rural region, school and university town Varied leisure activities and offers for culture (e.g. Bamberg Symphony Orchestra), arts, sports (e.g. Basketball) and congresses 5

6 Bamberg Plant: A Part of the Bosch Group Bosch Group >52.3 billion euros in sales, 306,200 associates, 290 manufacturing sites Business Sector Automotive Technology Gasoline Systems BaP Diesel Systems Chassis Systems Brakes Business Sector Industrial Technology Drive and Control Technology Business Sector Consumer Goods and Building Technology Power Tools Chassis Systems Control Car Multimedia Electrical Drives Automotive Electronics Starter Motors & Generators 7,300 associates 1 billion Euros turnover Automotive Aftermarket Packaging Technology Solar Energy Thermotechnology Households Appliances Security Systems 6

7 Plant locations Plant 1/ 2 Plant 3 Plant 4 since 1939 area of production 100,000 m² 1,980 personnel capacity production - spark plugs - piezo actuators administration service department training development since 1969 area of production 30,000 m² 1,000 personnel capacity production - gasoline injectors - natural gas injectors - exhaust gas treatment injectors service department development since 1979 area of production 93,000 m² 3,880 personnel capacity production - common rail injectors - nozzles - sensor elements service department development 7

8 BaP Products and Components Clean and Economical Driving Diesel Systems Gasoline Systems Common rail injector 1st/2nd generation Spark plug Common rail injector 3rd generation (piezo) Sensor element for lambda sensors Nozzle Injection valve Piezo actuator High pressure injection valve 8

9 Bamberg Plant Core Tasks Production Production of technologically demanding products and components for Gasoline Systems and Diesel Systems divisions Lead Plant Coordination of the production network and provision of services and support for 20 plants in 11 countries worldwide Anderson Homburg Bosch IPN Bursa Rodez Examples BaP Charleston Curitiba Wuxi Bangalore 9

10 Content Presentation of Robert Bosch GmbH Bamberg Plant Leading with Vision: Creating and Deploying a Sound Strategy Succeeding through People: Sustaining Excellence into the Future 10

11 The Heart of Excellence: BaP Vision and Strategy 11

12 The Heart of Excellence: BaP Vision and Strategy 12

13 Sustaining Excellence into a Challenging Future Measuring Strategic Achievement: BaP Scorecard Mission Field Result Focus Customer Products Services International Network Processes Strategic Goal Figure Division/ Plant Cost Development (T:T cumulated) BaP m EUR Achieving Cost Leadership GS THEK Gap m EUR DS GS Developing BaP Future State HEK-MZ Gap m EUR DS Aspiring Highest Customer Satisfaction Assuring High Quality for Products, Processes and Purchased Parts Ensuring Successful Start-ups Managing Services Efficiently Actively Steering the International Network Performing an International Simultaneous Engineering Center Driving Bosch Production System Using Process Management Efficiently Overall Evaluation of Customer Perception 0-km Complaints Index for Problematic Suppliers (PLKZ) PSB at QG are passed successfully Gross Margin of BaP External Services Turnover per Service Technician Unit Responsible Leader BaP % PT-D GS DS BaP m EUR TEF BaP Thousand EUR GS Delivery Performance (LIWAKS) of IPN % DS Target Costs Achievement of IPN KE: SPARTA: Fixed Costs Reduction BaP GS m EUR EV14: Target Costs in Local Currency per Local Piece for IPN Plants GS Currency per Piece DS: Tracking PHEK Targets DS m EUR TEF ISEC Index BaP % MFE Implementation of FK Training and STeP-up Maturity Level Process Management BaP BaP BaP % BPS BaP ppm PLKZ Average Number of Deviations Maturity Level CTG CTG PM QMM CP/PQA-BaP MFE PT, PT-D DBE Defined plant figures for every strategic goal Yearly target agreement within the plant management Top down target deployment to each employee or production team Tracking of the figures during the year Bosch Bamberg - The Driving Spirit Extending Leadership in Technology and Innovation Fostering Sustained Environmental Protection Maintaining Performance and Enhancing Motivation and Qualification of Our Associates Start-ups of New Technologies BaP Number TEF Start-ups of New Products BaP Number PM Tons per CO2-Reduction BaP meur Added TEF Value Idea Management BaP Points Long Term Sickness Rate BaP % HRL Competence Completion Level BaP % 13

14 Sustaining Excellence into a Challenging Future Refinement and Adjustment: Strategy Process Results on BaP scorecard SWOT of each stakeholder Future Working Group Leadership Working Group Evaluate strategy Review strategy process Evaluate target achievement Review stakeholders selection Identify capabilities and gaps Identify strategic challenges SWOT analysis, derive strategic measures Discuss future orientation of BaP Develop/refine strategy Review/refine vision, mission, strategy map, scorecard and BaP competences All managers discuss and endorse changes Deploy strategy Align business plan next year with strategy Prioritise strategic goals, define focus topics Policy deployment Strategic challenges Strategic measures Vision Mission Strategy map Scorecard Needed BaP competences Prioritized strategic goals Focus topics Focus processes 14

15 Focus Topics 2013 Bamberg Plant Prioritizing Strategy Every Year: Focus topics 2013 Prioritized strategic goals Focus approach Associated process Resp. Increase in efficiency in value streams and administrative processes Policy deployment process through System and Point CIP MOE AL Achieving Cost Leadership Reduction of inventory Supply chain process LOG Improvement of flexibility of labor costs Human resources management process HRL Maintaining Performance and Enhancing Motivation and Qualification of Our Associates Improvement of personal leadership behavior Driving TOP (team oriented production) Basics of leadership TOP process AL MOE 15

16 1 st Path of Strategy Deployment: Target Deployment to Individuals and Teams Business Plan (Prioritized) Strategic Goals Top-down target deployment to indirect associates and production teams Target agreement with associates and teams Yearly personal or team review Evaluation of target achievement previous year During the year: Definition, deployment and review of measures to reach targets 16

17 Sustaining Excellence into a Challenging Future 2 nd Path of Realising Our Strategy: The BaP Processes (incl. product value streams) 17

18 Sustaining Excellence into a Challenging Future Strategy Deployment in Processes or Value Streams Business Requirements for the process or value stream Strategic Goals Business Plan Stakeholder requirements Changes during the year Stabilize the reached target state Implement this projects with PDCA approach Define sub-projects to reach this target state Define a target state for this process step Standard procedure KPI target Stability criteria Select the most important target within the Business Requirements Select the sub-process with the major influence on target achievement Select the process step with the major influence on target achievement KPI tree for target 18

19 Sustainable Target Achievement Defining a Target State: KPI (new target value) Stability Criterion (action limit, stability time) Standard (how to reach the target) Performance Initial State Business Requirments Prioritisation Definition of target state CIP Project Process improvement Definition of new standard Stabilisation Frequent confirmation of target state Fast reaction on deviations Cause analysis and sustainable problem solving Daily Management Ongoing process confirmation Fast reaction to recover the standard Time 19

20 Developing and Deploying Strategies at BaP Achieved Results in Processes and on Plant Level Performance Indicators Achieving Cost Leadership Aspiring Highest Customer Satisfaction Strategic Results 20

21 Sustaining Excellence into a Challenging Future Achieved Business Excellence EFQM Excellence Award 2011: Double Prize Winner for Leading with Vision, Inspiration and Integrity Managing by Processes EFQM Excellence Award 2012: EFQM Excellence Award Winner 2012 In addition two Prizes for Leading with Vision, Inspiration and Integrity and Succeeding through People 21

22 Developing Strategies for Sustainable Success Leading with Vision Means Driving the Strategy Run Strategy Process Pursue Strategic Goals Drive focus topics Think strategically Communicate Vision and Strategy Deploy strategic targets When all associate know, understand and accept where the journey goes and know their targets, they are willing and able to support it 22

23 Content Presentation of Robert Bosch GmbH Bamberg Plant Leading with Vision: Creating and Deploying a Sound Strategy Succeeding through People: Sustaining Excellence into the Future 23

24 Strategic Challenges of Bamberg Plant We need unshakeable commitment of all employees to our strategy We need even more expertise for technology and methods in the future Our associates are the key for sustaining our excellence! 24

25 More expertise for technology and methods 25

26 26

27 Sparking young peoples enthusiasm for technology: Children experience simple technical tools and use them for creative tasks Aims Spark young childrens enthusiasm for technology Increase long term attractiveness of technology and Bosch 27

28 Sparking young peoples enthusiasm for technology: Approach & Deployment Donation of special construction kits to kindergartens and elementary schools Training of childminders and teachers in the usage of the kits The children acquire a tool license and work in teams on different tasks Results 73 partnerships with educational institutions Training of 144 childminders Costs to date: ca. 60,000 Over 2,500 children in the region are enthusiastic about playing with the construction kits 28

29 Sound and Extensive Apprenticeship at Bamberg Plant: Small factory within the factory run by commercial and technical apprentices on their own authority Aims Prepare the apprentices perfectly for their future tasks by training on the job Learn, understand and use the improvement process and BPS Foster entrepreneurial thinking 29

30 Sound and Extensive Apprenticeship at Bamberg Plant: Approach & Deployment 3 Junior Factories in different areas Mission: maintenance and repair of specified tools needed for production Teams: 3 apprentices per JF, working proactively 8 weeks assignment to the Junior Factory Results Apprentices are enthusiastic about their JF Significant improvements and savings Award for Special Orientation on Associates of Bosch Diesel Systems 2010 Experience has shown that training only makes sense when there is an immediate or subsequent transfer of knowledge to one s workplace. We contribute effectively to the production process. We detected waste in our processes 30

31 Speed and Agility in Process Improvement Comprehensive and sound training of all leaders in systematic process improvement methods and involvement of the employees Aims Consistent target deployment and process improvement in all processes Improving leadership behaviour, involvement and empowerment of all associates 31

32 Speed and Agility in Process Improvement Approach & Deployment Integrated training concept, all levels Weekly transfer days over a long period (>1 year) Focus on consistency in action Results Leaders work systematically on the most important improvement topics Increased associate involvement and satisfaction Significant improvement of process performances Product XY : Daily Output Increase % Jan - May 10 Jun - Dec 10 Jan 11 Feb - Apr 11 May - Dec 11 until Dec 12 32

33 Program to Preserve and Improve the Health of our Associates: Multimodal intervention program for people with health problems Aims Preserve or regain health and improve quality of life Learn ways to lead a healthier, longer life 33

34 Program to Preserve and Improve the Health of our Associates: Approach & Deployment Cooperation with external healthcare provider saludis Teams of 10 selected associates Duration 20 weeks including: information, physical activities and mental activation Homework program Supervision by medical officer of the plant Results 93% of the participants appreciate the concept as good or very good 97% show measurable improvements of their physical conditions (e.g. higher oxygen absorption) 34

35 Gaining the Associates Commitment Dialogue Information Regular Communication Emotion Based on the four components of communication, necessary to reach and to inspire people Aims Inform associates about the actual situation, challenges and plans Commit all to strategy, initiatives and actual measures Involve and encourage people to support this 35

36 Leading with vision, succeeding through people Gaining the Associates Commitment Approach & Deployment Results Associates highly appreciate the open communication, they are committed to the plant s strategy and encouraged into initiatives and projects 36

37 Thank you for your attention Ehrtfried Baeumel, Robert Bosch GmbH Bamberg Plant 37

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