Introduction to

SKF Production System

Content

Foreword  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

The reasons for implementing SKF Production System  . . . . 6

Business Excellence and lean fundamentals  . . . . . . . . . . . . . . . . . . . . . 8

SKF Production System – how it fits together  . . . . . . . . . . . . . . . . . . . 10

Our priorities  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

The deployment process  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

The Tool-box  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

The implementation phases  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Measuring our performance  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Guidelines for success  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

3
 Getting down to basics with
SKF Production System
Towards Excellence

Foreword Our journey continues…

SKF Production System

SKF is taking a major step forward on its journey towards The SKF Production System is a simple approach, based on
Business Excellence. This next step, the SKF Production the fundamentals of lean thinking; things that anyone can SKF Quality 1 club
System, will drive the identification and elimination of waste understand and adopt. By a systematic and thoughtful
by con­tinu­ous improvement throughout our production units implementation, and repeated practice of lean basics, the
and processes. SKF Production System will become a natural way of working. Cost of non quality
It will bring valuable insights to all of us in our Business
The heart of our business lies in manufacturing, where success Excellence journey towards World-Class Manufacturing, and The SKF Bridge of Business Excellence
comes from sharing and applying best practical knowledge in it will strengthen SKF’s competitiveness and profitability.
technology, processes and tools. The SKF Production System
will drive one common way of working across the organization, This document will give you an overview of the concept, why The SKF Bridge of Manufacturing Excellence
equipping us to meet the challenges of today and tomorrow. it is needed and how it shall be operated. We look forward to
By getting down to basics it will help us focus on the effective seeing the SKF Production System in action; its implementation
SKF Six Sigma
and efficient creation of customer value. By working together starts right now.
and sharing the same measures of progress, we will benefit
from each other’s experiences and achievements and build a SKF Care
stronger and more profitable SKF.

Zero defect concept

Total quality management

The SKF channel concept

Claes Rehmberg Luc Graux

Director of Group Quality and Business Excellence Director of Manufacturing and Product Lines, Industrial Market The SKF quality management system
Chairman of Group Quality Board Chairman of Manufacturing Board

4 5
 implementing skf Production system
The reasons for implementing What is lean for SKF?
Lean is a way of working towards flow and resource efficiency. production costs, giving us the opportunity to invest and

SKF Production System

We do this by focusing on customer value, eliminating waste, engage employees in new businesses. Furthermore, there will
reducing variation and building a culture of continuous be more focus on professional development for our employees.
improvement with the involvement of everyone. Becoming
lean means that we create conditions enabling anyone in the We would like to emphasize that lean is a people focused
organization to contribute with continuous improvement system supported by processes and tools. Our lean journey is
The business environment has drastically changed over the continuously rising. In such a volatile and competitive activities in the value stream. It will also contribute to lower strongly connected to Business Excellence vision and mission.
last century, resulting in new requirements on production. environment, SKF faces the challenges of improving its growth
Over this period of time, production has been predominantly in a profitable way.
recognized as standardized production with large batches
and long lead times. The higher the volume was, the better Our journey towards lean is to fulfill today’s market demand
the economy of scale. Demand was usually high but forecast with a changing business climate. We need to focus on
was unreliable, resulting in high and unpredictable inventories. customer value, where production is more flexible and
Also, the success of the product always involved a greater controlled by a customer demand driven pull. Quality needs to
risk, since quantity was prioritized over quality. The business be considered in advance and built into our processes. Waste
climate at that time shaped the characteristics of mass needs to be removed in order to optimize our flow and
production. improvements driven mainly by the experienced operators
rather than only through experts. SKF has laid the foundation SKF Business Excellence:
Nowadays, things are completely different and changes occur towards lean with Business Excellence.
at a faster speed than ever before. Our customer expectations
Everyone, everywhere, everyday Vision
of quality, product diversity, delivery time, and innovation are
– to be world class.

This table presents the key characteristics of craft, mass and lean production organizations

 Craft production   Mass production   Lean production

Focus  Task  Product   Customer (value) To deliver value to our customers in

Operation   Single item   Batch and queue   Synchronized flow and pull the most effective and efficient way by
Overall Aim   Mastery of craft   Reduce cost and increase efficiency   Eliminate waste and add value eliminating waste in the entire value
Quality   Integration (part of the craft)  Inspection in second stage after production   Built in quality
stream and focusing on a demand driven Mission
flow, in a culture of continuous
Business strategy  Customization   Economic of scale and automation   Flexibility and adaptability
improvement with the development
Improvement  Master driven continuous   Expert driven periodic improvement  Operator driven continuous
improvement improvement and engagement of everyone.

6 7
 BE and lean fundamentals
Business Excellence We continuously eliminate waste
The core idea of lean is to maximize customer value while becomes easier and more accurate. The overall purpose of the

and lean fundamentals

reducing waste, which reflects in our Business Excellence SKF Production System is to help us to identify, eliminate and
mission in a very natural way. Waste is any activity that the minimize waste by continuous improvement.
customer is not willing to pay for and does not add any value.
Overall, waste results in slower processes, weaker and Waste exists at all levels of our organization, and ideally all of
inaccurate information flow, and higher production cost. us should be able to recognize it. For that reason, we classify
Business Excellence is the way we run our business to ensure Value stream: For every customer demand, there is a value Eliminating waste along the entire value stream creates faster waste according to the following eight categories:
our continued progress on the way to becoming the knowledge stream. The chain of processes defines the value stream. and more agile processes enabling constant adaption to
engineering company. By introducing the lean fundamentals By analyzing our processes and by visualizing the stream customer demand for variations. Information flow also
we support and give direction to our Principles. The lean of material and information, we will be able to identify value
fundamentals are presented in a logical sequence supporting and waste created in our processes.
an enhanced customer focus starting with Value and followed
by Value Stream, Flow, Pull and Strive for perfection. Flow: Information and material should flow without any dis­
turb­ances in the value stream. Each disturbance is generating
Value: Business always starts with the customer, and it is our waste for us, resulting in additional costs, defects, and delays.
mission to deliver value to our customer. Our customer is the We eliminate our disturbances by the appliance of defined,
one who defines the value of a product or service, and we agreed, standardized ways of working.
need to take this value into account in all our processes.
Pull: The flow of product, service or information is triggered Defects
by the customer demand. Accordingly, we need to obtain a
flow which is pulled by the demand.
Extra processing Overproduction
  INNOVATION  ·  SPEE
ITY  · D  · Strive for perfection: The ultimate goal is to continuously
  QUAL   SU
IT Y  · ST
AIN improve. We do this by striving to identify and address
B IL we AB
A improvement opportunities. In this way, lean is a continuous
O FIT ILI
TY
PR 1 learning process.
suppliers customers

PROCESS
2 Motions Waiting
3
continuous improvement
customer value
driven output
right from me
Standardized work

Lean fundamentals
we care

1 The value can only be determined by the customer

5 5

2 Wherever there is a customer demand there is a value stream

4
H ETHICS  ·  OPENNE 3 Information and material should flow without any disturbancees
·  HIG SS 
N T 
ER
ME
·   TE
AM
WO 4 Pull – make on demand only! Inventory Non used creativity
P OW R
EM K
5 Strive for perfection – Start now and continously improve while
Prerequesites – lean fundamentals can only be optimized
including all of SKF values, principles and drivers.
doing and learning Transportation

8 9
 SKF production system
SKF Production System
– how it fits together
The Business Excellence Thinking Model is our foundation for tools to support our actions in order to eliminate waste in the Business Excellence Thinking Model
understanding SKF Production System. It guides us in how to value stream and improve its flow. These are gathered in a
think and act in different situations. The upper part of the structured tool-box and used during the deployment process.
Thinking Model helps us to be effective, to go in the right Contribution to results and progress in our journey to
direction and do the right things. This is always the starting Business Excellence is evaluated through Key Performance
point, Values, Drivers and Principles of Business Excellence Indicators (KPIs).
VALUES & DRIVERS
are now becoming a natural part of the SKF culture. Business Excellence

Business Excellence culture

SKF Production System focuses on the lower part of the
Thinking Model – how to be more efficient, and do things right. INN OVATION  ·  SP
ITY  ·  EE D
UAL   ·  S
  ·  Q US
IL ITY T AIN
AB AB
FIT I LI

Firstly, we need a common and standardized deployment

O TY
PR
we

suppliers customers

PRINCIPLES
PROCESS

process. Secondly, we need a set of common and standardized

continuous improvement
customer value
driven output
right from me
Standardized work

we care
SKF Production System
H ETHICS  ·  OPENN
  ·  HIG ESS
  ·  T
ENT EA
RM MW
WE OR
PO K
EM
◆ Potential benefits ◆ Targeted benefits ◆ Realized benefits

Daily management
Baseline assessment Master plan
(anually)
Master plan review

Drives the change!

The deployment process

Define

Continuous

rol
Right

Me
improvement

Cont
from me

asure
We care
Customer value
driven output

ve
ro
An
p aly
Im se

Standardized Management ce
Systems
work s excellen
Toward

Tools and methods deployment

METHODS
Maturity assessment Quality Flow
Competence
management
Stability

• Design for Six Sigma • Supply Chain Standards

• Zero Defect concept • Channel concept
Quality • Andon system Flow • Assembly-focused manufacturing
• Audits • Flow layout
• Material handling
• Levelling

The Tool-box
• Demand on Driven Supply*

Competence management
• Skilling training methods
• Skill matrix

Stability • Daily meeting • Maintenance Excellence

• 8 Waste Identification • Resetting
• Value stream mapping • Defined work
• Visual management • Problem solving
• 5S

RESULTS KPI
Measuring our perfomance

Reference: Booklet of Business Excellence, 11620/1 – March 2012

10 11
 Our priorities
Our priorities

SKF priorities support us when it comes to making decisions and The first three priorities, Safety, Quality and Delivery,
balancing our resources. They are crucial for SKF Production are strongly related to our behaviour, how we act and set Safety
System when reducing or eliminating waste. They provide a priorities. By remaining loyal to the first three priorities, we will
set sequence for different situations, and reflect the long term sub­sequently contribute to the remaining priorities resulting
mindset versus the short term gain. For instance, if there is an in improve­ments in Cost, Working Climate and Environment. Quality Behaviour
issue with safety and quality at a given moment, the decision
should be made on the grounds of safety. Safety is always
priority number one. Delivery

Cost

Working Climate Outcome

Environment

When focusing on a given priority, we have to ensure that all

previous priorities are already considered;

1 Safety: Are we taking all needed initiatives to protect our 4 Cost: Are we taking initiatives to eliminate waste in our way
employees and ensure a safe environment? Safety first! of doing business while securing safety, quality and delivery?
2 Quality: Are we taking all required initiatives to improve and 5 Working Climate: Are we taking required initiatives to im-
secure the quality of our product, services and processes? prove working conditions, working climate and to support
3 Delivery: Are we taking all required initiatives to improve the people’s development within SKF and in our team?
performance of our delivery to internal and external 6 Environment: Are we taking initiatives to minimize impact
customers? on our environment and to care about external society?

12 13
 the deployment process
The deployment process Baseline Assessment
The deployment process starts with a Baseline Assessment,
where we evaluate our current state versus our ideal lean
state. This initiates the transformation towards lean by
identifying improvement areas, (called potential benefits), and
by cultivating a lean mindset in management. It is based on
multiple analyses, including interviews, assessments and
The deployment process of SKF Production System describes surveys amongst employees and functions. It covers a wide
a lean oriented way of working, and includes five main process spectrum of areas, such as lean level assessment, change
steps structured in the following sequence: Baseline readiness, etc.
Assessment, Master Plan, Daily Management, Tools and
Methods deployment, and Maturity Assessment. The Daily
Management and Master Plan review drive the change to
achieve the targeted benefits.

◆ Potential benefits ◆ Targeted benefits ◆ Realized benefits

Daily Management
Baseline Assessment Master Plan
(anually) Lean level
assessment
Master Plan review

Waste
Drives the change! identification
analysis
efine
Baseline
D

Continuous
rol

Right
Assessment
Me

improvement
Cont

from me
asure

We care
Customer value
driven output
report

ve
ro

An
p aly
Im se

Standardized Management ce
Systems llen
work exce
ards
Tow
Value Stream
Work load
Mapping (VSM)
analysis

Plant
Tools and Methods Deployment observation
“Waste walk”
Maturity Assessment Quality Flow
Competence
management
Stability

14 15
 the deployment process
Master Plan Daily Management Tools and Methods Deployment Maturity Assessment
Once awareness is created about our ideal lean state, the This process step describes how the local management The focus in this step is to build a system to implement tools In the Maturity Assessment we evaluate the level of trans­form­­
following step is to build a Master Plan reflecting the vision teams run the business and demonstrate daily support to and methods through a standardized routine for continuous ation and behavioural change in the factory. The evaluation
and mission. The leaders involve everyone in the team at the employees. Additionally, it monitors the effectiveness of improvements. In order to create a continuous flow, stability results in a Maturity Assessment score which is approved by a
different stages in the creation of the Master Plan, which is the Master Plan on a daily basis. This way of working drives needs to be achieved. For this purpose, the stability tools are qualified expert. Further on, benchmarking will help us to
renewed every year. Firstly, the management defines key the transformation. It is an enhancement of current daily first deployed. Extensive coaching and support are needed identify and recognize where best practices are implemented,
objectives to reach the vision. Secondly, targeted benefits are meetings on different levels, focusing on waste identification from employees with Subject Matter expertise during shop- encourage learnings and contribute to replication opportunities.
selected to support the key objectives. Last, a detailed planning and KPI development. KPI boards are displayed on the shop floor workshops, for example Kaizen sessions. The maturity
of what activities to focus on is carried out. Consequently, the floor and in each department to monitor the progress of of the factory determines how much of this support needs
Master Plan creation is a teamwork activity showing the goal, defined activities. external guidance.
reason and responsibility for each key objective. During
operational reviews by management, the Master Plan is the The Daily Management routine takes place on the shop floor
leading document, and a unique place where all our key and is a way for all the employees in the factory to be aligned
activities come together forming the foundation of our and to decide actions addressing deviations. In other words,
business. The Master Plan activities are structured around Daily Management facilitates learning, enables mutual trust
our SKF Priorities. and drives behavioural change towards a culture of
continuous improvement.

Workshop to create Master Plan

16 17
 the tool-box
The Tool-box Stability tools – What are they?
Stability gives the factory a solid foundation with stable, repeat­ 8 Waste Identification is a method used to ensure that our
able and predictable process results. The stability tools there­ entire workforce is able to identify waste, i.e. activities that do
fore focus on the visualization of current state, on value added not add value to our customers. Categories of waste are:
and non-value added activities, and the identification and
elimination of deviations. • Defect: Making defective parts or mistakes and spending
time on reworking
The Tool-box contains a selection of tools and methods that When we have a satisfactory level of stability in the factory, we Daily meeting allows us to act on deviations in the most • Overproduction: Making more, sooner and faster than
support us in achieving Stability, Quality and Flow in the factory, can then start to apply the Quality and Flow tools. The Quality efficient way. This consists of short meetings with a defined what is needed for immediate use, i.e. than the customer
in combination with Competence Management. The Tool-box tools help us to fulfil what we have agreed with the customer, agenda in which we: wants or requires. Work done without customer demand
is based on a lean approach for continuous improvement. The and to deliver zero defect products. The Flow tools help us to only increases cost.
ultimate aim of the Tool-box is to reach and sustain an efficient improve the demand driven production flow. By simultan­ • Review deviations • Waiting: Delay between any steps in our processes.
flow in the value stream. eously applying the Competence Management tools, we • Raise new deviations • Non used creativity: Non used capabilities, delegating
develop the competence of our people. People trained to use • Assign responsibility tasks to someone without adequate training, or not using
The prerequisite to achieve flow efficiency is first to create the right tools in the right way drive the change towards lean. • Agree on new work standards and people’s mental and creative abilities.
stability. Therefore, we start by applying the Stability tools. • Escalate issues that cannot be solved by the team. • Transportation: unnecessary movement of products,
materials and information.
Another element of the daily meeting is the “Go & See”, in • Inventory: Any work-in-process and finished goods that
which management is present on the shop floor, to support exceed what is required to meet customer needs.
and build mutual trust among employees and teams. During • Motion: Excessive movement by people, equipment or
• Design for Six Sigma • Supply Chain Standards this activity, the management also takes the opportunity to machines.
• Zero Defect concept • Channel concept review how defined work is practiced. • Extra processing: Using more energy, material or capacity
Quality • Andon system Flow • Assembly-focused manufacturing than is needed to make a product or a service – or adding
• Audits • Flow layout Problem solving is a structured method to identify root cause more value than the customer is willing to pay for.
of deviations and ensure that corrective actions are taken to
• Material handling
prevent reoccurrence – “Find the real problem, fix the Value Stream Mapping (VSM) is a method used to analyze
• Levelling
problem, make sure it does not come back”. Problem solving flow efficiency in a fact based manner. It allows us to agree
• Demand Driven Supply* follows the fact based Six Sigma improvement cycle; Define, on which elements are adding value or creating waste in
Measure, Analyze, Improve, Control (DMAIC). the value stream, whether it is material or information flow.
Competence Management The purpose of VSM is to visualize the current state in order to
• Skill training methods define a future state and agree on improvement actions.
• Skill matrix
Visual Management facilitates quick understanding of the
Stability • Daily meeting • Maintenance Excellence current situation by, for example, boards and signs. It ensures
• 8 Waste Identification • Resetting transparency throughout the organization by enabling every­
• Value stream mapping • Defined work one to see the same reality, to have access to the same
• Visual management • Problem solving inform­ation and to easily visualize deviations. Therefore
decisions can be made with speed.
• 5S

* Prev. New Supplier Delivery Concept – NSDC

18 19
 the tool-box
5S is a method we use to create a well-organized and clean Resetting is a process used to minimize changeover time Quality tools – What are they?
workplace. The 5 steps; Sort, Set in order, Shine, Standardize between products in order to increase flexibility. We contin­ The purpose of quality tools is to build in quality in our process and technology, working environment, suppliers and
and Sustain, result in “a place for everything, everything in its uously work to reduce and stabilize the resetting time by processes dealing directly with the prevention of non- human behaviours.
place and ready to be used”. It enables us to remove flow focusing firstly on organizational improvements throughout conformities in products, processes and customer deliveries.
stoppers by identifying and eliminating waste in all processes. the channel and support functions. Secondly, we focus on With quality tools we are shifting from a reactive working Andon is an organized help system aiming to prevent small
This leads to improved safety, quality and efficiency, releasing work methods and small modifications on separate machines, culture to a proactive way of working. Therefore quality tools disturbances from stopping the flow. On detection of a
time in the organization. and as a last step on technical or technological changes. enable the flow to run smoother. deviation, the operator signals for help and receives a direct
assistance to correct the deviation. A root cause analysis is
Maintenance Excellence aims at performing the right Defined Work is our factory standards describing how to run Design for Six Sigma is a method used at the design stage thereafter performed to ensure that the deviation will not
maintenance, with the right equipment, at the right time, the operations. These are developed and agreed with the of a product or a process. It enables us to evaluate the impact reoccur. Andon requires a well-defined support organisation
using the right people and for the right reasons. It consists working team and applied with discipline. As part of Defined of criteria variation on performance and conformance. As a to make it effective.
of two parts; Autonomous Maintenance (AM) and Planned Work we use Work Load Balancing to even out employee result it helps to adapt process parameters to equipment
Maintenance (PM). AM is performed by the operators in order work load in relation to customer demand. Defined Work capability and prevent non conformances. Audits are used to ensure that SKF complies with internal and
to prevent equipment deterioration. PM is performed by the forms the basis for our training, every day work and external standards, and to identify improvement opportunities.
maintenance department to increase equipment reliability continuous improvement. The Zero Defect concept applied to existing processes builds To prevent non-conformance we continuously work on
and availability. Maintenance Excellence helps minimize flow a “Right from Me” culture, with the objective to prevent maintaining and improving our standardized way of working.
disturbances that are caused by equipment stoppage and producing defective parts and to guarantee customer delivery. Our main internal auditing processes are supporting this:
optimizes maintenance cost. This concept is applied along the value chain: manufacturing product audits, Zero Defect risk assessments, business process
audits and system audits.

20 21
 the tool-box
Flow tools – What are they?
The purpose of the flow tools is to achieve a continuous flow and bottleneck. Buffers within the flow are dimensioned to ensure process steps and it works both for machining of bearings as product mix and are able to deliver consistently according to
pull in production to match our customer demand. The flow tools a continuous flow of products and an optimized work in well as for pure assembly cells. For bearing channels, the the production plan. Prerequisites for optimal levelling are short
aim to shorten the lead time from order to delivery, to improve process. This supports the First In First Out principle and also optimal layout combines inner ring and outer ring machining, resetting time, small batch production and single piece flow.
the delivery performance and to limit our inventories. Therefore the traceability along the value stream. assembly, final inspection and packaging.
flow tools cover a wide spectra of areas such as planning, Demand Driven Supply is a dynamic tool which connects
inventory, material handling, flow layout, logistics and supply. Assembly focused manufacturing refers to a production Material handling consists of a set of techniques to transfer data from the factory, logistics providers and suppliers in order
channel system organized in a U-shaped layout consisting material and information in an optimal way through the value to increase the reliability of supply. This helps us to reduce lead
Supply Chain Standards refers to tools, methods and audits mostly of assembly. Based on a pull system that feeds material stream. It is based on defined frequencies and material time, inventories and unplanned rescheduling. Moreover, it
to capture customer demand and plan our activities along the from the outside into the U-cell in a set sequence, this layout routings according to customer demand. allows for a supply that better matches the customer demand.
value chain accordingly. supports the continuous material flow. Furthermore, it
facilitates workload balancing, flexible output control, waste Levelling is a production planning technique including safety
The Channel concept creates a continuous flow and pull in reduction and product quality. In this type of manufacturing, time buffers. It allows for managing variations in customer
our production, by making sure the material inflow matches the value added is directly created by the operators. demand in relation to installed capacity. It means production
our customer demand. A channel consists of a specific set of is running at the customer demand rate with minimal use of
machines and equipment that produce a range of products in Flow layout enables waste reduction in transportation, better inventory. Levelling results in a repetitive schedule which
a defined sequence with a buffer management system. Its communication and allows for faster reaction time on devi­ allows for balancing our workload. By using both time and
output is limited by the slowest process step, known as the ations. This layout defines the physical location of the different material buffers, we have room for variations in volume and

22 23
 Competence Management – what is it?
Competence Management is needed for the implementation ensure that we have sustainable knowledge and continuously Skill Training develops our people to learn by practicing the Skill Matrix allows the managers to evaluate and support the
of SKF Production System in supporting us in using the tools improve our abilities to run our processes according to work defined work in a formalized way. It takes place in learning development of skills of the employees and teams in relation
correctly and using our skills in the most efficient way. standards. Defined work needs to be developed in order to centres at the work place. Our ambition is to install a learning to the required competencies in order to run our processes.
Competence Management comprises many important secure specific knowledge in a certain area. License to Drive* centre at every factory in the future.
elements. We highlight 2 major aspects: investing in and is, for instance, needed in given job positions.
developing competence for our employees. We need this to

* Licence to Drive: Qualification to specified minimum prerequisites

for a certain job position

24 25
 the implementation phases
The implementation phases Phase 1: Transition
The transition phase has four main objectives. The first objec-
tive is to build mutual trust and involve everyone in the trans­
form­ation. The second objective is to build competence in lean
thinking. The third objective is to prepare for stability, and the
last objective is to learn how the lean tools are interacting in
a lean system. All objectives are dependent on each other for
Going towards lean production is a gradual transformation. their success. The factory selects one practice ground, which
While the deployment process provides learnings in form of will function as a reference area for the rest of the factory.
“how to work”, the implementation phases describe how we
apply SKF Production System. It is structured around three 
phases: Transition, Expansion and Acceleration. Methods and
tools are introduced step by step securing the implementation
over time at the same time allowing for the behavioural
change. The speed of transformation depends on how fast the Phase 2: Expansion
change is embraced by the leaders, as well as on the amount The objective in the expansion phase is to expand the lean
of support the factory receives from the organization in order behaviour and practices from the practice ground to the entire
to manage the change. factory, as well as further to reduce waste in the value stream.
Competence in lean tools is built as broad and deep as neces-
sary. As consistent use of these tools and working in the cor-
rect way becomes routine, it is easier to identify deviations
and eliminate root causes. We gradually develop a proactive
way of working resulting in improved quality and flow.

Phase 3: Acceleration
In the last phase, self-sustainable systems – as a systematic
way of working – result from execution with discipline. The
continuous improvement routine becomes part of the factory’s
DNA. Stability, flow and quality, as well as speed in processes,
are now achieved. Standards have been systematically imple-
mented in all processes and are continuously challenged
allowing quick identification of deviations. Employees solve
problems in real time in a structured way when deviations
occur. The factory team continuously strives for perfection.

26 27
 measuring our performance
Measuring our performance

The results from applying our tools and methods in SKF There are two categories of metrics and KPIs. The Leading
Production System are monitored and used to verify improve­ ones are used to monitor the drivers influencing our final “Lagging” KPIs “Leading” KPIs
ments. Therefore we track our performance by using metrics results while the Lagging ones measure the performances KPI
and Key Performance Indicators (KPIs) measured and aligned achieved through our activities. Safety • Number of accidents
with our priorities.

• Number of complaints
Quality • Cost of non quality
• SLR

• Broken promises Lagging KPIs also need to be

• Availability balanced with leading KPIs such
Delivery • Make Leadtime as “Near misses” correlating to
• Resetting Safety and “Process Capability”
• Number of stock days and “Process Reliability” corre-
• Production result lating to Quality”.
• Productivity
Cost • Capacity utilization
• Efficiency*
• Manufacturing cost level

• Individual development plan

Working Climate • Working Climate Process – WCP

Environment • Total use of energy

* An alternative to Efficiency is OEE – Overall Equipment Effectiveness which is an internationally wide spread standard. SKF will decide upon implementation in due course.

The illustration shows defined lagging KPIs, and how KPIs are related to our priorities

28 29
 guidelines for success
Guidelines for success We need to be willing to change our current way of working, and
understand how to behave to create a strong sense of direction.
Managers need to create a long lasting commitment, meaning
Long lasting
commitment
that we need to be able to visualize the long-term desired
state, and act in small steps in our journey towards lean.

We are all guided by our SKF values, drivers and principles in We are all required to work systematically according to the
the Bridge of Business Excellence which help us to do the agreed and defined way of working. We also need to improve Discipline
right things right. In order to successfully become and sustain our standard in a structured manner.
lean, we also need to develop certain behaviours in how we
think and act.

It is crucial to develop and maintain a clear message, and to

communicate it as visually as possible along the journey. With Transparent
a transparent communication we will create an environment of communication
mutual trust where people do not hesitate to highlight and act
on deviations.

We need to be able to identify knowledge and skills in people, and

create opportunities for people development. Managers need Providing the means
to expand people’s capabilities through coaching and guiding for development
our employees how to get things done. Expertise needs to be
built within the unit, and the organization needs to provide the
means for the development of the organization and the people.

Furthermore, we need to demonstrate respect for people, and

utilize our people’s knowledge. It is important to make every Respect for people
effort to listen to and understand each other, take responsibility
and do our best to build mutual trust.

These behaviours need to be nurtured in order to safeguard a successful progress towards excellence.

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PUB GC/P7 14989 EN · February 2015

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