Andrew Jones May 2011

Introduction
Andrew Jones - Managing Director, Klarius Group Ltd Studied Physics at Leeds University Managing Director of UK based manufacturing companies Arvin Replacement Products Ltd Eminox Ltd Edbro Plc Lean Consultancy, including manufacturing and the RAF, USAF I like winning!

Our complete aftermarket range of OE quality products covers 99% of Europes most popular cars. Thats another big difference.

Trade shows

Weve manufactured for many of the worlds most prestigious car brands but remain dedicated to the aftermarket. Thats a big difference.

100,000+ parts for 99% of Europes most popular cars. 5,600 delivery points in 136 countries. Europes largest OE Quality aftermarket manufacturer.

The Klarius Group employs 1,200 personnel across Europe, and has an annual turnover of 350 million Euros

Klarius Group - Key Customers

Buying Groups

OE/OES

National Distribution

Fast Fit

Klarius Racing

Independe nt Distributors

Klarius Group - OE Quality

OE quality standard of Klarius and QH products
All our products are produced to reach or to exceed the OE quality. The OE quality is KlariusQH standard of manufacturing. The continued success in the supply of original equipment (QH products) reflects the Groups consistently high quality standards across the whole product range.

Klarius Group - In detail

Klarius Group is the largest European manufacturer of aftermarket car parts today. The Klarius Group operates five high-volume Manufacturing Plants, a Research & Development Centre, four European Technical Centres, eight International Logistics & Distribution Hubs, and eighteen national and regional Stock Warehouses based across Europe. Klarius Group Headquarters are located in Manchester (UK).

Headquarters in Manchester (UK) 1200+ Employees 5 Manufacturing Plants

3 in UK 1 in Spain, 1 in Germany

5 Research & Development & Technical Centres

3 in UK 1 in Spain 1 in Germany

Klarius Group Europes largest manufacturer of aftermarket car parts

Klarius Group
Klarius Group supplies: Aston Martin, GM, Jaguar, Land Rover, Nissan, Renault, Peugeot, VW and many others... Major European shock absorbers manufacturer (Bilbao, Spain) Largest European type approved exhausts manufacturer (Cheadle & Lancaster, UK) Key European manufacturer of OE water pumps (Colwyn Bay, UK) Major European rotation electrics manufacturer (Oranienburg, Germany)

Klarius Group Technical Centres

Technical Centre Missions
Klarius Group designed, tested, manufactured and introduced over 5100 new parts so far this year Technical centres for Emission Control, Suspension, Braking, Water pumps, Rotating Electrics, Transmission Responding to the new market applications Conforming to specific legislation Certified by customers Lean responsive manufacturing

Klarius Group - World class logistics

Weve manufactured for many of the worlds most prestigious car brands but remain dedicated to the aftermarket.

Its one thing to manufacture the parts and another to have them available, but to deliver them on time is a big promise to make.

We dont just make car parts!

Klarius Group Logistic organisation

Klarius Group now offer over 100,000 parts, covering the majority of the European Car Parc, supplying over 80,000 parts every day, to over 5,600 delivery points in more than 136 countries.
European Distribution Organisation
8 International Logistics & Distribution Hubs: -France (Lille) -Germany (Unna) -Ireland -Spain (Bilbao) -The Netherlands -UK (Hinkley & Cheadle) 18 National/Regional Warehouses: -France -Germany -Spain (Madrid) -Ireland -Netherlands -UK

Klarius Group Broadest Aftermarket product offering

OE Quality manufacturer 97% of the European car parc available 5 600 delivery points in more than 136 countries 80 000 parts delivered every day 1 Klarius QH part fitted every second

Klarius Group 7 family product Produits ranges

Brakes
Brake Brake Brake Brake Brake Brake Brake Brake Drums Shoes Discs Pads Calipers Cables Hoses Cylinders

Emission control
Exhaust Tubes & Silencers Accessories / Mountings Catalytic Converters Diesel Particulate Filters

Steering & Suspension Transmission

Clutch Kits & Components Dual Mass Flywheel Clutch Cable Clutch Master Cylinder Clutch Slave Cylinder Concentric Slave Cylinder CV Boot Driveshaft CV Joints Wheel Bearing Kits Engine mountings Cables Spigot bearings Universal joints Suspension Arm / Ball Joints Suspension Bushes Stabilizer Links Tie Rod End Drag Links Top Strut Mounting Kits & Components Suspension Spheres Steering Racks Shock Absorbers Coil Springs Gas Springs

Auto Electrics
Alternators Dynamos Starters Commercial Ignition

Cooling

Engine

Water Pumps Thermostats Radiator Caps Radiators Intercooler Expansion Tank Air Conditioning Components

Drive Belts Drive Belt Kits Timing Belts Timing Belt Kits Tensioners Crankshaft Pulleys Engine Mountings

Principles of the Klarius Business System

The Customer defines value Deliver Value to Customers on Demand Standardize and Solve to improve Transformational Learning requires deep personal experience Mutual Respect and Shared Responsibility enable higher performance

Basic ideals derived from decades of experience

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Deliver Value to Customers on Demand without waste

Flowing 1-by-1 at Takt Time Zero Defects is achievable Customer Pull triggers action Increasing Velocity motivates improvement

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Standardize and Solve to Improve

Standard Work, the current best known way Root cause problem solving vs. firefighting Deming Cycle of Plan, Do, Check, Act Constant improvement is sustainment
A C
STD WORK

UNTRAINED

POLICY
O PR AP AP AP

Performance

LACK OF MOTIVATION INSTRUCTIONS LOW STAFFING

WORK FLOW WRONG FUEL IN CAR NO FOLLOWUP

LS V V VA

Time

NO DUE DATES N IO AT IC N MU OM C

SUPPLIER SCHEDULE
LA TE

POOR COORDINATION

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Learning by Doing
R e q u i d d e e p p e rso n a lexp e ri n ce . re e Le a rn b y d o i g . n H o w m a n y g o l b o o ks d i Ti e r W o o d s re a d to g e t th a t f d g

good? Rapid Improvement Events

A highly effective way to practice change. How many will we have to do to be expert at change?

Postponed perfection is the enemy of improvement

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Value Stream Analysis

ss eccuSr o hcaor ppA f

Deliverables
qAgree qValue

conducted with leadership team

on the Key Performance Measures Stream Mapping (Current, Ideal, Future)

qBaseline qRapid

current performance against Key Performance Measures Improvement Plan (DO IT!!!!!)

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A3 THINKING
TITLE : _____________________________________________ __ Date Started : _______________ Current Date : ______________
1. Reasons for Action 4. Gap Analysis

Team : _________________________________________ _ Review 7. Completion Plans Team : ___________________________________

2. Initial State

5. Solution Approach

8. Confirmed State

3. Target State

6. Rapid Experiments

9. Insight

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 I am the Leader in the organisation creating the culture ; LEAN is our way of life Some Examples Internal manufacturing projects,

Lean Implementation In Klarius

New Product Development Project

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Manufacturing Project
Problem; Declining sales per part number More and more part numbers are required to sustain the volume Large batch sizes were unrealistic Too much working capital Poor customer service Solution Use Lean tools, Kanban system for material flow Setup reduction on each and every process (bottleneck first) Drive quality improvements Employee buy-in focus and leadership

Average Batch Size

Average Batch Size Exhaust

Availability

Working Capital

44 % Reduction

The Design Process

The Equipment

Technical Centre Our Centre of Innovation The problem: Only developing 15 parts per month 16 weeks leadtime No customer focus 15 weeks of work in progress No competitive edge!!! Low levels of innovation, low productivity, not LEAN!!!!!

Tech Centre Improvements Klarius Year 1

Productivity increased dramatically Team size remains unchanged (25 heads) Work schedule is Customer Focused / Driven Jobs completed per month from 25 > 100 in 12months period Rapid Development is possible & improved MFR links New types of work undertaken by department Catalyst Development Quality improvements

Tech Centre Year 2/3 in Lean - Sustain

Maintaining 100 per month development run rate (even through Christmas period team flexed working hours to maintain output) Team members cross trained for improved cover and flexibility Implementation of visual T Card system to manage work Improved customer focus as more customers use our service Automated work prioritisation in line with customer demand Improvement in work area 5S and upkeep Creation of office & canteen environments with layout change

Team continues to improve independently

Tech Centre 3 Years in Lean

Pro d u cti ty i cre a se d d ra m a ti l y vi n ca l Te a m si re d u ce d b y 2 ze W o rk sch e d u l i C u sto m e r Fo cu se d / D ri n e s ve J b s co m p l te d p e r m o n th fro m 1 5 > 1 0 0 i 1 2 m o n th s o e n p e ri d o R a p i D e ve l p m e n t i p o ssi l d o s b e (less than one week is regularly achieved) T h e te a m h a s d e ve l p e d co n fi e n ce to i p ro ve fo r o d m th e m se l s ve without needing permission .

Output improvements- Klarius Year 1

CI Event Fast Track Cats

CI Event Cars Layout & Prep Area

CI Event Jig Methods

CI Event Jigs Layout

Output improvements- Klarius Year 2

Maintained during Christmas holiday

New office & canteen

Output improvements- Klarius Year 3

Technical Centre Our Centre of Innovation

The problem; the progress so far Only developing 15 parts per month, currently 140 per month 16 weeks leadtime, 3 weeks lead time (tests are carried out every Friday) No customer focus, now customer focused 15 weeks of work in progress, 2 weeks of WIP No competitive edge!!!, Market place has recognised our progress, more orders!!! Low levels of innovation, low productivity, not LEAN!!!!! We are using lean as the way of life! One every 2.5 years, 2 catalogues issued in one year!