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More than 115,000 employees in about 100 countries
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Orders in 2007: $34.3 billion
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Revenues in 2007: $29.2 billion
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Listed on Stockholm, Swiss and New York exchanges; traded on SWX Europe
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A leading power and automation technology company with strong market positions in core businesses
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We help our customers:−
to use electrical power efficiently
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to increase industrial productivity
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to lower environmental impact in a sustainable way
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Headquarters: Zurich, Switzerland
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More than 115,000 employees in about 100 countries
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Orders in 2007: $34.3 billion
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Revenues in 2007: $29.2 billion
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Listed on Stockholm, Swiss and New York exchanges; traded on SWX Europe
Presenter
Presentation Notes
What is ABB? ABB is one of the largest power and automation technology companies in the world. ABB is an acronym made up of the first letters from the names of our two parent companies - ASEA AB of Sweden, and BBC Brown Boveri Ltd., of Switzerland. These two companies merged in 1988 to create Asea Brown Boveri, better known as ABB. Today, ABB employs 109,000 employees in around 100 countries. We have two core businesses – power and automation technologies – in which we hold market leadership positions. We are number one or number two in nearly every business we compete in. Company headquarters are in Zurich, Switzerland. In 2006 we had revenues of $24.4 billion. Our President and CEO is Fred Kindle, who assumed his role on January 1, 2005. ABB is a publicly traded company, which means it is owned by shareholders. Shares of ABB stock are listed on exchanges in New York, Stockholm, Frankfurt and London/Zurich.
Transformers, high- and medium- voltage switchgear, breakers, automation relays
Substations, FACTS, HVDC, HVDC Light, power plant and network automation
Low-voltage products, drives, motors, power electronics, and instrumentation
Control systems and application- specific automation solutions for process industries
Robots, peripheral devices and modular manufacturing solutions for industry
Market-leading positions in most key product areasIntegrated solutions for grid reliability, productivity and energy efficiencyRobust global value chain to serve established and emerging marketsExtensive global network of value-added channel partners
Every organization can be viewed as a system that has one key constraint that limits the system’s performance relative to its goal
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In order to manage the performance of the system, the constraint must be identified and managed correctly
The 5 Focusing Steps:1. Identify the constraint 2. Exploit the constraint 3. Subordinate to the constraint4. Elevate the constraint 5. Go back to step 1
TOC consists of two primary collections of work:
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The five focusing steps and their application to operations;
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The logical Thinking Processes for analyzing logical constraints and conflicts related to human behavior
Optimization of raw materials stock levels Buffer management for materials & suggestions for new stock levels where needed (increase or decrease current safety stock)Workflow with notifications on red zone penetration + recording reasons of delays + Pareto chart (POOGI)
Factory feedback is positive:After analyzing data from nearly 2 months, we are confident that conclusions and proposals are correctFunctionality enables reacting quickly to changes in inventory values, which was not possible earlier, as we didn’t have time to monitor values manuallyWe are very happy, continuing to use the functionality and expanding it to other product lines
S-DBR way – for “typical environment”Buffer management as difference of time passed between planned start of order and the present, compared to size of the buffer
DBR way – for “optimized environment”(Touch Time > 40% Throughput Time)
Buffer management as difference of planned and actual times of operations, compared to size of the buffer
How standard SAP PP functionality can be used for TOC purposes:1. CCR identification
Capacity Evaluation – utilize Load vs. Capacity report for all work centersSet CCR as a work center with finite capacity; set all other resources as infiniteModel time buffers in routings (use interoperation times and floats before and after production)
2. Exploit & SubordinateRun Capacity Leveling for CCR (dispatch orders to constraining work center) => CCR is fully loaded in specified time horizonAutomatically adjust up- and down-stream operations according to CCR sequence – so called mid-point scheduling
3. Execute & ControlUse start times of first operations in a path for “do not release earlier than”Use standard SAP Availability To Promise transactions to ensure kitting in front of release orders to productionDevelop ConWIP behavior on top of standard Production Order Information ReportControl execution and provide single prioritization system by enhancingstandard SAP with buffer management
Alex DAlex D’’Anci is Regional Manager for Anci is Regional Manager for ABBABB’’s Operations Development s Operations Development GroupGroup’’s regional center serving s regional center serving Europe and Africa. He has worked in Europe and Africa. He has worked in diverse organizations for 30 years, in a diverse organizations for 30 years, in a variety of technical, managerial and variety of technical, managerial and board positions. In ABB, he has been a board positions. In ABB, he has been a product manager, marketing manager, product manager, marketing manager, innovation manager and Operations innovation manager and Operations Specialist consultant in different Specialist consultant in different divisions prior to his current position. divisions prior to his current position. The Operations Development Group is The Operations Development Group is an internal consultant organization that an internal consultant organization that focuses on improving organizational focuses on improving organizational performance by applying TOC, Lean, performance by applying TOC, Lean, quality improvement methods and quality improvement methods and innovation techniques. innovation techniques.
Lukasz Lukasz KrupaKrupa is a Leader in the is a Leader in the Manufacturing IS Solutions Program in Manufacturing IS Solutions Program in ABBABB’’s Power Products Division. s Power Products Division. Lukasz has been working in ABB for the Lukasz has been working in ABB for the past 7 years participating in several past 7 years participating in several manufacturing projects as a scientist at manufacturing projects as a scientist at ABBABB’’s Corporate Research Center in s Corporate Research Center in Krakow, Poland. Krakow, Poland. His domains of expertise include His domains of expertise include scheduling and execution systems with the scheduling and execution systems with the main focus on leveraging Theory of main focus on leveraging Theory of Constraints concepts. Constraints concepts. He is currently working for the IS Delivery He is currently working for the IS Delivery Center organization located in Krakow.Center organization located in Krakow.
The Manufacturing IS Solutions team The Manufacturing IS Solutions team supports the spread of supports the spread of ““best practicesbest practices”” throughout ABB by delivering IS solutions throughout ABB by delivering IS solutions and knowand know--how sharing across business how sharing across business units.units.