TODAY’S OBJECTIVES
Understanding the critical role you have in our strategy
TARGETSTARGETS STRATEGIC LEVERSSTRATEGIC LEVERS
SIX SIGMA LEAN
DEPLOYMENT
COST REDUCTION
PROJECTS
GLOBALIZATION
ZERO DEFECT
ENHANCED
PRODUCTIVITY
PASSION, POWER, PERFORM
JACQUES ESCULIERCHAIRMAN & CHIEF EXECUITIVE OFFICER
� Following a severe decline in 2009, our industry offers SIGNIFICANT GROWTH opportunities with MAJOR SHIFTS in global production distribution
MARKET FOCUS
Products, systems, services
and support for vehicle manufacturers
and aftermarket customers
TRUCK
CNHTC
DAIMLER
FREIGHTLINER
HINO
MAN
PACCAR
SCANIA
VOLVO
among others
AUDI
BMW
DAIMLER
GENERALMOTORS
PSAPEUGEOTCITROEN
SSANGYOUNG
among others
CAR
BUS
EVOBUS
MAN
NISSAN
YUTONG
among others
AFTERMARKET
Supportingfleet and truckowners overvehiclelifetime
Distributors
Workshops
Fleets
CIMC
GREAT DANETRAILERS
KÖGEL
KRONE
SCHMITZCARGOBULL
WABASH
among others
TRAILER
Engaged by the industry’s leading players
MARKET EVOLUTION
Significant shift in regional distribution of CV production
Global Truck & Bus Production >6t GVW
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Th
ou
san
d v
eh
icle
s
0
200
400
600
800
1000
1200
PRODUCTION FORECAST
Market Forecast for WE, NA, SA, Asia and E Europe from “World Truck Industry Forecast Report” December 2009 HIS Global Insight
Developed markets not planned to return to their historical peaks
TRUCK & BUS PRODUCTION (thousands)
200
400
600
0'08 '09 '10 '11 '12 '13 '140
200
400
600
'08 '09 '10 '11 '12 '13 '14
0
100
200
'08 '09 '10 '11 '12 '13 '14
0
100
200
300
'08 '09 '10 '11 '12 '13 '14
0
400
800
1200
'08 '09 '10 '11 '12 '13 '14
0
200
400
'08 '09 '10 '11 '12 '13 '14
0
200
400
'08 '09 '10 '11 '12 '13 '14
? ?
W. Europe E. Europe Japan &Korea
N. America
IndiaChina
S. America
� Following a severe decline in 2009, our industry offers significant growth opportunities with major shifts in regional distribution
� In 2005, WABCO embarked on a path ofCONTINUOUS TRANSFORMATION to enhance customer service and SUSTAIN DIFFERENTIATION
WABCO VISION & CORE STRATEGY
Sustained through our vision, ‘Passion for Innovation’
� INNOVATION/TECHNOLOGY LEADERSHIP Bring value as a development/systems integration partner Integration solutions provider
� Vehicle efficiency and environment� Advanced safety and driver effectiveness
� GLOBAL CAPABILITY Connect with customers in every region Leverage global operations/expertise
� EXCELLENCE IN EXECUTION Differentiate WABCO through
� service and quality excellence � breakthrough performance in cost-reduction� maximum operational efficiency(backbone is Six Sigma Lean)
INNOVATIONS LED BY THE MARKET
Offering end-to-end solutions to today’s industry issues
COMPRESSION & BRAKING
ST
RA
TE
GY
Air Compressors
Air Processing
Conventional Brake Controls
Actuators
Foundation Brakes
Suspension Control
Anti-Lock Braking Systems
Transmission AutomationClutch Control
Electronic Brakingand StabilityControl Systems
Car Products
POWER THROUGH GLOBALIZATION
Powerfully positioned across emerging growth markets
Local MarketConnectivity
LocalManufacturing
Local SupplyChain
ProductDevelopment
10%22%
30% 35% 40%47%
2000 2002 2004 2006 2008 2010F
Share of Sourcing:
High Cost Country Best Cost Country
Share of Variable Workforce:
High Cost Country Best Cost Country
44% 42% 48% 53%66% 68%
2005 2006 2007 2008 2009 2010
2009: A CRITICAL BALANCE
Sustaining the right balance for survival and success
Essential short-term cost focus and risk management
� OPEX reduction; materials savings
� Carefully manage restructuring; sustaining flexibility
� Productivity enhancements
� Supplier/customer liquidity
Long-term pursuit of WABCO vision & strategies
� Globalization
� Innovation & technology leadership
� Excellence in execution
2009: FINANCIAL SUMMARY
Growing from a strong result despite severity of industry slump
� Anticipated crisis; initiated response in summer 2008
� Achieved flexibility; managed nearly 50% sales decline/first half of 2009 followed by sequential improvement in second half
� Established presence in emerging markets boosted performance
� Over $100M of OPEX & indirect manufacturing cost savings
� Strong productivity performance and sustained transformation initiatives
Sales $1,491.5 $2,588.0 (42%)
Performance Op. Income 42.8 298.2 (86%)
Performance EBIT 38.9 301.1 (87%)
2.6% 11.6%
Performance Net Income 25.7 246.8 (90%)
1.7% 9.5%
Performance EPS 0.40 3.75 (90%)
FY 2009 FY 2008 Growth(in $ Millions except per share data)
$ 78.8Free Cash Flow
2010 FRAMEWORK
Confident of outperforming the market in 2010
FULL YEAR GUIDANCE
Perf. Op Margin
Salesvs. ‘09
Perf.EPS
Free Cash Flow Conversion
15% – 20%
5% – 7%
$1.00 – $1.40
80% - 90% (Excluding Stream. & Separation)
� Following a severe decline in 2009, our industry offers significant growth opportunities with major shifts in regional distribution
� In 2005, WABCO embarked on a path of continuous transformation to enhance customer service and sustain differentiation
� WABCO service levels improved significantly as we preserved acceptable financial results in the face of a severe decline in revenues
� We need your FULL ALIGNMENT and mutual support to reach the next level on our path to CONTINUOUS SUCCESS
PERFORMANCE THROUGHCHANGE
Generating margin in an increasingly competitive industry
� Commit to continuous CHANGE See the opportunities in -30% A trigger for innovation
� Demonstrate clear differentiation GLOBALLY Flexibility Adding value to WABCO supply chain
� Adhere to an advanced management environment: SIX SIGMA LEAN Enabling quality Enabling cost reduction
URGENT NEED TO ALIGN
Rapid action required to balance quality performance
� Resource absorption is not sustainable
Cost burden on WABCO and you
Pressure is increasing as WABCO drives improvements
Diverting valued expertise
� Share learning of WABCO’s journey towards zero defects
Mutual benefit from future savings
Essential foundation before strategic collaborations
� The KEY REQUIREMENT to satisfy YOUR customer
Supplier quality levels >1,000 PPM
WABCO 0KM quality levels <50PPM
PASSION, POWER, PERFORM
EKKEHARD PETZOLDVICE PRESIDENT
SOURCING AND PURCHASING
Breakthrough approach introduced in 2007
SUPPLIER CONFERENCE OUR OBJECTIVES 2007
Objectives
Transfer challenges into business opportunities
DefectsDefects 00
CostsCosts --30%30%
Objectives
Transfer challenges into business opportunities
DefectsDefects 00
CostsCosts --30%30%
YOUR RELATIONSHIPWITH WABCO
Working on common objectives leads to mutual satisfaction
Source WABCO Supplier Questionnaire 2010
Status
TrendImproving
Stable
Deteriorating
Not sure
47%
46%
5%
2%
Best in class
Above average
Average
Below average
26%
41%
31%
2%
A clear focus on foundations is essential for sustainable benefits
YOUR FOCUS 2010Source WABCO Supplier questionnaire 2010
� Business opportunities
� Strong financial performance
� Innovation/market leader
� Global footprint
� Six Sigma Lean
� Flexibility
� Ethical
Strong interest in deeper collaboration with best suppliers
OUR VALUE PROPOSITION
SOURCING & PURCHASING OUR ROLE & MISSION
Be the BEST in quality, cost, delivery
& innovation
SOURCING & PURCHASING OUR ORGANIZATION
A diverse, global team seeking to deliver breakthrough performance
Global SourcingGlobal Sourcing
Strategic Sourcing
Supplier Development
Six Sigma & Quality
Strategic Sourcing
Supplier Development
Six Sigma & Quality
Local SourcingLocal Sourcing
Global PurchasingGlobal Purchasing
Project Purchasing
Operational Purchasing
Project Purchasing
Operational Purchasing
Site PurchasingSite Purchasing
Decision TakingDecision Taking
Team
Cross-functional
Data-driven
Team
Cross-functional
Data-driven
Single decisionSingle decision
WABCO EXPECTATIONS FROM OUR SUPPLIERS
A robust extended enterprise for sustainable success
� Aligned to vision
� Global capability
� Innovation leadership
� Flawless execution
� Continuous improvement
� Zero defects
� Flexibility
Sustaining the breakthrough mindset is key
SOURCING & PURCHASING OUR OBJECTIVES
DefectsDefects 00
CostsCosts --30%30%
PASSION, POWER, PERFORM
JEAN-CHRISTOPHE FIGUEROA
VICE PRESIDENTVEHICLE DYNAMICS & CONTROL
VISION OF THE FUTURE
Global trends relevant to our customers
� Increasing mobility
� Reduction of natural resources
� Growing need for environmental care
� Increasing demand for safety and security
� Shift of economies among regions
CUSTOMER VALUES
VEHICLE DYNAMICS &CONTROL
COMPRESSION & BRAKING
DRIVELINE CONTROL
TRAILER SYSTEMS & AFTERMARKET
CAR SYSTEMS/ PRODUCTS
EX
EC
UT
ION
ST
RA
TE
GY
VEHICLE
EFFICIENCY
AND
ENVIRONMENT
ADVANCED
SAFETY AND
DRIVER
EFFECTIVENESS
Right response to customer concerns
Constantly striving for better performance…
WABCO has a clear path to
enhance vehicle efficiency by
20%
�Within 5 years: 11% additional weight reduction on brake system
� Clutch Compressor eliminating parasitic horsepower in off-load is our latest BREAKTHROUGH development
We expect our suppliers’ engagement at every stage of these innovations
� Available SOON: Products to achieve 10% fuel savings
TARGETING VALUED RESULTS
~ 100.000
IMPENDING SAFETY LEGISLATION
Advanced Emergency Braking
Lane Departure Warning
as of 2013+
Electronic Stability Control
as of 2013+as of 2011
~ 300.000 ~ 450.000 ~ 450.000
POTENTIAL GROWTH LINKED TO LEGISLATION ADOPTION
~ 100.000 ~ 100.000
~ 200.000 ~ 200.000 ~ 220.000
Legislation drives systems usage to 100%
A strong path for volumes and technology
BEGINNING OF A NEW ERA
� Safety functions will become MANDATORY
� Production volumes will increase DRAMATICALLY for
equipment driven by law
WABCO has a vision to reduce the number of
commercial vehicle accidents by 50%
by 2020
� We expect our SUPPLIERS TO BE ENGAGED at every
stage of these innovations
CHRISTIAN WIEHENCHIEF TECHNOLOGY OFFICER
PASSION, POWER, PERFORM
Primary focus is total cost of ownership
Fuel Efficiency
Energy Recovery
Weight Reduction
Suspension Control
Advanced Driver Assistance System
Competences in Electronics
DRIVING INNOVATION
Braking & Stability Control System
CLEAN AIR MANAGEMENT
Air circuit delivers significant energy savings
Compressor� Clutch (on demand)
� Aluminium use (crankcase)
� Two-stage compression
� Lubrication-free
� Electrically driven
� Integrated
Air Processing Unit� Delivers in overrun phases
� Oil separation
� Integrated
ELECTRICAL AUXILIARIES FOR HYBRID VEHICLES
Hybrid drive trains for buses and heavy duty trucks
3~AC
DCdiesel enginerectifier
3~AC
DCinverter3~400V
3~AC
DC
e-comp
SteeringPump
Air condition
3~AC
DC
electric driven auxiliaries
converter
converter
electric driven axle
energy storage(battery or capacitor)
generator
e-motor& generator
DC intermediate circuit450V – 750V DC
3~AC
DC
DC
3~AC
3~AC
DCdiesel enginerectifier
3~AC
DCinverter3~400V
3~AC
DC
e-comp
SteeringPump
Air condition
3~AC
DC
electric driven auxiliaries
converter
converter
electric driven axle
energy storage(battery or capacitor)
generator
e-motor& generator
DC intermediate circuit450V – 750V DC3~AC
DCdiesel enginerectifier
3~AC
DCinverter3~400V
3~AC
DC
e-comp
SteeringPump
Air condition
3~AC
DC
electric driven auxiliaries
converter
converter
electric driven axle
energy storage(battery or capacitor)
generator
e-motor& generator
DC intermediate circuit450V – 750V DC
3~AC
DC
DC
3~AC
E-comp� Electrification projects at many bus and truck manufacturers
� Series hybrids and fuel cells require electrical drive of auxiliaries
� Entry with electrically driven air compressor
AIR DISC BRAKE EVOLUTION
Entering the heavy duty truck segment
1. Generation
1993
1996
2003
PAN2. Generation
PAN3. Generation
FUTURE
Generation X
2010
NG22MAX4. Generation
1. Generation
1993
1996
2003
PAN2. Generation
PAN3. Generation
FUTURE
Generation X
2010
NG22MAX4. Generation
1993
1996
2003
PAN2. Generation
PAN3. Generation
FUTURE
Generation X
2010
NG22MAX4. Generation
1993
1996
2003
PAN2. Generation
PAN3. Generation
FUTURE
Generation X
2010
NG22MAX4. Generation
Proven reliability growing into high volume applications
� Light weight design for 16” up to 25” wheels
� Highly efficient single-piston design
� Strong and redundantly sealed guiding system
� Significant reserves to mitigate overloading
ELECTRONICALLY CONTROLLED BRAKING SYSTEM 3RD GENERATION
New component family – power of applying a standard
Rear AxleModulator
Trailer Control ValveABS Valve
ABS Valve
Central ModuleESC
Steering AngleSensor
BrakeSignal
Transmitter
Radar Sensor
Front AxleModulator
DRIVELINE CONTROLS
Modular system highly attractive to emerging markets
25 years of experience in driveline automation
50 % penetration in European heavy duty trucks
� Fuel efficiency
� Driver effectiveness
� Reduced operating cost
� Economy, comfort
AMT integrated AMT 3rd generation AMTMedium duty Clutch actuator Pedal unit
OptiDriveTM
ELECTROMECHANICS & ELECTRONICS
Sensors, Actuators, Cable & Connections
� Reduces size and weight
� Improves robustness
� Reduces complexity
� Reduces cost
� Mechatronics integration
Electronic Control Units
� Obsolescence management
� Components for lead-free process
� Emissions reduction > encapsulation- high temperature PCB technology
Key components for all systems
OUTPUTSUPPLY
EXHAUST
-+
PASSION, POWER, PERFORM
KURT LEHMANNVICE PRESIDENT
PRODUCT DEVELOPMENT
Future systems hold great opportunities for growth
� Vision systems
� Autonomous functions
� Internet service solutions
� Full domain control systems
� Hybrids
Evolution into systems level
� Move from “functional” control to “supervisory” control
� Systems must be “Fault Tolerant”
� Organization must develop competencies
Need for “Engineered Products”
� Provide products and components with described “functions”
� Functions must be secure against failure – FMEA as standard
� Supply base to deliver fully qualified products and expert services
SYSTEMS PROVIDE OPPORTUNITIES
Move to systems increases need of functional products
Standardized
processes
and methods
Standardized
project
organization
& roles
Standardized
deliverables
Modular
product
Architecture
Standardize
IT- Tool
Support
Integrated IT Based Product
Development Methodology
INTEGRATED WABCO PRODUCT DEVELOPMENT WORLDWIDE
Implementing a systematic framework is essential
CAPABLE
COMMIT
PROVE
DELIVER
Discipline and excellence:
� COMMIT to QCD
� CAPABLE to develop prototypes and meet PPM
� PROVE function and component meets requirements
� DELIVER PPAP’ed product for C-sample delivery
A worldwide process standard
CROSS CDP: CROSS-FUNCTIONAL DEVELOPMENTCommon Development Process
FUNCTIONAL ALIGNMENT
Customer Leadership
Program Management
Product Or Component
Commercial
Project Management
Finance
Suppliers
Engineering Quality
S&P
M&L(VS)
Ensure crisp project execution:
� All resources and responsibilities defined
� All elements and activities defined
� Product defined
� Fully integrated and cross functional
� Applied to all product development and cost reduction projects
A global standard applied to all projects
PASSION, POWER, PERFORM
DANIEL SAMSONVICE PRESIDENT
MANUFACTURING AND LOGISTICS
Claye Souilly, France
Mannheim, Germany Hanover & Gronau, Germany
Wroclaw, Poland
Meppel, The Netherlands
Qingdao, China
Ambattur, IndiaMahindra, India Jamsedpur, India
Jinan SWAP (JV)Jinan, China
Taishan, China- planned Mid 2010-
Charleston, SC, USA (JV)
Madrid, SpainCampinas, Brazil Dubai
Higashi, Japan
Distribution Center
Production Location
Pyungtaek, KoreaNeunkrichen, Germany (CEVA)
WABCO MANUFACTURING LOCATIONS
GLOBALIZATION:MANUFACTURING STRATEGY
GLOBAL MANUFACTURING STRATEGY
Optimizing manufacturing workforce
• Supporting LOCAL MARKETS
from LOCAL FACTORIES
• Leveraging manufacturing
capabilities in CHINA and INDIA
to lower costs
• Starting to move from high cost
countries to BEST COST
COUNTRIES
• Accelerating SIX SIGMA LEAN
deployment in all facilities
SHARE OF VARIABLE WORKFORCE
High Cost Country Best Cost Country
63% 61%56% 58%
52%47%
34% 32%
37% 39%44% 42%
48%53%
66% 68%
2003 2004 2005 2006 2007 2008 2009 2010
� VOLUME RECOVERY expected for 2010
� FORECAST ACCURACY is a myth!
� CUSTOMER ORDERING BEHAVIOR has changed towards short term orders
� Only one solution to fulfill customer demand: FLEXIBILITY
Flexibility is the key success factor in 2010
PASSION, POWER, PERFORM
LUIS MARTINSGROUP QUALITY DIRECTOR
Quality finally is the key enabler to stay in and grow business
To listen to the Customer…
To enhance capability…
To continuously raise the bar
Quality is...
WHAT DOES QUALITY MEANFOR WABCO
0
5
10
15
20
25
30
0
1
2
3
4
5
6
7
0
50
100
150
200
250
Stable and continuous downward trend
TO LISTEN TO CUSTOMER EXPECTATIONSP
PM
Incid
en
tsR
esp
on
se t
ime
� Zero tolerance for defects
� Perform to committed targets
� Respect response time
� Right PPAP on time
within 24 hours
Prevent the flow of defects through the supply chain
TO LISTEN TO CUSTOMER PERFORMANCEIn
cid
en
tsP
PM
� Despite improvements some of you are still far from WABCO’sexpectation
� Need to manage inconsistency and negative trend
ENHANCE CAPABILITY - MATURITY LEVEL
Unstable process & lack of Quality control
Unstable process with established firewall
III. Stable process & strong Quality control
II. Assured Quality
I. Lean / design & build in Quality
Moving from reactive to proactive Quality management
Maturity level N° of suppliers
7
20
25
26
42
OVER 10 000
1 000 10 000
1001 000
10100
LESS10
IV.
V.
IV.
V.
PPM
Zero defects at Customer
Internal Preparation
Capable process
Joint approach to component requalification
Ready for execution
Completion level
Execution Control
ENHANCE CAPABILITYDRIVING PERFORMANCE FROM LEVEL V to III
STRATEGY TO ENHANCE CAPABILITY
� 0 km claim
�Warranty
� High scrap
� High cost of
poor Quality
Firewall
Permanent inspection
Firefighting
ProactiveQuality
Reactive Quality
Evolve from reactive to proactive mindset
STRATEGY TO ENHANCE CAPABILITY
Design Quality into product
Built Quality into process
Customer Satisfaction
� FMEA
� Component Quality Plan
� Poke Yoke
� PPAP
� Standardization
� Perfect Tooling
� Problem Solving
� Lessons Learned
� Look Across
ProactiveQuality
Reactive Quality
Evolve from reactive to proactive mindset
Metrics are the results of capable process through Six Sigma Lean
CONTINUOUSLY RAISE THE BAR
Understand Customer expectation
Plan activity
Do it
Check your job
Act & standardize
Moving up maturity level
V
IV
III
II
I
Moving up maturity level
V
IV
III
II
I
To stay in business with WABCO requires you to be level III minimum
Level II is the threshold to grow your business with WABCO
In summary
PASSION, POWER, PERFORM
SYLVAIN DA CUNHA SUPPLIER DEVELOPMENT LEADER
Poor Quality could lead to a life-or-death situation
WHY IS THIS IMPORTANT
WABCO wants to make SAFE products
to help prevent this …
Today is far from where we want to be
TODAY
PPM, INCIDENTS
PP
M,
INC
IDE
NT
Target
SOP
Spikes at SOP
CHALLENGE
PPM, INCIDENTS
Target
TODAY - NEW PRODUCT LAUNCH
PP
M,
INC
IDE
NT
SOP
In 2009 poor Quality cost min WABCO $40M, what is it costing you?
THE COST BURDEN
It creates a hidden mass ofWASTES
CQP is the WABCO methodology to ensure costumer satisfaction
COMPONENT QUALITY PLANNING
A WABCO method inspired from the Advanced Product Quality Planning
It defines and establishes the steps necessary to assure that a product satisfies the customer
Definition OK to Propose
OK to Quote
OK to build B-Prototype
OK to Tool
x Common Development Process
OK to Process Validation
OK to Deliver SOP
Concept
Prototype Design
Series Design
Industrialization
OK toRelease Team
Validation
Stabilization
CQP INTEGRATION INTO CROSS CDP
CQP is integrated into product development
1 2 3
4
5 6
7
Component Quality Planning
Project Definition / Supplier Selection / Supplier Nomination
Supplier Process Planning
Process Preparation & Validation
Production Control
Focus on prevention is better than cure
EXPECTATION OF YOU
Are youPREPARING your products
EARLY enough?
Urgently LIFT your maturity level from level V to III to stay in business with WABCO
PERFORM to the targets you receive
PASSION, POWER, PERFORM
NATALIA NOBLET BUSINESS IMPROVEMENT LEADER
PROCESS IMPROVEMENTS
Dedicated functional team to drive process excellence
Six Sigma & Qualityin Sourcing & Purchasing
� Integrate market requirements
� Align between functions
� Share best practice
� Standardize processes with suppliers
Engine for functional excellence and an important communication link supported by clear standards and
efficient processes
BENEFITS OF COMMON STANDARDS
Common standards are our foundation stone
1. Set clear expectations
2. Better planning
3. Improve communication
4. Enable smooth handoffs
5. Synchronize the tasks
6. Performance benchmark
STANDARD PROCESSES
Clear interfaces to WABCO’s global operations
Drive FUNCTIONAL EXCELLENCE and provide CLEAR EXPECTATIONS
WABCO UNIVERSITY
A gateway to process improvement skills
� Six Sigma (Yellow & Green Belt)
� Process optimization
� 5S & waste elimination
� Communication & visualization
� Problem solving techniques
PROCESS IMPROVEMENT
Over 10 000 participants a year
YOU are the critical piece in our process improvement plans
?Are YOU ready to improve together
www.roeders.com
A Lean StoryA Lean Story
G.A.Röders –Company Presentation
• Founded in 1814 in Soltau/Germany
• Family owned business in 6th generation
• Segments - Plastic molding- Aluminum die casting- Tool shop
• 140 employees, 11 mio € turnover (2009)
• Joint Venture in Uherske Hradiste/Czechia- Plastic molding and die casting- 80 employees, 7 mio € turnover (2009)
• Customers: automotive, medical care, aircraft, pneumatics
• First plastic part for WABCO in 1961
Joint Road to Lean
• Sep 2006 Lean workshop at WABCO in Wroclaw
• Oct 2006 Kick-off at G.A.Röders, 5S
• Feb 2007 Kaizen for logistics
• Aug 2007 SMED-workshop at G.A.Röders
• Jan 2008 Start standardization
• Aug 2008 Reduction of lot sizes
• Jun 2009 Internal kanban
• Jun 2009 Pull-production
• Jan 2010 Roll-out of continuous improvement (Measure-Analyze-Improve-Control)
Continuous Improvement Loops
Define standards
Processes become clear and simple
Deviations are immediately visible
Direct actions
Continuous Improvement Loops
Production sheet makes
deviations visible
Daily shift meetings -max. 5 minutes!
Immediate actions
Continuous Improvement Loops
Our Idea of Lean
Lean is “clear and simple”!
Not Lean!
Continuous Improvement Loops
Improvement loops (measure-analyze-improve-control) are installed for
• SMED
• Productivity
• Fill rate
• Internal scrap rate
• Rework
• Lead time for offers
Effects of Lean –Cash Flow Improvement
Stock from 239 k€ (2006) to 49 k€ (2009)
Overproduction down to 1,9 k€
Effects of Lean –More Flexibility
- 84 %
- 89 %
Effects of Lean –Lead Time new Tools
- 67 %
Manufacturing time for new tool reduced to 4 weeks
Effects of Lean –Lead Time new Tools
Manufacturing time for new tool reduced to 4 weeks
Started 02.02.2010 – Finished 26.02.2010
Success Factors
• Take a clear decision for Lean
• Develop a vision of Lean in your company
• Convince the staff
• Create standards, not bureaucracy
• Make processes reliable
• Do not overload your staff with Lean
• Have a look around
• Go to Gemba!
Benefits of Lean
+ 55%
Joint Lean activities have generated significant business increase with WABCO
PASSION, POWER, PERFORM
Jay Michaels Lean Promotion Office Leader
WHAT IS SIX SIGMA LEAN?
Path to sustaining competitive advantage
� Increase customer satisfaction and loyalty
� Improve quality, delivery, productivity
� Reduce inventory
� Accelerate time to market
� Increase motivation among workforce
LEAN
SIX SIGMA LEAN
Long term strategy for improvement integrates key suppliers
2005
Baseline and
Initial Kaizen
2008
Additional 13 suppliers in Lean program
Breakthrough quality through Six Sigma Lean
S2 line - Over 1,350,000 pcs. produced without customer claim
2006
First mixed model line ‘S2’. 10 suppliersselected for Lean integration
2010
Quality Stabilization System implemented
Additional 10 suppliersto be integrated
LEAN IMPLEMENTATION IN WROCLAW, POLAND
Lean Logistics
Operational Change
CustomerCustomer
DistributionCenters
DistributionCenters
SupplierMerchandized
Goods
SupplierMerchandized
Goods
SupplierProduct
Components
SupplierProduct
Components
OperationsOperations
Baseline Assessment(Future State)
Supplier Integration
Driving Six Sigma Lean across all aspects of the Value Stream
Customer Integration
ENTERPRISE-WIDE DEPLOYMENT
Project reviews on regular basis
joint improvements
Standard process for integration of suppliers
• Initial meeting
• Introduction of Six Sigma Lean• Key suppliers
identified based on shop floor needs
• Lean training at supplier site
• Joint lean assessment
• Definition of initial project
• Joint and supplier led improvement projects
• Regular project reviews
ROADMAP FOR SUPPLIER INTEGRATION
?Are you our missing piece
2010 can be a WIN-WIN year!!
PASSION, POWER, PERFORM
SALVADOR MUNOZPROJECT MANAGEMENT LEADER
OUR CUSTOMERS REQUIRE
PASSION for our customer needs
RELIABLE
SAFE
AFFORDABLE
YESTERDAY
Breakthroughs came from small groups …
TODAY
Co-operation is essential
Today, success is more than ever a question of co-operation
2009 KEY SUCCESS FACTORS
Seeking to engage suppliers more deeply in 2010
Value chain
Alignment
100 engineers
80 project teams
400+ active projects
Cross-functional steering
GLOBAL CHANGE CONTROL process
All functions aligned to a common goal
From customer teams to supplier development
SOME SUPPLIERS actively and constructively contributing
Commercial
Project Management
Finance
Suppliers
Engineering Quality
S&P
M&L(VS)
PASSION to align
PERFORMANCE
Achievements begin with strong conviction
POWER of a structure
30%more than
cost reduction
0defects
&
Commercial
Project Management
Finance
Suppliers
Engineering Quality
S&P
M&L(VS)
SOURCES OF COST REDUCTION
Design Optimization
Processes Improvement
Supply Chain Localization
Exploiting all sources of quality improvement and cost reduction
?Are WE finding the missing piece
Mutual benefits as we grow together in 2010!!
PASSION, POWER, PERFORM
JOHN HYNES STRATEGIC SOURCING LEADER
SOURCING & PURCHASINGOUR OBJECTIVES
Stretch targets drive innovation & performance
-30% Cost Reduction
Zero Quality Defects
Zero Delivery Defects
-30% Zero
Zero
Collaboration is the only way to succeed
SOURCING & PURCHASINGTHE CHALLENGES
Constantly challenge and change the status quo
Together we have to identify & develop “SUSTAINABLE” programs to compete YEAR AFTER YEAR
SOURCING & PURCHASINGTHE PROCESS
Technical, Process & Cost
Develop your business – protect your business
Define & Validate Projects
Fill the futurepipe-line
Design ProcessFootprint
Supplier Cost ReductionRoad Map
Proactive – not reactive – approach to cost reduction
Task NameJan Feb Mar Apr May Jun
Project 1 - Material ChangeDefinitionScopeplanningimplemementation
Project 2 - Design ChangeDefinitionScopeplanningimplemementation
<10<10<101530PPM
001510# of Incidents
5,5 %4,5 %3,5 %Productivity (%) w/o raw material
--Transfer of
automatic assembly
Transfer of direction control valve & piston cylinder
-transfer of leveling valve 1 Mio € -20%
Footprint Evolution
Equipment maintenance know-
how
Improve capabilities for machining
Process Evolution
-----Design / Innovation Evolution
HyABSwithdrawn1500
Chassis leveling valve to WCR
1000
Turn parts100
Removed Business (k€)
Readiness for
WABCO potential outsourcing if needed
Readiness for
WABCO potential outsourcing if needed
Transfer from HCC to BCC assembly
supplier1000
Turn part assemblies
500
Casting Machining1000
Potential New Business (k€)
4.669Turnover (k€)
20142013201220112010
<10<10<101530PPM
001510# of Incidents
5,5 %4,5 %3,5 %Productivity (%) w/o raw material
--Transfer of
automatic assembly
Transfer of direction control valve & piston cylinder
-transfer of leveling valve 1 Mio € -20%
Footprint Evolution
Equipment maintenance know-
how
Improve capabilities for machining
Process Evolution
-----Design / Innovation Evolution
HyABSwithdrawn1500
Chassis leveling valve to WCR
1000
Turn parts100
Removed Business (k€)
Readiness for
WABCO potential outsourcing if needed
Readiness for
WABCO potential outsourcing if needed
Transfer from HCC to BCC assembly
supplier1000
Turn part assemblies
500
Casting Machining1000
Potential New Business (k€)
4.669Turnover (k€)
20142013201220112010
SustainablePerformance
SOURCING & PURCHASINGPOTENTIAL PROJECTS & PROGRAMS
Sustainable performance from continuous improvement actions
SevenWastes
Equipment &
Layout
Materials &Sub-Contract
Design
Footprint
U-shape cells, space reductionSMED, optimise equipment
Qualify more raw material suppliers,long term supply agreements
Specification & tolerances changes, material alternatives
Flexible best cost production locations
Overproduction, waiting, transportingprocessing, inventory, motion, defects
SOURCING & PURCHASINGBENEFITS YOU CAN SHARE IN
Common vision and right mindset
� Maintain and grow your margins
� Avoid difficult negotiations each year
� Grow your business
� Stable long term business agreements
� Satisfy WABCO’s expectations
� Become an integrated partner
Understanding the critical role you have in our strategy
TARGETSTARGETS STRATEGIC LEVERS
STRATEGIC LEVERS
SIX SIGMA LEAN
DEPLOYMENT
COST REDUCTION
PROJECTS
GLOBALIZATION
ZERO DEFECT
ENHANCED PRODUCTIVITY
WABCO DRIVERSWABCO DRIVERS
CONCLUSIONS
� CUSTOMER VALUES
� TECHNOLOGY AND
INNOVATION
� PRODUCT ENGINEERING
� MANUFACTURING EVOLUTION
� QUALITY
� PROCESS IMPROVEMENT
� SIX SIGMA LEAN
� CHANGE MANAGEMENT
� STRATEGY