GMSExecutiveOverviewGMConfidentialVersionDate2004.8.12Slide1JohnS.HamalianGMSGMSINTRODUCTIONTOGMSGlobalOperatingSystemGMSExecutiveOverview(4-5Hours)GMSExecutiveOverviewGMConfidentialVersionDate2004.8.12Slide2JohnS.HamalianGMSClassroomNorms1.Pagers,phones-Pleaseturnofforputonvibrate2.Ifurgentcall,pleasetalkoutside3.Relax,askquestionsandhavefun!!StandardizedIntroductions1.Name2.Role3.MainhobbyGMSExecutiveOverviewGMConfidentialVersionDate2004.8.12Slide3JohnS.HamalianGMSCustomerSatisfactionCustomerEnthusiasmWhatDoWeNeedToDoToMeetOurVision?CustomerSatisfactionisnotgoodenough!!!GMSExecutiveOverviewGMConfidentialVersionDate2004.8.12Slide4JohnS.HamalianGMSCustomerEnthusiasmExternalCustomer(BuysProduct)InternalCustomer(YOU!)WhoistheCustomer?GMSExecutiveOverviewGMConfidentialVersionDate2004.8.12Slide5JohnS.HamalianGMSCustomerEnthusiasmGoodBuyingExperienceGoodOwnershipExperience+=WhatMakesCustomerEnthusiasm?SalesMarketingDesignEngineeringManufacturingAfterSalesGMSExecutiveOverviewGMConfidentialVersionDate2004.8.12Slide6JohnS.HamalianGMSSafe,Clean&HealthyEnvironmentPeople-OrientedOrganisationAttractive,HighQualityProductsGoodCustomerResponseHighCustomerValueGMVWToyotaFordWhatDoesEveryoneNeedtoGetCustomerEnthusiasm?GMSExecutiveOverviewGMConfidentialVersionDate2004.8.12Slide7JohnS.HamalianGMSSAFETY(SafeWork)QUALITY(AttractiveProduct)COST(GoodValue)PEOPLE(OrganizationalDevelopment)RESPONSIVENESS(Quantity/Volume/Speed)Safe,Clean&HealthyWorkingEnvironmentforallemployeesandvisitorsFocusonemployeeDevelopment,InvolvementandEnthusiasmEachcustomerineachprocessexpectsahighqualityproductorserviceCustomerswantaqualityproductorservicebuttheyalsowantitFAST!Eliminatewasteandcontrolcoststodeliverourcustomerstherightproductattherightprice!!NeedsTranslatetoGoals…THE5MAINGOALSProvideeveryproductorservice(exactlywhatthecustomerwants)defectfree,ondemand,withnowasteandinaworkenvironmentwhereeveryoneishappyandsafe.$GMSExecutiveOverviewGMConfidentialVersionDate2004.8.12Slide8JohnS.HamalianGMSSPQRCTheGoalSequenceHasAMeaning!ModernphilosophyisthatSafetyisalwaysFirstwithapriorityonPeopleandQuality.Ifwefocusonthesethings,Cost-throughwastereduction-willeventuallydecreaseTRADITIONALMODERNCRQPSTraditionally,theorganisationwasfocusedaroundfinancialcontrolswithQuantityasapriority–PeopledevelopmentandSafetywerenotparticularlyimportantAlwaysRememberThePriorities…$$JHamalianGMSExecutiveOverviewGMConfidentialVersionDate2004.8.12Slide9JohnS.HamalianGMS“OneSystem”-One‘Language’-OneUmbrella-OneCompanyCulture-OneMindsetGlobalOperatingSystemItisacriticalphilosophytoachieveourVisionGMSHowDoWeReachOurGoals?…GMSExecutiveOverviewGMConfidentialVersionDate2004.8.12Slide10JohnS.HamalianGMSNUMMI(TOYOTA)CAMI(Suzuki)OPEL(Eisenach)GMNA(GreenBook)QNSaturnCreationofGMSGMSnotaonlya“GM”systembutismostlymodeledonToyota&someSuzukiphilosophyGMS(1996)GMSwasbornoutofthestrategicneedtoadoptmodern,leanthinkingforcorporatesurvivalGMSExecutiveOverviewGMConfidentialVersionDate2004.8.12Slide11JohnS.HamalianGMSMassvs.LeanProcessesProductionSystemBufferedorMass(“Fordism”)Lean(Toyota)Buffers&WasteHighLowStandardizationHigh,bymanagersHigh,byteamsLeaderSpanofControlNarrowModeratePlanning&ProblemSolvingLow(reactive)High(proactive)DegreeofCorrectionHigh(inspect-outquality)Low(built-inquality)Teamwork&EmpowermentLowHighRiskLowHigh•Bufferedprocessesareprotectedagainsteverything:unexpectedqualityproblems,stoppages,highabsenteeism,etc.•Leanprocessesassurecontinuousflowwithminimalwastebyempoweredteamsandthequalityshouldbeachievedwithintheprocess1800(Craft)1900(Mass)2000(Lean)WhatisLeanThinking?GMSExecutiveOverviewGMConfidentialVersionDate2004.8.12Slide12JohnS.HamalianGMSToyotaPhilosophyStrongCorporateCultureBalanceBetweenProcessandResultsCommitmenttoLearningnotKnowingEntireOrganisationKnowsandUsestheSystemMinimumbarriersbetweenfunctionsandlevelsFocusonLongTermResultsRespectForHumanityandContinuousImprovementthroughtheEliminationofWasteareFoundationofToyota’sSystemGMSExecutiveOverviewGMConfidentialVersionDate2004.8.12Slide13JohnS.HamalianGMSShortLeadTimeContinuousImprovementCompanyPeopleInvolvementCompanyStandardizationBuilt-In-Quality•Safety•People•Quality•Responsiveness•CostUseGMSPrinciplesToObtainOurGoalsGOODPROCESSESGOODRESULTSBusinessGoals(Scorecard)MethodstoMeettheGoals(GMS)Vision/MissionLeanPrinciples(Process)Goals&Metrics(Results)GMSExecutiveOverviewGMConfidentialVersionDate2004.8.12Slide14JohnS.HamalianGMSTHE5GMSPRINCIPLESPeoplearethemostvaluableresourceinthecompanyPeopleInvolvementStandardizationBuilt-In-QualityShortLeadTimeContinuousImprovementDonotAcceptBuildShipaDefect!SetandfollowstandardstoachieveabasefromwhichtogrowCustomer’sQualityexpectationsarebuiltintoeachprocesstoensuredefectsarenotpassedReducethetimetodeliveranyproductorserviceFosteracultureofchangeandconstantimprovement$GMSExecutiveOverviewGMConfidentialVersionDate2004.8.12Slide15JohnS.HamalianGMSGMSLikeAnAtomWeNeedAllThePiecesWorkingTogether!!“OneCompany”–OneSystemACompany-WideOperatingSystembasedonLeanBusiness