40 Schneider Production System

G&I / Industrial Deployment
Schneider Production System
40 SPS Principles
Illustrated presentation
Approved by the Industrial Operations Committee on April 11, 2006.
SPS - 0041EN - indAS Illustrated guiding principles of SPS

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How to use this guide….
Each page describes a different principle. (List of the 40 SPS principles is in appendix 1)
If more detail is desired on a particular topic, look for one of the following:
SPS
Tool Box Toolbox: refers to a related topic which can be found in the SPS Toolbox.
Appendix: links to the appendix for more specific information on the

subject
Look for this button on the bottom of the page to take you back to the
original page you started from.
Intranet Link: takes you out of the SPS principles and directly to the SPS
intranet for more information
Reference to suggested reading on topic.

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Characteristics of the guiding principles
The Schneider Production System is the company’s primary strategy for
improving quality and productivity in manufacturing and in the extended
value stream.
As part of the Schneider Industrial and Quality Policies, and whatever the
specific local characteristics, the principles of the Schneider Production
System
Must be:
simple,
systematically applicable,
common to all Schneider sites,
cyclically audited and re-evaluated.

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The 40 principles are organized into three
domains that assure quality and customer
service.
People commitment
Product-process engineering
Management of industrial and logistic

processes

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4
People commitment
Quality, productivity and elasticity come

from the willingness of staff rather than a
particular technique.
Competitiveness depends on the
initiative and intelligence of everyone.
People commitment must be supported
by a consistent social policy and
management system for the whole site.

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5
People commitment
1) Give the operators a sense of

responsibility, especially for maximum production rate
product quality and elasticity
requirements
middle production rate
minimum production rate
SPS: Lean Manufacturing & SIM

1. Improves Quality
2. Drives sustainable change
3. Empowers employees

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6
People commitment
2) Encourage mutual aid and

promote team work and team
spirit

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7
People commitment
4) Implement Short Interval

Management (SIM) and cross
functional status reviews, which
are consistent for all employees of hourly
the plant
By day By shift
SPS
Tool Box
SIM
8
8
People commitment
5) Focus support function resources towards

satisfying customer and production
requirements
SIM: Short Interval Management

Customer focused
Quality driven
Accountability
Communication
Base Cost Productivity
SPS
Tool Box
SIM
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9
People commitment
6) Establish standardized performance,

accountability and workload measurements
for everyone.
SIM: Commitment is shared Support function’s diary Planning
by all employees, across all
functions, irregardless of
position or functional
structure.
SPS
Tool Box
SIM:
To-Do-List, Diary,
Measurement

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10
People commitment
7) Include operators when re-thinking

the system and generating ideas for
improvement
SIM: Success is
the result of the
efforts of all
employees.
SPS
Tool Box
Kaizen by
Kaizen Blitz
Suggestion
Masaaki Imai Ideas expression Planning actions
System

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11
People commitment
8) Shorten information
and communication
lines.
SIM: Face to face, one on one

interaction is effective
communication.
Example: use e-mail for

information sharing, not for
debate or decision making.
SPS
Tool Box
SIM : Daily Use direct methods (face to face) to communicate and inform
production & sub
function meetings

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12
People commitment
9) Manage the key jobs, linked

skills and adaptability
programs (training,…)
Ex: Industrial Job : Manufacturing Engineer Senior
Mission : Optimize the production methods. Optimize the use of resources and facilities necessary to carry out the work. Participate
in the evolution of the production equipment. Contribute to the definition and realization of local investment plan.
Title Skill Target level
Product Departments approve NA 1 Notion 2 Basic 3 Auto 4 Advan 5 Expert
Manufacturing strategy Ability to specify all aspects of an industrial policy/project, including
X
changes in plant quality organization Manufacturing process design
locations and product distribution.
Ability to design and implement a simple/reliable/flexible/elastic
X
and appointment of new Quality Manufacturing flow
manufacturing process, from product design ensuring its feasibility .
Ability to identify/define/optimize all physical flows from suppliers to
X
Managers Manufacturing diagnosis
distribution centers
Ability to identify, assess failures and anticipate risks with their origins, of
X
any manufacturing process.
Manufacturing performance Ability to build operate tools to monitor industrial performance (Industrial
X
Efficiency, Net Equipment Efficiency) to drive decision making.
Product Department and Operating Manufacturing MES Ability to define/operate shop-floor management systems
X
(MES = Monitoring Engineering System)
Division Quality work together to set Manufacturing lay-out design Ability to specify , organize manufacturing facilities (factories/plants) with
all required utilities
X
and review Quality objectives for Manufacturing equipment Ability to specify, design, improve manufacturing equipment and qualify
potential suppliers
X
Quality and Plant Managers. Manufacturing procurement Ability to set parameters to procure materials, components, elaborated
products
X
Manufacturing maintenance Ability to apply / implement /design a comprehensive maintenance plan
X
for a manufacturing entity
Manufacturing regulation Ability to adjust and optimize manufacturing resources to customer
X
demand fluctuation
Manufacturing direct Ability to perform and coordinate assembly and check tasks taking into
X
operations account quality and time factors.
Key Indicators : IE – NEE – OTDM – MDR – WIP – ROI
Training – Tools : MTM – FMECA– VSM – Lean Manufacturing – Capability / Improvement (6 sigma) - Material Handling – Return on
investments analysis

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People commitment
10) Guarantee the balance Ex: Identified constraints by a project team

between objectives and Priority change and / or lacking in consistency :
resources including quality, Global : Not going to the end of the defined actions plans
Local : Support functions are not synchronized with the
productivity, and respect for production requirements
Absenteeism
humanity. Difficulty to act on a product already on the market
Coherence between information requirement of the line and ERP.
Impact of productivity savings on employment
Identified savings 2003 to 2004 Realized savings 2003 to 2005

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Product/process engineering
Each product/process combination must be :

simple (Lean Manufacturing) ,
reliable (Design For Six Sigma) ,
flexible (almost zero change over time) and
elastic (very quick changes in capacity) in order to meet
the customer’s exact requirements.
Engineering respect the Industrial Process Design

Approach (IPDA)

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11) From the beginning of a

Human Logistics Sales &
project, involve all contributors, Financial
Resources Marketing
Quality
internal customers and

partners (suppliers and
Information flow
distributors).
Product flow
Get under control, the manufacturing Product

Methods &
Maintenance
Purchasing Manufacturing
Industrialization
processes of critical part suppliers (SSQM) design

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12) Adhere to ergonomics, safety and

environmental rules and standards
Adhere to the stricter of either country or
Schneider standards
SPS
Tool Box
Schneider
Ergonomic
Handbook

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13) Apply the BAT (Best

Available Techniques)
SPS
ToolSchneider
Box
Ergonomic
Schneider
Ergonomic
Handbook
Handbook

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14) Design processes to allow step by step investment.
auto
EC4 EC4
auto
EC1 EC3 EC1 EC1 EC3

EC2 EC2
MAM
ET
ET9 ET8 ET7 ET6 ET5 ET4 MAM ET9 ET7 ET6 ET4 ET3 ET3
auto
ET auto auto auto auto auto auto
auto auto auto
auto
First year Third year

250 000 pdt/y 1100 000 pdt/y

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Product/process engineering:
15) Formalize each of the main

processes of production
Processes should be
described with flow charts
and control points and
updated for every
modification
identify all links
measure production lead

times
SPS ©LEI
Tool Box Lean Enterprise Institute
VSM : Value Brookline, MA
Stream
Mapping

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16) Follow Lean

manufacturing
concepts when
designing process
architectures
SPS
Tool Box
Single Piece Flow
U-shaped cells
Flexible capacity

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17) Rationalize and standardize raw

materials, product designs,
processes and equipment as much
as possible
Equipment : example of
standard module
PRODUCTS : example of
subassembly common to different
ranges of circuit breakers

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18) Supply work stations and
evacuate the containers,
without interrupting operators
SPS
Tool Box
Water Spider
Little Train

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19) Eliminate interruptions to flow,

rework, handling and container
transfers, and minimize WIP.
WIP
SPS
Tool Box
Single Piece Flow
WIP=/< 2 Hours

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24
Meca
Attente
expertise
Traversées 10 m 6m
Relais Saisie
20) Obtain production 10 m
Impression COBRA
lead times close to Bobinage Pose 2 Stock avant

Cache fil
the sum of the tertiaire traversées m finition 5 m

10 m 4 m 1,5 m
operation cycle 2m
5m 8 m4 m 2m
Stock avant EmballageProduit
times 6 mOF
Réglage C
finition
5m Capotage Laser
fini
Variante 30mA
Connections
Before UT waiting = 99.5% PLT = 20 hours
After UT PLT = 4 hours

Variante 30mA
frigo
Bobinage soudage
bobinage(AC)
soudage Réglage Capotage Laser Agrafage

C

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21) Reduce handling: involve supplier to use same

containers between suppliers and work stations
Dedicate employees for material handling.

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26
22) Product Reliability: control

industrial processes to a
capability / Cpk > 1.50
Use :
Lower Higher
Specification Specification
Limit Limit
- 6s -2s X +2s +6s

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23) Perform only customer- Ex: 14 inspections

required and legally mandated 8 risks
inspections, by process control error
(internal & external) process
2 customer
requirements
4 normative
This principle is our

target.
Inspections cannot be
removed until a
process is proven
and robust.
Inspections may be
needed in the short
term for process
control.

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24) Do it right the first time and

transfer only good products to
the next stage
Poka-Yoke
rejection feature
SPS Example : prevent

Tool Box « ESD » damage
Jidoka, Poka-
yoke, Zero Defect

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25) Flexibility: Promote late product

differentiation and maximum
component standardization Lead time
Comb
Profusion of variations to be delayed
Rake
Designed for
Lean

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26) Flexible: Promote “one piece

flow” production

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31
27) Strive for zero changeover time

performed by the operator.
Example :
Box A
Spacer block Box B

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25000
28) Elastic: Size the capacity 20000 The production tool can’t meet
according to service objectives
15000
Qtés
Ex : for 98% of Service rate 10000
Daily 5000
capacity
If lead time = 10 days 10000/day
0
25000
The production tool can't meet
20000
daily
If lead time = 1 days capacity
15000
20000/day
Qtés
10000
5000
0
Jours 33
33
29) Systematically facilitate mutual aid by

having work stations close together

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34
30) Quality Related to Product Transfers or New Products:

Invest to obtain quality
and track costs, as a COQ: $ Cost to Obtain Quality
function of quantities Quality measured in PPM
manufactured and PPM: Learning Curve
MDR/FFR/PRR. (costs
should follow the learning
curve)
Applicable to:
• ramp up of a new product
• a major change to an existing
product
• an existing product transfer
to a new assembly location Quantity
J1 J2 J3 J4
Ex : the 100th the 1000th the 10 000th the 100 000th

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35
Management of industrial and logistic processes
to satisfy customer requirements
The design and implementation of the supply

chain must conform to the guidelines stipulated
in the Industrial and Quality Policies.

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36
31) Meet the customer’s exact requirements
Delivery When they want it.
Quality Get what they order and it works
Design Meets their requirements
Delivered On Time Ordered - Received Required - Result

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32) Minimize interruption to flow caused by
outsourcing sub-assembly operations inside a process.

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33) The Master Production Schedule (MPS) is the key process for high
level of global logistic performance.
MPS is updated monthly according to the rolling forecast.
MPS is consistent with sales forecasts, mastering deviations (gap between forecast
and actual orders) .
Plant Manager is in charge of resources allocation according to service and
availability level objectives.
Material
Material Reqmts
Requirement
Planning
Planning (MRP)
MPS
MPS
Material
Kanbans Reqmts
Planning
Capacity
Capacity
Capacity
Production
Production
Demand
Demand Stock
Stock
Stock Control
Control
Management
Management
Sales
Sales &
Operational
Operational Settlement
Settlement
Forecast
Planning
Controlling
Control
Controlling

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34) Schneider manufacturing utilizes a pull production and materials
system based on real customer demand and each link of the supply
chain is under a formal delivery time contract
Order queue
10 300
9
250
8
7
200
6
5 150
4
100
3
2
50
1
0 0
3/11
4/11
5/11
6/11
7/11
8/11
11/11
12/11
13/11
14/11
15/11
17/11
18/11
19/11
20/11
21/11
22/11
24/11
25/11
26/11
27/11
28/11
29/11
SPS
Tool Box Order queue in days Orders contract
Pull Production
Kanban

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35) Include the suppliers in the process
Send monthly forecast to the suppliers.
Use frequent orders with short delivery time and small lot size consistent with our
containers.
Measure and share with the suppliers their service level and quality performances.
Challenge and assess suppliers on their quality improvement plans

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36) Manufacture the
strict minimum and
adhere to "just in time"
principles (such as FIFO).
Produce what is needed, when it is needed and

not before.

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37) The goal is Zero Defect. Continuously improve and
control processes, measured in ppm: MDR, PRR, FFR
Measure
Plant Return Rate Characterize
(qty)
400 2000 Process

SIM
) (ppm)
Monthly failure rate
300 1500
Annual rate
200 1000
Evaluate Control
Understand Maintain New
100 Understand Process 500
Process
Process
0 0
mars-00
nov-99
août-99
fev-00
mar-99
avr-99
mai-99
juin-99
sep-99
dec-99
jan-00
oct-99
juil-99
VSM Kaizen
Improve
Improve and
Vigi C60 Vigi DPN Tx annuel (ppm)
Verify Process

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38) Simplify and then synchronize
information flow of the supply chain.
Manual input + automatic input

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39 Identify, quantify in hours, target and then, eliminate : waste &
non-quality causes
waiting time,
transportation,
rework
TS
(Time
Non value-added time Spent)
IE = UT / TS or
NEE = UT / POT
POT
(Plant
UT Operating
Useful time)
time
l

MAM 45
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39 Identify, quantify in hours,
target, and then, eliminate
waste & non-quality causes
Before
Surface reduction :
332 m2
After (- 50%)

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QUALITY
40) Implement the recommended quality and • OTDM - On Time Delivery
industrial KPI's (Key Performance Indicators) • OTA - On Time Availability
Share objectives and performance • MDR - Manufacturing Defect Rate
assessment results with Product
• PRR - Plant Return Rate
Departments and Operating Division
Quality PRODUCTIVITY
• MBCP - Manufacturing Base Cost Productivity
Target • DLP - Direct Labor Productivity
Share quality
EFFICIENCY
performance and
• IE - Industrial Efficiency
objectives through
periodic Product PRR Actual • KE - Efficiency coefficient
Plant Return Rate • SUR - Staff Utilization Rate
Reviews
• NEE - Net Overall Efficiency
Report to Operating
Target • PLT - Product lead time
Divisions and Product
Departments MDR Actual
RESOURCES
Manufacturing
Defect Rate • IR - Inventory Rate

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Appendix
List of the 40 SPS principles

SIM, Appendix to Principle 4
Quality Appendix to Principle 35

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List of the 40 SPS principles (1/3)
1) People commitment
1. Give the operators a sense of responsibility, especially for product quality and elasticity requirements
2. Encourage mutual aid and promote team work and team spirit
3. Increase skill levels and autonomy to control processes. Make use of operator versatility.
4. Implement short interval management and cross functional status reviews, which are consistent for all employees of
the plant
5. Focus support function resources towards satisfying customer and production requirements
6. Establish standardized performance, accountability and workload measurements for everyone.
7. Include operators when re-thinking the system and generating ideas for improvement
8. Shorten information and communication lines.
9. Manage the key jobs, linked skills and adaptability programs (training …)
10. Guarantee the balance between objectives and resources including quality, productivity, and respect for humanity.
2) Product/Process engineering
11. From the beginning of a project, involve all contributors, internal customers and partners (suppliers and distributors).
12. Adhere to ergonomics, safety and environmental rules and standards. (Adhere to the stricter of either country or
Schneider standards)
13. Apply the environmental BAT (best available techniques)
14. Design processes to allow step by step investment

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2) Product/Process engineering
15. Formalize each of the main processes of production
16. Follow “Lean manufacturing ” concepts when designing process architectures
17. Rationalize and standardize raw materials, product designs, processes and equipment as much as possible
18. Supply work stations and evacuate the containers, without interrupting the operators
19. Eliminate interruptions to flow, rework, handling and container transfers, and minimize WIP
20. Obtain production lead times close to the sum of the operation cycle times
21. Reduce handling and use the same containers between suppliers and work stations. Dedicate employees for material
handling
22. Product reliability : control industrial processes to a capability / Cpk>1.50
23. Perform only customer-required and legally mandated inspections, by process control (internal & external)
24. Do it right the first time and transfer only good product to the next stage (Jidoka, Poka Yoke)
25. Flexibility : promote late product differentiation and maximum component standardization
26. Promote "one piece flow" production
27. Strive for zero changeover time performed by the operator.
28. Elasticity : size the capacity according to service objectives
29. Systematically facilitate mutual aid by having work stations close together
30. Quality Related to Product Transfers or New Products: Invest to obtain quality and track costs, as a function of quantities
manufactured and PPM: MDR/FFR/PRR. (costs should follow the learning curve)

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3) Management of industrial and logistic processes
31. Meet the customer’s exact requirements (delivery, quality, design)
32. Minimize interruption to flow caused by outsourcing operations inside a process
33. The Master Production Schedule (MPS) is the key process for high level global logistic performance:
34. Schneider manufacturing utilizes a pull production and materials system based on real customer demand and each link of the
supply chain is under a formal delivery time contract.
35. Include the suppliers in the planning and manufacturing process
36. Manufacture the strict minimum and adhere to the ‘just in time’ principles (such as FIFO)
37. Continuously improve and control processes measured in ppm: MDR, PRR, FFR (the goal is zero defect)
38. Simplify and then synchronize information flow of the global supply chain
39. Identify, quantify in hours, target, and then eliminate waste & non-quality causes (waiting time,
transportation, rework, m2, etc...)
40. Implement the recommended quality and industrial KPI's (key performance indicators). Share objectives and performance
assessment results with Product Departments and Operating Division Quality

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Appendix P4
SIM - Short Interval Management
SIM (AIC) is an organizational approach to running our business based on a

high frequency relationship between management and employees.
What SIM Is What SIM Does
SIM is primarily carried out by functional and support • Base Cost Efficiency
functional management - aligned with value streams • Sustains improvement
• Based on a Contract • Customer focused culture
• HR driven through entire organization • Communication and Responsiveness
• Performance measurement for everyone • Personal Accountability
(equality) • Continuous improvement
• Schedule discipline / event cycle • Quality: zero defect
• Contractual meetings • Necessary condition to reach 6 sigma
• Personal schedule and red/green analysis performance
• To do lists, prioritization matrix, action • Less time in meetings, more results
tracking, plant action plan, on going project
management, personal OTD service
measurement.
• Audited: scored with feedback

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Appendix P35
Quality Appendix P35

Send monthly forecast to the suppliers.
Use frequent orders with short delivery time and small lot size consistent with our containers
Make sure the SAM (Supplier Approval Module) triggers are respected - this includes brand
labelling suppliers. (see chapter SAM in SSQM overview [*])
Audits of supplier’s critical parts processes planned every year or in event of a quality issue
Comply with SQM (Supply Qualification Module) triggers for PPEP form (Part Product
Evaluation Plan) (see chapter SQM in SSQM overview [*])
Comply with delegation rules as defined by Product Departments for validation based on part
critical level (delegation rules to be defined)
Measure and share with suppliers their quality (Schneider incoming inspection policy) and On
Time Delivery performance
Challenge and assess suppliers on their quality improvement plans (see chapter SPM- Supplier
Performance Module- in SSQM overview [*])
Have supplier contracts reinforced in order to better control part and process changes at
suppliers (prior information mandatory in case of changes). This applies mainly to specialist
entities which still have purchasing department.
[*] link to SSQM overview

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Appendix P37

Implement control charts at process key points and launch appropriate actions in case of
quality drifts
Analyze non-conformities and defects (Pareto analysis, 5 why's…) and drill down to root
causes
Implement Poka Yoke
Use appropriate methods (Six-Sigma approach, Kaizen) to conduct process improvement
actions
Use 8D (8 Disciplines) Problem Solving method for critical issues (quality/safety)
Monitor capability evolution of test equipment - gage R&R, bias.
Inform immediately Product Departments of any critical shortage, product recall from
stock, shipment or production “on hold” (blocking) for quality reasons -this request is
included in the contract for brand labeling suppliers
Inform immediately Product Departments of any quality issue with an impact on
customers (this request is included in the contract for brand labeling suppliers)
No modifications without formal approval of Product Departments (Part and Product
Control Plan, Parts and components, Test equipment, Tooling)

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Appendix P40

Share quality objectives and performance through periodic Product Reviews
Field Failure Rates if available (FFR)
Plant Return Rate for each production line (PRR)
Manufacturing Defect Rates (MDR)
Surveillance test results
Progress of improvement Six-Sigma plans
Supplier quality and on time delivery performance indicators (ENCR, INCR, ESSR, ISSR)
Quality and On Time Delivery performance for components, parts, sub-assemblies
Supplier and internal audit reports
Tooling age versus life cycle
Main risks for quality
RTE "Technical Return for Expert assessment", process performance (quality and timeliness of
the response)
Report to Operating Divisions and Product Departments
Send every month to Operating Division Quality and Product Department a detailed quality
performance report (performance versus targets, gap analysis)
Report every quarter and possibly every month to Operating Division Quality and Product
Department, information on progress and effectiveness of quality improvement plans

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G&I / Industrial Deployment

Schneider Production System

SPS - 0041EN - indAS Illustrated guiding principles of SPS

Appendix: links to the appendix for more specific information on the

Reference to suggested reading on topic.

SPS - 0041EN - indAS Illustrated guiding principles of SPS

SPS - 0041EN - indAS Illustrated guiding principles of SPS

Management of industrial and logistic

SPS - 0041EN - indAS Illustrated guiding principles of SPS

Quality, productivity and elasticity come

SPS - 0041EN - indAS Illustrated guiding principles of SPS

1) Give the operators a sense of

middle production rate

minimum production rate

SPS: Lean Manufacturing & SIM

SPS - 0041EN - indAS Illustrated guiding principles of SPS

2) Encourage mutual aid and

SPS - 0041EN - indAS Illustrated guiding principles of SPS

4) Implement Short Interval

5) Focus support function resources towards

SIM: Short Interval Management

6) Establish standardized performance,

SPS - 0041EN - indAS Illustrated guiding principles of SPS

7) Include operators when re-thinking

SPS - 0041EN - indAS Illustrated guiding principles of SPS

SIM: Face to face, one on one

Example: use e-mail for

SPS - 0041EN - indAS Illustrated guiding principles of SPS

9) Manage the key jobs, linked

Key Indicators : IE – NEE – OTDM – MDR – WIP – ROI

SPS - 0041EN - indAS Illustrated guiding principles of SPS

10) Guarantee the balance Ex: Identified constraints by a project team

Identified savings 2003 to 2004 Realized savings 2003 to 2005

SPS - 0041EN - indAS Illustrated guiding principles of SPS

Each product/process combination must be :

Engineering respect the Industrial Process Design

SPS - 0041EN - indAS Illustrated guiding principles of SPS

11) From the beginning of a

internal customers and

Get under control, the manufacturing Product

SPS - 0041EN - indAS Illustrated guiding principles of SPS

12) Adhere to ergonomics, safety and

SPS - 0041EN - indAS Illustrated guiding principles of SPS

13) Apply the BAT (Best

SPS - 0041EN - indAS Illustrated guiding principles of SPS

14) Design processes to allow step by step investment.

EC1 EC3 EC1 EC1 EC3

First year Third year

SPS - 0041EN - indAS Illustrated guiding principles of SPS

15) Formalize each of the main

identify all links

measure production lead

SPS - 0041EN - indAS Illustrated guiding principles of SPS

16) Follow Lean

SPS - 0041EN - indAS Illustrated guiding principles of SPS

17) Rationalize and standardize raw

SPS - 0041EN - indAS Illustrated guiding principles of SPS

SPS - 0041EN - indAS Illustrated guiding principles of SPS

19) Eliminate interruptions to flow,

SPS - 0041EN - indAS Illustrated guiding principles of SPS