GAMI Newsletter. Foreword. News. News Industry Projects Training Events Contact. News Industry Projects Training Events Contact

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1 Foreword Dear Partners and Friends, The Global Advanced Manufacturing Institute is aiming at implementing Operational Excellence to manufacturing companies in China. During the first quarter of 2016, we have explored several projects with regard to our value adding processes Sourcing, Supplier Development, Quality Management, Productions Systems and Logistics. Since the opening ceremony of our Industry 4.0 Demonstration and Innovation Center in November 2015, we are glad to have welcomed about 300 training participants and visitors. The newsletter will provide you with more information regarding our News, industry projects, training services as well as our marketing events. Sincerely, Stefan Ruhrmann News Gisela Lanza Receives Cross of the Order of Merit Professor Gisela Lanza of Karlsruhe Institute of Technology (KIT) is awarded the Cross of the Order of Merit of the Federal Republic of Germany by President Joachim Gauck on March 7. On the eve of International Women's Day, the President honors 24 women for their outstanding achievements in culture and science. Gisela Lanza receives the distinction for her research in the field of production engineering and her commitment to the promotion of young scientists. German Federal President Joachim Gauck Honors KIT Professor for Her Achievements in the Field of Production Engineering Page 1 of 7

2 Planning and designing production systems in global production networks is the focus of Professor Gisela Lanza s research. At KIT, the engineer is Head of the Production Systems Group of the Institute of Production Science (wbk). Here, she develops methods and models that enable high-quality and yet cost-effective production. "This involves, among other things, how companies can shape and implement the transition to an automated and intelligent production in the sense of Industry 4.0'", Lanza says. In doing so, she puts particular emphasis on production in global production networks: "Today, the production of complex products is distributed over various locations throughout the world." Thus, a basic understanding of important markets such as China is vital, she says. Therefore, Lanza, who is also KIT s representative for China, founded a branch office of her institute in Suzhou: The Global Advanced Manufacturing Institute (GAMI). At GAMI, the theoretical understanding of global production structures is used to create concrete, robust, and locally adapted networks for industrial enterprises. Since 2014, the GAMI has also been acting as KIT s official representative office in China. As Germany s first shared professor, Lanza, who studied industrial engineering and has a PhD in mechanical engineering, combined her teaching and research activities at KIT with management tasks in the automotive industry for many years. Not least, the award also recognizes Gisela Lanza s commitment to young scientists: She addresses students and young researchers from around the world not only with her lectures at KIT s Department of Mechanical Engineering and the HECTOR School of Engineering and Management of the International Department of KIT, but also with strongly involving the GAMI in research and teaching at KIT. Industry Projects Purchasing - With Supplier Development to Success Chinese economy has entered a new phase that is different from the high-speed growth pattern exhibited in the past. It is a new trend that features a more sustainable, mid-speed growth with higher efficiency and lower costs. Therefore, industrial companies need to pay more attention to Supplier Development (SD). This can enhance market competitiveness and bring benefits to companies stake holders. Traditional SD projects mainly focus on suppliers in-plant activities. However, in material-intensive industries they only influence approx. 20% of the total cost, whereas purchased parts influence 60 to 80%. Furthermore, the current situation at some Chinese suppliers purchasing departments is improvable: Little support from the management board, lack of strategic focus and missing efficient methods are faced by Chinese buyers. Page 2 of 7

3 The Global Advanced Manufacturing Institute (GAMI) provides solutions to improve suppliers purchasing activities and to lower material costs for suppliers as well as purchasing costs for OEMs. In a first step, the purchasing performance of a supplier is assessed in different fields: e.g. sourcing organization and process. Based on the results, a comprehensive purchasing system is developed and workshops with employees are defined. Depending on the specific situation, different topics can be covered: e.g. purchasing strategy, negotiation and contracting. For further information about Supplier Development please contact Mr. Huang Bin (huang.bin@silu.asia) or visit our website Integrating Social Responsibility & Technical Compliance in the Supply Chain Due to rising claims for ensuring Corporate Social Responsibility (CSR) and Technical Compliance within global supply chains aspects like resource efficiency, work safety, quality and environmental issues as well as legal aspects have to be integrated in Supplier Management. All these topics can be seen as the pillars for implementing CSR at a company as illustrated in the following figure: German companies seek to improve their Chinese suppliers with respect to those topics on the one hand due to liability reasons and protecting the brand image and on the other hand for ensuring sustainable sourcing. Especially for Chinese companies the current knowledge level with respect to CSR and Technical Compliance is quite low. This is caused by a very large amount of international standards Chinese companies have to fulfill, as well as the lack of awareness of those. Furthermore, the state of the art so far only shows insufficient approaches for improving Chinese companies in these fields. In order to support German companies in improving their Chinese suppliers in these topic fields, the so called SUSTAIN project has been launched. The project is conducted by GAMI Global Advanced Manufacturing Institute in cooperation with German companies and their Chinese suppliers, having a project horizon of three years. By intense cooperation of all involved parties the project team aims to overcome all introduced challenges. It is one main goal of GAMI to not only make Chinese companies fulfill their customers requirements but to make them understand how they can also benefit from those with respect to CSR and Technical Compliance. Therefore, one important step of the project approach is firstly to analyze the suppliers individual starting situation and specific improvement potential by supplier visits. Identifying individual action lists is necessary for attaining tailor-made improvements for the Chinese suppliers and therefore meeting their customers requirements. In order to improve a supplier s capabilities, GAMI conducts various Page 3 of 7

4 workshops and provides methodologies to Chinese companies. With this approach it is ensured that the suppliers are also able to continuously improve in the future by applying the introduced methods. To give an example, a 5S workshop for workplace organization has been conducted at a Chinese supplier. This workshop not only included a theoretical part but also a practical activity on the production site. This approach ensures that the employees of the Chinese supplier understand how to conduct the introduced methodology by hands-on experience. This approach promises a high probability of successfully improving Chinese suppliers with respect to CSR and Technical Compliance. For further questions on our project approach and success please contact Mr. Huang Bin (huang.bin@silu.asia) or visit our website Our Goal Operational Excellence The 4-month project within the field of machine building aimed at improving the customer s operational performance. For that purpose during the analysis phase potential improvement topics have been defined with the help of on-site assessments, value stream mapping analysis and the swim lane-methodology. 6 key figures have been defined: Process improvement: Reduce lead time by introducing one-piece-flow Layout optimization: Reduce transportation time Warehouse improvement: Reduce consolidation time with a new arrangement and an improved picking list Status controlling tools: Develop status controlling tools for design department as well as for production planning for transparent information sharing and efficient capacity utilization Changeover improvement: Reduce changeover time Assembly process card: Develop and integrate assembly process cards to improve quality rate and simplify material management These topics have been successfully implemented in a 3-month-execution phase. Thanks to the ambitious core team a smooth running of the project was guaranteed. For a sustainable settlement of the improvement steps members of the core team received trainings in the field of production planning, lean management and the usage of MS Excel. All in all cost reductions, increased quality, shortened throughput times and efficient utilization of resources have been realized in our words: operational excellence! please feel free to contact Mr. Stefan Ruhrmann (ruhrmann.stefan@silu.asia) or visit our website Training P-FMEA Training on February 27, 2016 GAMI conducted an in-house P-FMEA (Process-Failure Mode and Effect Analysis) training for one customer in Suzhou on February 27, 2016, which is professional in producing various kinds of microcomputer controller, connector and others. The P-FMEA is a systematic method to analyze a process in order to identify potential failure modes, their causes and effects on process performance. Starting with motivation, definition and construction of P-FMEA form was introduced. After the theoretical training, one internal production process was selected as pilot for the case study. The participants were divided into 4 groups according to 4 sub-processes, and each group has to fill out the form column by column and present their results in front of all participants. In the end of the training, some more potential failure modes were identified during team discussion. The feedback from trainees was positive with regard to trainer, training material and training organization. Page 4 of 7

5 GAMI launched Industry 4.0 Training Program KIT China Branch and GAMI opened an Industry 4.0 Demonstration and Innovation Center to prepare companies producing in China for the specific requirements, as China tries to increasingly digitalize its industry under the strategy Made in China 2025 in line with the German model Industry 4.0. The unique facilities and Industry 4.0 solutions are part of our consulting services to upgrade your Production System to a Cyber-Physical Production System with certain tangible benefits. GAMI Global Advanced Manufacturing Institute launched the Industry 4.0 Training Program with regard to Productions System, Logistics and Quality Management enabled by Industry 4.0. Our in-house trainings are supporting companies to assess their current state with regard to production, material and information flow. Furthermore, the workshops and trainings support the training participants to define their individual Industry 4.0 applications. Those pilot projects could be also benchmarked with existing Industry 4.0 solutions at our Industry 4.0 Demonstration and Innovation Center as well as solutions available on the market. Finally, Round No. No. the ( 轮数 participants ) ( 序号 ) will be trained to perform a cost-benefit ( 培训课程名 analysis. ) The next open course training Lean Production enabled by Industry 4.0 is coming up on July 7 and July 8. This training 1 provides the opportunity to combine Lean principles with the vision of Industry For more information about registration, training outline or other questions, please feel free to contact us via ing to 3 training@silu.asia, calling Ms. Yin under +86-(0) or click Industry 4.0 Training Program The 2 nd Round 5 Open Course Training Program Round 1 ( 第一轮 ) 4 6 GAMI Global Advanced Manufacturing Institute launched the round 2 of Open Course Training Program for This Training Program with Application three rounds of 5S Principle covers and Visual ten training Management topics into Demonstration including Production Line of Industry Management, 4.0 Quality Management, 7 Lean Logistics and Industry 4.0 Application Solutions. 8 Training Topics Improving maturity of your manufacturing process to 6 Sigma ( 提升企业制造流程能力达到六西格玛水平 ) Preventive Quality Assurance - Design and Process FMEA ( 预防性质量保证 设计和过程失效模式及后果分析 ) 7 steps to effective problem solving for a high-performance team ( 高效团队解决问题的七步法 ) Lean production enabled by Industry 4.0 ( 工业 4.0 背景下的企业精益生产管理 ) How to design your production line lean & intelligent ( 如何让您的生产线精益化和智能化 ) Flexible production planning: The key to competitive edge ( 弹性生产计划 : 开启竞争优势的密匙 ) (5S 和目视化管理在工业 4.0 示范线上的应用 ) Systematic Approach to Failure Prevention - Poka-Yoke Duration [days] ( 培训时间 ) These training topics are conducted in our Industry ( 预防错误的系统方法 4.0 Demonstration 防呆法 ) and Innovation Center. This establishes a unique learning environment by combining How theory to upgrade and your practice internal logistics as well to as lean a & platform smart for expertise exchange. Also our trainers 9 Overview of GAMI Open Training Courses 2016 GAMI 2016 公开培训课程概览 ( 如何让您的内部物流精益化和智能化 ) know-how and industry expertise provide the possibility to achieve the most efficient knowledge transformation. Insight into how Industry 4.0 brings benefit to your company 10 Please refer to the table below for details: ( 工业 4.0 前沿实战应用及实际收益展示 ) Time Schedule ( 培训日期 ) / / Improving maturity of your manufacturing process to 6 Sigma ( 提升企业制造流程能力达到六西格玛水平 ) Preventive Quality Assurance - Design and Process FMEA ( 预防性质量保证 设计和过程失效模式及后果分析 ) steps to effective problem solving for a high-performance team ( 高效团队解决问题的七步法 ) Lean production enabled by Industry 4.0 ( 工业 4.0 背景下的企业精益生产管理 ) /08 Round 2 ( 第二轮 ) 5 6 How to design your production line lean & intelligent ( 如何让您的生产线精益化和智能化 ) Flexible production planning: The key to competitive edge ( 弹性生产计划 : 开启竞争优势的密匙 ) Application of 5S Principle and Visual Management into Demonstration Line of Industry 4.0 (5S 和目视化管理在工业 4.0 示范线上的应用 ) Systematic Approach to Failure Prevention - Poka-Yoke ( 预防错误的系统方法 防呆法 ) How to upgrade your internal logistics to lean & smart ( 如何让您的内部物流精益化和智能化 ) /12 10 Insight into how Industry 4.0 brings benefit to your company ( 工业 4.0 前沿实战应用及实际收益展示 ) For more information about registration, training outline or other questions, please feel free to contact us via ing to Improving maturity of your manufacturing process to 6 Sigma ( 提升企业制造流程能力达到六西格玛水平 ) training@silu.asia, calling Ms. Yin under +86-(0) or click 2016 Open Courses Preventive Quality Assurance - Design and Process FMEA ( 预防性质量保证 设计和过程失效模式及后果分析 ) 7 steps to effective problem solving for a high-performance team Page 5 of

6 Events Industry 4.0 Innovation Center OPEN DAY on March 7, 2016 Industry 4.0, also known as the "fourth industrial revolution, represents the latest trend for the manufacturing industry and the direction of China's future industrial upgrading. For the next decade, China and Germany agreed to strengthen cooperation in developing Industry 4.0 in both countries. China aims at becoming a leading manufacturing nation with the priority on digitalization and modernization. Since KIT China Branch opened the Industry 4.0 Demonstration and Innovation Center in Suzhou last year, inquiries for visits and trainings keep coming in. In terms of the policy of Made in China 2025, many local companies want to learn about the advanced German technology on site, in order to transfer it to their own business and improve their production. The Industry 4.0 Demonstration and Innovation Center serves as a platform for high-level trainings with regard to Production Management, Quality Management and Lean Logistics enabled by Industry 4.0 for Sino-German enterprises. In order to give them an insight to our facilities and trainings, we organized the OPEN DAY on March 7, 2016, around 90 participants took part. Our unique facilities and Industry 4.0 solutions are part of our consulting services to upgrade your Production System to a Cyber-Physical Production with certain tangible benefits. The next training related to Industry 4.0 will be Application of 5S Principle and Visual Management into Demonstration Line of Industry 4.0 on April 22, To become a partner and for more information, please do not hesitate to contact Stefan Ruhrmann (ruhrmann.stefan@silu.asia). Theory Introduction and Industry 4.0 line Demonstration on Open Day Event The Future is Now Forum at SIP Expo on March 17, 2016 Industry 4.0 is Germany's national strategy for the future of production. It is also the development direction for Chinese enterprises and means unlimited business opportunities, especially when the government proposed its Made in China 2025" strategy. KIT and BOSCH group are both the advocates and trailblazer in this region, with GAMI s advantage of top-level research and BOSCH group s rich experience. Therefore, we organized an Industry 4.0 knowledge sharing forum at Suzhou Expo on March 17, Nearly 150 exhibitor delegates attended. Executive Director of KIT China Branch, Ms. Guan Xiangzhen; Supervisor of the KIT Industry 4.0 innovation Center, Mr. He Yuli and Director of Bosch Industry 4.0 Unit, Ms. Ren Xiaoxia gave keynote speeches on the introduction of Industry 4.0, the current situation in China, the challenges as well as methods of implementing Industry 4.0 in China and shared application cases. Page 6 of 7

7 Speeches and Q &A session in the Forum GAMI is dedicated to support enterprises in their development by providing premium professional manufacturing skills as well as trainings and research. Currently, more and more organizations are paying stressed attention on the industry 4.0 knowledge, trying to learn and apply it in their own business, and we have established a structured project approach to assess the current state and map out a future state of a companies operations with regard to Industry 4.0. Contact GAMI Global Advanced Manufacturing Institute Room 1101, Building A, Wisdom Center, No.10 Moon Bay Road, Suzhou Industrial Park , Suzhou, P.R. China Tel.: Fax: Mail: info@silu.asia Web: Wechat: KITChinaBranch 全球先进制造研究所 江苏省苏州工业园区月亮湾路 10 号, 慧湖大厦 A 座 1101 室 , 中国电话 : 传真 : 电邮 : info@silu.asia 网址 : 官微 :KITChinaBranch To unsubscribe from this newsletter, please send an to: info@silu.asia We apologize for any inconvenience caused. For further questions, please do not hesitate to contact us. Page 7 of 7