Lean Supply Chain at FCIYves Merel, VP Industrial Development

• Creation in 1988 by Framatome for diversification outside nuclear field

• 20+ acquisitions and 20+ years later, FCI is one of the largest global connector manufacturers

• November 3, 2005: FCI is acquired by Bain Capital, a private investment fund

• With operations in 30 countries and a turnover of 1.3 billion € in 2011, FCI is a leading connector manufacturer

• Its 14,000 employees are committed to providing their customers with high-quality and innovative products for a wide range of consumer and industrial applications

FCI Background and Profile

EuropeBesancon, FranceEpernon , FranceNuremberg, GermanyMattighofen, AustriaTatabanya, HungaryTurin, Italy

AmericasHuntingdon PA, USA Huntingdon PA, USA Juarez, MexicoSan Pedro Sula, HondurasSao Paulo, Brazil

AsiaBangalore, IndiaCochin, India Cochin, IndiaCochin, India Jurong SingaporeSenai, MalaysiaNantong, ChinaNantong, ChinaDongguan, ChinaNamyang, KoreaIshioka, Japan

22 Factories Worldwide

Continuous ImprovementDelivery (from 35% to 15% late)

Inventory (from 60 to 35 days)

Safety (from 8 to 2 accidents /month)

Quality (from 150 to 30 complaints /month)

Just In Time Principle

Typical FCI factory

StampSupplier Plate Assemble Customer

Stock Stock

Shippingwarehouse

Receivingwarehouse

1 changeper day

2 trucks per month

1 changeper shift

2 changesper shift

1 truck per week

23 days 3 days 2 days 7 days

Flow Time 35 days Difficult to forecast Useless inventories & shortages 15% Late Delivery

Easy to forecast No emergency to manage < 5% Late Delivery

FCI factory at target

StampSupplier Plate Assemble Customer

Shop Stock Shop Stock Truck PrepSupermarket

4 changesper shift

1 truck per day

4 changesper shift

10 changesper shift

1 truck per day

Shop Stock

Flow Time 10 days

3 days 1 day 1 day 2 days3 days

1- Production Batches

C/OPRODUCTION

time

SM

ED

WO

RK

SH

OP

BE

NE

FIT

S

SMED workshops are used to reduce the changeover time to the minute level and produce every part every day without consuming more than 10% of the

machine timeEPEI (from 8 to 4 days)

2- Procurement Batches

Receiving Frequency (from 10 to 5 days)

Milk Runs and Single Box Orders are used to buy the exact need and transport every part every day without spending more on freights

0

5

10

15

20

25

30

35

40

Agin

g In

vent

ory o

ver 5

wee

ks (M

€)

3- Visual Controlled Storage

Aging Inventory (from 37 to 20 M€)

Flow Racks, Kanban and Truck Preparation Areas are used to highlight excesses and shortages and allow management to conduct daily problem solving routines

Flexibility2011 average

Target

2008 average

Inventory is the Enemy of Delivery