Autoliv, Inc. · NYSE:ALV
Autoliv — Investor Day (October 2015)
18 slides from Autoliv's investor day presentation, Oct 2, 2015
Slide 1: Quality
Quality Svante Mogefors October 2, 2015
Slide 2: Safe Harbor Statement
Safe Harbor Statement* This presentation contains statements that are not historical facts but rather forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include those that address activities, events or developments t
Slide 3: A Challenging Automotive Environment
A Challenging Automotive Environment 3 Copyright Autoliv Inc., All Rights Reserved
Slide 4: Industry Focus on Quality
Industry Focus on Quality Increases as number of recalls surge Automotive Recalls (NHTSA) Much lower tolerance from Customers 60 for any quality related issues in vehicles Japan 50 # of Vehicles, Millions OEMs increasingly sensitive 40 ‒ Recalls decided for reasons which 30 previously would not
Slide 5: Industry Focus on Quality
Industry Focus on Quality Costs of non-quality issues and non-compliance are now becoming huge Recent example of non-compliance 5 Copyright Autoliv Inc., All Rights Reserved
Slide 6: Our Recall Situation in Safety
Our Recall Situation in Safety Number of vehicles recalled Industry Restraint Recalls* Autoliv ~1% 50 40 6% # of Vehicles, Millions 3% 30 4% 64% 4% 20 5% Seatbelt 10 Electronics 6% Airbag 0 2010 2011 2012 2013 2014 2015 YTD (*) Recall Databases 6 Copyright Autoliv Inc., All Rights Reserved
Slide 7: Our Commitment to Quality
Our Commitment to Quality Living Zero Defects our first strategic priority Q5 rolled out in Nov. 2010 globally Focused all employees towards the importance of quality A journey towards zero defects A common quality language Behavior 7 Copyright Autoliv Inc., All Rights Reserved
Slide 8: Our Approach to Quality
Our Approach to Quality A journey towards Zero Defects Quality in our Quality in our Quality in our People Products Processes Autoliv Quality Assurance System 8 Copyright Autoliv Inc., All Rights Reserved
Slide 9: Living Zero Defects
Living Zero Defects Decades of continuous improvement from design to final product Design robust products Buy flawless Product components Manufacture Development Supply flawless products Verify conformity Base Production of products Traceability, Quality Alert System Mistake and Issue Management Pro
Slide 10: How we live Zero Defects every day
Living Zero Defects How we live Zero Defects every day Design Manufacturing Prevention Learning APDS APS Alert Yokoten ”Tollgates” Similar to Toyota, Quick notification Global system 20 languages to concerned for sharing 10 Copyright Autoliv Inc., All Rights Reserved
Slide 11: Go & See
Living Zero Defects Built on strong engagement in entire organization ”Go & See” 11 Copyright Autoliv Inc., All Rights Reserved
Slide 12: Workshops a powerful Zero Defects tool
Living Zero Defects Workshops a powerful Zero Defects tool Step 1 Step 2 Step 3 Step 4 Step 5 Ensure Establish team Anticipate Make Active robustness Solve current and workshop potential Yokoten of all of previous problems plan / structure problems findings corrective actions 12 Copyright Autoliv In
Slide 13: Impact of implementing Zero Defects Workshops
Living Zero Defects Impact of implementing Zero Defects Workshops R07 10/22/2014 S25 4/27/2015 P10 4 /20/2015 $3 000 $17 500 $6 000 75% $14 000 62% $5 000 60% Monthly Scrap $2 000 $10 500 $4 000 at Zero Defect $1 000 $7 000 $3 000 $2 000 Lines $3 500 $1 000 $0 $- $0 okt-14 dec-14 feb-15 apr-15 jun-1
Slide 14: Living Zero Defects
Living Zero Defects Zero Defect activities rolled out in all plants in 2015 > 200 ZD lines by July 14 Copyright Autoliv Inc., All Rights Reserved
Slide 15: Our continued journey towards Zero Defects
Living Zero Defects Our continued journey towards Zero Defects focus on Q5 next steps An individual commitment to behavioral change It starts with me 2010 2015 2020 Tangibles focus, KPIs Intangible behaviors focus Q5 next steps 15 Copyright Autoliv Inc., All Rights Reserved
Slide 16: It is about shaping our behavior and lead by example
Living Zero Defects It is about shaping our behavior and lead by example Blame More Taking shortcuts Curiosity “Ticking in the box” Proactive mindset attitude Go & see “Not invented here” attitude Meet customer needs Sub-optimization Respect for standards Politics Feedback
Slide 17: In the end, it is also about pride and achievement
Living Zero Defects In the end, it is also about pride and achievement We made it happen! Before… It is impossible… After!!! Too difficult… Everything is possible! 17 Copyright Autoliv Inc., All Rights Reserved
Slide 18: Thank you!
Thank you! Every year, Autoliv’s products save over 30,000 lives and prevent ten times as many severe injuries 18 Copyright Autoliv Inc., All Rights Reserved