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KONE 2015 | SUSTAINABILITY REPORT
SUPPLY CHAIN
4 3
Read more
about our logistics on p. 26.
*The name of the 5S methodology comes from the words sort, stabilize, shine, standardize, and sustain.
We collect customer feedback on our quality
performance systematically and analyze it
using Six Sigma tools before taking corrective
action. We also set targets and monitor key
performance indicators (KPIs) such as the early
failure rate of our products.
At the end of the day, our customers’ views on
how we are doing are what count. According
to the global NPI Customer Loyalty Survey
KONE carries out every year, our efforts to
achieve supply chain excellence are bearing
fruit with the 2015 results for both product
quality and installation quality rising.
Continuous learning for better quality
We at KONE employ a set of techniques and
tools to improve the productivity and quality
of our operations. We apply Lean and Six
Sigma philosophies to eliminate waste and
reduce process variation throughout the entire
supply chain as well as in product and process
transitions. We implement the 5S* method in our
offices, factories, installation sites, and distribution
centers. We have also developed a Lean
manual and management model of continuous
improvement on implementing these principles.
By the end of 2015, over 1,800 people had
completed the Lean Passport E-learning Program,
which is available in 6 languages: Finnish, English,
Chinese, Italian, Spanish, and Czech.
Our Lean Practitioners advanced training has
been rolled-out globally in all KONE regions,
with around 120 participants trained and
certified by the end of 2015. Additionally, more
than 1,000 Lean projects were completed
successfully in 2015.
Over 300 KONE employees have been trained in
Six Sigma, and a majority of them have received
certifications. Some 120 new Six Sigma projects
were successfully started in 2015, and the Six
Sigma governance model for supply operations
was introduced in Europe and China.
KONE Park in Kunshan is KONE’s largest manufacturing unit in the world, with an engineering facility, R&D center, three
elevator factories and an escalator factory. KONE began operations in China in 1996, and opened its first Chinese factory
in Kunshan in 1998.
STEP CHANgE IN SUPPLIER
QUALITY
In the 10x Better Supplier Quality
program, suppliers are expected to
install quality control points into their
own production lines to monitor the
product and process characteristics
that are most critical to the quality of
the product supplied to KONE. This
enables any deviations or changes in
the quality of the production process
to be captured immediately during
production. Counter and adjustment
measures can then be initiated before
production processes run outside
acceptable tolerances, preventing
quality issues from impacting later
stages of the delivery chain.
In 2015, KONE actively coached
and trained suppliers to implement
these additional quality management
methods through a series of workshops
and continuous supplier quality
management efforts. We expect
the program to significantly further
improve the quality of KONE products.
KONE delivers over 3.3 million packages
from distribution centers to installation
sites, and around 1.2 million packages
of spare parts from distribution centers
to customer sites annually. 3.3 million
packages correspond to 1,150 million kg
and 2.8 million m
3
.