Lean Corner

How do enterprise-specific production systems (XPS) lead to operational excellence?

The concept of company-specific production systems (XPS)
Origins of specific production systems
A strategic approach to optimize industrial production
Examples of XPS in different industries: applications and success stories
Challenges and solutions for optimizing production systems

Imagine you’re the COO of a global company, with many factories spread across the globe. How do you improve production operations across multiple sites at the same time? The answer lies in the implementation of Specific Production Systems (PSS), a strategic approach aimed at standardizing practices and strengthening global competitiveness.

The concept of company-specific production systems (XPS)

Inspired by the famous Toyota Production System (TPS), many large companies have chosen to develop their own specific production systems, often referred to by the acronym XPS (where “X” stands for the name of the company and “PS” stands for the “Production System”).

An XPS is an organizational framework designed to standardize and improve production processes within a company.

These systems are particularly popular with multinational companies facing the challenge of optimizing their global manufacturing network. They help consolidate local programs into a global improvement initiative, facilitating the sharing of organizational practices and the creation of a sustainable competitive advantage.

XPS are available under various names, such as Business System, Operations System, Performance System, or Lean Program. Since the 1990s, these systems have become a go-to tool for global manufacturers, covering a wide range of industry sectors.

Origins of specific production systems

The origins of XPS can be traced back to the early 20th century, with Henry Ford’s concepts of mass production. These principles were perfected by Toyota in the 1950s with the introduction of just-in-time and the concept of jidoka (intelligent shutdown of production). These innovations laid the foundation for modern production systems.

The Toyota Production System (TPS) has served as the global benchmark for XPS development. This system, introduced in the West in the 1980s, demonstrated how production focused on waste reduction and continuous improvement could transform a company into a world leader.

A strategic approach to optimize industrial production

Diffusion of production systems: which sectors are concerned?

XPS, initially developed in the automotive industry, have expanded to various industries, such as:

Suppliers and processing industries,
Aeronautics, heavy vehicles, and medical industries,
Consumer goods and services, such as hospitals or government agencies.

Although often inspired by Lean Management, XPS are adapted to the specific contexts of each company. This customization ensures that the principles and tools used meet the unique needs of each organization, maximizing their effectiveness.

The strategic benefits of XPS for industrial performance

Developing a specific production system offers several strategic advantages:

Uniformity and consistency : XPS standardize processes across global locations, ensuring consistent performance.
Sharing of best practices : They facilitate the dissemination of innovations and effective practices throughout the network.
Continuous improvement: By embedding a culture of continuous improvement, XPS strengthen the company’s competitiveness over the long term.
Adaptability to local markets : While maintaining global consistency, XPS allows for flexibility tailored to regional and cultural specificities.

According to the study conducted on the Volvo Production System (VPS)(Company-specific Production Systems and Competitive Advantage, NTNU), an XPS can also:

Maximize resource utilization
Increase internal communication and staff mobility
Reduce duplication of effort while improving productivity and overall quality

Examples of XPS in different industries: applications and success stories

Volvo Production System (VPS): A Lean Model Adapted to Automotive Excellence

An emblematic example of an adaptation of the Toyota Production System (TPS) is the Volvo Production System (VPS), designed to meet Volvo’s specific requirements while incorporating the principles of lean manufacturing.

The VPS is based on several fundamental pillars:

Integrated quality (Jidoka): immediate detection and correction of anomalies to ensure a smooth and reliable process.
Just-in-time : optimization of production flows in order to minimize inventory and lead times.
Additional Volvo-specific principles, such as “The Volvo Way”, which focuses on corporate culture, leadership and continuous improvement. In addition, there is strong team collaboration and increased process stability, ensuring efficient and flexible production.

Applied to all Volvo Group plants, VPS helps to optimize industrial performance, continuously improve quality and ensure maximum customer satisfaction.

Airbus Operating System (AOS): A Model of Excellence for Aeronautics

The Airbus Operating System (AOS) is the methodological framework put in place by Airbus to optimize its production and strengthen its leadership in the aviation industry. More than just a manufacturing system, the AOS embodies a philosophy of industrial excellence, guaranteeing the optimization of processes, the standardization of practices and the integration of new technologies.

It is based on several key principles:

Lean Manufacturing Aerospace

reducing delays and waste

Digitalization and innovation

improve component traceability

Optimization of production flows

increase production rate and meet market demand

Standardization and global collaboration

consistent and harmonized production on an international scale

Applied to all the group’s plants, the AOS allows Airbus to strengthen its competitiveness, guarantee optimal quality and ensure an efficient ramp-up in the face of the challenges of the aeronautics market.

Danaher Business System (DBS): A Philosophy of Operational Excellence and Innovation

The Danaher Business System (DBS) is a systematic, integrated approach that guides Danaher Corporation, a conglomerate specializing in industrial technology, healthcare, and life sciences. More than just a production model, DBS is a true corporate culture based on continuous improvement and operational excellence. It is based on several key principles:

Lean Manufacturing : reduction of waste and improvement of process performance.
The PDCA (Plan-Do-Check-Act): a cycle of continuous improvement used to solve problems and optimize operations.
Customer centricity : alignment of processes and innovations with customer needs.
Management excellence : advanced tools and methodologies to drive performance and growth.

Applied to all subsidiaries of the group, the DBS allows Danaher to continuously improve its efficiency and accelerate technological innovation, a key asset in an industry where speed and accuracy are essential.

These three models are a perfect example of how companies in a variety of industries are adapting lean management principles to address their specific challenges and optimize operational performance.

Today, many companies have implemented their own XPS (eXcellence Production System) to structure and improve their processes:

Stellantis : Stellantis Production Way (SPW)
Continental : Continental Business System (CBS)
Sanofi : Sanofi Manufacturing System (SMS)
Thales : Thales Industrial Operation Model (TIOM)
Mars : Factory Mars Operating System (FMOS)

The rise of these systems is a testament to their key role in the pursuit of industrial excellence, enabling companies to maximize their efficiency, competitiveness and innovation capacity, regardless of their field of activity.

Challenges and solutions for optimizing production systems

How do you overcome resistance to change in XPS?

The adoption of high-performance production systems (XPS – eXcellence Production Systems) often meets with organizational resistance. These resistances can be linked to several factors:

Entrenched habits and organizational inertia : Employees and managers are often attached to existing processes and may perceive change as a
Lack of awareness and training : A poor understanding of the principles and benefits of XPS can lead to reluctance, especially if initial training is insufficient or if short-term gains are not clearly explained.
Fear of failure and work overload : Implementing new processes can be perceived as an additional burden, especially if it is poorly planned or the necessary resources are not allocated.
Misalignment between management and operational teams : If senior leaders don’t show clear and active support, employees may not be fully engaged in transformation.

Studies estimate that two out of three Lean initiatives fail mainly due to a lack of buy-in from employees and managers in the medium term. To get around this obstacle, several strategies can be put in place:

Involve employees from the beginning by consulting them on changes and involving them in decisions.
Train and coach teams to ensure a clear understanding of objectives and tools.
Highlight early successes to demonstrate the effectiveness of new practices and boost motivation
Supporting change with committed leaders, capable of playing a role model and relaying a positive vision of transformation.

Maintaining commitment: a major challenge for industrial performance

The success of a production system depends not only on its initial adoption, but also on its sustainability. One of the major challenges is to keep managers and teams engaged, especially when the results are not immediately visible.

The most common challenges include:

Frustration with late results : The effects of improvements, especially in a Lean context, can take time to materialize, which can discourage teams.
Return to old practices : Without rigorous monitoring and a culture of continuous improvement, some teams can gradually revert to their old ways.
Lack of recognition and appreciation : When efforts are not recognized or rewarded, employees can lose motivation and become disengaged.
Lack of managerial support : If managers are not sufficiently trained or involved, they risk not relaying good practices correctly.

To ensure the sustainability of improvements and avoid teams running out of steam, it is essential to put in place strategic levers to strengthen long-term commitment.

Clear Strategic Alignment : Ensure that the vision of the XPS is understood and shared at all levels of the organization.
Setting up appropriate performance indicators : Define clear KPIs to measure progress and celebrate intermediate successes.
Transparent communication : Regularly share progress and explain how each action contributes to overall improvement.
Culture of recognition : Valuing employees’ efforts through positive feedback, incentives or development opportunities.
Exemplary Leadership : Develop leaders who can inspire, guide and support teams on a daily basis.

With these levers, an organization can ensure sustainable transformation and successfully optimize its production systems.

Specific production systems (XPS) are a lever for improving the competitiveness of companies. Inspired by TPS, they adapt to the needs of each organization, fostering innovation, collaboration, and standardization across global locations.
In an increasingly demanding economic environment, XPS play a key role in achieving operational excellence and remaining competitive over the long term. You are likely to encounter these systems during your career, as they have become a go-to reference in many industry sectors!

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