Alstom continues international deployment of its APSYS
production system

In a context of a developing rail market and stronger
competition, APSYS is an useful tool for increasing the
companys manufacturing competitiveness. It is currently
deployed at 27 manufacturing sites in 13 countries.

An approach aimed at improving manufacturing
performance

Launched in 2004, Alstoms production system APSYS was
inspired by the lean manufacturing methods developed in the
automotive industry and includes adaptations for the rail sector:
standardization of operations, problem solving, involvement of
operators in the field, management of methods and tools for
continual improvement (kaizen in Japanese), and capitalization,
such as sharing local best practices to build a common reference
tool for all. The deployment of this new mode of production
management is in line with Alstoms commitment to
accelerating and sustainably supporting the development of its
manufacturing system in the areas of quality, cost and deadlines
(QCD) as well as safety. It also introduces ideas until now
rarely used in the rail manufacturing sector. It includes, for
example, a switch from a push flow to a
pull flow which is based on a simple idea:
components are replaced as and when they are used, and not the
opposite. Just-in-time delivery makes it possible
to considerably reduce outstanding and stocked items, both of
which represent extra costs and immobilized capital. With APSYS,
Alstom has reduced its inventory by 50% over three years.

APSYS also meets Alstoms need to support its profitable
growth, in particular on the international scene. By defining a
reference tool for the transfer of its production methods and
tools, Alstom ensures flexibility in its manufacturing processes,
enabling it to rapidly absorb increases in output and possible
load transfers among its sites. Each Alstom train must be
manufactured with identical processes regardless of the site at
which it is assembled. Alstoms production system is thus
based on a set of simple methods and tools that is easily
transferable between manufacturing sites. These are developed on
the basis of QCD and safety objectives which are also shared by
the entire company:

- Quality: ensuring the level of quality customers expect

- Cost: reducing manufacturing costs by 5% per year

- Deadlines: manufacturing products when they are needed

- Safety: protecting employees from physical harm

APSYS structures and facilitates the convergence of efforts to
ensure the consistent quality and constant progress that allow
Alstoms manufacturing system to reach its best level of
performance. The company aims for a 5% annual increase in
productivity at its APSYS sites.

Work stations and employees - the key factors in the
system

To ensure continual improvement in performance at work stations,
APSYS uses a management style that stays close to the field. Work
stations and employees are the mainstay of the system. The
operators and managers implement APSYS using a range of simple,
user-friendly tools. It is essential to learn how to use them to
reach the objectives. Alstom offers training to help all
participants improve their skills and learn to use common
approaches and tools.

At all of its sites, Alstom uses a lean tool based on the
Five Ss work station maintenance guidelines . This
tool involves a series of actions aimed at eliminating
wastefulness likely to lead to errors, flaws or accidents. Its
application entails a standardization of work stations in which
the same production activities take place. It allows operators to
work in the same well-organized work environment. Each tool, for
example, must be stowed in a specific place. This type of
best practice is now applied at all Alstom sites
where APSYS has been deployed.

As part of APSYS, Alstom also organizes autonomous
team meetings. In the morning and afternoon, upon entering
the work station, each team meets for a short session during
which the members discuss the goals they have achieved and any
areas for improvement. Each operator leads this meeting in turn,
ensuring the involvement of the entire team and increasing in its
autonomy. These meetings are also an opportunity to define
channels for improving working methods.

Alstom also holds SWIPs . These are week-long programmes aimed at
identifying opportunities for improvements in order to eliminate
wasteful practices, improve ergonomics at work stations, reduce
tasks that lack added value and achieve financial gains. In
October 2006, a SWIP carried out on assembly lines for New
Pendolino high-speed trains at the Savigliano site in Italy led
to a 24% reduction in the area occupied. Similarly, at the Ornans
site in France, the time required for provision of certain items
was halved. And in Reichshoffen (France), the 11 SWIPs carried
out during 2008 led to savings of over 1 million.

These lean techniques are complemented with visual progress
tools. Standardized wall charts are hung where they can easily be
seen. Each team can therefore monitor real-time information on
progress toward its goals at any time and thereby identify areas
for improvement during team meetings.

Cross-functional and international deployment

APSYS has been progressively deployed for several years. In 2004,
initial experiments at sites led to a series of discussions on
the set-up of a production system common to all Alstom sites.
Today there are over 30 APSYS leaders in 13 countries
coordinating deployment of the tools and relaying orientations
prescribed by a steering committee.

First implemented only at sites dedicated to rolling stock and
components (La Rochelle, Reichshoffen, Belfort, Charleroi,
Belfort, etc.), APSYS now unites a growing number of players and
product lines. Since 2007 it has been integrated at sites
dedicated to train information system equipment (Villeurbanne in
France, Bologna in Italy and São Paulo in Brazil) and more
recently at sites dedicated to train maintenance equipment
(Madrid in Spain, Bucharest in Romania and Manchester in
England).

But the most noteworthy aspects of this system are the
possibility of assessing the maturity level reached by each site
and of progressively increasing requirements. Alstom has
therefore established two levels of measurement and assessment
for its production system:

- each site performs a monthly self-assessment and continually
corrects any discrepancies,

- the steering committee conducts audits of each site every six
to eight months.

Moreover, depending on the results of the audits, and because
identifying new opportunities for progress may prove difficult,
the assessment reference tool can be made more restrictive. It is
also possible to introduce new assessment criteria to follow
changes in Alstoms strategy. This ensures continual
progress in Alstoms manufacturing system.

After four years o f deploying APSYS, the initial results make it
possible to establish precise correlations between the maturity
level reached by the sites and their productivity gains, as well
as the manufacturing quality and reduction in accident frequency.
A comparison in the number of accidents clearly shows that the
sites with the best scores in APSYS audits are also the ones with
the lowest number of accidents.

About Alstom Transport

With sustainable transport in mind, Alstom Transport develops and
offers the most complete range of systems, equipment and services
on the rail market. Alstom Transport can manage an entire
transport system, from rolling stock to signalling and
infrastructure, and offers turnkey solutions. In 2007-2008,
Alstom Transport's orders increased by 39% over the previous
financial year and its turnover rose by 4%.

Press contact
Laurent Gerbet - Tel. + 33 (0) 1 41 66 92 83

laurent.gerbet@transport.alstom.com

Website:www.transport.alstom.com

1 Alstom Production SYStem

2 Lean manufacturing is an approach for
managing employees and systems based on a set of methods
which aim to reduce costs and the time required to obtain
products requested by customers while increasing product
quality. This approach involves eliminating wastefulness
and promoting the active involvement of all players in
the organization.

3The Five Ss are
abbreviations for five Japanese terms:
seiri (sorting),
seiton (orderliness),
seiso, (cleanliness),
seiketsu (standardization) and
shitsuke (maintaining).

4 Single Week Improvement
Programme