Focused supplier improvement process 010913

Focused Supplier Improvement ProcessFocused Supplier Improvement ProcessJanuary 2013

A Service-Disabled Veteran–Owned Small Business

41714 Haggerty Circle41714 Haggerty Circle●● Canton MI 48188Canton MI 48188●● Tel (734)266Tel (734)266--77007700●● Fax (734)266Fax (734)266--76007600Confidential

Company Background• Process Development Corporation (PDC) is a full service supplier

that provides technical support and knowledge based solutions to the automotive industry and manufacturing organizationsthe automotive industry and manufacturing organizations.

• Established in 1988, PDC is a global organization with operations in the United States, Canada, Mexico, South America and China.

• ISO 9001 certified, PDC consists of six major business areas: Manufacturing, Supply Chain Management, Engineering, Quality Systems, Logistics, Warehousing & Material Handling and Information Systems with significant experience in proactive and remedial supplier quality initiatives including:

– Supplier developmentpp p

– Supplier quality improvement

– Inspection, rework and containment

Confidential 2

– IT solutions related to quality performance and tracking

Focused Improvement Process

• PDC utilizes a disciplined approach that has been developed after over a decade of supporting General Motors and their supply base with quality improvement initiativessupply base with quality improvement initiatives.

• PDC has developed a process which applies known quality tools in a systemic way to achieve results. This system y y yprovides standardized data collection, problem solving discipline, remediation and reporting.

• PDC has seen success at approximately 80% of all supplier• PDC has seen success at approximately 80% of all supplier locations that have entered this program. On average measurable improvement can be seen with 60 – 90 days of

ki k ff T i ll 50% i t i k litprogram kick off. Typically, 50% improvement in key quality metrics can be attained within 60 to 90 days.

Confidential 3

Focused Improvement Process Discipline

Define the problem, protect the customer and the project goalsRequire Leadership Engagement from Customer & SupplierReference Ongoing Performance DataAssess Launch Risk ro

tect

Monitor New TechnologyCapture Delivery Issues

Measure key aspects of the current process and collect relevant dataStation by Station assessment of Capacity/Constraint Issues

Pr

ctStation by Station assessment of Capacity/Constraint IssuesMonitor Quality Capability, Process Capability, Design Capability

Analyze the data to investigate and verify cause-and-effect relationshipsRoot Cause DefinitionCorrective ActionDFMEA / PFMEA / Control Plan

Cor

rec

DFMEA / PFMEA / Control Plan

Improve or optimize the current processes / Shop Floor ExcellenceError ProofingOperator Training/Standardized Work nt

Visual Problem ManagementControl the future state process to ensure that any deviations from target are corrected before they result in defects

Prevent MethodologyQuality Gates

Pre

ve

Confidential 441714 Haggerty Circle41714 Haggerty Circle●● Canton MI 48188Canton MI 48188●● Tel (734)266Tel (734)266--77007700●● Fax (734)266Fax (734)266--76007600


Data / Containment Analysis / Process Remediation

Data ReviewData Review– Review and paretoize all documented customer return data and

internal supplier performance data

C t i t A l iContainment Analysis– Ensure adequate containment activity for all negative component

quality issues

Process Remediation– Ensure all negative quality issues are addressed internally to the

specific manufacturing process including• Robust internal quality gates• Adequate 8D Closeout• Updated DFMEA / PFMEA / Control Plan

Confidential 5

Updated DFMEA / PFMEA / Control Plan


3.0

3.5

4.0

4.5

5.0PPH Trend

2.0%

2.5%

3.0%

Pareto Chart ‐ Problem Description 12‐Jan ‐ 12‐Apr May‐12

June‐12 Current Period

0.0

0.5

1.0

1.5

2.0

2.5

r y 3 4 5 6 7 8 9 0.0%

0.5%

1.0%

1.5%

Data for last 4 periods Current Period Data

pr d d

12-J

an -

12-A

pr

12-M

ay

12-J

une

Cur

rent

Per

iod

7/1

7/2

7/3

7/4

7/5

7/6

7/7

7/8

7/9

7/10

7/11

7/12

7/13

7/14

7/15

7/16

7/17

7/18

7/19

7/20

7/21

7/22

7/23

7/24

7/25

7/26

7/27

7/28

7/29

7/30

7/31 Rust /

StainedRoughness Long gate Pit Stressmarks Scratch Missing

ChromeFlash Blush Discolored

XXXXXXXXXXXPart Description

Problem Description

12-J

an -

12-A

p

12-M

ay

12-J

une

Cur

rent

Per

iod

Tota

l

4 Pe

riod

PPH

7/1

7/2

7/3

7/4

7/5

7/6

7/7

7/8

7/9

7/10

7/11

7/12

7/13

7/14

7/15

7/16

7/17

7/18

7/19

7/20

7/21

7/22

7/23

7/24

7/25

7/26

7/27

7/28

7/29

7/30

7/31

Tota

l

PPH

for P

erio

d

Flash 0 0 0 0 0 0.0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0

Long gate 24 14 29 26 93 0.1 6 7 2 3 1 0 0 3 0 0 0 0 0 1 0 0 0 0 3 0 0 26 0.2

Scratch 0 0 0 2 2 0.0 0 0 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 0.0

Pit 73 30 17 24 144 0.2 2 7 0 0 3 0 0 2 3 0 0 0 0 2 2 1 0 0 2 0 0 24 0.1

Discolored 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 00 0 0 0 0 0.0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0

Blush 26 0 0 0 26 0.0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0

Roughness 400 160 166 101 827 1.1 0 4 14 15 4 3 6 4 5 1 8 6 6 7 2 5 5 1 0 3 2 101 0.6

Rust / Stained 300 221 327 235 1,083 1.4 25 31 18 19 21 2 8 19 21 3 3 3 2 14 5 7 3 2 22 2 5 235 1.5

Stressmarks 134 24 24 20 202 0.3 0 0 0 1 3 0 2 1 0 0 0 0 1 1 0 1 3 0 6 0 1 20 0.1

Missing Chrome 14 0 0 0 14 0.0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0Inspection Days 77 21 21 21 140

Total Rejects 971 449 563 408 2,391 3.1 33 49 34 40 32 5 16 29 29 4 11 9 9 25 9 14 11 3 33 5 8 408 2.5

Total Reviewed 34,625 12,359 13,533 16,120 76,637 1,080 1,348 1,076 1,392 712 440 704 892 896 220 528 616 704 800 624 712 532 528 1,260 528 528 16,120

PPH 2.8 3.6 4.2 2.5 #N/A 3.1 3.6 #N/A 3.2 2.9 #N/A #N/A 4.5 1.1 2.3 3.3 3.2 #N/A #N/A 1.8 2.1 1.5 1.3 3.1 #N/A #N/A 1.4 2.0 2.1 0.6 2.6 #N/A #N/A 0.9 1.5

Confidential 6

PPH 2.8 3.6 4.2 2.5 #N/A 3.1 3.6 #N/A 3.2 2.9 #N/A #N/A 4.5 1.1 2.3 3.3 3.2 #N/A #N/A 1.8 2.1 1.5 1.3 3.1 #N/A #N/A 1.4 2.0 2.1 0.6 2.6 #N/A #N/A 0.9 1.5

Focused Improvement Team

Ensure Long Term Systemic Performance Improvement

Implementation of PDC Shop Floor Excellence Auditp e e tat o o C S op oo ce e ce ud t

Shop Floor Excellence Audit Process for

Benchmarking and remediating a manufacturer’s internal manufacturing processes across 11 elements

1. Metrics2. Standardized Work3 Material

7. Quality in Station8. 5-S9 Management3. Material

4. Quality System5. Environment6 PFMEA

9. Management10.Rework / Sort11.Machine / Tooling

Confidential 7

6. PFMEA

Supplie

r D - S

FE

Sum

mary

Prin

ted 1

/10/2

013

Su

pp

lier:

Du

ns C

od

e:

Da

te:

Lo

ca

tion

:

M. J

aco

ke

s

Pa

rt De

sc.

Pla

nt M

gr.

Metric

s: In

form

atio

n D

isp

layed(M

eth

od)

Quality

in S

tatio

n(M

eth

od)

3D

ow

ntim

e0

Voic

e o

f the C

usto

mer

4V

isual o

r audio

sig

nal id

entify

ing p

roble

m fo

und b

y o

pera

tor

3S

cra

p0

Rew

ork

4A

ndon is

cle

ar to

every

body, e

.g. lo

catio

n a

nd n

atu

re o

f pro

ble

m

6T

ota

lP

ote

ntia

l 16

38%

4A

ndon fu

nctio

ns w

ithout tro

uble

Sta

nd

ard

ized

Wo

rk a

t each

op

era

tion

(Meth

od

)4

Andon is

tracked a

nd p

roble

m s

olv

ing is

in p

lace

0E

ach e

lem

ent o

f work

identifie

d w

ith tim

e

16

To

tal

Po

ten

tial

16

100%

0T

ota

l cycle

for e

ach o

pera

tion id

entifie

dW

ork

pla

ce o

rganiz

atio

n: 5

S(M

eth

od)

0D

iagra

m s

how

ing e

lem

ents

and o

rder

4O

nly

thin

gs th

at a

re p

art o

f the p

rocess e

xist in

work

are

a(S

ort)

0S

igned o

ff sta

ndard

ized w

ork

audit s

heets

0T

hin

gs a

re s

et in

ord

er w

ith v

isual c

ontro

ls p

resent(S

et in

Ord

er)

4B

ill of M

ate

rial

4T

he a

rea is

cle

an(S

hin

e)

0R

equire

d p

roductio

n &

safe

ty e

quip

ment g

raphic

0H

ousekeepin

g is

identifie

d in

work

sta

ndard

s(S

tandard

ize)

na

Key P

roduct C

hara

cte

ristic

s id

entifie

d0

Managem

ent a

udits

housekeepin

g a

nd w

ork

pla

ce o

rganiz

atio

n(S

usta

in)

3O

pera

tor C

ertific

atio

n p

oste

d/d

ocum

ente

d

8T

ota

lP

ote

ntia

l 20

40%

0P

roble

m d

ocum

enta

tion w

ork

sheet e

.g. 5

phase, 8

DM

anag

em

ent(M

eth

od)

4B

oundary

Sam

ple

s a

re p

resent

2S

ends m

essages o

f contin

uous im

pro

vem

ent

na

Each o

pera

tion v

erifie

s p

revio

us o

pera

tion's

work

4A

re fre

quently

on th

e s

hop flo

or

11

To

tal

Po

ten

tial

36

31%

4D

aily

perfo

rmance re

vie

ws w

ith g

oal c

learly

com

munic

ate

d

Mate

rial(M

ate

rial)

4Late

st Q

S/T

S C

ertific

ate

sent to

Coord

inato

r

4P

arts

sto

rag

e a

rea o

f inve

nto

ry iden

tified

, e.g

. sh

elve

s la

bele

d14

To

tal

Po

ten

tial

16

88%

4F

irst In

/Firs

t Out is

main

tain

ed a

t opera

tion

Rew

ork

/ Sort(M

eth

od)

4M

in/M

ax q

uantitie

s a

re d

ispla

yed a

t sto

rage lo

catio

ns

4R

ew

ork

mate

rials

are

mark

ed a

nd s

tore

d in

a c

learly

defin

ed a

rea

na

Opera

tor is

not w

ork

ing a

head

0R

ule

s a

nd p

rocedure

s a

re c

lear w

hen re

work

is n

eeded

4W

ork

in p

rocess is

min

imiz

ed (o

ne-p

iece flo

w)

4R

ew

ork

mate

rial is

reverifie

d

16

To

tal

Po

ten

tial

16

100%

4C

ounte

rmeasure

s to

pro

ble

ms a

re d

one e

ffectiv

ely

Quality

Syste

m (M

eth

od)

12

To

tal

Po

ten

tial

16

75%

4D

ispla

y o

f erro

r pro

ofin

g e

xists

Machin

e/T

oolin

g(M

achin

e)

4P

rocedure

s a

re c

lear to

check a

nd u

se e

rror p

roofin

g3

Main

tenance c

hecklis

t exis

ts m

achin

ery

and to

olin

g

4A

part is

verifie

d w

ithin

specific

atio

ns

3M

achin

e tro

uble

log e

xists

and is

poste

d a

t the m

achin

e

4C

ontro

l Pla

n is

bein

g fo

llow

ed

4M

achin

es ru

nnin

g w

ithout tro

uble

4K

ey P

roduct C

hara

cte

ristic

data

is o

n th

e flo

or

4M

achin

e C

ontro

l chara

cte

ristic

s a

re tra

cked a

t opera

tion

2M

easure

ment s

yste

ms a

re c

alib

rate

d w

ith o

pera

tor in

stru

ctio

14

To

tal

Po

ten

tial

16

88%

22

To

tal

Po

ten

tial

24

92%

%P

tsS

tatu

s

Enviro

nm

ent(E

nviro

nm

ent)

38%

6D

isp

layed

Metric

sR

ED

4M

eetin

g a

reas a

re p

rovid

ed

31%

11

Sta

nd

ard

ized

Wo

rk a

t each

op

era

tion

RE

D

4K

ey in

form

atio

n is

sh

are

d b

y m

an

ag

em

en

t e.g

. Bu

sin

ess p

erfo

rma

nce

an

100%

16

Mate

rial

GR

EE

N

2T

eam

Meetin

gs a

re c

onducte

d a

t least m

onth

ly92%

22

Qu

ality

Syste

mG

RE

EN

10

To

tal

Po

ten

tial

12

83%

83%

10

En

viro

nm

en

tG

RE

EN

PF

ME

A100%

16

Qu

ality

in S

tatio

n(M

eth

od

)G

RE

EN

3A

re c

ross fu

nctio

nal te

am

s tra

ined

40%

8W

ork

pla

ce O

rgan

izatio

nR

ED

4P

FM

EA

up

date

d w

ith a

ll non

con

form

ity data

(living

docu

men

t)88%

14

Man

ag

em

en

tG

RE

EN

0RPN

s match

Pro

cess F

low

Dia

gra

m a

nd in

clude K

PC/K

CCs

75%

12

Rew

ork

/ So

rtY

EL

LO

W

0R

PN

reductio

n p

rocess d

evelo

ped, a

nd fo

llow

ed b

y m

gt.

88%

14

Mach

ine

GR

EE

N

na

Tie

red S

upplie

r’s P

FM

EA

SF

E c

heck lis

t availa

ble

44%

7P

FM

EA

RE

D

7T

ota

lP

ote

ntia

l 16

44%

69%

129

Ov

era

ll

YE

LL

OW

Sum

mary

Scorin

g:

Pts

Ele

men

t Sco

ring

Gre

en

80%

0E

lem

en

t is n

ot in

pla

ce a

nd

no

evid

en

ce o

f pla

ns to

imp

lem

en

tY

ello

w60-7

9%

1E

lem

en

t is n

ot in

pla

ce b

ut a

pla

n to

imp

lem

en

t is d

ocu

men

ted

Red

<59%

2E

lem

en

t is in

pla

ce b

ut it is

no

t bein

g fo

llow

ed

3E

lem

en

t in p

lace b

ut n

ot fo

llow

ed

at e

ach

job

or a

ll the tim

e

4E

lem

en

t is in

pla

ce a

nd

it is b

ein

g fo

llow

ed

Shop

Flo

or E

xcelle

nce R

evie

w

Su

mm

ary

XX

XX

XX

XX

XX

Su

pp

lier D

Pla

stic

sD

. Kitc

he

n

SQ

E/T

ea

m A

ud

itors

:K

ea

rne

rsville

NC

1/1

/20

13

Rev 7

4/1

1/0

1

Shop Floor Excellence

5194

Supplier A

Shop Floor Excellence Audit Summary

54

66

69

96

92

Supplier B

Supplier C

69

68

71

100

99

88

Supplier D

Supplier E

Supplier F

Initial

Current

63

63

88

92

81

pp

Supplier G

Supplier H

78

86

100

95

Supplier I

Supplier J


0 10 20 30 40 50 60 70 80 90 100

Supplier Internal PPM

24

2366Supplier A

Supplier Internal PPM Sept. 2012 to Dec. 2012

38031

768

2271

76062

1535

4542

23644

0

Supplier B

Supplier C

Supplier D

260

1943

4542

520

3886

548

350

0

Supplier D

Supplier E

Supplier F

6195

45550

1167

12389

91100

2333

3200

49737

Supplier G

Supplier H

Supplier I

1684

2333

3368

8773

1157

0 10000 20000 30000 40000 50000 60000 70000 80000 90000 100000

Supplier I

Supplier J

50% Goal Initial PPM Current PPM


50% Goal Initial PPM Current PPM

Supplier Summaries

14000

Supplier D PPM

8 99810000

12000

8,998

7,326

6,318

6000

8000

PPM

4,5425,026

4000

6000

548

0

2000

JULY AUG SEPT OCT NOV DEC


JULY AUG SEPT OCT NOV DEC

Focused Improvement Team

Enablers:

On the floor interaction with the plant personnelO t e oo te act o t t e p a t pe so e

Active, not passive, participation

Sense of urgency yet not overbearingSense of urgency yet not overbearing

Transfer knowledge for long term improvement

Communicate to all levels for effective countermeasures &Communicate to all levels for effective countermeasures & control

Lead by example

Confidential 12

The PDC Advantage

Short duration program – 90 days

Immediate quantifiable quality improvement (50% on average within 60 to 90 days)

Addresses systemic / Chronic manufacturing / Quality issues

Confidential 13