DDEES,LLC & Full circle quality

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DDEES,LLC & Full circle quality. Improve Your Company & Your Company ’ s “ Problem Supplier(s) ”. Don Dees, President Full Circle Quality, LLC 4301 66 th Avenue NE Norman, OK 73026 Cell (616) 902-2894 ddeeshome@aol.com www:fullcirclequality.com www:ddeesllc.com. - PowerPoint PPT Presentation

Text of DDEES,LLC & Full circle quality

  • * Improve Your Company & Your Companys Problem Supplier(s)

    Don Dees, PresidentFull Circle Quality, LLC4301 66th Avenue NENorman, OK 73026Cell (616) 902-2894ddeeshome@aol.comwww:fullcirclequality.comwww:ddeesllc.com

  • *History:2009, DDEES,LLC & FCQ were established in Norman, Oklahoma to provide manufacturing support services to manufacturing facilities in China and in North America.

    FCQ has provided Consulting Services, Technical Experts, & Training in areas such as:Coaching to implement & sustain Quality SystemsLEAN Manufacturing Processes Problem Solving General Management/Leadership ProcessesStamping, Welding, Plastic Injection Molding, Painting, Assembly, & OthersMaterial Handling, Logistics, & Sourcing Sales/Marketing/Service/Business DevelopmentMergers & Acquisitions & Due Diligence

    FCQ has found many Permanent or Temporary Technical or Manufacturing Experts for many companies in Asia, China, & in North America.

    Results! FCQ clients are obtaining results of between 17 and 35 ROI. In other words, for every dollar spent implementing LEAN, they are saving 17 to 35 times this amount of money the next year.Present:2013, FCQ continues to provide project support and services to many Companies in numerous industries in Asia, China, and North America.

  • FCQ Core Services

  • *Inspection & Containment ServicesVisual Inspection (Vehicles & Parts)Defect DetectionDimensional ChecksLabel VerificationSequencing VerificationRe-Work to SpecificationFunctional TestingSoftware Re-flashingYard Sorts (Finished Vehicle)Engineered Containment TM

    Third Party Metrology (CMM Measuring, Scanning, & Problem Solving)Portable Dimension Analysis (FARO hard probe & laser scanning)Reverse Engineering (Converting laser scan data to IGES & CATIA) Headhunter Help in finding you Permanent or Temporary Technical or Manufacturing Experts for your Company

    Consulting ServicesProblem SolvingCoach to implement & sustain Quality SystemsLEAN Manufacturing ProcessesProcess & Through-Put ImprovementsGeneral Management/Leadership ProcessesNew Product Launch Support

    Technical ExpertsStamping & WeldingPaintingAssemblyPlastics Injection MoldingRoboticsQualityMaterial Handling, Sourcing, LogisticsProcess EngineeringManufacturing & Plant ManagementSales/Marketing/Service/Business DevelopmentMergers & Acquisitions & Due DiligenceFinance/AccountingOther Technical Areas

  • *Engineering Services ProductsDurability Drive Testing of New Model VehiclesGP12 Pre-Launch ContainmentAdvanced Quality Planning/PPAP & Documentation Support of New PartsReceiving Inspection PlansPortable Dimensional Analysis (CMM)Reverse Engineering (Laser Scanning)New Product Launch SupportOthers

    Engineering Services ProcessesISO/TS CertificationProcess AuditingAdvanced Quality Planning/PPAP & Documentation Support New ProcessesQuality System AuditingAuditing & Verification of Processes & Corrective ActionsOthers

    Engineering Services Provide Team MembersSupply Chain & Warehouse Management of Pilot & Proto-Type PartsSupply Chain Management (Cross Docks, Warehouses, Kitting, & In-Line Sequencing of Parts, Finished Goods, etc.)Sub-Assembly of Simple AssembliesOn-Site Technical LiaisonsContainment AvoidanceSupplier Launch SupportSupplier Crisis SupportContract Quality EngineeringTechnical RepresentationThird Party Engineering & Containment

    TrainingProblem SolvingLEAN ManufacturingQuality System & Quality EngineeringTechnical Training (example Paint Process Engineering)

  • *Successfully introduced and implemented comprehensive LEAN Manufacturing Processes across 3 Portfolio Companies (at the same time) specializing in stamping and complex welding with annual revenue of $400m. These LEAN Processes included; Toyota Production System, Standardized Operations, SQDCMRS (Safety, Quality, Delivery/Productivity, Cost, People, Revenue, and Speed) KPi Performance Metrics, Throughput Management Process, Quality Gate Launch Process for new parts, Detailed Plant Floor Layered Process Audits, Six Sigma Black Belt Process, Stamping and Welding Standards, Daily Financial Total Cost Management Tracking, and Supply Chain Development. In the first six (6) months, the annual ongoing cost savings were over $17M per year and with an additional $20M of cash generated from reducing the inventory levels. Specific Achievements include:Reduced the Break Even Point by 33%.Safety - Reduced OSHA Recordables by 150%. Quality - Improvements saving $5M/year (Improved PPMs by 700% resulting in reduced internal & external sorting/inspection - $3.5M savings, decreased destruct tests - $1.5M savings). ISO/TS Certifications and Audits to 100% across company.Delivery - Supply chain cost reductions of $7M/year (China sourcing, Single source scrap control, and Freight Utilization Improvements). Productivity - Increased throughput by 15% per plant. Realized 25% headcount reduction. - $6M/year savings. Cash - Instituted Inventory reduction process generating $20M Cash (70% reduction - $30M to $10M) Performance Results:Safety Frequency Rate now at a World Class Level of 1.1.Quality PPM rates today at a World Class 4 ppm.On time delivery now at 100%.

    Actual Results from a LEAN Manufacturing Project in USA (Results after 6 Months)

  • *Actual Results from a LEAN Manufacturing Project in CHINA (Results after 6 Months)SafetyHave now gone over one year without any Safety Accidents in the Plant(s)

    Quality (Customer)Went from 1,000 PPMs to Zero PPMs & Zero QIRs for over one yearWent for Last Place (#16 in 4/2011) to First Place (#1 in 4/2012) in Suzukis Ranking of Stamping & Welding Suppliers in ChinaWent from being on the NOT allowed to Bid on New Work List (because of past performance and lack of quality processes) in Q3 of 2011 to Preferred Supplier List in April 2012 with Suzuki, Chang An, JCI, LEAR and other Customers.

    Quality (Internal)Went from Checking & Repairing 300% of the parts to 0% Checking & Repairing of the parts on eight (8) totally different Final Assembly Part Numbers (IP Cross Car Beam, Seats, Steering Column Support Bracket, Radiator Assembly, Engine Tubes, Others)

    Delivery100% On Time Delivery for over one yearEliminated the need for a Third Party Warehouse for Finished GoodsEliminated 33% of the Inventory ($4M USD)

    CostROI of 17 Times what was spent to Implement LEAN ManufacturingSaved Manpower, Space, Scrap, Inventory, Needs for new Capital Equipment, Others

  • *

    North American Market AnalysisThe North American Automotive OEM Production Forecast is seen as to continue to grow at about 10% per year for the next five (5) years, getting back to the 16M level by 2016cy.The larger impending problem is that this additional NA volume will cause the Problem Suppliers to have even more quality spills. WHY? Many of these Problem Supplier Companies do NOT have: Strong Leadership, Experienced Workforce, Mature Quality Processes, Mature Quality Systems, Ability to Problem Solve, Training, LEAN Manufacturing Systems, etc.; consequently; will have many more Quality Spills that will continue to have negative effects on Your Production in North America.Your future outlook is to continue with more Third Party Containment ActivitiesStatement of the Current Situation/ProblemYour Company receives many parts, components, and sub-assemblies from suppliers located in North America. Some of these suppliers struggle with the quality of their products delivered directly to You or to Your Tier 1 Suppliers.Suppliers that deliver parts that do not meet Your Quality Standard are put on Third Party Containment (100% inspection of each part until the parts are proven to be OK by achieving X days without a reoccurrence of the same quality issue), at the Suppliers expense.Some of these Suppliers have been on and off of Third Party Containment over and over and over for many years.Third Party Containment Protects the Customer, but is also very disruptive to You and Your Tier 1 Suppliers. It causes many issues such as the need for floor space in your plant, extra warehouse space, extra inventory, FiFO issues, inefficiencies in indirect labor functions, other cost issues.For some Problem Suppliers, Third Party Containment is a Band Aid, and some of these Problem Suppliers have not been able to find and correct the real root cause(s) for shipping parts that do not meet Your Quality Standards; and therefore can not eliminate the very frequent requirement for Third Party Containment.

  • *Suggested Pro-Active Strategy

    A. Assign Supplier Plants to us to manage using your Product Development Process:Advanced Quality Engineering ActivitiesAdvanced Quality Planning/PPAP & Documentation Support of New PartsAdvanced Quality Planning/PPAP & Documentation Support New ProcessesRun at Rate Studies and VerificationPilot & Proto-Type BuildsGP12 Pre-Launch ContainmentReceiving Inspection PlansPortable Dimensional Analysis (CMM Laser Scanner) of PartsLaunch Support of new productsOthers

    B. Let us help you launch new Products with Good Parts from your Suppliers

  • *Suggested Re-Active Strategy A. Phase #1 of the Our Process usually takes six (6) months and includes:Step #1 Understand the current situation by auditing the Suppliers Quality Process, Quality System, LEAN Manufacturing Capability, and ability to Problem Solve.Step #2 Develop a Kaizen Team of (4) full time people to work for Our Advisor; including a person from Shop Floor Quality, Engineering, Maintenance/Tooling, Office Quality TS/ISO Person. Step #3 ContainmentStep #4 Improve FTQ to eliminate ContainmentStep #5 Work with and Teach this Kaizen Team the following:Quickly teach the Supplier how to delive