Introduction of Magna Steyr SCM

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Supply Chain Management

Procurement

Supplier quality

Logistics

Global Supply Chain Management

Cost-effective along the whole supplychain• Total Cost of Ownership – approach (TCO)• Integration of suppliers through Supplier Collaboration approach• Supplier Relationship Management• Synergies by MAGNA-internal co-operations (MLE/MEPI)

Sourcing within a global procurement network• Purchase of systems, modules, parts and services• Globale sourcing activities and supplier management• From concept evaluation to serial production

Responsibility for the quality of sub-supplier parts fromthe first idea to spare-parts• Support in product- and process development• Approval of processes, PPAP and claim-management

Use of global networks, but acting local• Standardised delivery concepts• Make-or-Buy decisions of Logistics Services• Dynamic transportation management

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But what talents will be neededin the future??

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….. Then better be prepared for future launches in Brasil and Vietnam – probably at the same time

The Global One?

The process improver ?

…… then better catch a LEAN and AGILE expert soon – preferrable from Japan

The Innovative One ?

….. then better think about new business-models – which contain high risks and lowopportunities

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….. Then better expand also your VISA for theBRIC countries - and some other countries more

The Greene One ?

The Expanding One ?

….. Then better be prepared for questions from your customershow YOU will reduce CO2 – pure truck utilization will not besignificant enough

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….. then better move to the „Cloud“ – some people arealready on the way back

….. You will be busy – not only in Europe

……. Then stay with Automotive – you‘ll seewhy … on the next page

The Data Freak?

The Improver in Infrastructure?

The Optimistic?

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Quelle: LogKompass 1 / 2.2013

Good outlooks forAutoLogistics

Supplier Quality Assurance & Development, SQA & D

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Content

•SQA within Purchasing Process Map

•SQA main responsibilities & tasks

•Organizational structure

•Basic SQA process

•Supporting Tools QPF , PPF

•QPF functions

•PPF functions

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SQA within the Purchasing Process Map

Process Level 2

Procurement Process PZB – 13.00.00

Process Level 1

Forward SourcingPZB – 13.01.00

Global SourcingPZB – 13.02.00

Supplier Quality AssurancePZB – 13.03.00

Escalation ManagementPZB – 13.04.00

Tooling/Equipment/IPMPZB – 13.05.00

KB FB PSLTPTOSOP

E ZV+3-27 -21 -15 -8 -2-33 0

Decision torealize a project

DeterminingThe targets

Confirmation of concept

Confirmationof function

ProductionTryout

PerformanceTest

Process safety

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SQA within the Purchasing Process Map

ConceptSource evaluation

ProductDevelopment (assuming SKD CKD)

Process development

Product and process sign off(PSO, PPAP or PPF)

Change management

Production

Feedback, rating, corrective actions, continuous improvement process, supplier development,APQP

Time scale depends on customer needs – Based on Milestones –

Supplier Quality Assurance (SQA)

E KB PTO LT SOPFB PS

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SQA Process Map

APQP (PPF) PhaseNomination Phase Volume Production

potential suppliers (strategic purchasing)terms and conditions, certificates..

source evaluationestimate supplier development cost

initial part risk assessmenthigh, medium or low

decide on SQA coveragefull APQP and/or PSO and/or PPAP

1st SE-Team meeting with supplierdesign to cost, manufacturing, testing, …

supplier feasibility commitmentassure requirements are understood

supplier tracking (QPF)first tasks from source evaluation

long term process capabilitythree months after SOP

SE-Team meetingsfull product specification, special characteristics

milestone tracking, project reviews (QPF)review progress at supplier, witness sub-supplier mgmt.

No

min

atio

n

SO

P

Process Sign Off (PSO) witnessed by SQA for high and medium risk parts

Production Part Approval (PPAP)testing completed with parts from PSO

prototype sample approvalcare for interim approval authorization (IAA) if required

performance monitoringto rate, inform and develop suppliers

annual requalificationas required by control plan and DVP&R

non conformance process (Plant SQA) 7-step, 8D

level 2 – new business holdSQA recommendation

escalation process3 escalation levels

level 1 - supplier quality meetingintensified supplier development activities

level 3 – resourcing decisionSQA recommendation

sourcing committeefinal supplier decision, SQA right to object

develop quote packagedefine the SQA section for the SE-Team

participate in concept definitioncontribute lessons learned to the SE-Team

start

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PV PPS TA CC FC PTO PP LS SOP PS EOP EOA

Innovation Strategy Feasibility Concept Development Series Preparation RampUp Series Ramp Down

Concept Development ProductionSerial Development

Source Evaluation

Tool Tracking

Cu

sto

me

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ati

sfa

cti

on

Cu

sto

me

r re

qu

ire

me

nts

Milestone monitoring

APQP -preventive supplier quality management- MSDS

Serial supplier quality management- MAFACT

Cubing & Matching

Supplier Quality Assurance along the Product Life Cycle

SQA qualification program – MEPI SQA curriculum - Six Sigma Green and Black Belt

Target Monitoring

PPAP& PSO

Complaint management

Requalification & Reviews

Change Management

World Class Tools, Systems and Trainings have been developed and will be rolled out

Supplier Quality ManagementMilestone-Tracking – Checklist – Issues – Tasks – PPAP - Claims

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SQA Core Responsibilities

• Responsibility for quality of purchased parts From the very first idea Up to the last spare part

• Member of the Simultaneous Engineering Team

• “Owner” of supplier’s manufacturing locations

• Product and process approval

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Tasks for SQA in the Concept Phase

• Support the sourcing decisions

• Support a complete description of requirements in the product spec.

• Ensure the full utilization of the supplier’s experience in the SE-Team

• Initiate corrective actions in the team in case of identified risks or deviations

From the start of a project until the product is defined via approved drawings and performance standards, the essential interface between MAGNA STEYR Fahrzeugtechnik and the supplier

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Tasks for SQA in the Developement Phase

• Support and monitor suppliers

• Organize regular and structured team meetings to identify potential deviations and initiate preventive corrective actions

• Confirm the fulfillment of all requirements via• Process sign off (PSO)• Production Part Approval Process (PPAP)

• Initiate corrective actions at the supplier and/or change the requirements in the specification

Note: Valid for new product as well as for product changes

From the approval of the drawings and performance standards until the last (spare) part is produced at the supplier

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Organizational Structure

•SQA specialist

- For new projects

- Technology expert

- Support to internal SQA

• Internal SQA

- Serial vehicle assembly process

- Non conformance process

- Rapid reaction force

Technologies

Projects

Supplier Quality Specialists

Internal Supplier Quality

Exterior, Interior, Powertrain, Elektric/Elektronics, Chassis

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Basic SQA Process

Risk Assessment

PPAP

pla

na

ct

mo

nit

or

high medium low

new or modified part

team meetingsPSOPPAP

PSOPPAP

co

rrect

po

ten

tial is

su

es

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Risk Assessment Rating

Risk assessment Rating depending on

- Supplier rating and/or Source Evaluation results

- Complexity of part/product

- Complexity of module

- Time line

Rating

RedEither critical supplier, complex part or module or critical timing

Yellow

Medium rated supplier, complexity of part or module medium and no critical timing

GreenNo critical supplier and simple part or module and no critical timing

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Supporting Tools

•QPF – Quality PlatformInternet based software for preventive quality assurance (APQP) with flexible structures to adapt to customer requirements and customer systems (TS 16949, VDA, QS9000, ...).Includes online 7-Step reporting for the tracking of complaint reports with the supplier.

• PPFrei a Modul of QPF – internet based Process and Product Approval SystemDatabase to plan and document the product- and process approvals with programmable interface to customer systems (exchange of part approval level from/to the customer)

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Quality Platform Features

• Internet based, easy access for all team members•Tracking of the complete APQP-content, tracking of milestone-requirements

•Standard format for checklists (for tool tracking, feasibility commitment, …)

•Attachments are easy to create•Open issue tracking (can be used for teleconferencing)•Real-time updates by every participant possible•When changing an item, history will be saved•Automatic e-mail warning when due date has passed•Online 7-step corrective action report•… Real-time supplier rating under construction

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The „Quality Platform“ (QPF)

• Participation in the SE-team to define a clear interface to the supplier

• Monitoring of the supplier’s project management with the main emphasis on „achievement of all quality targets with capable processes“

• Confirmation that the defined quality targets are met by conducting Process Sign Off’s and PPAP’s

• Monitoring of the supplier’s performance and implementation of corrective actions if required

Su

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QPF – Startpage

HTTPS://QPF.MAGNASTEYR.COM

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Milestone Monitoring on QPF

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A Vehicle Project Milestone Overview

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QPF - Task Tracking

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Typical Milestone Status Report from QPF

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20

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120

AB1

01.04.02

AB2

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AB3

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BE1

01.09.02

BE3

01.12.02

RE1

01.04.03

RE2

01.04.03

RE3

01.06.03

RE4

01.07.03

SE1

01.12.03

QPF-Status

Te

ileg

rup

pe

n

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Typical “Process Sign Off” Report

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Jän. Feb. Mär. Apr. Mai Jun. Jul. Aug. Sep. Okt. Nov. Dez.

PTO VS AP SE

Target Gelb

Target Rot

Grün, PZS i.O.

Gelb, PZS durchgef.,Maßnamen def.

Rot, WiederholungPZS

Offene PZS

wiederh. PZS

Plan

Plan; Stand 4.2.03

ZK GrünSOP

Teile

gru

pp

en

mit

MS

F-P

S

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QPF – Issues – 7step – Edit I

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QPF – Issues – 7step – Edit II

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QPF – Complaints – Edit I

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QPF – Complaints – Edit II

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PPF Features

• Database for PPAP

• Planning tool for product and process approvals

• Documentation tool for product and process approvals

• Programmable interface to customer systems

• Exchange of part approval level from/to customer

• Personal “mailbox” for every user

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PPF – Startpage

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PPAP in PPF

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Typical PPAP Report

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Jän.03 Feb.03 Mär.03 Apr.03 Mai.03 Jun.03 Jul.03 Aug.03 Sep.03 Okt.03 Nov.03 Dez.03

PTO VS AP SE

Zielwert Gelb

Zielwert Rot

Status 1 und 2 (frei; frei

mit Auflagen)

Status 3 (abgelehnt, mit

Maßnahmen verbaubar)

Status 4 (abgelehnt)

offen

Durch Änderungen neu

zu terminieren

Vorschau EM <=2; Stand

10.4.03

Vorschau EM <= 2; aktuell

Ziel

Teil

ean

zah

l

SOP