Case Study Georg Fischer Automotive

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1 Case Study Georg Fischer Automotive Standardisation of Quality Management Processes

2 Standardisation of Quality Management Processes Global use of CAQ=QSYS Professional and Roll-out in China at Georg Fischer Automotive Georg Fischer Automotive is part of the Georg Fischer AG industrial group, which operates internationally from its headquarters in the Swiss town of Schaffhausen. With over 50 production sites and 130 companies worldwide, Georg Fischer AG employs a workforce of approximately 14,000. The company comprises the three core divisions GF Piping Systems, GF Machining Solutions and GF Automotive. Schaffhausen-based GF Automotive develops and manufactures cast iron, aluminium and magnesium parts for use in the automotive industry and the automotive supplier sector. Approximately 5,000 employees manufacture an annual volume of over 100 million components at the company's 9 production sites in Germany, Austria and China. The Automotive Division's research and development activities are carried out in Switzerland and China. "Standardisation of Quality Management Processes" The initial aim of the "Introduction of a CAQ System" project foresaw a standardisation of production-related systems. The GF Automotive division had grown considerably in recent years. An analysis of each of the plants' processes and systems revealed that the system environment was indeed heterogeneous, and data consistency difficult to achieve. It was in this context that the project of introducing a cross-process CAQ system arose, a project aimed at standardising the company's QM processes and improving the degree of fulfilment of both customer requirements and those required for compliance with standards. In the throws of reorganising and coordinating these QM processes with the functions of the production, sales/development and purchasing processes, Georg Fischer also recognised the opportunity to develop effective interfaces to the respective areas. A team of 6 kicked off the realisation phase by defining the individual subprocesses, before drawing up a functional specification document. It became clear the implementation of a software solution for comprehensive quality management was necessary. The Selection Process The work carried out by the cross-project QM team showed that the first step would need to be the development of standardised processes, followed by the selection of a software capable of mapping these processes. The following aspects also needed to be considered: The system would need to be in long-term use The solution would also need to be flexible and scalable Automation only where appropriate The processes to be mapped should be documented in the system and comprehensible to the user Language options should enable use of the system on an international basis No mixing of CAQ functionalities with those of the SAP ERP/PPC system No transfer of old data

3 As a result, a number of action alternatives for the future process and system landscape were developed, analysed and evaluated. Following a functional comparison, the designated team announced its recommendation at the end of 2006: Use of the IBS software. Aside from the functional reasons, the chosen solution was also deemed low-risk, since CAQ=QSYS Professional is a fullydeveloped, international solution, widely used on the market, requiring only modification and offering not only sustainability but also investment security. The following composition best fulfilled the requirements of GF Automotive: Realisation At the start of 2007 the Georg Fischer and IBS project teams worked in collaboration to compile a comprehensive technical specification document, prior to the pilot project being launched at two of the company's sites that same year. The fact that all of the modules were implemented in full in both pilot plants, followed by a roll-out in a total of 7 of the company's European plants, made the project rather unique. A standardised, specific approach / template was applied to each plant. This approach / template was then used for roll-out in all other plants. The use of a IBS AG's professional CAQ software The use of SAP as a PPC/ERP system, including various add-ons.

4 The Implementation Phases at each Plant Phase 1: The first phase of the roll-out comprises the template for the Concern and Complaint Management, Gage Management System and Audit Management modules. These modules were chosen for the first stage of the implementation as they are not interdependent and run relatively autonomously. They might also be considered "simple" modules in terms of operation. This gives the user peace of mind, increasing the degree of system acceptance. Concern and Complaint Management In terms of concern and complaint management, GF Automotive prefers a lean solution that offers comprehensive coverage to meet all needs. It is required for processing customer, supplier and, in part, also internal complaints. The 8D Report, which is absolutely imperative for automotive suppliers, is automatically created by the system in accordance with the captured data. Georg Fischer does not require the automatic and systematic feedback of results to be sent to the Advanced Product Quality Planning feature of CAQ=QSYS Professional. There are, however, future considerations for the acquisition and evaluation of data, results and actions relating to occupational safety and environmental protection inspections to be carried out within the Concern and Complaint Management module, and the more extensive use of free actions. Gage Management At Georg Fischer the Gage Management module of QSYS is used as an electronic index card with inspection cycle monitoring. Calibration and capability checks are carried out in individual cases. As an exception, at certain sites, data exchange with the calibration laboratory is effected on a bidirectional basis, including status feedback following successful calibration. This means that the data relating to the gage to be calibrated can be automatically transferred to the external calibration laboratory or internal calibration department and the results returned to the system following calibration. The calibration management solution CALVIN is used at one GF Automotive site. The database currently contains 18,000 gages. Audit Management The Audit Management module is used comprehensively and extensively in its standard form and should be kept as simple as possible. The module manages and captures internal audits in accordance with VDA 6.3, external and supplier audits, cargo securing, occupational safety audits and environmental protection audits. The CAQ=QSYS QAM (Quality Action Management module) is of particular importance to GF Automotive. It is used for action processing and monitoring of the respective status. It enables the visualisation of all defined actions, including user-related actions, also on a cross-departmental basis. Furthermore, the escalation mechanisms for the various action types are configurable. These determine the course of action in case of deadlines exceedance. IBS AG's integrated quality management solution (CAQ software) supports all phases of the product life cycle

5 Phase 2: The template for the second phase of the roll-out comprises the APQP (Advanced Product Quality Planning) module, including the production control plan, the process flowchart and FMEA (Failure Mode and Effects Analysis). APQP Project Management APQP (Advanced Product Quality Planning) plays an important role at GF Automotive. All new projects are set up in the APQP module. This enables constant monitoring of the project status, including the process and control plans The implementation of internal project standards requires the use of standardised checklists, which are identical for all projects in all plants. Quality gates are defined for the measurement of project milestones. Project reporting is also installed. Advanced Product Quality Planning FMEA GF Automotive works with product and process FMEAs, and, in the field of research and development, also with DFMEAs (Design FMEA). This differentiation enables the execution of risk analyses at both individual part and process levels. An FMEA is created for each and every product within the scope of a project. This is based on the Master FMEA, linked to the individual products. Design and process changes therefore take immediate effect on the respective FMEAs. The FMEA module was considered the "problem module" at the start of this implementation. This had no functional background, however. The company and the QM team alike simply had to consider the ways in which the FMEA could be best incorporated and most effectively used in terms of organisation. Phase 3: Phase 3 of the roll-out sees the use of the template for the inprocess, incoming goods and first sampling inspections. In-process Inspection with Inspection Planning The Inspection Plan Management module is a core element of the IBS quality management solution. The inspection criteria of each of the company's quality-relevant activities are defined here, in connection with the Control Plan. GF Automotive has three options for the creation of inspection plans: 1. Inspections plans are created manually, by the user, at a large number of sites. 2. The inspection plans originate from the measuring program. This is predominantly the case for dimension inspections. In this case the inspection plan is created from the drawing and then converted into a CAQ inspection plan via qs-stat (a program package for statistical evaluations). 3. From a mid-term perspective the graphical inspection planning option integrated in CAQ=QSYS should be used.

6 Part inspection plans come into use here, as well as the use of special inspection plans, in particular, in the SPC and Incoming Goods Control modules. As a series manufacturer, GF Automotive uses so-called continuous inspection orders, within the scope of which the inspection results are continuously captured and evaluated. Individual inspection orders are only used for certain process steps requiring the capture of batch information, e.g. in the foundry. Data acquisition within the scope of the in-process inspection is carried out on both a manual and automatic basis at Georg Fischer, with the linkage of measuring devices. This involves the execution of Incoming Goods Inspection with Supplier Assessment The incoming goods inspection supports the quality monitoring of purchased parts and raw materials. This primarily involves examinations for the assessment of materials and raw materials (e.g. spectral analysis) and attributive OK / NOK inspections (gage inspection, measuring lab inspections). The inspection results attained from random samples and dynamic sampling procedures form the basis of the supplier assessment. GF Automotive uses a bidirectional interface with the SAP ERP/PPC system for its incoming goods and supplier assessment requirements. Information on deadline and quantity reliability is sent from SAP and quality data from the CAQ system. The incoming goods inspection results are sent back to SAP. Spectral analyses Tensile tests Hardness tests Density tests Gage tests X-ray tests and so on. The SPC module (Statistical Process Control) enables optimal production process control. Disruptions can be detected at an early stage, their causes removed and production processes optimised, thus establishing the prerequisites for zero defect production. Productivity Advantage integrated quality and production management (CAQ/MES)

7 Roll-out of IBS Software Solutions in China To support and further develop its competences in China and at the same time remain a preferred partner of Chinese OEMs, the executive level resolved in favour of a roll-out in the GF Automotive plants in Suzhou and Kunshan in Both cities are in close proximity to Shanghai. Suzhou is an autonomous city located in the east of the People's Republic of China. Kunshan is a county borough that falls within the administrative scope of Suzhou in the province of Jiangsu. While the Suzhou plant specialises in the manufacture of magnesium and aluminium die castings for the automotive industry, the plant in Kunshan manufactures cast iron components. User acceptance on site was very high, right from the start, since a Chinese user interface enabled the use of all applications. The training sessions, carried out by IBS China, were given in Chinese language and was a further success factor. A number of the Chinese colleagues involved in the project had also spent several months in Germany prior to this time. European executives are also employed at both Chinese locations. Last but not least, a European colleague, who had already been working as a quality management expert for 5 years, was made available to concentrate solely on this project and support the successful implementation of the solution. All IBS modules were successfully implemented at both plants and switched to operative within just nine months. The roll out was successfully concluded at the end of January 2013, thanks to good preparation and the excellent co-operation of all those involved.

8 Project Duration The project duration for the implementation of the CAQ systems in a total of 12 plants is estimated at approximately 7 years. The project is scheduled for conclusion at the end of ,000 users currently work with the IBS solution. The System Solution at a Glance Industry: Automotive Industry Supplier Project: Introduction of a quality management system Products and modules in use: CAQ=QSYS Professional with the modules: APQP (Project Management, Control Plan), FMEA, IPM, SPC, IGC, FSI, OM, QMC, Batch Management, ToolCom, CCM, Audit, GMS, PH(A), SAM, WFM, QAM The length of time required for the implementation and commissioning of the software varied from plant to plant, ranging from nine months to two years. An economic crisis led GF Automotive to put the roll-out on hold during 2008/2009. Benefits Use of the IBS quality management solution further increases transparency within the company and the communication of experiences on a plant-independent basis. Use of the CAQ system supports the optimisation of the complete product lifecycle. In standarised processes, all relevant data is monitored and managed by the respective employees. This considerably simplifies the data tracking process and enables a reduction of reaction times. The software also supports GF Automotive in the realisation of its cross-company quality standards. Success factors in the implementation of the IBS quality management solution at GF Automotive: Simple functions to start with Rapid success desired Support and sustainability of the management Clearly defined templates for roll-out Consistency of personnel Comprehensive team of experts One key user as a central contact person at each plant Georg Fischer AG Georg Fischer AG is an international industrial group based in the Swiss town of Schaffhausen. The company is listed on the SIX Swiss Exchange and generated a turnover of 3.6 billion Swiss francs in Georg Fischer AG employs a workforce of approximately 14,000 at its 50 production sites and 130 companies worldwide. The company comprises the three core divisions GF Piping Systems, GF Automotive and GF Machining Solutions. Following the relocation of a production chain from England in 2004, Georg Fischer Automobilguss GmbH in Singen am Hohentwiel became one of the Europe's largest iron foundries, with an annual production volume of approximately 200,000 tons. IBS AG I Rathausstrasse 56 I Hoehr-Grenzhausen I Germany Tel.: +49 (0) 26 24/ I Fax: +49 (0) 26 24/ I info@ibs-ag.de LOCATIONS: Hoehr-Grenzhausen (D) Neu-Anspach (D) Boston (USA) Shanghai (PRC) 10016/01/x/0314

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