Supplier Development János Takács. Electrolux Lehel Managing Director Electrolux - Regional Chief Administrative Officer, CEE

Transcription

1 Supplier Development János Takács Electrolux Lehel Managing Director Electrolux - Regional Chief Administrative Officer, CEE

2 Electrolux businesses Cookers, Ovens & Hobs Refrigerators & Freezers A true global company Southeast Asia, China 4% Dishwashers Laundry products Latin America 21% West Europe 28% Vacuum cleaners & Small appliances Air Conditioners & Dehumidifiers Products for professional use Middle East, Africa, East Europe % Australia, New Zeeland, Japan 6% North America 31% 2012 data 2

3 Our 2015 desired position Our Vision We will be the best appliance company in the world As measured by......our customers...our employees...our shareholders Net Sales of 150 BSEK EBIT 7% & ROCE >25% 3

4 Our framework Our purpose Vision We will be the best appliance company as measured by our customers, employees and shareholders. Profitable growth Innovation Product Brand Design Operational excellence People & Leadership Values Passion for Innovation Customer Obsession Drive for Results Foundation Respect & Diversity Ethics & Integrity Safety & sustainability 4

5 Electrolux Business Sectors in Hungary Austria Slovenia Croatia Slovakia Budapest Sales and Marketing Division Serbia 280 km Floor Care & Small Appliances Sourcing Europe Professional Kithcens & Launries Sales Europe Ukraine Electrolux Major Appliances Europe - Refrigerator factory Satu-Mare Romania 2,5 hour 1 hour Holding Nyíregyháza Jászberény Small Appliances Sector - Floor Care Factory Electrolux Major Appliances Europe - Refrigerator / Chest Freezer Factory Tool and Special Machine Factory Logistics Centre CEE 5

6 Electrolux in Hungary 2012 Position Net Sales HUF 266 billion Investments between HUF 7 billion People 3436 in Hungary 3500 at Suppliers Products More than 5 million products per year To meet the real needs of consumers and professionals Figures as of 2012

7 Supplier Development An organization and its suppliers are interdependent and a mutually beneficial relationship enhances the ability of both to create value. (International Organization for Standardization Quality Management Principles: Principle 8: Mutually beneficial supplier relationships)

8 Our Quality starts at our Suppliers 1. Market Analysis 2. Potential Supplier list 3. RFQ Grip - Benchmarking 4. Selected supplier list 5. GSQA Procedure sent and supplier feedback 6. Profile EL29001 fulfilling by the supplier 7. Preliminary quality audit EL29002P DP1 Decision to proceed 8. Drawings, Supply Specif., Q requirements 9. Supply and Quality Agreement (Preliminary). Pre - Production, Quality Ass. Planning EL29003

9 Our Quality starts at our Suppliers 11. Preliminary samples with test results reports 12. Fine-tune product and re-sampling 13. Supplier process audit EL29002A 14. Pre - Production, Quality Ass. guided Implem. EL Initial sample homologation 16. Industrial trial (Application homologation report) 17. Supply and Quality Agreements finalization DP2 Production / Delivery release 18. Ramp-up production 19. Ongoing business evaluation (Q statusing, QES report) 20. EL29002A follow up (Within 6 months from production)

10 Our Quality starts at our Suppliers Our main focus is to actively engage pro-active suppliers who can interact multi-functionally within Electrolux in order to: generate innovation shorten the time-to-market reduce total product cost improve product quality optimize performance/cost ratio have early project involvement (front-loading)

11 Our Quality starts at our Suppliers Supplier classification Description Supported Fulfil Electrolux s requirements, see e.g. price, accepted quality, support Electrolux s processes with their strategy. Active If the supplier of the previous category cannot be used, this satisfies Electrolux s minimum quality requirements Restricted (hold) The supplier is not involved in the new projects. No commitment to the realization of common goals. Excluded Electrolux s minimum quality requirements are not met. No partnership in the future. Potential For the time being, not an Electrolux partner, but has the potential to become a partner in the future.

12 Our Quality starts at our Suppliers Strategic Supplier Selection Supplier Development Supplier profile Other functions Financial Purchasing Logistics Quality (GSQA) R&D

13 Our Quality starts at our Suppliers The supplier criteria fall into seven categories which together give a comprehensive picture of requirements and performance/ capabilities. Category Quality/operations Logistics Finance Environmental position Company profile Technology Price Commodity specific Criteria Quality and process system assurance Quality performance Capacity flexibility Delivery performance (errors) Lead time Financial position Environmental systems and effort Strategic confidence Supplier commitment R&D capabilities Price level Price risk/trend Commodity specific criteria* Commodity specific criteria*

14 Our Quality starts at our Suppliers After an initial set-up of mapping requirement profiles and supplier performance profiles, Supplier profile tool will support various ongoing activities. Set-up activities Requirement Profile Mapping Criteria Quality and process system assurance Quality performance Capacity flexibility Delivery performance (errors) Lead time Financial position Environmental systems and efforts Strategic confidence Supplier commitment R&D capabilities Price level Price risk/trend <Commodity specific criteria> <Commodity specific criteria> Supplier Profile Mapping Criteria Quality and process system assurance Quality performance Capacity flexibility Delivery performance (errors) Lead time Financial position Environmental systems and efforts Strategic confidence Supplier commitment R&D capabilities Price level Price risk/trend <Commodity specific criteria> <Commodity specific criteria> Ongoing activities Strategic Supplier Selection Criteria Quality and process system assurance Quality performance Capacity flexibility Delivery performance (errors) Lead time Financial position Environmental systems and efforts Strategic confidence Supplier commitment R&D capabilities Price level Price risk/trend <Commodity specific criteria> <Commodity specific criteria> Supplier Development Criteria Quality and process system assurance Quality performance Capacity flexibility Delivery performance (errors) Lead time Financial position Environmental systems and efforts Strategic confidence Supplier commitment GAP R&D capabilities Price level Price risk/trend <Commodity specific criteria> <Commodity specific criteria>

15 Our Quality starts at our Suppliers Supplier Ongoing Evaluation Monthly Reporting sheet QUALITY VERSION SUPPLIER ONGOING EVALUATION MONTHLY REPORT Electrolux Product Division Month Year Supplier Address Telephone Contact Person 1. PRODUCT QUALITY - LINE & INCOMING INSPECTION Line Rejects Month actual Incoming inspection - And if incoming is done (30) demerits for every lot refused 1 demerit for every ppm 215 ppm Target 80 ppm = DEMERITS TOTAL DELIVERY PERFORMANCE For each of the following items and for each occasion there are (30) demerits - Line stopped - Incomplete product - A rescheduling or batch size reduction causing lost efficiency in the production or sales demerits 0 Month 3 Months DEMERIT SUMMARY average 1. Product Quality Rating Demerits Comment 22 TOTAL 22 8 Q 0 - Very Good 2. Delivery Performance 0 RATING A Acceptable A 3. Number of B Restricted Suppliers 1 0 with better C > 151 Unacceptable rating Q

16 Demerits Supplier performance, follow-up and actions EHP Component: Improvement Project Supplier: ROLL BOND EVAPORATOR PLATE PD: HUL-R 258 Q A B C R 3 M Month Supplier TEAM Electrolux J. Békefi D. De Feo J. Szilágyi 1) 2) 3) 4) Scratches on the surface Dented channel Dented plate Main dimension Activities 43 Jan Main Problems Jan Feb Mar Apr May Jun Jul Aug Sep Oct 1 Nov Dec Dem Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec P lan D o C heck A ct 1) Training about defects as dents and scratches #### #### #### #### #### #### #### #### #### #### #### #### IGAZ IGAZ IGAZ HAMIS 2) Cleaning of production lines #### #### #### #### #### #### #### #### #### #### #### #### IGAZ IGAZ IGAZ IGAZ 3) Investigation on root causes of seigraphy defects #### #### #### #### #### #### #### #### #### #### #### #### IGAZ IGAZ IGAZ IGAZ 4) Serigraphy: involvement of HR dept. #### #### #### #### #### #### #### #### #### #### #### #### IGAZ IGAZ IGAZ IGAZ 5) Additional modification on the service inflated circuit to avoid deformation #### #### #### #### #### #### #### #### #### #### #### #### IGAZ IGAZ IGAZ IGAZ 6) Maintenance of anealing oven once a month #### #### #### #### #### #### #### #### #### #### #### #### IGAZ IGAZ IGAZ HAMIS 7) Cutting of edge's coils (straordinary operation) #### #### #### #### #### #### #### #### #### #### #### #### IGAZ IGAZ IGAZ HAMIS 8) Evaluation of new packaging for code #### #### #### #### #### #### #### #### #### #### #### #### IGAZ IGAZ IGAZ IGAZ Remarks a) b) 31 Feb 38 Mar Apr May 49 Jun 99 Jul 89 Aug 146 Sep 167 Oct Nov 188 Dec 170 Jan Feb Mar 11 0 Apr May 11 Jun Jul Aug 11 PROGRESS Sep 11 Oct Nov Dec 11 STATUS

17 Our approach to quality problems R&D - Prevention The procurement is part of the IPDP (Integrated Product Development Process) Joint setting of clear goals Early engagement of suppliers in the development projects Annual development programs Primary input is the Service Call Rate (SCR) Systematic approach involving the assigned team leaders and setting clear goals On-hold process Primary input is the continuous assessment

18 Supplier quality development program 1. Selection of proper parts and suppliers 2. Classification factory working group 3. Supplier Assessment 4. Meeting with the selected supplier 5. Supplier Audit 6. First follow-up meeting (after 3 months) 7. Second follow-up meeting (after 6 months)

19 Innovation Innovation - in the long run - is the ability of an individual or a group of individuals to think a thought that no one else has thought before and than successfully turn that idea into reality that separate the best from the rest. Jonas Ridderstråle, Kjell A Nordström Karaoke Capitalism 19

20 Accelerate Innovation Innovation Triangle 1. Develop best-in-class products 2. 70% preference rule 3. Reduce Time to Market 30% 4. Continue investing in premium brands R&D 20

21 Innovation Triangle The Innovation Triangle is global, for Marketing, Design and R&D collaboration everywhere We are expanding our horizons and thinking about the entire consumer experience We will develop more relevant and differentiated products, services, accessories and consumables that consumers prefer, faster than competition. 21

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23 Battery stick cleaner 23 The new generation

24 4 steps in innovation 1. Winning the product for Hungarian production 2. New technologies in production 3. Product innovation 4. Marketing innovation

25 Challenges 25 Challenges of the development: Same performance as a regular cleaner Battery driven product with long running time (1 hour) Exchangeable battery Competitive cost to be able to have the production in Hungarian production site Several new technologies to the Hungarian factory team

26 New technologies in our factory 26 Injection technology on grid Paper pulp (egg cartoon) packaging Battery handling and charging Filter production Motor vibration balance

27 Product innovation 27 Suction motor with 3 levels impeller system New electronics module Cyclone unit Brush roll clean Filter cleaning

28 Marketing innovation 28 Flexible nozzle and front light Exchangable battery Brush roll clean technology Self stand

29 Ultrapower Features all based on consumer insights 3 step power control with booster function Extra powerful combined with extra long run time Exchangeable battery pack extra pack available for purchase Self standing design Cyclonic action for less clogging Brush roll clean Technology Flexible floor nozzle with headlights

30 Thinking of you At Electrolux, our innovation is based on the consumer s everyday wants and needs. This is the essence of Thinking of you. 30

31 Thank you for your kind attention! 31