ZF Escalation Model Supplier / Purchased Parts

Transcription

1 MOTION AND MOBILITY ZF Escalation Model Supplier / Purchased Parts Detlef Döpfner SGMD ZF Friedrichshafen AG

2 Agenda Purpose Inclusion to the Escalation Model Contents of the Escalation Levels Escalation Level 1-4 Completion of Escalation Process SGMD, ZF Escalation Model - Supplier/ Purchased Parts, Public

3 Agenda Purpose Inclusion to the Escalation Model Contents of the Escalation Levels Escalation Level 1-4 Completion of Escalation Process SGMD, ZF Escalation Model - Supplier/ Purchased Parts, Public

4 Purpose Safeguarding faultless deliveries to our customers is the highest priority at ZF. To this purpose, faultless deliveries from our suppliers are an absolute requirement. In the event of faulty deliveries, the ZF escalation model "Supplier / Purchased parts" comes into action. This model is fundamentally applicable for all suppliers of production materials to ZF and its divisions. For all those involved, this escalation model supports : quick and effective action and binding and sustainable process optimization. If necessary, to eliminate faulty purchased material, cross-functional teams are to be formed between the supplier, ZF and if applicable, external experts. The escalation model "Supplier / Purchased Parts" describes the procedure in the event of: Supply of defective products inadequate delivery reliability supplier permanently fails to correct the defects failure to implement corrective actions to improve logistical processes. Insufficient collaboration in project management for new- or relocation projects (APQP or Supplier Readiness projects) It ensures that the various ZF plants use a universally standardized procedure and that the ZF suppliers are linked into the problem solving process through the same escalation model SGMD, ZF Escalation Model - Supplier/ Purchased Parts, Public

5 Agenda Purpose Inclusion to the Escalation Model Contents of the Escalation Levels Escalation Level 1-4 Completion of Escalation Process SGMD, ZF Escalation Model - Supplier/ Purchased Parts, Public

6 Inclusion in the Escalation Model (Adoption Criteria) A supplier delivering defective products shall be included into the escalation process if, In the framework of serial deliveries: a specific defect continues to occur even though the problem-solving process (8D) was completed, the complaint management of the supplier is inadequate, target requirements are repeatedly and seriously infringed seriously, in particular with regard to quality and delivery reliability, field complaints with the probability of substantial claims for damages or appearance of safety-related damages occur, 0-km complaints with the probability of substantial claims for damages or appearance of safety-related damages occur, supplier fails to perform or is in delay with negative impacts on production or customer supply, or increased internal process costs in logistics, the supplier is in non-compliance with LR10 provisions, the supplier is in non - compliance with QR83 provisions, more than one ZF plant is affected, any other similar case of critical and significant defects occour SGMD, ZF Escalation Model - Supplier/ Purchased Parts, Public

7 Inclusion in the Escalation Model (Adoption Criteria) For project management (e.g.in case of APQP or Supplier Readiness) for new- or relocation projects the escalation process applies if : the supplier is in delay with defined project milestones, the supplier is in delay with or is not delivering the requested documentation, the communication with responsible ZF contact partners is missing or insufficient, work on the defined measures in order to reach the project targets is insufficient, supplier fails to apply the defined ZF tools (e.g. eapqp). Repetitive bad quality of prototype deliveries The extent to which one or more of the above events or criteria lead to application of one of the escalation steps will be decided on a case-bycase basis by the responsible technical departments SGMD, ZF Escalation Model - Supplier/ Purchased Parts, Public

8 Agenda Purpose Inclusion to the Escalation Model Contents of the Escalation Levels Escalation Level 1-4 Completion of Escalation Process SGMD, ZF Escalation Model - Supplier/ Purchased Parts, Public

9 Escalation Model "Supplier / Purchased Parts contents of the Escalation levels Incoming goods department/ Logistics/ Quality assurance plant Supplier development / Purchasing Escalation level 1 ES 1 Letter to the supplier including escalation checklist Increased awareness in ZF Incoming Goods Department Requirement that supplier draws up an action plan 100% self-inspection by supplier incl. inspection of parts in the ZF plant supplied and those in transit Case specific: Escalation level 2 ES 2 Letter to the supplier including escalation checklist Visit to supplier for process control, defect analysis, and to check actions to be taken Management of supplier to present a program to correct the defects on the premises at ZF Agreement on additional actions 100% inspection by third party (in agreement with ZF) at the supplier. Appointed and paid for by supplier Escalation level 3 ES 3 Executive Management Meeting between: - ZF Commodity Organization - ZF Q and/or Logistics Depart ment Recipient plant - Supplier's Board of Management Not taken into consideration for new business (German abbreviation: NBH) (status G) If required: Shift part of the volume Inform the ZF customer Inform the supplier's auditor / certification registrar Escalation level 4 ES 4 Development of an alternative supplier Selective phase-out Withdrawal of supply contrac Class Z, Status P Specification of a phase-out plan Note: The process of selective phase-out of the supplier on a ZF-Group level (SAZU = Z) is described in the DG "Supplier Management". 100% inspection by third party (in agreement with ZF) Extension of actions to cover other components Visit to supplier Case specific status set into NBH is possible (status G ) SGMD, ZF Escalation Model - Supplier/ Purchased Parts, Public

10 Agenda Purpose Inclusion to the Escalation Model Contents of the Escalation Levels Escalation Level 1-4 Completion of Escalation Process SGMD, ZF Escalation Model - Supplier/ Purchased Parts, Public

11 Escalation level 1 (ES1) If the ZF plant has decided on the basis of available facts, to apply level ES1 to the supplier, then increased attention is required in the incoming goods inspection of ZF. The supplier will be informed offically in written form. Additionally the case is documented in ZAMS (ZF-Audit Managements System), which is worldwide available in ZF. In this level, the ZF plant supplied defines the following: affected part affected ZF plant / supplier plant reason for escalation level affected deliveries / products characteristics of the products affected type and scope of specified activities/tests (done by supplier) type of inspection Identification after agreed inspection type and scope of documentation (implemented by supplier) short-term actions to ensure supply of ZF as well as ZF customers, e.g. 100% goods leaving inspection and examination of all parts at the concerned ZF plant as well as parts in transport SGMD, ZF Escalation Model - Supplier/ Purchased Parts, Public

12 Escalation level 1 (ES1) criteria for escalation (moving to next escalation level) criteria for de-escalation (downgrading in previous escalation level/ suspension out of escalation) In the individual case, the following must be effected: 100% inspection by third party (in agreement with ZF) Extension of QA measures to cover other components Visit the supplier The agreed inspection has to refer to the characteristics which have become conspicuous. It has to be documented in writing by the supplier for every delivery on the basis of the Quality Directive QR83 form F11 Identification of certified material after complaint" to be documented in writing. Apart from that, the supplied ZF plant can specify additional documentation requirements. The supplier has to implement the agreed actions until verification of a sustainable solution to the problem has been provided. This will lead to de-escalation. The responsible person for quality and/or logistics of the affected ZF plant has to be informed regularly about the current status by the supplier. The above mentioned agreements are documented in a check list and officially communictae between both parties. The corresponding form is available on the ZF- QR83 Homepage SGMD, ZF Escalation Model - Supplier/ Purchased Parts, Public

13 Escalation level 2 (ES2) If the verification required in level ES1 is not provided or is not provided on time, then the supplied ZF plant can introduce escalation level 2. The classification is carried out in cooperation with the responsible Purchasing for "production materials". In Escalation level 2, the following steps are mandatory: Letter to the supplier including the escalation checklist. The corresponding form is available on the ZF- QR83 Homepage. Performance meeting at ZF. Management of supplier has to present a program to correct the defects. affected departments of the supplier, ZF Logistics and Purchasing Organization shall be informed. Together with the affected departments, the parties communicate weekly about target achievement and process progress. Agreement on an additional 100% inspection at the supplier s plant by a third party service provider (in agreement with ZF) ordered and paid by the supplier. Additionally the case is documented in ZAMS (ZF-Audit Managements System), which is worldwide available in ZF. Further tasks of the supplier at this stage are: Reporting of the root-cause analysis Status of defect-correction Working on the agreed actions The supplier has to implement the agreed measures until verification of a sustainable solution to the problem has been provided. This will lead to de-escalation. Case specific status set into NBH is possible (NEW BUSINESS ON HOLD) SGMD, ZF Escalation Model - Supplier/ Purchased Parts, Public

14 Escalation level 3 (ES3) If the measures agreed in level 2 do not lead to the envisaged outcome or are processed inadequately, Purchasing for production materials can introduce escalation level ES3. In escalation level 3 the Purchasing Management needs to initiate an Executive Management Meeting with the following parties: Purchasing management ZF Q Department of supplied ZF plant Board of Management (supplier) This is followed by weekly communication that provides information about target achievement and process progress. The status of the supplier will be changed to blocked = NBH (NEW BUSINESS ON HOLD). Additionally the case is documented in ZAMS (ZF-Audit Managements System), which is worldwide available in ZF. If necessary the following consequences can be introduced here: Information of the affected ZF customer Information of the supplier's certification registrar Partly shift of the volume SGMD, ZF Escalation Model - Supplier/ Purchased Parts, Public

15 Escalation level 4 (ES4) If the supplier fails to meet the targets or the schedule even after passing through ES 3, the responsible Global Head of Commodity Cluster in agreement with the Global Head of Commodity Purchasing, must trigger escalation level ES4. In other words, Development of an alternative supplier Selective phase-out Withdrawal of supply contract SGMD, ZF Escalation Model - Supplier/ Purchased Parts, Public

16 Agenda Purpose Inclusion to the Escalation Model Contents of the Escalation Levels Escalation Level 1-4 Completion of Escalation Process SGMD, ZF Escalation Model - Supplier/ Purchased Parts, Public

17 Completion of Escalation Process De-Escalation A de-escalation of the supplier is carried out by the respective board to: the previous level or withdrawal from the escalation model Costs Costs incurred by applying the Escalation Model have to be covered by the supplier SGMD, ZF Escalation Model - Supplier/ Purchased Parts, Public

18 Thank you ZF Friedrichshafen AG behält sich sämtliche Rechte an den gezeigten technischen Informationen einschließlich der Rechte zur Hinterlegung von Schutzrechtsanmeldungen und an daraus entstehenden Schutzrechten im In- und Ausland vor SGMD, ZF Escalation Model - Supplier/ Purchased Parts, Public ZF Friedrichshafen AG reserves all rights regarding the shown technical information including the right to file industrial property right applications and the industrial property rights resulting from these in Germany and abroad.