Supplier Day 2011 Quality Expectations
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1 Supplier Day 2011 Quality Expectations Randy Keough Quality Manager, Newaygo Division; Magna Mirrors NA Ed Enns Director of Supplier Quality & Development, Magna International
2 Agenda Current State of Quality Performance Systemic Concerns Migration to Magna Supplier Manual Supplier Performance Rating System Overview Disclosure or duplication without consent is prohibited 2
3 Current State of Quality Performance What is important to the OEM s and how are we doing? Disclosure or duplication without consent is prohibited 3
4 Current State of Quality Performance Customer focus Incidents and PPM reduction, launch performance 2010 vs 2011 Magna Mirrors OEM Performance Improving but much more is needed to sustain our market share Disclosure or duplication without consent is prohibited 4
5 Current State of Quality Performance Supplier Performance to Magna Mirrors Divisions 933 Incidents Slight year-over-year improvement since 2009 Supplier PPM > 10x Magna Mirrors OEM PPM Over 100 Incidents per month Tremendous burden on our manufacturing divisions Disclosure or duplication without consent is prohibited 5
6 Supplier Performance Rating System Overview How do you know if you are meeting expectations? Disclosure or duplication without consent is prohibited 6
7 Supplier Performance Rating System Overview SPRS Quality, Delivery, Commercial & Service Quality Criteria PPM, DCAR, PPAP, QMS certification Actual PPM vs 10 PPM target Actual PPM vs Stat code (commodity) average DCAR timeliness, pass-through to customer, repeats Web-based system PPAP rejected or limited New on-line distribution Quality Management System certification TS16949/ISO MDSC upload by supplier AIAG CQI-xx, Government Regulation certs (CCC, EEC, etc.) Disclosure or duplication without consent is prohibited 7
8 Current State of Quality Performance What are some common themes seen across the supply base? Disclosure or duplication without consent is prohibited 8
9 Systemic Concerns Root cause analysis and countermeasure development. Systemic & engineering analysis lacking, 3x5 why Timing not met may vary by issue type or OEM Breaking clean points Core quality tools are not understood and used PFMEA not robust, missing detailed attention to significant characteristics Control plans missing the proper detail PPAP requirements not understood Disclosure or duplication without consent is prohibited 9
10 Systemic Concerns Missing annual validation of product and process Get joint agreement with your MM QE during APQP Activity and cost is the supplier s responsibility. Annual validation is a requirement for service also at some OEMs Chrysler, Ford, BMW Product and process verification methods are not robust Testing does not flush out real world issues Disclosure or duplication without consent is prohibited 10
11 Systemic Concerns Gauges & Calibration Measurement and inspection processes not reviewed for impact to data ( measurement uncertainty ) Calibration sources not approved or capable Management review of calibration reports Missing or incomplete - out of tolerance conditions not addressed. Disclosure or duplication without consent is prohibited 11
12 Magna Supplier Manual Where can you find the Magna Mirror requirements? Disclosure or duplication without consent is prohibited 12
13 Migration to Magna Supplier Manual Magna Mirrors Supplier Quality Requirements Current Condition Magna Mirrors SQR Manual & Addendums Location: New Condition January 1, 2012 Magna NA Supplier Requirements Manual Magna Mirrors Addendum Magna Mirrors clarification to the Magna requirements Location: Magna International Website (Supplier Resources page) spx Disclosure or duplication without consent is prohibited 13
14 Migration to Magna Supplier Manual Magna NA Supplier Quality Requirements No fundamental changes from the MM SQR Standardizes requirements across Magna N.A. Introduction general expectations regarding Magna/Supplier relationship, changes and social responsibility Basic requirements qualification, Quality Systems, assessments Product/Process Development APQP Serial Production process control, nonconforming material, engineering changes, warranty Materials and Logistics packaging, labeling, lot control, planning and forecasting, transportation, MMOG Supplier Performance reporting and continuous improvement Disclosure or duplication without consent is prohibited 14
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