Supply Improvement Program (SIP) A method to reduce risk and costs in your supply chain.

Transcription

1 Supplier Quality Supply Improvement Program (SIP) A method to reduce risk and costs in your supply chain. Carl Douglas October 12, 2017 QualityTLC.com (360)

2 A Tale of Two Suppliers THE BAD SEED An only product supplier Worst performance in peer group Anti-business attitude Damaging customer satisfaction High cost of quality Looking for replacement THE MIGHTY OAK Strategic multi-product Supplier Best Performance in all groups Pro-Relationship, generating ideas Supporting customer satisfaction Near zero cost of quality Recipient of Best in Class Awards Apathetic Unresponsive Proactive Sustainable Responsive Untenable 2

3 Supply Improvement Program (SIP) Sustainably prevent and correct the back-flow Undesired flow of materials Suppliers Factory & Service Customers Desired flow of materials SIP is results-driven and focuses on specific measurable operational improvements and it works; for customers for factory and field for suppliers 3

4 Supply Improvement Program (SIP) The 4 pillars of SIP Excellence 1. Quality 2. Technology 3. Logistics 4. Cost SIP is a proven result-driven cross-functional and crosscompany program aimed at improving customer satisfaction. SIP focuses on improving the supply of materials/services from supplier through to customer. SIP drives improvement in four business areas; success is achieved by managing key elements in these four pillars. 4

5 SIP Playbook [Issue] Management Should you Develop, Manage, Do Nothing, or End the Relationship. 80/20: Are you an 80 or a 20 to your supplier? Is your supplier an 80 or a 20 to you? Supplier Issue selection (Tactical or Strategic focused). Communications; BBSC, Non-Conforming M/S, Performance Targets and Measures Quality Technology Logistics Costs Non-conforming materials Validate issues (methods, measures, performance) Process / product auditing Performance reviews Specifications, drawings, prints, layouts, etc. Defined Processes Who s IP (Intellectual Property) Tooling On Time Delivery window Shipping and Receiving Packaging and Labeling Storage of Inventory Import/Export and Customs Cost of Poor Quality (COPQ) Warranty, Repairs, and SLAs Commercial contracts and terms Credits / replacements 5

6 Supply Improvement Program (SIP) SIP IS SIP IS NOT A strategic nonconforming material management process A tool to develop supplier quality processes to eliminate returns & reduce costs A holistic Supplier Quality advocate A day-to-day nonconforming material management process A whip to beat supplier to gain lower prices or faster delivery Manufacturing or Service quality representative 6

7 SIP Roadmap Resolve Risk Identify Risks Ensure Sustainability Initiate Active Monitor Close Unacceptable Results KPIs below expectations Prioritize Issues only a select few Problem Solving (RCA-CAPA) Monitor Changes Closely Adjust CAPA Implementations Sustainability Proven Meets/Exceeds performance targets 7

8 SIP Measures & Key Performance Indicators Risk: (used during supplier / issue selection and evaluations) Based on Issue RPN Recurrence; Severity; Identification; and Customer Quality: (primary KPI) All Nonconforming Material (appearance, form, fit, function) Explicit and Implied OTD: (primary KPI) Material received outside the defined window Cost: (primary KPI) All Direct Labor hours consumed in diagnosis and correction Burdened labor hours and inventory related to missing commitment to customer 8

9 SIP is Results-Driven Difference between SIP-Closed and NOT SIP or WIP show value of program Take the worst and make the best 9

10 Maintain Focus use these 7 guidelines 1. Always speak with data and know your sources 2. Resist using the data as a whip; use data as a guide and measure 3. Use and educate supplier teams on Quality Tools and their uses 4. Don t try to solve world hunger serve one meal at a time 5. Use consistent reviews to measure progress and set-backs (Monthly) 6. Hold yourself and others accountable to results; if not meeting targets ask why, what could be done differently or what is not being done now that could be. 7. A good Problem Statement and measures nearly provides the root cause but, ALWAYS perform and complete problem solving exercises (Fishbone > 5-Why, etc.) and record results for review if gains are not being achieved. Target Sustainable CAPA! 10

11 SIP CAPA Prgm Mgr = Johnny Spot Prg. Mgr. = Johnny.Onthe.spot@test.com Open New Create CAPA Close CAPA Form CAPA Corrective and Preventive Actions (CAPA) Re-open Task CAPA CAPA CAPA Edit these columns only Source Owner Next Step Issue # Form Open Date Status Status Risk Source Reason for CAPA Close Date Aging Last Communication Due Date customer@tools. 2015_ Nov-2015 Open 1 Critical Customer sales@test.com Will not power up 21-Nov sent on 30-Nov-2015 com Jane.doe@test.co 2015_ Nov-2015 Open 1 Minor Internal she@test.com Part does no meet standard 15-Dec m supplier@acme.c sent on _ May-2017 Open 1 Major Supplier buyer@test.com Scratch in access panel paint #VALUE! om May-2017 John.doe@test.co 2015_49.3 created 30-Nov-2015 Open 2 Minor Internal king@test.com More Problems 01-Dec m supplier@acme.c 2016_ May-2017 Open 6 OFI Supplier buyer@test.com Received bad parts 4 om John.doe@test.co 2015_ Nov-2015 Open 3 Minor Internal king@test.com Something is wrong with it 01-Dec m Jane.doe@test.co 2015_ Nov-2015 Closed 7 Major Internal she@test.com Another Test 15-Dec May m customer@tools. 2015_49.5 created 30-Nov-2015 Closed 7 Critical Customer sales@test.com It don't work 21-Nov May com 11

12 SIP Results Wins: 74% reduction of issues, DOA dropped from 13% to <0.2%, costs fell to <0.3% Issues reduced by 74% 12

13 SIP Playbook Issue Management Should you Develop, Manage, Do Nothing, or End the Relationship. 80/20: Are you an 80 or a 20 to your supplier? Is your supplier an 80 or a 20 to you? Supplier Issue selection (Tactical or Strategic focused). Communications; BBSC, Non-Conforming M/S, Performance Targets and Measures Quality Technology Logistics Costs Non-conforming materials Validate issues (methods, measures, performance) Process / product auditing Performance Reviews Specifications, drawings, prints, layouts, etc. Defined Processes Who s IP (Intellectual Property) Tooling On Time Delivery window Shipping and Receiving Packaging and Labeling Storage of Inventory Import/Export and customs Cost of Poor Quality (COPQ) Warranty, Repairs, and SLAs Commercial contracts and terms Credits / replacements 13

14 A Tale of Two Suppliers THE BAD SEED An only product supplier Worst performance in peer group Anti-business attitude Damaging customer satisfaction High cost of quality Looking for replacement THE MIGHTY OAK Strategic multi-product Supplier Best Performance in all groups Pro-Relationship, generating ideas Supporting customer satisfaction Near zero cost of quality Recipient of Best in Class Awards Unresponsive Apathetic From - To Proactive Sustainable Responsive Untenable 14

15 For questions, comments and feedback or To learn more, contact; Carl Douglas (360) QualityTLC.com 15

16 Supply Improvement Program (SIP) A method to reduce risk and costs in your supply chain Back-up information SIP Results, Tools, & Communication Supporting information for Q & A 16

17 SIP Results Summary ( ) 17

18 SIP Results Summary ( ) Issues reduced by 74% Wins: 74% reduction of issues, DOA dropped from 13% to <0.2%, costs fell to <0.3% 18

19 The SIP Result KPIs (Quality / OTD)

20 The SIP Result KPIs (DOA / Cost)

21 SIP Specific Functional Review and Analysis SIP PROJECT REPORTING RISK EVALUATIONS Monthly SIP Status Reporting Course of Action Reporting and Driving into Top Issues Effecting Business 21

22 SIP CAPA: step 1-3 CAPA ID# CAPA Type? Select CAPA Type Today is Owner Name 13-Sep-2017 Owner Date CAPA Opened Risk Level 1 / 625 Team Members: Last Updated Save & Return to Program Status Working on Step# 1) Problem Statement Date step 1 finished = 0 = Days to complete step 1 CHECK Who initiated? Initiators Who approves closure? Approvers When is the goal date for closure of this issue? What is the situation or condition that needs to change? What is the Goal (Desired Condition / Situation)? What measures support / define the problem? How will success be measured? Part, Product, Document identification # # Description user defined user defined user defined user defined 2) Containment Date step 2 finished = 0 = Days to complete step 2 ACT What action was taken to prevent the problem from getting worse and having a larger negative impact? 3) Risk Evaluation (Risk Probability Number - RPN) Date step 3 finished = 0 = Days to complete step 3 PLAN OCCURANCE (always = 5) SEVERITY (worst case = 5) DETECTION (impossible = 5) CUSTOMER (Hi-Impact = 5) RISK RESULT 1 Consider whether problem/issue is effected by safety, legal, and/or regulatory concerns? If so, include result in proper category. 22

23 SIP CAPA: step 4 4) Root Cause Analysis (Cause & Effect) Date step4 finished = 0 = Days to complete step 4 PLAN Brainstorm and list possible causes creating the undesired effect (condition, situation, issue)? Hints MACHINES MANPOWER MATERIALS MEASUREMENTS METHODS MOTHER NATURE (Environments) PLANT / TECHNOLOGY POLICIES 4) Root Cause Analysis (5-Why) As a continuation of the Root Cause analysis, perform a 5-Why analysis. Select the 3 most likely causes identified above as a result of the Cause and Effect brainstorm? Possible Cause (A) = enter most likely cause here Possible Cause (B) = enter most likely cause here Possible Cause (C) = enter most likely cause here 23

24 SIP CAPA: step 6-8 5) Countermeasures / Corrective Actions Date step 5 finished = 0 = Days to complete step 5 DO Identify below the proposed countermeasure(s) to address each possible root cause (A, B, and C) listed above in the 5-Why. When Who 6) Confirmation of Result(s) Date step 6 finished = 0 = Days to complete step 6 CHECK Show the actual result of A, B, C countermeasure, corrective, preventive action for each implemented countermeasure action. Performance Change 7) Evaluate & Adjust Date step 7 finished = 0 = Days to complete step 7 ACT (A) (B) (C) Problem prevention, standardization and communication When Who 8) Does approver agree implemented solution has resolved the problem? NOT YET Date step 8 finished = CHECK 0 = # Days CHD