Quality & Warranty Analysis Tool

Transcription

1 Quality & Warranty Analysis Tool Micke Rydbeck 1

2 Micke Rydbeck Projects Management, Warranty Systems, Applying Analytics to Predict and Prevent Critical Warranty Issues Stockholm, May 23,

3 Agenda Why a new Tool 3. Improvements 4. Future 3

4 The Volvo Group Organisation AB Volvo BUSINESS AREAS Mack Trucks Renault Trucks Volvo Trucks Buses Construction Equipment Volvo Penta Volvo Aero Financial Services Volvo 3P BUSINESS UNITS Volvo Powertrain Volvo Parts Volvo Logistics Volvo Information Technology & Others 4

5 Core Values Quality Safety Environment 5

6 Volvo Trucks in 2006 Deliveries (units) Employees , , , , ,300 75, ,800 19,000 6

7 Importers, Dealers, Service Points 2006 Service Points Dealers North America 350 South America 130 Europe Others 380 North America 250 South America 130 Europe 270 Others 400 Total Total Approximately Mechanics 7

8 Volvo Trucks Quality & Warranty focus Truck Uptime Fault frequency Warranty cost 8

9 Agenda Why a new Tool 3. Improvements 4. Future 9

10 Why a new Quality & Warranty Analyse Tool? Systems Several systems and tools, using multiple sources of data. QMS STINS Limited functionality for automatic processing of large amounts of data, e.g., trend analysis. Harry TWS QMF Few pre-defined and automatically generated output reports/charts. 10

11 Why a new Quality & Warranty Analyse Tool? Work Approach Large amounts of manual work Sample test analysis rather than large volume data analysis. Forecasting accuracy not good enough. 11

12 Why a new Quality & Warranty Analyse Tool? 1. Time and resource consuming work process, 2. Reactive rather than proactive problem solving, 3. Contradictory results and confusion, 4. Higher warranty costs than necessary, 5. Insufficient approach to warranty cost recovery. 12

13 A business case for QWAT investment focuses on realizing direct savings, recoveries, and efficiency gains, as well as indirect cost avoidances Soft Effects* Savings Identification of suspect claims Infrastructure Recoveries Increased supplier recoveries Efficiency Gains Productivity increase Data access and reporting Analysis Cost Avoidance Early identification of defect parts Increased customer satisfaction, both internally and externally Freeing up of capacity due to fewer warranty actions, both internally and at dealers = Core effects Direct warranty payments and costs * NOT considered in the business case. = Indirect effects Cost avoidance = Soft effects 13

14 Why we chose SWA Solution Main Arguments To base the project on a (proven) pre-packaged solution Easy-to-use user interface Advanced functionality ensuring a more proactive approach SAS-solution meets future business demands. 14

15 Applying the SAS Emerging Issue Detection indicates substantial savings in lead time for issue detection EXAMPLE Battery Claim proportions for first 12 sales months The Volvo Proof of Concept Norm line calculated based on five years of historical data. Alerts created when production date failure rates exceed norm line. Evaluation and prioritization using claims cost index. Actual Jan 03 Discovered via dealer site visit SAS POC Oct 02 In this example, a three months lead time reduction for the detection of the battery issue could have been realized Source: SAS proof of concept on Volvo data in October

16 Agenda Why a new Tool 3. Improvements 4. Future 16

17 Improvement areas by SAS tool usage Suspect claims More efficient Dealer Audits Supplier Warranty Recovery Increased number of supplier penetration Analysis and report quality, productivity and lead-time Automatically generated standard reports, reduced administration and easier communication Quality Cost avoidance Early Warning Detection Improve Product Quality Process, lead-time Infrastructure Delete multiple data sources, analysis and report applications 17

18 Product Quality Process One common way to measure Fault frequency Unplanned stops Standard Reports FH Western Module Europe team VMT Claims/vehicle 0,35 0,30 0,25 0,20 0,15 0,10 Fault Frequency 0,19 0,18 0,15 0,20 0,20 0,05 0,00 Feb-04 Mar-04 Apr-04 May-04 Jun-04 Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Reduce manual work with reports Assembly month 3 months 6 months 12 months Forecast 3P Year End Commitment 18

19 Warranty Claim Handling Monthly Warranty Reports Payments per Truck Indicate areas for targeted audit Market / Dealer performance follow up 19

20 Early Warnings Emerging issues indication Automated Specified watch lists Root cause analysis Drill down functionality 20

21 QWAT reduce the number of sources of information Before After QMS STINS UCHP VDB GPS STINS VDA KOLA QJS Harry QMF TWS EUDID + Global DB QWAT Tools 21

22 Agenda Why a new Tool 3. Improvements 4. Future 22

23 A Global Tool being implemented at Volvo AB Volvo BUSINESS AREAS Mack Trucks Renault Trucks Volvo Trucks Buses Construction Equipment Volvo Penta Volvo Aero Financial Services Volvo 3P BUSINESS UNITS Volvo Powertrain Volvo Parts Volvo Logistics Volvo Information Technology & Others QWAT USERS (excl NAD) 8 Power Users 92 Advanced Users 79 Basic Users Total

24 QWAT focused issues Data Quality 2. Develop Reports 3. Train Users 4. Integrate in processes 24

25 Thank you for your attention! 25