The Fifth Dimension: The Supplier & OEM Interface. Steve Walukas Vice President Corporate Quality DaimlerChrysler Corporation

Similar documents
Integrated Quality Systems

DaimlerChrysler (Chrysler Group) Customer-Specific Requirements

Supplier Requirements Manual

Montaplast of North America, Inc.

Sections of the Standard. Evidence / Comments. (Y) / Nonconforming (NC)

Supplier Performance Metrics External Balanced Score Card (EBSC) Update

Quality Manual TABLE OF CONTENTS APPROVAL SIGNATURE PAGE AMENDMENT RECORD SCOPE EXCLUSIONS 2.1 3

ROTEK. IIInnInstI Instrument Corp. ISO 9001 Quality System Manual

Fiducia TG Reliability Life Cycle Management (RLCM)

Supplier Quality Manual (QQS )

INTEGRATING ISO 9000 METHODOLOGIES WITH PROJECT QUALITY MANAGEMENT

Merchandising. Merchandising Retail Intelligence. Mark Healy Senior Director. Operations

Awareness Session for Transition to IATF 16949:2016

Q&A on announcement. About the announcement. 1. Why is Cerberus purchasing Chrysler?

The University of Toledo Audit Committee Meeting. April 19, 2010

ELEMENTS OF MANUFACTURING BASICS

Quality Manual Revision: C Effective: 03/01/10

Table of Contents. 1.0 Introduction 1.1 Overview 1.2 Customer Responsibilities

Supplier Quality Manual

Supplier Containment

Quality & Warranty Analysis Tool

IATF Ford Motor Company

A CHECKLIST FOR QUALITY. Seven Questions to Gauge Quality in Metal Stamping Suppliers

Connecticut Valve & Fitting Co.

Antonio Ventura SUMMARY

CORPORATE QUALITY MANUAL

EMBARGOED UNTIL MIDNIGHT ET

Using Baldrige, Enterprise SPICE, and other Robust Performance Excellence Tools to Drive Organizational Improvement

Quality Manual. Wilson-Hurd Manufacturing Company. Electronic Control Products (ECP) 311 Winton Street Wausau, WI 54402

Edition: Revision 09, February 19, This document is controlled by: Mayco International, LLC. Edited by

Speech of the Chairman of the Board of Management Dr. Dieter Zetsche Press Conference regarding the new structure of DaimlerChrysler

Patrick Malloy Communities Quality Assurance System

ON-THE-JOB TRAINING BLUEPRINT

Supplier Requirement Manual. Preface

S C O T T G A R B E R D I N G

New Higg.org Platform Training. Understanding and Navigating the new platform

Global Supplier Manual Appendix U FCA EMEA Customer Specific Requirements for Suppliers. October 26, 2017

Assessment Item LINAMAR POTENTIAL SUPPLIER ASSESSMENT Potential Supplier Assessment - Technical Manufacturing Survey Page 1

Revcor Supplier Quality Manual

Bosch Australia Increased safety, reduced costs: Hazard, near miss reporting system successfully implemented

QUALITY and ENVIRONMENTAL, HEALTH & SAFETY MANAGEMENT SYSTEM MANUAL

TRACEABILITY: SOLVING CHALLENGES & ADDING VALUE IN ELECTRONICS MANUFACTURING

RUWACON QUALITY MANUAL

The Thinking Approach LEAN CONCEPTS , IL Holdings, LLC All rights reserved 1

Flow Control business unit. Commitment to quality, environment, health and safety

Net Shaped Solutions Supplier Assessment

Cox s Journey to the Cloud March 10, 2016

SUPPLY CHAIN EXCELLENCE IN WIDEX. June 2016

Digital manufacturing for traceability aids warranty management and quality assurance.

Elements of Excellence

Employee Engagement: Strategy and Practices. Contents are subject to change. For the latest updates visit

Layered Process Audits (LPA) and The Paper Theater

ABB ServicePro 4.0 Service Management System

PMO17BR303 The Big Bang Cerner s Approach to Agile Transformation Matt Anderson, PMO Director Cerner Corporation

Security Operations. BS EN ISO 9001: 2008 Issue 1.2: 21/10/2016. Quality Manual. Managing Director. Controlled / Uncontrolled when printed

SUPPLIER QUALITY MANUAL Control of Nonconforming Product

Supplier Quality Requirements Manual

Document Routing/Approval Record

Measure What You Manage. Michael Cowley, CPMM President CE Maintenance Solutions, LLC

LG SOURCING VENDOR QUALITY MANAGEMENT SYSTEM REQUIREMENTS

Quality Assurance. QA Programs for Local Health Departments

DOCUMENT CONTROL INFORMATION

Supplier Quality Standard

SUPPLIER REQUIREMENTS MANUAL Revision 3. SUPPLIER REQUIREMENTS MANUAL Revision 3 GATES CORPORATION

Quality Systems Basics

FAIRFIELD GLOBAL SUPPLIER QUALITY PROGRAM

Western Diversified Plastics, LLC. Supplier Requirements Manual

FCA US LLC Dundee Engine Plant

Supplier Quality Manual CHASSIX Inc.

EMBARGOED UNTIL 11:30 AM ON WEDNESDAY, APRIL 25, 2018

Administration Division Public Works Department Anchorage: Performance. Value. Results.

NEW MID-TERM PLAN MAZDA MOTOR CORPORATION

Prepared Remarks of Edison International Edison Insight Series Conference Call: Edison Energy Strategy September 18, 2017, 1:30 p.m.

ISO Monitoring and Measurement Nonconformance and Corrective and Preventative Action

IATF - International Automotive Task Force IATF 16949:2016 Frequently Asked Question (FAQ)

FERC/RTO Training Session Institute for Policy Integrity New York University School of Law June 15, 2011

Supplier Quality Manual CHASSIX Inc.

QMS CO-ORDINATOR & GENERAL PROCEDURES:-

Clause Map IATF 16949:2016 to ISO/TS 16949:2009

Adding Value by Proactively Managing Departmental Risks

1. Quality Right First Time for product and services will ensure fulfillment of external and internal Customers satisfaction. 2. It is a coordinated a

JDI Quality Assurance Guideline

Disciplined in execution and operation. Henk Scheepers Senior Vice President Supply Chain Management Analyst Day, September 20, 2005

IATF transition. Only 1 year to go for over 69,000 ISO/TS16949 certified organizations to transition to ISO9001: 2015 and IATF 16949: 2016.

Quality Manual. This manual complies with the requirements of the ISO 9001:2015 International Standard. AW2 Logistics, Inc Ace Industrial Dr.

Global Supplier Quality Manual. Revision 4

Materion AMTS Supplier Quality Manual

Agreement. Between. Cooper Standard. (Hereafter referred to as the CS ) And. (Hereafter referred to as the Supplier )

Remedies for Supply Chain Headaches: Innovating Critical Process Manufacturing Oversight. March 23, 2016

China Mengniu Dairy Company Limited 2013 Annual Results. Stock Code: 2319 March 2014

ASA ANNUAL CONFERENCE 2014 WASHINGTON, DC THE 8D DISCIPLINE TO EFFECTIVE PROBLEM SOLVING

Moving from ISO/TS 16949:2009 to IATF 16949:2016. Transition Guide

Supplier Quality Systems Requirements Manual

A CHECKLIST FOR QUALITY. Seven Questions to Gauge Quality in Metal Stamping Suppliers

Aerospace MRO Supplier Quality Supplier Quality Assurance Requirements MRO1001. Rolls-Royce plc 2012 Page 1 of 7

EVANS CAPACITOR COMPANY

BUSINESS CASES & OUTCOMES

Reengineering Customer Service Practices with AMI

MERIT Customer Specific Requirements

Performance Evaluation Standard as per ISO 9001:2015

Transcription:

1 The Fifth Dimension: The Supplier & OEM Interface Steve Walukas Vice President Corporate Quality DaimlerChrysler Corporation

The Fifth Dimension The Supplier & OEM Interface DaimlerChrysler Overview The Chrysler Group Results The Chrysler Group s Product Offensive Internal and External Interface

DaimlerChrysler Overview DaimlerChrysler Overview THE AUTOMOTIVE BUSINESS AND AUTOMOBILE-RELATED SERVICES ACCOUNT FOR 99% OF DAIMLERCHRYSLER'S REVENUES

DaimlerChrysler s Strategy is Based on Four Strategic Pillars Global Presence Strong Brand Portfolio Innovation & Technology Leadership Broad Product Range

Extensive Research Capabilities Permanent staff 1,600 scientists plus 1,000 doctoral/diploma candidates/junior staff

Disciplined Product Development Processes Product Strategy Chrysler Development Development System System Continuous Improvement Customer Trends IDEATION Competition Design Ideas Technology Trends Fuel Prices Economic Environment Regulatory Trends BUSINESS CASE Establish Program Program Transition Vision Identify Potential Alternatives I H1 H2 G1 Product Strategy Product Executive Team Committee PPDC V1 Mid-Cycle Renewal Freshening Technology Management Concept Development Design Execution Launch Confirm Product/ Process Design Optimize Product/ Process Design Verify Product/ Process Design G2 EF D1 D2 Validate Product/ Process & Verify Facilities Validate Vehicle/ Facilities & Launch Ramp-up C B A Product Innovation Team Regulatory Changes (PEC) Quality Improvement (Monthly Review) Cost Reduction (Bi-weekly Component Teams)

Worldwide Manufacturing Locations

Global Retail Locations Market Performance Center (MPC) Joint Venture Independent Distributor

The Chrysler Group s Transformation By Leveraging our Global Enterprise, The Chrysler Group s New Generation of Vehicles Shares the Ultimate in: Innovation Quality Styling Environment Value Safety

2004 Calendar Year Product Offensive Durango PT Cruiser Convertible Town & Country 300C Crossfire Roadster SRT-6 Coupe SRT-6 Roadster Grand Cherokee NOV DEC 2004 JAN FEB MAR APR MAY JUNE JULY AUG SEP OCT 1st 2nd 3rd 4th NOV DEC 2005 JAN SRT-10 Caravan Wrangler Unlimited Magnum Dakota Liberty Refresh/ Renegade Liberty Diesel

Product Offensive 2004 2007 25 in New vehicles to market 36 months 36

Chrysler Group: Strategic Transformation CHRYSLER GROUP HAS SHOWN SIGNIFICANT PROGRESS REDUCING WARRANTY CONDITIONS AND EXPENSES Warranty C/1000 Goal: Best in Class by 2007 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Model Years

2004 Consumer Reports PT Cruiser Toluca Assembly Plant RECOMMENDATION Jeep Liberty Toledo North Assembly Plant Chrysler Sebring Sterling Heights Assembly Plant Dodge Stratus Sterling Heights Assembly Plant

J.D. Power IQS - Results 2004 Chrysler Group Top Quartile Models Dodge Stratus Coupe Dodge Neon Chrysler PT Cruiser Dodge Ram Pickup HD Dodge Caravan/Grand Caravan

2004 Harbour Report Command Performance: Chrysler Group is Most-Improved Automaker in The Harbour Report 2004 7.8 % improvement Set new industry benchmark in transmission productivity

2004 Focus Emphasis on Warranty Improvements Launch Management Prevention of Problems Speed of Problem Resolution Durability / Reliability / 3/36 Warranty Improve Internal and External Collaboration

The Extended Enterprise Collaboration Internal Departments Design Engineering Manufacturing Procurement & Supply Sales & Marketing Finance Shareholders Dealers NADA Dealer Councils Dealer Advertising Associations Labor UAW(U.S.A.) CAW (Canada) El Sindicato (Mexico) Management DaimlerChrysler External Organizations AIAG VDA/ISO JAMA Government Agencies EPA NHTSA Financial Institution Analyst Credit, DaimlerChrysler Bank Suppliers Production Parts Tooling & Equipment Service & Parts

Importance of Collaboration We rely on our partners to: Provide perfect parts and services Efficiently design & produce parts & services Proactively look for better standards, methods, parts, products, and services Continuously strive for improvement Provide innovative methods and technology Delight the customers through passionate execution of requirements and customer wants

19 The Fifth Dimension: The Supplier OEM Interface DaimlerChrysler Corporation Scott R. Garberding Vice President Supplier Quality

The Suppliers role is key within Chrysler Group 1,300 Top Parent Suppliers 64,000 purchased production components $26 Billion annual buy Our performance directly relates to the performance of our supply base.

Primary Root Cause for Critical PRISMs 60 50 51 40 39 30 20 10 11 10 8 3 2 0 Inadequate Process Control Method Process Control Method Not Followed Inspection and Testing Design Control Control of Nonconforming Product Handling, Storage, Packaging and Presentation Part Identification and Traceability

Primary Root Cause for Critical PRISMs 60 50 40 30 51 75% of all defects are due to 39 Process Non-Conformance 20 10 11 10 8 3 2 0 Inadequate Process Control Method Process Control Method Not Followed Inspection and Testing Design Control Control of Nonconforming Product Handling, Storage, Packaging and Presentation Part Identification and Traceability

Global Supplier Quality Initiatives Layered Process Audit Quality Funnel Improve Process Restructured Process Sign-Off Forever Requirements Revision CDS Quality Gates Best Practices Feedback Source Package Revision

What is a Layered Process Audit (LPA)? LPA is an ongoing system of process checks that verify proper methods, settings, operator craftsmanship, error proofing devices and other inputs are in place to ensure a defect free product. LPA s assure that defined methods and work instructions are utilized, problem solving solutions are held in place, and all process issues are identified and quickly correctly.

How does an LPA Work? PFMEA Control Plan Work Instructions Corrective Actions Technical Memory Continuous Improvement Inputs Prevention Actions Employee Workshops Build Technique Process Audits Error Proofing Machining Attributes Audits are conducted regularly by all levels of supervision Non-conformances are immediately addressed

LPA - Frequency Plan Plant Manager 1 X Week Area Management 2 X Week Production Supervisor 1 X Shift Encourages Management Involvement Encourages Operator Feedback Establishes Accountability

LPA Benefits Reduces Improves Build variation based on work standardization End-of-line inspection Part defects First time through capability Morale Facilitates Operator training Management/operator interface Reinforces Safety regulations

LPA Success at Kokomo Transmission Plant LPA Success at Kokomo Transmission Plant Repair Inventory vs First Time Capability vs LPA KTP Now conducting 6700 Process Layered Audit Checks 100 First Time Through (%) 95 FTC 90 5400 Repair Inventory 85 80 75 # of LPA Checks / Week 70 1800 65 0 Process Layered Audits 60 180 55 52-03 46-03 49-03 40-03 43-03 34-03 37-03 31-03 25-03 28-03 19-03 22-03 13-03 16-03 7-03 10-03 1-03 4-03 48-02 51-02 42-02 45-02 39-02 33-02 36-02 27-02 30-02 21-02 24-02 18-02 Weekly

Supplier Interface LPA s will be mandatory ISO/ TS 16949 DaimlerChrysler Customer Specific Requirements New section under Internal Audits Effective 7/01/04 for Powertrain & Component Plants suppliers; 1/1/05 for all remaining suppliers Posted on AIAG, IAOB, and QMS web sites Letter mailed to all suppliers DaimlerChrysler Corporation Peter M. Rosenfeld Executive Vice President Procurement & Supply August 6, 2004 A Layered Process Audit ("LPA") is a quality improvement business system involving multiple layers of management. It consists of regularly scheduled reviews of all elements in a manufacturing/ assembly process to ensure that: equipment is being properly maintained; error proofing is working, and; proper craftsmanship and/or build techniques, from standardized work instructions, are being followed. Utilization of LPA will result in more disciplined processes and improve overall quality. Most Chrysler Group Powertrain facilities are already using LPA. I am writing to you because I am asking that all supplier manufacturing facilities providing parts to one or more of Chrysler Group's Powertrain plants deploy LPA. Within the next few weeks, your plant and quality managers will be receiving correspondence which will provide additional information about LPA training. The course work will be conducted at the DaimlerChrysler Technology Center during the next Supplier Training Week scheduled for May 10 through 14. This training will fulfill your company's training requirements and, more importantly, will assist you in immediately implementing this procedure within your facility. At the same time, the Chrysler Group will be moving to make LPA a mandate for suppliers to its powertrain plants in the third quarter of 2004. The Chrysler Group is in the process of finalizing implementation of LPA in all of its powertrain plants. It has proved to be a valuable tool to improve first-time through capability which ensures quality to the customer. The Layered Process Audit is a system to ensure that we build the best quality product together. I appreciate your company's, and your personal, support on this matter. Sincerely,

Supplier Interface LPA Compliance Verification Compliance Form Summary of training, implementation, and LPA results/ compliance One form per supplier location to be submitted monthly to SQ Specialist Layered Process Audit Compliance Report Supplier Name: Report DCX SQ Specialist Supplier Code City State/ Prov. Country Month Year Training & Implementation Summary Staff/ Top Management: Mid-Level Management: Line Supervisors: LPA Trained LPA Implemented Countermeasure Comments Audit Sheets Developed LPA System & Infrastructure Established Number/ % of DCX Lines utilizing LPA Countermeasure Comments Monthly Compliance Summary Line / Operation / Number / Name / Description Number of items to be audited Number of items audited LPA 1 LPA 2 LPA 3 LPA 4 LPA 5 LPA 6 LPA 7 LPA 8 LPA 9 DCX TOTAL % of audits accomplished No. of items in compliance %of items in compliance Frequency: Top Management (1/ week) Mid-Level Management Line Supervisors (1/ shift) Error Proofing (1/day) Green Yellow Red In Compliance In Progress Not Started Submitted By: Approved By: Date Submitted:

Layered Process Audit Proven successful internally Expanding Collaboration to our Supply base Not asking Suppliers to do something we are not Training available to all Chrysler suppliers Low investment significant quality return

32 The Fifth Dimension: The Supplier OEM Interface DaimlerChrysler Corporation Scott R. Garberding Vice President Supplier Quality