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Large number of firms approx. 5000 in number, but only 100 large scale manufacturers. The basic supplier chain consisted of 4 levels: the automakers and 3 tiers suppliers. Metalcraft and Delphi are Tier 1 suppliers. Biggest problem faced by industry was cost incurred on defectives parts. Automakers pushed the cost of quality defect down the Supply Chain to various suppliers.
Key Challenges
Achieving Zero Defects considering their existence at 84 locations and volume 1.0 million incoming components per plant per day Managing the cost with their suppliers Evaluating Potential Suppliers on many areas Ranking System Green, Yellow and Red
To have a system by which existing infrastructure and facilities are fully utilized Automakers pushed down the costs of quality defects to suppliers
To Evaluate and monitor Suppliers constantly, to improve quality and on-time delivery in supply chain, developed strict sourcing process and Supplier Scorecard
Sourcing Process
Product Design Engineer has to develop a design and engineering drawing based on the inputs received internally by keeping in control the cost, weight , performance targets etc and approving the sample with supplier. -Setting the physical and performance characteristics -Evaluation of above characteristics and the frequency of checking -Checking the incoming parts as per above, on arrival -Periodic checking, whether above is followed Above details sent to buyer, in order to get it sourced from suppliers. Buyers checking parameters : Landed cost, currency exchange, productivity history, capacity requirement, technical capability, delivery performance, internal discussion with product engineers.
Control Plan
Product Design Engineer was responsible for both Physical and Performance characteristic of the part. The Product Design Engineer and Plant Manufcaturing Engineer determined the process to check and evaluate the parts received. The control plan was prepared and approved before start of production. Once the production was started the QC dept. implemented the quality check as per Control plan and recorded the results Depending on value of the product the QC was prepared.
Quality focused on three key areas Overall quality - Aspects of quality and performance Launch quality rejects Vehicles were tested in the initial stages Defect rates Total scrap, defect parts replaced , to avoid repeat of issues
Timing Suppliers committed delivery dates Certification process PPAP & PSW Delivery To avoid penalty clause with buyers Work overtime if required Impact adding incremental costs
Bottlenecks
-Buyer and Supplier staff rotation/changing jobs -Multiple production facilities -Difference in infrastructure setup -Scorecard parameters and current performance of the product vary. Plant Quality Engineers -To ensure that parts received into plants are high quality and defect free -1.0 million parts received daily approximately from 200 suppliers Bottlenecks - Most of quality problems were discovered on arrival -Suppliers production process and transit to plant -Overall comment that scorecard doesnt have detailed data -Historical Perspective of problems & problem reported by other plants
Outputs : Consolidated Contact Information Quality and Delivery Results by Individual plants Sourcing Recommendation / Green
Plant Quality Engineer Sends QR Notification to Supplier via phone/VAX and enters into CMMS
Metalcraft Supplier scorecard calculates PPM, Timing, Delivery and Supplier Rating.
Management Team
Mark Muller Commodity Purchasing Agent
Ellie Smith Quality Supervisor Darrel Bond Product Engineer
THANK YOU