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Basic Data
77% of all US companies are looking at sourcing Internationally to take advantage of lower costs and increased production capacity 44% of those looking at International sourcing are planning on spending up to 25% of their supply chain budget on International sourcing 19% plan on spending from 50% to 100%
Price is not the only contributor to supply chain cost Global costs are distributed differently than domestic expenses Managing the global supply chain requires a more technical approach
With no end in sight of this trend, relationship and communication with the supply chain is vital for program success
How do we proceed?
Replication
Engagement
SCM
Demonstration
Collaboration
Number of counter-measures
Production/Replication
Number of counter-measures
time minimized
Strategy Engagement Collaboration
0
Production/Replication
Level 1 Risk APQP/Quality System Mentoring Level 5 PPAP / PSO Level 2 Risk Limited APQP/Quality System Mentoring Level 4 PPAP with High Scrutiny Level 3 Risk Level 4 PPAP with Med Scrutiny Level 4 Risk Level 4 PPAP with Low Scrutiny
Design Risk
Supplier Risk
QMS Capability
Medium Performance Item, Severity ranking (57) Moderate Appearance Item, Moderate Customer Visibility
none
Basic Function
Interface Complexity
High
Technology Complexity Technology Experience Heavy Automation, High Scrap Rates, High Maintenance New Technology with little Industry Experience
Medium
Some Automation, Moderate Scrap Rates, Moderate Maintenance Industry Established Technology; New to your business Materials in use in Industry; New to your business
Low
Low Automation, Low Scrap rates, Typical Maintenance Industry Established Technology w/ business Experience Materials in use in Industry w/ business Experience
Materials Experience
Risk Severity
Steering sub-system
Brake Sub-system
Design Risk
Front Suspension
Rear Suspension
Seat sub-system
Instruments
Carborator
Fuel Tank
Electrical
Exhaust
Wheels
Engine
Pedals
Frame
Direction of Improv ement Safety/Regulatory 9 Performance Cri tical Appearance Basic Functional Interface Compl exity Robustness/Noi se Sensi tivi ty Design Maturity T echnology Compl exity T echnology Experience Materials Experience
Technology / Materials
F H F F H
F F F F F H
5 3 1 9 5 3 9 5 3
F F
H
H G
H
G F
F
H H
G
F G
H
G F
F
F H
H
H G
F
H H
G
H H
G
G F
G
H H
H
H G
G
H G
G
Design Risk
F H H
267
F H F
245
H F G
237
F H H
231
F H H
215
H F H
207
G G F
191
F G F
187
H G H
167
H H H
141
G H G
129
G H G
123
G F G
119
G F G
107
Weighted Importance
Relativ e Importance
Supplier Risk
Medium
Delivery Performance 80-90%
Low
Delivery Performance 90100%
Defect PPM
PPM >100
PPM 25 - 100
PPM <25
Responsiveness
No established QMS
Resources
Risk Severity
Frames Incorporated
Connector Electrical
Pedals Supplier
XYZ Steering
Springs to go
Seats are Us
ABC Wheels
Lees Brakes
Instruments
Shocks Inc.
ABC Incorporated
Exhaust Supplier
Direction of Improv ement Delivery Defect PPM CAR Response QMS Use of Qual ity T ool s Established Facili ty Resources 5 5 3 5 5 3 3
Carborator
Design Risk
F F H H F F
201
F F H G H F
173
H G F F H G
165
H H F F H H
147
H H F H G H
111
H G F H H H
111
H F G G F H
103
G H F H H H
97
H H G F G G
95
G H G G F F
83
G H H H H H
67
G G G G H F
59
H G H H G G
59
G G G G H H
41
Weighted Importance
Relativ e Importance
System Capability
Supplier Risk
Risk Assessment
Level 1 Risk
Level 2 Risk Level 3 Risk Level 4 Risk
5
High Risk
Supplier Risk
Cost
Price Expense
Logistics
Time to Market Delivery Performance
These issues can be managed effectively, but only when planned strategically and tactically executed with additional care
Experiences of those companies who use international suppliers indicate a 3X increase in communication is necessary to compensate for distance
Must include this extra expense in overall cost estimates
Cultural Exchange Activities Investigate Local Customs Well written requirements cascaded to specifications
Technical Tools of APQP QFD
MFG Planning
Production Planning
Critical Requirements
34
Engagement
Engaging the right supplier at the right time
Desired benefits of collaboration
There are multiple levels of engagement which require different resourcing levels These levels can be adjusted to achieve best value and stay within budget vs. risk Elements of Engagement
Communication and Relationship Building Program and Project Management Planning Supply Chain Risk Assessment APQP (Requirements and Specifications) Concept Designs and Processes Refined Negotiation of Price and Cost
Communication in Engagement
One basic rule exists in engagement that must be followed regardless of topic:
In Communication, it is the deliverer (purchaser) who bears all of the responsibility if the receiver (supplier) does not understand or misinterprets the message
This one point is the primary reason for poor quality / not to specification, and total higher costs
Communication in Engagement
Determine the level of and types of communication based on risks and develop a written plan for:
Points of communication When the communication must occur
according to process
Types of communication
technical data vs. non-quantifiable concepts
Info.
5 4 3 2 1 1 2 3 4 5
Design Risk
-Cause
-Controls
Standard Process
Failure Mode/ Cause -Heavy Fab Supply Chain APQP Mentoring -Special Process (APQP) -Standard process (APQP) On-going Performance Monitoring PPAP -Level?
QMS Mentoring
Relativ e Importance
Feedback Loop
Phase 1
1.1 VOC / CCRs 1.1.1 Market Research ( Regulations) 0.6 Understand Requirements
1.2 Business Plan/Market Strategy 1.3 Product Process Benchmark Data reviewed
REQUIREMENTS ASSESSMENT
Phase 2
ROBUSTNESS
DFA/DFM
2.4 DVP&R
Phase 3
Capability Calculations
Connectivity and data transfer Develop a technical product assurance plan Add resources (3 X normal) for distance Avoid sourcing proprietary technology
Remember todays partners are tomorrows competitors
Collaboration
Collaboration permits the engaged parties the opportunity to design the product and process simultaneously Considerations in CPPD include cost, timing, ease of assembly and manufacturing and reliability planning Elements of Collaboration include but are not limited to:
Design Reviews Project Management Technical Risk Assessments and Mitigation Test Planning Verification and Validation Collaborative Product and Process Design (CPPD) Design for Assembly and Manufacturing Cost Optimization
Collaboration
Collaboration is the concurrent communication process of developing a product and process simultaneously CPPD is best deployed in:
Design for Six Sigma (specific high value activities) Product Development Processes (overall delivery activities)
Failure is to avoided, not experienced Risk is uncovered by utilizing linked reliability and design tools combined with discipline
Collaboration
Collaboration must be applied in order to assure the process capability and design performance are matched with the lowest cost The value equation must be applied during collaboration
Any change in quality (design / process ) must be compared to cost and delivery; change in cost compared to quality and delivery; change in delivery compared to cost and quality
TIME
3.0 Process Design & Development 4.0 Product & Process Validation
2.2 DFA/ M
DF(x)
DVP&R
3.6 PFMEA
Preliminary Process Methods agreed upon and Capability (Impact of Variation) assessed
Demonstration
New Products are often a challenge for Process Applications
This is magnified if the process is on another continent
The primary purpose of Demonstration is to increase confidence Achieve desired Reliability through Technical Evidence
Created prior to ever running one piece when possible
Demonstration
Demonstration and Validation activities focus on the evidence that risk is reduced in design, technology, cost, manufacturing and assembly Evidence is first gathered with a Prevention (virtual and proactive) focus and then Detection (physical and measured) Elements of Demonstration are:
Readiness Reviews Computer Aided Engineering and Simulation Statistical Studies and Capability Control Strategy Value Engineering Value Stream Mapping Process Failure Mode and Effects Analysis Measurement Systems Analysis Problem Resolution Process PPAP Submission
Conformance of Product
Process Capability
Cp & Cpk > 1.67 Compare Cp (Pp) & Cpk (Ppk) for Targeting Implication 6 Sigma Strategy
Production Validation
Ensure no degradation of design intent has occurred due to process inputs Evaluation of Process Affect on Product Performance
Prior to this point we have measured risk as a substitute for quality, cost and delivery
The Demonstration phase gave us our first actual data of performance
PPAP or First Article
The use of Eight Disciplines of Problem Solving (8D) or other methods are used to find root causes and solutions as soon as possible
Replication
Taking what you have learned and applying it has the benefit of not having to relearn Legacy and Replication keeps moves the Supply Chain forward and increases velocity for the next iteration Failure and Continuous Process Improvement must also be addressed in the Replication phase to assure that we do not repeat them Elements of Replication:
Warranty Return CPI / Six Sigma Rapid Improvement Processes (Lean) Variation Reduction Delivery Performance Improvement
FMA Example
Data Source(s) of Past Failure Information
Recall or Campaign Warranty Past CPI Issues Mfg and Assy Test Data
HVC-CDIM
HVC-RWA
HVC-RWA
HVC-RWA
ITEM No.
CDIM-CPI
1 2 3 4 5 6 7 8 9 10 11
X X X X X X X X X X X
PERG
SIMS
SIMS
RDS
QIS
5 1 1 42 5 1 21 1 6 60 10
Ring Design, Cracked, Cross Hatched, Oversized, Too Smooth, TooAdd Vision System STA-S010 9 Rough 5 10
10Ring Design, Operator Error, Supplier, Material Handling, Transport Vision System STA-S010 Add
10
Operator Error
Product Components
Boundary Diagram
Failure Modes
PDiagram
Historical Failures
Design FMEA
Priority of Analysis
FMA Outputs
Data Source(s) of Past Failure Information
Recall or Campaign Test Data Supplier
HVC-CDIM
HVC-RWA
ITEM No.
CDIM-CPI
1 2 3 4 5 6 7
X X X X X X X
Q-NET
PERG
RDS
QIS
5 1 1 42 5 1 21
9 5 10
10
Severity
Excessive back pressure
Failure Modes
Operating Conditions
Severity / Impact
Requirements / Functions
Seals combustion gas from crankcase Prevents oil transport in combustion chamber Conform to piston ring groove Conform to the cylinder liner Accommodate ring thermal expansion and bore size variation Provide clearance to ring groove Provide acceptable wear life Accommodate expansion for assembly
Failure Mode
Fails to seal gas due to ring breakage Fails to seal combustion gas Oil in combustion chamber Fails to conform to piston ring groove Fails to conform to cylinder liner Fails to accommodate ring thermal expansion and bore size variation Fails to provide clearance to ring groove Wear life not acceptable Fails to accommodate expansion for assembly
9 9 9 9 9 9 9 9 9
3 1 1
1 2 1 2 2 2 2 3 2 2 2 2 4 3 1 2 1 1
1 1 1
Top Ring
Bottom Support
Engine Braking
Piston Speed
P-Diagram
Piston Acceleration
Cylinder Pressure
Cold Starts
Summary
Business Process
Demonstration
Measurement Systems Capability Process Validation Control Plan Strategy PPAP / First Article
Replication
Failure Mode Avoidance
Replication
Engagement
SCM
Demonstration
Collaboration