Logistic

&
Administration
Management

Program
Human Maintenance Managemen
Resource Engineering Logistics
t

Global Logistics Flawless Launch Launch New Warehousing &

Capability to Execution Programs @ Right Material Planning
support Global Reduce Spills
Quality, Right Time, Materials Planning
Reduce Warranty
Footprint Right Cost Receiving & RMS
Parts at Station PPAP on Time
FGS & Shipping
On Time
Logistics Cost

Priorities Remain the Same Execution must improve

Global Purchasing and Supply Chain

1
 Expectations of Model Suppliers

Superior Superior
Superior
Culture + Organizational
Capability + Competitive
Advantage

Can Do Attitude Bring Best-in-Class Product Focus

Designs
Obsessed with Quality Performance
Continuous Breakthrough
Technology Flawless Launches
Improvement and Program
Saying No the Speed - Go Fast Execution
Right Way Global Presence Sustainable Cost
Strive for Stretch Advantage
Targets Best-in-Class Value

Sustainable Contribution and Value

Global Purchasing and Supply Chain

2
16 Steps - Supplier Quality Improvement Process
GLOBAL SOURCING

IMPROVEMENT MEETING

QUALITY WORKSHOP

LEVEL II CONTROLLED SHIPPING

LEVEL I CONTROLLED SHIPPING

SUPPLIER QUALITY PROCESSES AND MEASURES (GP-5)

PERFORMANCE MONITORING

CONTINUOUS IMPROVEMENT (GP-8)

TIME LINE
EARLY PRODUCTION LIFE OF PART
CONTAINMENT (GP-12)
RUN AT RATE (GP-9)

PRODUCTION PART
APPROVAL (PPAP)
PRE-PROTOTYPE & PROTOTYPE
SAMPLE APPROVAL (GP-11)
PRE PRODUCTION MTG.

ADVANCED QUALITY PLANNING

SOURCING DECISION
POTENTIAL SUPPLIER
ASSESSMENT START
OF PRODUCTION
Global Purchasing and Supply Chain

3
16 Steps - Supplier Quality Improvement Process
SUPPLIER QUALITY
IMPROVEMENT PROCESS GLOBAL SOURCING
POTENTIAL SUPPLIER
IMPROVEMENT MEETING
ASSESSMENT
QUALITY WORKSHOP

DEFINITION: LEVEL II CONTROLLED SHIPPING

On-site evaluation of a Suppliers 'Ability LEVEL I CONTROLLED SHIPPING
to meet minimum Quality Systems Requirements.
SUPPLIER QUALITY PROCESSES AND MEASURES (GP-5)

PERFORMANCE MONITORING

TIME LINE CONTINUOUS IMPROVEMENT (GP-8)

EARLY PRODUCTION
CONTAINMENT (GP-12) PURPOSE: LIFE OF PART
RUN AT RATE (GP-9) A one day assessment to verify whether a
PRODUCTION PART
potential new supplier has the capability to
APPROVAL (PPAP) meet the minimum requirements necessary to
PRE-PROTOTYPE & PROTOTYPE do business with General Motors.
SAMPLE APPROVAL (GP-11)
PRE PRODUCTION MTG.
PROCESS:
Use Potential Supplier Assessment (PSA)
ADVANCED QUALITY PLANNING documents, based on QS-9000.
Must be completed prior to sourcing
SOURCING DECISION decision.
POTENTIAL SUPPLIER
ASSESSMENT

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4
16 Steps - Supplier Quality Improvement Process
SUPPLIER QUALITY
IMPROVEMENT PROCESS
GLOBAL SOURCING

SOURCING DECISION IMPROVEMENT MEETING

QUALITY WORKSHOP

DEFINITION: LEVEL II CONTROLLED SHIPPING

Sourcing Committee approval of a
LEVEL I CONTROLLED SHIPPING
recommended source.
SUPPLIER QUALITY PROCESSES AND MEASURES (GP-5)

PERFORMANCE MONITORING

TIME LINE CONTINUOUS IMPROVEMENT (GP-8)

EARLY PRODUCTION
CONTAINMENT (GP-12)
RUN AT RATE (GP-9)
PRODUCTION PART
APPROVAL (PPAP)
PRE-PROTOTYPE & PROTOTYPE
SAMPLE APPROVAL (GP-11)
PRE PRODUCTION MTG.
ADVANCED QUALITY PLANNING
SOURCING DECISION
POTENTIAL SUPPLIER
ASSESSMENT
START
OF PRODUCTION
LIFE OF PART
PURPOSE:
Identify the competitive source in Quality,
Service, Technology and Price for supply of a
product to General Motors
PROCESS:
Review Recommendation
Evaluate sourcing candidate
Approve/deny recommendation
Approve corrective action plans,
if required
Sign sourcing documents
Global Purchasing and Supply Chain
5
16 Steps - Supplier Quality Improvement Process
SUPPLIER QUALITY
IMPROVEMENT PROCESS GLOBAL SOURCING
ADVANCED PRODUCT
IMPROVEMENT MEETING
QUALITY PLANNING &
CONTROL PLAN QUALITY WORKSHOP

LEVEL II CONTROLLED SHIPPING

DEFINITION:
LEVEL I CONTROLLED SHIPPING
A formal structured method of defining and
establishing the steps necessary to assure SUPPLIER QUALITY PROCESSES AND MEASURES (GP-5)
that a product satisfies the customer PERFORMANCE MONITORING
requirement.
TIME LINE CONTINUOUS IMPROVEMENT (GP-8)
EARLY PRODUCTION
CONTAINMENT (GP-12) PURPOSE: LIFE OF PART
RUN AT RATE (GP-9) Ensure that General Motors Requirements
are met.
PRODUCTION PART
APPROVAL (PPAP) PROCESS:
PRE-PROTOTYPE & PROTOTYPE This process requires a supplier to develop
SAMPLE APPROVAL (GP-11) and implement a product quality plan that :
PRE PRODUCTION MTG. Directs resources that satisfies the
customer requirements.
ADVANCED QUALITY PLANNING Promotes early identification of required
changes
SOURCING DECISION Assures all required steps are completed

POTENTIAL SUPPLIER on time

ASSESSMENT Facilitates communication
Provides a quality product on time at a
START competitiveGlobal
cost Purchasing and Supply Chain
OF PRODUCTION
6
16 Steps - Supplier Quality Improvement Process
SUPPLIER QUALITY
IMPROVEMENT PROCESS
GLOBAL SOURCING

PRE-PRODUCTION MEETING IMPROVEMENT MEETING

QUALITY WORKSHOP

DEFINITION: LEVEL II CONTROLLED SHIPPING

Communication with supplier to establish part
LEVEL I CONTROLLED SHIPPING
qualification and other customer requirements.
SUPPLIER QUALITY PROCESSES AND MEASURES (GP-5)

PERFORMANCE MONITORING

TIME LINE CONTINUOUS IMPROVEMENT (GP-8)

EARLY PRODUCTION
LIFE OF PART
CONTAINMENT (GP-12) PURPOSE:
RUN AT RATE (GP-9) To assure that proper communication of all
PRODUCTION PART requirements occurs between the supplier and
APPROVAL (PPAP)
PRE-PROTOTYPE & PROTOTYPE the sourcing responsible division.
SAMPLE APPROVAL (GP-11)
PRE PRODUCTION MTG. PROCESS:
ADVANCED QUALITY PLANNING Team meetings to review and agree upon
requirements within:
SOURCING DECISION
Quality
POTENTIAL SUPPLIER
ASSESSMENT Capability
Timing

START Global Purchasing and Supply Chain

OF PRODUCTION
7
16 Steps - Supplier Quality Improvement Process
SUPPLIER QUALITY GLOBAL SOURCING
IMPROVEMENT PROCESS

PRE-PROTOTYPE &
IMPROVEMENT MEETING
PROTOTYPE SAMPLE
APPROVAL (GP-11) QUALITY WORKSHOP

LEVEL II CONTROLLED SHIPPING

DEFINITION:
Common procedure specifying LEVEL I CONTROLLED SHIPPING

requirements for Pre-prototype SUPPLIER QUALITY PROCESSES AND MEASURES (GP-5)

and Prototype Parts.
PERFORMANCE MONITORING

TIME LINE CONTINUOUS IMPROVEMENT (GP-8)

EARLY PRODUCTION
LIFE OF PART
CONTAINMENT (GP-12) PURPOSE:
RUN AT RATE (GP-9) Provides uniform minimum requirements for
PRODUCTION PART pre-prototype and prototype material and
APPROVAL (PPAP) documentation.
PRE-PROTOTYPE & PROTOTYPE Assists in identifying and correcting part
SAMPLE APPROVAL (GP-11) problems to minimize the impact of part
PRE PRODUCTION MTG. variation upon design evaluation,
manufacturing and assembly
ADVANCED QUALITY PLANNING
PROCESS:
SOURCING DECISION Reporting compliance of Component to Level
POTENTIAL SUPPLIER Requested with respect to General Motors
ASSESSMENT
Requirements.
START Global Purchasing and Supply Chain
OF PRODUCTION
8
16 Steps - Supplier Quality Improvement Process
SUPPLIER QUALITY GLOBAL SOURCING
IMPROVEMENT PROCESS

PRODUCTION PART IMPROVEMENT MEETING

APPROVAL (PPAP) QUALITY WORKSHOP

LEVEL II CONTROLLED SHIPPING

DEFINITION: LEVEL I CONTROLLED SHIPPING
A common industry procedure
reporting component as meeting SUPPLIER QUALITY PROCESSES AND MEASURES (GP-5)
General Motors Requirement.
PERFORMANCE MONITORING

TIME LINE CONTINUOUS IMPROVEMENT (GP-8)

EARLY PRODUCTION
LIFE OF PART
CONTAINMENT (GP-12) PURPOSE:
RUN AT RATE (GP-9) To verify that a supplier's production
PRODUCTION PART process has the potential to produce
APPROVAL (PPAP) product that meets customer
PRE-PROTOTYPE & PROTOTYPE requirements.
SAMPLE APPROVAL (GP-11)
PRE PRODUCTION MTG.
PROCESS:
ADVANCED QUALITY PLANNING Supplier fulfills requirements as identified
SOURCING DECISION
in the Production Part Approval Process
POTENTIAL SUPPLIER
(PPAP Manual, AIAG Current Edition).
ASSESSMENT

START Global Purchasing and Supply Chain

OF PRODUCTION
9
 16 Steps - Supplier Quality Improvement Process
SUPPLIER QUALITY GLOBAL SOURCING
IMPROVEMENT PROCESS

IMPROVEMENT MEETING
RUN @ RATE (GP-9)
QUALITY WORKSHOP

LEVEL II CONTROLLED SHIPPING

DEFINITION:
LEVEL I CONTROLLED SHIPPING
Physical verification that the production
process is capable of producing quality SUPPLIER QUALITY PROCESSES AND MEASURES (GP-5)
products at quoted production rates.
PERFORMANCE MONITORING

TIME LINE CONTINUOUS IMPROVEMENT (GP-8)

EARLY PRODUCTION
CONTAINMENT (GP-12)
RUN AT RATE (GP-9)
PRODUCTION PART
APPROVAL (PPAP)
PRE-PROTOTYPE & PROTOTYPE
SAMPLE APPROVAL (GP-11)
PRE PRODUCTION MTG.
ADVANCED QUALITY PLANNING
SOURCING DECISION
POTENTIAL SUPPLIER
ASSESSMENT
PURPOSE: LIFE OF PART
To reduce risk of failure during start up and
acceleration by performing a production Run @
Rate beforehand.
PROCESS:
Conduct risk assessment.
Determine type of Run @ Rate required:
Supplier monitored
Customer monitored
Notify supplier to schedule the Run @ Rate.
Complete Run @ Rate.
Follow up and make required improvements.

START Global Purchasing and Supply Chain

OF PRODUCTION
10
 16 Steps - Supplier Quality Improvement Process
SUPPLIER QUALITY GLOBAL SOURCING
IMPROVEMENT PROCESS

EARLY PRODUCTION CONTAINMENT IMPROVEMENT MEETING

(GP-12)
QUALITY WORKSHOP

LEVEL II CONTROLLED SHIPPING

DEFINITION:
A Process to ensure that start up and early LEVEL I CONTROLLED SHIPPING
production problems do not affect Customer . SUPPLIER QUALITY PROCESSES AND MEASURES (GP-5)

PERFORMANCE MONITORING

TIME LINE CONTINUOUS IMPROVEMENT (GP-8)

EARLY PRODUCTION LIFE OF PART

CONTAINMENT (GP-12) PURPOSE:
Prevent Early Production Quality
RUN AT RATE (GP-9)
PRODUCTION PART
Problems affecting Customer.
APPROVAL (PPAP)
PRE-PROTOTYPE & PROTOTYPE PROCESS:
SAMPLE APPROVAL (GP-11)
PRE PRODUCTION MTG.
Supplier develops GP-12 Pre-launch
control plan as a part of Advanced
ADVANCED QUALITY PLANNING
Quality Planning. Plan is kept in place
SOURCING DECISION until exit criteria is met.
POTENTIAL SUPPLIER
ASSESSMENT

START Global Purchasing and Supply Chain

OF PRODUCTION
11
16 Steps - Supplier Quality Improvement Process
SUPPLIER QUALITY
IMPROVEMENT PROCESS GLOBAL SOURCING
CONTINUOUS IMPROVEMENT
IMPROVEMENT MEETING
(GP-8)
QUALITY WORKSHOP

DEFINITION: LEVEL II CONTROLLED SHIPPING

Refine and Enhance Product and
LEVEL I CONTROLLED SHIPPING
Process using Structured Procedures.
SUPPLIER QUALITY PROCESSES AND MEASURES (GP-5)

PERFORMANCE MONITORING

TIME LINE CONTINUOUS IMPROVEMENT (GP-8)

EARLY PRODUCTION
LIFE OF PART
CONTAINMENT (GP-12) PURPOSE:
RUN AT RATE (GP-9) To obtain and maintain worlds best Quality ,
PRODUCTION PART Service , Technology and Price.
APPROVAL (PPAP)
PRE-PROTOTYPE & PROTOTYPE
SAMPLE APPROVAL (GP-11) PROCESS:
PRE PRODUCTION MTG. Using Structured Procedure ( GP-8) or similar
ADVANCED QUALITY PLANNING to Continually Improve.
SOURCING DECISION
POTENTIAL SUPPLIER
ASSESSMENT

START Global Purchasing and Supply Chain

OF PRODUCTION
12
 16 Steps - Supplier Quality Improvement Process
SUPPLIER QUALITY
IMPROVEMENT PROCESS GLOBAL SOURCING
PERFORMANCE
MONITORING IMPROVEMENT MEETING

SUPPLIER QUALITY QUALITY WORKSHOP

PROCESS AND MEASURES
LEVEL II CONTROLLED SHIPPING

DEFINITION: LEVEL I CONTROLLED SHIPPING

Measure performance and provide SUPPLIER QUALITY PROCESSES AND MEASURES (GP-5)
feedback to suppliers.
Process to drive problem resolution. PERFORMANCE MONITORING

TIME LINE CONTINUOUS IMPROVEMENT (GP-8)

EARLY PRODUCTION
CONTAINMENT (GP-12) PURPOSE: LIFE OF PART
RUN AT RATE (GP-9) To provide performance feedback to drive
quality improvement.
PRODUCTION PART
APPROVAL (PPAP) Resolve Quality Problems
PRE-PROTOTYPE & PROTOTYPE PROCESS:
SAMPLE APPROVAL (GP-11) Monitor ongoing supplier quality performance
PRE PRODUCTION MTG.
and resolve quality issues using data as
follows:
ADVANCED QUALITY PLANNING Major Disruptions
-Spills
SOURCING DECISION
-Downtime incidents
POTENTIAL SUPPLIER -Stockouts
ASSESSMENT
Quantity of PR/Rs (Problem Report and
Resolution)
PPM ( Defective
START Global Purchasing
Parts and Supply Chain
Per Million)

OF PRODUCTION
13
 16 Steps - Supplier Quality Improvement Process
SUPPLIER QUALITY
IMPROVEMENT PROCESS GLOBAL SOURCING

CONTROLLED SHIPPING IMPROVEMENT MEETING

QUALITY WORKSHOP

DEFINITION: LEVEL II CONTROLLED SHIPPING

A containment process for quality problems. LEVEL I CONTROLLED SHIPPING
SUPPLIER QUALITY PROCESSES AND MEASURES (GP-5)

PERFORMANCE MONITORING

TIME LINE CONTINUOUS IMPROVEMENT (GP-8)

EARLY PRODUCTION
CONTAINMENT (GP-12) PURPOSE: LIFE OF PART
RUN AT RATE (GP-9) To prevent non-conforming parts from
PRODUCTION PART reaching the customer.
APPROVAL (PPAP)
PRE-PROTOTYPE & PROTOTYPE Implement permanent corrective action in a
SAMPLE APPROVAL (GP-11) timely manner.
PRE PRODUCTION MTG. PROCESS:
Level 1: Containment of Problem by Supplier at
ADVANCED QUALITY PLANNING
Customer Initiative.
SOURCING DECISION Level 2: The containment process is under
POTENTIAL SUPPLIER customer control. Containment conducted at
ASSESSMENT
the supplier, customer or third party location.

START Global Purchasing and Supply Chain

OF PRODUCTION
14
 16 Steps - Supplier Quality Improvement Process
SUPPLIER QUALITY
IMPROVEMENT PROCESS GLOBAL SOURCING

QUALITY WORKSHOPS IMPROVEMENT MEETING

QUALITY WORKSHOP

DEFINITION: LEVEL II CONTROLLED SHIPPING

A workshop conducted at the supplier LEVEL I CONTROLLED SHIPPING
location to resolve specific quality
issues. SUPPLIER QUALITY PROCESSES AND MEASURES (GP-5)

PERFORMANCE MONITORING

TIME LINE CONTINUOUS IMPROVEMENT (GP-8)

EARLY PRODUCTION
LIFE OF PART
CONTAINMENT (GP-12) PURPOSE:
RUN AT RATE (GP-9) To solve problems, achieve immediate
PRODUCTION PART product quality improvements, and
APPROVAL (PPAP)
PRE-PROTOTYPE & PROTOTYPE initiate a system for control and
SAMPLE APPROVAL (GP-11) continuous improvement.
PRE PRODUCTION MTG. PROCESS:
ADVANCED QUALITY PLANNING Structured approach to problem
solving.
SOURCING DECISION
POTENTIAL SUPPLIER
ASSESSMENT

START Global Purchasing and Supply Chain

OF PRODUCTION
15
 16 Steps - Supplier Quality Improvement Process
SUPPLIER QUALITY GLOBAL SOURCING
IMPROVEMENT PROCESS

SUPPLIER QUALITY IMPROVEMENT MEETING

IMPROVEMENT MEETING
QUALITY WORKSHOP

LEVEL II CONTROLLED SHIPPING

DEFINITION:
A meeting with the supplier and LEVEL I CONTROLLED SHIPPING
Worldwide Purchasing Management
SUPPLIER QUALITY PROCESSES AND MEASURES (GP-5)
(Executive Director and Director Level).
PERFORMANCE MONITORING

TIME LINE CONTINUOUS IMPROVEMENT (GP-8)

EARLY PRODUCTION
LIFE OF PART
CONTAINMENT (GP-12) PURPOSE:
RUN AT RATE (GP-9) To prompt action to resolve chronic
PRODUCTION PART quality problems.
APPROVAL (PPAP)
PRE-PROTOTYPE & PROTOTYPE
SAMPLE APPROVAL (GP-11)
PROCESS:
PRE PRODUCTION MTG.
Structured meeting to promote understanding of
General Motors Quality Requirements.
ADVANCED QUALITY PLANNING

SOURCING DECISION
POTENTIAL SUPPLIER
ASSESSMENT

START Global Purchasing and Supply Chain

OF PRODUCTION
16
 16 Steps - Supplier Quality Improvement Process

SUPPLIER QUALITY
GLOBAL SOURCING
IMPROVEMENT PROCESS

IMPROVEMENT MEETING
GLOBAL SOURCING
QUALITY WORKSHOP

LEVEL II CONTROLLED SHIPPING

DEFINITION:
Global search for most competitive LEVEL I CONTROLLED SHIPPING
supplier in Quality, Service, and Price , SUPPLIER QUALITY PROCESSES AND MEASURES (GP-5)
Technology for a Product.
PERFORMANCE MONITORING

TIME LINE CONTINUOUS IMPROVEMENT (GP-8)

EARLY PRODUCTION
LIFE OF PART
CONTAINMENT (GP-12) PURPOSE:
RUN AT RATE (GP-9) To find the source with the Best Quality ,
PRODUCTION PART Service and Price.
APPROVAL (PPAP)
PRE-PROTOTYPE & PROTOTYPE
SAMPLE APPROVAL (GP-11) PROCESS:
PRE PRODUCTION MTG. Supplier Quality informs Purchasing of
decision to initiate Global Sourcing, due
ADVANCED QUALITY PLANNING
to unresolved quality issues.
SOURCING DECISION
POTENTIAL SUPPLIER
ASSESSMENT

START Global Purchasing and Supply Chain

OF PRODUCTION
17
Being the BEST!!!

Quality
Service
Technology
Price

Winning together !!!

Global Purchasing and Supply Chain

18