Collaboration: Potential and...
Transcript of Collaboration: Potential and...
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Collaboration: Potential and PitfallsCollaboration: Potential and Pitfalls
Monique OxenderGlobal Manager
Supply Chain Sustainability, Ford Motor CompanyAIAG Sustainability Loan
J. Scot SHARLANDExecutive Director
Automotive Industry Action Group
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Stereo
Electronics
Oil
Textiles
• The automotive supply chain is complex and includesglobal supply chains from many other industries.
OEM
Charcoal
Steel
Frame Seats Paint
Chemicals
Windows
Pig Iron
Complex Automotive Supply Chain
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Ford FiestaA Small Sampling of Suppliers
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TextileLeather
Seat Foam
Wiring
ElectronicControls
Fasteners(Plastic &Steel)
SteelFrames &Tracks
Complexity in the Automotive Supply Chain:Breakdown for a Seating Assembly
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Innovation and Balance
+ Supply Chain+ Supply Chain@ factory@ factory--levellevel
+ Supply Chain @+ Supply Chain @corporate levelcorporate level
+ Expansion of Ford Approach through+ Expansion of Ford Approach throughan Industry foruman Industry forum
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AIAG Global Working Conditions Milestones
5
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AIAG: at-a-glance
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• Globally recognized trade association founded in 1982
• 800 member companies– $850 Billion in annual turnover
– “Touch” 1 out of every 5 Americans
• 30 full-time staff
• Senior Purchasing Executives ‘on loan’ from Chrysler LLC, Ford and GM
• Over 650 Industry ‘volunteers’ providing subject matter expertise
• Headquartered in Southfield, Michigan
• 5 Primary Revenue Streams = Training, Publications, Events, Grants & Membership
AIAG: at-a-glance
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Board of Directors
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• AIAG provides industry stakeholders a legal and professionalinfrastructure that allows them to work collaboratively– Offices / Conference rooms
– Meeting Facilitation
– Project Management
– Virtual communication tools
– Legal oversight
• AIAG publishes, prints and distributes; whitepapers, guidelines, bestpractice summaries and standards, developed by the industryvolunteers, to automotive and other industry verticals
• AIAG provides education, training & events in support of theguidelines, best practices and standards developed by the industryvolunteers
AIAG Responsibilities
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• AIAG provides 7/24 public information & access to industryguidelines, best practices and standards via it’s website(www.aiag.org)
• AIAG provides professional certifications (company/individual) tomany of the standards it publishes
• AIAG maintains an ongoing relationship/engagement with othernational industry & technical associations and works to harmonizebusiness practices & standards to effect a seamless delivery ofproducts and data throughout the global supply chain
AIAG Responsibilities
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CO•OPETITION : Creating Supply Chain Value
Competition
Co-Opetition
Cooperation
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• Traditional View: Competing technologies and systems create redundancyand waste in the supply chain, forcing reaction of OEMs and supply chaincompanies to strive for industry commonization via Co•Opetition @ AIAG.
Customer-SpecificLegacy
Systems
Customer-SpecificLegacy
Systems
OEM B
Supplier 1
ServiceProviders
OEM A
Supplier 2
IndustryCommon
CostReduction
Co•Opetition@ AIAG
Value Stream Mapping for the Automotive Supply Chain
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• Advanced State: Early identification of emerging issues with leadership-sanctioned Co•Opetition at AIAG drives industry commonization. Resultingcost savings allow supply chain companies to compete on a level playingfield without non-value company specific legacy investments.
Co•Opetition@ AIAG
OEM B
Supplier 1
ServiceProvider
OEM A
Supplier 2
LeanCompetition
CostSavings
Threat Matrix
Identify Issues
IndustryCommon
Value Stream Mapping for the Automotive Supply Chain
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• CR Enterprise DNA…. unique to each company and deeply personal– CR programs & supplier lists viewed as IP / competitive advantage
– Industry initiatives supplement individual company programs
– Run Silent, Run Deep: The Gary Hart Lesson
– Was Franklin right…Is it really better to hang together vs. hang separately ??
– Competition for discretionary spending funding …if any?
• ‘Herding the Cats’ to harmonize an industry voice / vocabulary for the extendedglobal supply chain
– Leadership vs. Management : Which OEM provides the spark?
– Regional political ‘priorities du jour’ & legal compliance
– ‘green-washing’ & scope creep
• Inventory current Industry efforts
• Benchmark other verticals – Adapt/adopt best practices
• Leverage Government engagement, resources & investment
• Sanity –Check with key 3rd Party stakeholders
AIAG Corporate Responsibility Initiative:The Challenge of CO•OPETITION
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• Global Sourcing : ‘walking the talk’…– OEM internal alignment: regional autonomy
• Corporate singularity of purpose & message
– Tier-1 suppliers Corporate ‘buy-in’
• Provide access & information to lower tier suppliers…consistent with OEMmessaging
– Lower tier supplier business acumen/knowledge
– Local Industry Association engagement
– Perverse government ‘commercial development’ incentives in emergingcountries
– “Bottom Line” pressure / performance
• ‘Channeling’ the late great Johnnie Cochran :’We can’t enforce, We can De-Source’…but will we?
AIAG Corporate Responsibility Initiative:The Challenge of CO•OPETITION
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• Primary Objective: Provide education and information regarding the basictenants of Corporate Responsibility (CR) to the extended North American supplychain.
• Secondary Objective: Reduce member effort & investment and/or redundanciesacross industry associations working on CR initiatives.
• 2010 Activity
– MOU with Electronics and Telecommunications Industry Groups: Executed11/2009
– EU OEM CSR Outreach and Collaboration
– Activity and Engagement Survey
– Gap Analysis and Needs Assessment
– Corporate Responsibility Symposium: November 2010
Corporate Responsibility Advisory Committee
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Co-Sponsored Factory Training
• Mexico and China Training launched
• Turkey: Training launch May 2010
– Expanded content to include environmental responsibility
• Brazil: Training launch September 2010
– Potential partnerships and grant funding to expand and enhance impact
• India: Management Event July 2010, Training launch November 2010
– Tiered approach to gain buy-in, support, success
Corporate Engagement: Classroom and e-Learning
• Training resource for supply chain professionals
– Internal to OEMs
– Tier 1+ suppliers
• Roll-out to Tier 1 suppliers by OEMs March 2010
Global Working Conditions Program
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Mexico494 Tier 1 Suppliers Trained
Training Cascaded to44,833 Peopleat Tier 1 Level
Expectations Cascaded to5,628 Tier 2 Suppliers
ChinaChina461461 Tier 1 Suppliers TrainedTier 1 Suppliers Trained
Training Cascaded toTraining Cascaded to21,799 People21,799 Peopleatat Tier 1Tier 1 LevelLevel
Expectations Cascaded toExpectations Cascaded to2,1822,182 Tier 2 SuppliersTier 2 Suppliers
Impact to Date: Site-level Training
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• Purpose
– Determine unified OEM expectations for estimating, collecting, and reportingmanufacturing facility-based GHG data
– Define common process, methodology, tools, and formats for estimatingGHGs from OEM and manufacturing supply base operations and roll-up datavia an industry-wide process.
• Opportunities/Deliverables
• Where this is not an established process at any one OEM, there is atremendous opportunity and benefit to a common process that isefficient for the entire industry and has appropriate data QA
• Harmonized Data
• Training that assists suppliers as to what data will be needed forautomotive industry rollup hands-on, walk through the tools andprotocols
GHG Emissions Workgroup
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• 2010 Actions• Unify OEM expectations for collecting GHG data
• Build common processes, methodologies, tools, and formats
• Engage other Association (i.e., VDA, JAMA) to create moreglobal expectations for estimating, collecting, and reportingfacility-based GHG data
• Develop training on GHG that covers:– Regulatory and customer requirements
– Emission estimation data needs and process and the agreed uponmethodology and protocol
GHG Emissions Workgroup
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OEMs
Tier 1 Factories
Sub-Tiers
Tier 1 HQ
Direct CorporateEngagement w/Strategic Suppliers
Site-LevelTrainings
Common Site-Level Trainings
3rd PartyAssessments
CorporateEngagement viaCommon e-Learning
Cross-Industry and Public Sector Collaboration
Impact Across the Supply Chain