FORMATERVEZÉS AZ ELECTROLUX EURÓPAI · PDF file- Refrigerator / Chest Freezer...

Supplier Development János Takács

Electrolux Lehel – Managing Director

Electrolux - Regional Chief

Administrative Officer, CEE

2

Electrolux businesses

A true global company Cookers, Ovens & Hobs

Refrigerators & Freezers

Dishwashers

Laundry products

Vacuum cleaners &

Small appliances

Air Conditioners &

Dehumidifiers

Products for professional use

2012 data

Latin America

21%

Australia, New

Zeeland, Japan

6%

Middle East,

Africa, East Europe

10%

Southeast Asia,

China

4%

North America

31%

West Europe

28%

Our 2015 desired position

3

We will be the best appliance company in the world Our Vision

...our customers ...our shareholders

Net Sales of 150 BSEK

EBIT ≥ 7% & ROCE >25%

As measured by...

...our employees

Our framework

4

Profitable

growth

Innovation

− Product

− Brand

− Design

Operational

excellence

Vision We will be the best appliance company

as measured by our customers,

employees and shareholders.

People & Leadership

Our purpose

Values

Foundation

Passion for Innovation • Customer Obsession • Drive for Results

Respect & Diversity • Ethics & Integrity • Safety & sustainability

5

Slovakia

Ukraine

Romania Satu-Mare

Serbia

Slovenia

Croatia

Austria

280 km

Electrolux Business Sectors in Hungary

• Professional Kithcens & Launries Sales Europe

• Sales and Marketing Division

• Floor Care & Small Appliances Sourcing Europe

Budapest

• Holding

Small Appliances Sector

- Floor Care Factory

Electrolux Major Appliances Europe

- Refrigerator / Chest Freezer Factory

• Tool and Special Machine Factory

• Logistics Centre CEE

Jászberény

Electrolux Major Appliances Europe

- Refrigerator factory

Nyíregyháza

2,5 hour

1 hour

Electrolux in Hungary 2012

Position

Net Sales HUF 266 billion

Investments between 1991-2012 HUF 107 billion

Figures as of 2012

Products

More than 5 million products per year

To meet the real needs of consumers and professionals

People

3436 in Hungary

3500 at Suppliers

„An organization and its suppliers are

interdependent and a mutually beneficial

relationship enhances the ability of both to

create value.”

(International Organization for Standardization

Quality Management Principles: Principle 8:

Mutually beneficial supplier relationships)

Supplier Development

Our Quality starts at our Suppliers

1. Market Analysis

2. Potential Supplier list

3. RFQ Grip - Benchmarking

4. Selected supplier list

5. GSQA Procedure sent and supplier feedback

6. Profile EL29001 fulfilling by the supplier

7. Preliminary quality audit EL29002P

DP1 Decision to proceed

8. Drawings, Supply Specif., Q requirements

9. Supply and Quality Agreement (Preliminary)

10. Pre - Production, Quality Ass. Planning EL29003


11. Preliminary samples with test results reports

12. Fine-tune product and re-sampling

13. Supplier process audit EL29002A

14. Pre - Production, Quality Ass. guided Implem. EL29003

15. Initial sample homologation

16. Industrial trial (Application homologation report)

17. Supply and Quality Agreements finalization

DP2 Production / Delivery release

18. Ramp-up production

19. Ongoing business evaluation (Q statusing, QES report)

20. EL29002A follow up (Within 6 months from production)

Our main focus is to actively engage pro-active suppliers who

can interact multi-functionally within Electrolux in order to:

generate innovation

shorten the time-to-market

reduce total product cost

improve product quality

optimize performance/cost ratio

have early project involvement

(front-loading)


Supplier classification Description

Supported Fulfil Electrolux’s requirements, see e.g. price, accepted

quality, support Electrolux’s processes with their strategy.

Active If the supplier of the previous category cannot be used, this

satisfies Electrolux’s minimum quality requirements

Restricted (hold) The supplier is not involved in the new projects. No

commitment to the realization of common goals.

Excluded

Electrolux’s minimum quality requirements are not met. No

partnership in the future.

Potential For the time being, not an Electrolux partner, but has the

potential to become a partner in the future.


Logistics Financial Purchasing

Supplier profile

Quality

(GSQA)

Strategic Supplier Selection


R&D Other

functions


The supplier criteria fall

into seven categories

which together give a

comprehensive picture

of requirements and

performance/

capabilities.

Category Criteria

Quality/operations Quality and process system assurance

Quality performance

Capacity flexibility

Logistics Delivery performance (errors)

Lead time

Finance Financial position

Environmental position Environmental systems and effort

Company profile Strategic confidence

Supplier commitment

Technology R&D capabilities

Price Price level

Price risk/trend

Commodity specific Commodity specific criteria*

Commodity specific criteria*


Strategic Supplier Selection


Requirement Profile Mapping

Supplier Profile Mapping

Set-up activities Ongoing activities

1 2 3 4 5 6 7 8 9 Criteria

Quality and process system assurance

Quality performance


Delivery performance (errors)

Lead time

Financial position

Environmental systems and efforts

Strategic confidence

Supplier commitment

R&D capabilities

Price level

Price risk/trend

<Commodity specific criteria>


1 2 3 4 5 6 7 8 9 Criteria


Quality performance



Lead time

Financial position



Supplier commitment

R&D capabilities

Price level

Price risk/trend



1 2 3 4 5 6 7 8 9 Criteria


Quality performance



Lead time

Financial position



Supplier commitment

R&D capabilities

Price level

Price risk/trend



1 2 3 4 5 6 7 8 9 Criteria


Quality performance



Lead time

Financial position



Supplier commitment

R&D capabilities

Price level

Price risk/trend



GAP

After an initial set-up of mapping requirement profiles and supplier performance profiles, Supplier profile tool will support various ongoing activities.


Electrolux Product Division Month Year

Supplier Telephone

Address Contact Person

1. PRODUCT QUALITY - LINE & INCOMING INSPECTION

Line Rejects1 demerit for

every 10 ppm

Month DEMERITS

actual TOTAL

Incoming inspection

- And if incoming is done (30) demerits for every lot refused

2. DELIVERY PERFORMANCE

For each of the following items and for each occasion there are (30) demerits

- Line stopped

- Incomplete product

- A rescheduling or batch size reduction causing lost efficiency in

the production or sales demerits

Month 3 Months

average1. Product Quality Rating Demerits Comment

TOTALQ 0 - 10 Very Good

2. Delivery PerformanceRATING A 11 - 50 Acceptable

3. Number of B 51 - 150 RestrictedSupplierswith better C > 151 Unacceptable

rating

1 0

MONTHLY REPORTSUPPLIER ONGOING EVALUATION

DEMERIT SUMMARY

Supplier Ongoing Evaluation Monthly Reporting sheet

QUALITY VERSION

+

=

ppm ppmTarget215 80 22

220

0

22

0

22

A

8

Q


Supplier performance,

follow-up and actions

Supplier:

Dem 2009 2010 2011

Jan 30 53 193

Feb 104 41 140 Mar 36 20 89

Apr 54 33 72

May 61 34 39 Jun 51 81 81

Jul 18 183 94

Aug 18 4 84 Sep 31 251 25

Oct 10 247 88 Nov 76 277 12 Dec 0 39 53

1) 2)

3) 4)

Jan

10

Feb

10

Mar

10

Apr

10

May

10

Jun

10

Jul

10

Aug

10

Sep

10

Oct

10

1

Nov

10

Dec

10 P lan D o C heck A ct

1) #### #### #### #### #### #### #### #### #### #### #### #### IGAZ IGAZ IGAZ HAMIS

2) #### #### #### #### #### #### #### #### #### #### #### #### IGAZ IGAZ IGAZ IGAZ







Remarks a)

b)

EHP Component:

Serigraphy: involvement of HR dept.

Additional modification on the service inflated circuit to avoid deformation

Investigation on root causes of seigraphy defects

Training about defects as dents and scratches

Cleaning of production lines

Dented plate

Dented channel Scratches on the surface

TEAM Supplier Electrolux

Improvement Project ROLL BOND EVAPORATOR PLATE PD: HUL-R

Activities

PROGRESS STATUS Main dimension

Main Problems

Maintenance of anealing oven once a month

Cutting of edge's coils (straordinary operation)

Evaluation of new packaging for code 206401200

J. Békefi D. De Feo

J. Szilágyi

170

124 141

100

67 64 71

86

68 66

42 51

43 31 38 31 29

49

99 89

146

167

258

188

0

50

100

150

200

250

300

350

Jan

10

Feb

10

Mar

10

Apr

10

May

10

Jun

10

Jul

10

Aug

10

Sep

10

Oct

10

Nov

10

Dec

10

Jan

11

Feb

11

Mar

11

Apr

11

May

11

Jun

11

Jul

11

Aug

11

Sep

11

Oct

11

Nov

11

Dec

11

Dem

eri

ts

Q A B C R 3 M Month

Our approach to quality problems

R&D - Prevention

The procurement is part of the IPDP (Integrated Product Development Process)

Joint setting of clear goals

Early engagement of suppliers in the development projects

Annual development programs

Primary input is the Service Call Rate (SCR)

Systematic approach involving the assigned team leaders and setting clear goals

„On-hold” process

Primary input is the continuous assessment

Supplier quality development program

1. Selection of proper parts and suppliers

2. Classification – factory working group

3. Supplier Assessment

4. Meeting with the selected supplier

5. Supplier Audit

6. First follow-up meeting (after 3 months)

7. Second follow-up meeting (after 6 months)

„Innovation - in the long run - is the ability of an

individual or a group of individuals to think a

thought that no one else has thought before and

than successfully turn that idea into reality that

separate the best from the rest.”

Jonas Ridderstråle, Kjell A Nordström – Karaoke Capitalism

19

Innovation

Accelerate Innovation

1. Develop best-in-class products

2. ”70% preference rule”

3. Reduce Time to Market 30%

4. Continue investing in premium brands

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Innovation Triangle

R&D

Innovation Triangle

21

• The Innovation Triangle is global, for Marketing, Design and R&D

collaboration everywhere

• We are expanding our horizons and thinking about the entire

consumer experience

• We will develop more relevant and differentiated products,

services, accessories and consumables that consumers prefer,

faster than competition.

Battery stick cleaner

The new generation

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4 steps in innovation

1. Winning the product for Hungarian production

2. New technologies in production

3. Product innovation

4. Marketing innovation

Challenges

25

Challenges of the development:

• Same performance as a regular cleaner

• Battery driven product with long running time (1 hour)

• Exchangeable battery

• Competitive cost to be able to have the production in

Hungarian production site

• Several new technologies to the Hungarian factory

team

Battery handling

and charging

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Injection

technology

on grid

New technologies in our factory

Paper pulp (egg

cartoon)

packaging

Motor

vibration

balance

Filter

production

Product innovation

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Suction motor

with 3 levels

impeller system

Brush roll clean

New electronics

module

Filter

cleaning

Cyclone unit

Marketing innovation

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Self stand

Exchangable battery

Brush roll clean

technology

Flexible nozzle and

front light

Extra powerful combined

with extra long run time

Self standing

design

3 step power control with

booster function

Brush roll clean

Technology

Exchangeable battery pack –

extra pack available for purchase

Ultrapower – Features all based on consumer

insights

Cyclonic action for less clogging

Flexible floor nozzle with

headlights

At Electrolux, our innovation is based on

the consumer’s everyday wants and needs.

This is the essence of ”Thinking of you”.

”Thinking of you”

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Thank you for your kind attention!

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