Supply Chain Process Capability & Product Realization Process Strategy Streams IAQG General Assembly...

Supply Chain Process CapabilitySupply Chain Process Capability& Product Realization Process& Product Realization Process

Strategy StreamsStrategy Streams

IAQG General AssemblyIAQG General Assembly

San Diego, April 7, 2006San Diego, April 7, 2006

Bernard LaurasBernard LaurasAirbus Airbus

European Sector leaderEuropean Sector leaderProduct Realisation ProcessProduct Realisation Process

Barbara O’DellBarbara O’DellThe Boeing CompanyThe Boeing CompanyIAQG Stream LeaderIAQG Stream Leader

Supply Chain Process CapabilitySupply Chain Process Capability

Sub Tier Control as a Source of RiskTo Regulators and Customers

Poor Control of Sub Tiers is viewed as a Risk

Source of Non-Conforming Product

Methods used by Suppliers to Control Sub-Tiers are not well understood

Few industry standards and Best Practices published on how to

perform excellent supplier control . No common vocabulary or scoring

Reduced level of interaction with Sub Tiers compared to

with suppliers

Sub Tier system insufficient to detect

& prevent non-conformance

Supplier doesn’t know how to control

their (sub-tier) suppliers

(Lack of Transparency)(Lack of Visibility)

No Change

From Montreal

SCMH provides a framework for SCMH provides a framework for organizing and integrating our workorganizing and integrating our work

9100

Requirements

Stand alone requirements(9102, 9131, 9103, etc)

Supply Chain Mgmnt

Handbook Industry best practices on how to meet requirements

Supplier Mgmnt Life Cycle

SupplierSelection

Pre ProductionValidation

OngoingApproval

ChangeMgmnt

No Change

From Montreal

OEM

First Tier

Sub Tier

OEM

First Tier

Sub Tier

OEM

First Tier

Often, the value stream includes companies operating at many levels, and one standard should be consistently applied

Sub Tier

Supply Chain Process CapabilityName changed from Sub Tier Process Control

Ideal Stream Typical Stream

No Change

From Montreal

3.0 New ProductIntroduction

SCMH chapters have been renumbered SCMH chapters have been renumbered and include Product Realization Activitiesand include Product Realization Activities

1.0 Supplier Selection& Capability Assessment

2.0 Requirements and Flowdown

5.0 Product Verification & Acceptance

6.0 ControllingNon-Conf Product

9.0 On going ApprovalAnd Maintenance

4.0 Process Control

7.0 Work TransferManagement 8.0 Supply Chain

Mgmnt andPerformance

Measures

In work by Product Realization Stream

In work by Supply Chain Process Capability Stream

10.0 ProgramManagement

Phase 1: Collect aerospace and other industry best practices, standardize the knowledge & agree on core requirements

Phase 2: Create best practice material first, then mature into a guideline or to an industry standard document (910X standard). Maturity assessment may be developed here. Implementation Process should be defined here (pilot phase as required).

Phase 4: Implementation Process. Depending on guideline vs 910X decision, the document may be deployed company by company, or by standardized audit checklist, or by industry certification as part of the ICOP/9104 system. Implementation must include maturity assessment.

Phase 3: Standardized training provided by industry accepted trainers

For every “chapter” in the HandbookWe’ll follow this roadmap


Supply Chain Process Capability have Supply Chain Process Capability have been tasked Chapters 1 and 2been tasked Chapters 1 and 2






4.0 Process Control



Measures




Chapter 1 - SChapter 1 - Supplier Selectionupplier Selectionand Capability Assessmentand Capability Assessment

Sales Volume & Option Forecasting

Contract requirement flow down

SC design & major Components sourcing

Sales & Operation Planning

Master Scheduling & sequencing

New product introduction /LCM

Manufacturing

Suppliers sourcing selection & qualification

Plant, material, skills & capacity planning & Scheduling

Order Management (internal & external)

Inventory planning & optimization

Logistic Management

Planned change m

anagement

Non Conformity Management

Supplier D

evelopment

Perform

ance Monitoring and D

ecision support

Post Delivery Support

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Contract requirement flow down

SC design & major Components sourcing

Sales & Operation Planning

Master Scheduling & sequencing

New product introduction /

Manufacturing

Suppliers sourcing selection & qualification

Plant, material, skills & capacity planning & Scheduling

Order Management (internal & external)

Inventory planning & optimization

Logistic Management

Planned change m

anagement

Non Conformity Management

Supplier D

evelopment

Perform

ance Monitoring and D

ecision support

Post Delivery Support and services

Su

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Sel

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& C

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Supply Chain Processes

IAQG SCMH Chapters

Four domains assessed:

• People & Organisation

• Processes

• Tools & Data

• Performances Metrics

Four levels of maturity (Maturity model CMMI like)

1. Undefined : No Process, Method, Tools/ No Process, Method, Tools/ and Appropriate Behaviours

2. Defined

3. Applied

4. Optimising: Implemented and optimised, continuous improvement

Chapter 1 - Supplier Maturity AssessmentChapter 1 - Supplier Maturity Assessmentper Supply Chain Processper Supply Chain Process

3+ regular review of metrics effectiveness

Performance drives action plans

Measuring performanceNo measurement of PerformancePerformance

Metrics

Internal & external collaboration.

Real time intelligent workflows

Integrated database, clear workflows, internal collaboration

Multiple Data base

Spreadsheet

Manual : Fax e-mailTools & Data

Mature process for root cause & preventive actions

Root cause process in place

Process playbooks

Limited preventive actions

Ad hoc firefighting actions

Reactive needs

Customer StimulusProcess

Multifunctional team

Highly Skilled

Clear accountability

Cross functions

Highly skilled

Expert firefightersNo clear Accountability

No Problem solving skills

People & Organization

4Optimizing

3Applied

2Defined

1Undefined

Non Conformity

Management

3+ regular review of metrics effectiveness

Performance drives action plans

Measuring performanceNo measurement of PerformancePerformance

Metrics

Internal & external collaboration.

Real time intelligent workflows

Integrated database, clear workflows, internal collaboration

Multiple Data base

Spreadsheet

Manual : Fax e-mailTools & Data

Mature process for root cause & preventive actions

Root cause process in place

Process playbooks

Limited preventive actions

Ad hoc firefighting actions

Reactive needs

Customer StimulusProcess

Multifunctional team

Highly Skilled

Clear accountability

Cross functions

Highly skilled

Expert firefightersNo clear Accountability

No Problem solving skills


4Optimizing

3Applied

2Defined

1Undefined

Non Conformity

Management

ExampleExample

Expectation

Supplier performance

Decision to select or not based on risk analysis like 9134 “Supply Chain Risk Management guideline”

(Special action plan if not capable but need to select)

Tools & Data

PerformanceMetrics

Process


4Optimizing

3Applied

2Defined

1Undefined

New product IntroductionLife Cycle Management

Tools & Data

PerformanceMetrics

Process


4Optimizing

3Applied

2Defined

1Undefined


Tools & Data

PerformanceMetrics

Process


4Optimizing

3Applied

2Defined

1Undefined

Contract Requirement Flow down

Tools & Data

PerformanceMetrics

Process


4Optimizing

3Applied

2Defined

1Undefined


Tools & Data

PerformanceMetrics

Process


4Optimizing

3Applied

2Defined

1Undefined


Tools & Data

PerformanceMetrics

Process


4Optimizing

3Applied

2Defined

1Undefined


Tools & Data

PerformanceMetrics

Process


4Optimizing

3Applied

2Defined

1Undefined


Tools & Data

PerformanceMetrics

Process


4Optimizing

3Applied

2Defined

1Undefined


Tools & Data

PerformanceMetrics

Process


4Optimizing

3Applied

2Defined

1Undefined


Tools & Data

PerformanceMetrics

Process


4Optimizing

3Applied

2Defined

1Undefined


Tools & Data

PerformanceMetrics

Process


4Optimizing

3Applied

2Defined

1Undefined


Tools & Data

PerformanceMetrics

Process


4Optimizing

3Applied

2Defined

1Undefined


Tools & Data

PerformanceMetrics

Process


4Optimizing

3Applied

2Defined

1Undefined


Tools & Data

PerformanceMetrics

Process


4Optimizing

3Applied

2Defined

1Undefined


Tools & Data

PerformanceMetrics

Process


4Optimizing

3Applied

2Defined

1Undefined


Tools & Data

PerformanceMetrics

Process


4Optimizing

3Applied

2Defined

1Undefined


Each Company to apply weighting to each

process as appropriate to their Product,

Customer, Risks, etc…

Chapter 1 - Decision making processChapter 1 - Decision making process

Supplier Supplier Assessment Assessment

ResultsResults

Standard Questionnaire and Assessment results independent from the size of company and product/project criticality…

• Deliverables by SevilleDeliverables by Seville– Agree on the definition of the 15 Supply Chain Mgmnt processes

– Agree on the maturity matrix concept and finalize its content

– Conduct pilot assessments, using the maturity matrix and model, in all sectors

– Finalise decision matrix and questionnaireFinalise decision matrix and questionnaire

• Actions to be completed laterActions to be completed later– Validate questionnaire and Maturity Model during on the pilot phaseValidate questionnaire and Maturity Model during on the pilot phase

– Publish questionnaire and Maturity Model decision matricesPublish questionnaire and Maturity Model decision matrices

– Issue training packageIssue training package

– Identify Requirements,Guideline and Best PracticesIdentify Requirements,Guideline and Best Practices

Chapter 1 : Chapter 1 : Supplier Selection & Supplier Selection & Capability AssessmentCapability Assessment

Suppliers Produce Non-conforming Product because they do not understand the

requirements or do not receive the requirements. WHY?

Brainstorm of Causes

All the necessaryrequirements aren'tflowed.

People do not havenecessary training orknowledge to floweverything that is required

People who own the task of POrequirement review, how do theyknow how to do it, how do theyknow if they have done, nofeedback and what tools are theyusing to do it well?

Suppliermisunderstands therequirement: baddrawings, uncleardrawings, old specs.

Complex andcomplicated specsthat refer us to otherspecs and tablesand graphs

Do new suppliersget all the info?What about frominside to thesupply base?

Access to specs by subtiers. . First tier can go to"pull", but subtiers cannot. (CITIS/BPN network) Thefirst tier is responsible to identify and send therequired data. What is our oversight of first tiersuppliers and their ability to do this well?

Specification Pull system is a problem forsuppliers to multiple customers, they feeloverloaded with the challenge of checking for allthe spec updates:Get over it, that's your job, and you get paid todo it. How do suppliers approve/reject thechange.

Special process houses don't have access to our specs!Except where they are also first tier suppliers, or where wehave given them a KUTD distribution of hard copies.

We have trained our suppliers to respond to schedule atthe expense of quality and completeness. When wedeliver our requirements late, it puts them in a crunch!When we are in a hurry, we tend to make more mistakes

Hardware is produced andshipped before the PO (andall the requirements) areavailable in a completedocumented project

Mfg planning errors don'tresult in a plan that willmeet requirements evenwhen it is fully followed9100 oversight by some CRBs is

sometimes insufficient to detect thelack of compliance to Contract reviewand requirements flowdown sections of9100 Does confidentiality agreementsprevent the CRB from being able to dothis well?

Poor communication with suppliersaround SPDM (drawing pushsystem) and our oversight doesn'talways detect that they haven'taccessed the system regularly.

Most of these positions havehigh turnover and so planning isdata entry, and/or so is contractreview not really anything morethan data entry.

The inspection was done to theplan, not to the requirements!Non-conformance . drawing callsout a flag note for 1/2 " arrow, andplanner made a plan for a smallerarrow.

Verbal instructionswhich conflict withrequirements aregiven to save timein our process.

Supplier agreed tomeet requirementsthey couldn't meetor weren't positivethey could meet

Customer gives the wrongrevision level of a drawing orspec to a supplier or doesn'tensure the supplier is aware ofchanges to drawings or specs

Process changes occur in the middle of the productrealization process. How do we communicate this in realtime through the whole value chain? What if the sub-sub-tier hardware has already been built? Only aproblem if the spec change, inspected to current revisionvs the revision under which it was purchased.Customers are not

reviewing all the orders(especially on repeats)except where they havenon-conformances

Purchase Order reviewby the customer toensure the correctnotes are applied to thecontract is not robust We aren't connecting

the quality customerwith the quality supplierand ops with ops, onlythe pa to pa.

Contract review process is not robustenough, not 2 way communicationwith customers that gets things reallydiscussed and defined. We've trainedthem not to "bother us".

Process spec changes occur,but we don't get every supplierinput and confirmation of theirability to meet the change

Suppliers are accepting workwhen they cannot meetrequirements and we fail todetect this prior to contractaward and production start…pre-production validation

Supplier submits errors inthe drawing/specs, but wedon't correct it promptly

Suppliers Produce Non-conforming Product because they do not understand the requirements or they do not receive the requirements. . . . . . . . . WHY?

Problems with the KUTD system

Affinitize Causes

Customer

7.4.2j Sub tiers are getting the suppliersinterpretation of what the customer'srequirements are, not the accurate flowdown.

7.2.2 People whoown the task of POreview, how do theyknow how to do it?

7.2.2 Suppliermisunderstandsrequirements

7.4.2a,e &f Access tospecs by subtiers. . Thefirst tier is responsible toidentify and send therequired data.

7.4.2a SpecificationPull system is aproblem .. suppliersoverloaded

Mfg planning errors don't resultin a plan that will meetrequirements even when it isfully followed

7.2.2 9100 oversight bysome CRBs is sometimesinsufficient to detect thelack of compliance

Poor communication with sub-tiersuppliers ... not getting specs

The inspection was done tothe plan, not to therequirements and plan waswrong

7.2.2 Supplier agreed to meetrequirements they couldn't meet

7.2.2 Suppliersaccept work theycannot meetrequirements

Sub tiers get PO exceptions, and they will cert tothat exception. That isn't caught by the ultimatecustomer. The cert explicitly states that theyaren't meeting all requirements, but our systemmay routinely file them instead of validating them.

Sub tier certs aren'tflowed to the ultimatecustomer.

High turnover ...planning & contractreview nothing morethan data entry.

Do a better job ofdiscussingrequirements onsome majorprojects

We aren't connectingthe quality customerwith the quality supplier

Contract reviewprocess is not robustenough, not 2 waycommunication

Suppliers don't wantto questioncustomers and risklosing the work.


Complex andcomplicatedspecs

Special process housesdon't have access to ourspecs!

Ambiguous terms andacronyms, ….leads toassumptions

Customer gives the wrong revision level ofa drawing or spec to a supplier or doesn'tensure the supplier is aware of changes todrawings or specs

Process changes occur in the middle ofthe product realization process.

Process spec changeswithout supplier input andconfirmation of their abilityto meet the change

Requirements change, with no required achange incorporation request or date.Supplier wasn't even notified of the change.

Supplier submits errors in the drawing/specs, but we don't correct it promptly


People do not have thetraining or knowledge toflow all that is required

Customers are notreviewing all the orders(especially on repeats)

Purchase Order review by thecustomer to ensure the correctnotes are applied to the contract isnot robust

Supplier C & S

2.0 Requirements and FlowdownTeam Leader: Barb O’Dell

2.1 How to clearly identify and communicate requirements throughout the supply chainTeam Leader: Barb O’DellTeam Members: Gordon Rosner, Arne Logan, George Udris, Jarie Hermie, Wes Wilkey

2.2 How to generate a shared understanding of the requirementsTeam Leader: Gayle RolandTeam Member: Jay Park, Michelle Pierce, Dave Trucksis

2.3 How to manage revisions to requirements after initial contract/purchase order releaseTeam Leader: John SkokosTeam Members: Dale Gordon

7.4.2j Sub tiers are getting the suppliersinterpretation of what the customer'srequirements are, not the accurate flowdown.


People do not have thetraining or knowledge toflow all that is required

7.2.2 People whoown the task of POreview, how do theyknow how to do it?

7.2.2 Suppliermisunderstandsrequirements

Complex andcomplicatedspecs

7.4.2a,e &f Access tospecs by subtiers. . Thefirst tier is responsible toidentify and send therequired data.

7.4.2a SpecificationPull system is aproblem .. suppliersoverloaded

Special process housesdon't have access to ourspecs!

7.2.2 9100 oversight bysome CRBs is sometimesinsufficient to detect thelack of compliance

Poor communication with sub-tiersuppliers ... not getting specs

7.2.2 Supplier agreed to meetrequirements they couldn't meet

Ambiguous terms andacronyms, ….leads toassumptions

Customer gives the wrong revision level ofa drawing or spec to a supplier or doesn'tensure the supplier is aware of changes todrawings or specs

Process changes occur in the middle ofthe product realization process.

Do a better job ofdiscussingrequirements onsome majorprojects

Customers are notreviewing all the orders(especially on repeats)

Purchase Order review by thecustomer to ensure the correctnotes are applied to the contract isnot robust

We aren't connectingthe quality customerwith the quality supplier

Contract reviewprocess is not robustenough, not 2 waycommunication

Process spec changeswithout supplier input andconfirmation of their abilityto meet the change

Suppliers don't wantto questioncustomers and risklosing the work.

7.2.2 Suppliersaccept work theycannot meetrequirements

Requirements change, with no required achange incorporation request or date.Supplier wasn't even notified of the change.

Supplier submits errors in the drawing/specs, but we don't correct it promptly


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6.2.2 Resources

7.2.1 Requirements Definition

7.4.2 Flow Down7.2.2 PO Review

7.2.2 Contract Review 7.4.2 Change Management

7.2.2 Contract Review

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Chapter 2: Requirements & FlowdownChapter 2: Requirements & Flowdown

Chapter 2.0 Requirements and FlowdownChapter 2.0 Requirements and Flowdown


2.1 How to clearly identify and communicate requirements throughout the supply chain

2.2 How to generate a shared understanding of the requirements

2.3 How to manage revisions to requirements after initial contract/purchase order release

Chapter 2 - Requirements and FlowdownChapter 2 - Requirements and Flowdown

• Deliverables by Seville:Deliverables by Seville:– Connect to others doing similar work (Missile Defense Agency,

Space Quality Improvement Council) to see if we can combine efforts

– Communicate our work to others (AIA, ASQ)

– Collect best practices and white papers from aerospace and other industries

• Actions to be completed laterActions to be completed later– Benchmark Medical Device Industry and SEA on Requirements &

Flowdown

– Publish guidelines/best practices by June 07


Product Realization Activities have been Product Realization Activities have been tasked Chapters 3, 4 and 7tasked Chapters 3, 4 and 7






4.0 Process Control



Measures




Chapter 3 – New Product IntroductionChapter 3 – New Product Introduction

• Background:Background:

The Aerospace Industry developed a successful product The Aerospace Industry developed a successful product introduction process based on a 20%-80% outsource ratio and introduction process based on a 20%-80% outsource ratio and the industry has migrated to a 80%-20% outsource ratiothe industry has migrated to a 80%-20% outsource ratio

This change was gradual and a change in the product This change was gradual and a change in the product introduction process was not undertakenintroduction process was not undertaken

• Corrective Action proposed:Corrective Action proposed:

Develop a product introduction process that accurately Develop a product introduction process that accurately predicts supplier performance at production levelspredicts supplier performance at production levels

No Change

From Montreal

Chapter 3 – New Product IntroductionChapter 3 – New Product Introduction

• Status:Status:

– Benchmarking performed:Benchmarking performed:

• Dell computersDell computers

• Toyota USAToyota USA

• Knowles (Medical)Knowles (Medical)

– Lessons learned and brainstorming have produced Lessons learned and brainstorming have produced Sub-chapters headingsSub-chapters headings

3.0 New Product Introduction

Chapter 3 – New product introductionChapter 3 – New product introduction

3.1 Pre-production Process validation (product specific)

3.2 Review of Quality Planning including Key Characteristics

3.3 Product and Process Qualification

3.4 Pre-approval of test methods (where applicable)

3.5 FAI (9102)

3.6 Design Change Requirements

3.7 Product Maturity Assurance

Chapter 3 - Chapter 3 - New product introductionNew product introduction

• Deliverables by Seville:Deliverables by Seville:– Confirm sub-chapters headings, resolve overlaps with other Confirm sub-chapters headings, resolve overlaps with other

chapterschapters

– Collect best practices from IAQG and other companiesCollect best practices from IAQG and other companies

• Actions to be completed laterActions to be completed later– Publish guidelines/best practices by June 07Publish guidelines/best practices by June 07

Chapter 4 - Process ControlChapter 4 - Process Control

• 9103 (Variation Management of Key 9103 (Variation Management of Key Characteristics) not sufficiently and adequately Characteristics) not sufficiently and adequately deployeddeployed

Value not clearly identified Value not clearly identified or understoodor understood All functions to be involved, All functions to be involved, not only Qualitynot only Quality

Training requiredTraining required Need to explain how to Need to explain how to apply 9103 based upon apply 9103 based upon supplier & product complexitysupplier & product complexity

Lack of skillsLack of skills

Lack of buy-inLack of buy-in

No Change

From Montreal

• Since Montreal, EAQG has worked on 9103 education Since Montreal, EAQG has worked on 9103 education package:package:

– Common part (key concepts with IAQG banner) for all Common part (key concepts with IAQG banner) for all companies using the trainingcompanies using the training

– Some area to be adapted by each company when training its Some area to be adapted by each company when training its staff or its suppliers (examples, tools, forms, etc…)staff or its suppliers (examples, tools, forms, etc…)

– Education package content:Education package content:

Will focus on value of doing it and risks and/or costs of not doing itWill focus on value of doing it and risks and/or costs of not doing it

Should take difficulties of doing it into considerationShould take difficulties of doing it into consideration

• Work is on goingWork is on going


Chapter 4 - Process ControlChapter 4 - Process Control 9103 deployment Constraints9103 deployment Constraints

At supplier own initiative or At supplier own initiative or supplier developmentsupplier development

Mandate from customerMandate from customer

Application of 9103 should be risk oriented (not used if no added value, Application of 9103 should be risk oriented (not used if no added value, should focus on the results, not on the tool or the process)should focus on the results, not on the tool or the process)

More chance to succeed if convinced of business value than if strict More chance to succeed if convinced of business value than if strict mandate: Improve communication and learn more from supplier experience mandate: Improve communication and learn more from supplier experience and constraintsand constraints

3 ways of flowing 9103 down (deployment drivers) ?3 ways of flowing 9103 down (deployment drivers) ?

Need to create a global culture (prime, suppliers) rather than one way Need to create a global culture (prime, suppliers) rather than one way (mandate) => engagement within all levels and functions of the supply chain(mandate) => engagement within all levels and functions of the supply chain

– Mandated (high risk product and/or existing Mandated (high risk product and/or existing key characteristics)key characteristics)

–GuidelineGuideline

–Best practices sharingBest practices sharing

• Measure the effectiveness of 9103 deployment and its Measure the effectiveness of 9103 deployment and its benefits on the overall businessbenefits on the overall business

• Build on lessons learnedBuild on lessons learned– See how to define key characteristicsSee how to define key characteristics

– Introduce concept of FAI stage 1 (initial) and stage 2 (confirm Introduce concept of FAI stage 1 (initial) and stage 2 (confirm capability at ramp up)capability at ramp up)

– Evaluate how to use 9103 results to optimize design for Evaluate how to use 9103 results to optimize design for manufacturingmanufacturing

Chapter 4 - Process ControlChapter 4 - Process ControlFurther Actions

Chapter 4 - Process ControlChapter 4 - Process ControlInterconnection between several topics

“Global Process Control” brainstorming : We can build from 9103 but shall not limit to it and shall not consider it as the only key factor of success

Variation Management

of Key Characteristics

(9103)

New product introduction

Product performances (requirements)

Design for Manufacturing

Design changes

Product Maturity

Process changes

Work transfer

Industrial Capability

KC = key Characteristics

R = Results

KC

KC KC

R

R

R

Variation Management

of Key Characteristics

(9103)

New product introduction

Product performances (requirements)

Design for Manufacturing

Design changes

Product Maturity

Process changes

Work transfer

Industrial Capability

KC = key Characteristics

R = Results

KC

KC KC

R

R

R

4.0 Process Control4.0 Process Control

4.1 Variation management of Key Characteristics (9103)4.1 Variation management of Key Characteristics (9103)

4.2 Root cause analysis and problem Solving4.2 Root cause analysis and problem Solving

4.3 Process capability and control4.3 Process capability and control

4.4 Design for Manufacturing and Relation with Manufacturing 4.4 Design for Manufacturing and Relation with Manufacturing CapabilityCapability

4.5 Process Change Requirements4.5 Process Change Requirements

4.6 Industrial Capability and Capacity Assessment4.6 Industrial Capability and Capacity Assessment

4.7 First Article Inspection4.7 First Article Inspection

4.8 Special Process Control4.8 Special Process Control


• Deliverables by Seville:Deliverables by Seville:– Finalize 9103 education package

– Be ready for deployment of the 9103 training

• Actions to be completed laterActions to be completed later– Start to work on Root Cause Analysis and Problem solving

– Evaluate the effectiveness of 9103 deploymentEvaluate the effectiveness of 9103 deployment

– Reviewing opportunity for Process Control improvement based on Reviewing opportunity for Process Control improvement based on feedback from deployment (industry expectations)feedback from deployment (industry expectations)

– Build on 9103 (evolution of the standard or complementary Build on 9103 (evolution of the standard or complementary standards or methodology)standards or methodology)

Chapter 4 - Process ControlChapter 4 - Process ControlProposed Short Term Action planProposed Short Term Action plan

Supplier A

Supplier B

Chapter 7 – Work TransferChapter 7 – Work Transfer

• Unsuccessful work transfer is a major problem for the industry and we Unsuccessful work transfer is a major problem for the industry and we feel it is one of our prioritiesfeel it is one of our priorities• We have not standardised process to do itWe have not standardised process to do it

• Collected Industry Best Practices (Benchmarking)Collected Industry Best Practices (Benchmarking)– Dell computersDell computers

– Toyota USAToyota USA

– Knowles (Medical)Knowles (Medical)

• Standardize Knowledge and Lessons learnedStandardize Knowledge and Lessons learned– Pre-transition Program PlanningPre-transition Program Planning

• Pre-production meeting(s) – upfront effortPre-production meeting(s) – upfront effort

– Multidiscipline Team (Agreement: quality, eng., purch.)Multidiscipline Team (Agreement: quality, eng., purch.)– Capture Hidden Factory – Last Article audit (product and process) Capture Hidden Factory – Last Article audit (product and process) – Receiving Supplier Process Capability & AssessmentReceiving Supplier Process Capability & Assessment– Supplier Development – as requiredSupplier Development – as required


• Deliverables in Seville:Deliverables in Seville:– Confirm sub-chapters headingsConfirm sub-chapters headings

– Identify overlaps, existing/needed standardsIdentify overlaps, existing/needed standards

– Collect best practices from IAQG and other companiesCollect best practices from IAQG and other companies

• Actions to be completed laterActions to be completed later– Develop a transition process from best practices, ensuring Develop a transition process from best practices, ensuring

risks are identified and mitigated prior to the work transfer risks are identified and mitigated prior to the work transfer decision and launchdecision and launch

– Publish guidelines/best practices by June 07Publish guidelines/best practices by June 07


Supply Chain Management HandbookSupply Chain Management HandbookNext steps

• Finalize Chapter Headings and Sub Chapter titles and Finalize Chapter Headings and Sub Chapter titles and content/objectives to eliminate overlaps, improve clarity and content/objectives to eliminate overlaps, improve clarity and integration (June 06)integration (June 06)

• SAE has provided a “public web space” for our team to SAE has provided a “public web space” for our team to communicate with the general public on our progress. We communicate with the general public on our progress. We will populate this web space in coordination with the IAQG will populate this web space in coordination with the IAQG communications teamcommunications team

Supply Chain Process Capability & Product Realization Process Strategy Streams IAQG General Assembly...

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