Ruesselsheim October 30, 2014

S-IPB (SEVERITY IPB) SUPPLIER SYMPOSIUM

Ben Van Eeckaute

GME Director Supplier Quality & Development - Operations
AGENDA
GENERAL QUALITY OVERVIEW
PRESENTER: BEN VAN EECKAUTE

SHIFT TO SEVERITY IPB (INCIDENTS PER BILLION)

PRESENTER: KRISTOF WIERICX

QSB PLUS REFRESHER

PRESENTER: NORBERT TÓTH

2
 ENHANCED SUPPLIER QUALITY PERFORMANCE
MEASUREMENT METHODOLOGY

Objectives:

Shift to an effective supplier quality performance measurement system

better aligned with SSE.

Apply best practices already used by other OEMs when dealing with
incidents caused by supplier manufacturing failures.

Better Bidlist alignment with real GM / End customer impact:

- Move away from “static” PPM numbers to more “dynamic” PRR
numbers
- PRR’s to reflect impact on the vehicle / powertrain as well as on the
GM vehicle / powertrain assembly plants and end customer

Reduced number of PRR variants (600+ to 36)

Simplified entries into GQTS

3
 ENHANCED SUPPLIER QUALITY PERFORMANCE
MEASUREMENT METHODOLOGY

Improvements:

NEW - The Bidlist will be impacted by the number of incidents created

and not only by the number of non conforming parts delivered (PPM)

NEW - GM problem resolution reports (PRR’s) to suppliers will reflect

the severity impact on :
Product (VEC/PT)
GM Assembly Plants
End Customer

NEW - Each PRR will incorporate a weight factor based on the severity
of the issue to determine the impact to the Bidlist (i.e. field impact vs.
line disruption)

NEW - Distinct Bidlist input from both Direct Material and CCA /
Aftersales

4
SEVERITY IPB (INCIDENTS PER BILLION)

5
 GM BUILT IN QUALITY (BIQ) MIGRATION MODEL

A 5 step model to build quality into the GM Global manufacturing organisation

 Move from Detection &

Containment to Prevention

 Increases ability to build quality

in station

 Lowers the overall cost of quality

by reducing the need for inspection
& correction

6
BIQ LEVEL IV – CERTIFICATION REQUIREMENTS

Level IV Metrics:
Built In Quality GMS 23 Level IV Quality Metrics
People Involvement 13 Assembly- Powertrain-
DRR IPPM
Standardization 8 12 MIS IPTV Assembly PPM
Repair Float 12 MIS IPTV
Short Lead Time 5 Cost of Quality 12 MIS CPV
VOC Field Actions
Continuous Improvement 11 Field Actions
Total 60 Metrics

Supplier
First Time Quality
Performance

7
IMPACT OVERVIEW – PLANT DISRUPTIONS
Impacts:

On average, hundreds of cars / engines on technical hold each day

- Administration - Wasted resources
- Missed sales opportunities -

Frustrated sales organization

Dissatisfied customers waiting for their vehicles

Massive re-scheduling of our assembly lines is required

- Man-hours lost, repair / rework cost

But:

Suppliers complain we cannot keep stable schedules!

You are a part of the reason!

8
EXAMPLE FOR THE CONSEQUENCE OF A SIMPLE FAILURE

9
SUPPLIER MANUFACTURING PERFORMANCE

Tier X Involvement Process Weaknesses

Process
Tier 1 Development
7
Responsibility 14 failed
Tier X 18 Quality System
12 Responsibility failed

10
SUPPLIER MANUFACTURING PERFORMANCE

Analysis of Process Development Failure

5 4

DFMEA
PFMEA
Control Plan
Error Proofing
15 17

11
SUPPLIER MANUFACTURING PERFORMANCE

Analysis of Quality System Failures

Control Non Conforming Product

11 Error Proofing
12
Standard Work
Training
Layered Audits
2
6 Risk reduction
2 Supply Chain Management
2 Managing Change
Maintenance
5 8 Material Flow
External logistics
4 Program Management
2 4
3 Part & Process Control
1

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 NEW SUPPLIER ASSESSMENT / CERTIFICATION
Goal:
• Obtain an integrated standard to measure the total industrial performance of a supplier manufacturing location

• Apply standard during our entire business relationship

• Enhance key elements with requirements addressing weaknesses on e.g. Maintenance, Project Management etc.

• Automatic verification of certification compliance with each caused incident

Past: New:

Quality QIP
(Quality &
Systems Industrial
Process Basics Performance)

Control (QSB)
Plan NSA QSB+
Audit (New (Quality
Supplier Systems
(PCPA) Assessment) Basics)
Others
Potential
Supplier
PCPA
(Process
Assessment Control
Plan
(PSA) Audit)

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HEADS UP ON NEW SUPPLIER ASSESSMENT / CERTIFICATION

QIP
(Quality &
Industrial
Performance)

NSA QSB+
(New (Quality
Supplier Systems
Assessment) Basics)

PCPA
(Process
Control
Plan
Audit)

Conclusion:
• 1 supplier audit (QIP) used throughout entire relationship

• Activity selects appropriate requirements for NSA, QSB+, PCPA

• QSB+ score determines bid list impact

• QSB+ score automatically revisited with each PCPA

• Roll out: Q3, 2013

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 QSB+ AUDIT PRINCIPLES
QSB+ QSB+ PCPA NSA
Chapter
# of req Effectivness # of req. # of req.
1 Fast Response FR 5 1 3 4
2 Control of Non-conforming Product CNC 6 1 5 5
3 Verification Station & Error Proof Verification VS + EP 5 1 4 3
4 Standardized Work SW 6 1 6 6
5 Training TR 5 1 2 4
6 Layered Process Audit LPA 3 1 2 2
7 Risk Reduction RR 5 1 3 4
8 Contamination Control CC 4 1 3 3
9 Supply Chain Management SCM 4 1 3 3
10 Managing Change MC 5 1 1 2
11 Maintenance MAI 5 1 4 3
12 Manufacturing & Material Flow Management MFM 6 1 5 3
13 External Logistic ELG 4 1 1 3
14 Project managment/Strategy SPM 7
15 Part and Process Control PDO 9 4

TOTAL 63 13 51 56

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 GLOBAL SUPPLIER DATA

Of 9,151 Supplier Locations Shipping to GM globally:

• 40% had 0 PR/R’s

• 63% had 0 PPM
• 86% had < 25 PPM
• 99.7% caused no Plant Disruptions
• 99.5% caused no Field Actions

Vast majority of our Suppliers perform and supply flawlessly

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SQ EXCELLENCE AWARD

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SHIFT TO SEVERITY IPB (INCIDENTS PER BILLION)

Kristof Wiericx
GME Supplier Quality Business Planner
ENH ANC ED S U PPL I ER PERF O RMANC E MEAS UREMENT
S EV ERI TY I NC I D ENT PER BI L L I O N ( S - I P B)

Table of contents:

1) Link between GQTS, Severity Matrix and S-IpB

2) Quality Ranking BidList Direct Impact

3) S-IpB Summary in SPM (Supplier Performance Metrics)

4) Q&A

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ENHANCED SUPPLIER PERFORMANCE MEASUREMENT
LINK BETWEEN GQTS, SEVERITY MATRIX AND S-IPB

Quality Incident / PRR

Supplier causes an issue at the assembly/powertrain plant.

Based on the impact to the Vehicle and/or Powertrain,

the incident will be documented in a PRR and classified in 8 different
levels. Each PRR will have a weight factor which will be used for the S-IpB
calculations.

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S EV ERITY MATRI X - WEI G H T F AC TO RS BAS IC PRINC IPL E

Single Incident Field Impact

GM Assembly plants (i.e. Shipping yard)

Single Plant Field

Sorting Yard Down
Incident / Disruption Impact
Rework Hold Time
Line Rej.

Minor 1 2 3 4 5 6
dissatisfier
Scratched bumper

2
……..
Product
3
……..
Safety/Legal/
Walk Home 4
Failure
Leaking fuel line
1 -> 6 = Weight factor to define bidlist impact
(This will be used for the Severity IpB Calculations)

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SEVERITY MATRIX - WEIGHT FACTORS Plant Impact

-No Impact to the -Impact on schedule

Vehicle/Powertrain/
assembly/powertrain/ attainment. Plant
parts sorting/rework Components on hold,
component plant < 40 vehicles / powertrain disruption
potentially resulting in rework Yard hold / Field
Level definition -Defect never introduced in the affected per production (See Terms
(part not assembled on on production line, end of Downtime Impact
production process. day. and
the vehicle/powertrain) production line or scrapping of
-Defect never sequenced to the -Downtime on sub assy Definitions)
vehicle/powertrain/components
production line. line/station

Line accumulations
Level A (See Terms and Definitions) 0

Supplier initiated
Not detected by the customer
LevelB 0 0
Customer alert
-PSA/GM request for support
Level C from supplier 0 0 0

A single case non-conformity

Vehicle -no critical failure
/ PWT -no downtime
-parts not yet mounted OR
Impact rework time on vehicle /
powertrain less than 10 minutes
LevelD 0 0 3

Multiple nonconformities of level D

-total rework time less than 20 minutes
OR
Mislabeling with
-no line shutdown
-no rework
Level E 0.25 1 3 5 12.5 20
Level F repeat of B, C , D or E 0.5 2 4 6 13.5 21
G.1 Nonconformities
-not covered by Level D & E
Level G
-no critical failure 1 3 5 7.5 15 22
G.2 Critical failure 2 4 7 15 20 25
repeat of G1 3 5 10 20 25 30
Level H
repeat of G2 4 6 12 22 30 35

Used as weight factor in Severity IpB.

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ENHANCED SUPPLIER PERFORMANCE MEASUREMENT
LINK BETWEEN GQTS, SEVERITY MATRIX AND S-IPB

GQTS – Incident Impact - Middle

4 Section of PRR

Use this information to find the severity of the PRR

In the Severity matrix

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SEVERITY MATRIX - WEIGHT FACTORS Plant Impact

-No Impact to the -Impact on schedule

Vehicle/Powertrain/
assembly/powertrain/ attainment. Plant
parts sorting/rework Components on hold,
component plant < 40 vehicles / powertrain disruption
potentially resulting in rework Yard hold / Field
Level definition -Defect never introduced in the affected per production (See Terms
(part not assembled on on production line, end of Downtime Impact
production process. day. and
the vehicle/powertrain) production line or scrapping of
-Defect never sequenced to the -Downtime on sub assy Definitions)
vehicle/powertrain/components
production line. line/station

Line accumulations
Level A (See Terms and Definitions) 0

Supplier initiated
Not detected by the customer
LevelB 0 0
Customer alert
-PSA/GM request for support
Level C from supplier 0 0 0

A single case non-conformity

Vehicle -no critical failure
/ PWT -no downtime
-parts not yet mounted OR
Impact rework time on vehicle /
powertrain less than 10 minutes
LevelD 0 0 3

Multiple nonconformities of level D

-total rework time less than 20 minutes
OR
Mislabeling with
-no line shutdown
-no rework
Level E 0.25 1 3 5 12.5 20
Level F repeat of B, C , D or E 0.5 2 4 6 13.5 21
G.1 Nonconformities
-not covered by Level D & E
Level G
-no critical failure 1 3 5 7.5 15 22
G.2 Critical failure 2 4 7 15 20 25
repeat of G1 3 5 10 20 25 30
Level H
repeat of G2 4 6 12 22 30 35

Used as weight factor in Severity IpB.

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L INK BETWEEN G Q TS , S EV ERI TY MATRIX AND S -I P B
PPM C AL C U L ATI O NS – BAS ED O N 1 2 MO NTH S

Problem Resolution
Report (PRR)

# of NOK parts

* PPM (Parts per Million)

PPM * PPM for supplier X= # NOK parts last 12 months X 106

# parts delivered last 12 months

Compare to
PPM target by CT

PPM to target (supplier X) Bid List Impact

Bidlist points deduction 0 => 99% of CT target 0
100% => 199% of CT target 5
200% => 299% of CT target 15
>= 300% of CT target 25
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L INK BETWEEN G Q TS , S EV ERI TY MATRIX AND S - I P B
SEVERITY IPB CALCULATIONS – BASED ON 6 MONTHS
Expectations for all suppliers: Do Not Build and Ship defects
Problem Resolution
Report (PRR) Enhanced measurement Input: Incidents, Severity and
Deliveries

Severity Score (move from PPM)* * Severity Score = Incident(PRR’s) x Weight factors

** Severity IpB (Severity Incident per Billion)

S-IpB for supplier X= # Sum of Severity Score last 6 months X 109
Severity IpB ** # parts delivered last 6 months

Compare to
Severity IpB target by CT
(new targets will be set monthly)

Line accumulations,
Severity IpB to target (supplier X) Bid List Impact
Bidlist points deduction as Supplier initiated, Supplier
function of severity level 0 => 99% of severity IpB target 0
Alert PRRs are excluded
100% => 199% of severity IpB target 10
200% => 299% of severity IpB target 20 from S-IpB calculation
>= 300% of severity IpB target 30

26
 SEVERITY IPB CALCULATIONS
EXAMPLE 1 – SINGLE PRR

EXAMPLE: Supplier X delivered 100000 parts in the last 6

months and received 1 quality PRR with the following impacts:
Vehicle impact - Level E
Plant Impact – Parts Sorting/Rework (Not Yet assembled)

1 PRR with a weight of 0.25

Severity IpB to target (supplier X) Bid List Impact

Severity Score = 1 x 0.25 = 0.25
0 => 99% of severity IpB target 0
100% => 199% of severity IpB target 10
200% => 299% of severity IpB target 20
>= 300% of severity IpB target 30
Severity IpB = (0.25/100000) X 10 9
= 2500

Severity IpB Target

= 5000

S-IpB => 99% of S-IpB supplier target

No bidlist points deduction

27
 SEVERITY IPB CALCULATIONS
EXAMPLE 2 – SINGLE PRR

EXAMPLE: Supplier X delivered 100000 parts in the last 6

months and received 1 quality PRR with the following impacts:
Vehicle impact - Level E
Plant Impact – Yard Hold

1 PRR with a weight of 5

Severity IpB to target (supplier X) Bid List Impact

Severity Score = 1 x 5 = 5
0 => 99% of severity IpB target 0
100% => 199% of severity IpB target 10
200% => 299% of severity IpB target 20
>= 300% of severity IpB target 30
Severity IpB = (5/100000) X 10 9 = 50000

Severity IpB Target

= 5000

S-IpB => >=300% of S-IpB supplier target

30 bidlist points deduction

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 SEVERITY IPB CALCULATIONS EXAMPLES
MULTIPLE PRRS – SOME WITH NO IMPACT

Example: Severity Score and Severity Ipb Calculation:

- Supplier delivery 100.000 in the last 6 month
- Supplier received 08 PRRs in the last 6 months
Weight Factor from each PRR (last 6 months):
5 PRRs = 0 Weight factor (Level A/B/C or D (without Yard Hold))
1 PRR = 1 weight factor -> Severity score = 1 X 1 = 1
1 PRR = 5 weight factor -> Severity score = 1 X 5 = 5
1 PRR = 3 weight factor -> Severity score = 1 X 3 = 3

29
 SEVERITY IPB CALCULATION - CT TARGET
Expectations for all suppliers is Zero Defects. The target is dynamic and not static. The target is not
for suppliers to achieve. It is used to compare suppliers within the same creativity team.
Severity Worst
IpB Creativity Team (7 suppliers)
• Good supplier

• Bad supplier

CT Severity IpB Target =

Average CT performance
Best

Suppliers

Experience / Lessons Learned from PSA:

 Target = average CT Severity IpB performance
 Exclude worst and best Manufacturing Duns in CT in average
calculation, not to have a skewed target
30
 SEVERITY IPB CALCULATION - CT TARGET
S UPPL IERS D EL IV ERING MUL TIPL E C T’ S
• Every month create automatically a target per Manufacturing Duns based on the
previous 6 months CT delivery split weighted with the new CT targets

• Example:
Situation sketch: Supplier delivered in the last 6 months to 3 different CT’s with following
volume split:
- Volume CT 1: 100000 (50%)
- Volume CT 2: 50000 (25%)
- Volume CT 3: 50000 (25%)
New targets defined as:
- Target CT 1: 500
- Target CT 2: 1000
- Target CT 3: 15000

Overall target = 500*(50%)+1000*(25%)+15000*(25%) = 4250

31
 SEVERITY IPB CALCULATION
S U PPL I ER REL ATI O NS H I P BI D L I S T IMPAC T

If supplier has a repeat supplier Relationship PRR what is the impact?

Impact of the repeat PRR = Direct Impact x 2

Example: Supplier Y got 2 program management PRR and the

second one is flagged as repeat.

The direct impact on bid list will be 5 + (5 x 2) =

15 points deduction.
 Q & A
L INK BETWEEN G Q TS , S EV ERI TY MATRIX AND S - I P B

33
 CURRENT BIDLIST

Based on 12 months rolling

RANK SUPPLIER QUALITY SERVICE PRICE
Country Risk Rating

Controlled Shipping

Controlled Shipping
Major Disruptions

Systems Basics
Prog Mgt PRR's

TS16949 Cert.
Financial Supplier

Launch PRR's

QSB - Quality
Lead Region

GSC Rating

Total PRR's
MMOG/LE

Risk Quality

ISO14001
Mfg.Duns

Diversity
Location
Service

Level II
Quality

Level I
Rating-FRR Excellence
Name
Price

PPM

NBH
Aw ard
12 Mo. 6 Mo. 6 Mo. 6 Mo.
Jan 14 Plant/UnAuth Field Open Open
Perform ance Criteria
<80 R 3 R R >1 >2 >4 >2 >1 E,N Y E,N 4,5 4,5,6,7
Y 2 Y Y 1 1-2 1-4 1-2 1 W,F W,F 3 3
>=80 G 1 G G,NR 0 0 0 0 0 C,NA N C,NA 1,2 1,2

Quality Ranking based on 100 possible points

Sourceable, “Green”, if point value is 80 or above. Non-sourceable, “Red”, 79 or below

34
FUTURE BIDLIST

Based on 6 months rolling

2. New Measurement 3. New PRR type:
1. Distinct ranking for supplier Partnership / Supplier 1. Distinct ranking
for CCA/Aftersales performance: Relationship for CCA/Aftersales
Severity IpB

SUPPLY
RANK SUPPLIER QUALITY CHAIN CCA / Aftersales PRICE

Excellence Award
Supplier Quality
Conflict Minerals
Shipping Level II
Shipping Level I
CCA/Aftersales

TS16949 Cert.
Supply Chain

Country Risk

Lead Region

Severity IpB

Total PRR's
Partnership

Field Action
Finan
MMOG/LE

Controlled

Controlled

ISO14001
SC Rating
Mfg.Duns

Diversity
Location

cial

Service

Launch
Quality

Quality
Rating

Name

+
Price

QSB
PPM

NBH
PSA

IpB

Risk
6 Mo. 6 Mo. 6 Mo. 6 Mo.

Custo
Prog Una mer
Mgt uth. Sat. Open Open
Sourceable

80 90 ? 2 Y R X X X GME Y 0 0 0 0 0 0 0 0 0 E N N 3 0 N N

35
ENHANCED SUPPLIER PERFORMANCE MEASUREMENT
Q U AL I TY RAN K I N G BI D L I S T I MP AC T
Categories: Current Bidlist 2014 Future BidList 2015
New Business Hold -100 -100
Supplier Fault Field Action -30 -30
Unauthorized Changes -20 -20
Lack of TS16949 Certification -10 -10
Lack of QSB Certification -10 -10
Plant Disruption -20 >=2 -100
PPM (above target) -5 / -15 / - 25 Severity IpB (above target) -10 / -20 / - 30
Controlled Shipping (CS1 / CS2) -5 / -10 (Integrated in Severity IpB) 0
Program Management occurrence -5 -5
Customer Satisfaction 0 -1

Safety Measures based on 6 months

1) Plant Disruption > =2 Deduction = -100
2) Program Management >= 3 Deduction = -100
3) CS-1 >= 3 Deduction = -100
4) CS-2 >=2 Deduction = -100
5) Launch PRRs >=4 Deduction = -100

36
 Q & A
Q U AL I TY RANK I NG BI D L I S T D I REC T IMPAC T

37
 S-IPB SUMMARY IN SPM

 Temporary report generated to provide a 5 months

learning curve to suppliers and allow suppliers to:
- Familiarize with the S-IpB concept
 Understand shift from PPM to S-IpB
- Understand the inputs of the quality ranking in the
future bidlist that will launch in January 2015
- Take actions to improve quality performance and
achieve quality excellence
 Only available from Aug 4, 2014 to December 2014
- Expected to be removed December 31, 2014
 It is not the Bidlist and does not replace the bidlist

38
 HOW TO ACCESS S-IPB SUMMARY IN SPM

Click Here

39
 HOW TO ACCESS S-IPB SUMMARY IN SPM

Scroll down
When you
get
This window
Until you
reach the
bottom of
the page

40
 HOW TO ACCESS S-IPB SUMMARY IN SPM

Click Here

41
 HOW TO ACCESS S-IPB SUMMARY IN SPM

Click Here

42
 S-IPB SUMMARY IN SPM
EX AMPL E O F U L TI MATE D U NS WI TH MF G D UNS >=2 0

Click Here to view all

The manufacturing
duns
Associated to the
ultimate duns

If Ifyou
youclick
clickonona aMfg
Mfgduns
duns
YouYougetgeta ascreen
screenspecific
specifictoto
TheThemfgmfgduns.
duns.See next
slide

This screen only shows the Top 10 Mfg duns with the highest S-IpB Quality Score and
Top 10 Mfg duns with the lowest S-IpB quality score
43
 S-IPB SUMMARY IN SPM
EX AMPL E O F A MANU F AC TU RI NG D U NS S C REEN

Dummy Supplier Manufacturing Duns A

Quality Ranking Direct Impact Drivers

Dummy Supplier Manufacturing Duns B

Severity IpB to target (supplier X) Bid List Impact

0 => 99% of severity IpB target 0
100% => 199% of severity IpB target 10
200% => 299% of severity IpB target 20
>= 300% of severity IpB target 30

44
 Q & A

45
 FREQUENTLY ASKED QUESTIONS
SEVERITY IPB
Q1 – Where can we find the training material?

Answer:
1

46
 FREQUENTLY ASKED QUESTIONS
SEVERITY IPB
Q2 - What is the supplier roll-out timeline?
Answer:
Roll-out to Supply Base Target Date
SupplyPower Bulletin to reflect changes in GQTS April 4th, 2014

Supplier Business Meeting April 16th, 2014

Global WebEx Training with Key and Critical suppliers June 24 and June 25, 2014

Global Webex Training with supply base July 2014

Regional Supplier Symposiums with Key & Critical suppliers July 2014 & August 2014

Regional communication with suppliers shifting from Green to

July & August 2014
Red

Report available in SPM to allow suppliers to understand the S-

August–December 2014
IpB and work to improve their rating to Green or remain Green

Monthly bulletins to engage suppliers to use SPM reports and August–December 2014
answer Frequently Asked Questions

Weekly Bulletin in December – Reminders for bidlist effective

December 2014
date

Revised Bid List Effective Date January 2015

47
 FREQUENTLY ASKED QUESTIONS
SEVERITY IPB

Q3 – Who can I contact if I have questions about the Severity IpB?

Answer:

Region Name Email

GMIO Weiren Chen weiren.chen@gm.com

GMSA Felipe Soeiro felipe.soeiro@gm.com

GMOV (Europe) Kristof Wiericx kristof.wiericx@gm.com

Hanji Nagafuchi hanji.nagafuchimartinez@gm.com

GMNA (Mexico)
Martinez
GMNA regine.bile@gm.com
Regine Bile
(US/Canada)

48
 FREQUENTLY ASKED QUESTIONS
SEVERITY IPB

Q4 – How will GM ensure the highest severity scores are validated?

Answer:

There will be a management oversight and approval required for the highest severity
scores.

Q5 – In determining Sev Ipb target, is the average S-Ipb calculated among

the suppliers of same type commodities, or among all suppliers regardless
of which commodity type?

Answer:
S-IpB Target is calculated among suppliers of same creativity team (Same type
commodities)

49
 FREQUENTLY ASKED QUESTIONS
SEVERITY IPB

Q6 – Will supplier alert & supplier initiated PRR be visible on 6 panel chart?

Answer
Supplier alert and Supplier initiated PRR will not be counted in IpB and S-IpB,
therefore are not visible on 6-panel

Q7 – Will the S-IpB Target be visible to suppliers? Where can we find it?
Answer
The S-IpB target will not be visible in SPM in August 2014 and we are working to have
it visible in January 2015. We’ll communicate where to find it in January 2015.

Expectations for all suppliers is Zero Defects and achieve quality excellence. The S-
IpB target is dynamic and not static. The target is not for suppliers to achieve. It is
used to compare suppliers within the same creativity team. You can not use the
current month S-IpB target to forecast your performance for the next month.
50
 FREQUENTLY ASKED QUESTIONS
SEVERITY IPB

Q8 – Is this new GP5 applicable to Tier 2 direct buy supplier

Answer

The new GP5 is applicable to Tier 1 suppliers and Tier 2 directed buy RASIC B.

51
 FREQUENTLY ASKED QUESTIONS

Q.9 - Supply Chain Bid list impact (6 panel chart)

New

52
 FREQUENTLY ASKED QUESTIONS
Q10 - Will CCA PRR’s count against suppliers in the Quality ranking in the bid list January 2015?

Answer: No. CCA PRR’s will no longer be included in the Quality Ranking. See new CCA bidlist impact

CCA – PRR Weight Factor - Bid List Impact

PRR type Primary NC Direct Impact Direct impact
Secondary NC Description
description Description CCA Quality CCA Service
Failure to Meet Packaging Spec Submission Dates 2
Failure to meet PRR response time initial / final responses 2
Failure to Return Phone Calls 2
Customer Satisfaction
Failure to Supply Documentation 2
Inadequate Corrective Action Responses 2
Shipped without PPAP / EI Approval 5
Inadequate Corrective Action Responses 2
Indirect material
Other 5
Appearance Discrepancies 5
Assembly Discrepancies 5
Quality Dimensionally Out of Specification 5
Fabrication Discrepancy 5
Miscellaneous 1
CCA / Aftersales Container Misappropriation 5
Packaging Miscellaneous 1
Parts not packaged to specification for service 5
Documentation / Paperwork Discrepancies 5
Electronic Communication Discrepancies 2
Miscellaneous 1
Shipping Responsiveness, Reliability, Flexibility 2
Schedule Discrepancies 12,5
Transportation / Carrier Discrepancies 2
Schedule responsiveness warning letter 5
COO Incorrect/Missing 5
COO registration missing 5
Labeling
Labeling 5
53
Miscellaneous 1
 Supplier Quality
S-IpB (Severity IpB) Supplier Symposium

QSB PLUS REFRESHER

Norbert Tóth
Supplier Quality Deploym ent
 Quality & Industrial Performance

Focus – ONE LANGUAGE GLOBALLY

• Common Principles

• Common Methods

• Common Processes

55
 QUALITY SYSTEMS BASICS PLUS
What are the basic 13 elements of QSB Plus?
1. Fast Response QSB Plus process
2. Control of Non-Conforming Product
3. Verification Station + Error Proofing Verification Quality System foundation &
4. Standardized Work certification for suppliers endorsed
by GM & PSA worldwide
5. Training
6. Layered Process Audits
7. Risk Reduction - Audit supplier to identify the gaps
8. Contamination Control
9. Supply Chain Management
- Action Plan to close the gaps
10. Managing Change
11. Maintenance
12. Manufacturing & Material Flow Management - SQE Certification Audit
13. External Logistics
14. Strategy and Project Management - NSA
- Monitor
15. Part and Process Control - PCPA

56
 Background
QSB Plus material availability

57
 Background
QSB Plus material availability

58
 Supplier Quality
S-IpB (Severity IpB) Supplier Symposium

QSB+ Key Elements

Overview

59
 Quality Systems Basics Plus

FAST RESPONSE

Solving problems faster & earlier upstream through visual

management
Holding task owners accountable for timely corrective action

60
 FAST RESPONSE
Fast Response, what are we searching for?

61
 FAST RESPONSE

FAST RESPONSE PROCESS KEY STEPS

Departments gather significant issues from the past 24 hours.

Daily Fast Response Meeting assigns owner to each issue.

Outside the meeting the owner utilizes the Problem Solving
process to correct and prevent recurrence.

Issues are tracked on the Fast Response Tracking

Board. Owners are required to give periodic updates at
Fast Response meeting.

Owner responsible for completion of all exit criteria

including Lessons Learned. Results of Problem Solving
process communicated. Fast Response Tracking Board
indicates exit criteria is green.

62
 FAST RESPONSE
(Example)

63
 FAST RESPONSE
Problem Identification
In preparation for the Fast Response meeting, at the start of the day, Departments
shall identify their significant concerns from the past 24 hours which include:
• External Concerns:
– Customer concerns (PRR’s, Liaison Issues, Customer Calls, Warranty)
– Supplier concerns (Suppliers should be notified in advance when
they are to report out at the meeting).
• Internal Concerns:
– Verification Station Findings
– Layered Process Audit Systemic issues
– Line stops and Teardown issues
– Other internal Quality concerns (Dock Audits, containment activity)
– Error Proof device failures

All the significant quality issues are tracked on Fast Response Board.

64
 FAST RESPONSE

Structure

Cross functional meeting owned by manufacturing

Daily review of significant concerns

Communications meeting, not a problem solving meeting.

Short sharp meeting typically held on the shop floor.

Each issue documented & reviewed at the meeting to provide structure for the
report out

65
 FAST RESPONSE

Responsibilities

New issues updated on the Fast Response board

Owner shall report progress to the team

Plant Manager or designated manufacturing lead ensures Fast Response

process is effective.

At the Fast Response meeting, site leadership shall:

• Designate a leader (natural owner) for each concern/issue

• Identify action required and owner for items statused as RED.
• Establish the next report out date for the issue if it is not closed.

66
 FAST RESPONSE
Example of Fast Response Tracking Board (Example)

Board could be a dry erase board, laminated

poster, Excel sheet projected by beamer etc.

Board can be different but must meet INTENT

67
 FAST RESPONSE

Exit Criteria, Statusing:

Typical Exit Criteria
Timing for each of the exit criteria
shall be established in order to EXIT CRITERIA

properly status each item Target Timing, Status, & Date Green
24 H 7D 14 D 34 D 35 D 40 D

Containment - Breakpoint

Layered Process Audits

Standard Work Operator

PFMEA / CP Updated
Root Cause Identified

Error Proof/Detection
Exit criteria shall be established

Lessons Learned
Corrective Action

Corrective Action

(Institutionalized)
Implemented
for each key step in the problem

Instructions
Validated
solving process.

The default when a problem is

first opened is Yellow G G G G G G G Y Y
1/11 1/18 1/24 1/24 1/25 2/13 2/15 2/20 2/20

Evidence of each criteria should

be reviewed by the Owner at the
Fast Response Meeting.

68
 FAST RESPONSE
Fast Response to operator’s concerns
An Andon system or similar in place to support operators in case of any concerns
in order to avoid that they try to solve the concerns by themself creating a
significant issue, such as:
• Safety issue,
• Quality decision (e.g.: judge a non-conformance as OK),
• Unauthorized rework/repair,
• Deviation from standard work, create a new failure mode, etc.
Based on complexity of the line different solutions are acceptable, important that
fast communication is ensured and operator is never alone with concern
identified.

69
 FAST RESPONSE
Information flow between shifts
• Assure an open communication channel between all shifts;
• Avoid potential miscommunication between shifts related to issues
faced by other shifts;
• Drive management and support groups in problem solving
activities.

70
 FAST RESPONSE
Problem Solving
Step 1-DEFINE THE PROBLEM

Standard

Discrepancy

Actual

TIME

Process 3 Is the Point of Cause!

71
 FAST RESPONSE

Step 2 – Contain the problem:

Need to determine

• The best method to contain the defect.

• How long has this been happening?

– Review data for last known good part
– Engage operators regarding changes or abnormal conditions
and timing.
– Initiate a containment work sheet

• Whether other areas or customers are impacted by the problem and to

what extent.

72
 FAST RESPONSE

Step 3 – Identify the Root Cause:

Cause Effect

73
 FAST RESPONSE
Step 4– Implement Corrective Action:

Brainstorm possible solutions and

select the most effective

Determine if a trial run is needed to

confirm the solution is effective .

Determine implemention and timing.

Identify the breakpoint and

communicate to all key stake holders.

74
 FAST RESPONSE

Step 5 – Verify Effectiveness of Actions:

• Use Layered Process Audits to verify actions working as intended.

• Verify effectiveness through measurement and data.

• Establish a verification period.

• Determine who will follow up. MARCH

• Create a standardized process or method.

75
 FAST RESPONSE

Step 6 - Institutionalize:

Identify similar products and processes which potentially have or may produce
the same failure mode.
Implement the solution across the organization.
Update remaining necessary documentation:
– PFMEA
– Control Plan
– Error Proofing Verification
– Standardized Work
– Operator Instructions

Perform Lessons Learned

76
 FAST RESPONSE

Lessons Learned

A Lessons Learned system:

• Is a process for capturing information to support continuous improvement

and prevents repeated mistakes

• Applies to the entire organization, all functions should participate.

• Lessons Learned may be identified by anyone

• Must be documented (e.g. Master PFMEA, APQP Checklist e.t.c)

• Leadership shall review the process to assure implementation.

77
FAST RESPONSE – Lessons Learned Example

78
 FAST RESPONSE
Performance Metrics
(Example)
• Leadership shall ensure that Fast Response
process is effective and quality status is
displayed.

• How do you know the Fast Response process

is working?

• Any type of visual management can be used

such as a calendar, trend charts which
represent at minimum monthly data:
• The number of days Red or Yellow
• Number of issues Closed
• Average days open for closed issues

79
 FAST RESPONSE
PRR reduction activities

• Location with a high level of customer complaints (>24 complaints in last 12

months) shall have a special team created to work on complaints.

• Expectation against PRR reduction team:

• cross functional team
• identify systematic root causes of issues
• define action plan and regular follow up
• assign champion from the team for each new customer complaint
• implement verification station(s) for all the customer issues and high risk
failure modes

80
 FAST RESPONSE
What goes wrong ?

• Fast Response Meeting was started but stopped, because:

• It became a problem solving meeting (too long)
• No daily issues reported (-> weekly -> wind up)
• Issues remained open too long because of no regular feedback
• Practical Problem Solving Form or equivalent is not used
• No clear definition of what is a „significant issue”
• Problem solving in office not at Point of Cause
• Missing whys (Drill Deep) to find main root cause
• Read across (Drill Wide) is not completed
• Lessons Learned database available, but not in use

81
 Quality Systems Basics Plus

CONTROL OF
NONCONFORMING PRODUCT

Containment, Identification,
Segregation, Disposition

82
 CONTROL OF NONCONFORMING PRODUCT
Control of Nonconforming product, what are we searching for?

83
CONTROL OF NONCONFORMING PRODUCT

84
 CONTROL OF NONCONFORMING PRODUCT
FIFO present in all operations
• Minimize inventory and allows traceability of material.
• FIFO present in ALL OPERATIONS (Including repacking, kitting, buffers, WIP,
and any staging areas).
• Visual aids support all operations and standardized work.
• FIFO rotation – FIFO should occur on a daily basis unless otherwise noted by
the plant (in these cases FIFO may occur on a weekly basis).
• Ensure that FIFO is part of layered audit process.
• FIFO processes are documented and are part of standardized work.

FIFO Material In All Storage Locations

Material In FIFO Order Oldest Material to Operator First

Full Full
CMA Full Full

Empty
Empty

Supplier
Overflow

85
 CONTROL OF NONCONFORMING PRODUCT
Segregation

Nonconforming/suspect product shall be segregated to prevent unintended use

At the end of each shift, non-conforming product should be counted, documented,

and removed from the manufacturing area to a designated containment area.
Segregation areas shall be foot printed or otherwise identified.
Scrap table: Containment area:

86
CONTROL OF NONCONFORMING PRODUCT
SUSPECT
SCRAP DO NOT USE
OK FOR USE

TAG CONTENT TAG CONTENT TAG CONTENT

IN THIS SECTION IN THIS SECTION IN THIS SECTION

IS AT LOCAL IS AT LOCAL IS AT LOCAL

DISCRETION DISCRETION DISCRETION

PLT001 PLT002 PLT003

REQUIRED FOR SCRAP REQUIRED FOR REWORK, ANY COLOR (except red or yellow)
PRODUCT/CONTAINERS REINSPECT, SUSPECT FOR CONFORMING PRODUCT IS
PRODUCT/ CONTAINERS ACCEPTABLE
(SCRAP BINS PAINTED RED DO NOT
TAG SHOULD SHOW LAST
REQUIRE A TAG)
OPERATION.TO ASSURE
PROPER REINTRODUCTION

87
 CONTROL OF NONCONFORMING PRODUCT
Communication

The organization’s containment process shall include a Quality Alert notification

system to communicate the problem. Quality Alerts shall:
– Be posted and promptly communicated to all stakeholders.
 Internal Departments, Operators
 Tiered suppliers or vendors
 Customers
– Be used for internal or external issues (at least for FR items).

The Quality organization is responsible to issue, post and remove the quality alert.

NOTE: The Quality Alert should only be removed after corrective action has been
validated and the work instructions have been updated if appropriate.

88
 CONTROL OF NONCONFORMING PRODUCT
Communication
Quality Alert shall:
• Establish the tasks to ensure
customer requirements are met.

• Define the problem, the standard,

and the deviation to the standard

• Should include pictures or

samples explaining the deviation

• Should document operator review

and understanding by signing the
document.

89
 CONTROL OF NONCONFORMING PRODUCT
Communication
WHEN DO YOU CALL THE CUSTOMER?
• The containment worksheet shows that the potential quantity
exceeds the quantity found.
• The oldest material in-house exhibits the non-conformance .
• Intermittent problem with no clear starting point.

If Yes to any statement above communicate…

Needs to be a “live” conversation – no voice or email.

Contact External
A phone list for contacts is established.
Customer
Establish conference calls when required by customer.

90
 CONTROL OF NONCONFORMING PRODUCT
Containment

Organization’s shall have:

• A documented containment procedure to prevent identified

defects from flowing to the next customer.

• Containment Worksheet, Quality Alert, Containment Instructions,

Operator training records.

• A clear understanding of the standard and the deviation supported by a

good visual explanation of the required standard.

Note: Customer approval may be required during a containment activity where

tasks are performed to bring the product back to the standard (GM1411).

91
 CONTROL OF NONCONFORMING PRODUCT
Containment Worksheet
CONTAINMENT WORKSHEET
DEPA RTMENT: DEPA RTMENT CONTA INMENT OWNER: DA TE:

Laboratory G. Hall 06/01/2003

PRODUCT NA ME / NUMBER: 10066044
PRODUCT NONCONFORMA NCE:

Burr on flange
PRODUCT CONTAINMENT SCOPE
IDENTIFY ALL AREAS WHERE SUSPECT PRODUCT COULD BE LOCATED

POTENTIAL AREA SUSPECT PROD. VERIFICATION

LOCATION QTY. VERIFIED FOUND? QTY? RESPONSIBILITY

Receiving 500 P.S. 500 P. Smith

Laboratory 6 K.C. 6 T. Brown
WIP Storage Areas 1000 P.S. 1000 P. Smith
Outside Processing - (Plating) 1000 C.J. 1000 C. Jones
Scrap Bins 42 K.C. 42 C. Jones
Rework Areas 0 B.T. 0 C. Jones
Shipping Dock 0 K.C. 0 C. Jones
Heat T reater 0 P.S. 0 C. Jones
At Customer 0 B.T. 0 C. Jones
In T ransit 0 B.T. 0 C. Jones
Service Parts Operations 0 P.S. 0 C. Jones

TOTAL FOUND 2548 2548 C. Jones

SEGREGATE SUSPECT PRODUCT TO (location, as feasible): 2548 pcs to Containment Area

SORT METHOD (eg. visual, gage, mating part): Visual for burrs
SORT CRITERIA (clear pass / fail standards): Max Burr per standard
I.D. METHOD CONFORMING (eg. mark, tag, sign): White paint dot near defect area
I.D. METHOD NONCONFORMING (eg. mark, tag, sign): Mark defect with red paint.

92
 CONTROL OF NONCONFORMING PRODUCT
Rework
Re-Introduction

• All control plan inspections and tests shall be performed.

• A work instruction required to perform rework

• Customer approval may be required

• Product removed from the approved process flow should be reintroduced into
the process stream at or prior to the point of removal.

• Reintroduced product needs to be identified.

• Best practice would suggest that you do not run product more than twice.

NOTE: When it is not possible to reintroduce at or prior to removal: an approved

(Quality Manager) documented rework and inspection procedure shall be
used to assure conformance to all specification and test requirements.

93
 CONTROL OF NONCONFORMING PRODUCT
Customer Approval requested
• Supplier must request a customer approval for a product deviation
before ship parts. Without this customer approval, it is not allowed
ship parts with deviation to customer.
• Customer approval is limited for a period of time and/or quantity of
parts and supplier must manage it.

Identification & Traceability

• All parts with deviation must be identified as suspected till customer
approve them;
• Traceability of parts under deviation must be recorded by supplier
• Parts under customer approval shall be identified (part or box
identification – number of customer approval) before shipping to
customer
• Breakpoint shall be established and informed to customer

94
 CONTROL OF NONCONFORMING PRODUCT
What goes wrong ?

• Containment Worksheet does not list all the potential locations

• Containment Worksheet exists but not used

• Containment without standardized work

• Reintroduction not clearly identified (is at or prior to point of removal)

• Hidden rework processes

• Breakpoint communicated before defect really understood

• Customer not notified…but then finds problem !!

95
 Quality Systems Basics Plus

VERIFICATION STATION

The system of building quality in station through prevention,

detection, and containment of abnormalities

96
 VERIFICATION STATION
Verification Station Strategy, what are we searching for ?

97
 VERIFICATION STATION
First Time Quality

100%

Failures 1 Failures 2 Failures 3 Failures 4

70%

OP 10 VS OP 20

time

Root Cause Analysis,

Corrective Actions

98
 VERIFICATION STATION

Description, Roles, Responsibility

VERIFICATION STATION (VS) DESCRIPTION:
• A Verification Station is a process that keeps us focused on Building Quality
in Station through Feedback from the process. This is achieved by:
– A Verification Station operator reviews each part using a standardized
work inspection process and gives feedback to the Team.
– 100% In-Line or End of Line testing which can be considered as part of
feedback mechanism through audio/visual signals, notifies the team
there is a problem. Fault codes or data such as 3 in a row, 5 in an hour,
with an alarm limit goal of ‘1’ for each as the process matures.
– The use of variable SPC charts and notification for out-of-control
conditions.

99
 VERIFICATION STATION

Where Are Verification Stations Placed?

• At any point in the process or operation where there exists:
– High risk,
– Poor First Time Quality,
– High Risk Priority Numbers,
– Customer requirement/complaints,
– Pass Through Characteristics,
– Low capability (Ppk, Cpk) Any operation with a
Cpk or Ppk below 1.33 requires 100% control.

• Between departments or distinct processes at point of cause.

100
 VERIFICATION STATION
PROCESS DIAGRAM (Example)

Verification Station(s) can be placed anywhere in the process.

Alarm & Escalation should be applied to each step in the process.

101
 VERIFICATION STATION
Alarm & Escalation:

• Alarm limits are set based on type and number of defect found.

• Alarm limits can be divided into two groups PR&R type defect, and High
frequency low severity type defects.

Past Customer defects shall always have an

1 alarm of 1.

High frequency low severity type defects have

Variable
variable alarm levels based on the ability to detect.
based on:
3 Need,
process,
It is best not to have too many alarm levels so keep
situation it simple so it is clear when to call for help.

No Alarms = No Improvement

102
 VERIFICATION STATION
Alarm & Escalation:

When a defect is detected, feedback to the

appropriate team or individual

Plant
Management

Re
Superintendent /

sp
on
Shift Manager

on
The alarm process directs the support

ati

se
Supervisor
cal
functions to:
(Group Leader)
Es
• ‘Go and See’ the problem
• Apply containment Team Leader
• Initiate problem solving
Team Member

103
 VERIFICATION STATION
Alarm & Escalation :
The Tally Sheet:
• records the number of each type of problem by the hour.
• alerts operator when alarm limit is reached.
• is located at or near the point of inspection.
1st Hour 2nd Hour 3rd Hour 4th Hour 5th Hour 6th Hour 7th Hour 8th Hour
# Defects VS Alarm 6:00-7:00 Trigger
7:00-8:00 8:00-9:00
an Alarm! 9:00-10:00 10:00-11:00 12:00-1:00 1:00-2:00 2:00-3:00 Total
Trigger # 4:00-5:00 5:00-6:00 6:00-7:00 7:00-8:00 8:00-9:00 11:00-12:00 12:00-1:00 1:00-2:00
1 Scratches 6 ll l ll 5
2 Bolt Reject 1 l l 2nd Alarm is Escalated! 2
3 Lash Reject 4 ll l 3
4 Crank Torque 5 ll lll l 6

Trigger an Alarm
Alarm by shift not hour.

104
 VERIFICATION STATION
Immediate Response Process
If unable to fix
immediately then
need to initiate
formal Problem
Solving procedure

105
 VERIFICATION STATION
Problem Solving Process

Apply Fast Response Problem Solving (Example)

(Example)

106
 VERIFICATION STATION
Shop Floor Management
Defects Leaving VS Station - Feedback
Defects Entering VS  Dock Audit/Containment/Field Rep-Liaison Issues
Inspection of product (Attribute/Variable)  Formal Customer Complaints - Reports
Prioritizing of defects  Team Performance Data, FTQ & SCRAP Trend
Alarm Escalation Procedure Charts (over time), Direct Run, Safety.
Who/when
Immediate Responses – Record of
Calls
for help and escalation.
Leadership meeting every shift
Meeting Assignments
Pareto Analysis, Defects over time
 Attendees Sign-in Sheet

Problem Solving –
Driving fixes into station - BIQ
 Team select new problems based on
pareto analysis, assignable cause.
Team reports out weekly on status
 Tracking R, Y, G Reviewed for
roadblocks, problem escalation.

107
 VERIFICATION STATION
Shop Floor Management
(Example)

108
 VERIFICATION STATION

CUSTOMER ACCEPTANCE REVIEW & EVALUATION (C.A.R.E)

• Powertrain suppliers shall implement C.A.R.E.

• Verifies that process controls are effective.

• Applies to customer satisfaction items that are part related.

e.g.: Pass Through Characteristics, Labeling, Past Formal Customer Issues

• The Plant Manager & Quality Manager should facilitate activities.

• The Alarm Limit is Always ONE!

109
 VERIFICATION STATION
What goes wrong ?
• Verification Station strategy is not flexible

• Defects on tally sheet not most critical type of defect

• Alarm limit is set too high

• Only data collection without analysis

• Immediate responses do not initiate preventive actions

• Root causes are not defined (missing DD approach)

• Verification Station is not owned by Management

• No C.A.R.E implemented at Powertrain suppliers

110
Quality Systems Basics Plus
STANDARDIZED WORK
WORKPLACE ORGANIZATION-5S
A clean, well-organized work environment.

STANDARDIZED WORK (SOS)

What are the Major Steps, how long should it take?

OPERATOR INSTRUCTIONS (JES)

Detailed Steps for What, How, and Why.

MANUFACTURING GAGE CONTROL

Product is qualified per plan to known standards & specifications

111
 STANDARDIZED WORK
Standardized Work, what are we searching for?

112
 STANDARDIZED WORK
Safety requirements on workstation (Example)

113
 STANDARDIZED WORK
Potential ergonomic issues (Example)

114
 STANDARDIZED WORK
Ergonomics standards
Methodology

> Head
• Work operations are analyzed
motion by motion.

Working Position
>= Heart
• For each motion, a ergonomic
> Upper Thigh load is defined according to
<= Upper Thigh
predefine rules.
• A penalty is associated to each
<= Lower Thigh
level of ergonomic load.
• The ergonomic load of the
whole operation is the sum of all
Left Hand
motion penalties.
Right
Hand • Step #1: Evaluate ergonomic load of work operations

• Step #2: Identify the most painful operations

• Step #3: Implement action plans to improve

115
 S-1: SORT S-2: SET IN ORDER
Divide the needed and unneeded A place for everything and everything
items at the job site, removing in it’s place.
any unneeded items.
Before

116
S-3: SHINE - Eliminate the source of dirt and leaks (oil, air, water, etc.).

Before After

S-4: STANDARDIZE Standardize the area visually and mark location of each item.
LIVONIA
COLOR CRIB CODE
Floor Marking Application

QUALITY ITEMS
BLUE OPERATION GAGE TABLES & GAGE CARTS
QUALITY INFORMATION DISPLAYS M-2307
OTHER QUALITY RELATED ITEMS

PRODUCTIVE MATERIAL
GREEN RAW STOCK, PURCHASED PARTS
IN-PROCESS MATERIAL M-2311
FINISHED MATERIAL

SCRAP MATERIAL
SCRAP BINS
RED M-2309
SCRAP CARTS
OTHER SCRAP RELATED ITEMS

TOOLING AND SUSPECT MATERIAL

YELLOW TOOL CARTS
TOOL TABLES M-2310
SUSPECT MATERIAL

ALL OTHER ITEMS

WHITE TRASH BINS
HOUSEKEEPING STATIONS M-2308
ALL OTHER ITEMS

117
S-5: SUSTAIN – Ongoing compliance and continual improvement.

• Leadership commitment and involvement (top down).

• Drive 5S throughout the organization.

• Incorporate housekeeping into Operator Instructions.

• Training is the key to continual improvement.

• Establish formal housekeeping audit/checklists.

• Incorporate 5S compliance into a formal Layered Process Audit.

• Keep trying to find a better way.

118
 STANDARDIZED WORK
Different type of wastes (Example)

Variations
Over production

Inventory

Material
Movement

Waiting
Painfullness

Motion

119
 STANDARDIZED WORK
Organizational focus
Team Member Team Member

• Participate in developing
Standardized Work (SW) &
contribute ideas
Team Leader • Suggest improvements to
SW
• Provide feedback to Team
Group Leader
Leader on SW
• Use SW as the basis for
Quality, Maintenance, Material problem solving & training
• Follow Standardized Work
Operations, Engineering, Safety

The function of everyone, including the Support Staffs,

is to support production Team Members.
120
 STANDARDIZED WORK

121
 DISPLAY OF STANDARDIZED WORK (SOS)
Standardized Work shall be displayed at or near each operation.
• Operations performed same way every time.
• Reduces the risk of omitting components. WORK
• Quality checks and frequency are indicated. ELEMENTS
• Process improvements easily identified.

• Training is simplified and consistent.

OPERATOR • Reminds operator of correct sequence.
MOVEMENT • Alerts operator to safety concerns.
• Assures operator is following approved
process (Layered Process Audits).

• Assures leadership operation is running as approved.

• Operator knows if equipment is showing signs of wear. OPERATION
• Machine and operator hand work and walk time separated. CYCLE TIME
• Time allocated for quality checks are included.

Standardized Work provides a basis for effective Operator

Instructions.

122
 JOB ELEMENT SHEET

Purpose:
To provide detailed training information for new team members.
To bridge the gap between engineering information and shop floor
knowledge.
To provide a baseline for auditing, problem solving, continuous
improvement, rebalancing of work.
To provide key points for each work element.

Types of Key Points :

1. Safety Points in a job operation which could result in team member injury
2. SuccessPoints on which the success or failure of a particular job depends
3. Hints Points which make the job performance easier
4. Quality Points that describe quality requirements for an operation

123
 JOB ELEMENT SHEET

124
125
 STANDARDIZED WORK
Start-up process
Start-up process needs to be applied:
• start of production,
• part number change,
• tool change,
• after maintenance activity,
• after significant production stop, etc.
Start- up process has to be described in SWI, special instruction or checklist.
Start up instruction includes a list of the checking tasks to be carried out and
recorded:
• availability and smooth running of manufacturing and control
equipment, error proofing and PPE,
• environmental conditions at the workstation (cleanliness, lighting,…),
• process/product parameters with tolerance limits
• availability of components and materials.
Start up instruction defines first-off parts validation. Traceability to be ensured till
validation completed, result is documented.

126
 STANDARDIZED WORK
Boundary samples

• Responsibilities for definition of samples are established (including customer

if required). At boundary samples tolerances for each characteristic and
decision criteria are clearly established.
• Samples (some cases they can be replaced by photos) are clearly identified
and in accordance with latest design and approval status.
• Usage of samples are described/referred in instructions, used in training
process.
• They have easy access in area where they are used, storage preserves
original condition.
• Samples are periodically reviewed and its result is documented based on
acceptance criteria and customer feedback/complaint.

127
 STANDARDIZED WORK
Boundary samples (Example)

128
 MANUFACTURING GAGE CONTROL

Quality is responsible for the gage procedure.

Operator Instructions required for all manufacturing gages

Last Part Checked should be held for confirmation of last known good part

Gages shall comply with GM specific requirement “GM 1925 Fixture Standards.”

Gage R&R studies to be repeated at a defined frequency

Gages shall be calibrated according to manufacturer’s recommendations

Correct use of gages and gage condition to be considered in Process Layered

Audits

129
 STANDARDIZED OPERATIONS
What goes wrong ?
• Standard Operation Sheet is created for customer auditor and not for
• training of new operator
• supporting Layered Audit
• analyzing jobs for improvement opportunity
• problem solving

• Hints are missing to describe how to perform a step

• Reasons are not defined

• Less visualization more description

• Gage R&R was not done for attribute gages or not repeated

Try to perform operation based on current JES.

130
 Quality Systems Basics Plus

LAYERED PROCESS AUDIT

Were Leadership Layered

Process Audits Performed?

131
 LAYERED PROCESS AUDITS
Layered Process Audit, what are we searching for?

132
 LAYERED PROCESS AUDITS
Process explanation
Choose the  Pick the station to be audited based on the
Workstation LPA schedule

Conduct the Audit  Follow LPA Check sheet

 Immediately inform all Team members
about the audit results.
 Record all deviations on LPA Check sheet
Give feedback & and Countermeasure sheet.
document results  Assign target close date & champion
 Implement suggested countermeasures
as soon as possible.
 Follow-up on open items, make sure to close
by target close date.
Follow-up  Elevate problem to higher level after target
Close date.
 Perform Management review.

133
 LAYERED PROCESS AUDITS
LPA Check sheet (Example)
HEADER: Enter the System Name
Product line or an area of the Plant
1. Molding
2. Paint/Coating
3. Assembly
4. Warehouse/Shipping

Section #1:
COMMON Workstation Questions

Section #2:
UNIQUE Quality Focused
Questions

Section #3:
COMMON Manufacturing System
Questions

134
 LAYERED PROCESS AUDITS
Examples of Work Station issues to be audited
 Safety practices and Personal Protective Equipment are being
followed

 Specified tools, gages and materials are available & being used

 Standardized work & quality standards are understood & followed

 Escalation process is functioning properly

 Workplace Organization & Visual Management standards are

followed

 Material storage processes are followed – FIFO, Max/Min levels

 Parts stored in correct containers & no container mis-use

 Containers identified & located in designated location

135
 LAYERED PROCESS AUDITS
Examples of Quality Focused issues to be audited

 Containment / corrective actions implemented following customer

concerns

 Error proofing is functioning correctly & has been verified

 High risk elements are controlled to prevent known problems

occurring

 Specified quality checks are being performed & recorded

 Evidence that escalation process defined & functioning effectively

 Special process audits (CQI 9, GP12 etc.) are included in specified

quality checks

136
 LAYERED PROCESS AUDITS

Examples of Manufacturing System issues to be audited

 Completion of safety talks & tours

 Compliance to Process Control Plans

 Conformance to Workplace Organization standards

 Correct use of the escalation process

 Effective Problem solving & countermeasure implementation

137
 LAYERED PROCESS AUDITS

Examples of Manufacturing System issues to be audited

 Completion of safety talks & tours

 Compliance to Process Control Plans

 Conformance to Workplace Organization standards

 Correct use of the escalation process

 Effective Problem solving & countermeasure implementation

138
 LAYERED PROCESS AUDITS
Scheduling and tracking
Executive
CEO/Executive Applies to all
Managers
Managers
// Directors
Directors
disciplines &
Quarterly
Quarterly/ / functions
minimum
minimum

Plant
PlantManager
Manager
11time / month
time / month

Manager
Manager / Engineerssupport staff
/ Management
1 1time/week
time/week

Supervisor / Team
Supervisor LeaderLeader
/ Team
DailyDaily
/ Weekly

139
 LAYERED PROCESS AUDITS
Scheduling and tracking

140
 LAYERED PROCESS AUDITS
LPA Check sheet Evaluation

NC

N = Deviation Found
Y = Meets Standard
If the item is Corrected
Immediately

141
 LAYERED PROCESS AUDITS
What goes wrong ?

• Mixed with product or process audit (1/month)

• Audit list is not flexible (once fixed)

• Containment activity is not in LPA

• Deviations corrected during audit are not documented (NC)

• „Daily ticking activity” but no real audit

• Result of 5 minutes instead of complete shift

• Corrective actions not defined/followed (best is a hand written action plan)

• Stayed on daily level, not layered

• No management follow up

• Only applied to manufacturing not across entire organization

142
 Quality Systems Basics Plus

MAINTENANCE

Maintenance planned and executed in a proper way

143
 MAINTENANCE
Maintenance, what are we searching for?

144
 MAINTENANCE
Process Roadmap
Operational New Equipments

Equipment Efficiency
Processes Qualification

Preventive Maintenance
Avoid malfunctions

Use the Equipments

Detect warning signals

Works Management Corrective Maintenance RS

Treat different signals Breakdown Restart Equip. / treat root causes

Spare Parts Management

Specific

Costs
Maintenance Maintenance costs Management
processes Maintenance plans management

Support Maintenance standards management

Processes Lessons learned

145
 MAINTENANCE
Maintenance Management System
Business

Production
Plan
Production
Deployment
PLAN

DO
Partnership
Scheduled, Standardize Tasks Execute Tasks

Maintenance
Production, Maintenance, Quality, Maintenance
Engineering, WFG, Supplier, etc.

70

CHECK
60
ACT

50

40
Step 1
Step 2
30

20

10

Problem Solve and Countermeasure Cleaning

Time
Inspection
Time
Failure X Total
Losses
Number of
Tags

Review & Update the Standard Did Plan Deliver the Right Results?
146 Checks with established frequency
 MAINTENANCE
Total Productive Maintenance (TPM): Key Principles
TPM : Continuous Improvement of the reliability of the equipment based on the
daily involvement of all the operational on the shop floor

The action plans are driven by The actions plans are driven by
severe issues (breakdowns) warning signals (symptom)

1 severe 1 severe
breakdown breakdown
Perpetual Perpetual
Motion Motion
10 breakdowns 10 breakdowns Action
Plans
Action
100 minor downtimes Plans 100 minor downtimes

1000 warning signals before 1000 warning signals before

malfunctioning malfunctioning

Without
With TPM
TPM

147
 MAINTENANCE
Resources available
• Maintenance plans should be incorporated into each facilities Master Business
Plans, which could span a multi-year timeframe. Planning will help balance
workload, ensure proper support is available for the teams, and to establish a
TPM glide path to the targets set by leadership.
• Organization shall establish a proper support in all shifts (night, weekend,
overtime etc.) for preventive & corrective maintenance.
• All necessary skill shall be available for the teams all time (e.g.: Electric,
Automation, Mechanic, etc.). This information shall be posted on Flexibility
Chart.
• Workload planning is established & followed. Organization is fully compatible
with manufacturing activity (e.g.: site at full capacity with 3 shifts with no
sufficient preventive maintenance).
• Proper maintenance facility/equipment shall be available to maintenance
team/operator (e.g.: standard toolbox, safety equipment – PPE, adequate place,
etc.)

148
 MAINTENANCE
Continuous Improvement – Maintenance Activity
SPUNTATRICE WERA Tg. 961240026 SPUNTATRICE WERA Tg. 961240024

Identify and Eliminate Waste cabina elettrica

28
25
A7
PLAN

24 centralina idraulica zona frese

7 24

 Correction
cabina elettrica A6 7
A10 12 13 30
9
centralina idraulica zona frese 11 mandrino T.P.P. A4
33 8

DO
28 A5
11

 Over
8 10a 29
mandrino T.P.P. 30 29 33
25 20
34
9 34

13 17

12
35
Production 23
18

 Motion
A1 A2 zona carico
1 3 Q15
10 14 A3

 Material
zona carico Q16
23 1
2
20 3 14 18 Q16 26
5 1 26 27

Movement
5
Q15 zona scarico
27 31
2 12 10 4
19
32

 Waiting
zona scarico quadro comandi 22
31 4 32
31 19 21

21

 Inventory
quadro comandi 22

Q6 LEGENDA

 Processing
banco collaudo
I INIZIO TURNO M MENSILE A ANNUALE

F
FINE FINE TURNO TM TRIMESTRALE B BIENNALE

 Unevenness
banco collaudo St SETTIMANALE SM SEMESTRALE
Q6 pulizia lubrificazione ispezione sicurezza

 Overburden

CHECK
ACT

Problem Solve and Countermeasure The Unexpected

(if necessary)

149
 MAINTENANCE
Preventive Maintenance Planning (Example)

Weeks

List of
equipment
Maintenance
operations

150
 MAINTENANCE
Preventive Maintenance Planning (Example)

Weeks
Always red
=> Frequency
must be
increased
List of
equipment

Always green
=> Frequency can
be decreased
List of maintenance
operations to perform

0,3 Operation postponed

0,3 Operation not performed Document allows:
0,3 Near miss breakdown. Emergency reparation needed - To follow up preventive
0,3 OK, no reparation needed operations
0,3 Limit, reparation needed, no emergency - To identify maintenance plan
151 improvement
 MAINTENANCE
Preventive Maintenance Planning – Standard Work
• Standardized Work documentation lists maintenance tasks to be performed and
provides further detailed information; inspection method, safety equipment
required, safety precautions, required tools, required sequence, time, criteria for
OK/NOK, and key points to consider.
• Standardized Work is an effective tool for job instruction training and problem
solving, and a basis for continuous improvement activities.

Maintenance
Tasks

Task
Instructions
(Standardized
Work)

Training
Post at Equipment or on Problem Solving
a TPM Board CIP
152
 MAINTENANCE
Preventive Maintenance Planning – Inspection Check Sheet
• Check Sheets should also be developed and used for daily routine
maintenance tasks, where applicable, at the operators workstation. List the
tasks designed to maintain equipment performance and prevent unscheduled
downtime.
• Check sheets should be visualized (e.g. Workstation board).
• Supported by Task Instruction Sheet document’s where further detailed
instructions are required.

Task
Instructions
(Standardized
Work)

Daily Workstation Check Sheet

153
 MAINTENANCE
Level 1 Maintenance – Principles
• The operator, who is always near the equipment, is able to ensure all the
checks and the maintenance basic operations. He prevents the degradation
of the equipment

I take care of my car I take care of my machine

Visual checking Check Oil level Check the

Check cooling liquid Check Oil level parameters
level

Detect
Cleaning Scratch on anomalies
the paint ?

Small deviation
detection

Clean Fill the washer Change the

Basic tuning
reservoir fasteners
Self maintenance Clean
Change the Check safety
Check Tyre pressure
lamps devices

154
 MAINTENANCE
Level 1 Maintenance – Operator Maintenance
• Production team members are an important part of our maintenance system
because they know the equipment the best. Working with the machine or
equipment on a daily basis allows them to quickly know when something is
wrong, what maintenance is required to keep it running smoothly, and the
improvements that can be made to the equipment and workplace.
• Operator maintenance tasks are simple in nature. They include:

 Create/maintain visual management  Change tooling, etc.

and 5S in their workplace
 Equipment fault resets
 Clean & Inspect equipment  Make minor repairs &
 Perform daily maintenance (lube, adjustments
etc…)
 Maintain performance
 Quality checks and adjustments documentation
 Diagnose equipment-related defects

155
 MAINTENANCE
Operator Maintenance – Things to check (visual) (Example)
Pressure on Valves Flowmeter Detection of
manometers loosening

bar

Needle in the green OK: marks OK: marks are

zone Closed position in Indicator between aligned misaligned. The
the green zone the red lines bolt is untighted

Visual standard to immediately detect deviations

MAX

H23
MIN M C10
A
X

M
IN

Lubricant Level Lubricant

Level
Reference Reference
156
 MAINTENANCE
Spare part management
List of Critical Spare Parts (Example)
Stock
Drawing # Id # MNEMO Supplier Supplier Reference DESIGN Critical
(mini)
1045949300 4301 ARELEC 351128 AIMANT DIA16 vis FHcM3 5 O
1045949300 4302 VANEL T050.050.0200A RESSORT DE TRACTION 1 O
1045949300 4306 CAPRI CODEC SA 672107 CONDUIT STANDARD NOIR ADAPTALOCK PG21 4 O
1045949300 4341 RADIOSPARES SAS 187-7621 CLIPS SERRE CABLES 1 N
1045949300 4342 RADIOSPARES SAS 316-872 CLIPS SERRE CABLES 1 N
1045949300 4345 CAPRI CODEC SA 681607 EMBOUT DE GAINE ADAPTALOCK 2 O
1045949300 4347 CAPRI CODEC SA 671607 CONDUIT STANDARD NOIR ADAPTALOCK 2 O
1045949300 4348 CAPRI CODEC SA 211600 REDUCTEUR DE PRESSE ETOUPE PG21 / PG16 1 N
1045949300 4349 LUTZE SA 601005 REDUCTEUR DE PRESSE ETOUPE PG16 / M32x1,5 1 N
1045949003 4305 VBNG BOSCH REXROTH SAS 0822390607 VERIN COMPACT A GUIDAGE 1 O
1045949003 4307 VCARNG ASCO JOUCOMATIC SA 42900028 mini verin filete s.effet 1 O
1045949003 4309 LEGRIS SA 3101 04 19 RACCORDS INSTANTANES 1 O
1045949003 4340 STAUBLI FAVERGES COMBITAC 34.0020 CONNECTEUR FICHE 1 O
1045949011 4338 LUMBERG RKMF 3/05M EMBASE FEMELLE M8 3 POLES 4 O
1045949011 7301 SDEPG HBM FRANCE SARL K-WA-T-010W-32K-K2-F1 CAPTEUR DEPLAC. INDUCTIF 1 O
1045949011 7304 SQ_ESSNG IFM ELECTRONIC KF5001 DETECTEUR DE PROXIMITE 1 O
1045949011 7305 IFM ELECTRONIC EVC008 CONDUCTEUR A USAGE PARTICULIER EQUIPE 1 N
Identification
1045949011 7306
of LUMBERG RSMCK3 PRISE DE COURANT ET CONNECTEUR 1 N
the part7307
1045949011 onSQ_TAMNG
the Part XS1N05PA311S
SCHNEIDER ELECTRIC France reference, description
DETECTEUR & supplier
DE PROXIMITE KE2-0000015 1 O
equipment
1045949011 7308 LUMBERG RSMCK3 PRISE DE COURANT ET CONNECTEUR 1 N
1045949011 7312 SQREPBNG / BOSCH
SQTRABNG
REXROTH SAS 830100631 CAPTEUR SERIE ST6 2 N

Stock Critical
Needed Part
157
 MAINTENANCE
Spare Parts Management
Identification of the critical spare parts
 Criteria to define critical spare parts shall be defined according
to procedure by organization
 List update shall be conducted periodically based on
maintenance results

Spare parts storage

 Storage conditions: suitable conditions shall be defined
(procedure) in order to avoid damage
 Stock management: min condition shall be managed
 Inspections & verification: periodically the physical inspections
of spare parts shall be defined and performed

158
 MAINTENANCE
Customer Tools Management
Scope
 Tools owned by the customer
 Tools dedicated to a specific part reference
Contractual requirements
 Identification
 Customer approval
 Logbook sheet, records & tool follow up
Storage conditions
 Rules related to store conditions after end of mass production phase
and handling shall be established and followed.
 Records of tooling cleanness process shall be kept
Sub-Tier List
 A list of all tooling that are in the sub-tier shall be available
Tooling replacement
 When the tooling is replaced (for example due to worn out condition)
an approval process (for example PPAP) shall be followed.

159
 MAINTENANCE
Customer Tools Management
CST Identification

Part
Identification

Tool
Reference

CST Logbook Sheet

• A logbook is available for each CST
• In the logbook, the following information are tracked:
• Production history (nb of parts produced, functioning time, etc..)
• Breakdowns history
• Records of maintenance activities
• History of modifications (with customer approval)
• Quality records (if existing control plan)

160
 MAINTENANCE
Different measures of effectiveness 7 days X 24 hours = 168 hours

Legal Constraints

Heavy Revamping

No production need

Planned production Stops

(Outside production time)

Calendar Time
Normal Downtime
(operator breaks, team management)
Unexpected Downtime
(Energy loss, lack of manpower, downstream
saturation , lack of supply)
Breakdowns &

Planned Production Time

Opening Time
micro-stops
Functional Downtime
(change of batch)

Loss on cycle times

Non-quality Loss

Productive
Time
Maintenance involvement Production of good parts

161
 MAINTENANCE
TPM – Overall Equipment Effectiveness
• OEE is a common metric used for measuring TPM which tells us how
effectively our equipment is running.
• Improved as availability and productivity go up and in-process defects or rework goes down.
• Reduced by equipment-related losses.
• OEE as a concept represents the integrated effects of the Six Big Losses
• Improvements in OEE result from reductions in the Six Big Losses

Availability % X Performance % X Quality % = OEE

Right Capacity With No
Reliable (speed) equipment
Equipment Defects
building product as
needed

Availability Performance Quality

1. Equipment Failures 3. Idling and Minor Stops 5. Defects in Process

2. Setup and Adjustment 4. Reduced Speed 6. Start-up and Reduced Yield

162
 MAINTENANCE
What goes wrong ?

• No preventive maintenance: they are waiting for breakdown …  risk of

major disruption
• Preventive operations are always postponed & frequency are not respected
causing breakdowns
• No maintenance records  enable to analyze situation & improve reliability
• Spare parts stock is not correctly manage: “dead references”, critical spare
parts under mini level,…  risk of major disruption + costs
• L1 not well performed  maintenance overload, preventive planning is not
correctly done  breakdowns
• Manufacturing planning is established without taking into account
maintenance  preventive is not performed correctly  breakdowns
• Skills are not available everytime  breakdowns can last too much time

163
 QSB implementation - Service Provider Support
Approved Providers Contact Information Website Address Symposium
Neil Endley
Aktrion Bridge Cell: +44 7595 337 288 www.aktrionbridge.com x
neil.endley@bridge.eu.com
Jan Seeger
Formel D Mobile: +49 171 889 0006 www.formeld.com x
jan.seeger@formeld.com
Wim Martens
G & P Quality Management BVBA Cell: +32 495 22 78 55 www.gpqmbvba.com
wim.m@gpqmbvba.com
Alexander Nieland
Invenio GmbH Engineering Services Cell: +49 176 11899 220 www.invenio.net x
Alexander.nieland@invenio.net
Risto Bamberg
QMM Engineering Service GmbH Cell: +49 163 5590166 www.qmm-engineering.com x
rbamberg@qmmgmbh.de
Dariusz Grzegorczyk
Team Prevent Poland Sp.z o.o. Cell: +48 504 091 843 www.teamprevent.pl x
dariusz.grzegorczyk@teamprevent.com
Laurent DEFER
Trigo Group Cell: +33.6.07.86.58.83 www.trigo.net x
Defer.l@trigo.net

164