LEAR Supplier Communication Day Munich, Germany April 27, 2005
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- Slide 1
- LEAR Supplier Communication Day Munich, Germany April 27,
2005
- Slide 2
- 12:00 13:00 Supplier Arrival and Gathering 13:00 13:10 Opening
Comments..Michael Hartig 13:10 13:20Supplier Quality Video 13:20
13:35Sourcing Strategy .Michael Hartig 13:35 13:45Supplier
Readiness strategyElie Ghazal 13:45 14:00Program Management
APQP..Spencer Gill 14:00 14:20Launch Readiness.Bo Carlberg 14:20
14:40Supplier Quality..Alejandro De Icaza 14:40 14:50Supplier
Development...Michael Hartig 14:50 15:00Closing Comments.Joe Zimmer
Agenda
- Slide 3
- Michael Hartig Lear Corporation Vice President, Purchasing
Europe, Africa & Asian Pacific Operations Sourcing
Strategy
- Slide 4
- Supplier Communication Meeting Munich, Germany April 27,
2005
- Slide 5
- Worlds fifth largest automotive supplier Fortune 129 company
23rd fastest growing company in the US over the last 10 years Over
360 facilities in 34 countries with over 110,000 employees 2004
sales $17 billion - up 8% from 2003 Record $3.8 billion, 3 year
backlog Leader in the automotive interiors, electrical distribution
and electronics Global JIT network Lear Business Profile
- Slide 6
- Sales in $ Billions * Terminals and Connectors SEAT SYSTEMS
OVERHEAD SYSTEMS DOOR SYSTEMS FLOOR & ACOUSTIC SYSTEMS
INSTRUMENT PANELS ELECTRICAL & ELECTRONICS T & C* Total
Interior Capabilities Growing Sales and Capabilities
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- North America Canada United States Mexico Central America
Honduras South America ArgentinaBrazil EuropeAustriaBelgium Czech
rep.
FranceGermanyHollandHungaryItalyIrelandPolandPortugalRomaniaSpainSwedenTurkey
United Kingdom Africa Africa Morocco Morocco South Africa South
Africa Tunisia Tunisia AsiaChinaJapanIndiaPhilippinesRussia S Korea
SingaporeThailandAustralia Europe 36% US/Canada 54% Asia, Mexico
and the Rest of the World 10% 2004 Sales $17.0 Billion Lears Global
Presence
- Slide 8
- Joint product development Access to automotive market also for
smaller suppliers Long term cooperation with Preferred Suppliers
Support to manage complex JIT logistics Support in international
growth Supply to Premium Brands through Lear This development
offers substantial opportunities for Suppliers to grow with Lear
Supplier Opportunities
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- A First Class Supplier Delivers outstanding quality Is highly
experienced Has competitive overall costs Is strongly customer
focused Is financially stable Is Competitive in the Automotive
Environment Supply Base Requirements
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- Expectations: Open book calculations, cost breakdowns Target
costing Savings proposals and VAVE actions Commitment to yearly
cost reductions (LSA) Technical support LCC manufacturing
capabilities Accurate tooling follow-up and timing plan
Professional change management before and after SOP Tooling audit
acceptance Sufficient engineering capabilities Supply Base
Requirements
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- Supplier must be ISO 9001, QS 9000 or TS 16949 registered
Support Advanced Product Quality Planning and control plan (APQP)
Perform a production trial run Obtain full Production Part Approval
(PPAP level 3; IMDS) Supplier Rating System (SRS) Environmental
management program in progress Electronic Data Interchange (EDI)
capabilities The Fulfillment of Quality Requirements is a Must!
Supply Base Requirements
- Slide 12
- Final Supplier Selection will be determined by Sourcing
Committee PurchasingEngineering Program Mgmt OperationsQuality
Supplier Development Decision Criteria: Quality Engineering
Capabilities Logistics LCC Capabilities Product Innovation Total
Cost Supplier Selection Process
- Slide 13
- Thank You
- Slide 14
- Elie Ghazal Lear Corporation Vice President, Quality
- Slide 15
- Supplier Development -Purchasing Program Management Process
Concept Development Planning Prototype Post Launch Pilot Launch/SOP
IPD Launch Mfg./Supplier Readiness Supplier Quality- Supplier
Quality Group IPD Red/Yellow/critical Suppliers Sourcing Decision
Input Supplier Award SUPPORT Supplier APQP Tracking Program MGMT
CFD Info sharing Populating Profile C O M M U N I C A T I O N
- Slide 16
- Thank You
- Slide 17
- Spencer Gill Lear Corporation Director, Global Business
Practices
- Slide 18
- LPMP / ProFile Lear Program Management Process - The One Lear
Program Mgmt Process - All Products - All Customers - Encompasses
Development & Launch - Cross Functional Team - Program Managers
are Responsible ProFile - Web based Software - Cross Functional
Teams Manage - Timing Plans - Open issues - Documents - Parts -
Suppliers - Stats 900 Projects, 12k Users, 75k Issues, & 150k
Documents
- Slide 19
- Supplier APQP Process Supplier APQP Prototype Prelim. SC/CC
Review Engineering Release DFMEA DV Test Equip & Facilities
Review Gage & Fixture Review Control Plan Feasibility 31 Items
Pilot Packaging Approval SC/CC Review Engineering Release Tool
Kick-Off Heat Treat Review Process Flow / Floor Plan PFMEA
Pre-Launch Control Plan Process / Operator Instructions Production
Tooling Complete Dimensional Approval Appearance Approval Int. Mat.
Data System Cert Team Feasibility Run at Rate PPAP Submission PV
Testing Doc & Process Review Launch PFMEA Control Plan Launch
Containment Plan Ram Up Plan PPAP Approval
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- LPMP Supplier APQP OEM Timeline Proto 1 MRDRFQProto 2 MRDPilot
1 MRDLaunch MRDPilot 2 MRD Planning Prototype 1 Prototype 2 Pilot
Launch Part Level Supplier APQP When do we know?
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- On Line APQP Speed is Critical to our Success! - Real-time by
Part Information - Correct, & High Quality Information -
Accurate Dates - Quality Documentation
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- Lears Expectations Real-time - Use of the On line APQP in
ProFile - By Part Current Timing and Documentation Correct and High
Quality Information - Single point contact for timing and risks -
Same person you hold responsible for launch success On line
APQP
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- How to enroll? On Line APQP in ProFile
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- Click on the Supplier Information link
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- A new window will open Click on the Lear link
- Slide 26
- DETAILED INSTRUCTIONS FOR SUPPLIER ACCESS TO LEAR
APPLICATIONS
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- To Login On Line APQP in ProFile
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- Click on this link to enter the ProFile System. Tip: The
previous steps can be skipped by typing the following in your
browser address bar: https://access2.lear.com
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- This is the list of Programs you are listed as a Supplier. ie
Vehicle and Lear Product These are the components
- Slide 30
- Slide 31
- Prototype Phase Pilot Phase Launch Phase
- Slide 32
- Click here to see a list of Supplier Key Dates
- Slide 33
- Auto Status Colors: Green until 2 weeks before Target Turns
Yellow 2 weeks before Target Turns Red on Target Date Flagging as
Risk Yes overrides auto-status and makes status red! Blue means
item has been completed
- Slide 34
- Click Notify Lear SQE When Complete
- Slide 35
- Next Steps - Go to www.lear.com Supplier Info Web Apps to
Establish Supplier Adminwww.lear.com - Supplier Admin grants
ProFile APQP access to your Program Managers (or acting PMs) - Go
to Web Apps or directly to
https://access2.lear.comhttps://access2.lear.com - Keep part APQP
up to date in the On Line system - Flag items as a risk as soon a
it known LPMP / ProFile
- Slide 36
- Thank You
- Slide 37
- Bo Carlberg (Presented by Elie Ghazal) Lear Corporation
Director, Manufactoring Readiness
- Slide 38
- Launch Manufacturing and Supplier Readiness MISSION ; To Assure
FLAWLESS LAUNCHES ! Means; Assure that LEAR Plants, and LEAR
Suppliers, Have a PLAN, are ORGANIZED, CAPABLE, and COMMITTED, and
by Cross Functional TEAMWORK, Fulfilling CUSTOMERS and LEAR
DELIVERABLES, EXCEEDING EXPECTATIONS ! Mission Statement
- Slide 39
- What is a Launch ? Its Not --- !! A One Day Event, at SOP
Business as Usual Something that Program and Engineering are doing
A Task, that we will do when things have calmed down a little It Is
--- !! A Complex, All Consuming Time Period, that varies much from
the normal Plant Deliverables, Outlining the foundation for the
next 7 Years, that Requires.. Planning, Dedicated Organization,
Extensive Communication, TEAM Work, and Committed People, that has
Managements Commitment and Support ! Launch Definition
- Slide 40
- Organization
- Slide 41
- Launch Team have extended experience in Plant Operations,
Program Management, Supplier Readiness, Logistics and Engineering
Launch Managers have detailed understanding of Lear expectations
Launch Managers are trained in Best Practices Launch Managers are
trained in LEAN Principles Launch Managers are skilled enough, to
understand, where Expert Assessments are needed, and know where to
find them within LEAR Launch Managers is on board 8-12 months prior
to SOP Launch Managers utilize the IPD Launch/Mfg. Readiness
Handbook, and LEAN Principals Check List, as a base, for their
Launch Assessments Launch Managers should be used for Best
Practices, LEAN Principles and Design For Assembly Launch Managers,
have extended experience, and we will help our Suppliers, to become
ready for Launch ! Launch Mfg./ Supplier Readiness TEAM
- Slide 42
- We are an Audit Team, verifying the Status of our Launches in
LEAR Plants and at our Suppliers. How is the Launch Team Working We
are a Recommendation/ Resolution Team, Driving Acceleration and
Resolutions, on a Divisional Level. Raising The Flag, to Protect
LEARs Launch Performance. We are an Action Team, when Rating is
RED, helping Launch Manager / Plant and Suppliers, in a very Hands-
on way, Leading Run@Rates, Getting the Decisions made, Working with
the Suppliers for Support and Resolution, Hitting our Deliverables,
Where and When it has to Happen.
- Slide 43
- 4 Launch Readiness Reviews - LRR Review #1Review #2Review
#3Review #4 8-12 months prior to Launch 6-8 Months prior to Launch
2-4 Months Prior to Launch 1-2 Months prior to Launch Launch
Readiness Assessment Plant Program Presentation Launch Manual
Overview Review of Deliverables and Roles / Expectations Est.
Communication List Supplier Awareness Review - Expectations Launch
Readiness Assessment APQP review Open Issue list Supplier Readiness
Assessment Process Expert Assessments, if Needed Supplier Launch
Plan and Organization Established Manufacturing Readiness Report
Review of open Red issues, and Closing Actions Review of Hire,
Training and Containment plans Review Manufacturing Process and
Run@Rates Supplier Manufacturing Readiness Report Run@Rate
Participation Manufacturing Readiness Report Follow up on Open
issues Assess Overall Readiness Assign Launch Support Personnel
Ensure Standardized Supplier Day Ramp Up on Site Support
- Slide 44
- Launch Readiness Assessment
- Slide 45
- Bo Carlberg (Presented by Brian Rossiter) Lear Corporation
Director, Manufactoring Readiness
- Slide 46
- IPD Supplier Readiness One of LEARs main function, in the
Supplier Value Stream, is to Co- ordinate the In-Coming Material,
and Assemble that for JIT delivery, to our Customer Another item
that is imperative, is to ensure that LEAR and all our Suppliers,
work as ONE TEAM We are dependent on each others, and none of us
are stronger then the weakest link of the Chain
- Slide 47
- IPD Supplier Readiness Ensure Flawless Launches throughout
Lears Supply Base and sub-supplier base Track suppliers 1 year
before launch through SOP + 90 on the Supplier Readiness Assessment
The Supplier Readiness Assessment has been added to the launch /
manufacturing readiness assessment, this is how suppliers will be
tracked Monthly High Risk Supplier meeting for Launch Two supplier
days will be held before every launch at the manufacturing facility
Supply base will be present at Lear site during all major build
events leading up to launch Supply base to be present at launch
till plant manager / launch manager releases them
- Slide 48
- Supplier Readiness Assessment Summary
- Slide 49
- How will this effect LEAR Suppliers ? Early Upfront
Communication. Establish LEAR- Supplier Communication List. LEAR
will call to Launch Awareness Meetings, 8-12 months prior to SOP.
LEAR Launch Readiness and Supplier Quality Staff will visit you,
and in depth, review your Launch Plan, Run@Rates, and your
progress, towards a Flawless Launch. LEAR will call you to Supplier
Day, with Emphasis Builds. Launch on Site Support, from Suppliers,
in LEAR Plants, at significant Volume Ramp Up.
- Slide 50
- How will this effect LEAR Suppliers ? Top Five High Risk
Supplier Meeting For Launch Once a month the launch group brings in
suppliers for each high risk launch Suppliers invited are critical
suppliers Provide them a base line of expectations. Supplier
Participation consists of working level people on the particular
launch Two-way communication with the suppliers
- Slide 51
- Bo Carlberg (Presented by Elie Ghazal) Lear Corporation
Director, Manufactoring Readiness
- Slide 52
- Quality Expectations ! Quality First ! Prototype and Pre-series
Deliveries, has SAME expectation, in terms of Quality and Timing,
as Serial Deliveries, and HIGHER demands, in terms of
Documentation, and Follow Up Respect FIFO, at Launches, Engineering
Changes makes environment more challenging LEAR expects No Defect
or Suspect Part, to be Shipped to LEAR, Contain and Sort at the
Source Again, Communicate !
- Slide 53
- Planning Expectations ! Organize your Company, for the
up-coming Launch Launch Plan, Organization, Company Quality System,
Equipment installation, Training and Time Free up Necessary Time,
for Key Individuals Management Support and Involvement, at pre-
designated Milestones and Go Ahead Gates, are Crucial, for Launch
Success Understand that careful Planning, and Execution, add some
cost initially, but gives quick Pay-Back, while not spending
resources up-front, easily can cost us all a fortune, both in Money
and Reputation
- Slide 54
- PRODUCT DESIGN / DEVEVELOPMENT VALIDATION TEST SUPPLIER
READINESS PLANT INSTALL PLANT TRANING WELL PREPARED LAUNCH Planning
Timeline Timing Expectations !
- Slide 55
- PRODUCT DESIGN / DEVEVELOPMENT VALIDATION TEST SUPPLIER
READINESS PLANT INSTALL PLANT TRANING RISK FOR BAD LAUNCH Typical
Timeline Timing Expectations !
- Slide 56
- Execution Expectations ! Attend Supplier Awareness Day and
Supplier Days, with Key Individuals, and be Active Ensure that you
have a Launch/ Mfg. Plan, and that you are tracking your progress
daily, and communicate that with LEAR Plant Launch Manager If LEAR
is late on a delivery, or prerequisite to you, make that clear to
us That your company has made the necessary Contacts with Partners,
that will help you, at the LEAR Launch Location, i.e. Technical and
Logistical Companies
- Slide 57
- Summary If you miss something from LEAR Make it Clear to Us !
Communication is Key, at Launch. Over-Communicate ! Make a Launch
Plan, and Ensure Resources for It ! Respect your own Timing and
Respect our Timing ! Respect the People Training, Training and
Training ! We are a TEAM ONE TEAM, Lets Help Each Others ! If
Problems or Risk Arises, Involve LEAR, before a Potential Issue,
has become a Fact !
- Slide 58
- Final Statement ! KEEP IT GREEN !
- Slide 59
- Thank You
- Slide 60
- De Icaza Alejandro (Presented by Robin Govani) Lear Corporation
Manager, Supplier Quality
- Slide 61
- Who are we? Supplier Quality a dedicated comprehensive team
located across Europe. Actively working with current supply base to
improve overall performance via Top 5 approach and robust PPM
roadmaps. Assessing potential suppliers for new programs. To
support, facilitate and guide external suppliers during all key
phases of a launch. Suppliers communication in respect to systems,
requirements and program quality information. Progressively assess
readiness of all key suppliers and act accordingly.
- Slide 62
- Supplier Quality Initiatives Customer Expectations Spills = 0
RPPMs < 20 Top 5 Activities Problem Solving Techniques Web based
Resources Zero PPM Commitment / Expected Improvements Supplier
Performance
- Slide 63
- Supplier Quality Mission To protect Lear and its customers from
Quality Defects and Spills. To continue striving for data accuracy
in order to make good quality decisions. To be pro-active in our
supplier quality initiatives in order to exceed Lear
expectations.
- Slide 64
- IPD Supplier Quality Performance 68% Y-O-Y improvement 2003
2004 2005 Goal 420 RPPM from our Suppliers IPD Goal of 20 PPM to
our OEMs Approx. 1500 suppliers under IPD Organization Missing the
Goal
- Slide 65
- Supplied Parts to Lear in 2004 = 2,200,000,000 1 RPPM = 2,200
Non-conforming parts Our Goal for 2005 is 420 RPPM That means
924,000 Bad Parts So far we are at 683 RPPM = 1,502,600 Parts IPD
Supplier Quality Performance
- Slide 66
- Expected Improvement Typical Industry Standard is 50%
improvement Y-O-Y We need to be at these levels in 2005 NOW
Customer Expectation