NCR Confidential NCR Supplier Quality Webcast June 8 2011 Bob Ciminera - Vice President Strategic Sourcing Robert Mele - Vice President, Quality and Continuous

NCR ConfidentialNCR Confidential

NCR Supplier Quality Webcast

June 8 2011

Bob Ciminera - Vice President Strategic Sourcing

Robert Mele - Vice President, Quality and Continuous Improvement

NCR ConfidentialNCR Confidential 2

Agenda – Supplier Quality Webcast

Introduction

Supplier PPM, Trend Requirements/

Timeline

Bob Ciminera /Robert Mele

Robert Mele

Wagih Wazni

Robert Mele

All

SQDD Update/PPAP/FAI

350 PPM Action Plans Supplier Quality

Training Michael Crutch

NCR Actions for Success

Q&A


What Is PPM?

Parts Rejected Per Million Parts Received:

PPM = Rejects / Receipts * 1,000,000

Rolling 3 Month Average minimizes noise

Focus on high rejects AND high PPM

Parts Rejected Per Million Parts Received:

PPM = Rejects / Receipts * 1,000,000

Rolling 3 Month Average minimizes noise

Focus on high rejects AND high PPM

SupplierName Receipts Rejects PPM

High Rejects Supplier 1,421,619 2,877 2,024

High PPM Supplier 20,920 326 15,583

Actual data from 1 March – 31 May 2011Actual data from 1 March – 31 May 2011

High rejects impact NCR overall PPM more than individual supplier PPM


Supplier Quality PPM – Global View

350 PPM Actions Use of MSA to validate and calibrate rejections between supplier and NCR Sites Weekly focused actions on failure modes impacting overall PPM target Analysis of SCAR failure mode data to drive DMAIC projects Individual Top Offender Supplier action plans to achieve 350ppm Supplier Webcast every two months – Next 8/10/11 PPAP requirement for all New Parts/Suppliers

NCR Supplier PPM Trend

2240

1517

1097935 745 749 657

0

500

1000

1500

2000

2500

2009

2010

Jan-

11

Feb-1

1

Mar

-11

Apr-1

1

May

-11

Jun-

11

Jul-1

1

Aug-1

1

Sep-1

1

Oct-11

Nov-11

Dec-11

De

fec

ts in

PP

M

3 monthrollingaverage

Target


PPM Requirements – What you need to do

March - May 3-Month rolling average: 657 PPM

March - May 3-Month rolling average: 657 PPM

What actions must you take to achieve 350 PPM?

PPM Requirements

July 2011: 500 PPM

October 2011: 350 PPM

March 2012: 300 PPM


PPM Requirements

July 2011: 500 PPM


March 2012: 300 PPM



Short Term Actions

For suppliers > 350 PPM:

108 letters sent requesting Action Plan

Received majority – communicating with suppliers who haven’t provided plan

Immediately -

Confirm updated Supplier Inspection program

Return 350 PPM Action Plan to NCR

Monthly review with your SQE to begin

Immediate increase in inspection

For suppliers > 350 PPM:

108 letters sent requesting Action Plan

Received majority – communicating with suppliers who haven’t provided plan

Immediately -

Confirm updated Supplier Inspection program

Return 350 PPM Action Plan to NCR

Monthly review with your SQE to begin

Immediate increase in inspection

Execute Action Plan to achieve 350 PPM by October but begin inspection NOW to reduce rejects at NCR

Execute Action Plan to achieve 350 PPM by October but begin inspection NOW to reduce rejects at NCR


Supplier Quality Training

Quality ToolsStatistical Process ControlControl ChartsPPAP Training

Quality ToolsStatistical Process ControlControl ChartsPPAP Training SPC and Control Charts will enable

early warning and prevent defective parts from being shipped to NCR.

SPC and Control Charts will enable early warning and prevent defective

parts from being shipped to NCR.

Sample

Sam

ple

Mean

191715131197531

602

600

598

__X=600.23

UCL=602.474

LCL=597.986

Sample

Sam

ple

Range

191715131197531

8

6

4

2

0

_R=3.890

UCL=8.225

LCL=0

11

Xbar-R Chart of Supp2

Plant Date SuppliersChina 3-May 23India 16-May 11

Hungary 20-Jun 10U.S. 18-Jul 6

Brazil 13-Jun 10


Supplier Quality Design & Development (SQDD)

Purpose

Assure smooth part & module introduction to NCR – PPAP & Design Review

Selection of quality suppliers for NPI

Current Status

Design review started on key programs (S1, S2 & SDM)

PPAP qualification = Started with 30% rejection rate

Reviewing suppliers capability and alignment with NCR quality goals.

500 PPM by July 1 and 350 PPM by Oct 1, 2011

Future Activities

ID suppliers with score of 2 or 1 on score card for quality to prevent upfront involvements with new programs or winning new business

Award suppliers new business with score 4 & 5 across the score card with cost advantage

Purpose

Assure smooth part & module introduction to NCR – PPAP & Design Review

Selection of quality suppliers for NPI

Current Status

Design review started on key programs (S1, S2 & SDM)

PPAP qualification = Started with 30% rejection rate

Reviewing suppliers capability and alignment with NCR quality goals.

500 PPM by July 1 and 350 PPM by Oct 1, 2011

Future Activities

ID suppliers with score of 2 or 1 on score card for quality to prevent upfront involvements with new programs or winning new business

Award suppliers new business with score 4 & 5 across the score card with cost advantage


Supplier Quality Expectations

Inspection and 350 PPM plan due – Review with SQE

Clear understanding of PPAP and SPC

PPM RequirementJuly 2011: 500 PPMOctober 2011: 350 PPMOctober 2012: 200 PPM

Webcast Schedule August 10 Results of July goals and actions to

ensure October 350 PPM

October 5 2011 YTD summary, final 2011actions required

December 7 2012-2013 supplier requirements

Inspection and 350 PPM plan due – Review with SQE

Clear understanding of PPAP and SPC

PPM RequirementJuly 2011: 500 PPMOctober 2011: 350 PPMOctober 2012: 200 PPM

Webcast Schedule August 10 Results of July goals and actions to

ensure October 350 PPM

October 5 2011 YTD summary, final 2011actions required

December 7 2012-2013 supplier requirements

October 1, 2011: 350 PPMOctober 1, 2011: 350 PPM


Long Term – YE2012

• Supplier Quality web portal • Supplier Approval List updated• 200 PPM

Long Term – YE2012

• Supplier Quality web portal • Supplier Approval List updated• 200 PPM

Actions for Success

Short Term – 3Q2011

• Finalize Qualification Process within NCR• India Supplier & Critical 40 supplier action plans – next steps• Finish SPC/PPAP training for top suppliers• Report card on 350 project plan• Supplier metrology requirements established and communicated • Supplier inspection plan submissions – suppliers > 500 PPM

Short Term – 3Q2011

• Finalize Qualification Process within NCR• India Supplier & Critical 40 supplier action plans – next steps• Finish SPC/PPAP training for top suppliers• Report card on 350 project plan• Supplier metrology requirements established and communicated • Supplier inspection plan submissions – suppliers > 500 PPM

Mid Term – end 1Q2012

• Desourcing process • Drawing uniformity from NCR• Supplier Metrology requirements achieved • Sampling sustainment strategy• 300 PPM

Mid Term – end 1Q2012

• Desourcing process • Drawing uniformity from NCR• Supplier Metrology requirements achieved • Sampling sustainment strategy• 300 PPM


Resources and Contacts

For Supplier Resources: http://www.ncr.com/about_ncr/partners/suppliers/

Assistance with NPI, PPAP, FAI: Wagih Wazni ([email protected])Director, Global Supplier Quality Engineer

Assistance with Production Parts, IncomingInspection, SCARS, 350 PPM Plan:Michael Crutch ([email protected])Director, Supplier Quality Excellence

Overall quality issues:Robert Mele ([email protected])VP, Quality and Continuous Improvement

For Supplier Resources: http://www.ncr.com/about_ncr/partners/suppliers/

Assistance with NPI, PPAP, FAI: Wagih Wazni ([email protected])Director, Global Supplier Quality Engineer

Assistance with Production Parts, IncomingInspection, SCARS, 350 PPM Plan:Michael Crutch ([email protected])Director, Supplier Quality Excellence

Overall quality issues:Robert Mele ([email protected])VP, Quality and Continuous Improvement


Q&A

Q & AQ & A

Documents

NCR Confidential NCR Supplier Quality Webcast June 8 2011 Bob Ciminera - Vice President Strategic Sourcing Robert Mele - Vice President, Quality and Continuous