SQA-General Customer Pres_200909

May 2009

Mario MERLO

Director of Supplier Quality

SQA Activities 2008-2010

2May 2009

Objectives

Magneti Marelli Purchasing and SQA – 2007-2010

Purchasing strategy

Supplier Quality Assurance

Business Lines

Com

mod

ities

Regions

Key elements

• Supplier metrics development.• Supplier performance evaluation criteria and reporting.• Involvement of supplier in core and application development program.

• Implementation of Magneti Marelli SQA organization and roles.• Integration of supplier capability systems through divisions.• Harmonize through divisions of a common set of SQA process.

VisionVisionCreate a world-class supply base as mesuared by cost, Create a world-class supply base as mesuared by cost, quality, delivery through common and controlled system quality, delivery through common and controlled system which reflect a continuous improvement supplier which reflect a continuous improvement supplier management.management.

.:. MAGNETI MARELLI HOLDING – SQA 2008-2010

3May 2009

SQA Organization

SDE: Supplier Development Engineering

Works in direct contact with R&D and Supplier during the product development.

Has the responsibility of a portion of the supplier panel to ensure:

SQB program and results

Lead on the Customer issue concerns

Coordinate the APQP activities where defined till 6 months after SOP

PPAP support and first time acceptance

Supports purchasing organization to choose and develop new suppliers

SQE: Supplier Quality Engineering

Works in the Plant organization.

Has the task to manage reactivity problems:

containment actions, cost of non quality

review 8D consistence,

review Supplier performance and activate the first SQB step.

Issue CSL1 status and propose to Purchasing organization CSL2 status.

4May 2009

SDE Activities

SDE Rule Development of New Suppliers, Components, Technologies to satisfy Magneti Marelli requests in terms of quality and cost. Qualitative problematics management (…initial capacity,delivery) product/process modifications during component development phase. “SQB program ” Involvement about high quality issue on going monitoring the performances and Improvement Plan (There are Suppliers in the SQB) To take part to decisional process about New Suppliers .

SDE Responsability To Subject complete PPAP to Plant Quality approval after product validation for components ranked as “A” High Risk. To monitor quality suppliers performances during the rump-up until to finish launch (6 month after SOP).To collaborate with product/process cost reduction activity or improvement initiatives requested from other Function (Plant) during product life. To monitor suppliers’ performance and choose Suppliers (in cooperation with Purchasing and Plant) who have to improve (because qualitative targets not reached).Do Supplier Risk Assessment activities and later draw up APQP components Plan, with Auditing, Run & Rate e Fit@Funtion activities, for each products assigned

5May 2009

SQE Plant RuleSQE works between Magneti Marelli and the Supplier in qualitative improvement activity (1th phase) defining when a Supplier must be introduced into “Escalation process”.

To monitor suppliers’ performance (PPM, open/closed problems) to assure a prevention process during la mass production.

To orientate/manage the activities (day-to-day) due to supply problem.

SQE Plant Responsability

To approve PPAP for all supply components (new or where requested ).

To Monitor and to report suppliers’ performance monthly (PPM, # Concerns, Cost Recovery) to assure that the Target assigned will be reached.

To Prevent recurrence of quality problems and assure implementation Suppliers’ action.

Authorize (Supplier Control Plan…see PPAP) and link it to Incoming Control Plan.

To assure the right notification/management of the concerns, monitoring through 8D approach.

To Cooperate with product/process cost reduction activity or improvement initiatives requested from other Function (Plant) during product life.

SQE Activities

6May 2009

Run @ Rate

Part & Process Audit

Launch Rediness Review

Run @ Rate

Part & Process Audit

Launch Rediness Review

PPAP Approval

at site level

PPAP Approval

at site level

Safe Launch Plan

completion

Safe Launch Plan

completion

Handover Process is aimed to:Handover Process is aimed to: Transfer Supplier Process KnowledgeTransfer Supplier Process Knowledge Magneti Marelli using plant approval of PPAPMagneti Marelli using plant approval of PPAP Transfer of Supplier Ownership from SQA PL/Com. to SQATransfer of Supplier Ownership from SQA PL/Com. to SQA Monitor Supplier Performance during Safe Launch period (90 days trouble-free).Monitor Supplier Performance during Safe Launch period (90 days trouble-free).

SDESDEProduct LineProduct LineCommodityCommodity

SQE PlantSQE Plant

SDE Commodity / SQE Plant Handover process

7May 2009

Reduction -30% PPMs Vs previous year

PPAP full approval (85%) before SOP, or max waiver 3 month

Improvement Plan TOP OFFENDERS (50% Tot. respect to the considerated metrics)

Monitoring / Collection “Recovery Cost”

Reduction customer Issue due to Supplier (n. of Incidents, 0Km, Warranty -50% year)

Reduction number of Concerns (-30% year)

Apply ASQA methodology for Projects selected

Quality agreement on the supplier list identified

SQA 2009 TARGET

8May 2009

Each SDE will have the responsibility about a supplier panel of 20-30 suppliers and for

specific Commodity.

n… strategics New Product and APQP (where necessary)

on critical suppliers individuated in the Risk Assessment.

n… Suppliers to support and manage as TOP Offenders SQB Program

Verify Reference Plant the correct applications of the procedures and metrics

results above mentioned.

Will lead the Customer issue due to Supplier concern for Suppliers panel assigned.

SDE 2009 assignment & Responsibility

9May 2009

SQA WW

PURCHASING

M. MERLOM. MERLO

O. PHILIPPOTO. PHILIPPOT

Electronic Electronic ComponentsComponents

Rogante G.Rogante G.

MechanicalMechanical

ComponentsComponents

IIstruiti L.struiti L.

ElettromechanicalElettromechanical


BBonfiglioli P.onfiglioli P.

CommodityCommoditySupplier GroupSupplier Group

New Product/Components APQP New Product/Components APQP AdvanceAdvanceCustomer IssueCustomer Issue

Supplier Quality BreakthroughSupplier Quality Breakthrough

Supplier Recovery CostSupplier Recovery Cost

Miranda, Opizzi, CantalupiMiranda, Opizzi, Cantalupi

Longhini, Raco, Campa, Di Longhini, Raco, Campa, Di Lorenzo Lorenzo

Colucci, BolognaColucci, Bologna

.:. SQA: Magneti Marelli Powertrain Organization

May 2009May 2009

75

207

37

# of Suppliers# of Suppliers

10May 2009

SQA WW

M. MERLOM. MERLO

Electronic Electronic ComponentsComponents

Rogante G.Rogante G.

MechanicalMechanical


IIstruiti L.struiti L.

ElettromechanicalElettromechanical


BBonfiglioli P.onfiglioli P.

.:. SQA: Magneti Marelli Powertrain Organization

Bari Bologna Argentan Corbetta Hortolandia Shanghai

V. Sicolo D. Soverini A. Voineau P. Guarino G. Tshua A. Dong

Sandford

K. King

Quality Quality methodologiesmethodologies

Longhini V..Longhini V..

Data Mng

D. Di Lorenzo

11May 2009

TOP 5 Initiatives 2009

Supplier Quality Monthly Report / Target monitoring

1. SQA Quality Monthly report

4. Supplier Quality Breakthrough program at plant level

3. Advanced Quality Plan / Safe Launch Plan implementation

5. SQP: Supplier Quality Performance

2. Global Quality Agreement

12May 2009

1. Supplier Quality Monthly Report

Magneti Marelli Supplier Quality Monthly report has been defined to report

PPM (Suppliers parts rejected) trough Divisions

Worst Suppliers

n. of Concern (general concern)

n. of Customer Concerns due to supplier issues “C1” concern

SQB program status

SQA-SDE initiatives

Supplier cost recovery

Next steps

PPAP situation for new components

Supplier visit and results

13May 2009

2. Global Quality Agreement

1.Non Conformance Cost & Liabilities

2.Conformity to Directive and Regulation

3.Audit –Process Audit guideline & form

4.Advanced Product Quality Planning & PPAP

5.Failure rate

6.Product change notification

7.Traceability

GQA must define the general rules that Supplier must respect.

Have a common & unique tool to manage the same Supplier

Light core document (derived from FIEV QA), with the key concept.

Develop the MM detailed customization by the attachment (focused on the TOP topics)

14May 2009

Supplier Selection Components Qualification Special period Monitoring

Pre-selection Request for quotation Requirement files

Selection Certifications Pre-Process Audit

(new suppliers)

Launching Planning Requirement File Review

and Signature. Drawing and Specifications

Review APQP

Quality Assurance File Review and Signature

Process Audit and Run@Rate Serial tools Serial process

Initial Samples Validation Initial Samples Validation reports Measurements, Cpk…

Product performances measurements (ramp-up) Incoming Controls PPM Evaluation

Follow-up performances Reports

3. Advanced Quality Plan / Safe Launch Plan

15May 2009

16May 2009

Supplier Components and Processes must be validated before Run@Rate:

Magneti Marelli PowertrainMagneti Marelli Powertrain

3. Advanced Quality Plan / Safe Launch Plan

MM PWT SOPMM PWT SOP

17May 2009

Resolution of each Non–Conformance through the 8D report Resp. * SDE for C1 concerns * SQE / Incoming manager * SQB program Effectiveness of the implemented corrective actions through visit or SQB program Resp. SQE

Suppliers performance monitoring

Resp. SDE & SQE

Negative performances management SQB program

- Component Quality Plan (APQP)-Critical vendor part List

Resp. SDE

New purchased component PPAP Approval

Resp. Plant Incoming Quality

New purchased components APQP Risk assessment

Resp. SDE

Process Qualification through:-process audit (PCPA) or ANFIA-capacity assessment (R@R)

Resp. SDE with support of Plant Incoming Quality

PRODUCTION

RP1

PROJECT DEVELOPMENT

PROCESS DEVELOPMENT

RP2

PPAP

RPA RPB

RP3

3. Supplier Quality Management Responsibility sharing

18May 2009

Master Plan

S O P APPROVAL

KICK OFF meeting

Risk Assessment

-New supplier-New technology-New design-Quality performances-Customer impact-Complex assemblies

Product development

Process development

Product & Process Validation

A P Q P

KICK OFF

SOP

LOW

MEDIUM

HIGH

P P A P

700

750

800

850

900

950

Time

Uni

ts

LCR

MCR

ContractedCapacity

Schedule

Run@RateP C P A

0005818000063127

3. NEW PRODUCTS Purchased components development

19May 2009

RISK ASSESSMENTRisk assessment is a tool to assess the potential problems early in the “Purchased Component Development”.

00064503

During the Kick off meeting, the cross functional team evaluate any related component information throughout specifics assessment category guidelines and calculate a rating

12. Complex Assemblies

11. Program Management

10. Complex Management structure

9. High Customer Impact

8. Timing concerns

7. Quality History

6. Design Timing/ Stability

5. New Design Responsibility

4. Facilities

3. MM PWT SQ Support

2. Supplying Location

1. New Process, Technology and/or Capacity

LOW

MEDIUM

HIGH

0 10 LOW

11 20 MEDIUM

21 or greater HIGH 13. Other (Classified characteristics)

0 - 15

0 - 10

0 - 10

0 - 15

0 - 5

0 - 10

0 - 5

0 - 5

0 - 5

0 - 15

0 - 5

0 - 15

0 - 3


20May 2009

CRITICAL VENDOR PART LIST

The CVP list resume all the new component for a MM PWT new product

For each component are listed the chosen activities (APQP; PPAP; PCPA and R@R) to guarantee a successful SOP

Components assessed with high/medium risk shall be monitored with APQP tool

CVP list is updated periodically; status of each activity is reported

cvplist_meca


21May 2009

00064504

CQP is a structured document which defines the key quality planning requirements necessary to assure that a product satisfies the customer requirements. It is the APQP tool for MM PWT

The goal of CQP is to facilitate the communication between the Supplier and MM PWT to assure that all steps are effectively completed on time.

CQP lists a series of activities for which must be defined a completion date coherent with the milestones of MM PWT product development plan.

The CQP must be signed by Supplier for acceptance and constitutes the instrument for the monitoring of the undertaken engagements.

COMPONENT QUALITY PLAN (CQP)


22May 2009

P P A P


23May 2009

Global RUN @ RATE The purpose of the Run @ Rate activity is to verify that a supplier’s

actual manufacturing process, while operating under normal operating conditions, is capable of:

Producing “Quality Components” as stated in PPAP (Process Control Plan Audit - PCPA);

Meeting or exceeding the “Contracted Capacity” within “One Production Day” on a sustained basis. (Capacity analysis)

The Run @ Rate should be performed:

After the supplier has attained an interim or fully approved PPAP submission;

No later than eight weeks prior the start of regular production (SOP).


24May 2009

4. Supplier Quality Breakthrough program

Focused on high impact suppliers

Top management direct involvement is strictly required

Pragmatism wants real action planning with commitment.

A structured program based on facts, detailed root cause analysis, removing of all the potential and systematic causes which will be jointly reviewed with specific audits.

Regular quarterly meetings with structured and transparent preparation

The program is regularly presented to the Magneti Marelli Executive Committee reporting the progress of the quarterly meetings with Top Supplier Management

25May 2009

4. SQB program: Matrix / KPI Example

26May 2009

SQB status ( updated to 2°Quarter 2009)

% IMPROVEMENT is:

the baseline key performance index before kick-off SQB meeting and present situation

KPI:

• N° of concerns (C1/C2/C3)

• PPM

• Time to answer

• PPAP first time approval

• Cost of No Quality

• Q.I.P. % of implementation

• Others

NEW ENTRY

27May 2009

5. SQP: Supplier Quality Performance

Vendor Information NetworkVendor Information Network

SQP is a supplier portal that is designed to facilitate seamless communication between Magneti Marelli and it’s suppliers.

SQP is centralized is a Purchasing Information System that aids in enchanced decision making and managing the workflow across the various process in Supplier Chain.

ROBUST AND COMMON DATA MANAGEMENT

Documents

SQA-General Customer Pres_200909