Quality Improvement Level Up Program December 17, 2008.

Quality Improvement Level Up Program

December 17, 2008

Level Up Program

Barry Puskar

Manager - Supplier Management Section(within the Purchasing Dept.)

Level Up ProgramQuality and Sales Commitment and Support

Quality Level UpLevel Up Quality Improvement Program ; • Joint improvement program between Supplier

Quality Assurance (SQA) & Purchasing for suppliers who are not meeting PPM targets.

• Program helps the supplier make the necessary corrections to improve their performance back to the “acceptable” levels.

Level Up Program

Scope:• To work with suppliers who’s PPM data is

trending in the wrong direction • To enhance the business relationship and daily

communication between the supplier and the SQA engineer

• To insure full support from both Sales and Quality of the supplier

• Promote customer confidence and generate sales

• Improve the overall quality of our product

Level Up Program

Purpose:• Level up quality to further exceed current and

future quality targets

• Strengthen our supplier base to promote high quality levels during development

Highest quality spikes occur during new model launch SOP

Level Up Program

Keith Merrion

Product Manager - Supplier Quality Assurance

Level Up Program

History – Improvement Impact

1. Graph / Lessons Learned

2. Program Benefits

Level Up ProgramLessons Learned from Past Improvement Activity

INTERNAL COMMUNICATION

When you go back to your plant, bring everyone

together and discuss about the Level Up Program.

Gain their support to achieve your Goals.

Request everyone participate in the improvement.

Lesson Learned: If this doesn’t happen, Improvement is not successful.

EXTERNAL COMMUNICATION

Always keep communication with SIA. Primarily your SQA Engineer.

Lesson Learned: SIA can help you resolve an issue and prevent it from becoming a problem.


STANDARDIZED WORK

Are your Work Instructions adequate in defining each step the Associate must take to perform his task without creating mistakes?

Do Associates follow the Work Instructions or is there any variation.

If more than one Associate performs the same task, is it done the exact same way?

Are Audits conducted to insure conformance to the Work Instructions?

What Actions are taken when Associates do not follow Standardized Work?

Lesson Learned: If the process is established correctly and the Work Instructions are adequate to prevent mistakes, it is a must that Associates follow Standardized Work. If not, defects will occur.


ABNORMAL PROCESS

When Processes are set-up correctly, and a problem occurs, this can create an Abnormal Process.

Typical problems are: Equipment Failures, Tool Failures, Associates not following Standardized Work, Material Issues, Sub-Component Issues, Poke Yoke Problems, Work Area disruption, etc.

These problems result in alternate ways to keep the Process running, resulting in ABNORMAL PROCESS.

Lesson Learned: ABNORMAL PROCESSES create defects. Take appropriate actions when they occur. Add additional inspection, qualify backup equipment/tools, document problem and actions (with date and time), notify Supervisor/Manager, have a reaction procedure, etc.


KNOW YOUR TARGETS

Develop your own Targets internally to meet the SIA Target. Establish Targets for each Department (in your company).

Plans and Time Lines are extremely important as a roadmap to reach your Targets. Understand what your established Targets are and progress to achieving them.

Lesson Learned: If Targets are not set, its like taking a trip without understanding where you are going and when you are there. Remember Plans and Time Lines are the roadmap to guide you to your destination. This is key to improvement activity.

Level Up ProgramProgram Benefits

Level Up Program

Requirements

1. Target (Standard & VS Defined)2. Form Review (with schedule)3. Communication4. Key Contacts5. Quality and Sales Commitment and

Support

Level Up ProgramTarget (Standard & VS Defined)

SIA Target PPM is 100 SIA TARGET - VITAL PARTS PPM IS 0 Establish your own Targets to Step

Down PPM to achieve the SIA Target Establish your internal PPM’s for each

Department, Push improvement to obtain Targets.

Level Up ProgramForm Review (with schedule)

For the Level Up Program, you will be required to submit a monthly report to your SQA Engineer.

Time Frame for reporting will be Jan 09 to Jun 09 (6 months).

Reports are due the following month on the 10th day. First report due Feb 10th.

Level Up ProgramRequired Monthly Report Format

SIA QUALITY LEVEL UP PROGRAM MONTH / YEAR

REVIEW (Summary & Overview) TOP REJECTS FOR MONTHInternal / External PPM Target/Results:

Int Ext

Major Issues:

Monthly Quality Activity:

Product Action Summary:

Comments:

KEY METRICS

SUB-SUPPLIER STATUS Actions:

FORWARD LOOKING (*Focust on Current & Future Improvement Activity/Plan)

Rejects in 30 DaysPart Defect Activities

Pictures Attached Start Date

Target Date

PPM Tracking

4436

4144

61

82

0

20

40

60

80

100

120

Jan 09 Feb Mar Apr May JunMonth

PP

M Supplier'sActual PPM

SIA's TargetPPM

Supplier'sTarget PPM

Product Action Sorts/Costs

1400

1254

860 0 0

0

200

400

600

800

1000

1200

1400

1600

Jan 09 Feb Mar Apr May JunMonth

So

rt Q

ty

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

Co

st Sort Qty from

Product Action

Cost forProduct Action

Defect Outflow Trend to SIA

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5

10

15

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25

Jan 09 Feb Mar Apr May Jun

Month

Qty

Less Than 3

Greater Than 3

Greater Than 5

Greater Than 10

Greater Than 50

Greater Than 100

Internal PPM by Department

0100200300400500600700800


Month

PP

M

Department A

Department B

Department C

Department D

Department E

Department F

Sub-Supplier's PPM (top 5)

0

500

1000

1500

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Month

PP

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Supplier E

Supplier D

Supplier C

Supplier B

Supplier A

Change Update

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Month/YrSupplier's

Actual PPMSupplier's

Target PPMSIA's Target

PPMMonth / Yr

Sort Qty from Product Action

Cost for Product Action

Jan 09 82 90 100 Jan 09 1400 $2,500Feb 61 80 100 Feb 1254 $3,540Mar 44 70 100 Mar 86 $122Apr 41 60 100 Apr 0 $0May 36 50 100 May 0 $0Jun 44 50 100 Jun 0 $0

Month/YrGreater Than

100Greater Than 50 Greater Than 10 Greater Than 5 Greater Than 3 Less Than 3

Jan 09 1 10 7Feb 1 11 8Mar 5 1Apr 5 2 1May 1 3Jun 7

Month/Yr Department A Department B Department C Department D Department E Department FJan 09 120 226 110 75 159 200

Feb 305 116 182 60 52 368Mar 121 562 164 58 118 269Apr 689 632 59 89 165 142May 332 113 156 22 85 68Jun 66 88 77 97 58 44

Key Sub-Supplier's PPM

Month/Yr Supplier A Supplier B Supplier C Supplier D Supplier EJan 09 189 1500 336 122 456

Feb 1125 1150 998 589 889Mar 225 987 759 753 150Apr 689 659 658 159 335May 667 445 152 228 884Jun 143 222 336 996 125

Product Action Sort Qty and CostPPM Graph Actual vs. Target

Defect Quantity Outflow Trends - To SIA (Number of Occurances)

Internal PPM by Department

Level Up ProgramMonthly Report – Data Sheet

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Level Up ProgramCommunication

The Presentation / Monthly Report format is located on the SIA Web Page (www.subaru-sia.com select “Suppliers” then “Forms/Standards).

It is up to you to contact SIA if you need any more information to aid in your Level Up Program.

Level Up ProgramKey Contacts at SIA

Title Name Phone E-MailDepartment Manager Larry Strauch 765-449-6673 [email protected]

Product Manager Keith Merrion 765-449-6629 [email protected] Leader - Eng. Ray Garbeth 765-449-6756 [email protected]

Engineer Bill Kaminsky 765-449-6282 [email protected] Greg Mayton 765-449-6515 [email protected] Ed Zobel 765-449-6719 [email protected]

Title Name Phone E-MailManager Barry Puskar 765-449-6480 [email protected]

Group Leader Mark Haynes 765-449-6209 [email protected]

Title Name Phone E-MailBuyer Kevin Mahone 765-449-6486 kevin.mahone@subaru-sia,comBuyer Michael Ferguson 765-449-6243 [email protected] Joe Castellana 765-449-6412 [email protected] Keita Kubo 765-449-6453 [email protected] Scott Renfrow 765-449-6136 [email protected] Edward Wu 765-449-6702 [email protected] Doug Martin 765-449-6482 [email protected] LeTisha Knight 765-449-6487 [email protected]

SQA Department

Supplier Management

Purchasing


When presentations are over the SQA Engineers and Buyers will meet with you to review your company’s past performance.

You are here representing you company, we need your commitment and support to carry this message back.

Level Up ProgramSub-Performance Results

Level Up Program

Next: Mark Haynes – Supplier Management Group Leader

Level Up Program

SUB-PERFORMANCE ACTIVITY

Mark HaynesGroup Leader - Supplier Management

Section(within the Purchasing Dept.)

Level Up Program Sales and Quality Commitment and Support

During the supplier quality level up program, your progress will be evaluated on a monthly basis by the SQA engineer & Purchasing.

If progress does not meet the requirements, an evaluation will be done and corrective action will be enforced.


Corrective Action Activity Warning Letter to Presidential Level will be

issued by SQA Management

Face to Face Meeting with Upper Management (at SIA) held by SQA with Purchasing

ON Site Audit

QIP/PRE-QIP Selection by Purchasing & SQA(Presidential Level Support Required for all QIP/Pre-QIP Activity)


What is QIP & Pre-QIP?


Pre-QIPQuality Improvement Program (P-QIP);

Top Management corrective action process where the majority of chronic and recurring defect suppliers make the necessary corrections to improve their performance back to the “acceptable” levels.


Pre-QIP 6 month improvement program SIA Purchasing and SQA shall support all activity Supplier will provide detailed progress reports to

SIA Top Management during the 2nd, 4th and 5th months

Top Management Review Audits will be done during the 3rd and 6th month end

If a supplier’s participation in PQIP is unsuccessful, the Supplier may be subject to QIP.


QIPQuality Improvement Program (QIP);

Top Management Level corrective action process for those suppliers whose performance has not improved, or has gotten worse over a period of time. Once selected, the supplier will participate in a more formal and structured corrective action system as outlined within the Supplier Quality Manual. All meetings/audits will require Presidential support from the supplier.


QIP Suppliers will participate in a 6 month program with

review meetings every month. Top Management Reviews will be done during the 4th and 6th month end.

Monthly meetings will be face to face meetings to review the suppliers overall progress.

SIA Purchasing and SQA shall support all audit activity (location shall be determined at the time of audit).

Supplier’s performance will be evaluated at the 6 month meeting and QIP continued if needed.

If a supplier’s participation in QIP is unsuccessful, the Supplier may be subject to additional QIP program participation until SIA requirements have been met.

Parent Company participation and support is required

Level Up Program

Larry Strauch

Manager - Supplier Quality Assurance

Level Up Program

C + C + C = Success

Level Up ProgramELEMENTS FOR SUCCESS

1.) Communication* Maintain good communication with your SQA Engineer

For critical items, don’t rely on e-mailTalk directly person to person to expedite

corrective action…call SQA Engineer, Group Leader or Manager* Seek to clearly understand your defects and how they affect our customers* Be proactive with information and feedback quickly

Tell us if you suspect defect outflow…don’t hesitate to call


2.) Consistency* Establish and maintain effective QA Systems

Are your procedures adequate to assure that every defect is identified and contained?

Have you Incorporated Standardized Work into your system…is everyone doing the same thing every time?

Are you effectively and consistently managing every abnormal process? Many of your PRC responses identify an “abnormal process” as the root cause for the defect.


3.) Commitment* You must accept personal responsibility and ownership for the success of this program

Quality Improvement Level Up Program December 17, 2008.

Documents

program quality

program program benefits

quality improvement

program communication

program lessons

support quality level

program purpose

program scope