Welcome to the Production Purchasing Seminar. The seminar ... · PDF file1 Welcome to the Production Purchasing Seminar. The seminar covers QPIP 15 or as it is known, the Global Supplier

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Welcome to the Production Purchasing Seminar. The seminar covers QPIP

15 or as it is known, the Global Supplier Capacity Planning project (GSCP).

BEC Production Purchasing Seminar - June 2012

Global Supplier Capacity Planning - QPIP#15

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The seminar will be a presentation by PowerPoint. It will be a mix of text, screen

graphics and annotations. The screen graphics are taken from WIPS and WebQuote.

This video of the presentation should take about 25 minutes.



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At the end of this video you should understand

• what QPIP15 is,

• that it is also known as the Global Supplier Capacity Planning

project or GSCP.

• Why we are implementing GSCP,

• what are the core elements of GSCP,

• how does it affect me as a supplier and my buyers,

• and what can I do to prepare for the implementation.



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So what is QPIP.

QPIP stands for quality and productivity improvement plan, a global cross functional

process involving engineering, manufacturing, purchasing, quality, and sales and

marketing. The aim of QPIP is to identify functional, quality and productivity

improvement opportunities and plan for their implementation.

QPIP 15 is the Global Supplier Capacity Planning project –it is the purchasing project

and its purchasing champion is Steve Jones. The project seeks to improve our

volume requirement calculations and our recording and the monitoring of supplier

capacity commitments. When our planned volumes exceed your committed

capacity, we will trigger an RFQ to you identifying the possible capacity shortfall

issue.



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So why QPIP 15.

There are several reasons, the first being our commitment to increase our global

sales volume by 50 per cent by 2015. Our global growth is resulting in increasingly

complex supply and manufacturing footprints, with many models are now being built

in various regions around the world. With this growth in volume and complexity it

has become clear that our processes for controlling Supplier capacity commitments

are both had disconnected and non-robust.

The second major reason is we have had numerous instances of lost production

opportunities, where our supply base has been unable to meet our volume

increases. There have been cases where we believed we had installed capacity only

to find that as the volume increased the real world installed capacity could not meet

our volume increases. These situations where we cannot meet our volume

requirements as a result of capacity shortfalls have adverse effect on our bottom line

profitability – and those of the suppliers involved.

The third major reason is that we are unable to identify potentially issues early.

Current, pre the launch of GSCP (QPIP 15) capacity shortfalls often became apparent

only when we started to lose production as a result of an inadequate supply of a

part. In future, processes needed to identify potential capacity problems before they

affect production. The processes also need to eliminate noise allowing buyers and

supplier to focus on true concerns.



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The Global Supplier Capacity Planning project seeks to establish a common,

transparent and shared understanding of Ford volume requirements and

supplier capacity commitments.

The project will affect purchasing, suppliers, capacity planning and supplier

technical assistance (STA).

The applications most effected are WIPS, WebQuote and GCP/MCPV (global

Capacity Planning System/Manufacturing Capacity Planning Volumes). SIM

(Supplier Information Management) and VPP/MPP (our Program timing

systems – Vehicle Parts Progress/Manufacturing Parts Progress ) will, to a

lesser extent, also be affected.



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The first thing to say about GSCP is that there are no new major processes or procedures, rather it consolidates and integrates existing processes and procedures – the only significant new procedure will be for capacity deviation approval, this will be an offline process and requires senior Ford management approval. It will be used in instances where a supplier cannot meet our new volumes needs and so a recognised ‘real’ capacity issue exists.

The process for calculating of APW (average production weekly) and MPW (maximum production weekly) volumes will be common between vehicle and the Powertrain. In the past MCPV used a CMMS bill of material, while GCP used a WERS bill of material. With GSCP, both MCPV and GCP will use the WERS BOM. In the main, flex (things such as seasonal volume fluctuations) will be applied to MPW instead of APW, making our APWs more robustly reflect our projected volume needs.

Average and maximum purchased part capacities (PPC) will no longer be optional, although there shall be a few exceptions for commodities such as hardware, prototype parts or Service Unique parts. GCP/MCPV will become the common master repositories for volume and PPC data.

QPIP 15 will not solve all volume or capacity issues. The complexities of defining PPC and volumes will still remain. Where you use the same line for several different parts, or shares your line capacity between Ford and other OEMs, you will still have the difficulty of apportioning your PPC between different parts. The way we calculate our volumes, using sales and marketing mix across various markets and regions and applying these to WERS BOMs does not change. However, what will improve significantly is the visibility of possible capacity problems.



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What are the core elements of GSCP?

Input of APPC & MPPC becomes mandatory in WIPS and WebQuote. It will be possible to add multiple PPCs with different effective dates, allowing for capacity ramp-up over time. Additionally, when quoting for tooling, it will be necessary to indicate what PPC the tooling supports.

GCP/MCPV, WIPS and WebQuote will freely exchange PPC and volume data. GCP/MCPV will be the master for PPC and volumes. Changes to volumes or PPCs made in any system will feed upstream and downstream into the other systems.

Core to the GSCP project is the idea that volume ATPs are only generated when a capacity shortfall occurs. A volume ATP will auto-issue an RFQ to the supplier. If the supplier simply increases their PPC (in WebQuote or GCP/MCPV) with no cost implications, WIPS will auto approve the ATP. If the volume drops between the time the RFQ is sent and recap, WIPS will no action the ATP. Any volume changes that occur will update volumes on an ATP up to recap approval.

The result will be that volume ATPs provide a clear indication of potential capacity issues. Any volume ATP where you are unable to increase your PPC to meet our volume needs will require at FMC Management or Senior Management approval. In situations where the capacity shortfall cannot be resolved and there is a true capacity issue, Executive Director approval will be needed.



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This diagram shows schematically the interface between the systems and the

interaction between the users. As the diagram shows, you can enter your PPC

directly into WebQuote or GCP/MCPV. Wherever the capacity data is entered, be it

in WebQuote by you, WIPS by buyers or you in GCP/MCPV, the data will be stored in

the GCP/MCPV.



When an RFQ is generated as a result of our volumes exceeding your PPC, it

will have a Causal Factor of “Capacity Confirm”. There will be no Requesting

Engineer as this RFQ has not been created as a result of any engineering

activity.

10 BEC Production Purchasing Seminar - June 2012


The line Item (Part number) tab, the total APW of all the plants on this RFQ is

shown. It is not necessarily the total global APW of all the plants that will use

the part, only those plants that the buyer who issued the RFQ is responsible

for.



In WebQuote you will still see the AP W and MPW for the plants on the ATP.

However you will need to use GCP/MCPV to see the volumes for all the plants you

supply or are on an open RFQ for you.



The APW and MPW figures will be shown for each plant on the RFQ for a

three year period. Sometimes timing difference between different Ford

regional businesses may result in future years appearing to have a volume

drop – check with your buyer if in doubt.



You should also note that the volumes you are being asked to support will be

for the peak global model year volume – in this example the peak year is

2013. In cases where there are other plants using this part, in addition to

those on the RFQ, the global peak year may not be the peak year for volumes

for the plants on this RFQ.

So you should always be entering your PPC for a PART, not just for the plants

shown on the RFQ. Having said that, you would also need to provide a PPC

that supports volumes in any years before the peak model year – again, in

this example you would need to support – if possible – a PPC in 2012 of at

least 7192, and a PPC in the peak year of 2013 of at least 9077



Comments are added to Capacity Confirmation RFQs. These comments will

provide you with some indication of what change happened to volumes or

PPCs that triggered the RFQ to be issued .



When you enter your production quotes you will have new mandatory fields to

compete for your PPC. The PPC Data you enter should be the portion of your

total PPC that you will commit to meet the volume requirements for this part in

total, not just for the plants on this RFQ.

Clearly, where your total PPC is shared between different part numbers or

different OEMs, apportioning the total available PPC across these differences

is a challenge. GSCP does not change this. But what it does do is that in the

instances where our volume for a part goes up and exceeds the PPC you has

committed, a Capacity Confirmation RFQ will be generated allowing you the

opportunity to rebalance your PPC apportionment.



Any existing PPCs for this part will be displayed. The entry type shows where

the PPC was entered – in this example one was entered directly into

GCP/MCPV while the other was quoted via Web Quote (or entered by a buyer

in WIPS).

If any future effective PPCs are now invalid, uncheck the ‘Retain’ (keep)

checkbox and the PPC details will be deleted when your quote is approved by

Ford.



You may find cases where PPC details that are displayed were entered before

the launch of GSCP and do not have operating patterns (as shown in this

example).

If you try to retain these you will not be able to submit your quote as Web

Quote will validate these and as they are incomplete will prevent quote

submission. You need to correct them by ‘unchecking’ the Retain checkbox,

and adding a new PPC line with the same PPC details and effective date, but

this time with Operating Patterns.



You can add multiple PPC lines, allowing for a phased ramp-up of capacity to

be shown.



In addition, if you are quoting for tooling one PPC line must be selected to

indicate what PPC will be achieved using the tooling being quoted.

The selected PPC may be an existing one, or a new one you are adding.



Recognizing that there is not a direct relationship between tooling and the

PPC being shown for a particular part, the tooling capacity should be for the

tool and facility on the line with the longest cycle time. This means that the

tooling capacity should always be equal to and usually greater than the

quoted PPC.



To prepare for launch, work on resolving any existing capacity shortfalls.

Many of the will be as a result of PPC data in GCP/MCPV not being current or

complete. To identify where shortfalls exist, use GCP and MCPV reports.

Once you have identified any shortfalls that are just data problems, correct

these in the relevant system. Where there really does seem to be a capacity

problem, work with your Ford buyer to resolve these.

In GCP use the Demand/Capacity Compare Report



In MCPV use the Compare Demand to Capacity Report



The other two actions to take is to ensure that you are using WebQuote for

quoting and to ensure you are using GCP/MCPV. As I explained earlier,

Capacity Confirmation ATPs will automatically issue an RFQ to you in

WebQuote, allowing you to address the potential capacity issue immediately.

If you also actively use GCP/MCPV to maintain your PPCs, Capacity

Confirmation ATPs could be eliminated except in cases where a real capacity

problem exists.



A letter was sent by Tony Brown, Vice President, Global Purchasing to the

CEOs of our major suppliers advising them of the change and asking them to

cascade it through their organisations.

Additionally on the Ford Supplier Portal (FSP) we have been posting banners

to alert supplier users to these changes. We have run this presentation live

via a series of on-line Seminars.

Finally supplier instructions for using WebQuote and the FAQs on the Supplier

Self-Help Portal will be updated to support the launch.



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To summarise:

GSCP, also known as QPIP 15, is the global purchasing plan to improve

Purchase Part Capacity (PPC) commitment tracking.

We are implementing GSCP to support our increase global sales, avoid

capacity issues that affect our bottom line and as a spinoff, reduced buyer and

supplier workload.

With the launch of GSCP, the input of PPC Data becomes mandatory. In

addition all volume and PPC Data will be taken from a common source and

the definitions of PPC, APW and MPW will be standardised. A new procedure

will be put in place to handle true capacity shortfalls.

Volume ATPs (now called Capacity Confirmation ATPs) will only be generated

when potential capacity issues are identified. In WIPS and WebQuote PPC

Data will be mandatory and there will be integration between GCP/MCPV,

WIPS and WebQuote.

In preparation for the launch of GSCP, buyers and suppliers are advised to

work on any existing capacity issues.

And finally, ensure you are enabled via Covisint and FSP for WebQuote and

GCP/MCPV.



Welcome to the Production Purchasing Seminar. The seminar ... · PDF file1 Welcome to the Production Purchasing Seminar. The seminar covers QPIP 15 or as it is known, the Global Supplier

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