Automotive Steel Component

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Case Study: Automotive Steel Component Dragon Sourcing - 龙 龙 Your Tailored Sourcing Approach to emerging markets

Transcript of Automotive Steel Component

Page 1: Automotive Steel Component

Case Study: Automotive Steel Component

Dragon Sourcing - 龙 源 Your Tailored Sourcing Approach to emerging markets

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© 2015 Dragon Sourcing. Automotive Case Study.2

Objectives

Context

Client overall objectives

• Identify potential suppliers in China for:– Deliveries to their European plant in East Europe– Establishing a supply base in China for potential

future on-site manufacturing

• Supplier requirements:– Long-term partner with development potential– Cost savings in initial phase should be given, but

long term savings potential is more important and should be obtained by supplier development

– Supplier preferably not delivering to competitors

DS Supplier Market analysisObjectives

• Identify list of potential current and new potential suppliers based in China to include in the RFI/RFP process by leveraging, current Dragon Sourcing suppliers database, the web, external databases and various networks of experts

• Develop the RFI / RFP – jointly with the client – to include all key supplier qualification criteria (e.g.: financial, technology, manufacturing experience for similar products, capability, tooling, conception and development, corporate responsibility, quality, language skills, others to be defined….)

• Administer RFI / RFP process to ensure as high a return rate as possible

• Analyze responses, prices and use balance score carding process to rank suppliers and recommend suppliers per category.

• Provide Client with a profile for all of the recommended suppliers

• Develop a business case with recommendations to take advantage of potential opportunities

• Support Client with the Audits and following supplier development

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Project Timeline RFI / RFQ Process

StepsJuly August Sep

W1 W2 W3 W4 W5 W6 W7 W8 W9 W10

1Supply Market analysis: identifying capable suppliers in China by leveraging all available databases

2 RFI/RFP and intro letter approval

3 Develop and administer an RFI/RFP process

4 Develop jointly with AGC a balance scorecard

6 Analysis of RFI/RFP responses and ranking

7 Based on RFI, RFP; recommend to AGC potential suppliers

8 Develop business case with recommendations

MilestonesStarted FinishedNot-started Delayed

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The first step was to develop a comprehensive understanding of the functional requirements

Product Name Window Channel Steel Product Drawing & Picture

Quantity 300.000 p.a.

 

Current DDP price in EURO XXX

Current annual spend in EURO €XXXXXX

Material JSC270DC

Quality requirement 15ppm

Documentation required PPAP Level 3

Surface finish Plain, greased

Description Steel Channel for use in XXX

Packaging See separate packaging specification

HS Code XXXXX

Customs Duty XXXXX

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Then, an RFI/RFP process was administered to filter out most capable suppliers

Product and priceinformation

Quality Management

To: Jacy (先生)Email : j acy@dragonsourci ng. com

Tel number : 021-6141 3974Fax number : 021-6141 3966

Supplier Name

Contact PersonTitleEmailTelFaxMobile phoneAlternative Contact PersonTitleEmailTel

BUSINESS INFORMATION Is your company a manufacturer,Which year was your company founded?What is the workfloor size (m²)?How many employees do you have?Capital in million RMB

General Information

CONTACT INFORMATION

Contact Information & Intend To Respond 公司信息 及 答复意向

Please, complete this "Intent to Respond" page print and fax before December 25, 2009于12月25日前请填写此答复意向, 打印后传真

Dragon Sourcing Ltd. 龙源有限公司

Contact detailinformation

Businessinformation

Domestic Europe USA Other% of turnover exported to

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RFI / RFQ response rate

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Pre-Selection by phone

No manufacturing capability / traders

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17 suppliers submitted their offers and will be rated using balance scorecard

Xinjiang

Gansu

Jiangxi

Zhejiang

BEIJING

Jiangsu

Guangxi

Hunan

Hubei

Qinghai

Ningxia

Shaanxi Anhui

Fujian

Neimongu

Shanxi Shandong

Xizang

Sichuan

Yunan

Guizhou

Henan

Jilin

LiaoningHebei

Guangdong

Gansu

SHANGHAI

Hong Kong

Taiwan

Heilongjiang

Supplier name Region City

Supplier 1 Jiangsu Changshu

Supplier 2 Chongqing Chongqing

Supplier 3 Guangdong Dongguan

Supplier 4 Guangdong Dongguan

Supplier 5 Zhejiang Ningbo

Supplier 6 Zhejiang Ningbo

Supplier 7 Guangdong Shenzhen

Supplier 8 Jiangsu Taicang

Supplier 9 Zhejiang Ningbo

Supplier 10 Zhejiang Wenzhou

Supplier 11 Hebei Shijiazhuang

Supplier 12 Jiangsu Wuxi

Supplier 13 Zhejiang Ningbo

Supplier 14 GuangdongShenzhen

Supplier 15 Zhejiang Wenzhou

Supplier 16 Shanghai Shanghai

Supplier 17 Zhejiang Wenzhou

CHONGQING

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Part Price 1 (with grease)DDP Eastern Europe price via sea freight

Current Client DDP price

Lower than current Client DDP price

Competitiveness to improve

Up to 16% Saving on DDP Price in initial RFQ

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Company ProfileSupplier 3

GENERAL INFORMATION

Supplier Name Supplier 3

City XXX

Province Guangdong

Contact person Ms. Sunny

Job title Sales Manager

Email XXX

Phone number XXX

Fax number XXX

Mobile XXX

Website XXX

BUSINESS INFORMATION

Found Year 2005

Manufacturer, distributor, or agent Manufacturer

Capital in million RMB 30

Work floor size (m²) 23,500

Number of employees 403

License for self import/export (Yes/No) Yes

Years of export experience 5

CAR WINDOW CHANNEL PRODUCTION

Years of experience in car window channel 5

Production capacity per year in pcs 1,000,000

Do you sell to car manufacturers Yes

TURNOVER IN MILLION RMB

2009 2008 2007

55 45 50

% SALES EXPORT TO MAIN MARKETS IN 2009 = 90%

EU (%) US (%) Japan (%) Rest of the world (%)

10% 30% 30% 20%

CUSTOMER BASE

Customers Country Industry % of sales

1. XXX XXX XXX

2. XXX XXX XXX

3.

4.

5.

QUALITY & ENVIRONMENTAL REGISTRATION

Certificate Yes/No

ISO 9001 No

ISO 14001 Yes

ISO/TS16949 : 2002 Yes

COMPLIANCE WITH LOCAL LAW

Do you adhere to all rules and regulations in respect to child labour? Y

What is the age of your youngest and older employee? 19 & 60

How many hours per week, including overtime are working your employee on a regularly scheduled basis? 48 hours

Are all your employees working in a safe, healthy and clean working place? Y

Do you adhere to all rules and regulations in respect to environmental issues? Y

Are you willing to sign a confidentiality agreement? (Y/N) Y

Scoring

Ranking out of 16

Factory pics Y

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Company ProfileSupplier 3

PRODUCTION

Material Description (dimension, size…special technology..) Process Actual Production in 2009 (Units)

spcc spcd Roll Forming In house

st12 st13 st14 Stamping, cutting In house

dc01 dc02 dc03 dc0 Welding In house

Q195 Q235 Electroplating Outsourced

EQUIPMENT

Equipment Qty Description

Roll-forming line 5

Stamping machines 20

Spot welding machines 17

Bending machine 1

QUALITY CONTROL

How many QC people in your company? 30

What quality control equipment do you have in-house? Tensile strength testing machine, Salt spraying tester, coat testing machine

Do you accept the 3rd party QC? Yes

How long do you keep QC record form? 3 years

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Company Profile Supplier 3

FACTORY PICTURES

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Scoring and ranking of the identified suppliers.Suppliers ranked from 1 to 9 were selected for auditing

Rank Supplier Name

Company background Business info Corporate

responsibilityProduction & Technology Quality Mgt Cooperation Price

Score out of 100

5% 15% 5% 15% 15% 5% 40%

1 Supplier 1 3.67 5.69 5.00 12.75 9.38 2.88 40.00 79.35

2 Supplier 2 5.00 14.25 5.00 12.75 12.75 3.75 20.00 73.50

3 Supplier 3 4.75 12.94 5.00 12.75 10.50 2.88 10.00 58.81

4 Supplier 4 5.00 14.25 5.00 9.75 10.50 2.88 10.00 57.38

5 Supplier 5 4.75 7.13 5.00 12.75 12.75 2.00 10.00 54.38

6 Supplier 6 2.08 5.13 5.00 9.25 7.13 2.88 20.00 51.46

7 Supplier 7 2.67 11.81 5.00 10.25 8.25 2.88 10.00 50.85

8 Supplier 8 2.58 12.75 5.00 9.75 6.00 2.88 10.00 48.96

9 Supplier 9 2.33 7.44 5.00 6.00 4.88 2.88 20.00 48.52

10 Supplier 10 2.67 10.81 5.00 10.00 13.88 3.75 0.00 46.10

11 Supplier 11 3.67 11.56 5.00 12.00 10.50 2.88 0.00 45.60

12 Supplier 12 3.42 13.31 5.00 9.00 10.50 2.88 0.00 44.10

13 Supplier 13 4.25 12.31 5.00 6.50 12.75 2.88 0.00 43.69

14 Supplier 14 4.25 7.38 5.00 12.75 8.25 2.88 0.00 40.50

15 Supplier 15 2.58 10.25 5.00 10.50 8.25 2.88 0.00 39.46

16 Supplier 16 2.58 11.75 5.00 7.75 6.00 2.88 0.00 35.96

17 Supplier 17 2.08 10.63 5.00 7.50 6.00 2.88 0.00 34.08

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Scoring and ranking of the identified suppliersSupplier Ranking

0

10

20

30

40

50

60

70

80

90

Dongh

ua

Chaod

a

Tianq

iu

Zhon

gjing

Xinshid

ai

Junru

i

Talen

t

Cadic

Meierte

Chiyip

Radian

tJin

yi

Sinohy

deJin

gleTu

ojin

Kangfe

ng

Yuanji

e

Price Competitiveness

Cooperation

Quality Management

Production & Technology

Corporate Responsibility

Business Information

Company Background

7974

59 5754 51 51 49 49

46 46 44 44 4139 36 34

Recommend suppliers:1. Supplier 1, high level of experience on the production of similar components but no export experience2. Supplier 2, big manufacturer, satisfactory export experience3. Supplier 3, very familiar with this type of component, very big supplier in terms of sales, factory size and number

of employees4. Supplier 4, biggest in term of annual sales and factory size5. Supplier 5, solid experience in automotive industry6. Supplier 6-9, also suggested to be shortlisted to run preliminary rounds of negotiations

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VDA 6.3 Audit of shortlisted suppliers

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Short-listed suppliers are audited per VDA 6.3 process audit norms to assess long-term partnership opportunities

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  Product Creation Process – Series Production  Points  Questions - Suppliers/purchd. Material

1.1 Are only approved and qualified sub-contractors used?1.2 Is the quality of purchased parts assured?

1.3Is the quality performance evaluated and are improvement actions initiated in case of nonconformities to the requirements?

1.4Are continuous improvement activities and objectives for products and processes agreed with the sub-contractors and implemented?

1.5Are the necessary releases available for all supplied series products and are the required improvement actions implemented?

1.6 Are the agreements relating to products supplied by the customer adhered to?1.7 Are the stock levels of purchased material in line with the production requirements?1.8 Are purchased materials and internal surpluses delivered and stored appropriately?1.9 Is the staff qualified for their individual tasks?

  Personnel, Qualification

2.1Are responsibilities and authority assigned to the personnel who control the product and process quality?

2.2Are responsibilities and authority assigned to personnel with regard to the production equipment and the production environment?

2.3 Are the employees qualified to complete the defined tasks and is their qualification maintained?2.4 Does a personnel plan exist, which includes replacement guidelines?2.5 Is there a system for employee motivation and is it used effectively?

  Machinery / equipment

3.1Does the available production equipment and tooling ensure that the quality requirements for the product are met?

3.2Can the quality requirements be effectively monitored with the measurement and inspection equipment used?

3.3 Are the work and test stations laid out according to the process requirements?

3.4 Are the relevant details fully completed and adhered to in the production and inspection documents?3.5 Is the appropriate equipment and tooling available to support product changeover?3.6 Is a release provided for start of series production and are set up data and deviations recorded?

  Transportation / Parts Handling/ Storage/ Packaging

4.1Are the production volumes planned in accordance with customer demand and conveyed as planned to the next production step?

4.2Are products and components appropriately stored and are the transportation means and packaging equipment coordinated with the specific characteristics of the products/components?

4.3 Are reject, rework, set-up parts and excess material conscientiously separated and identified?4.4 Is the material and parts flow secured against mixing/confusion and is traceability ensured?4.5 Are tools, facilities, and inspection, test and measuring equipment stored appropriately?

Objectives of Initial Audit• Meet top management and sales

management teams• Present order details• Refine supplier offer understanding• Understand organisation• Validate manufacturing capabilities• Validate Quality Management System

Topics• General Management• HR Management• Order management• Shipping / packaging• Planning process• Goods flow• Procurement• Production• Quality…

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Production Process Audit (Excerpt) – Audits are regularly repeated during supplier development in order to ensure compliance

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  Questions - Suppliers/purchd. material Points

1.1Are only approved and qualified sub-contractors used?

8

1.2Is the quality of purchased parts assured?

8

1.3 Is the quality performance evaluated and are improvement actions initiated in case of nonconformities to the requirements?

6

1.4 Are continuous improvement activities and objectives for products and processes agreed with the sub-contractors and implemented?

n.a.

1.5 Are the necessary releases available for all supplied series products and are the required improvement actions implemented?

8

1.6 Are the agreements relating to products supplied by the customer adhered to?

6

1.7 Are the stock levels of purchased material in line with the production requirements?

10

1.8 Are purchased materials and internal surpluses delivered and stored appropriately? 6

1.9 Is the staff qualified for their individual tasks? 6

  Personnel, Qualification  

2.1.1 Are responsibilities and authority assigned to the personnel who control the product and process quality? 8

2.1.2 Are responsibilities and authority assigned to personnel with regard to the production equipment and the production environment? 6

2.1.3 Are the employees qualified to complete the defined tasks and is their qualification maintained? 8

2.1.4 Does a personnel plan exist, which includes replacement guidelines? 6

2.1.5 Is there a system for employee motivation and is it used effectively? 6

  Machinery / equipment  

2.2.1 Does the available production equipment and tooling ensure that the quality requirements for the product are met? 8

2.2.2 Can the quality requirements be effectively monitored with the measurement and inspection equipment used? 8

2.2.3 Are the work and test stations laid out according to the process requirements? 6

2.2.4 Are the relevant details fully completed and adhered to in the production and inspection documents? 8

2.2.5 Is the appropriate equipment and tooling available to support product changeover? 8

2.2.6 Is a release provided for start of series production and are set up data and deviations recorded? n.a.

  Transportation / Parts Handling/ Storage/ Packaging Points 

2.3.1 Are the production volumes planned in accordance with customer demand and conveyed as planned to the next production step? 10

2.3.2Are products and components appropriately stored and are the transportation means and packaging equipment coordinated with the specific characteristics of the products/components?

10

2.3.3 Are reject, rework, set-up parts and excess material conscientiously separated and identified? 8

2.3.4 Is the material and parts flow secured against mixing/confusion and is traceability ensured? 8

2.3.5 Are tools, facilities, and inspection, test and measuring equipment stored appropriately? 6

  Failure analysis, corrective actions, continuous improvement (CIP)  

2.4.1 Are quality and process data completely recorded and in such a manner that they can be analysed? 6

2.4.2 Are quality and process data statistically analysed and are improvement programs introduced from the analysis? 0

2.4.3 Are the causes analysed and is corrective action initiated in the event of any deviations from product and process requirements? 0

2.4.4 Is the required corrective action implemented according to the deadlines and is its effectiveness verified? n.a.

2.4.5 Are processes and products regularly audited? n.a.2.4.6 Are products and processes continually improved? n.a.

2.4.7 Are targets set for the product and process and is their achievement followed up? n.a.

  Questions - Customer service / customer satisfaction  

3.1 Are the customer requirements regarding the QM system, product and process complied with? 10

3.2 Is customer service guaranteed and are complaints recorded and evaluated? n.a.

3.3 Are there contingency plans for ongoing supply of parts and immediate actions taken for problems? 10

3.4 Are all non-conformities analyzed and improvement actions implemented? n.a.

3.5 Are the personnel qualified for their individual tasks? 8

3.6 Is the verification for D/TLD-parts and additional legal requirements evaluated by regular internal audits? n.a.

3.7Does the packaging and the identification of the containers as well as the data exchange (B2B-Platform) comply with the customer requirements?

8

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VDA 6.3 Process Results are captured

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VDA6.3*

2.1 1.1

Is the project organisation (project management) establshed and are tasks and authorities specified for the project management and teammembers ?

2.2* 1.2

Are the necessary resources planned and available for the development of the project and are changes highlighted ?

2.3 1.3

Is there a project plan and has this been agreed with the customer ?

2.4 1.4

Is change management within the project ensured by the project manager ?

2.5* 1.5

Is change management within the project ensured by the project manager ?

2.6 1.6

Is there a quality plan in the project ? Is this implemented and regularly monitored for compliance ?

2.7* 1.7

Is an escalation process established and is this controlled effectively ?

3.1 2.1

Are the product-specific and process-specific requirements set out ?

3.2* 2.2

Is manufacturing feasibility assessed on the basis of the requirements established for the product and process,on a cross-functional level ?

Questions potential Analysis P1 Assessment Remarks

Project Management

Planning the product & process development

4.1 3.1

Are the Design FMEA / Process FMEA drawn up and up-dated in the course of the project and are corrective actions specified ?

4.2 3.2

Are the necessary demonstrations of suitability and releases available for the relevant phases of the project, based on the requirements ?

4.3 3.3

Is the transfer of the project to full production secure in terms of the product launch ?

5.1* 4.1

Are only approved and quality-capable suppliers appointed ?

5.2 4.2

Are the customer's requirements taken into account in the supply chain ?

5.3 4.3

Are the necessary approvals available for out-sourced products and services ?

5.4* 4.4

Is the agreed quality of out-sourced products and services guaranteed ?

5.5* 4.5

Are incoming goods stored in the appropriate manner ?

Carrying out the product & process development

Supplier management

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VDA 6.3 Process Results are captured

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What goes into the process? Process input

6.1.1* 5.1.1

Has the transfer of the project from development to full production been completed ?

6.1.3 5.1.2

Are upstream materials stored in the appropriate manner and do the transport methods / packing systems take account of the specialcharacteristics of upstream materials ?

Work content / process sequence (are all production processes controlled ?)

6.2.1* 5.2.1

Based on the production control plan, are all the relevant data fully listed in the production and test/inspection documentation ?

6.2.3* 5.2.2

Can the customer's product-specific quality requirements be achieved with the production facilities ?

6.2.4* 5.2.3

Are significant characteristics controlled in production ?

6.2.5 5.2.4

Are scrap, rework and setting parts, as well as residual in-house quantities properly separated and identified ?

6.2.6 5.2.5

Is the flow of materials and components secured against mix-ups / incorrect identification ?

Process support / personnel resources

6.3.1 5.3.1

Are the operators able to carry out their allotted tasks and are their qualifications kept up-to-date ?

Material resources

6.4.1 5.4.1

Are the maintenance and overhaul of machines / facilities controlled on a preventive basis ?

6.4.2* 5.4.2

Can the quality requirements be monitored effectively with the measurement, checking and inspection equipment used ?

6.4.3 5.4.3

Are the work-areas and test / inspection stations suitable for requirements ?

6.4.4 5.4.4

Are tools, equipment and test / inspection devices stored appropriately ?

Prozess analysis / Production Process effectiveness level

6.5.1 5.5.1

Are targets set for product and process ?

6.5.3* 5.5.2

If deviations from product and process requirements occur, are the causes analysed and corrective actions checked for effectiveness ?

6.5.4* 5.5.3

Are processes and products audited regularly ?

What should the process produce ? (output)

6.6.1* 5.6.1

Are the customer's requirements satisfied in terms of product and process ?

7.1* 6.1

Are the customer's requirements satisfied in terms of QM system, product (on delivery) and process ?

7.3* 6.2

Is the supply of components secure ?

Numbers of classifications / assessments (total 35 questions)

Fully approved supplier min. 29 questions (> 80 %) greenmax. 7 questions yellowno question red

Controlled supplier min. 22 questions (> 60 %) greenmax. 11 questions yellowmax. 3 questions red

Barred supplier less then 22 questions green [green] requirements fullfilledmore than 11 questions yellow [yellow] requirements partly fullfilledmore than 3 questions red [red] requirments not fullfilled

Overall Classification

[Grün] Forderungen erfüllt

[Gelb] Forderungen teilweise erfüllt

[Rot] Forderungen nicht erfüllt

Die Frage kann nicht uneingeschränkt mit ja beantwortet werden, das Ziel (Produkt / Prozess) ist nur mit zusätzlichen Maßnahmen erreichbar.Die Frage muss mit nein beantwortet werden, das Ziel (Produkt / Prozess) ist nicht erreichbar. Es besteht das potentielle Risiko eines Ausfalls.

Note: the maximum number of questions not assessed ist limited to 3green

Die Frage kann uneingeschränkt mit ja beantwortet werden. Es besteht kein potentielles Risiko.

If a questions ist not answered, a reason for this must be stated.

Customer support / customer satisfaction / service

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Audit outcome is summarized in a rated profile of each supplier

Audit Scoring Description Result92-100% Qualified

82-91% Conditionally qualified

Below 82% Not qualified Corrective Actions

Supplier selected for supplier development project, due to excellent cost structure and willingness to cooperate

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A detailed corrective action plan was developed for the selected suppliers. Improvements are tracked by Dragon Sourcing with follow-up audits

Nr. Finding Supplier Action Result follow up audit Nr 1 Result follow up audit Nr 2

1 NOK part areas, red boxes too small, set-up "locked prison". there are parts not identified in many places

Set-up NOK part areas on shop floor clearly identified and seperated from the process flow to avoid mixing with OK parts.

Red boxes have been implemented for NOK parts, but still need to improve consistency in the process and red boxes for NOK parts should be available at each production step for all the partsRecords available for NOK parts

The red boxed is implemented. On the label there should be detailed reasons for further analysis.

2 Calibration, identification and condtion of control jigs

Improve by using "hard stickers", change length measurement method at roll-forming, some calipers have missing identification and calibration traceability. Store jigs and maintain properly.

On the production floor; all the control jigs have a clear label with description and calibration date and calibration duration (12 months)Except devices in the laboratory such as scales (mechanical & electronic) and machines aiming to test chemical composition of raw material

The label is ok. The gauge used in inspection is not correct, it need be improved.

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Overall methodology & 7-step process

In production quality is regularly monitored by Dragon Sourcing during the production and before shipment

• Dragon Sourcing teams are trained to follow a 7-step process to execute Quality inspections

• Sampling and criteria requirements are detailed in a specific document for customer approval

• On-site data are recorded in a specifically designed Excel table

• Inspections are documented in a report submitted to customer

• Action plans are defined in order to improve product quality

Sampling & Criterias

Excel recording tool

Checkitem # Box # \ Marking Inner carton Mug Quantity Mug heigth Mug upper

diameterMug lowerdiameter

Wallthickness Mug weigth Material type Quality

1 OK OK 48 104.3 64.9 3.6 326 OK OK2 OK OK 48 103.4 64.5 4.2 346 OK OK3 OK OK 48 104 64.6 3.9 344 OK OK4 OK OK 48 104.6 64.8 3.8 317 OK OK5 OK OK 48 104.3 57 3.6 308 OK OK6 OK OK 48 104.8 61 3.8 317 OK OK7 OK OK 48 103.7 64.5 3.9 328 OK OK8 OK NO 48 103.8 62 3.9 345 OK OK9 OK OK 48 103.3 64.1 3.1 322 OK OK10 OK OK 48 103.2 63.4 3.7 325 OK OK11 OK OK 48 104.4 64.8 3.9 317 OK OK12 OK OK 48 102.3 64.2 3.2 316 OK OK13 OK OK 48 105.4 63 4 316 MO OK14 OK OK 45 105.6 65 4 322 OK OK15 OK OK 48 106.3 65.6 4.1 357 OK OK16 OK OK 48 103.4 65.5 3.9 311 NO OK17 OK NO 48 104.7 64.1 3.8 300 OK OK18 OK OK 48 104 60 3.8 342 OK OK

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Supplier performance is closely monitored and new potential suppliers regularly audited in order to manage the supplier for continuous improvement

Supplier performance management

Alternative sourcing opportunities monitoring

Overall performance

Q1 Q2 Q3 Q4

    Potential Supplier

1

Potential Supplier

2

Potential Supplier

3

Current Supplier

Price

Prod. 1 26.4 23.8 24.9 24.6

Prod. 2 36.1 33.8 34.9 33.7

Prod. 3 13.4 15.1 12.2 12.8

Prod. 4 40.2 38.1 41.3 38.4

Region Jiangsu Zhejiang Shanghai Shanghai

Turnover (M€) 6 14 8 19

Staff 350 700 430 880

Capabilities 100/day 120/day 75/day 140/day

Sample quality N/A Good N/A Good

Cooperation Good Good Average Good

Potential supplier assessment

Potential Supplier 1 Potential Supplier 2 Potential Supplier 3 Current Supplier

Competitivity Capabilities Motivation

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Annex

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VDA 6.3- Audit Contract

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Audit Contract VDA 6.3-2010

Client: XXX   

Audited Party:   

Reason for Audit:   

       Audit Objective:

          

Audit Variant:oInternal Audit oPotential AnalysisoExternal Audit oSpecial Audit

Audit Location:oInternal Audit oexternal _________________________________

Audit Team:Process Specialist(s):Lead Auditor:    

Auditors:          

Audit Extent:Prosesses:   Products: 

Manufacturing Locations:   Interfaces: Outside Processes:      

Audit DateDesired Date:   Shifts: Auditperiod:    Date of the Contract  Essential Documents (test/inspections regulations, contracts, important agreements, cost stipulations, etc.)

          

History (complaints, rejects, delivery performance, project status)       

   Remarks (background information)

          

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VDA 6.3- Audit Report

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VDA 6.3-2010 Audit Report: Assessment of Quality Capability

Supplier: Client: Date:

Supplier No.: Reason for contract: Contract No.:

Location:

Process/Product Assessmentindex Achieved Classified

Findings / requirements

Overall Process P2 bis P7 EG Highlights

Product group 1 EPN 2 EPN 3 EPN 4 EPN 5

Classification scale: A = 90-100 % (Q-cabable); B = > = 80 - 90 % (conditionallyt Q-capbable); C = 0 - < 80 % (not Q-capable) Areas of improvement

Audit history / Certificates Audit basis Date Carried out Result

Participants: Distribution to:

Timing for improvement plan:

For actions see 'Improvement program' and/or 'Immediate actions'

Lead Auditor Co-Auditor signed for Organisation

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VDA 6.3- Overview of Results

© 2015 Dragon Sourcing. Automotive Case Study.26

Supplier: Client:

Assessment Elements / Process Stages Assessment after Process Analysis (mean value, process stage E 1 - n) and generic Baseline

Target TargetMinimum requirement 80 90 Minimum requirement 80 90per assessment element per assessment element

Assessment elements / Process stages

pre-audit actual Assessment elements

pre-audit actual

Project ManagementP 2 89.0% nb

Process inputEU 1 58.0% nb

Planning Product/ProcessP 3 60.0% nb

Process sequenceEU 2 75.0% nb

Carrying out Product/Process P 4 80.0% nb

Personnel supportEU 3 40.0% nb

Supplier ManagementP 5 95.0% nb

Material resourcesEU 4 95.0% nb

Prozess AnalysisP 6 70.0% nb

Proces effectiveness levelEU 5 85.0% nb

Customer SatisfactionP 7 90.0% nb

Process resultEU 6 85.0% nb

Process step 1: E 1 85.0% nbTransport / parts handling / storage EU 7 60.0% nb

Process step 2: E 2 40.0% nb Generic Baseline

Process step 3: E 3 95.0% nb Process responsiblity PR 80.0% nb

Process step 4: E 4 nb Target orientation TO 70.0% nb

Process step 5: E 5 nb Communication CO 70.0% nb

Process step 6: E 6 nb Risk orientation RI 75.0% nb

Process step7: E 7 nb

Process step 8: E 8 nb Overall Compliance EG 78.9% nb

Process step 9: E 9 nb

Process step 10: E 10 nb

60 80 90 10070 80 90 100 60 70Erfüllungsgrad

Zuordnung zu Produktgruppen

Erfüllungsgrad

Prod

uct g

roup

1

Prod

uct g

roup

2

Prod

uct g

roup

3

Prod

uct g

roup

4

Prod

uct g

roup

5

Page 27: Automotive Steel Component

VDA 6.3- Assessment Matrix 1

© 2015 Dragon Sourcing. Automotive Case Study.27

Supplier: Client:A DevelopmentP 2 Project Management Achivement level %

2.1 2.2* 2.3 2.4 2.5* 2.6 2.7*

nb nb nb nb nb nb nb EPM

P 3 Planning Product/Process DevelopmentProduct Process

3.1 3.2* 3.3 3.4 3.5 3.1 3.2* 3.3 3.4 3.5

nb nb nb nb nb EPdP nb nb nb nb nb EPzP EPP

P 4 Carrying out Product/Process DevelopmentProduct Process

4.1 4.2 4.3 4.4 4.5* 4.6 4.7 4.8 4.9 4.1 4.2 4.3 4.4 4.5* 4.6 4.7 4.8 4.9

nb nb nb nb nb nb nb nb nb EPdR nb nb nb nb nb nb nb nb nb EPzR EPR

B Full Production5.1* 5.2 5.3 5.4* 5.5* 5.6 5.7

P 5 Supplier Management nb nb nb nb nb nb nb ELM

P 6 Process Analysis Production

6.1.1* 6.1.2 6.1.3 6.1.4 6.1.5 6.2.1* 6.2.2 6.2.3* 6.2.4* 6.2.5 6.2.6 6.3.1 6.3.2* 6.3.3 6.4.1 6.4.2* 6.4.3 6.4.4 6.5.1 6.5.2 6.5.3* 6.5.4* 6.6.1* 6.6.2 6.6.3 6.6.4Process step 1:

nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb E1Process step 2:

nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb E2Process step 3:

nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb E3Process step 4:

nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb E4Process step 5:

nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb E5Process step 6:

nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb E6Process step7:

nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb E7Process step 8:

nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb E8Process step 9:

nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb E9Process step 10:

nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb E10

Assessment of Subelements of the Process analysis (mean value step 1 - n) 1.1 1.2 1.3 1.4 1.5 2.1 2.2 2.3 2.4 2.5 2.6 3.1 3.2 3.3 4.1 4.2 4.3 4.4 5.1 5.2 5.3 5.4 6.1 6.2 6.3 6.4

nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb EPG

EU1 EU2 EU3 EU4 EU5 EU6

7.1* 7.2 7.3* 7.4 7.5 7.6

P 7 Customer Support / Customer Satisfaction / Services nb nb nb nb nb nb EK

nb

nb

nb

nb

nb

nb

nb

nb

nb

nb

nb

nb

nb

Eingabe: Es sind nur folgende Werte erlaubt:

nb

nb

nb nicht bewertet10 Forderungen voll erfüllt8 Forderungen überwiegend erfüllt6 Forderung teilweise erfüllt4 Forderungen unzureichend erfüllt0 Forderungen nicht erfüllt

5 Process Effectiveness Level

6 Process Result / Output

nb nb

nb

nb

1 Process Input 2 Work Content / Process Sequences 3 Personnel Support 4 Material Resources

nb

nb

nb

nb nb nb nb

Page 28: Automotive Steel Component

VDA 6.3- Assessment Matrix 2

© 2015 Dragon Sourcing. Automotive Case Study.28

7 Transport and Part Handling Generic Baseline

6.1.2 6.1.3 6.1.4 6.2.5 6.2.6 6.4.4 6.6.2 6.6.3 G 1 G 2 G 3 G 4PR TO CO RI

nb nb nb nb nb nb nb nb nb nb nb nb

nb nb nb nb nb nb nb nb nb nb nb nb

nb nb nb nb nb nb nb nb nb nb nb nb

nb nb nb nb nb nb nb nb nb nb nb nb

nb nb nb nb nb nb nb nb nb nb nb nb

nb nb nb nb nb nb nb nb nb nb nb nb

nb nb nb nb nb nb nb nb nb nb nb nb

nb nb nb nb nb nb nb nb nb nb nb nb

nb nb nb nb nb nb nb nb nb nb nb nb

nb nb nb nb nb nb nb nb nb nb nb nb

6.1.2 6.1.3 6.1.4 6.2.5 6.2.6 6.4.4 6.6.2 6.6.3

nb nb nb nb nb nb nb nb

Transport, parts handling EU7 nb

Page 29: Automotive Steel Component

VDA 6.3- Assessment Matrix 3

© 2015 Dragon Sourcing. Automotive Case Study.29

P 7 Customer Support / Customer Satisfaction / Services nb nb nb nb nb nb EK nb nb nb nb

Achivement level EPG by Product Groups Element P6[%] (mean value Ex-En)

Product group Overall Achivement Level EPN [%] by Achivement level [%] for PV ZI KO RI

Process steps Product Groups Generic Baseline nb nb nb nb

EPGN [%]

Achivement level Classifiedbefor SOP (Part A)

after SOP (Part B)

Classification results (A, B, C) must be

comment: "n.b." = question was not evaluated nb Green fields for entering nb nb nb blue, yellow and red fields will be calcuated entered manually, taking into account the downgrading rule!

Overall Achivement Level EG [%]:

2105 4711

nb

E1; E3; E4; E9 E1; E3;E6;E7;E9;E10

nb EPN [%]

Classified

nbED [%] nb

EP [%] nb

2105 nb

4711 nb

Product Group

nb

Classified

Page 30: Automotive Steel Component

VDA 6.3- Improvement Program 1

© 2015 Dragon Sourcing. Automotive Case Study.30

Supplier: Client:

To be completed by the auditor to be completed by the audited organisation

A DevelopmentP 2 Project Management

2.1 nb

2.2* nb

2.3 nb

2.4 nb

2.5* nb

2.6 nb

2.7* nb

P 3 Planning Product/Process Development

Product

3.1 nb

3.2* nb

3.3 nb

3.4 nb

3.5 nb

Process

3.1 nb

3.2* nb

3.3 nb

3.4 nb

3.5 nb

EffectivenessPos. Quest

Nr.Weaknesses, recommended actions,

findingsPoints Actions and cause analysis by the

organisationTiming Responsib.

Page 31: Automotive Steel Component

VDA 6.3- Improvement Program 2

© 2015 Dragon Sourcing. Automotive Case Study.31

P 4 Carrying out Product/Process Development

Product4.1 nb

4.2 nb

4.3 nb

4.4 nb

4.5* nb

4.6 nb

4.7 nb

4.8 nb

4.9 nb

Process4.1 nb

4.2 nb

4.3 nb

4.4 nb

4.5* nb

4.6 nb

4.7 nb

4.8 nb

4.9 nb

B Full ProductionP 5 Supplier Management

5.1* nb

5.2 nb

5.3 nb

5.4* nb

5.5* nb

5.6 nb

5.7 nb

P 6 Process Analysis Production

Process step 1:

1 Process Input6.1.1* nb

6.1.2 nb

6.1.3 nb

6.1.4 nb

6.1.5 nb

2 Work Content / Process Sequences6.2.1* nb

6.2.2 nb

6.2.3* nb

6.2.4* nb

6.2.5 nb

6.2.6 nb

3 Personnel Support6.3.1 nb

6.3.2* nb

6.3.3 nb

4 Material Resources6.4.1 nb

6.4.2* nb

6.4.3 nb

6.4.4 nb

5 Process Effectiveness Level6.5.1 nb

6.5.2 nb

6.5.3* nb

6.5.4* nb

6 Process Result / Output6.6.1* nb

6.6.2 nb

6.6.3 nb

6.6.4 nb

P 7 Customer Support / Customer Satisfaction / Services7.1* nb

7.2 nb

7.3* nb

7.4 nb

7.5 nb

7.6 nb