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Supply Chain Excellence

Webinar Leader Jeffrey Richards


Director, Global Production Control and Supplier Quality
Jeffrey.Richards@delphi.com

Background
QUALITY.
the Merriam Webster dictionary defines it as
a high level of value or excellence.
Although always focused on quality, the automotive industry is currently
mounting a renewed, intensive effort to identify and address areas of
concern in purchased products/components
especially those which are at elevated risk for exhibiting quality failures.

In 2014, to date, Delphi has received 113 formal


OEM customer complaints for problems which
have been caused by supplier non-conformances
This means that 113 times so far
this year, one of Delphis
major automotive customers had
their operations interrupted by
a problem caused by a Delphi
supplier!
And all of Delphis divisions were
impacted by one or more of these 113
formal OEM complaints!

Delphi Customer Satisfaction Message

Suppliers must have a.


Zero Defect Mentality and Culture in all manufacturing sites

In order to implement.
A policy of dont receive, dont build, dont ship non-conforming
product

And thereby achieve.


True built-in quality
Previous
process/
Supplier

Each step of process


Dont receive
Defects

Dont make
Defects

Dont ship
Defects

Next
process/
Customer

Zero Defects are Achievable!


Supplier Zero Defect Journey since 2011
25-49 NC
3%

25-49 NC
3%

50+ NC
7%

50+ NC
7%

1-24 NC
14%

1-24 NC
15%

Zero
Defects
76%

Zero
Defects
75%

2011

1-24 NC
14%

25-49
NC
2%

2012

50+ NC
6%

1-24 NC
13%
Zero
Defects
78%

2013

25-49 NC
2%

50+ NC
3%

Zero
Defects
82%

2014 (thru June)

Delphi Divisional Message

Ralf Weber
Manager, Supplier Quality & Development Delphi Packard
Ralf.Weber@delphi.com

Delphi Divisional Supplier Quality Message

Delphi plants have received defective purchased product


and, although most of the issues have been discovered and
contained by Delphi, some have made it to Delphis OEM
customers and some have even made it to the final
consumer as warranty issues.
o As a result, auto manufacturers are stepping up their scrutiny of
issues that impact vehicles.and this is not a short-term
phenomenon.it is the expected way of doing business!

Delphi Divisional Supplier Quality Message (contd)

Suppliers must ensure a quality-based culture, which includes:


1. Top-down leadership of quality principles
Continuous improvement mindset
Cornerstone of this mindset is appropriate
training, tools, and resources

Shift focus from reactivity to proactivity

Delphi Divisional Supplier Quality Message (contd)

2. Zero-defect mentality

Dont receive, dont build, dont ship defects


Ensure control of non-conforming product at the source

Delphi Divisional Supplier Quality Message (contd)

3. Understand and comply with Delphi Customer


Specific Requirements
www.delphi.com/suppliers

As you can see, there is a common, recurring theme


throughout the organization,

so.

What is your overall role in this initiative?


Delphi is requesting that our suppliers get engaged immediately in order
to fulfill the following overall high-level expectations:
1. Focus on being proactive.
2. Reduce lead time when responding to actual non-conformances.

3. Drive this same mindset with your supply base.

NOW..
lets talk about the details of how to do these three things.

The good news isno new tools or processes are required!

All that is required is conscientious application of good,


standard quality tools and processes with which you
are already familiar!

Delphis Approach - Proactive Risk Based Audits


No longer waiting for problems

Supply Base

Complexity

Risk drives action

Applica
-tion

Volume

History

Performing focused supplier audits based on risk

Delphis Approach - Proactive Risk Based Audits (contd)


Based upon the type, magnitude, and combination of risk factors,
Delphi applies one or more of the following tools as a proactive
measure against potential quality issues:
Layout Inspection and Functional Testing
Problem Case corrective action verification
Run at Rate verification
Manufacturing Capability Assessment

What are some risk-based tools / processes you should be using?


Failure Mode Analyses (DFMEA / PFMEA)
Focus on reducing highest RPNs

First Time Quality (FTQ)

OK

Layered Process Audits (LPA)

Standardized Work

Line Side Reviews

Not OK

The details behind your role.


1. Focus on being proactive:
a. Identify areas of greatest risk for quality problems.
i.

Immediately review DFMEA/PFMEA documentation


and focus on reducing highest RPNs

b. Protect your customers.


i.

Immediately implement proactive containment for high risk areas.

ii.

Proactively notify Delphi whenever you believe a potential quality problem may have been
manufactured and shipped to Delphi.
a)

If Delphi receives notification of the quality problem before it reaches our plant, the PPM portion of your
scorecard will NOT be impacted.

c. Propose corrective actions.


i.

Identify potential product/process changes which would reduce the risk and submit those
potential changes to Delphi for approval through the Supplier Suggestion/Change
Request (SS/CR) application in the Supplier Portal.

d. Implement systemic tools to maintain ongoing compliance and facilitate


continuous improvement.
i.

Risk Assessments to identify critical product/process characteristics

ii.

First Time Quality

iii. Layered Process Audits


iv. Standardized Work
v.

Line Side Reviews

The details behind your role.


2. Reduce lead time when responding to actual non-conformances.
a. Immediately protect your customers by implementing containment.
b. Define the potential scope of any defect/issue within 7 days.

The details behind your role.


3. Drive this same mindset with your supply base.
a.

Proactive risk-based audits

b.

Quality review meetings and audits

c.

Line Side Reviews

Delphi material is available for your use!!

Delphis Next Steps


Follow up with many of you after this webinar.
What actions have you completed?

Integration of this message during sourcing.


As part of the quoting process, you may be asked what you are doing
in response to this initiative.

Increased level 5 PPAPs in high-risk situations.

Increased on-site annual audits in high-risk situations.

For your information..


On August 4, 2014, we will activate a short online
questionnaire regarding your feedback about this webinar.
We will provide you with a link to the questionnaire prior to
that date.
We would certainly appreciate you taking a few moments to provide us with
your feedback!

If you would like a copy of todays presentation material to use


internally and to share with your colleagues, please send an
e-mail to Mario Lee (mario.lee@delphi.com) to request this
information.

Thank you for your ongoing commitment


to continuous quality improvement!

Questions?

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