Quality Forum 2013 ASES Improvement Program 19/09/2013 CSQSD Renault-Avtovaz Supplier Project Quality Department 0. Content 1. What it is ASES & Rank Up 2. ASES Benchmark Results 3. ASES/Rank Up Road Map 2013-2016 4. SWOT: ASES/Rank Up 2 1.1. What it is ASES & Rank Up ASES : Alliance Supplier Evaluation Standard Evaluation of supplier Quality Management System and shopfloor ASES is used for following purposes. New supplier evaluation for sourcing Current supplier evaluation for improvement Common to Renault and Nissan group. ASES result is shared between Renault and Nissan. Scoring since 2001 based on evaluation of 5000 supplier sites 1.2. What it is ASES & Rank Up ASES result rank 50 points 50 points - 20 points 4 80 3 2 60 B Improvement Acceptable (40 ~ 59) needed D 20 d Good Satisfactory (60 ~ 79) C 40 -Warranty -PPM -Recall camp 1 TOTAL : 100 points A Excellent (80 ~ 100) 20 Result indicator (optional) better 100 Judgment criteria Does not meet requirements 40 60 c 80 b Process Indicator 100 a better Evaluation : 8 subjects in room (70 points) 1 shopfloor evaluation (30 points) TOTAL : 100 points ASES result rank is provided as A, B, C and D rank shown as above chart. 1.3. What it is ASES & Rank Up ASES is structured by following 9 chapters What is evaluated ? 1. Quality Management by top management Certification and internal audits 2. Analysis of defects and recurrence prevention In-room evaluation Renault / NISSAN Warranty Information analysis / Cause analysis/ Prevention of reoccurence 3. Quality target setting for new project explanation Supplier reviewmanagement / Design FMEA at design phase 4.Design Project 5. PFMEA & Control Plan OHP Process FMEA / Control plan Supplier 6. Project management at pre-production phase Documents (Standards, Procedures , Files etc.) 7. Ramp-up 8. Change management – Process / Product 9. Sub supplier control 8. Shopfloor Control of start-up & equipment condition Training Management of NG parts (rule, rework, mixing) Management of unusual situations Safety characteristics Continuous improvement in shopfloor critical item with demerit, based on past experience Shopfloor evaluation 1.4. What it is ASES & Rank Up What is Rank up activity Activity to improve D rank suppliers to C rank suppliers (improvement to B for Excellence Plan and risky suppliers) 2 OK 3 4 Joint Activity by Supplier and R/A(led by A ・A rank : Excellent Supplier) Rank-up ・B rank : Satisfactory B ・C rank : Marginal C 1 D d c b a ・D rank : Does not meet R/A requirements 1.5. What it is ASES & Rank Up Basic schedule Purchasing dept Candidate suppliers RFQ SQA & supplier Review meeting to decide on possibility of rank up Rank up possible Rank up Kick off meeting With supplier & Contract sign off Rank up Activity start A B ASES Sourcing decision C D OK Rank-Up Activity Actio n Re-ASES Actio Actio n n Kick-offFollow Follow up#1 up#2 4~6 months A B C D Rank-Up achieved SOP 2. ASES Benchmark Results* *April 2013 3. ASES/Rank Up Road Map 2013-2016 Forecast: ASES Rankup for nominated supplier (A,B) (Renault + Renault/Avtovaz) 80% 70% 60% 50% 40% 30% 20% 10% 0% 70% 60% 55% 40% 25% 25% 25% 35% 19% 21% 20% 2012 Aug 13 2013 % or A+B 2013 AB Ranking 50% 25% 0% 2014 TARGET COMMITMENT 2015 2016 4. SWOT: ASES/Rank Up S our strengths W our weak points - Renault & Avtovaz one voice to suppliers for quality - Still low level of QMS & Production competence of the suppliers - Young and motivated team, strong ASES training program - Lack of technological specialization, deep knowledge product/process - Tool box & coaching support from DQDA Central & LT in Togliatty & Moscow - Large number of specialists, but lack of expertise level experts - CSQSD Management Involvement - The same suppliers for some projects & serial suppliers - Long lead time to get an expert at expertise level (~1,5 year at least for ASES) - Two teams in Moscow and Togliatti - Limited Mobility of OOO-origins - Benchmark visits - Different HR systems between Renault and AVTOVAZ - Training on quality & industrial basics by outsourcing bodies - AvtoVAZ purchases are involved in the quality (PPM) - Recognition of CSQSD value by AVTOVAZ and Renault - Quality targets deployment through Purchasing Department in RNPO & CPO O opportunities we could have T threats from external factors - Alliance quality tools trainings organization for suppliers - ASES/ANPQP qualified people turnover - Cooperation with Nissan - Large number of new projects + Volume ramp up + Increase of localization, - Opportunities for more WW suppliers come to Russia - Some suppliers degrades after Rank Up/PPM action plan are finished, - Quality targets deployment through Purchasing Department both in Renault & Avtovaz - CSQSD negative opinion is not taken into account at ASC in some cases (mostly for Avtovaz projects) - Many experiences from many new projects - Poor project management at Avtovaz (ANPQP) - Motivation to study foreign language, management skills with robust training program - Supplier Top management often is not involved in quality issues, - Contribution to the Alliance projects out of DQDA work scope - The high level of staff turnover at suppliers - Tier-N improvement (Steel, critical components) - Unexpected the restriction of the activities due to financial issue - A lot of internal communications within Renault & Avtovaz Thank you for your attention! 11