NCR Supplier Quality Webcast
June 8 2011
Bob Ciminera - Vice President Strategic Sourcing
Robert Mele - Vice President, Quality and Continuous Improvement
NCR Confidential
Agenda – Supplier Quality Webcast
Introduction
Supplier PPM, Trend
Requirements/
Timeline
350 PPM Action Plans
Supplier Quality Training
Bob Ciminera
Robert Mele
Robert Mele
Michael Crutch
SQDD Update/PPAP/FAI
Wagih Wazni
NCR Actions for Success
Robert Mele
Q&A
/
All
NCR Confidential
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What Is PPM?
Parts Rejected Per Million Parts Received:
PPM = Rejects / Receipts * 1,000,000
Rolling 3 Month Average minimizes noise
Focus on high rejects AND high PPM
SupplierName
High Rejects Supplier
High PPM Supplier
Receipts
Rejects
PPM
1,421,619
2,877
2,024
20,920
326
15,583
Actual data from 1 March – 31 May 2011
High rejects impact NCR overall PPM more than
individual supplier PPM
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Supplier Quality PPM – Global View
NCR Supplier PPM Trend
2500
Defects in PPM
2240
3 month
rolling
average
2000
1500
1000
1517
1097
935 745 749 657
Target
500
20
09
20
10
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350 PPM Actions
Use of MSA to validate and calibrate rejections between supplier and NCR Sites
Weekly focused actions on failure modes impacting overall PPM target
Analysis of SCAR failure mode data to drive DMAIC projects
Individual Top Offender Supplier action plans to achieve 350ppm
Supplier Webcast every two months – Next 8/10/11
PPAP requirement for all New Parts/Suppliers
NCR Confidential
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PPM Requirements – What you need to do
March - May 3-Month rolling average: 657 PPM
PPM Requirements
July 2011: 500 PPM
October 2011: 350 PPM
March 2012: 300 PPM
October 2012: 200 PPM
What actions must you take to achieve 350 PPM?
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Short Term Actions
For suppliers > 350 PPM:
108 letters sent requesting Action Plan
Received majority – communicating with
suppliers who haven’t provided plan
Immediately Confirm updated Supplier Inspection
program
Return 350 PPM Action Plan to NCR
Monthly review with your SQE to
begin
Immediate increase in inspection
Execute Action Plan to achieve 350 PPM by October but begin inspection
NOW to reduce rejects at NCR
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Supplier Quality Training
Xbar-R Chart of Supp2
1
1
Suppliers
23
11
10
6
10
Quality Tools
Statistical Process Control
Control Charts
PPAP Training
U C L=602.474
Sample M ean
Date
3-May
16-May
20-Jun
18-Jul
13-Jun
602
_
_
X=600.23
600
598
LC L=597.986
1
3
5
7
9
11
Sample
13
15
17
19
U C L=8.225
8
Sample Range
Plant
China
India
Hungary
U.S.
Brazil
6
_
R=3.890
4
2
0
LC L=0
1
3
5
7
9
11
Sample
13
15
17
19
SPC and Control Charts will enable
early warning and prevent defective
parts from being shipped to NCR.
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Supplier Quality Design & Development (SQDD)
Purpose
 Assure smooth part & module introduction to NCR – PPAP & Design Review
 Selection of quality suppliers for NPI
Current Status
 Design review started on key programs (S1, S2 & SDM)
 PPAP qualification = Started with 30% rejection rate
 Reviewing suppliers capability and alignment with NCR quality goals.
 500 PPM by July 1 and 350 PPM by Oct 1, 2011
Future Activities
 ID suppliers with score of 2 or 1 on score card for quality to prevent upfront
involvements with new programs or winning new business
 Award suppliers new business with score 4 & 5 across the score card with
cost advantage
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Supplier Quality Expectations
Inspection and 350 PPM plan due – Review with
SQE
Clear understanding of PPAP and SPC
PPM Requirement
July 2011: 500 PPM
October 2011: 350 PPM
October 2012: 200 PPM
Webcast Schedule
August 10
Results of July goals and actions to
ensure October 350 PPM
October 5
2011 YTD summary, final 2011
actions required
December 7
2012-2013 supplier requirements
NCR Confidential
October 1, 2011: 350 PPM
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Actions for Success
Short Term – 3Q2011
• Finalize Qualification Process within NCR
• India Supplier & Critical 40 supplier action plans – next steps
• Finish SPC/PPAP training for top suppliers
• Report card on 350 project plan
• Supplier metrology requirements established and communicated
• Supplier inspection plan submissions – suppliers > 500 PPM
Mid Term – end 1Q2012
Long Term – YE2012
• Supplier Quality web portal
• Supplier Approval List updated
• 200 PPM
• Desourcing process
• Drawing uniformity from NCR
• Supplier Metrology requirements achieved
• Sampling sustainment strategy
• 300 PPM
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Resources and Contacts
For Supplier Resources:
http://www.ncr.com/about_ncr/partners/suppliers/
Assistance with NPI, PPAP, FAI:
Wagih Wazni (Wagih.Wazni@NCR.com)
Director, Global Supplier Quality Engineer
Assistance with Production Parts, Incoming
Inspection, SCARS, 350 PPM Plan:
Michael Crutch (Michael.Crutch@NCR.com)
Director, Supplier Quality Excellence
Overall quality issues:
Robert Mele (Robert.Mele@NCR.com)
VP, Quality and Continuous Improvement
NCR Confidential
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Q&A
Q&A
NCR Confidential
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