LEAR Supplier
Communication Day
Munich, Germany
April 27, 2005
Agenda
12:00 – 13:00
Supplier Arrival and Gathering
13:00 – 13:10
Opening Comments……………..…
13:10 – 13:20
Supplier Quality Video
13:20 – 13:35
13:35 – 13:45
13:45 – 14:00
14:00 – 14:20
14:20 – 14:40
14:40 – 14:50
14:50 – 15:00
Sourcing Strategy ………………….
Supplier Readiness strategy………
Program Management APQP……..
Launch Readiness………………….
Supplier Quality……………………..
Supplier Development…………..….
Closing Comments………………….
Michael Hartig
Michael Hartig
Elie Ghazal
Spencer Gill
Bo Carlberg
Alejandro De Icaza
Michael Hartig
Joe Zimmer
Sourcing Strategy
Michael Hartig
Lear Corporation
Vice President, Purchasing Europe, Africa &
Asian Pacific Operations
Supplier Communication Meeting
Munich, Germany
April 27, 2005
Lear Business Profile
• World’s fifth largest automotive supplier
• Fortune 129 company
• 23rd fastest growing company in the US over the last 10 years
• Over 360 facilities in 34 countries with over 110,000 employees
• 2004 sales $17 billion - up 8% from 2003
• Record $3.8 billion, 3 year backlog
• Leader in the automotive interiors, electrical distribution and
electronics
• Global JIT network
Growing Sales and Capabilities
17.00
Sales in $ Billions
15.75
14.10
14.40
13.60
12.40
9.10
7.30
6.20
4.70
3.10
T & C*
ELECTRICAL & ELECTRONICS
INSTRUMENT PANELS
FLOOR & ACOUSTIC SYSTEMS
DOOR SYSTEMS
OVERHEAD SYSTEMS
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
SEAT SYSTEMS
* Terminals and Connectors
Lear‘s Global Presence
US/Canada
54%
North America
Canada
United States
Mexico
Central America
Honduras
South America
Argentina
Brazil
2004 Sales
$17.0 Billion
Europe
Europe
Austria
36%
Belgium
Czech rep.
France
Germany
Holland
Hungary
Italy
Ireland
Poland
Portugal
Romania
Spain
Sweden
Turkey
United Kingdom
Africa
Morocco
South Africa
Tunisia
Asia
China
Japan
India
Philippines
Russia
S Korea
Singapore
Thailand
Australia
Asia, Mexico and the Rest of the World
10%
Supplier Opportunities
This development offers substantial opportunities for Suppliers
to grow with Lear
•
Joint product development
•
Access to automotive market also for smaller suppliers
•
Long term cooperation with “Preferred Suppliers”
•
Support to manage complex JIT logistics
•
Support in international growth
•
Supply to Premium Brands through Lear
Supply Base Requirements
A “First Class” Supplier…
•
•
•
•
•
Delivers outstanding quality
Is highly experienced
Has competitive overall costs
Is strongly customer focused
Is financially stable
Is Competitive in the Automotive Environment
Supply Base Requirements
Expectations:
•
•
•
•
•
•
•
•
•
•
Open book calculations, cost breakdowns
Target costing
Savings proposals and VAVE actions
Commitment to yearly cost reductions (LSA)
Technical support
LCC manufacturing capabilities
Accurate tooling follow-up and timing plan
Professional change management before and after SOP
Tooling audit acceptance
Sufficient engineering capabilities
Supply Base Requirements
The Fulfillment of Quality Requirements is a Must!
• Supplier must be ISO 9001, QS 9000 or TS 16949 registered
• Support Advanced Product Quality Planning and control plan (APQP)
• Perform a production trial run
• Obtain full Production Part Approval (PPAP level 3; IMDS)
• Supplier Rating System (SRS)
• Environmental management program in progress
• Electronic Data Interchange (EDI) capabilities
Supplier Selection Process
Final Supplier Selection will be determined by Sourcing Committee
Purchasing
Decision Criteria:
Supplier
Development
Engineering
Quality
Program
Mgmt
Operations
•
•
•
•
•
•
Quality
Engineering Capabilities
Logistics
LCC Capabilities
Product Innovation
Total Cost
Thank You
Elie Ghazal
Lear Corporation
Vice President, Quality
Sourcing
Decision
Supplier
Award
Post Launch
Launch/SOP
Pilot
Prototype
Planning
Info sharing Populating Profile
Supplier APQP Tracking –Program MGMT CFD
Red/Yellow/critical Suppliers
Input
Development
Concept
Program Management Process
IPD Launch Mfg./Supplier Readiness
S U P
P O
R
T
Supplier Quality- Supplier Quality Group IPD
C O M M U N I CA T I ON
Supplier Development -Purchasing
Thank You
Spencer Gill
Lear Corporation
Director, Global Business Practices
LPMP / ProFile
Consumer Driven
Lear Program Management Process
- The One Lear Program Mgmt Process
- All Products
- All Customers
- Encompasses Development & Launch
- Cross Functional Team
- Program Managers are Responsible
Planning
Pre-Award
-Advanced Bill of Material
-Advanced Program Review (APR)
-Benchmarking
-Customer Inputs
-Design Verification Plan
-Patent Clearance
-Process Assumptions
-Product Assumptions
-Quote Package
-Sourcing Strategy
-Statement of Work
-Target Agreements
Post-Award
-Business Award Confirmation
-Communication Plan
-Cross-Functional Team
-Customer Review Plan
-Lesson Learned Review
-Logistics Requirements
-Make vs. Buy Decision
-Management Gateway Review (MGR)
-Manufacturing Location Assignment
-Program Budget
-Program Kick-Off
-Program Plan
-Roadmap Customer Satisfaction
-Roadmap Investment
-Roadmap Profit
-Special Characteristics Preliminary
-Supply Base Review
Customer Focused
Prototype
Pilot
Launch
Post Launch
-Appearance Requirements Definition
-Bill of Material (BOM)
-Build Requirements
-Build Support Plan
-Control Plan (Prototype)
-Cost / Price
-Customer MRD
-Customer Order Validation
-Customer P.O.
-Customer Review
-Design for Manufacturability and Assembly
-Design Failure Mode Effects Analysis (DFMEA)
-Design Freeze
-Design Review
-Design Verification Report
-Engineering Dwgs/Specifications
-Engineering Math Data
-Equipment Plan
-Facilities Plan
-Feasibility Commitment
-Finite Element Analysis (FEA)
-Floor Plan Layout
-Gages/Test Equipment Plan
-Initiate Engineering Change Control
-Management Gateway Review (MGR
-PAR Approval
-Packaging Specs. - Inbound
-Packaging Specs - Outbound
-Plant Build Schedule
-Plant Review (PR)
-Process Capability Studies
-Process Failure Mode Effects Analysis (PFMEA)
-Process Flow Chart
-Production Validation Plan
-Service Review
-Special Characteristics Preliminary
-Supplier Day
-Supplier MRD
-Supply Base Review
-Supplier Sourcing Decision
-Tooling Plan
-Appearance Requirements Approval
-Bill of Material (BOM)
-Build Requirements
-Build Support Plan
-Control Plan (Pre-Prod)
-Cost / Price
-Customer MRD
-Customer Order Validation
-Customer P.O.
-Customer Review
-Design Failure Mode Effects Analysis (DFMEA)
-Design Freeze
-Design Review
-Engineering Dwgs/Specifications
-Engineering Math Data
-Equipment Qualification
-Facilities Readiness
-Feasibility Commitment
-Floor Plan Layout
-Gages/Test Equipment Qualification
-Management Gateway Review (MGR)
-MSA Plan
-Operator Instructions
-Packaging Evaluation Inbound
-Packaging Evaluation Outbound
-Plant Build Schedule
-Plant Review (PR)
-PPAP Approval
-Process Capability Studies
-Process Failure Mode Effects Analysis (PFMEA)
-Process Flow Chart
-Production Trial Run
-Production Validation Report
-Service Review
-Special Characteristics
-Supplier Day
-Supplier MRD
-Supplier PPAP Milestone
-Supply Base Review
--Teardown
-Tooling Qualification
-Bill of Material (BOM)
-Build Support Plan
-Control Plan
-Cost / Price
-Customer MRD
-Customer Order Validation
-Customer P.O.
-Customer Review
-Design Failure Mode Effects Analysis (DFMEA)
-Design Freeze
-Design Review
-Engineering Dwgs/Specifications
-Engineering Math Data
-Equipment Qualification
-Facilities Readiness
-Floor Plan Layout
-Gages/Test Equipment Qualification
-Management Gateway Review (MGR)
-MSA Validation
-Operator Instructions
-Plant Personnel Plan
-Plant Review (PR)
-PPAP Approval
-Process Capability Studies
-Process Failure Mode Effects Analysis (PFMEA)
-Process Flow Chart
-Production Ramp Up Plan
-Production Trial Run
-Service Review
-Supplier Day
-Supplier MRD
-Supply Base Review
-Teardown
-Tooling Qualification
-Customer Satisfaction
-Lessons Learned Review
-Management Gateway Review (MGR)
-Plant Review (PR)
-Production Effectiveness
-Reduced Variation
-Service Review
-Supplier Performance Review
-Teardown
-VA/VE
Reviews
SR
MGR
DR SR PR MGR
Open Issues
DR SR PR MGR
Risk Management
Consumer Driven
ProFile - Web based Software
- Cross Functional Teams Manage
- Timing Plans
- Open issues
- Documents
- Parts
- Suppliers…
- Stats 900 Projects, 12k Users, 75k Issues,
& 150k Documents
Advance Relentlessly
Rev: 12/03/2001
Change Control
DR SR PR MGR
Lessons Learned
Advance Relentlessly
PR MGR
Roadmaps
Customer Focused
Supplier APQP
Supplier APQP Process
Prototype
Pilot
Launch
Prelim. SC/CC Review
Engineering Release
DFMEA
DV Test
Equip & Facilities Review
Gage & Fixture Review
Control Plan
Feasibility
Packaging Approval
SC/CC Review
Engineering Release
Tool Kick-Off
Heat Treat Review
Process Flow / Floor Plan
PFMEA
Pre-Launch Control Plan
Process / Operator Instructions
Production Tooling Complete
Dimensional Approval
Appearance Approval
Int. Mat. Data System Cert
Team Feasibility
Run at Rate
PPAP Submission
PV Testing
Doc & Process Review
PFMEA
Control Plan
Launch Containment Plan
Ram Up Plan
PPAP Approval
31 Items
Supplier APQP
OEM Timeline
LPMP
Planning
Prototype 1
Prototype 2
Pilot
Launch
When do we know?
Part Level Supplier APQP
On Line APQP
Speed is Critical to our Success!
- Real-time by Part Information
- Correct, & High Quality Information
- Accurate Dates
- Quality Documentation
On line APQP
Lear’s Expectations
Real-time
- Use of the On line APQP in ProFile
- By Part Current Timing and Documentation
Correct and High Quality Information
- Single point contact for timing and risks
- Same person you hold responsible for launch success
On Line APQP in ProFile
How to enroll?
Click on the Supplier Information link
A new window will open
Click on the Lear link
DETAILED
INSTRUCTIONS FOR
SUPPLIER ACCESS TO
LEAR APPLICATIONS
On Line APQP in ProFile
To Login
Click on this link to enter the ProFile System.
Tip: The previous steps can be skipped by typing the following in
your browser address bar:
https://access2.lear.com
This is the list of Programs you are
listed as a Supplier.
ie Vehicle and Lear Product
These are the components
Prototype Phase
Pilot Phase
Launch Phase
Click here to see a list of Supplier
Key Dates
Auto Status Colors:
Green until 2 weeks before Target
Turns Yellow 2 weeks before Target
Turns Red on Target Date
Flagging as Risk Yes overrides
auto-status and makes status
red!
Blue means item has been
completed
Click Notify Lear SQE When Complete
LPMP / ProFile
Next Steps
- Go to www.lear.com – Supplier Info – Web Apps – to
Establish Supplier Admin
- Supplier Admin grants ProFile APQP access to your
Program Managers (or acting PM’s)
- Go to Web Apps or directly to https://access2.lear.com
- Keep part APQP up to date in the On Line system
- Flag items as a risk as soon a it known
Thank You
Bo Carlberg
(Presented by Elie Ghazal)
Lear Corporation
Director, Manufactoring Readiness
Mission Statement
 Launch Manufacturing and Supplier Readiness
MISSION ;
To Assure FLAWLESS LAUNCHES !
Means;
 Assure that LEAR Plants, and LEAR Suppliers, Have a PLAN, are
ORGANIZED, CAPABLE, and COMMITTED, and by Cross Functional
TEAMWORK, Fulfilling CUSTOMERS and LEAR DELIVERABLES,
EXCEEDING EXPECTATIONS !
Launch Definition
What is a Launch ?
It’s Not --- !!
A One Day Event, at SOP
Business as Usual
Something that Program and Engineering are doing
A Task, that we will do when things have calmed down a little
It Is --- !!
A Complex, All Consuming Time Period, that varies much from the
normal Plant Deliverables, Outlining the foundation for the next 7
Years, that Requires…..
Planning, Dedicated Organization, Extensive Communication, TEAM
Work, and Committed People, that has Management’s Commitment
and Support !
Organization
Launch Mfg./ Supplier Readiness TEAM
Launch Team have extended experience in Plant Operations, Program
Management, Supplier Readiness, Logistics and Engineering
Launch Managers have detailed understanding of Lear expectations
Launch Managers are trained in Best Practices
Launch Managers are trained in LEAN Principles
Launch Managers are skilled enough, to understand, where Expert
Assessments are needed, and know where to find them within LEAR
Launch Managers is on board 8-12 months prior to SOP
Launch Managers utilize the IPD Launch/Mfg. Readiness Handbook,
and LEAN Principals Check List, as a base, for their Launch
Assessments
Launch Managers should be used for Best Practices, LEAN Principles
and Design For Assembly
Launch Managers, have extended experience, and we
will help our Suppliers, to become ready for Launch !
How is the Launch Team Working
 We are an Audit Team, verifying the Status of our Launches
in LEAR Plants and at our Suppliers.
 We are a Recommendation/ Resolution Team, Driving
Acceleration and Resolutions, on a Divisional Level.
Raising The Flag, to Protect LEAR’s Launch Performance.
 We are an Action Team, when Rating is RED, helping
Launch Manager / Plant and Suppliers, in a very “Handson” way, Leading Run@Rates, Getting the Decisions made,
Working with the Suppliers for Support and Resolution,
Hitting our Deliverables, Where and When it has to Happen.
4 Launch Readiness Reviews - LRR
Review #1
Review #2
Review #3
Review #4
8-12 months prior to
Launch
6-8 Months prior to
Launch
2-4 Months Prior to
Launch
1-2 Months prior to
Launch
Launch Readiness
Assessment
Plant Program
Presentation
Launch Manual Overview
Review of Deliverables
and Roles / Expectations
Launch Readiness
Assessment
APQP review
Open Issue list
Manufacturing Readiness
Report
Review of open Red
issues, and Closing
Actions
Review of Hire, Training
and Containment plans
Review Manufacturing
Process and Run@Rates
Manufacturing Readiness
Report
Follow up on Open issues
Assess Overall
Readiness
Assign Launch Support
Personnel
Est. Communication List
Supplier Awareness
Review - Expectations
Supplier Readiness
Assessment
Process Expert
Assessments, if Needed
Supplier Launch Plan
and Organization
Established
Supplier Manufacturing
Readiness Report
Run@Rate Participation
Ensure Standardized
Supplier Day
Ramp Up on Site Support
Launch Readiness Assessment
Commodity
New /
Replace
Sorted by SOP Date
Acceleration
Date ass'd
Launch Manager
PAR
Operations
Leader
suppliers
REGION
RESP.
Tooling
Plant
Facilities
Program
Name
People
Customer
Product
Current Assessment
Need Immediate Focus
Not Approved
and late
Everything under control
Done and
approved or on
time
PreSeries
Start Date
SOP
Customer
PPAP
r
Kozma
Front and Rear
Seat
2006-05-01
New
g
Schueler
g
Juergen
Kratzman
g
Győr
g
Audi TT
r
Audi
g
Frank Leinhos
Front and Rear
Seat
Replace
2004-06-04
2006-03-13
2006-08-01
2006-01-15
2004-06-04
2006-02-01
2006-08-01
2006-01-15
2005-02-10
2006-06-01
2004-10-18
2005-06-01
2005-10-01
2006-02-01
g
Schueler
g
Paco Tello
g
Eisenach
g
X4400
g
Opel
g
Replace
g
Schueler
g
Paco Tello
Front Seat
g
Epila
Ennriquo Rubio
g
X4400
g
Opel
g
Andrez Kornas
Trim
Replace
g
Schueler
g
Nihat Erding
g
Tychy
g
CD 340
g
Ford
g
Valdemoro
Paco Tello
Schueler
F. Suarez
Front and Rear
Seat
g
g
2004-05-14
Replace
g
A7-6
g
PSA
g
Replace
g
F. Suarez
g
Schueler
g
Paco Tello
g
Valdemoro
r
A31
r
PSA
Front and Rear
Seat
Bo Carlberg
(Presented by Brian Rossiter)
Lear Corporation
Director, Manufactoring Readiness
IPD Supplier Readiness
 One of LEAR’s main function, in the
Supplier Value Stream, is to Coordinate the In-Coming Material, and
Assemble that for JIT delivery, to our
Customer
 Another item that is imperative, is to
ensure that LEAR and all our
Suppliers, work as ONE TEAM
 We are dependent on each others, and
none of us are stronger then the
weakest link of the Chain
IPD Supplier Readiness
•
Ensure Flawless Launches throughout Lear’s Supply Base and sub-supplier base
•
Track suppliers 1 year before launch through SOP + 90 on the Supplier Readiness
Assessment
•
The Supplier Readiness Assessment has been added to the launch / manufacturing
readiness assessment, this is how suppliers will be tracked
•
Monthly High Risk Supplier meeting for Launch
•
Two supplier days will be held before every launch at the manufacturing facility
•
Supply base will be present at Lear site during all major build events leading up to launch
•
Supply base to be present at launch till plant manager / launch manager releases them
Commercial Issues
Material Planning
Production Scheduling
Capacity Planning
Quality Planning
Capital Equipment
Engineering Issues
Sub-supplier
Primary tooling
Design Issues
Summary
Organizational Planning
Supplier Readiness Assessment
Summary
Supplier
Part Description
Comments
Supplier - A
Plastics
Supplier does not have sufficient capacity
Supplier - B
Trim
Supplier does not have sufficient training plan
Supplier - C
Headrest Guide
Supplier is ready to Launch
Supplier - D
Tracks
Supplier has rattle issues with Track
Supplier - E
Recliner
Supplier lead time for Stamping die to long
Supplier - F
Lumbar ASM
Supplier is ready to Launch
Supplier - G
Back Frame
Waiting on subsupplier R @ R
Supplier - H
Switch
Supplier is ready to Launch
Cushion Frame
Lear does not agree with supplier Quality measurable
Supplier - J
Screw
Supplier is ready to Launch
Supplier - K
Side Shield
Supplier is ready to Launch
Supplier - I
Supplier - L
Wire Harness
Supplier is ready to Launch
Supplier - M
Back Panel
Plastic back pannel show parting lines and flash
Supplier - N
Seat Belts
Supplier is ready to Launch
Supplier - O
Airbags
Supplier is ready to Launch
Supplier - P
Fasteners
Supplier is ready to Launch
Supplier - Q
Foam
2 out of 10 foam tools are behind schedule
Supplier - R
Latches
Supplier is ready to Launch
How will this effect LEAR Suppliers ?
 Early Upfront Communication. Establish LEARSupplier Communication List.
 LEAR will call to Launch Awareness Meetings, 8-12
months prior to SOP.
 LEAR Launch Readiness and Supplier Quality Staff
will visit you, and in depth, review your Launch
Plan, Run@Rates, and your progress, towards a
Flawless Launch.
 LEAR will call you to Supplier Day, with Emphasis
Builds.
 Launch on Site Support, from Suppliers, in LEAR
Plants, at significant Volume Ramp Up.
How will this effect LEAR Suppliers ?
Top Five High Risk Supplier Meeting For Launch
 Once a month the launch group brings in suppliers for
each high risk launch
 Suppliers invited are critical suppliers
 Provide them a base line of expectations.
 Supplier Participation consists of working level people on
the particular launch
 Two-way communication with the suppliers
Bo Carlberg
(Presented by Elie Ghazal)
Lear Corporation
Director, Manufactoring Readiness
Quality Expectations !
 Quality First !
 Prototype and Pre-series Deliveries, has SAME
expectation, in terms of Quality and Timing, as
Serial Deliveries, and HIGHER demands, in terms of
Documentation, and Follow Up
 Respect FIFO, at Launches, Engineering Changes
makes environment more challenging
 LEAR expects No Defect or Suspect Part, to be
Shipped to LEAR, Contain and Sort at the Source
 Again, Communicate !
Planning Expectations !
 Organize your Company, for the up-coming Launch
 Launch Plan, Organization, Company Quality
System, Equipment installation, Training and Time
 Free up Necessary Time, for Key Individuals
 Management Support and Involvement, at predesignated Milestones and Go Ahead Gates, are
Crucial, for Launch Success
 Understand that careful Planning, and Execution,
add some cost initially, but gives quick Pay-Back,
while not spending resources up-front, easily can
cost us all a fortune, both in Money and Reputation
Timing Expectations !
Planning Timeline
PRODUCT DESIGN / DEVEVELOPMENT
VALIDATION TEST
SUPPLIER READINESS
PLANT INSTALL
PLANT TRANING
WELL PREPARED LAUNCH
Timing Expectations !
Typical Timeline
PRODUCT DESIGN / DEVEVELOPMENT
VALIDATION TEST
SUPPLIER READINESS
PLANT INSTALL
PLANT TRANING
RISK FOR BAD LAUNCH
Execution Expectations !
 Attend Supplier Awareness Day and Supplier Days,
with Key Individuals, and be Active
 Ensure that you have a Launch/ Mfg. Plan, and that
you are tracking your progress daily, and
communicate that with LEAR Plant Launch Manager
 If LEAR is late on a delivery, or prerequisite to you,
make that clear to us
 That your company has made the necessary
Contacts with Partners, that will help you, at the
LEAR Launch Location, i.e. Technical and Logistical
Companies
Summary






If you miss something from LEAR – Make it Clear to Us !
Communication is Key, at Launch. Over-Communicate !
Make a Launch Plan, and Ensure Resources for It !
Respect your own Timing – and Respect our Timing !
Respect the People – Training, Training and Training !
We are a TEAM – ONE TEAM, Let’s Help Each Others !
 If Problems or Risk Arises, Involve LEAR,
before a Potential Issue, has become a Fact !
Final Statement !
KEEP IT GREEN !
Thank You
De Icaza Alejandro
(Presented by Robin Govani)
Lear Corporation
Manager, Supplier Quality
Who are we?
 Supplier Quality – a dedicated comprehensive team
located across Europe.
 Actively working with current supply base to improve
overall performance via Top 5 approach and robust PPM
roadmaps.
 Assessing potential suppliers for new programs.
 To support, facilitate and guide external suppliers during
all key phases of a launch.
 Suppliers communication in respect to systems,
requirements and program quality information.
 Progressively assess readiness of all key suppliers and
act accordingly.
Supplier Quality Initiatives
Supplier Performance
Customer
Expectations
Spills = 0
RPPM’s < 20
Zero PPM Commitment /
Expected Improvements
Top 5 Activities
Problem Solving Techniques
Web based Resources
Supplier Quality Mission
To protect Lear and it’s customers from Quality
Defects and Spills.
To continue striving for data accuracy in order to make
good quality decisions.
To be pro-active in our supplier quality initiatives in
order to exceed Lear expectations.
IPD Supplier Quality Performance
•
•
•
•
68% Y-O-Y improvement 2003 – 2004
2005 Goal 420 RPPM from our Suppliers
IPD Goal of 20 PPM to our OEM’s
Approx. 1500 suppliers under IPD Organization
Missing
the Goal
IPD Supplier Quality Performance
Supplied Parts to Lear in 2004 = 2,200,000,000
1 RPPM = 2,200 Non-conforming parts
Our Goal for 2005 is 420 RPPM
That means 924,000 Bad Parts
So far we are at
683 RPPM = 1,502,600 Parts
Expected Improvement
Typical Industry Standard is 50% improvement Y-O-Y
RPPM Goal
1400
1300
1200
1000
840
683
800
600
420
400
210
105
200
53
26
0
2004
2005
2006
2007
Customer
Expectation
<20 PPM
2008
2009
We need to be
at these levels
in 2005
Top 5 Initiatives
IPD Supplier Quality
Top 5 Initiatives
Supplier Involvement
Monthly Meetings - Worst Top 5 RPPM Suppliers
 Based on SRS Data
 Based on turn over with Lear
 Need Senior Level Mgmt. to meet with Lear and provide
Roadmap action Plan
 Track and act monthly on supplier commitment
Weekly Conference calls - Top 5 Plant Issues
 With supplier involvement
 Suppliers requested to attend weekly conference calls and
submit containment plans and irreversible corrective action
to close issues long term
 Monitor supplier commitment and action plans
Focused Supplier Activities
 Quality Alert Letter to Supplier’s Senior Mgmt. if a two month
poor quality trend is noticed
 Warning of business hold
 Supplier Quality performing probing Audit Plan with worst
suppliers
 Supplier Quality to play a pro-active roll in sourcing commitee
 Focusing on Data Accuracy working with Plant Personnel to
ensure correct data is entered into SRS
 Introduction of Containment at the supplier
 Intervention of unacceptable suppliers with SWAT teams
Containment
What is Containment??
Requires the supplier to implement extraordinary inspection of
failure modes
Why Containment??
To protect Lear and it’s customers during launches, significant
changes or when problems occur at customer, Lear or supplier.
Levels of Containment
 Launch Containment (equal to GM GP 12)
 CSL 1 (Additional inspection with internal personnel)
 CSL 2 (Additional inspection with 3rd party)
How to get released from Containment??
To meet exit criteria's which are defined by Lear plant or OEM
Web Based Resources
 Registration to Lear eCPAST / Covisint Web Portal which is
found at www.Lear.com / supplier information
 Approximately 800 European Suppliers not enrolled on eCPAST
 Password allows supplier to enter different applications such
as
 SRS
 SQTS
 APQP On line
 Supplier Bulletins
 ….
 Approximately 600 Quality and Environmental certifications of
European Suppliers are still outstanding
Supplier Rating System (SRS)
SRS works on a points system and is awarded in the following
categories, also refer to SRS manual available on-line.
Area
Max Points
1) PPM for 2005 less than 150 PPM
30 POINTS
10 categories (0-25ppm = 30 pts, 137-150 = 4pts, > 150ppm = 0pts)
2) Written Complaints / Severity
20 POINTS
20 categories (Eng.,, Repeaters, Plant Disrupt,, Cust. Incident)
3) Supplier Responsiveness
10 POINTS
15 categories
4) Delivery
15 POINTS
15 categories (damaged, early, missed - minor, Plant Disrupt,
Custom. Incident)
5) Competitiveness
20 POINTS
5 categories
________________
Total
95 POINTS
Quality
is 60%
of total
score.
SQTS – Supplier Quality Tracking System
• The SQTS is a Global Supplier Quality Tracking System for supplier
quality, warranty, delivery and customer satisfaction concerns.
• The SQTS is an electronic method of issuing QN’s and is accessed
& completed through Covisint/e-CPAST..
• Suppliers must respond to QN’s by entering data in the system
fields that follow a disciplined problem solving approach.
• Data collected in the SQTS database will be linked to the Lear SRS
(Supplier Rating System) to generate Supplier Scorecards and
Metric Reports.
SQTS – Benefits / Launch Dates
Benefits
 Improved communication between Lear plants and
suppliers
 Standardized method of issuing QN’s to suppliers
 Faster resolution of supplier driven quality issues
 Detailed supplier quality information available to the
Lear Divisions, Corporate Quality, and Purchasing
IPD SQTS Launch Dates
Metals – Live Launch
ISD – Live Launch
SSD & Trim – Live Launch
April 1, 2005
June 1, 2005
August 1, 2005
LAUNCHED
ON SCHEDULE
ON SCHEDULE
Problem Avoidance & Solving
 FMEA / Control Plan
 Robust & Capable Processes
 Poke Yokes
These are the
basic tools for
quality
improvement
 Systematic Root Cause Analysis
 Containment
 Irreversible Corrective Actions
 Sub-Supplier Involvement
 Six Sigma
 ……
We expect that you are
carrying this message back
to your team
What to take away with you




The sense of urgency
Containment as soon as an issue arises
Responsiveness to our requests
Strong and ongoing communication with your customer
plant, not only when there are issues
 Preparation for upcoming activities i.e.. SQTS
 All suppliers MUST be registered through
ECPAST/Covisint
 We are working together as a team, LEAR and
SUPPLIER!
Thank You
Michael Hartig
Lear Corporation
Vice President, Purchasing Europe, Africa &
Asian Pacific Operations
Supplier Development
Supplier Selection and Assessment
Identify Key Long Term Partners
SRS: RPPMs, Customer Complaints, Delivery, Competitiveness, Support
Financial Resources and Stability: D&B reports, Lear Financial Review
Management Systems & Procedures : MOS, QOS, TS16949, ISO14001
New Technology and Low Cost Country Opportunities
Design & Development Support
New Supplier / Location / Tool Moves
Product / Process Complexity
Logistics and EDI Capability
Launch Performance
8D Response / Warranty
Supplier Development
Yes
No
New Supplier
or Development Needs?
Supplier Survey and Audit
•
Determine Gap to Lear Requirements
•
Discuss Results with Supplier
•
Supplier Management Commitment
Approved Supplier
•
Supplier Development Plan and Timing
•
Monitor Performance
•
Training Evaluation and Assistance:
•
Develop to Preferred Status
• Lean Tools, Problem Solving, Six Sigma
• APQP, FMEA, Control Plans, 8Ds
•
Measure Improvement
•
Monitor Performance
APPROVED SUPPLIER
Supplier Development
Does Supplier
meet Lear Requirements?
Yes
Approved Supplier
•
Continuous Improvement
•
Six Sigma Projects
•
New Technology Reviews
•
Benchmark Position
No
Continue Development Plan
Compression / Exit Plan
• Cost, Quality, Delivery
PREFERRED SUPPLIER
Thank You