Introduction to Supplier Development

Supply Chain Academy

Introduction to Supplier Development

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WCM Supplier Academy – Speaker Introduction

Paul Glapa – Senior Principal Engineer Supplier Development Oshkosh Corporation

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What is Supplier Development?

Improve supplier capabilities and performance by building mutually beneficial relationships. Develop a supply base that aligns with Oshkosh Continuous Improvement philosophies.

Mission

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SD Strategy: Develop a World Class Supply Chain

Lean Deployment SOA -Training - Projects

Eliminate Supplier Constraints

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SDE• Assess suppliers’ overall

capability to meet GPSC performance criteria

• Lead Supplier Launch Readiness Activities

• Facilitate supplier performance through Lean Manufacturing Tools

• Facilitate business transfers• Recover continuity of

supply• Assist critical suppliers on

Program Management activities on key product lines

• Lead Time Reduction Efforts

SQE• Lead Production Part

Approval Process (PPAP)• Develop common systems

and procedures in managing supplier quality

• Work with suppliers to correct and manage quality spills

• Perform quality systems audit with new and existing supplier to ensure compliance

• Execute PPAP• Facilitate Six Sigma

projects with supply base

• Commodity Councils

• Support New Product Development (NPD) programs

• Supplier Launch Readiness

• Lean Deploymentsupport

The SDE and SQE Relationship

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Supplier Development / Supplier Quality Touch Points

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Impa

ct

Oshkosh Need

Tactical –short term

Strategic –long term

Tactical –immediate response required

Strategic –capability required

SD Strategy: Develop a World Class Supply Chain

Drop Everything

Recover Continuity of Supply

Supplier ReadinessSOP Readiness & Capacity Management

Understand & Align Supplier Capability

Lean Deployment SOA -Training - Projects

Eliminate Supplier Constraints

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Supplier Operations Assessment (SOA)

What is the SOA?• Web based questionnaire • Weighted scoring for delivery risk indication• Consolidated dashboard site available to all GPSC team members

Why is it used?

Evaluate a supplier’s overall capability in 7 critical dimensions

When to initiate:• Lean Deployment Opportunities• New Supplier Qualification• Poor Performing Supplier• Surveillance and Monitoring

• Supply Chain• Inventory Control• Operational Efficiency• Capacity Planning

• Company Structure & Strategy• Continuous Improvement• Environment, Social &

Governance

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Supplier Operations Assessment (SOA)

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Supplier Operations Assessment (SOA)

Supply Chain Inventory Control

Environmental, Social, & Governance

Operational Efficiency

Capacity Planning

Continuous Improvement

Structure and Strategy

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(SOA) Supplier Operations Assessment - Business Process

SOA Request Initiated

Supplier Completes SOA Self Assessment

SD Reviews the SOA Self Assessment

On-Site Validation of SOA Conducted by SD

SOA Report and Action Plan Published

SOA Results Reviewed with Supplier and the

OSK Supply Chain Team

Oshkosh Promotes Lean Deployment Projects

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(SOA) Supplier Operations Assessment ResultsActions After Assessment:

- Review results with supplier – benchmark against successful business practices

- Communicate assessment results internally- Close out action items with supplier

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(SOA) Supplier Operations Assessment Results(SCPA) Supplier Capacity Planning Assessment

SCPA evaluates the process and data in place for the Supplier to manage capacity :

• Capacity Planning Process Questions• Capacity Data Questions• Process Utilization Chart• Part Number Specific Capacity Data• Consolidated ‘SCPA Scoring Dashboard’• SCPA Defines a Clear Path to Pursue Improvements

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(SOA) Supplier Operational Assessment – Action Plan

Action Plan after Assessment:- Develop the SOA Action Plan with input from

the Supplier Leadership Team- Identify successful business practices that the

Supplier should pursue- Complete the Action Plan to :

• Mitigate High Risk Areas• Promote (CI) Continuous Improvement

Tools and Strategies• Identify Lean Deployment Project

Opportunities

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(SOA) Supplier Operations Assessment - Success Stories

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Invoke Supplier Performance Metrics

Implement Bar Coding Technology on Shop Floor

Install 5S and Visual Management Systems

Enhance Safety Performance Programs

Implement Electronic Connectivity to Manage Demand Profiles

Engage Work Teams to Periodically Share Business Updates

Develop Company Wide and Work Team Business Metrics

Embrace and Deploy Lean Strategies and Tools

Launch Lean Deployment Projects

Install and Publish Sustainability Metrics

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Lead Time Reduction Tool

MCT was reduced from 118 Days to 87 Days (26% reduction)

Lean Deployment Methodology

BEFORE AFTER

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Business Process Mapping and Training

Lean Deployment Methodology

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Lean Deployment - Success Stories

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Access - Hydraulic SupplierOrigin of Project : Recommended as part of ‘Supplier SOA’

No. of ‘Lean Tools’ : 7 - (OEE, Total Productive Maintenance (TPM), VSM, . . . )

Improvement Levels : 18% to 88%

Innovative Solutions : Developed ‘Increased Supplier Capacity’ to increase ‘JLG Sales’ by 18%

‘CI Project’ Comments : ‘CI Project Success’ largely fueled by ‘Suppliers Bright Idea Program’

CI Project Metrics

OTD

PPM

Product Lead Time

JLG Sales

Level ofImprovement

36%

88%

80%

18%

Lean Deployment Project Example

CI Project Team Bright Idea Program

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Commercial and F&E – Electrical SupplierOrigin of Project : ‘CI Project’ identified during participation in ‘WCM – Supplier Academy’

No. of ‘Lean Tools’ : 5 – (VSM, Waste Identification, Order Management, . . . )

Improvement Levels : 43% to 100%

Innovative Solutions : ‘Increased OTD’ by developing a ‘New Buffer Scheduling Process’

‘CI Project’ Comments : First time Supplier had conducted a ‘Joint CI Project’ with a Customer

CI Project Metrics

OTD

PPM

Product Lead Time

SCRIP Savings

Level ofImprovement

43%

100%

46%

100%

Lean Deployment Project Example

CI Project Team PPM Reduction Performance

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Oshkosh Enterprise - Electrical SupplierOrigin of Project : Three ‘CI Projects’ identified during ‘WCM – Supplier Academy’

No. of ‘Lean Tools’ : 9 – (VSM, Waste Identification, Capacity Management, . . . )

Improvement Levels : 52% to 83%

Innovative Solutions : ‘Reduced Product Lead Time’ achieved with ‘New Production Processes’

‘CI Project’ Comments : Each of three ‘Joint CI Projects’ were identified as ‘Best BusinessPractices’ by the Supplier and ‘All Supplier Customers’ benefitted

CI Project Metrics

OTD

PPM

Product Lead Time

Warranty

Level ofImprovement

77%

83%

53%

52%

Lean Deployment Project Example

CI Project Team PPM Reduction Performance

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2222Oshkosh Defense – Driveline Supplier

Origin of Project : ‘CI Project’ identified during participation in ‘WCM – Supplier Academy’

No. of ‘Lean Tools’ : 5 – (VSM, Waste Identification, Packaging Strategy, . . . )

Improvement Levels : 27% to 100%

Innovative Solutions : ‘SCRIP Savings’ achieved with ‘Custom Returnable Packaging Solution’

‘CI Project’ Comments : This was the fist ‘Joint CI Project’ with Oshkosh Corporation

CI Project Metrics

OTD

PPM

Product Lead Time

Warranty

SCRIP Savings

Level ofImprovement

27%

93%

45%

100%

100%

Lean Deployment Project ExampleCI Project Team Custom Returnable Packaging Solution

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Lean Deployment Example

Oshkosh Defense and F&E – Interior SupplierOrigin of Project : ‘CI Project Opportunity’ recommended as part of ‘Supplier SOA’

No. of ‘Lean Tools’ : 5 – (VSM, Waste Identification, Order Management, . . . )

Improvement Levels : 13% to 100%

Innovative Solutions : ‘Reduced Product Lead Time’ enhanced ‘Order Management Flexibility’

‘CI Project’ Comments : Supplier shared this was only the second ‘Joint CI Project’ they hadparticipated in and the first facilitated by the Customer

CI Project Metrics

OTD

PPM

Product Lead Time

Warranty

Level ofImprovement

13%

96%

81%

100%

Warranty Reduction Performance PPM Reduction Performance

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Oshkosh Defense – Electrical SupplierOrigin of Project : ‘CI Project Opportunity’ recommended as part of ‘Supplier SOA’ during

onboarding for ‘JLTV Program’ No. of ‘Lean Tools’ : 8 – (VSM, Waste Identification, Mistake Proofing, . . . )

Improvement Levels : 9% to 100%

Innovative Solutions : ‘Reduce PPM/Warranty’ achieved with ‘Advanced Problem Solving Tool’

‘CI Project’ Comments : ‘Joint CI Project’ was the first Project facilitated by the Customer

CI Project Metrics

OTD

PPM

Product Lead Time

Warranty

SCRIP Savings

Level ofImprovement

9%

98%

37%

100%

100%

Lean Deployment Project ExampleCI Project Team Warranty Reduction Performance

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Access – Electrical SupplierOrigin of Project : ‘CI Project Opportunity’ recommended and identified as part of the

‘Supplier SOA Action Plan’ No. of ‘Lean Tools’ : 9 – (VSM, Waste Identification, SCRIP Workshop, . . . )

Improvement Levels : 56% to 99%

Innovative Solutions : ‘Increased SCRIP Savings’ to $1,947,139 with a ‘SCRIP Workshop’

‘CI Project’ Comments : ‘Joint CI Project’ was the first Project conducted with Oshkosh

CI Project Metrics

OTD

PPM

Product Lead Time

Warranty

SCRIP Savings

Level ofImprovement

56%

93%

74%

99%

73%

Lean Deployment Project ExampleCI Project Team SCRIP Savings Performance

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Oshkosh Defense – Casting SupplierOrigin of Project : ‘CI Project’ was launched from a ‘Drop Everything Site Visit’

No. of ‘Lean Tools’ : 4 – (VSM, Waste Identification, Order Management, . . . )

Improvement Levels : 83% to 97%

Innovative Solutions : ‘Increased OTD’ was achieved with design of a ‘New Scheduling Strategy’

‘CI Project’ Comments : This was the first ‘Joint CI Project’ with Oshkosh Corporation

CI Project Metrics

OTD

PPM

Level ofImprovement

83%

97%

Lean Deployment Project Example

OTD Increase Performance PPM Reduction Performance

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Supply Chain Academy

Impa

ct

Oshkosh Need

Tactical –short term

Strategic –long term

Tactical –immediate response required

Strategic –capability required

SD Strategy: Develop a World Class Supply Chain

Drop Everything

Recover Continuity of Supply

Supplier ReadinessSOP Readiness & Capacity Management

Understand & Align Supplier Capability

Lean Deployment SOA – Training - Projects

Eliminate Supplier Constraints

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Supply Chain Academy

Identify Risk Classify RiskEvaluate Risk

Develop Mitigation PlansInitiate Project

Supplier Participation Request Supplier Readiness

Questionnaire (SRQ)

High

Med

Low

Minimal

Strategy used for:• New product launch• Significant seasonal increase• Business Transfer• Capacity Planning Analysis • Understand & Align Supplier

Capability

Monitor, Report & Follow Up

SRQ Status

Program RPN Chart

Apply Lean & SDE Tools to Get to “GREEN”Risk areas to be addressed by

supplier with Oshkosh SDE support.

SOA

Supplier Readiness Process

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Supplier Readiness Example: S-Series FY18

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Supplier Readiness Example: JLTV A1 FY17

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Identify Risk - Supplier Readiness Questionnaire

8 Major Focus Areas Order Communication Supply Chain Materials Consideration Staffing & Capacity Manufacturing Process Quality System Shipping Continuous Improvement & Sustainability

Critical Factors Assessed New Supplier No ISO / TS Certification Level 1 PPAP Experience Only Building Improvements Required Long lead times

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Supply Chain Capacity Management ProcessSelf Assessment Assign Maturity Level

(Commodity Specific)Evaluate MaturitySCPA Invitation

Supplier Participation Request SCPA

Low complexity Medium to High complexity

Dedicated Capacity Analysis Tools

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Impa

ct

Oshkosh Need

Tactical –short term

Strategic –long term

Tactical –immediate response required

Strategic –capability required

SD Strategy: Develop a World Class Supply Chain

Drop Everything

Recover Continuity of Supply

Supplier ReadinessSOP Readiness & Capacity Management

Understand & Align Supplier Capability

Lean Deployment SOA – Training – Projects Eliminate Supplier Constraints

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Drop Everything – Recovery Methodology

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How do I Request SDE Resources?

https://bit.ly/2W40N5v

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How do I Request and Secure ‘SD Resources’ ?

Contact your ‘Oshkosh Corporation – Supply Chain Professional

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