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Supply Chain Academy
Introduction to Supplier Development
1
Supply Chain Academy 2
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
7
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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
18
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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
20
Supply Chain Academy
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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
21
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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
22
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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
23
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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
24
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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
25
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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
26
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
27
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
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
33
Supply Chain Academy 34
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
Supply Chain Academy
Glassdoor
YouTube
37
Thank you . . .
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