Seating Systems Division Supplier Quality Meeting April 7 ... · Supplier Quality Meeting April 7, 2006. 2 ... 9Poor/incomplete GD&T ... The Lear SDD office has resources to assist

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Seating Systems DivisionSupplier Quality Meeting

April 7, 2006

2

Agenda

Opening Remarks & VTE Restructuring M. Lewis 9:00

Supplier Quality R. Mowad 9:152005 Performance Metrics2005 Systemic Opportunities2006 Supplier Goals

Supplier Communication V. Piner 9:30Scorecards / SRS / Diversity

SQTS S. French 9:45

Top Focus Process / DDW K. Kustron 10:00

Launch Readiness K. Alexander 10:15

Tool Moves R. Boyer 10:30

PPAP Changes B. Cooper 10:45

IMDS R. Spearot 11:00

Wrap Up / Closing Remarks M. Lewis 11:15

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Agenda

Opening Remarks & VTE Restructuring M. Lewis 1:00

Supplier Quality R. Mowad 1:152005 Performance Metrics2005 Systemic Opportunities2006 Supplier Goals

Supplier Communication V. Piner 1:30Scorecards / SRS / Diversity

SQTS S. French 1:45

Top Focus Process / DDW K. Kustron 2:00

Launch Readiness K. Alexander 2:15

Tool Moves R. Boyer 2:30

PPAP Changes B. Cooper 2:45

IMDS R. Spearot 3:00

Wrap Up / Closing Remarks M. Lewis 3:15

Weld Supplier Requirements M. Lewis 3:30

4

Margaret Lewis

Welcome & Introduction

5

Lear Restructuring

Former Lear Organization Purchasing

Supplier

Quality

Customer

Group

Program

Mgmt

Product

Division

Engineering Operations Quality

6

VTE Restructuring

EngineeringEngineering

LPMPLPMP

PurchasingPurchasing BOMBOM

Supplier

Quality

Supplier

Quality

APQPAPQP

OperationsOperations

Vehicle

Team

Vehicle

Team

Restructured Lear Organization

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Vehicle Team Executives - Organization

Steven L. HayworthPresident

Kevin HobanHB / DR

Ryan BurnsGMX 222

Billy WilliamsE70

Dan GollesGMT 800 / 610 / H2

Elie GhazalAOEM

Art KennedyU251

Chris ClarkGMT900

Jim ClaypoolEN114 / S197J56 / Ford Car

Bill SchuelerGMX 211/231

8

VTE / VTD / Quality

Plant VTE VTD Quality

Kevin Hoban Gene Dudash Al Addesso

[email protected] [email protected] [email protected]

(248) 447-1269 (248) 447-5956 (248) 447-1902

Kevin Hoban Butch Staycoff Alma Beebe


(248) 447-1269 (248) 447-4414 (248) 447-1812

Billy Williams George Bowers

[email protected] [email protected]

(864) 433-6605 ext 605 (864) 661-1344

Elie Ghazal Drew Sturgeon Stacey Dodge


(248) 447-1202 (734) 207-6396 (734) 207-6413

Chris Clark Willie Richards Mike Sabiston - [email protected] (248) 447-5826

[email protected] [email protected] Paul Bhinder - [email protected] (905) 682-2052 ext 334

(248) 447-1208 (248) 447-5854

Bill Schueler Jason Scott Jamie Wilson


(248) 447-5584 (248) 447-4415 (905) 683-2052 ext 380

Ryan Burns Mike Watters Jeff Hill


(248) 447-5856 (248) 447-1209 (248) 447-1374

Dan Golles Matt Hicks Randy Breeding


(248) 447-4477 (248) 447-4479 (248) 447-1604

Art Kennedy Kirk Koenig Scott Peel - [email protected] (248) 447-5842

[email protected] [email protected] Susan Buchanan - [email protected] (248) 447-5684

(248) 447-1954 (248) 447-4151

Jim Claypool Mark Folkert Arnold Park - [email protected] (248) 447-1604

[email protected] [email protected] Maria Berezcki - [email protected] (519) 633-2100 ext 244

(248) 447-1472 (248) 447-5786

Jim Claypool Bob Dowell Arnold Park - [email protected] (248) 447-1604

[email protected] [email protected] Maria Berezcki - [email protected] (519) 633-2100 ext 244

(248) 447-1472 (248) 447-5785

Scott French Dale Perrault

[email protected] [email protected]

(248) 447-1238 (248) 447-1358

Newark

Bridgeton / Romulus

Duncan

Montgomery

Ajax / Arlington / FentonJanesville / Rochester Hills

Whitby

Lordstown / Mason /Windsor

Wentzville

Elsie / Kitchener / MorristownRoscommon / Walker

Hazelwood / Liberty / Louisville

Atlanta, Hammond

St. Thomas / Brownstown

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Supplier Quality

Rich Mowad

10

Expectations Of Supply Base (2005)

External PPM50% year over year improvement

Repeat Written Concern70% year over year improvement

Flawless Launch Performance0 Plant Disruptions0 Customer Incidents< 300 PPM over first 60 days

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847

453

235 205

0100200300400500600700800900

2003 2004 2005 2006 YTD

Americas - External Production SuppliersRPPM 2003 - 2006 Feb YTD

PPM Trend

72% PPM Reduction

12

Repeat Written Concerns 2004 vs. 2005

4360

7500

1000

2000

3000

4000

5000

2004 2005

83% Reduction

83% Reduction

Written Concerns

13

Common Cause of Failure 2005

Lack of Effective APQP ManagementDid not adequately predict failure modeDid not validate process effectively Lack of visual quality standards with Lear seating plantsPoor error proofing

Poor Process ControlLack of standardized process change/adjustment proceduresLack of discipline to follow established procedures

Lack of Resources

Sub-Tier Supply Chain Management

Logistic Concerns

14

Common Cause of Failure 2005 (cont’d)

Poor Tolerance Development and Engineering Practice

Poor/incomplete GD&TMissed significant characteristic call outFailure to understand part/component/system interface

Holiday Startup Procedures

Poor Containment PracticeContainment breakPoor documentationLack of follow-up on voice of the process

15

Supplier Development Focus (2006)

Flawless Launch Performance from the Supply Base

Eliminate Supplier Related Pass Through Quality Issues

Eliminate Supplier Related Plant Disruptions

Validate and Improve Controls on Welding Processes

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Expectations Of Supply Base (2006)

External PPM50% year over year improvement

Repeat Written Concern70% year over year improvement

Pass Through Quality Concerns70% year over year reduction

Plant Disruptions70% year over year reduction

Flawless Launch Performance

17

Keys to Success (2006)

Increased Stress on Manufacturing and Quality Discipline

Sub-Supplier Management and Control

Adherence to the Non NegotiablesBullet Proof PFMEA and Control PlansProcess Standardization and Control (Solid Containment)Boundary Samples and Inspection CriteriaRobust Data Collection, Analysis, and UseDisciplined Problem Solving and Response to Issues

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Supplier Development - Contacts

OFFICE CELL e-MailALEXANDER Ken 248.447.5196 734.658.1364 [email protected] Ranjit 248.447.5221 248.703.6783 [email protected] Doug 248.447.5850 313.995.6183 [email protected]

GROGAN Mike 915.787.5242 915.892.5910 Cell 248.550.9204 Pager [email protected]

HETHERINGTON Scott 248.447.5203 313.671.1734 [email protected] Tim 248.447.5575 248.701.0507 [email protected] Kathy 248.447.5233 248.231.6633 [email protected] Dave 248.447.5238 248.470.8618 [email protected] Ron 248.447.5237 810.824.7140 [email protected] Rich 248.447.5282 248.877.0505 [email protected] Frank 248.447.5631 248.388.0871 [email protected] Les 248.447.5256 248.259.0627 [email protected] Rodney 248.447.5179 313.282.6168 [email protected]

NAME

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Supplier Communication

Vickie Piner

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Supplier Requirements

LEAR REPORTING AND CERTIFICATIONS

TS16949

SRS

eCPAST

Tier II Diversity Spend Tracking

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Purchasing Requirements – TS16949

All Lear Suppliers are Required to be Certified to TS16949:2002

Suppliers That are Currently Certified to QS9000Expires December 14, 2006Must have a plan within time-line to Lear Purchasing to transition to TS16949:2002 by May 1, 2006

ISO 14001:2004 (E) Environmental Certification is required by December 31, 2006

Lear PETC Will Issue Customer Satisfaction QNs to any Supplier Location that has not Submitted Quality Certificates

Email address for certificates: [email protected] by fax: 248-493-5999

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Scorecard Key Performance Metrics

SUPPLIER PERFORMANCE MEASURABLES

RPPM 30 pointsWritten Complaints 20 pointsDelivery 15 pointsService/Responsiveness 10 pointsCompetitiveness 25 points

TOTAL 100 points

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2006 RPPM SRS Rating Scale

076 & Higher 366 – 75 655 – 65 946 – 55

1236 – 45 1526 – 35 1821 – 25 2116 – 20 2411 – 15

276 – 10 300 – 5

2006 RPPM ScoreActual RPPM

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SRS Supplier Scorecard

“Corporate” ScorecardSummary scorecard for the entire corporationContains summary information for each ship point and overall score for the company

“Common” ScorecardSRS generates one “common” scorecard for each ship pointShows individual performance for each Lear plant the location supplies and overall score for the ship point

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Supplier Registration Lear On-Line

eCPAST https://access2.lear.com

On-Line QuotingSubmitting RFQ & ECN quotes to Lear

Purchase Order RetrievalProduction PO’s

Supplier Diversity Reporting – SDR Quarterly Reporting

Supplier Rating System – SRS SRS Monthly Scorecards and Metric Charts

Supplier Quality Tracking System – SQTS Respond to Quality Notices issued by Lear Plants for Quality, Delivery and Customer Satisfaction Issues

ProFile – Supplier APQPSupplier Data for Program Launch Requirements

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SRS Help / Support Resources

All Questions Regarding SRS Scoring Must be Addressed to the Lear Plant that Provided the Rating

The SRS Supplier Manual is Available on eCpast at https://access2.lear.com

All Remaining Questions Should be Addressed via Email to:[email protected]

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Tier II Diversity Spend Tracking

Lear Corporation Requires Tier 2 Reporting from all Suppliers

2006 Diversity Reporting Schedule:1st Qtr. Due April 10th 2nd Qtr. Due July 10th

3rd Qtr. Due October 9th 4th Qtr. Due January 8tt 2007

Lear’s Requirements – Lear Requires all North American Tier I Suppliers to Purchase 5% of Total U.S. Purchases from MBE’s

Your minority sourcing percentage results in a Green/Yellow/Red ratingMinority sourcing performance is considered in making future sourcing decisionsThe Lear SDD office has resources to assist in the reporting system

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$250$317

$350 $325$375$402

$475

$442

$550

$745

$1,000

$773

0

100

200

300

400

500

600

700

800

900

1000

2000 2001 2002 2003 2004

Diversity Spend (MILS)

TargetActual

2005 Supplier Diversity Tracking

2007 Target - $1 Billion

2005

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Web Applications

You are now viewing the “Public Site” on http://lear.covisint.comTo register your company, click on the Web Applications tab

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SQTS

Sherri French

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What is the SQTS?

The SQTS is Lear Corporation’s Global Supplier Quality Tracking System for Supplier Quality, Warranty, Delivery and Customer Satisfaction Concerns

The SQTS Provides a Standardized Method of Issuing Quality Notices (QN’s) to Suppliers

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 Purchasing SRS (Supplier Rating System) to Generate Supplier Scorecards and Metric Reports

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What are the Benefits of the SQTS?

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, Purchasing and Suppliers

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Access

The SQTS is Accessed Through eCPAST. (https://access2.lear.com) You can Also Access the SQTS Directly at https://learconnect.lear.com/sqts

Suppliers Must be Enrolled in the SQTS by their Corporate Supplier Administrators

System RequirementsInternet Explorer Version 5.5 or higherAdobe Acrobat Reader (latest free version)Internet AccessEmail Account

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QN Process FlowLe

ar P

lant

Sup

plie

r

Problem identifiedCreate QN via

intranetapplication

System generatede-mail notification

of new QN tosupplier

Recieve e-mailnotification of new

QN

Submit initialresponse via

internet/intranetapplication

SQTS

System generatede-mail notificationof initial response

to Lear plant

Review initialreponse

Approveinitial

response?

System generatede-mail notificationof initial response

rejection tosupplier

No

Initial reponseclosed indatabase

Yes

Completeremaining QN

data

Completeremaining QN

data and requestsQN closure

System generatede-mail notificationof closure request

to Lear plant

Review correctiveactions / QN data

ApproveQN closure?

System generatede-mail notification

of closurerejection t o

supplierQN closed

No

Yes

1. Lear Plant creates a QN.2. Supplier plant replies with Initial Response (Containment) within 24 hours.3. Lear Plant accepts or rejects the initial response.4. Supplier plant replies with root cause, permanent corrective action and

preventive corrective action.5. Lear Plant accepts or rejects the final response and closes QN.

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SQTS Link in e-CPAST (https://access2.lear.com)

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Help / Support

Contact your Local Supplier Administrator

Contact Lear Supplier Development Team

Contact the Lear Plant

Email [email protected] for all Questions Regarding the SQTS

Email [email protected] for all Questions Regarding your supplier scorecard

Supplier SQTS Manual and SRS Manual Available on eCPAST

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Top 5 Questions Asked by Suppliers

How do I get access to the SQTS?

If you have the wrong Supplier Administrator or any questions regarding your Supplier Administrator please email: [email protected] your company needs a Supplier Administrator, please visit Lear’s website at Covisint and click on the Web Applications tab. You can complete the section ‘Request Web Application Access’ to request a Supplier Administrator.

After scrolling down to bottom

of the page

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Top 5 Questions Asked by Supplier

Why Can’t I reply to a QN?

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Why hasn’t the Lear plant received my Initial Response? I’ve clicked on the Initial Response button but they haven’t received it.

40


Why is my Supplier Scorecard Incorrect?

Wrong Supplier Ship Point in SQTSWrong Number of Parts Received in SQTSSupplier Ship Point Not in SQTS

41


My email address is incorrect in SQTS. How can I change it?

Only your Supplier Administrator can change your email address. Please contact your Supplier Administrator directly.

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Top 5 Process / DDW

Kathy Kustron

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Top 5 Process

Overview Top Five - New Process for 2006System to Provide a High Level of Focus on the Poorest Performing Portion of the Supply Base

Structure similar to the "Top Focus" process established by GMFormal Monthly Review of Those Suppliers who have Performed Poorly During the Past Three Months

Based on data pulled from SQTS / SRS (Supplier Quality Tracking System / Supplier Rating System)

BenefitsIdentifies the Improvement Processes by the SuppliersFocuses Lear Resources on Only the Poorest Performing SuppliersMonitors and Tracks Supplier’s Improvements

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INPUT SUPPLIERDATA INTO LEAR

SQTS (as required)

LEAR ASSEMBLYPLANT

SUPPLIER

INPUT SUPPLIERDATA INTO LEAR

SQTS(Previous Month)

Monthly Day 5 Monthly Day 12

REVIEW DATA INSQTS

DATACORRECT?

CONTACTREPORTINGPLANT TOCORRECT

DATACORRECT?

UPDATE SQTS

YES

NO

CLEAN DATAACHIEVED

Ongoing

NO

YES

Data Input Lear Supplier Quality Tracking System, SQTS

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Top 5 Identification to Supplier Quality Review Presentation

LEAR SUPPLIERQUALITY

SUPPLIER

CREATEEXCEPTION

REPORT IN SRS

ANALYZE PAST 3MONTHS OF

DATA

IDENTIFICATIONSUPPLIERS FORTOP WORST 10

OTHERFOCUS?

TOP 5 WORSTSUPPLIERSIDENTIFIED

ELIMINATE FORREVIEW

NO

TOP 5 PACKAGESENT TO EACH

SUPPLIERSEPARATELY

Monthly Exception Report.xls Top 5.xls

Quality Review Notification Letter.doc

Quality Review Presentation.pptDeep Deep and Wide Read Across.xls

FMEA Comparrision.xls

Top 5 Supplier Meeting Notice.doc

Supplier Audit - Rev 1 1.xls

Monthly Top 5 Supplier Quality Internal Meeting Notice.doc

CONDUCTINTERNAL AUDIT

RETURN AUDITRESULTS

COMPLETESUPPLIERQUALITY

PRESENTATION

RETURNSUPPLIERQUALITY

PRESENTATION

REVIEWSUPPLIER AUDIT

RESULTS

DISTRIBUTESUPPLIER

PRESENTATION

REVIEWSUPPLIER

PRESENTATION

SUPPLIER,LEAR SUPPLIER

QUALITYMANAGEMENT, AND

VTE EXTENDED TEAM

QUALITYREVIEW AND

PRESENTATION

SQTS UP TODATE FOR

PRIOR MONTH

LEAR PLANTS ANDSUPPLIERS

SEND OUTINTERNALMEETINGNOTICE

+ I DAY +2 DAYS +2 DAYS +7 DAYS +7 DAYSNot To Scale

+3 DAYS

YES

Top 5 Sign In Sheet.xls

Top 5 Calendar 2006.xls

Deep Drill Worksheet.xls

Each category assessed by a weighted ranking system

• 10% for PPM• 10% for combined sum for Level 0,

Level 1, and Level 2 issues • 50% for sum of Level 3 disruptions• 30% for sum of Level 4 customer

issues

46

Follow Up

LEAR SUPPLIERQUALITY

SUPPLIER

SUPPLIER,LEAR SUPPLIER

QUALITYMANAGEMENT, AND

VTE EXTENDED TEAM

QUALITYREVIEW AND

PRESENTATION

ASSESS TOP 5REPORT

IMPLEMENTIMPROVEMENTS

REVIEWSUPPLIER'SPROGRESS

ASSIGN /IDENTIFY SQE

SUPPLIER ANDSUPPLIER QUALITY

ENGINEER

ASSESSSUPPLIER'S

PROGRESS OFIMPROVEMENTS

LEAR SUPPLIERQUALITY AND

SUPPLIER QUALITYENGINEER

CHANGESCOMPLETE?

NO

YES

UPDATETRACKING

MATRIX

Top 5 Monthly Tracking.xls

FOLLOW UPCONFERENCE

CALL

SUPPLIER ANDLEAR SUPPLIER

QUALITYPOSITIVETREND?

IDENTIFYIMPROVEMENT

PLAN

MONITORPROGRESS

YES

NO

Monthly Exception Report.xls

Top 5 Calendar 2006.xls

+ 1 MONTH (ON GOING)Not To Scale

+ 1 MONTH (ON GOING)

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Top 5 Process: Supplier Requirements

Self Audit

Quality Review MeetingPresentation

• Standardized Power Point templateAttended by:

• Supplier Management• Lear Quality Management• Lear Vehicle Team Executives and Quality Management

Follow Up Status Meeting(s)Supplier and Lear Supplier Quality Engineer

Follow Up Conference Call(s) Supplier and Lear Supplier Quality Management

48

Self Audit

Supplier Self AssessmentOne Week to complete

• Continuous Improvement

Organization / Process Review

ManagementQualityProductionMaterials

Automatic Scoring Based on Supplier InputsAction Plan

Coded “Yellow” or “Red”

Supplier XYZ Start Date: 4/2/06 Karol GerilynLocation Assembly, MI Close Date: 555.234.7890Representative Heather Andree Rev. Date: [email protected]

G Green - Requirements MetY Yellow - Requirements are not fully met. 3 month window for correction.R Red - Little to No evidence of meeting requirements. 6 month window for corrections.

TOTAL TOTAL

0 0 1 2 3 4 5 6

1 2 3 4 5 6

1 2 3 4 5 6

1 2 3 4 5 6

1 2 3 4 5 6

DATE OPENEDTARGET

CLOSE DATEACTUAL

CLOSE DATE LAST UPDATE

Auditor:Auditor Phone:Auditor E-Mail:

STATUS HISTORY

STATUS

MATERIALS

COUNTER MEASURES/comments

PRODUCTION

QUALITY

MANAGEMENTOldest Most Recent

ITEM # ACTION ITEM ACTION LEADER

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Quality Review Presentation

AgendaSupplier Data Review

Supplier Pareto of IssuesSRS Charts QN / Controlled Shipping Status

BackgroundDrill Deep Drill Wide FMEA and Control PlanFollow-up Plans

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Drill Deep - Investigate

DEFECT

WHY DID THE PLANNINGPROCESS NOT PREDICT

THE DEFECT?

WHY DID THEMANUFACTURING

PROCESS NOT PREVENTTHE DEFECT?

WHY DID THE QUALITYPROCESS NOT PROTECT

LEAR FROM THE DEFECT?

P1

P2

P3

P4

Pn

WHY?

WHY?

WHY?

WHY?

PREDICT THE ROOT CAUSE

M1

M2

M3

M4

Mn

WHY?

WHY?

WHY?

WHY?

PREVENT THE ROOT CAUSE

Q1

Q2

Q3

Q4

Qn

WHY?

WHY?

WHY?

WHY?

PROTECT THE ROOT CAUSE

IMPLEMENT CORRECTIVE ACTIONS

51

Drill Deep - Investigate

Purpose of the Drill Deep Analysis is to Understand WHYthe System Failed to

Prevent the occurrenceProtect Lear and determine what allowed the non-conforming part to be shippedPredict the problem on the part

The Drill Deep is Not Used to Understand WHAT Failed

52

Drill Wide - Implement

The Drill Wide (Read Across) Matrix is Used to Assist in the Carrying Across the Lessons Learned to:

Similar productsManufacturing processesFacilities throughout your company

Prevent Similar Reoccurrences

Prod

uct /

Pro

cess

C

lass

ifica

tion

Part Name & Number

Lear Assy. Plant N/C CS

Status QN Number / Issue

ContainmentCause of Failure Mode CAPrevent Corrective ActionProtect Corrective ActionPredict Corrective ActionKey Findings Corrective Action

Part Name & Number




Part Name & Number




Corporate Champion Symbols

Cor

rect

ive

Act

ion,

CA

Customer Concern Failure Mode 5 Why Analysis 2

Corporate Champion Symbols

Cor

rect

ive

Act

ion,

CA

Customer Concern Failure Mode 5 Why Analysis 3

Corporate Champion1 Symbols

#1 LocationA.P.Q.P. #2 Location

Customer Concern Failure Mode 5 Why Analysis

Cor

rect

ive

Act

ion,

CA

SYMBOL & STATUS KEY:

O

XR

N/A

Not Completed

Repeat IssuesNot Applicable

Completed & 3rd Party / Lear verifiedCompleted & Supplier verified only

Original Product line and location

Product line and/or location with similar process

53

Top 5

SelectionIdentification of Worst Performing Suppliers Based on Data from Lear’s SQTS / SRS

Three month weighted average

Supplier ResponsibilitiesSelf AuditSupplier Quality Review Meeting and Presentation

Data reviewDrill Deep and WideImprovement and Implementation Plans

Follow-up ReviewsSupplier Quality EngineerStatus Conference Call

54

Launch Readiness

Ken Alexander

55

2006 Launches

Hyundai CM – Santa FeSOP April 10, 2006

BMW E70 – X5SOP October 6, 2006

GMT 900 – Pick Up TrucksSOP October 2, 2006SOP November 13, 2006

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Deliver Flawless Processes at Launch

Process is Stable, Robust and in Control

No Major Quality Issues at Lear Plants

No Third Party Containment Required

No Supplier Related Customer Yard Holds or Other Significant Events

57

Non – Negotiable Items

Bullet proof PFMEAs and Control Plans

Process Standardization and Control

Boundary Samples and Inspection Criteria

Robust Data Collection, Analysis and Use

Disciplined Problem Solving and Response to Issues

58

Launch Readiness

Executive Engagement During all Phases of Product Launch Cycle

Sub-Supplier Management

Launch Containment Expectations

ProFile Usage to Assist in Advance Quality Planning

59

Executive Involvement

Accountable to Take Measures to Promote Flawless Launch

Drive Correct Resources and Focus Placed on Launch

Chair Supplier Launch Readiness Reviews

Raise “High Risk” issues to Lear VTE to Quickly Drive Resolution

60

Sub-Supplier Management

Review of Supply Base Establish High Impact vs. Low ImpactDrive a priority based management system

Adherence to APQP System Throughout all Sub Tier Levels

Monthly Review Meetings with Supply Base Validate timingDrive program information

Materials Reporting Issues (IMDS)

61

Off-Shore Management Expectations

Verify Capabilities and Quality Systems

Increase Inventory Based on Transit Times

Contingency PlanningCatastrophic DamageLack of Raw MaterialsTransportation Interruptions (Storms, etc.)

Extraordinary Inspection / Containment

62

Launch Containment Expectations

Protection for Lear Facilities

Data Driven Validation of Supplier Processes

Definition, Achievement and Validation of Exit Criteria

Supplier Executive Management Involvement

63

Key Attributes of Launch Containment

Proper LayoutLightingMaterial Flow

Reliable LaborLow TurnoverProper TrainingCorrect Skill Set

Voice of the ProcessCorrect DataCorrect AudienceCorrect Reaction

64

ProFile

Usage is Mandatory for all Suppliers

Supporting Documents Must be Uploaded to Close a Line Item

Timely Updating of Activities

Action Items Must be Inserted into Comments Section for REDItems

65

Tool Moves

Ron Boyer

66

Tool Moves

Supplier / Sub-Supplier Location ChangeSupplier/Sub-Supplier moving to new locationResourcing of Sub-Suppliers

CharacteristicsSupplier must complete “Supplier Notification of Production Change/Move” form located on the Lear Website www.lear.comSupplier submits to Lear Buyer and Lear Plant’s Quality RepresentativePurchasing reviews with Supplier Risk Management GroupSupplier Risk Management Group coordinates kick-off meeting with plants affected and program teams affectedPlatform Team (Plants, Program Management, Engineering, Purchasing) completes processSupplier Risk Management Group monitors process and supports as required

67

Tool Moves

68

Tool Moves

69

Tool Moves

70

Tool Moves

71

Tool Moves

72

Tool Moves

73

Tool Moves

74

PPAP Changes

Bill Cooper

75

Supplier QMS Certifications - Cooper

TS 16949 Requires Lear to Assure that all Immediate Suppliers are Either QS9000, ISO 9001:2000 or ISO/TS 16949:2002 Certified

On Dec 14, 2006, QS9000 will no longer be in effect By Dec 14, 2006 all Tier's of suppliers MUST either be ISO 9001:2000 or ISO/TS 16949:2002Should you need a 3rd party registrar, Intertek Systems Certification will offer lowered man day rates to any Lear suppliers to lower their cost to go to TS 16949 - Contact Merry Keating at [email protected] (Phone 616-299-2650)Before May 1, 2006 please send a copy of each of your manufacturing facility’s most current QMS certification to: [email protected] or Fax 248-493-5999

76

PPAP 4th Edition Effective Date

The PPAP Fourth Edition Replaces the Third Edition Effective June 1, 2006 - Unless Otherwise Specified by Your Customer

77

Changes in the 4th Edition

The Fourth Edition of PPAP Includes the Following ChangesIdentified issues in the application of PPAPRemoval of QS-9000 referencesIMDSRemoval of OEM customer specificsRearrangement of clauses to improve flow

78

PPAP Changes Overview

Alignment of PPAP to the ISO/TS 16949:2002 Process Approach Including:

Aligning the order of the PPAP requirements with the automotive product development and manufacturing processInclusion of an example process flow for PPAPRelocation of Customer Specific Instructions to appropriate websites, (e.g. OEM and IAOB, www.iaob.org) to provide current requirementsUpdate of Truck OEM requirements

79


Revised PSW (Part Submission Warrant) to:Provide more logical flow for the part/design description fieldsMake the supplier address fields applicable to international locationsInclude IMDS materials reporting to indicate reporting status

80


Updated Specific PPAP Requirements - Including:Materials reporting requirements in the design recordProcess capability index usage (Cpk and Ppk)Definition + approval of catalog parts + definition of black box partsModified customer notification + submission requirements to align with OEM requirements

81

Summary of OEM PPAP Customer Specifics

SPECIAL NOTE: All Speakers at the Recent AIAG PPAP 4th

Edition Rollout Conference Repeatedly Said:

“If any supplier makes a change to any of their products’ design or process, then those applicable changes MUST be resubmitted for PPAP to each applicable customer and through all supplier levels until the PPAP is fully approved by the applicable OEM(s).”

Hence, if you Make a Change, You Must get an Approved PPAP From Lear to Do So

82

Read the New AIAG PPAP 4th Edition Completely Before June 1, 2006Purchase the New Manuals Online from www.AIAG.orgRead Your Customers’ Customer Specific Requirements for PPAP and ISO / TS16949 at www.IAOB.org and/or www.covisint.com

** MOST IMPORTANTLY **When in doubt about what to do,

you should ALWAYS call your immediate Quality and/or VTE contact

Summary of What You Should Do

83

IMDS

Rebecca Spearot

84

Lear Corporation

Product Material Content and Recyclability Reporting International Materials Data System

(PMCRR-IMDS)

Supplier Requirements 2006

85

Legal / Customer Requirements

86

Legal/Customer Requirements

End of Life Vehicle (ELV) Directive adopted in EU in 2000Japan Automobile Recycling Law implemented in 2003Korean and Chinese Laws - futureMany state specific laws in the US, either in place or being debated, prohibiting use of many substances/ materialsRestriction on Hazardous Substances (RoHS) implemented in EU in 2004

It’s all About Material Content!

ALL LEAR CUSTOMERS HAVE ENGINEERING SPECIFICATIONS THAT FOLLOW THESE LEGAL REQUIREMENTS

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To Sell Vehicles in EU and Japan, OEMs MUSTSubmit:A Disassembly Manual starting 7/2002 in Europe

Certify Compliance to Substances of Concern (SoC) beginning 7/2003 – EU and beginning 2004 - Japan

Certify to Recyclability Target & Parts Marking beginning 7/2006 – EU, and

Comply with the EU “Type Approval Directive” (RRR), Which Mandates that Recyclability Must be Certified for Each New Product From Q4 2008 and Existing Products Must be Certified Before Q2 2010

85% reuse/recycle/recovery beginning 7/200695% reuse/recycle/recovery beginning 7/2015

No Type Approval Means no Sales Within EU

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Because of These Requirements Lear MUST:Report and Certify (Globally) Complete Materials Content Data onEvery Assembly Shipped to Customers’ per Respective Customer Specification.

and

Eliminate Substances of Concern (SoC) usage from productsand

Meet Customers Requirements for Product Recyclability (ISO 22628) CY2006 and Beyond

WHICH MEANS OUR SUPPLIERS HAVE TO DO THIS TO!


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Customer Reporting Requirements

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Part Submission Warrant – Effective March 1, 2006

Materials ReportingHas customer-required Substances of Concern information been reported? Yes No n/a

Submitted by IMDS or other customer format: __________________________________________

Are polymeric parts identified with appropriate ISO marking codes? Yes No n/a

ExplanationSubstances of Concern: Enter “Yes,” “No,” or “n/a.”IMDS/Other Customer Format: Circle either “IMDS” or “Other Customer Format” as appropriate. If submitted via IMDS include: Module ID#, Version #, and Creation Date. If submitted via other customer format, enter the date customer confirmation was received.Polymeric Parts Identification: Enter “Yes,” “No,” or “n/a.”

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Comply with Parts Marking RequirementPlastic parts (ISO1043/11469) weighing more than 100 gramsElastomeric parts (ISO1629) weighing more than 200 grams

Part Weight (Mass)Shall be in Kilograms to four decimal places (0.0000) unless otherwise specified by the customer

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Hyundai/Kia

VW & Audi

Toyota

Nissan

GM (Fiat, Opel, SAAB, & Vauxhall)

Ford (Aston Martin, Jaguar, Land Rover, Mazda, & Volvo)

DaimlerChrysler – NADaimlerChrysler – Eu

Internet Based Reporting; International Materials Data System (IMDS)

BMW

REPORTING TOOL/METHODCUSTOMER

Specific SpreadsheetsFrench OEMs

Honda Own web based system


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DCX

Ford


Engineering Specifications

General Motors GMW 3059

And Many Others!

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International Materials Data System (IMDS)A web-based (http://www.mdsystem.com) data collection system used by customers/suppliers to collect, create, and report product materials content and recyclability data“Bottom-Up” data collection systemFree of cost to suppliers – supported by customersA complete IMDS entry for an assembly includes

Part numberPart descriptionPart weightSub-components/assemblies details Each material compositionRecycled materials usage Complete substances disclosure - Not just the prohibited substances


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OEMs

Supplier <n>

Supplier 3

Supplier 2

Supplier 1

IMDS Database


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Substances of Concern

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Global Automotive Declarable Substances List (GADSL)

See http://gadsl.org

Pre-GADSL:Many lists for each OE, confused suppliers and was inefficient

Now: There is one list – that is consistent with each OEOne international committee “controls” this list with inputs from all OEs and SuppliersClear definitions of “prohibited” and “restricted”Consistent target dates for removal of prohibited substancesElimination dates not specified in GADSL but linked to EU Directives

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Lead (Pb)Lead in Solder and Contact Plating is Exempted

Usage is limited to 60 grams/vehicleSome Customers require Lear to provide Lead free products by 7/2006

Lead in Glass BulbsProhibited beginning 1/2005. Lear is required to get writtendeviations from customers

Lead in Pyrotechnic InitiatorsAllowed in vehicles type-approved before 7/2006

Lead in Copper AlloysUsage is limited to 4% by weight

Cadmium (Cd)No Lear product should contain Cadmium above 0.01% by weight

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Hexavalent Chromium (Cr6+)Hexavalent Chromium used for Corrosion Preventive Coatings

Prohibited beginning 7/2007 (Regulation)Prohibited beginning 7/2005 (Customers)

Mercury (Hg)Mercury in Instrument Cluster Lighting

Prohibited beginning 7/2004Mercury in High Intensity Discharge Lamps

Prohibited beginning 7/2006

Brominated flame retardantsBrominated Flame Retardants are Found in Plastic and Foam

Penta and Octa Brominated flame retardants prohibited beginning 8/2004


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FutureFor Lead

Bearing Shells and Brushes (July 2008)Aluminum for Machining Purposes with a Lead Content up to 1.5% by wt. (exemption ends July 2008)Pyrotechnic Initiators (July 2006)

For Hexavalent ChromeCorrosion Preventive Coatings (July 2007)Corrosion Preventive Coatings Related to Bolt and Nut Assemblies for Chassis Application (July 2008)


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FutureFor Cadmium

Thick Film Paste (July 2006) Optical Components in Glass Matrixes Used for Driver Assistance Systems (July 2007)Batteries for Electrical Vehicles (Dec 2008)

And – Our Customers May Have Very Specific Needs


FOR MORE INFORMATION ON WHAT MATERIALS ARE

ALLOWED AND PROHIBITED PLEASE REFER TO THE LEAR

SUPPLIER PORTAL ON COVISINT AND CUSTOMER

ENGINEERING SPECIFICATIONS

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The PMCRR-IMDS Reporting Process

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SuppliersSubmissions

to LearData Processing

By Lear

Philippines Engineering

Technical Center(PETC)

IMDS Submissions

to Customers

PAP Submissions

to Customers viaIMDS and other

Lear Uses ONE Reporting System Worldwide


EngineeringBill of

MaterialData

AdditionalInformation

to Customers

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Lear PETC IMDS Group - Roles & Responsibilities Validate incoming data from suppliers – no one else can validate this data

Send acceptance/rejection acknowledgment

Maintain data validation guidelines

Submit Lear IMDS data to customers

Notify suppliers and the requestor (engineering, quality or program managers) of any substances concern violation

Help desk for Lear, Suppliers and Customers [email protected]


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IMDS Acceptance


106

IMDS Rejection

Click on “View” to see the reasons for rejection


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IMDS Rejection

If suppliers report prohibited substances, such submissions will

be Rejected and reviewed for materials

change with engineering/program

team


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SoC Report Acceptance (if using the AIAG Spread Sheet)

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SoC Report Rejection (if using the AIAG Spread Sheet)


110


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Suppliers Can Submit IMDS to Lear in ONE of 2 ways:1. If submitting through IMDS, the IMDS information should be sent to

Lear IMDS site ID 632 (Lear Southfield)

2. If submitting using the AIAG spreadsheet, the certified form should be submitted to [email protected]

IMDS Data Submission Instructions and Requirements for SuppliersPosted at Lear Supplier Portal in Covisint and eCPAST

Submissions for PPAPs, 15 Working Days Prior to Supplier PAP Dates are recommended

Other Submissions for LPMP or Other Reasons may be RequestedIf any Supplier’s Data is Rejected – the supplier MUST work to resolve the rejection issue and must resubmit when resolved so the submission may be accepted.

NO OTHER EVIDENCE OF ACCEPTANCE WILL BE ALLOWED


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IMDS Training for SuppliersIMDS Site at www.mdsystem.com. This is the main IMDS site.

Select “Public IMDS page”. This will give FAQ, Training information, Contact information, etc. If you have not registered your company – go to “System” on the public page. The use of the IMDS site is free. If you are already a registered IMDS user, login from the main site.


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IMDS Training“Teach Yourself IMDS” - an On-line Video by General Motors

"Teach Yourself IMDS" was developed to help automotive suppliersunderstand and implement the materials reporting imperative. This seminar lasts about one hour. It is available at www.gmw3059.com website and it is free. Initial login is required to register.


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Wrap Up / Closing Remarks / Discussion

Margaret Lewis