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Preface

PREFACE

This Masters Thesis is the last part of our education in Industrial Management and

Engineering with concentration towards Quality Technology and Management at Lule

UniversityofTechnology.ThethesisisconductedatBroseSwedenABinGothenburg.

Wewould like toexpressourgratitude toour supervisorAndersEricson forgivingus the

opportunitytodoourMastersThesisatBroseSwedenAB.AndersEricsongaveusexcellent

guidanceandahelpinghandwhenneeded.

We would also like to thank Rickard Garvare, our supervisor at Lule University of

Technology, for excellent feedback and support during the project. Rickard Garvare has

followedusduringourprojectandalwaysbeenthereforusifneeded.

At lastwewould like to thank our roommates Sanna Thelin andGustafWikstrm for a

wonderful timeandmanyhilariousevenings together.Theyhavebeen there forus inour

upsanddowns,manythanks.

Gothenburg,February2007

______________________ ______________________

ClaesGustafsson AndreasPersson

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Abstract

ABSTRACT

Brose is a supplier to the automotive industry, with more than 40 vehicle brands as

customers.It isworldmarket leaders indoorsystemandwindowregulatorsandEuropean

market leader in seat system. Themanagement system in the new plant inGothenburg,

Sweden, iscertifiedaccording to ISO14001andTS16949.At theoutsetof this study the

companywasready togo towardsanewstep, fulfillingcustomerdemands fromFordand

Volvocars

to

become

certified

according

to

Q1,

which

is

astandard

for

management

sub

systemsincludingfundamentalqualityandmanufacturingdisciplines.

Brosewanted theauthors to lead the implementationwork inGothenburgand tomakea

standardizedworkmodel for other new plants. The collection of data has come through

interviewsandbrochures,whichwere thenanalysedandusedwhencreatingamodel for

implementation.Q1,TS16949and ISO14001aresimilar toanumberofotherstandards.

Wehave

gone

through

some

of

them

and

made

comparisons

in

order

to

find

ways

to

facilitatetheimplementationofQ1.

Whenworkingwithqualitysystems it isnecessary tocreateawareness for theemployees

andsetgoalsfortheimplementationwork.Thereisalsoaneedtoeducateemployeesand

builduptrustforthesystemtomake itusableforthecompany.Theimplementationwork

has tobedelegated tobeable tocreateawarenessbetween theemployeesand tomake

them feelneeded.Recurringmeetingsand learningarekeyelements tobuildasuccessful

qualitywork. The team spirit in the company comes from themanagers expressing their

gratitude to all employees and making them aware of the situation, the work towards

customersatisfaction.

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TableofContents

TABLEOFCONTENTS

1 INTRODUCTION..................................................................................................................................... 1

1.1 CORPORATEPROFILE................................................................................................................................... 1

1.2 Q1.......................................................................................................................................................... 4

1.3 PROBLEMDISCUSSION................................................................................................................................. 5

1.4PURPOSE

...................................................................................................................................................

6

2 METHODOLOGY.................................................................................................................................... 7

2.1 LITERATURERESEARCH................................................................................................................................. 7

2.2 RESEARCHSTRATEGY................................................................................................................................... 7

2.3

THE

DMAIC

IMPROVEMENT

PROCESS

............................................................................................................

8

2.4 DATACOLLECTIONMETHOD........................................................................................................................ 12

2.5 INTERVIEWS............................................................................................................................................. 12

2.6 RELIABILITYANDVALIDITY.......................................................................................................................... 13

3 THEORETICALFRAMEOFREFERENCE................................................................................................... 15

3.1 Q1REQUIREMENTSANDEXPECTATIONS........................................................................................................ 15

3.2 TS16949............................................................................................................................................... 17

3.3 ISO14001............................................................................................................................................. 18

3.4 ODETTE/MMOG..................................................................................................................................... 19

3.5QUALITYSYSTEM

......................................................................................................................................

21

3.6 TQM..................................................................................................................................................... 22

4 EMPIRICALSTUDIESANDANALYSIS..................................................................................................... 28

4 1 D 28

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TableofContents

TABLEOFAPPENDIX

BroseCustomer Appendix1

WorldMapoverBrosePlants Appendix2

InterviewGuide Appendix3

Q1ScoringThresholds Appendix4

OrganisationChart Appendix5

CustomerEndorsementLetter Appendix6

CustomerEndorsementMatrix Appendix7

HandbooktoQ1ImplementationMatrix Appendix8

Q1ImplementationMatrix Appendix9

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Introduction

1 INTRODUCTION

Thissectionstartswiththecompanypresentationandfurtheronpresentingtheproblemina

problemdiscussionthatleadstothepurposeofthereport.

1.1 CORPORATEPROFILE

The companypresentationwillguide you through the corporationofBrose, theirhistory,

theirproducts

and

their

way

to

produce.

1.1.1 HISTORYANDBACKGROUND

In 1908 Brosewas founded in Berlin byMax Brose andwas at first primarily a trading

company for automotive accessories and aircraftmaterials. Today Brose operates and is

partnertothe internationalautomotive industryandsuppliesmorethan40vehiclebrands

around theworld, see appendix: 1.With 8,800 employees at almost 40 locations in 20

countries, see appendix: 2, Brose isworldmarket leader inwindow regulators and door

systems(Brose,2006).BroseisalsotheEuropeanmarketleaderinseatsystemsandhasthe

thirdpositioninclosuresystems(Brose,2006).Becauseoftheirlargemarketsharesthereis

in factat leastoneBrose component inevery fourth vehicleproducedworldwide (Brose,

2006).During the time from1908untilnowBrosehasbeenoneof thebiggest innovative

firmsontheirmarket(Brose,2006).Amongstseveraldifferentinnovationsithasforexample

beenworld firstwithwindow regulators that couldhold the glass inanyposition (Brose,

2006). InSeptember2000Brosepresentsa seatadjustermechanismat the International

FrankfurtMotorshow,theweightisonly28grams(Brose,2006).

Inthesummerof2004theconstructionoftheBroseGroupsfirstScandinavianproduction

sitein

Gothenburg

was

started,

see

Picture

1.1.

This

plant

in

Gothenburg

is

ajust

in

sequenceplant (explained inchapter1.1.3) thatproducesapproximately5,600unitseach

weekfordoorsystems.In2006therewereabout50employees,includingthedevelopment

and customer teams for the Swedish automakers (Brose, 2006), see appendix 5 for the

currentorganisationchart.

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Introduction

1.1.2 THE PRODUCT

Brosedivides

its

products

in

two

categories,

Technology

for

doors

and

Technology

for

seats.

Thosecategoriesarefurtherdividedintocomponents,systemsandelectronics.

1.1.2.1 TECHNOLOGYFORDOORS

Brosebothdevelopsandproducesallessentialsystemandcomponentsfortheautomotive

doors.ThemainproductoftheGothenburgplantisasystemsolutionconsistingofdifferent

subcomponents, steel carrierplate, latch,window regulator, speakersandall surrounding

systems.Thesedifferentsubcomponentsareassembledontothesteelcarrierplatecreating

thesteelcarrierplatesystemsolution,seePicture1.2and1.3.(Brose,2006)

Picture1.2:Thesteelcarrierplatesystemsolution Picture1.3:Thesidedoorlatch

1.1.2.2 TECHNOLOGYFORSEATS

Brosesproducts

in

seat

technology

have

awide

range

from

manual

adjustment

component

upto18waypowercomfortseatsystems,seePicture1.4and1.5.

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Introduction

Picture1.4:Themanualseatheightadjuster Picture1.5:Thepowermultifunctionalseat

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Introduction

1.1.3 PRODUCTION

BrosesplantinGothenburgusesanextensionofjustintimethatiscalledjustinsequence

(Brose,2006). Just in sequencemeans thateach component reaches thecustomerat the

righttime, intherightsequence,andintheappropriateversion.Thiswayofproducinghas

become a necessity because of the changes in the automotive industry. Themajority of

components isnotproducedby themanufacturerbut comes instead from supplierswith

increasingnumber

of

responsibilities

in

the

production,

development

and

logistics

(SAP

AG,

2003).Asthepicture1.6shows,Broseonlygot180minutesfromgettingthesequencecall

untilthedeliveryandlinefeedingstarts.

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Introduction

improvement.Suppliersareexpected toattainacertainmark, toput the tools inplace to

maintain excellence and to improve in every area with each passing year. Q1 is also a

requirement fromFord ifyouwanttobeasuccessfulsupplier toFord (Q1secondedition,

2003).

1.3 PROBLEMDISCUSSION

Highqualityhasoftenbeenan important factorwhenmanufacturing cars,but ithas run

with

a

parallel

to

low

costs.

The

main

thing

suppliers

struggle

for

is

to

meet

or

preferably

exceed the car manufacturers needs, because of the high market competition. Car

manufacturershaveoftenbeeninthefrontlineofseekingnewwaystosolveproblemsand

leadthewaytonewqualitytools,asforexampleJustinTimeproduction(JIT)byToyotain

the1970s.

Costsofpoorqualityimpactonhowthecompaniesoftodayplantheirstrategy,partlytobe

morecompetitive

against

their

rivals

and

partly

more

obliging

to

their

customers.

A

car

manufacturer can often choose and control a supplier; they can put demands on their

supplier tohavedifferentdiplomasand certificates. In the car industry theneed forhigh

qualityhasmademanycarmakerstocreatetheirowngradelabelling.Fordnowrequiresits

supplierstobecertifiedaccordingtotheirownqualitystandard,Q1.TogetQ1statusyou

first need to be certified according to ISO 16949, 14001 and MS 9000/Odette/MMOG.

Besidesthese

ISO

certifications

Ford

has

numerous

expectations

and

demands

thats

needs

tobefulfilledtogetandkeepQ1status.

AsasuppliertoVolvo,ownedbyFord,BroseneedstohaveQ1statustobecompetitive.At

the time of this report Brosewas certified according to ISO 14001 andwas also aiming

towardsTS16949.ThisisanimportantstepforBrosewhichgoalistobecertifiedwithQ1in

thebeginningof2007.BrosehasnostandardizedwaytoimplementQ1intheirplantswhich

canlead

to

higher

costs

and

more

problems

during

the

implementation.

These

costs

and

problemsmightbeavoidedbyusingastandardizedguideonhowtoimplementQ1intheir

plants.

AmanageratBrosesaidthattheirproblemwhenimplementingnewsystemslikeISO14001

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Introduction

1.4 PURPOSE

Thepurpose

of

this

thesis

is

to

develop

an

implementation

model

for

the

customer

requirementsystemQ1,which isusableandhelpfulforBrosesnewplants,whichneedto

havetheircertificationsandcustomerstatusapprovalreadyassoonaspossible.

Theimplementationmodelissupposedtoincludethefollowing:

Timetable

with

explanations.

Responsibilityareasforalldepartments.

FocusAreas.

Allroutinesthatisexpected.

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Methodology

2 METHODOLOGY

In this section apresentation of used methodsfor the report are introduced and how the

procedureshavebeen.

2.1 LITERATURERESEARCH

According toDenscombe (2000) researchersshould startbydoinga literature research to

getagreater

understanding

about

existing

knowledge

in

the

chosen

subject.

To

get

agreater

understandingofour subjectwe started todo anexaminationof theavailable literature.

ThiswasdoneatfirstbysearchingthetwodatabasesLuciaandLibrisandcontinuedfurther

onwithEmeraldandEbsco.WordsusedascriteriastofindarticlesonoursubjectwereISO

9001, ISO 14001, Q1, implementing quality system.We also tried to use different

compositionandoperatorsof thesewords to findadditionalarticleson thesubjectas for

exampleImplementing

ISO

9001

and

ISO

14001.

There

were

some

articles

that

were

useful

andapplicableonoursubjectbuttheresultsvariedandforwrittenreportsorotherstudies

onQ1wecouldnotfindanythinghelpful.

2.2 RESEARCHSTRATEGY

Denscombe (2000) advocates that case studies are used to study things in detail and

thereforegain

valuable

and

unique

insights

about

the

research.

Denscombe

(2000)

mentions

that case studies concentrates on one or a few unitswith the purpose to get a deeper

understandingforevents,relations,experiencesorprocessesthatemergesintheparticular

unit.Denscombe(2000)alsodescribesthatthetypicalobservationischosenbecauseofthe

possibilitytoapplyresultsfromtheresearchontoothercases.Thismeansthatoneresultis

possibletogeneralizeontothewholegroup.

Denscombe(2000)claimsthatsurveystudiesareusedwhentheresearcherwantstohavea

widerangeofdatathatgivesadescriptionofthepresent.UnlikethecasestudyDenscombe

(2000)claimsthatsurveystudiespreferablyusesa largenumberofresearchunitstogeta

wide coverage of data. Further Denscombe (2000)writes that quantitativemethods like

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Methodology

ourresearchstrategy.Ourchoicetousecasestudy isalsosupportedbythe factthatcase

studiesgivetheresearcheradeeperunderstandingofeventsandprocessesintheparticular

unit,accordingtoDenscombe(2000).

According toBergman&Klefsj (2001)unwantedvariation isa very important source for

costs and unsatisfied customers. Bergman & Klefsj (2001) continues to explain that

elimination of variation can result in dramatic result enhancementswhich are the single

most important issue forSixSigma.Theyalsomean thatSixSigmagivesasystematicand

structuredway

of

working

that

often

result

in

requisite

enhancements.

Thisstatesthatwewillusethedifferentphases intheDMAICcycleandapplythemtothe

casestudyandgainthebenefitsfrombothofthesetheories.Themost importantbenefits

that we will gain is the structural way of working from DMAIC and the possibility to

generalizeourresultsfromasingleresearchunittotheotherplantsintheBrosegroup.

2.3 THEDMAIC

IMPROVEMENT

PROCESS

Sixsigmagivesasystematicproceduretobring therequisites improvements.Accordingto

Brue(2002),Foster (2003)andPande&Holpp (2001)DMAICconsistsof fivesteps:define,

measure,analyse,improveandcontrol.

2.3.1 THE DEFINEPHASE

This is the first step in the improvementprocess.According toPande&Holpp (2001) the

teamsgoalwiththe improvementsareto identifyanddefinetheproblem.Theteammust

firstansweranarrayofquestions:Whatareweworkingon?Whyareweworkingon this

particularproblem?Who isthecustomer?Whatarethecustomersrequirements?How is

thework currently beingdone?What are the benefits ofmaking the improvement? This

couldeasy

be

overviewed

in

achart

according

to

Pande

&

Holpp

(2001).

The

chart

usually

contains:

Abusinesscase:Whyisthisparticularopportunitybeingchosen?

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Methodology

Methods:theproceduresortechniquesusedindoingthework

Machines:thetechnology,suchascomputers,copiers,ormanufacturingequipment,

usedinaworkprocess.

Materials: thedata, instructions,numbersor facts, forms,and files that, if flawed,

willhaveanegativeimpactontheoutput.

Measures: faulty data resulting from measuring a process or changing peoples

actionsonthebasisofwhatsmeasuredandhow.

Mother Nature: environmental elements, from weather to economic conditions,

whichimpact

how

aprocess

or

abusiness

performs.

People:akeyvariableinhowalltheseotherelementscombinetoproducebusiness

results.

TousetherighttoolsisoneofthebigchallengesintheAnalysisstep, itdiffers,sometimes

simpletoolscansolveaproblem,asforexamplewhenanalysingqualitativedatawhileother

timesmoreadvancedtoolsisnecessary,whencalculationsmightberequired.

2.3.4 THE IMPROVEPHASE

In the improve phase new ideas to the problems have to be tested, refined and

implemented.

Sometimes

even

the

problem

has

to

be

refined

when

new

information

raises,

example fromthetesting.Agoodwayto learnnewwaysofsolvingproblems isto lookat

othercompaniesorothergroupsintheirbusinesstoseewhethertheycanborrowsolutions

orideas.Onceseveralpotentialsolutionshavebeenproposed,morecriteriacome,including

costsandlikelybenefitstodecidethemostpracticalsolution.(Pande&Holpp,2001)

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Methodology

Developingamonitoringprocesstokeeptrackofthechangestheyhavesetout.

Creatingaresponseplanfordealingwithproblemsthatmayarise.

Helping focusmanagements attention on a few criticalmeasures that give them

current information on the outcomes of the project (the Y) and key process

measures,too(theXs).

Fromthepeoplestandpoint,theteammust:

Selltheprojectthroughpresentationsanddemonstrations.

Handoff

project

responsibilities

to

those

who

do

the

day

to

day

work.

Ensuresupportfrommanagementforthelongtermgoalsoftheproject.

Whenthesolutionhasbeenimplementeditcanseemdifficulttowalkawayfromaproject,

thattheteamhasbeenworkingoninthelastsmonths.(Pande&Holpp,2001)

2.3.6 QUANTITATIVEORQUALITATIVEMETHOD

Denscombe (2000) claims that there is no clear distinction between quantitative or

qualitativeresearch,primarilybecausetheyarenotexcludingeachother.Nevertheless,the

largest distinguishing factor between these two research methods is according to

Denscombe(2000)

the

use

of

numbers

or

words

as

the

analysis

unit,

where

qualitative

researchusuallyuseswordsastheirprimaryanalysisunit.Denscombe(2000)alsodescribes

thequalitativemethod aswell suited for smallscale studies thatdescribeseventswith a

holistic view and that the researchers role in constructingdata is importantbecause the

researcheristhetoolthatinterpretsalldata.Incontrasttoqualitativeresearch,quantitative

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Methodology

2.4 DATACOLLECTION

METHOD

Insteadofjustusingliteratureasintroductiontotheresearchitcanalsohaveamorecentral

roleastheactualobjectforresearch.AccordingtoDenscombe(2000)literaturecanbeused

in research projectswhen it is used as background information or as a source for data.

Denscombe (2000) claims that there are seven different subtopics in literature as a data

sourceandoneofthemisbooksandjournals.

Denscombe (2000)writes that interviews are a very attractive alternative for researchers

because it seems easy tomaster. Although it seems easy tomaster Denscombe (2000)

describesanotherscenarioandarguesthatinterviewsarenotonlyconversations.Insteadof

a simple conversationDenscombe (2000) describes interviews as a series of assumptions

based on deep knowledgewithin the areaof the interview.He continues to explain that

interviewsare

used

when

the

researcher

needs

in

depths

information

on

the

subject.

According toDenscombe (2000) there are two questions that the researcher should ask

himselfwhendecidingondoinginterviews;

Isindepthinformationnecessaryfortheresearch?

Isit

reasonable

to

rely

on

so

few

sources?

(Interviews

cost

more

and

takes

more

time

thanforexampleaquestionnaire,thereforethesameamountisalmostneverviable)

After having considered these two questionswe came to the conclusion that comparing

existingliteraturewithinterviewsofkeypersonalforimplementationofQ1wouldprobably

be thebestdatacollectionmethod.Wealsorealized thatwehadassumptionsonhow to

solveour

problem

that

needed

to

be

confirmed

by

someone

who

had

existing

knowledge.

Theassumptionswehadonhowtosolvetheproblemwere:

To divide the expectations so that it should be more clear

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Methodology

wantstobeflexiblewhenitcomestonicheanddevelopinavisualpurpose.Theinterviews

wheresupportedwiththehelpfromourinterviewguidesinAppendix3.

Trost (2005)accountsthatthere isoftenbetter thatthe interviewerworks inapar ifthey

ensembles.Theycansupporteachotherunder the interviewwhile itbecomesbetterand

more information is usable. Trost (2005) continues to explain that on the other side the

interviewee perhaps feels under pressure if the interviewer is two,when the subject is

personal, while if the interviewer represent his business it can be polite if it is two

interviewer.

We

decided

both

to

be

there

at

all

interviews,

easier

to

remember

information

andagreatteamtogetherexceedsthedisadvantages.

Wedeterminedtonotuseataperecorderduringtheinterviews.AccordingtoTrost,(2005)

ataperecorderisforexampleusefulifyouarealoneasaninterviewerorifyouareapoor

handwriter.Wedecided instead thatoneofusshouldwritedownnotesandat thesame

timetrytosupportactiveintheinterview.

Tobestcomplywiththepurposeofthisresearchwechosetointerviewpersonsinvolvedin

somehow with Q1 implementation, they should be at different positions or different

companiestogetabetteranddeeperunderstandingandmanypointofviews.

BroseintroducedustoQ1andtheprojectbyhelpingustofindthebrochureaboutQ1and

by showingus theSIM system,which isusedby the supplier to report to theVolvoSTA.

Brosealso

helped

us

with

names

at

Volvo

and

other

supplier

with

Q1

status

that

we

could

contact.Theythen letusfindourownwaytohelpthem.Brosewantedustogathermore

informationonhowtheimplementationworks,includingtipsandpitfalls.

2.6 RELIABILITYAND VALIDITY

Abigaspect inscientificresearches istoachieveabigagreementaspossiblebetweenthe

theoriesand

the

empirical.

(Andersen,

1998)

Bell

(2000)

claims

that

validity

is

ameasure

on

how a specific question describes or measures the same as it refers to. Befring (1994)

describes it as whether the result is agreed with the desired result or if it has been

influencedbyotherfactors.Bell(2000)describesreliabilityasameasuretowhatextentan

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Methodology

data.Afterwardswediscussedtheanswerandtypedtheresultof itsothatwebothhada

completeawarenessoftheanswers.

Wehaveall the timebothbeen awareofwhat thenext step is supposed tobe.A close

discussionhavemadeitclearforbothofus,wethereforehavehadthechancetoachievea

betterwork and concentrate our skills on themost important, to create a fullyworking

matrix.

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TheoreticalFrameofReference

3 THEORETICALFRAMEOF REFERENCE

Inthissectionourusedtheoreticalframeisbeingpresented.Thesetheorieswillbeusedlater

andwillbethebasefortheanalysisandtheresult.

3.1 Q1 REQUIREMENTS AND EXPECTATIONS

ToreceiveandkeepQ1status therearenumerousofrequirementsandexpectations that

haveto

be

fulfilled.

Key

areas

are

capable

systems

and

manufacturing

site

assessment,

besides these two keyareas there are alsoongoingperformance, customerendorsement

andcontinuousimprovement.

3.1.1 CAPABLESYSTEMS

Toevenbeconsidered forQ1 status suppliersneed tohave thirdpartycertification inTS

16949orQS9000andtheISO14001environmentalstandard.Suppliersalsoneedtoshow

compliancetoMS9000,OdetteorMMOG(Q1secondedition,2003).Theselfassessmentof

MS9000,OdetteorMMOGmustbeenteredviaGSDBonlineby1stofAugusteachyear.If

anyofthesecertificationsarerevokedtheQ1statuswillbeinjeopardy.

3.1.2 ONGOINGPERFORMANCE

Ford measures ongoing performance with scoring thresholds and five key performance

metrics.Dependingonthesiteperformancetheygainorlosepointsaccordingtothescoring

threshold, see appendix: 4. Every newQ1 supplier starts ofwith 1000Q1 points, these

pointsarethenrecalculatedandreportedinSIMeachmonthbasedonthemostrecentsix

month performance. In addition to these metrics manufacturing site assessment and

warrantyperformancearealsotaken inconsiderationwhencalculatingthemonthlyscore.

The five key metrics are listed below but manufacturing site assessment and warranty

performanceisexplainedinthefollowingchapters.

Fieldserviceactions;hasFordbeenforcedto intervenebecauseofsupplierfailure?

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locations, in proper quantity andwith the right information? (Q1 second edition,

2003)

Violationsoftrust;hastheSupplierTechnicianAssistancebeeninformedofchanges

in the production, changes in equipment, supplier or subsupplier changes? (Q1

secondedition,2003)

Ongoing

performance

does

not

need

to

be

in

consideration

during

the

implementation,

but

it is one of the most important part when achieved Q1 status. Although ongoing

performanceisnotgradedduringtheimplementationyoustillneedtohavesixmonthofa

cleanPPMrecord.

3.1.3 MANUFACTURINGSITEASSESSMENT

Themanufacturing

site

assessment

defines

Fords

quality

requirements

and

is

akey

component of Q1. The meaning of the manufacturing site assessment is to evaluate

suppliers quality system and how well the site performs and plans for manufacturing

process capability. In order to achieve and keepQ1 status the site need to demonstrate

evidenceforthesefundamentals.Foraspecificlistoftheexpectationsonthemanufacturing

siteassessmentseeappendix:9.

TobeabletoreceiveandkeepQ1statussuppliersneedtobeableto listevidenceofeach

specificexpectation to theirSTAon themanufacturingsiteassessment.TheSTAwillhave

thepossibilitytobasetheirdecisionontheselfassessmentthatarereported inSIMorby

doinganonsiteassessmentofallpoints.

3.1.4 WARRANTYPERFORMANCE

WarrantyperformanceissomethingthatwillbeimplementedinQ1lateronbutasfornow

itisnotimplementedinthescoringthresholdoftheQ1system.

3.1.5 CUSTOMER ENDORSEMENT

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Recognition;Q1isasignthatyourfacilitystandssidebysidewiththebestsuppliers

inthe

world

(Q1

second

edition,

2003).

Publicityandadvertisingprivileges;Q1statusallowyoutopublicizeyourcompany

withtheprestigiousQ1flag(Q1secondedition,2003).

Self certification; As a Q1 supplier, you will be eligible,with Supplier technician

assistance concurrence, to selfcertify to the Production Part Approval Process

requirementsofQS9000andTS16949(Q1secondedition,2003).

World excellence award; asQ1 supplier youwill be eligible forworld excellence

award,whichacknowledgethebestofthebest(Q1secondedition,2003).

PreferredstatuswithFord;thismightbethemostimportantbenefitfromhavingQ1

status.Preferred statuswithFordgives your facility thepossibility to comeunder

consideration fordevelopment and sourcingofnewproducts (Q1 secondedition,

2003).

3.2 TS16949

Prior to 1996 the automotive industry had asmany quality standards as therewere car

producers. Suppliers could supply severalof these carproducers at the same timeand it

couldbeveryproblematictocomplywithallofthesedifferentqualitystandardsatthesame

time. This problem came to the automotive industries attention and The International

Automotive Task Forcewas created in 1996 to resolve this problem. IATF Togetherwith

representatives from ISOTC 176 started developments towards the new standard

ISO/TechnicalSpecification 16949startedandtodaytheyaretryingtoadeptISO/TS16949

to ISO9001. Thequality standards thatwereused todevelop ISO/TS16949 can herebe

seen:(Bergman&Klefsj,2001).

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VDA 6.1 (Verband der Automobilindustrie) represents the German automotive

industry

EAQF (Rfrential dEvaluation dAptitude Qualit Fournisseurs) represents the

Frenchautomotiveindustry

AVSQ (ANFIA Evaluation of Quality Systems) represents the Italian automotive

industry

(A)QS9000representstheAmericanautomotiveindustry

3.3 ISO14001

The Environmental Management Systems is an activity system for companies and

organisations who want to run an affective and structured environmental work. The

ManagementSystemconstitutesavoluntarytoolthatshouldmaketheworkeasier,andthe

standards give a work model for constant improvements (Morris 2004)

VDA6.1

EAQF

AVSQ

AQS9000

TS16949

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can for example be environmental certified, assumed that the production fulfils the

requirementsforthecertification.(Morris,2004)

3.4 ODETTE/MMOG

One areawith significant development progress ismaterialmanagement. As automotive

originalequipmentmanufacturersseektobalanceproductionwithdemand,itisparamount

thatrightsupplierareattherightplantattherighttimeforproductiontostayonschedule.

For automotive suppliers that argue delivery performance must be perfect. If supplier

deliveryperformanceisfaultypenaltiesareappointed.

Industry collaboration has delivered standardized rules for material management which

intendedtoimproveefficiencyandaccuracy,aswellasreducecostsfromerrorsandwaste.

Insightsfromearlyadopterssuggestthatthesestandardsservetheirpurpose,andmore.For

example it was recognized that effective and efficient materials management can help

minimizesupply

related

risk,

from

overstocking

to

getting

the

wrong

components.

To

get

a

handle on material management Ford motor company created materials system

requirementsandVolvoputlogisticsevaluationdocumentsinplace.

AutomotiveIndustryActionGroupinNorthAmericaandOdetteInternationalinEuropetook

noteoftheserulesandguidelines thatwerecreated,andthe fact thateachmanufacturer

haddifferentsetofrulesandguidelines.These tradegroups tookon the task toestablish

materialmanagement

standards

for

their

respective

regions.

In2004 these tradegroups took the standardizationa step furtherand compileda single

standard issue: the joint global Materials Management Operations Guideline/Logistics

Evaluation(MMOG/LE).TodayGlobalMMOG/LEprinciplesarebeingusedbytheautomotive

industrytohelpensureeffectiveandefficientmanagementofmaterialsthatsavestimeand

costs.

The

Global

MMOG/LE

uses

a

self

assessment

help

identify

what

process

adjustments

thatareneededforworldclassfunction.Theselfassessmentisalsomandatorytobeableto

applyforQ1asasupplierforVolvo.Seepicture:3.1.

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Picture3.1:SupplierAuditPolicy.

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3.5 QUALITYSYSTEM

A quality system is a tool to use to control and improve the quality on the companys

products.Thequalitysystemincludeseverythingfrommethodsandroutinestoorganisation

andresponsibledistribution.Thecommondenominator isthattheycontrolandaffect the

quality.(Berggren,Grubb,Hollnder,Kinde,Mellby,SeverinssonSkog,2001)

Tosecure

the

quality

in

the

company

products

the

quality

system

must

include

and

control

alltheessentialpartsofthebusiness.Customerandauthoritiesoftenputsademandonthe

suppliersproductandthequalitysystemcontentandfunction.Thecompanymanagement

have the responsibility to have an updated, effective and an affective quality system.

(Berggrenetal.2001)

Whenimplementingaqualitysysteminacompanyasystematiclongtermworkisnecessary

to achieve a good result. In the beginning of the implementation an overview over

fundamentalquestionsaboutthecompanyactivityandthestructureisessential.Whenthe

qualitysystemisintroducedacontinuousworkisrequiredtocomplementandimprovethe

system.Thesystemrequiresdocumentationasfaritpossibleandshouldbeasupportinthe

dailybusiness;itcouldalsoworkasabasefortheaudits.(Berggrenetal.2001)

Acertification

for

acompany

quality

system

means

that

an

independent

accredit

organisation makes an assessment about the requirements in for example ISO 9001.

(Berggrenetal.2001)

Acompanysmaintaskistoproducegoodsandservicesandtofulfilthecustomersneeds,

demandsandexpectations.Allcompanyshaveamainprocessthatgoesfromidentification

of customerneeds to a completeproduct.Thismainprocess canoftenbedivided into a

systemof

processes

that

is

depended

on

each

other.

(Berggren

et

al.

2001)

Whenaqualitysystemisimplementeditisimportanttoidentifythecompanyprocessesand

toestablish the order and collaborationbetween the processes. You also have to decide

which criteria and methods that needs to make sure that the processes can be controlled

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3.6 TQM

DaleandBunney (1999)describeTotalQualityManagement (TQM)asveryhard todefine

becauseof thevariousdefinitions thatexist.AlthoughTQM isveryhard todefine there is

commongroundbetweenthesedefinitions.

Systemsforimprovingqualityandqualitymanagementhasimprovedrapidlyduringthelast

decades,from

simple

inspections

to

refined

versions

of

quality

control

and

quality

assurance, and now most companies are working towards TQM according to Dale and

Bunney(1999).

TotalQualitymanagement requires that the principles of qualitymanagement should be

appliedineverybranchandateverylevelintheorganization.Itisacompanywideapproach

toquality,improvementsundertakenoncontinuousbasisbyeveryoneintheorganization.

3.6.1 KEYELEMENTS OF TQM

Despite all different views onwhat constitutes TQM, there are key elements in various

definitionsthatneedtobesummarized.DaleandBunney(1999).

3.6.1.1 COMMITMENTAND

LEADERSHIP

OF

SENIOR

MANAGEMENT

Without the totalcommitmentof the seniormanagement,nothingmuchwillhappenand

anythingthatdoeswillnotbepermanent.Theseniormanagementhastobetheonesthat

provides directions and exercises a forceful leadership.Although the seniormanagement

usesaforcefulleadershipnothingshouldbeforced,everythingshouldcomenaturally.Dale

andBunney(1999).

3.6.1.2 PLANNINGANDORGANIZATION

Planningandorganization is featured inanumberofareasofa continuous improvement

process as listed below:

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Putting quality assurance procedures into place which facilitate closed loop

correctiveaction.

Planning the approach to be taken for the effective use of quality systems,

proceduresandtoolsandtechniques,inthecontextoftheoverallstrategy.

Developing the organization and infrastructure to support the improvement

activities.

Pursuing standardization, systematization and simplification ofwork instructions,

proceduresandsystems.

Dale

and

Bunney

(1999)

3.6.1.3 USINGQUALITYMANAGEMENTTOOLSANDTECHNIQUES

Tosupportanddevelopaprocessofcontinuous improvementanorganizationwillneedto

useaselectionoftoolsandtechniques.Thetoolsandtechniquesshouldbeintegratedinto

theroutineoperationofthebusinessandthetoolsandtechniquesthatareintendedtobe

usedshould

be

presented

in

aroute

map.

Dale

and

Bunney

(1999).

Examples

of

recommendedtoolsare:

Benchmarking

FMEA(FailureModeandEffectsAnalysis)

Flowcharts

( l l )

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To ensure the general awareness of qualitymanagement, skills and attitudes employees

shouldhavetherightleveloftrainingandeducation.Aformalprogrammeofeducationand

trainingneeds

to

be

planned

and

provided

on

atimely

and

aregular

basis

to

ensure

the

generalawarenessofqualityamongsttheemployees.DaleandBunney(1999).

3.6.1.5 INVOLVEMENT

Theremustbeacommitmenttothedevelopmentofemployees,withrecognitionthatthey

are an asset whichwill be appreciated over time. To achieve broad employee interest,

commitmentandcontribution to thecontinuous improvementprocessallavailablemeans

fromsuggestionschemes tovarious formsofteamworkmustbeconsidered.Forexample,

partof theTQMprocess is toensure thateveryemployee isawareofwhat isrequiredof

themandhowtheirprocessaffectsthebusinessasawhole.DaleandBunney(1999).

3.6.1.6 TEAMWORK

Teamworkisoneofthekeyelementsofemployeeinvolvementandwithoutteamworkitwill

bedifficult to gain commitment andparticipationofpeople throughout theorganization.

There are several different types of teamswith different operating characteristics, all of

whichcanactasawaytogetpeople involved in improvementactivities.DaleandBunney

(1999).

Teamshave

anumber

of

objectives

to

fulfil

as

acomponent

of

the

continuous

improvement

process.DaleandBunney(1999).Forexamples:

AidthecommitmentofpeopletotheprinciplesofTQM.

Provide

the

means

and

possibility

for

people

to

participate

in

decision

making.

Helptodeveloppeopleandencourageleadershiptraits.

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Measurementneedstobemadecontinuallyagainstaseriesofkeyresultsorperformance

indicators internal and external. The approvedmeasurements and indicators should be

developedfrom

existing

processes

and

customers.

By

using

already

existing

processes

and

customer certain checkpointcanbedevelopedbyusinga roadmapwithbelongingaction

plansthatisusedtocorrectfaultyvalues.DaleandBunney(1999).

3.6.1.8 WORKINGTOGETHER

It is very important to create an organizational environment that is beneficial for the

continual improvementprocessandwhereeveryonecanparticipate.Bychangingpeoples

behaviour, attitudes and working practice there will be possible to integrate quality

assuranceintoallofanorganizationsprocessesandfunctions.Althoughitisveryimportant

tochangepeoplesbehaviourandattitudes itwillbeoneofthehardesttasksthatthere is

withinacompany.DaleandBunney(1999).

3.6.2 TOWARDSTQM

Joseph Juranadvocates that reducing thecostofquality isamust tobe successful in the

length.Juranstenpointplanisamilestonetowardsreducedcostofqualityandtotalquality

success.DaleandBunney(1999).Jurans10pointsare:

1. Buildawareness

of

the

need

and

opportunity

for

improvement

2. Setgoalsforimprovement

3. Organizetoreachthegoals

4. Providetraining

5. Carryoutprojectstosolveproblems

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businesses.ThefigureisdesignedonthebasisofJonesandSasser (1995).

Makingthe

first

sale

to

acustomer

is

often

very

expensive.

It

takes

alot

of

time,

advertising

andpromotions.Abigmistaketoomanybusinessesmakeisfocusingonsellingmoretofirst

timebuyersratherthantrytobuildupsaleswithexistingcustomers.Jones&Sasser(1995).

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EmpiricalstudiesandAnalysis

4 EMPIRICALSTUDIESANDANALYSIS

This chapter describes how theproject was carried out. The chapter is divided up into the

differentphasesoftheDMAICcycleasdescribedintheprevioustheorychapter.Thefactand

informationcomesfrominterviewsmadebytheauthors.

PeopleinterviewedintheDefineandtheMeasurephase:

STAmanager

at

Volvo

cars

STAatVolvocars

ManageratanautomotivesupplierthathasQ1status

ManagersatBrose,seeorganisationchartinappendix5

STASupplierTechnicalAssistance

4.1 DEFINE

AttheinterviewwiththeSTAmanageratVolvocars,hetoldusthathisearlierassignment

was todevelop suppliers toa level that is capable to continuousbusiness,whereQ1 isa

receipt.Oneoftheassignmentswastocollectdatafromsupplierstoaglobalsystem,SIM,in

Ford. For amonth ago he changedwork to onlyworkwith large cars, and is then the

responsiblepvpSTAandistheretobethedrivingforcetoaccomplishsolutions.

Aninterview

with

aSTA

at

Volvo

cars

began

with

adescription

on

how

to

succeed

with

the

implementationwork;youneedtowork inateamwithqualityasthedrivingforce.As for

example the logistics work with their responsibilities and everyone in the team has

knowledge for their work. When the third part certification is close it should not be

necessary for an alarm to complete the action plan

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WarrantySpikes,incasethatasupplierhascausedanerroronthefield,theyhave

not

been

sticking

to

their

agreement.

Fieldserviceaction,asforexampleifyouareforcedtocallbackthecarsaninputto

systemisnecessary.

Stopshipment.Ifthesuppliercausesastopintheproductionaninputtothesystem

isnecessary.

Violationoftrust,ifitshouldcomeforwardthatthesupplierwithholdsinformation

aninputtothesystemisnecessary.

TheSTAmanagercontinuoustotellthattheexpectationthatQ1hasistogivesupporttothe

supplier so itwillbeeasier to solveproblems, if the supplier cant supportFordorVolvo

whenaproblemoccurstheywillloosetheQ1status.Partnershipandknowledgeaboutand

withthesupplier ishighlyprioritised. IfthesuppliershouldbedisqualifiedtheSIMsystem

showsthatthesupplierisrevoked.AnotherproblemthatasuppliercanloosetheQ1status

by is that theyhaveawrongattitude thatcant keepupwith levelofquality.Before the

suppliergetsrevokedadialoguebetweenthemselvesaremadetoseeifthereisasolution.

TheautomotivesupplierhasfulfilledtheQ1statussince2002accordingtothemanager,the

relationshiphasnotbeenbetteraftertheautomotivesupplier implementedQ1.Sincethe

beginningof theproduction towardsVolvo therelationshiphasgone fromapersonaland

closerelationshiptoamoredistantrelationshipthatenduresmorenumbers.

Whenthemanageratanautomotivesupplierstartedwiththe implementationofQ1they

startedto

go

through

the

MSA

together

with

the

STA

to

evaluate

all

the

expectations

and

to

see if they had to change anything, Themanager at an automotive supplier had already

fulfilledmanyoftheexpectationsalreadysincebefore,sotheydidnotneedtochangethat

much.

E i i l di d A l i

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zerowrong.Thenextstepthattheyhavetoachieve istoestablishaplanwiththecoming

workthatisnecessarytoachieveQ1status.

TheSTAmanagersaysthatthemanagementteamagreeswhichpartthatcanbescheduled

todriveparallel,fromthattheQualitymanagermakesaplan.Tomaketheworkwithagood

performanceitisnecessarythatthecontinuousworkisapartofthedailyworkandapartof

themanagementagenda,QOS.

TheSTAsaysthatbeforeyoubegin towardsQ1theCapableSystems,TS16949, ISO14000

andOdette

is

expected

to

be

completed.

Odette

is

arate

in

SIM.

The

Focus

is

then

towards

theMSA,TheSTAsaysthatifthisiscompletedtherestwillbecovered.

TheSTAimpliedwiththefactthatTS16949andQ1MSAhasmanysimilarexpectations,itis

easytofollowthesimilarityinTS16949.

TheSTAmanagersaysthatqualityisasmuchassensitivethatitisasignificantoutputfrom

allthose

involved,

from

operators

all

the

way

up

to

the

management.

An

operator

that

has

beenmisledby instructionscaneasilymakeamistakewhich thenwillhaveaneffect that

influenceagreatpartoftheproduction,whichthenalsowilleffectthequality.

TheSTAmanagersaysthenwhenthesupplierhasimplementedthesystemstheyneed,they

thenwillhavetoshowthattheycanandareusingit,bothbyworkingandcommunicatingat

therightwayandbyahighprecisionindeliveryandoutput.

IftheSTAfindssomethingthatismismatchedfromtheexpectationstheywillnotrevokethe

supplierimmediately,theywillletthesupplierfixtheirproblemsfromactionplans.TheSTA

pointsoutthatitismuchbettertoraisethesupplierwithpositivestagesthancuttingthem

attheirfeets.

TheSTAsaysthatforthemostthesupplierworksbythemselveswhiletheSTAcomesatthe

endandchecksifeverythinghasgoneasplanned,theSTAwalksaroundintheplantandsee

howeveryoneworks.ThemostworkliesintheMSA,bothfortheSTAandthesupplier.The

STAlikestotakearandomsamplethathasbeenbroughtuponthemanagementmeetings.

h h d h l h f ll h

Empirical st dies and Anal sis

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The STA manager continuous by explaining a few tips regarding implementing, the

expectationsneedstobemoreprecisetogoalsthatcanmemeasured,andthatitcanbea

goodplan

to

cross

through

different

sites,

benchmarking.

A

view

between

the

plan

and

the

reality isnecessaryforasuccess,andthatthecoworkersfeelfortheirworkandthatthey

areconsciousandthattheirselvescanhelpiftheydorightandcauseiftheydowrong.

TheSTAmanagersaysthatatip istostartwithyourselvesandyourdailyworktoseehow

much time that isputtingonquality.Does themanagementworkon the rightway? It is

enoughtogo intoQOStosee if itsqualityoreconomicontheagenda. Itshouldalsobea

clear connectionbetweenquality,production and the coworkers.What is the subjectof

speech in the mornings? The rate or first time through. The operators have a big and

important responsibilitywhen they thenhave the final assignment to carry through their

workattherightway.

TheSTAmentionsthatitisimportantifyouwanttokeepQ1,complementedimprovements

shouldbe

acontinuously

force

all

the

way

from

the

management

to

the

operators.

TheSTAmanagersaysthatanimprovementthatsometimesisawishfromthecustomeris

when the supplier gets stressed and is short of time it is easy to loose communication

betweenthesuppliercustomer, it is importanttokeep itonahigh level. It isnecessaryto

have parameters of control and to be able to transfer the verbal that is coming up to

measurablegoalsandthenhaveaplanaboutwhoisdoingwhat.

TheSTAsaysthatwhenQ1statushasbeenproven,thestabilityinthePPMlightsupwhere

youareandishighlyimportant.

Themanager at an automotive supplier says that theirPPMhasbeendiscussedover the

yearsandifithasdeviateoutsidethelimitsithasbeendiscussedwiththeSTAatVolvo;the

discussionhasbeenabouttryingtosolvetheactualproblemandfutureproblems.

TheSTAsaysthatthesupplierhasbeendividedintoagroupfromonetofour,dependenton

whattheyproduceandhowimportant itistothecustomer,alsotheirhistoryofproducing

influence, if theyhavegoodPPM.This isdone tocontrolhow thesupplierworkswith the

MSA

Empirical studies and Analysis

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theyhaveslightlyhigherPPMthangroupnumber4.

4:HavecontrolonceayearfromtheSTA,characteristicsforthesesuppliers isthat

theyhavesmallarticlesandagoodPPM.

The STA says that work instructions are highly strict and are in line with the actual

productionandwork.Anactionplanthathascontrolovertheprocessisnecessary.

TheSTA

continuous

to

say

that

at

the

end

the

final

product

is

most

important

and

if

the

supplier uses FMEA and has good PPM it is often a good start, especially from a small

supplier.ForanexampletheSTAmentionsasmallcompanywhereheisSTA,theyhavehad

alotoftroubleformanyyears,buthasfinallycomedownto3PPMafterimplementednew

systems suchasFMEA.Aneasyway tosee if theproduction is running smoothlyand the

workersisfollowingtheinstructionscanbemadebyfollowingtheproductionfromscratch,

oneproduct

from

the

start

of

the

assembly

to

the

end,

go

through

every

point

in

the

line

untilithasreachedthefinalstage.

The STA says thatmistakes thateasily andoften ismissedwhen implementingQ1 is the

contactwith the sub supplier, the gage calibration,PPM and FMEA. If it is ahigh lackof

frequencybytheworkers, it is importanttobeabletohaveeducationwiththeemployees

tomakethemstaysotheycanusetheircompetence.Abigmistakethateasily ismissed is

thecontinuous

work

from

the

management

meetings,

where

updates

are

made

and

the

baseforallworkcomesfrom.

4.3 ANALYSIS

When implementinganewsystem therehave tobeanunderstandingofwhy this isdone

throughouttheemployees.Anengagementfromalldepartmentsneedstobemadeandan

understandingofwhatiscrucialtobeaccomplishedforasuccessfulbusiness.Meetingsand

presentationsarenecessarytouseto informtheemployeesandtomakeQ1an important

issue.Awarenessissoimportantandcrucialtosucceedwithasystemimplementation,that

continuousmeetings and follow ups ismost likely to be arranged everyweek or every


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DaleandBunney(1999)agreethattheimplementationworkneedstostartatthemanagers

showingthatthisisanimportantsteptoabetterfutureinthebusiness.Q1isatooltouse

tocontrol

yourself

and

acertification

to

show

your

customer

that

you

follow

their

expectationsonhowtowork.Ifalltheemployeeshaveanunderstandingofwhatthismeans

andhasaworkingplanonhowtheyshouldworkwithactionsplansandwork instructions

they are well prepared for the customers expectations. It needs to be clear that the

responsibility does not lie at the Quality manager; every department has their own

responsibilitytomakeQ1workandsucceedinthecompany.

Continuous improvementsareanongoingprocessandQ1 istheretocontrolandhelpthis

process towork. TheSTA is supposed tobeahelpfulhand through theprocessandalso

checks and controls if the expectations are followed. In the beginning the STA and the

suppliertogethergatherinformationonwhattheyneedtofulfilandchangeifnecessaryto

applywiththeexpectations.

Therequirements

or

certifications

that

need

to

be

completed

to

achieve

Q1

status

are

TS

16949, ISO 14001 and Odette. The most important thing in the implementation work

towardsQ1besidethecertifications istoworkaccordingtotheMSAandhaveaPPMthat

fulfils thedemands.Q1andTS16949aresimilaraccording tosomeaspects; thosewillbe

presented in next chapter.A goodway towork is trying to combine the implementation

workof ISO16949andQ1becausetheyarerelatedtoeachotherandtheybothgiveand

takefromoneanother.

Q1 isademand fromthecustomertothesuppliertoraisethecorporationbetweenthem

both, to build a greater bond between them. In theory there are many demands and

expectationsthatthesupplierneedstofollow,whowilllooseQ1statusifnotfollowed,and

thepossibilitytokeepproducingnewproductstothecustomer.AccordingtoEdvardssonet

althisisawaytobuildupcustomerloyalty.InpracticetheSTAinsteadofrevokingthemhe

triesto

communicate

with

the

supplier

to

solve

certain

issues,

it

is

almost

always

better

to

helpandtrysolveproblemsandfindsolutionsratherthantocancelarelationship.Inmost

casestheexistingsupplier isbettertodeliverright insteadoftryingtofindanewsupplier.

ThisisalsosupportedbyDaleandBunney(1999).


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mistakeatthemanagersaremade itwilloftentake longeruntiltheeffect isseenthrough

thecompany.

WhenQ1hasbeenproventhemostimportantfactorisPPM,itlightsupwhereyouareand

iseasy tomeasure and to control for the customer. If the goals isnt fulfilledaproblem

solutiondiscussionwiththecustomerisnecessarytomakeanoverviewofwhatisneededto

bechanged.

At theendcertificationsanddiplomaswillnotautomaticallycreateagoodproduct,but it

canhelp

by

implementing

control

processes,

for

example

by

using

FMEA

when

finding

failures inaproductorDMAICwhenworkingonaproject.Certificationsareboth for the

supplierandthecustomer.Positive forthesupplier isthathegetsmorecontrolovertheir

productionandprocesseswhen implementingnewcertificationswithaudits.Thecustomer

getsareceiptorcertificationfromthesupplierthatthesupplierworkstowardsconsistently

improvements,notonlyattheproductionbutevenatthemanagers.

Asystemthat iscreated fromthecustomerthat issupposedtobe forusebythesupplier

ofteninvolveshighcostsandeffortinformofmanpowerfromthesupplier.Itisnotalwaysa

systemlikethisisgoodforabusiness,thefocusisoftennotatthemainprocessandinstead

itcanbeatmaterialhandlingormeetingsdiscussingirrelevantforms,thefocusneedtobe

clearandunderstoodfromallparts,whichalsoisaccordingtoDaleandBunney(1999).

4.4 IMPROVEMENT

In the improvement phase we will discus the problem areas and a solution for these

problems.

4.4.1 IDENTIFIEDPROBLEMAREAS

Earlierwork

towards

Q1

within

Brose

has

according

to

our

research

and

knowledge

several

problemareas.TheseproblemareasarenotonlybecauseoffaultyroutinesfromBrosebut

alsolackofinformationfromVolvo.Wediscoveredthefollowingproblemareas:

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p y

WebelievethatourworkandtheworkwithourguidewillgiveBrosesavingsaround42,000

52,500EURduringaperiodof10years.Aswebelieve thereshould takeapproximately

oneemployee

at

least

1

2months

of

part

time

work

to

get

the

understandings

about

Q1

thatarenecessary tobeable to implementQ1 ina successfulway.Aprojectgroup,one

fromeachdepartmentneedstospendabout128hours together intoQ1 implementation;

we have approximately saved them halfof theirwork,64 hours.And becauseBrose is a

successfulcompanythathasgreatpotentialwebelievethattheywillhaveapproximately4

5newFordsites thatneeds tohaveQ1status inaperiodof10years.Thisassumption is

basedon

the

success

of

Volvo,

the

reorganisation

of

Ford

and

the

very

likely

growth

of

Brose.Our guide should reduce theworkload of the personwhom is responsible forQ1

implementationwithabout11.5monthsparttimework.Thisgivesthecalculationforour

potentialsavings:

OnepersonworkingparttimewithQ1for11.5months 4,000EUR

ProjectGroup,timesaved64hours 3,500EUR

Othercosts(suchastravellingexpenses,telephonecallsetc) 2,000EUR

TroubleshootingandRework 1,000EUR

Summary 10,500EUR

These cost savingswillbedoneateachnew site thatwillbe required tohaveQ1 status

whichaccordingtoourbelievesthereshouldbeabout45sites.

4sites*10,500EUR=42,000EUR

5sites*10.500EUR=52,500EUR


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4.5 CONTROL

The work from our implementation matrix and our way of working during the

implementationtowardsQ1hasbeensuccessfullyapprovedbytheSTAatVolvocars.There

were no drawbacks or changes that needed to bemade. Thereforewe can say that the

matrix and the comparison between TS 16949, ISO 14001 and Q1 has made the

implementationwork lessdemanding for theplant, thenextplantsdontnotneed togo

throughall

points

in

Q1

because

it

has

similarities

in

the

other

systems.

Conclusions

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5 CONCLUSIONS

Inthischapterourconclusionsandmostimportantrecommendationsarestated.

WebelievethatourmatrixandthisreportwillbeagreatassetforallBrosesitesthatmust

beQ1 certified in the future.Ourbiggest expectation from thematrix is that the similar

routineswiththeTS16949andtheISO14001arepointedoutwhichthenmakeslessdouble

work inthe future.Thetimetableandtheeasystepbystephandbookwillalsobeaguide

throughQ1

in

asimple

way.

By

this

report

we

state

out

that

Q1,

TS

16949

and

ISO

14001

can

beimplementedatthesametime,itwillbothsavetimeandmoney.

Coming intotheautomotive industrywebelievedthateverythingregardingqualitywould

be taken very seriously, and most quality issues were. But when we increased our

knowledgeaboutQ1,TS16949andISO14001weactuallybecameastonishedwhenseeing

all the correspondence between Q1, TS 16949 and ISO 14001. Because of all the

correspondenceroutines

between

Q1

and

TS

16949

we

asked

ourselves

what

the

meaning

ofQ1was.

Afterhavingperformedinterviews,meetingsanda lotof literaturestudieswecametothe

conclusionthatQ1willnotgainsuppliersinanywaybesidesthoseadvantagesthatFordhas

statedintheirbrochureaboutQ1:seeourTheorychapterforfurtherinformation.

Recognition

Publicityandadvertisingprivileges

Selfcertification

Worldexcellenceaward

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Discussion

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6 DISCUSSION

Inthischapterwewilldiscussaboutourreport,whatcouldhavebeendonedifferent?

Thereporthasbeenourfinalprojectattheuniversitywhilethereforewewantedtouseour

knowledge ina real lifeproject.Ourpurposewas tohelpBrosewith the implementation

workoftheFordsupplierrequirement,Q1.WithjustonlyonebrochureaboutQ1wehadto

interview a few people to getmore knowledge togetherwith tips and tricks to have as

smoothimplementation

as

possible.

Thepersons thatwe interviewedatVolvo, theSTAs,hadaverypositiveattitude towards

Q1,therefeelingthatthiswasaworkingsystemforthesupplierandaneededstatusmight

havehadanaffectonus.Whenwediscussed itwithasupplierhehadadifferentviewon

thesystemandsaidthattheirrelationshipwithVolvohadbeen lesspersonalsincetheQ1.

Q1 is a required status for a supplier while therefore at the moment is a necessary

implementationfor

afactory.

The reliability and validity have been a concerned regarding the people we have been

interviewing.Sometimestheyhaddifferentopinionsandfacts.Wecouldhavesolvedthisby

interviewingmoresuppliersandmoreSTAs,butthetimeframedidnotallowthattogether

withnonecooperatingsupplierstoVolvo.

Weneed

to

highlight

that

our

compared

points

with

Q1,

TS

16949

and

ISO

14001

might

not

havetheexactsimilaritybutithasthesamemeaningandsignificance.

Asa finalword for thisprojectwewould like topointout thatwe think if thehandbook

togetherwith ourMatrix is used; the time and cost effortwill be very positive for the

factory.

References

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7 REFERENCES

Inthissectionapresentationofusedreferencesforthereportwillbeintroduced.

Andersen,I.(1998).Denuppenbaraverkligheten Valavsamhllsvetenskapligmetod.Lund:

Studentlitteratur.

Befring,E.(1994).Forskningsmetodikochstatistik.Lund:Studentlitteratur.

Bell,J.

(2000).

Introduktion

till

forskningsmetodik.

Lund:

Studentlitteratur.

Berggren,Grubb,Hollnder,Kinde,Mellby,Severinsson&Skog.(2001)9000Godard att

byggaettkvalitetssystemifretag.Mlndal:IVF.

Bergman,B.&Klefsj,B.(2001).Kvalitetfrnbehovtillanvndning.Lund:Studentlitteratur.

Brue,G.(2002)SixSigmaforManagers.Blacklick,OH,USA:McGrawHillProfessional.

Dale&Bunney.(1999).Totalqualitymanagementblueprint.Oxford:Blackwell.

Denscombe,M.(2000).ForskningshandbokenFrsmskaligaforskningsprojektinom

samhllsvetenskaperna.Lund:Studentlitteratur.

Ford.(2003).Q1secondedition.

Foster,T.(2003).Managingquality:anintegrativeapproach.UpperSaddleRiver,N.J;Great

Britain:PrenticeHall.

Jones&Sasser.(1995).Whysatisfiedcustomersdefect.HarvardBusinessReview.

Morris,AlanS.ISO14000EnvironmentalManagementStandards:EngineeringandFinancial

Aspects.

Hoboken,

NJ,

USA:

John

Wiley

&

Sons,

Incorporated,

2004.

Odette.se. Global Materials Management Standard Charts a Course for Industry Advantage .

Pande&Holpp.(2002).WhatIsSixSigma?.Blacklick,OH,USA:McGrawHillProfessional.

Appendix

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APPENDIX1:BROSECUSTOMER

Appendix

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APPENDIX2:WORLDMAPOVERBROSEPLANTS

Appendix

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APPENDIX3:INTERVIEWGUIDE

STAManager

1. CanyoudescribeyourrollintheQ1work?

2. CanyouinshortdescribewhatQ1is?

3. Canyou

describe

anormal

implementation

process

to

reach

Q1?

4. Canyoulistthemostcommonproblem?

5. CouldyougivesometipstofutureQ1companies?

STA

1. Howwouldyoustarttheworktowardsasuccessfulimplementation?

2. CanyourecommendawaytoworkforBrosetoachieveandkeepQ1status?

3. WhatMSApointsdoyouseeasmostimportant?

4. Howdoes

the

Q1

scoring

work?

5. IsitcorrectthatmanyoftheQ1MSApointsexistinTS16949?

6. Whatisthebiggestmistakeacompanymakesduringtheimplementationwork?

Manageratanautomotivesupplier

1. CouldyoudescribeyourwaytoimplementQ1inyourcompany?

Appendix

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APPENDIX4:Q1SCORINGTHRESHOLDS

Appendix

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Appendix

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APPENDIX5:ORGANISATIONCHART

Weitergabe sow ie Vervielfltigung

dieser vertraulichen Unterlage(n),

Verwertung und Mitt eilung ihres

Inhalts ist nicht ohne unsere vor-

herige schriftli che Genehmigung

gestattet. Zuwiderhandlungen

verpflichten zu Schadenersatz.

Alle Rechte f r d en Fall der Patent -

erteilung oder Gebrauchsmuster-

Eintragung vorbehalten.

Thecopying, use, distr ibution or

disclosureof the confidential and

proprietary information contained in

thisdo cument(s) is strictly

prohib itedw ithout pr iorwr it ten

consent. Any breach shall subject

the infringing party to remedies.

Theowner reserves all r ights in the

event of the grant of a patent or the

registration of a utility modelor

design.

Source: Brose Fahrzeugteile GmbH & Co. Kommanditgesellschaft

Organization Chart

Appendix

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APPENDIX6:CUSTOMERENDORSEMENTLETTER

This

appendix

contains

the

original

Customer

Endorsement

letter.

Appendix

R f C E d

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RequestforCustomerEndorsement

(ProForma)

To: Date:

From: Q1Candidate SupplierCode:___________

Subject: Q1EndorsementoftheFacility/Organization

The

(Company/Division/Operating

Group)

is

petitioning

for

Q1.

SinceyourFacility/OrganizationisacustomerofthepetitioningFacility/Organization,your

endorsementisrequired.Pleasereturnyourcompletedendorsementwithin30days.

Thescopeofyourevaluationshouldbethemostrecent___months,withanyexceptions

identified.Anyadditionalinformationordetailthatyouwishtoprovidewouldalsobe

appreciated.

DoyouendorsethisFacility/OrganizationforQ1? Yes_____ No_____

Ifno,pleasedetailanyissues/concernswhichrequireresolutioninordertoassistusin

continuousimprovementofourabilitytosatisfyyourrequirements.

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

_______________________________________________________________

Appendix

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APPENDIX7:CUSTOMERENDORSEMENTMATRIX

Plant name

or division

Name Title Address Tel e-mail

Buyer Volvo Cars

Torslanda

David

Rohman

Logistic Manager VCT Volvo Car Corporation

Dept 79000

Geo loc TVKV

S-405 31 Gteborg

+46-31-597006 [email protected]

STA Eng Volvo Cars

Torslanda

Jimmy Sj STA Volvo Personvagnar

Dept. 53240 Geo Plac.

PVH-55 Ljusgrd40531 Gteborg

+46-31-3253382 [email protected]

Appendix

APPENDIX 8 HANDBOOK TO Q1 IMPLEMENTATION
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]

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APPENDIX8:HANDBOOKTOQ1IMPLEMENTATION

HandbooktoQ1implementation

1. Setupaprojectgroup.

a. GoodifitisthesameasTS16949andISO14001.

2. Checkthetimeplanandseeifyouareabletoputtheeffortasnecessary.

a. Readthe

steps

and

look

for

the

explanation.

b. SetupDeadlines.

3. Theprojectleaderappointsmeetingsforeverydepartment.

4. Go through the points in Q1 implementation matrix and see if any point is

completed.Atthesametimeyouwillhaveafastoverviewoverwhatisnecessaryto

bemade.

a. Including:

i. CapableSystems

ii. WarrantyPerformance

iii. ManufacturingSiteAssessment

iv. CustomerEndorsement

5. Send Customer endorsement letters in time; itmight take up to threeweeks to

receivethem.

6. Keepacontinuous

contact

with

your

STA.

Appendix

APPENDIX 9: Q1 IMPLEMENTATION MATRIX

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APPENDIX9:Q1IMPLEMENTATIONMATRIX

This appendix contains the Q1 implementation Matrix that was used by us during the

implementation work including Time plan, Capable Systems, Warranty and the

ManufacturingSiteAssessment.TheMatrixhasbeenadjustedtofitinsidethethesis.

Q1 Time Table

R Denotes responsibledepartment

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departmentS Denotes supportive

department

Index Process

Gene

ralPlantManager

Quality&Environment

Projectd

evelopmentsTK5

P

roductionSystem

Commerc

ialAdministration

H

umanResources

Logistics

Assembly

P

roductionFacility

Actionstobetaken

ActionstakentoDate

Requiredcompletiondate

Actua

lcompletiondate

Status

Explanation

T.1. Time TableT.1.1 Contact Ford

STAR 2006-11-06 2006-11-07 Completed By Contacting the Ford STA site

engineer you will be guided through thenecessary steps before you can do aformal Q1 application.

T.1.2 Q1 metricshistory

R 2007-01-01 Completed Your STA engineer will use your recentsix months of key performance metricsthat are reported in SIM as one of theelements for his final recommendation

Q1 t t Th fi

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on Q1 status. There are fiveperformance metrics, Field serviceaction, Stop shipments, PPMperformance, Delivery performance andViolation of trust.

Be sure to check your performancemetrics and be ready to explain eventualproblems at the on site assesment.

T.1.3 Working withexpectations

R R R R R R R R R 2006-12-01 Completed The manufacturing site assessment is akey component to Q1. Be ready to show

compliance for each expectation that ispresented in the manufacturing siteassessment matrix at the "on siteevaluation".

T.1.4 Warranty (exp) R 2006-12-01 Completed The warranty expectations is a necesarycomponent in the evaluation of Q1status. A supplier can gain or lose Q1points depending on demonstratedwarranty performance.

T.1.5 CapableSystems

R R 2006-12-01 Completed Work towards third-party certifications inTS-16949 and ISO-14001. Also worktoward compliance according to MS-9000/Odette/MMOG. (because ISO-14001 and TS-16949 already isimplemented, the timeplan only takesOdette, MS-9000 and MMOG in toconsideration)

T.1.6 Self Evaluation R 2006-12-08 Completed Your facility will conduct a self-evaluationto ensure that you meet Q1 criteria. Thisself evaluation will concern Working withexpectations. More specific explanationon expectations are supplemented in theManufacturing site assessment page.

T.1.7 Self Correction R 2006-12-15 Completed After the Self Evaluation you might haveseen missing or missled information thatdoes not meet the Q1 criteria. Here youhave time to take action.

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T.1.8 CustomerEndorsement

R 2006-12-19 Completed Once you believe your facility is ready,based on the site performance reported

in SIM and the manufacturing siteassessment expectations the next step isto obtain the necessary customerendorsements. These endorsements willbe valid for six months from the date ofthe signature.

Be sure to gather all endorsements fromall your Ford customers.

T.1.9 FormalApplication

R 2006-12-20 Completed Send a formal Q1 application to FordSTA along with documentation of yourcertification to TS 16949 (or QS-9000until December 14, 2006) and ISO14001, and compliance with MMOG (orMS-9000 or Odette).

T.1.10 On Site

Evaluation

R 2006-11-05 Completed Q1 on-site evaluation may be scheduled

to review your qualifications for Q1 byFord STA. The on site evaluation willdiscuss, demonstrated site capabilities,performance metrics, manufacturing siteassessment and the overall Q1 pointsmaintained during the prior six months ofdata.

T.1.11 Finalrecommendation

R 2007-01-08 A final recommendation about your Q1status by Ford STA will be presented.

Q1 Capable Systems

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R Denotes responsible department

S Denotes supportive department

Index Process GeneralPlantM

anager

Quality&Enviro

nment

Projectdevelop

mentsTK5

ProductionSystem

CommercialAdministration

HumanResourc

es

Logistics

Assembly

ProductionFacility

Actionstobeta

ken

Actionstakento

Date

Requiredcompletiondate

Actualcompleti

ondate

Status

Explanation

C.1. Capable Systems

C.1.1 Third Part Certification:

ISO 14001 - Environmental Management System

R 2006-12-01 Completed

C.1.2 Third Part Certification:

QS-9000 - Quality Management SystemTS 16949 - Supplier Quality System

R 2006-12-01 2006-11-02 Completed

C.1.3 Compilance According to:

MS 9000 - Material Management SystemRequirementsMMOG - Material Management OperationGuidelineOdette

R 2006-12-01 In progress

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Q1 ExpectationsCompleted

98% x.x.x.x CorrespodI

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ndenceroutine

Inprogress 3%

*= Denotes focus area R Denotes responsible department Behindschedule NoCorrespondenceS Denotes supportive department Critical

Index Process GeneralPlantManager

Quality&Environ

ment

Projectdevelopm

entsTK5

ProductionSystem

CommercialAdministration

HumanResources

Logistics

Assembly

ProductionFacilit

y

Actionstobetake

n

ActionstakentoD

ate

Requiredcomplet

iondate

Actualcompletion

date

Status

Explanation

TS-16949Routine

s

ISO-14001Routines

I.1. Quality procedures/QS-9000/TS 16949/QOS R

I.1.1 Supplier's quality system is third-party certified tothe QS-9000 or TS 16949 (full compliance to TS16949 by December 14, 2006) requirements.

R 2006-12-01

2006-11-07

Completed

I.1.2 Existing Supplier's environmental system will becertified to ISO 14001 by July 1, 2003. Non- Q1suppliers must comply to ISO 14001 requirementsprior to Q1 award or Q1 reinstatement.

R 2006-12-01

2006-11-07

Completed

I.1.3 Supplier's quality manual contains processes for all

areas of the site assessment. The quality manual isupdated as needed to drive statistically validcontinual improvements in the quality system.Supplier's Senior Management Team includingrepresentatives from Manufacturing, Quality,Engineering and Human Resources perform thesereviews.

R 2006-

12-01

2006-

11-07

Completed Finished

for theTS-16949audit.

4.2.2

I.1.4 Non-conformances identified in internal audits arenot repeated.

R 2006-12-31

Inprogress

Finishedfor theTS-16949audit.

8.2.2

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I.1.5 Supplier has a document process to identify andregularly update customer expectations, objectives

and requirements.

R 2006-12-01

2006-11-07

Completed Finishedfor the

TS-16949audit.

5.2,5.4.1.1,

7.2.1,8.2.1

I.1.6 Supplier has a document process to identify andregularly update internal expectations, objectivesand requirements.

R 2006-12-01

2006-11-07

Completed Finishedfor theTS-16949audit.

8.2.1

I.1.7 Supplier has a documented process to identify and

regularly update internal expectations, objectivesand requirements into QOS measurable.

R 2006-

12-01

2006-

11-07

Completed Finished

for theTS-16949audit.

8.2.1

I.1.8 Supplier has a documented process to assigntargets and objectives to each QOS measurable.

R 2006-12-01

2006-11-07


5.4.1

I.1.9 Supplier has a documented process to assignchosen measurable to appropriate managementlevels for review, follow-up and improvements.

R 2006-12-01

2006-11-07


5.4.1

I.1.10 Supplier utilizes action plans to drive statisticallyvalid continual improvements of chosen metricsand are a tracked at QOS review meetings.

R 2006-12-01

2006-11-07

Completed Finishedfor theTS-16949

audit.

8, 8.4

I.1.11 Supplier's management team holds monthly QOSperformance review meetings with representativesfrom Manufacturing, Quality, Engineering andHuman Resources. Improvements actions aretaken by cross-functional teams that include levelsof the organization.

R 2006-12-01

2006-11-07


5.6.1

I.1.12 QOS reviews include a review of all applicableFord SIM metrics, key process metrics andcustomer satisfaction metrics.

R 2006-12-01

2006-11-07


8.2.1.1

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I.1.13 Metrics monitoring customer satisfaction that arerelated to supplier manufacturing are understood

and tracked.

R 2006-12-01

2006-11-07


TS-16949audit.

5.2,8.2.1

I.2. FMEAs/Control Plans* R

I.2.1 All Ford parts have documented design andprocess failure mode and effects analysis (DFMEA,PFMEA and Control Plans (or DCPs)). There is arobust process in place for these documents.

R 2006-12-01

2006-11-21


audit.

7.3.1.1,7.3.3.1,7.3.3.2

I.2.2 FMEAs are reviewed annually or as issues arise. APareto is used to focus on 1) severity 2) theproduct of severity and occurrence, and 3) toidentify high RPNs in order to prioritize actions todrive improvements.

R 2006-12-01

2006-11-21

Completed Reviewed onregularbasis

7.5.1.1

I.2.3 All error detection areas are reviewed and plansexist to move to error prevention devices (pokejoke), where feasible.

R 2006-12-01

2006-11-21

Completed Reviewed prior toTS audit

7.3

I.2.4 Supplier, in cooperation with their customers, hasidentified Significant Characteristics (SCs) andHigh Impact Characteristics (HICs), whereapplicable, on their PFMEAs and Control Plans forevery Ford part or family of Ford parts.

R 2006-12-01

2006-11-21

Completed Finishedfor theTS-16949audit.Coincides with TSroutine

7.3.2.3

7.3.2.3

I.2.5 Supplier works with Ford (i.e., Program VehicleTeams (CRT), Supplier Technical Assistance (STA)to establish final agreement of SCs and HICs.Suppliers obtain specific agreement from Ford forany parts not having SCs or HICs.

R 2006-12-01

2006-11-21


I.2.6 Supplier ensures that all print dimensions and call-out notes on the engineering drawing are alwaysmet through Control Plans, work instructions, job

set-up instructions and receiving inspection.

R 2006-12-01

2006-11-21


I.2.7 Supplier verifies pass-through characteristics andensures that zero defects are at Vehicle Operations(VO) and final customer.

R 2006-12-01

2006-11-21


7.1.2

I.2.8 Control Plan is a result of appropriate qualityplanning and includes clear linkage between

R 2006-12-01

2006-11-21


7.5.1.1

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planning and includes clear linkage betweenDFMEA and PFMEA.

12 01 11 21 for theTS-

16949audit.I.2.9 Control Plans contain the following elements:

Operation number/namePart Name/Part NumberInspection RequirementsSpecificationsControl MethodsSC, CC, HIC (where applicable) and EngineeringSpecifications (ES) requirements are identifiedSC, CC, HIC (where applicable) and ES ControlMethods (in-process checks, process gaging, andpart gaging) are appropriateError-proofing methodsIn-process control methodsSample size and frequencyRequired tools, gages and other equipmentReaction plans must clearly direct the operator onhow to act when a process begins to go out ofcontrol, or a product fails an inspection or test

R 2006-12-01

2006-11-21


7.3.2.3,7.3.3

I.3. Employee Readiness/Training Review R 4.4.2

I.3.1 Supplier is responsible for assessing the skillsrequired to perform all activities that affect productquality.

R 2006-12-01

2006-11-07


audit.

6.2.2

I.3.2 Employees have had a skills assessment, atraining plan and evidence of training.

R 2006-12-01

2006-11-07


6.2.2

I.3.3 Supplier ensures that only trained and qualifiedpersonnel are involved in all aspects of themanufacturing of Ford parts.

R 2006-12-01

2006-11-07

Completed Finishedfor theTS-

16949audit.

6.2.1

I.4. APQP/Launch/PPAP/Run-at-Rate Review* R

I.4.1 Supplier has a APQP tracking mechanism in place. R 2006-12-01

2006-11-21


I 4 2 Supplier has a system to manage new vehicle R 2006- 2006- Completed Reviewe

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I.4.2 Supplier has a system to manage new vehicleprogram launches.

R 200612-01

200611-21

Completed Reviewed prior to

TS auditI.4.3 Supplier has a process in place to support Ford

prototype and pre-production build events in atimely manner.

R 2006-12-01

2006-11-21


7.3.6.2

I.4.4 Supplier has a process to continuously monitor andimprove launch performance.

R 2006-12-01

2006-11-21

Completed Finishedfor theTS-

16949audit.

7.5.1.1

I.4.5 All PPAP documentation must contain theinformation per the PPAP manual published by theAutomotive Industry Action Group ( AIAG) - thisinformation must also be available for Ford review.Suppliers in North America have a process in placeto comply with Phased PPAP initial run-at-rate,production verification and capacity verification.

R 2006-12-01

2006-11-21


I.4.6 Suppliers require sub-suppliers to have a processin place that effectively satisfies all PPAPrequirements regardless of sub-supplier businessrelationship with Ford.

R 2006-12-01

2006-11-21


I.4.7 Run-at-rate must be completed and support thestated program requirements (at full-volumeproduction levels) for all Ford parts.

R 2006-12-01

2006-11-21

Completed

I.4.8 Run-at rate must include the following elements

and be performed on the entire process or theslowest operation (process bottleneck): machineavailable hours, shifts, days, machine downtime(planned and unplanned), machine change-over,breaks, and quality or scrap.

R 2006-

12-01

2006-

11-21

Completed

I.4.9 Supplier monitors capacity has a process to ensureongoing sufficient capacity on all Ford parts.

R 2006-12-01

2006-11-21

Completed

I.5. Manage the Change R

I.5.1 Supplier has a documented process to effectivelyimplement post - Job 1 design changes, processchanges or volume changes.

R 2006-12-01

2006-11-21


I.5.2 Supplier effectively reviews and updates its qualitysupporting documentation for these changes.

R 2006-12-01

2006-11-21


4.2.4

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Examples of documents that may require changes:Process Flow Diagrams, FMEAs, Control Plans,Operator Instructions, Visual Aids and PPAPdocumentation.

TS-16949audit.

I.5.3 Supplier follows a documented process to ensurethat proper Ford approvals are gained prior tomaking process changes. The approval processwill include use of Supplier Request forEngineering Approvals (SREAs), ChangeRequest/Concern Report (CR/CR) in Worldwide

Engineering Release System (WERS),Management Alerts and revised PPAPdocumentation, as appropriate

R

Documents

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