Modeling Part Cost (MPC) – Phase I Summary Quote in ... · Ford Global Production Purchasing is launching “Phase I” of an overall ... •You can then update the applicable

Modeling Part Cost (MPC) – Phase I

Summary Quote in WebQuote for WIPS RFQ Transactions

Supplier TrainingDesired Outcome:

Provide overview of Modeling Part Cost-Phase I: “Summary Quote” in WebQuote for WIPS RFQ transactions• “Summary Quote” Data Elements Review • RFQ Screen Shots Review • Export to Excel Review• Appendix: Frequently Asked Questions, “Summary Quote” Data Field Definitions, Supplier Training Schedule

Confidential Last Update: October 11, 2017

Post Job #1Ongoing Engineering Change

Quotes in WIPS

<PTC> Quote (2EC-2nd Engr.

Concept)Alignment with OCE

<PA> Quote (3EC-3rd Engr.

Concept)Alignment with

OCE

<FDJ> + 30 days“P” Release” in WERS ->

WIPS Initial Release Quote

Change Request Quote

(CRQ)

Ford Global Production Purchasing is launching “Phase I” of an overall effort to capture standard quote data inputs for all

GPDS quoting events. This effort will eventually enable a more robust comparison of quotes across quoting events.

“Phase I” contains the “Summary Quote” in WebQuote for all WIPS RFQ transactions (please see below).

Later Phases:

In the future, this process

will be expanded to require

the standard quote data

inputs for all GPDS quoting

events (and include

“manufacturing process

specific” data inputs as

needed).

2

GPDS Quoting Events

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“Summary Quote” in WebQuote for WIPS RFQ Transactions Overview

“Summary Quote” in WebQuote Data Elements

1 1.00

2 2.50

3 0.25

4 0.10

0.35

5 0.05

6 0.02

0.07

0.42

7 0.35

4.27

8 Scrap 0.01

9 0.02

10 Profit 0.03

0.06

11 0.20

4.53

12 0.01

13 0.02

14 0.03

15 FREIGHT 0.03

16 DUTY 0.10

17 0.60

0.79

5.32Total Piece Cost

ED&T

ILVS

PACKAGING - OUTBOUND

OTHER

Total Adjustments

Sub-Total Piece Cost

Direct Labour

Indirect Labour

Indirect Fringe

Indirect Labour

Total Labour

Total Burden

Total Manufacturing Cost

1st Tier Mark-Ups

SG&A - Total

Total 1st Tier Mark-Ups

Total Bought-Out Mark-Ups

Direct Fringe

Summary Quote Elements

Total Raw Materials

Total Bought-Out Content

Direct Labour

The “Summary Quote” data elements

that have been incorporated into

WebQuote are listed to the right.

Each entry is a mandatory field.

Zeros are acceptable if correct. Data

entry will be monitored between Buyer

and Supplier.

Please contact your Buyer with

questions.

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Definitions for each “Summary Quote” Data Element may be found in the Appendix

“Summary Quote” in WebQuote: Communication

Ford Global Production Purchasing is launching Modeling Part Cost Phase I: “Summary Quote” in WebQuote for all WIPS RFQ transactions effective November 1, 2017. As part of this system upgrade, you will need to provide additional cost details on the “Summary Quote” breakdown screen. Please attend a training session on this topic. You can find the training schedule in “What’s New”.

After logging into WebQuote from www.covisint.com, and begin the quoting process, the WebQuote main screen will be displayed below.

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“Summary Quote” in WebQuote: RFQ Example

Once the RFQ has been selected –scroll down to the Line Items section of the RFQ.

Note: the Variance and New Price are no longer entriable fields.

Select “Click here to fill the Production Quote Details”

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Please note: Information in this training slide is fictitious and for training purposes only.

There are no changes to the first section of the RFQ details

“Summary Quote” in WebQuote: RFQ Example (con’t)

6ConfidentialPlease note: Information in this training slide is fictitious and for training purposes only.

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The Commercial Adjustments (required

fields) and PPC Information remain the same.

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Please note: Information in this

training slide is fictitious and for

training purposes only.

Returning to the Line Items screen will populate the “New Price” field. If this was a design change, both the “Variance” and

“New Price” fields will be populated.

9

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Once the quote is submitted

a prompt will appear to allow the quote to be exported into an Excel file.

“Summary Quote” in WebQuote - Export Quote to Excel

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Quote Header

Engineering Release NB00E13160207246

Issued Date 2017-Jun-12

Bid Due Date 2017-Jul-3

QUOTE # XOQKPYV0XBC

Submitted Date 2017-Jun-12

Manufacturing / Supplier

Code V0XBC

Ship From V0XBC

Quoted By Greg Rentschler

Contact Phone Number

Contact Email

Currency USD

Buyer Name TREGANOWAN, JOY

Buyer Code GC27

Buyer Telephone 313-2064046

Requestor/Engineer Name SABELLI-JSABELLI

Requestor/Engineer

Telephone 1-313-316 8168

Year 2017

Plant Locations KENTUCKY TRUCK

Model Product U625 EXPLO

Item / Part Number ETOE-12345-T26

Production Part Name ETOE-12345-T26 / REINF ASY-FRT BMPR CVR MTNG RH

Unit Of Measure PIECE STUECK

Commodity Code A210

Commodity Name CONDENSER

APW 200000

Effective Date 2017-Jun-12

APPC 5000

MPPC 65000

Clauses/Remarks

By submission of this bid, the bidding company ("Bidder")

certif ies that :1. The prices in this bid have been arrived at

independently by the Bidder w ithout collusion or agreement

for the purpose of restricting competition w ith any other

party, sought by Ford, to bid on this project ;2. Unless

otherw ise required by law , the prices w hich have been

quoted in this bid have not been know ingly disclosed by the

Bidder to any other bidder or to any competitor; and3. No

attempt has been made or w ill be made by the Bidder to

induce any other person, partnership or corporation to

submit or not to submit a bid for the purpose of restricting

competition. 11Confidential

“Summary Quote” in WebQuote - Export Quote to Excel (con’t)

Please note: Information in this

training slide is fictitious and

for training purposes only.

APPENDIX

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Frequently Asked Questions

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• Question: If I normally attach additional cost detail with the quote submission, will this stop?

• Answer: No•Suppliers can continue to attach additional cost detail as required or agreed upon between you and your Buyer.

Question: Do I have to complete all of the “Summary Quote” data elements or can I leave fields blank?

•Answer: Yes •A value must be entered into each field (Please Note: A value of zero is acceptable). •The Buyer and Supplier will need to work together to ensure that the data submitted is correct.

•Question: Who should I contact if I have questions or issues?

•Answer: Please contact your Buyer or submit a request for help through the Ford Supplier Portal.

13

• Question: Will I have to re-enter all of the “Summary Quote” data elements for each design change in WIPS?

• Answer: No

•A “copy forward” feature has been incorporated to prepopulate the fields with the prior quote’s information.•You can then update the applicable fields as required.

Frequently Asked Questions (con’t)

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Question: What is a Claim?

Answer:

• Mass price change action to many individual items for a single supplier in one transaction• Price change not related to change in item design:

• Negotiation• Productivity• Greening (Packaging)• Metal Market movements (Auto Materials)• Economics• Long-Term Agreements• Usage (Raw Materials)

Question: How will claims work with Modeling Part Cost “Summary Quote” in WebQuote for WIPS RFQ Transactions?

Answer:

If the last Purchase Order in WIPS was to handle any of the above price changes not related to a design change, the “copy-forward” feature will provide the last design change’s quotation and a warning message will appear to indicate “Previous price displayed does not match existing WIPS pricing”.

At this point, you can modify your quote information as required to incorporate the claim adjustment as well as the design change being quoted into the appropriate fields of cost. Note: If the part is linked to Auto-Materials, the total Raw Material entry must be > or equal to the Auto Materials content. For ongoing design

changes, it becomes important that the Auto Material portion of the total Raw Material entry be reviewed and kept in alignment to current indices.

“Summary Quote” Field Definitions

Total Bought-Out Content

Sub-components used in the part that are furnished

by a secondary Supplier (i.e., no value added

manufacturing by primary Supplier).

Labour DetailsDirect LabourCost of manufacturing labor per hour per headcount specifically

identified with a value-add step in the manufacturing process. Quoted

as costs per hour.

Direct Labour Fringes

Includes annual leave, bonus, sick leave, other (time off, social, union,

time banked hours, community service) as well as company pension,

retirement supplement, social security, health insurance and other

statutory payments (training, sport grounds, library, etc...)

Indirect LabourCost of manufacturing labor not directly associated with a value-add

step in the manufacture of a specific product (e.g., material handling,

shipping/receiving, QC, ME, & first line supervision).

Indirect Labour FringesIncludes annual leave, bonus, sick leave, other (time off, social, union,

time banked hours, community service) as well as company pension,

retirement supplement, social security, health insurance and other

statutory payments (training, sport grounds, library, etc...)

Total Labour

Total Labour is the sum of Direct and Indirect

Labor including Fringes.

1

2

3

4

5

6

Total Raw Materials

Refers to the base materials that Suppliers use to begin the

part manufacturing process (i.e., steel, aluminum, various

plastics, etc…) The raw material price is to be aligned with the

PEL (if applicable). For very specific Raw Materials surcharges

may be included.

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“Summary Quote” Field Definitions (con’t)

Total Burden

Machine—based plant overhead costs directly associated with

specific product manufacturing. Burden includes:

Depreciation over the life of the equipment (Straight–line)

Insurance on capital equipment

Maintenance, Repair and Other (MRO) -

- Cost to maintain production equipment/tools

Floor Space

- Operating supplies, labour and building depreciation or

rental

- Indirect Materials (machining lubricant, coolants, weld

gas, etc.)

- Utilities – Building / Equipment (electricity, gas, water)

Total Manufacturing Cost

Total Manufacturing Cost is the sum of: Total Raw Materials,

Total Bought-Out Content , Total Labour and Total Burden

71st Tier Mark-ups

Scrap

Allowance to recognize that all processes, even those 'in

control,' may produce some parts outside quality standards that

must be scrapped or reworked. Quoted as percentage of

manufacturing costs (Purchased Parts, raw material,

processing, and assembly).

SG&A

SG&A is the sum of the details below:

Overhead costs directly relate to:

Marketing & Sales (Value Added),

Line testing for specifications,

Research and development activities,

Expenses incurred in the direction, control and administration of

a plant/company (e.g., company overhead) of a product,

quoted as percentage of manufacturing costs (Purchased

Parts, raw material, processing, and assembly).

Profit

Compensation to the Supplier for the assumption of risk in

supplying the part to Ford. Calculated as profit before tax.

Quoted as percentage of manufacturing costs (Purchased

Parts, raw material, processing, and assembly).

8

10

9

Total 1st Tier Mark-ups

Total 1st Tier Mark-ups is the sum of: Scrap, SG&A and Profit.

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Total Bought-Out Mark-Up

Bought-Out Mark-up is compensation for the management of

purchased content:

Non-value-add mark-up paid to the Tier 1 for management of

purchased content.

Sub-Total Piece Cost

Sub-Total Piece Cost is the sum of: Total Manufacturing Cost,

Supplier’s Mark-up (Scrap, Sales and General Administrative

Cost), and Bought-Out Content Mark-up.

1112

Commercial Adjustments

ED&T (Engineering, Development and Testing)

Engineering, Development & Testing refers to the costs a

Supplier might incur during the development of a part for a new

program.

If all or part of the design and development of a part is to be

undertaken by the Supplier, there will usually be ED&T costs

agreed as part of the early sourcing agreement and included in

the Commercial Program Agreement will be what these cost

are and how they are to be paid. Payment can be made via

Lump Sum, amortized into the piece price or a combination of

these.

13 ILVS (Inline Vehicle Sequencing)

Costs associated for selected Suppliers to manufacture and

deliver material in predicted sequence to the Ford assembly

plants.

- Uses production disciplines and a sophisticated computer

algorithm to electronically maintain sequence in body and

paint.

- Enables the plant to introduce the same vehicle sequence

into final assembly that was established in the schedule.

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1415

16

Commercial Adjustments

Packaging – Outbound

Packaging terms describe the type of packaging used to transport

parts. There are five different terms, shown in the table below.

Expendable

This type of packaging is used only once. It is the default type in

regions where a route for returning packaging has not been

established, e.g. The US. The cost is usually captured within the piece

price.

3P – Third Party Leased

This refers to standard, re-usable packaging that is leased from a

leasing company designated by Ford. The leasing company are

responsible for the provision and maintenance of the packaging. The

lease cost generally must be within the piece price. There may be

additional costs e.g. for any unique internal packaging inserts

required. It is the default code for all European plants.

Other

This covers any other, exceptional arrangement.

Supplier Durable

This type of packaging is reusable and owned by the Supplier. There

are a limited number of programs that use this type.

Buyer Durable

This type of packaging is reusable and owned by Ford Motor

Company.

It is sometimes referred to as 'free-issue' and has not been in standard

use for a number of years.

Other

The Other/Tooling Lease field is for a China Tooling Lease

process, unique for Chinese Suppliers.

Freight

These are held on a table and are used to calculate the cost of

transporting parts from the Supplier to the build plant.

They are set by Freight and General Services (Traffic and

Customs).

Duty

These are charges that may be levied on parts

imported/exported between countries that are not within the

same trading area or according to national rules.

17

Total Adjustments

Sum of the total Commercial Adjustments: ED&T, ILVS,

Packaging – Outbound, Freight, Duty and Other

Total Piece Cost

Total Piece cost is the sum of Sub-Total Piece Cost and

Commercial Adjustments.

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MPC Phase I Global Launch: Supplier Training Schedule

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Date Time (EST) Meeting Notice Link Call-In Number Meeting Number / Access Code WebEx Link

Tuesday, October 17, 2017 7:00am Add Meeting to Calendar +1-313-248-3668 or +1-888-628-3668 712 246 346 https://ford.webex.com/ford/j.php?MTID=m0abbee4ae9d2a50fe663180466ddc866

Tuesday, October 17, 2017 2:00pm Add Meeting to Calendar +1-313-248-3668 or +1-888-628-3668 712 962 475 https://ford.webex.com/ford/j.php?MTID=mab6dbbf4c04f6fe64241fccc37d183d9

Thursday, October 19, 2017 7:00am Add Meeting to Calendar +1-313-248-3668 or +1-888-628-3668 716 106 523 https://ford.webex.com/ford/j.php?MTID=meaef75a6a9f307165d59b8bfed2986ee

Thursday, October 19, 2017 2:00pm Add Meeting to Calendar +1-313-248-3668 or +1-888-628-3668 713 214 855 https://ford.webex.com/ford/j.php?MTID=md3ffb16f26ac7fe16385db4e5f742708

Tuesday, October 24, 2017 7:00am Add Meeting to Calendar +1-313-248-3668 or +1-888-628-3668 718 263 868 https://ford.webex.com/ford/j.php?MTID=meb0b73f91f2d8692d15cdac26aac21ff

Tuesday, October 24, 2017 2:00pm Add Meeting to Calendar +1-313-248-3668 or +1-888-628-3668 716 477 459 https://ford.webex.com/ford/j.php?MTID=m82927e9775ab721e428ee1a0d8973986

Thursday, October 26, 2017 7:00am Add Meeting to Calendar +1-313-248-3668 or +1-888-628-3668 716 536 837 https://ford.webex.com/ford/j.php?MTID=m6a3895463e84b6e1b4062ed8b6cbc20a

Thursday, October 26, 2017 2:00pm Add Meeting to Calendar +1-313-248-3668 or +1-888-628-3668 714 641 132 https://ford.webex.com/ford/j.php?MTID=m70ae948bb432e43223ab593dbeffe72c

Tuesday, November 7, 2017 7:00am Add Meeting to Calendar +1-313-248-3668 or +1-888-628-3668 718 673 480 https://ford.webex.com/ford/j.php?MTID=m3fc08e716bf39472ce68dbfe45b18d96

MODELING PART COST (MPC) PHASE I

SUPPLIER TRAINING SCHEDULEPLEASE SELECT ONLY ONE SESSION

BE SURE TO SAVE YOUR TRAINING DAY/TIME TO YOUR CALENDAR

Documents

Modeling Part Cost (MPC) – Phase I Summary Quote in ... · Ford Global Production Purchasing is launching “Phase I” of an overall ... •You can then update the applicable