siemens.comRestricted © Siemens 2016
End-to-End Quality for Automotive
Suppliers and Industrial Machinery (IM) /
Heavy Equipment (HE)
25th Wednesday, 08:00 – 09:00
Giulio FolgaraitRoom: Estrel Hall C1
Restricted © Siemens AG 2017
SynopsisExecutive Summary
Growing global demand for top quality
products is coupled with increased
regulatory requirements to create intense
pressure on manufacturers and their supply
chains.
In the automotive and industrial equipment
industries, external and internal suppliers
feel the pressure to reduce costs, deliver
faster, and improve quality. The needs
apply whether the process is repetitive or
engineer-to-order.
http://blog.lnsresearch.com/bid/176069/3-reasons-why-closed-loop-quality-management-strategies-fail-data
Achievement of zero defect production with the use
of a single quality system from design to execution
(closed loop) and retrofit (lessons learned)
Restricted © Siemens AG 2017
The cost of poor QualityYour business has two things to worry about …
Costs incurred internally and externally are caused not only by defects in
products, but also by inefficiencies in production and processes
External Failure
Costs (EFC)
Internal Failure
Costs (IFC)
=
CoPQ Formula
CoPQ = IFC + EXC
where:
IFC = Scrap Costs + Rework Costs
EFC = Returned Product Costs +
Warranty Costs + Product Recall
Costs
… and difficult to discover
Restricted © Siemens AG 2017
What do we need for a better market position?Targeted Business Benefits
Holistic quality system and centralized data
Early trend analysis, continuous improvement
Compliance with regulations
Complaint resolution within the global network
Manage overall cost of Quality
Anticipating Disruptions, Not Reacting to Them
Restricted © Siemens AG 2017
DFMEA
Customer Complaint
/ Internal Concern
Review & Update
Generic FMEA
Part Specific
Control Plansupdated globally
Complaint
FMEA
Control Plan
Control Plan
Control Plan
Controls in place
Q
Global QE
Plants
Plant
Business Challenges
Align control and
monitoring
procedures from
corporate to
premises
Holistic quality system and centralized data
Federal Mogul is global producer of Power Train and Automobile parts
“An integrated quality management
system, reinforced by a cross-
company software solution, is
indispensable in the planning, control
and monitoring of process and
corporate quality, especially among
global enterprises. Individual,
standalone solutions can be replaced
with a single homogeneous system”.
Dr. Roland Jochem
Professor and Head, Quality
Science Department Berlin
Technical University"
IDEATION
Restricted © Siemens AG 2017
Business Challenges
High costs of stock
surplus parts to
reduce the effect of
defects from
supplier
Anticipating Disruptions, Not Reacting to Them
USA worldwide automotive industry components and parts supplier
“Implementing Supplier Performance
Monitor, which first rolled out in
Germany and Ireland three years
ago, has played a crucial role in the
company's efforts to reduce parts
defects and thereby stock fewer
surplus parts. According to the
company, suppliers have reduced
their parts per million (PPM) by 33%,
meaning more of the parts delivered
from suppliers are passing quality
inspections."
REALIZATION
Restricted © Siemens AG 2017
Business Challenges
Improve process
transparency and
positions for future
growth
Early trend analysis, continuous improvement
Components division adopted QMS Professional
The ability to continually monitor
each
component throughout
manufacturing helps Liebherr
identify trends early in the process. If
needed, the company can make
realignment decisions before
tolerance limits are reached.
(Juergen Stuhlmueller ,
Quality Assurance Manager Liebherr-Components
Biberach GmbH)
UTILIZATION
Restricted © Siemens AG 2017
Trends in Automotive FTSConfigure to Order (CTO)
Restricted © Siemens AG 2017
Trends in Industrial Machinery / Heavy EquipmentEngineer to Order (ETO)
Restricted © Siemens AG 2017
TR
EN
D 1
Impact on Product Quality
Suppliers must deliver 0
defect products and manage
quality according to
automotive standards
(TS16949) and governmental
rules
Possibilities
OEMs are on the move to increased outsourcing of a proportion of their value added business to
suppliers – with the biggest growth in the (electric) powertrain and combustion engine segments
Profit from harmonized and
standardized quality
processes throughout the
product life cycle, with a zero
defect strategy
OEMs with a focus on
design, innovation and
marketing that are
outsourcing to FTS,
continue to ask for
shorter time to market
while complexity
drastically increases
End-to-End solution to
manage all aspects of
quality throughout the entire
product lifecycle, with a
closed loop process to
continuously improve
product quality and
proactively learn from past
errors
SOLUTION
OEM and FTS relationships are changingHolistic quality approach is becoming more critical
Restricted © Siemens AG 2017
OEM and FTS relationships are changing Holistic quality approach is becoming more critical
▪ Chronic underinvestment in quality
▪ Lack of technology and lack of formal processes
▪ Quality is considered to be a department, not a global responsibility.
Much of industry has low quality maturity due to:
Source : LNS Research 2016 Quality Management in the Board Room: Building the Executive Business Case for EQMS
Restricted © Siemens AG 2017
OEM and FTS relationships are changing Holistic quality approach is becoming more critical
▪ Chronic underinvestment in quality
▪ Lack of technology and lack of formal processes
▪ Quality is considered to be a department, not a global responsibility.
Much of industry has low quality maturity due to:
Unique standard platform with a centralized database
Standard charts for acquired data evaluation - definable metrics
Continuous Improvement/innovation by consistent/integrated
Lessons Learned loops
D-FMEA and Process FMEA to perform risk analysis
Standard platform for entire Quality Product lifecycle
Supplier portal, Supplier Complaint, Supplier Assessment, PPAP
support
Capability to manage Internal, Customer and Suppliers complaints
Standard module to manage Audit and compliance
Structured feedbacks by means of actions and complaint
management
Several reports available for all stakeholders
Source : LNS Research 2016 Quality Management in the Board Room: Building the Executive Business Case for EQMS
Restricted © Siemens AG 2017
Holistic quality approach is becoming more critical
Restricted © Siemens AG 2017
OEM and FTS relationships are changingIncreased Supply Chain complexity
TR
EN
D 1
OEMs with a focus on
design, innovation and
marketing that are
outsourcing to FTS,
continue to ask for
shorter time to market
while complexity
drastically increases
New complex collaboration
and dependencies with OEM
and Tier-2 suppliers;
regulations and cross-
company tracking & tracing of
modules, parts, and
components
Impact on Processes
Optimize customer and supply
chain management with
standardized processes and
effective assessment metrics
OEMs are on the move to increased outsourcing of a proportion of their value added business to
suppliers – with the biggest growth in the (electric) powertrain and combustion engine segments
Possibilities
Implement an Integrated
system to support and
interact with customers and
suppliers, with standard
processes and reliable
procedures
SOLUTION
Restricted © Siemens AG 2017
OEM and FTS relationships are changing Increased Supply Chain complexity
Central database for supplier complaints management
Supplier assessment cross plant
Collaboration on problem solving from complaints between customer and
suppliers based on portals
Customer complaints - Problem solving with 8D and Ishikawa/5 Whys
Incoming/outgoing goods inspection based on dynamic sampling profiler
Restricted © Siemens AG 2017
Increased Supply Chain ComplexityIncoming Goods control and Supplier Complaints
Restricted © Siemens AG 2017
Change in customer preferences Mass customize via an integrated quality planning and execution
End customer demand for
customized products
TR
EN
D
Impact on Product Quality
▪ Answer customization requests on standard
offerings, reducing opportunity to reuse past
quality designs because of new, specific
demands
▪ Difficult to estimate and keep time to market
engagements
▪ Need to improve the process and the
effectiveness of the equipment to meet goals for
energy consumption and waste production
Which change in approach?
Perform safely quality
processes capturing all
the complexities of global
product variations for all
product configurations
Enable reduction of time to
market via fully integrated
quality solution along the
complete lifecycle (from
planning to execution)
linking ideation, realization
and utilization
SOLUTION
Restricted © Siemens AG 2017
Change in customer preferences Mass customize via an integrated quality planning and execution
Restricted © Siemens AG 2017
Business Challenges
Fragmented system
landscape limits
performance improvement
opportunities
Standard QMS systems do
not integrate Quality
Management with Product
Design
QMS systems must be able
to be integrated with
existing, higher level
systems and shop floor
Align and optimize supply
chain with integrated
processes for complaint
resolution and
collaboration
Restricted © Siemens AG 2017
▪ Extend ERP logistic into
detailed plant quality
providing local flexibility
▪ Interact with supplier via
managed approach (8D,
Portal)
▪ Modify Process
Planning using
complaint sources
▪ Enable change
management
▪ Use lessons learned for
future problem solving
Value PropositionIBS QMS Professional:Quality Management Solutions
Business Goals
Restricted © Siemens AG 2017
Increase transparency
and response to
deadlines via integration
of quality tools
Rationalization of
inspection strategies and
operating procedures
Quality Planning
Comprehensive planning and support of all quality relevant tasks
▪ Advanced Product Quality Planning
(APQP) Project Management, Control
Plan
▪ Failure Mode and Effects Analysis
(FMEA)
▪ Inspection Mgt (IPM) & Gauge Mgt
▪ First Article Inspection (FAI) & Production
Part Approval Process (PPAP)
Standard-based risk
analysis for product and
process design
Businesses are challenged by … then our customers expect from us ...
Restricted © Siemens AG 2017
Real-time tracking and
data exchange enabling
reduction of inspection
and defect costs
Change management
driven by closed loop
between execution and
planning
Quality Execution
Efficient quality data acquisition and defect handling
▪ Incoming Goods Control / Outgoing
Goods Control
▪ In Process Quality Control
▪ Manual and automated quality data
acquisition
▪ Visual support for efficient data
acquisition by Statistical Process Control
(SPC)
▪ Defect Tracking
▪ HACCP procedure enforcement
Integrated complaint
management reducing
defects through reliable
data transmission
Businesses are challenged by … then our customers expect from us ...
Restricted © Siemens AG 2017
Hard facts for supplier
assessment (delivery
quality, date & quantity
reliability)
Collaboration for
problem solving
Quality Analytics
Aggregation of real-time data to relevant KPIs depending on role / level
▪ Supplier Assessment (SAM)▪ Targets for each supplier with and actual ratings
comparison
▪ Overview of the complete supplier history
▪ Evaluation (EVA) & Statistics▪ Comparing actuals to the specifications
▪ Ability to analyze deviations in product
quality
▪ Concern and Complaint Management
Statistics and Process
reliability calculation
Businesses are challenged by … then our customers expect from us ...
Restricted © Siemens AG 2017
Configurable OOTB (Out of the box)
Why Siemens solutions
Summary
Enables “digitalization” Best-Practice for Industry
Holistic Quality approach
Support the entire Product and
Process Life Cycle
Best-Practices manufacturing:
Automotive Suppliers, Industrial
Machinery and Heavy Equipment
Replacing the heterogeneous system
landscape in a single platform
Problem solving Process driven by
standardized method
Restricted © Siemens AG 2017
As such, presentations help
define the company’s reputation
and provide both internal
and external orientation.
Questions
Q&A
Answers
Restricted © Siemens AG 2017Realize innovation.
Giulio Folgarait
Manufacturing Operations Management Business Enablement
Senior Director - MOM Industry Management Automotive
Email: [email protected]