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NCR ConfidentialNCR Confidential
NCR Supplier Quality Webcast
June 8 2011
Bob Ciminera - Vice President Strategic Sourcing
Robert Mele - Vice President, Quality and Continuous Improvement
NCR ConfidentialNCR Confidential 2
Agenda – Supplier Quality Webcast
Introduction
Supplier PPM, Trend Requirements/
Timeline
Bob Ciminera /Robert Mele
Robert Mele
Wagih Wazni
Robert Mele
All
SQDD Update/PPAP/FAI
350 PPM Action Plans Supplier Quality
Training Michael Crutch
NCR Actions for Success
Q&A
NCR ConfidentialNCR Confidential 3
What Is PPM?
Parts Rejected Per Million Parts Received:
PPM = Rejects / Receipts * 1,000,000
Rolling 3 Month Average minimizes noise
Focus on high rejects AND high PPM
Parts Rejected Per Million Parts Received:
PPM = Rejects / Receipts * 1,000,000
Rolling 3 Month Average minimizes noise
Focus on high rejects AND high PPM
SupplierName Receipts Rejects PPM
High Rejects Supplier 1,421,619 2,877 2,024
High PPM Supplier 20,920 326 15,583
Actual data from 1 March – 31 May 2011Actual data from 1 March – 31 May 2011
High rejects impact NCR overall PPM more than individual supplier PPM
NCR ConfidentialNCR Confidential 4
Supplier Quality PPM – Global View
350 PPM Actions Use of MSA to validate and calibrate rejections between supplier and NCR Sites Weekly focused actions on failure modes impacting overall PPM target Analysis of SCAR failure mode data to drive DMAIC projects Individual Top Offender Supplier action plans to achieve 350ppm Supplier Webcast every two months – Next 8/10/11 PPAP requirement for all New Parts/Suppliers
NCR Supplier PPM Trend
2240
1517
1097935 745 749 657
0
500
1000
1500
2000
2500
2009
2010
Jan-
11
Feb-1
1
Mar
-11
Apr-1
1
May
-11
Jun-
11
Jul-1
1
Aug-1
1
Sep-1
1
Oct-11
Nov-11
Dec-11
De
fec
ts in
PP
M
3 monthrollingaverage
Target
NCR ConfidentialNCR Confidential 5
PPM Requirements – What you need to do
March - May 3-Month rolling average: 657 PPM
March - May 3-Month rolling average: 657 PPM
What actions must you take to achieve 350 PPM?
PPM Requirements
July 2011: 500 PPM
October 2011: 350 PPM
March 2012: 300 PPM
October 2012: 200 PPM
PPM Requirements
July 2011: 500 PPM
October 2011: 350 PPM
March 2012: 300 PPM
October 2012: 200 PPM
NCR ConfidentialNCR Confidential 6
Short Term Actions
For suppliers > 350 PPM:
108 letters sent requesting Action Plan
Received majority – communicating with suppliers who haven’t provided plan
Immediately -
Confirm updated Supplier Inspection program
Return 350 PPM Action Plan to NCR
Monthly review with your SQE to begin
Immediate increase in inspection
For suppliers > 350 PPM:
108 letters sent requesting Action Plan
Received majority – communicating with suppliers who haven’t provided plan
Immediately -
Confirm updated Supplier Inspection program
Return 350 PPM Action Plan to NCR
Monthly review with your SQE to begin
Immediate increase in inspection
Execute Action Plan to achieve 350 PPM by October but begin inspection NOW to reduce rejects at NCR
Execute Action Plan to achieve 350 PPM by October but begin inspection NOW to reduce rejects at NCR
NCR ConfidentialNCR Confidential 7
Supplier Quality Training
Quality ToolsStatistical Process ControlControl ChartsPPAP Training
Quality ToolsStatistical Process ControlControl ChartsPPAP Training SPC and Control Charts will enable
early warning and prevent defective parts from being shipped to NCR.
SPC and Control Charts will enable early warning and prevent defective
parts from being shipped to NCR.
Sample
Sam
ple
Mean
191715131197531
602
600
598
__X=600.23
UCL=602.474
LCL=597.986
Sample
Sam
ple
Range
191715131197531
8
6
4
2
0
_R=3.890
UCL=8.225
LCL=0
11
Xbar-R Chart of Supp2
Plant Date SuppliersChina 3-May 23India 16-May 11
Hungary 20-Jun 10U.S. 18-Jul 6
Brazil 13-Jun 10
NCR ConfidentialNCR Confidential 8
Supplier Quality Design & Development (SQDD)
Purpose
Assure smooth part & module introduction to NCR – PPAP & Design Review
Selection of quality suppliers for NPI
Current Status
Design review started on key programs (S1, S2 & SDM)
PPAP qualification = Started with 30% rejection rate
Reviewing suppliers capability and alignment with NCR quality goals.
500 PPM by July 1 and 350 PPM by Oct 1, 2011
Future Activities
ID suppliers with score of 2 or 1 on score card for quality to prevent upfront involvements with new programs or winning new business
Award suppliers new business with score 4 & 5 across the score card with cost advantage
Purpose
Assure smooth part & module introduction to NCR – PPAP & Design Review
Selection of quality suppliers for NPI
Current Status
Design review started on key programs (S1, S2 & SDM)
PPAP qualification = Started with 30% rejection rate
Reviewing suppliers capability and alignment with NCR quality goals.
500 PPM by July 1 and 350 PPM by Oct 1, 2011
Future Activities
ID suppliers with score of 2 or 1 on score card for quality to prevent upfront involvements with new programs or winning new business
Award suppliers new business with score 4 & 5 across the score card with cost advantage
NCR ConfidentialNCR Confidential 9
Supplier Quality Expectations
Inspection and 350 PPM plan due – Review with SQE
Clear understanding of PPAP and SPC
PPM RequirementJuly 2011: 500 PPMOctober 2011: 350 PPMOctober 2012: 200 PPM
Webcast Schedule August 10 Results of July goals and actions to
ensure October 350 PPM
October 5 2011 YTD summary, final 2011actions required
December 7 2012-2013 supplier requirements
Inspection and 350 PPM plan due – Review with SQE
Clear understanding of PPAP and SPC
PPM RequirementJuly 2011: 500 PPMOctober 2011: 350 PPMOctober 2012: 200 PPM
Webcast Schedule August 10 Results of July goals and actions to
ensure October 350 PPM
October 5 2011 YTD summary, final 2011actions required
December 7 2012-2013 supplier requirements
October 1, 2011: 350 PPMOctober 1, 2011: 350 PPM
NCR ConfidentialNCR Confidential 10
Long Term – YE2012
• Supplier Quality web portal • Supplier Approval List updated• 200 PPM
Long Term – YE2012
• Supplier Quality web portal • Supplier Approval List updated• 200 PPM
Actions for Success
Short Term – 3Q2011
• Finalize Qualification Process within NCR• India Supplier & Critical 40 supplier action plans – next steps• Finish SPC/PPAP training for top suppliers• Report card on 350 project plan• Supplier metrology requirements established and communicated • Supplier inspection plan submissions – suppliers > 500 PPM
Short Term – 3Q2011
• Finalize Qualification Process within NCR• India Supplier & Critical 40 supplier action plans – next steps• Finish SPC/PPAP training for top suppliers• Report card on 350 project plan• Supplier metrology requirements established and communicated • Supplier inspection plan submissions – suppliers > 500 PPM
Mid Term – end 1Q2012
• Desourcing process • Drawing uniformity from NCR• Supplier Metrology requirements achieved • Sampling sustainment strategy• 300 PPM
Mid Term – end 1Q2012
• Desourcing process • Drawing uniformity from NCR• Supplier Metrology requirements achieved • Sampling sustainment strategy• 300 PPM
NCR ConfidentialNCR Confidential 11
Resources and Contacts
For Supplier Resources: http://www.ncr.com/about_ncr/partners/suppliers/
Assistance with NPI, PPAP, FAI: Wagih Wazni ([email protected])Director, Global Supplier Quality Engineer
Assistance with Production Parts, IncomingInspection, SCARS, 350 PPM Plan:Michael Crutch ([email protected])Director, Supplier Quality Excellence
Overall quality issues:Robert Mele ([email protected])VP, Quality and Continuous Improvement
For Supplier Resources: http://www.ncr.com/about_ncr/partners/suppliers/
Assistance with NPI, PPAP, FAI: Wagih Wazni ([email protected])Director, Global Supplier Quality Engineer
Assistance with Production Parts, IncomingInspection, SCARS, 350 PPM Plan:Michael Crutch ([email protected])Director, Supplier Quality Excellence
Overall quality issues:Robert Mele ([email protected])VP, Quality and Continuous Improvement
NCR ConfidentialNCR Confidential 12
Q&A
Q & AQ & A