en pressrelease gm 1175181932

GME Quality Assurance Management Our Turnaround in Quality: 

GME Quality Assurance Management Our Turnaround in Quality Peter G. Dersley, Vice President GME Quality

In the 90’s: 

In the 90’s Opel’s reputation for Quality – no longer true Profit maximization at the expense of quality The decline of a brand GME at a crossroads GME’s quality ratings were not good

Approaching the present: 

GME reports back impressively Product again takes center stage Strong new models from Rüsselsheim Success only a question of time if GME maintains this course GME quality recovery exceeds expectations Approaching the present

Quality pays off – less warranty claims: 

Quality pays off – less warranty claims 1 Year old cars 65 % 66 % Number of customer complaints * 3 Year old cars * 3 Years: Model year 2006 Prognosis based on selected warranty data (high mileage cars)

Opel among the best in dealer satisfaction: 

Opel among the best in dealer satisfaction Source: DSI Study Germany – FAW University Bamberg (5 = best score/very satisfied) Satisfaction – Overall 2004 2005 2006 – with quality – with model line-up OPEL

Continuous progress in bi-annualCar Check Study : 

Continuous progress in bi-annual Car Check Study Source: Bi-annual Car Check Study / Customer Complaint Index by Model Opel Opel Opel 2003 2000 2005

Gold Medal for the Meriva in the annual German TÜV Report 2007: 

Gold Medal for the Meriva in the annual German TÜV Report 2007 Meriva scores best among 113 cars across all segments The majority of the GME models improved significantly vs. last year’s report . . . . . . 113 Source: TÜV Report 2007 – Germany

Yes, GME quality recovery has exceeded public expectations : 

Yes, GME quality recovery has exceeded public expectations What has changed? What has driven the turnaround in GME quality performance?

Transition process in quality awareness: 

Leadership attitude: What must I do to “be the best”? Transition process in quality awareness Role/ Responsibility Systems/ Processes Culture: Worrying about quality Culture: Worrying about quality Leadership attitude: What is the minimum I must do to stay out of trouble? Role/ Responsibility Systems/ Processes

Transition process in quality awareness: 

Transition process in quality awareness Step 1 Provision of prerequisites Step 2 Enable transition People involvement Capable organizational structures Capable business processes Reasonable resources Clear targets and objectives Leadership involvement Coaching and support No compromises, no excuses Customer orientation

Quality is defined by customers’ expectations: 

Quality is defined by customers’ expectations Fundamental dimension of quality: Workmanship and finish Freedon from faults Reliability/durability Perceptual quality

Implementing the GM Global Quality System: 

Implementing the GM Global Quality System Manufacturing Supplier Development Aftersales Comprehensive approach covering all areas Objective World-class quality

First priority was the improvement of initial quality delivered to our customers: 

First priority was the improvement of initial quality delivered to our customers 1. Rapid Improvement 2. Quality Launches Today Model Year Warranty Claims Past Setback in quality with model launches Minor Improvement

Structured problem resolution and tracking process for rapid improvement: 

Structured problem resolution and tracking process for rapid improvement Prioritization of problems Personal accountability Rapid decision making Carline specific action plans Tracking and alert system Process control Cornerstones of the GM-PRTS System Lessons Learned Implementation Solution Feedback Confirmation Root Cause Problem Detection

Structured problem resolution and tracking process for rapid improvement: 

Source: GM Global Problem Resolution Tracking System (PRTS) Higher problem solution throughput Structured problem resolution and tracking process for rapid improvement Continuous lead-time reduction until improvement implementation more than 2000 p.a. Four times faster Objective

GM Global Launch Process to ensure production readiness: 

-1 -7 -6 -5 -4 -3 -2 GM Global Launch Process to ensure production readiness Traditional Industry Approach Start of production Pilot 1 Pilot Line Pilot 2 Pre-Prod. Plant Line Starting late Late plant involvement No integrated approach Months prior to SOP High quality risks through ramp-up of production

Significant improvement in launch qualityStart-up warranty blips after launch: 

Significant improvement in launch quality Start-up warranty blips after launch Introduction Global GM Launch Process Quality level @ run-out of predecessor Launch peak-successor Recovery to previous quality level Warranty Cases Source: GME warranty system – total Europe data / Vehicles 2 months in service

Zero defect approach through GM-Global Manufacturing System (GM-GMS): 

Implemented in all assembly plants Zero defect approach through GM-Global Manufacturing System (GM-GMS) People Involvement Standardization Build-In-Quality Short Lead Time Continuous Improvement Elements Product quality standards Manufacturing process validation In-process control & validation Quality feedback / feedforward Quality system management Fundamental GM-GMS principles Source: GM Global Manufacturing System (GM-GMS)

Quality Andon System at each work station to ensure Build-In-Quality: 

Quality Andon System at each work station to ensure Build-In-Quality Correction Andon Cord Previous production step Don’t accept any defects Don’t pass any defects Prevent Defects Following production step Source: GM Global Manufacturing System (GM-GMS)

In-line quality checks according to the GM Standardized Inspection Process (SIP): 

In-line quality checks according to the GM Standardized Inspection Process (SIP) Body Shop End of Line Check Dyn. Vehicle Testing Water Test Final Check Squeak & Rattle Test Audit Shipping Check Pre-Delivery Check (Dealer) Paint Shop Assembly Vehicle delivery to our customers Source: GM Global Manufacturing System (GM-GMS)

Voice of the Customer Wall in each GME Plant: 

Voice of the Customer Wall in each GME Plant External Quality Results > Key Metrics Follow up on details we need to work on

Implementing the GM Global Quality System: 

Implementing the GM Global Quality System Manufacturing Supplier Development Aftersales Comprehensive approach covering all areas Objective World-class quality

GM Global Supplier Quality Improvement Process: 

GM Global Supplier Quality Improvement Process 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 Escalation Steps Problem Resolution Quality Planning Time Line Start of production

Two metrics confirm improved supplier quality: 

Two metrics confirm improved supplier quality Supplier caused quality disruptions Source: GM Global Quality Tracking System (GM-GQTS) - 94 % NOK parts per million delivered - 87 %

Implementing the GM Global Quality System: 

Implementing the GM Global Quality System Manufacturing Supplier Development Aftersales Comprehensive approach covering all areas Objective World-class quality

Paradigm shift: Use potentials in product design: 

Paradigm shift: Use potentials in product design Reactive Design Quality Predictive Design Quality Quality Tested In Evolving design requirements Extensive design rework Product performance by ”build and test” Performance & “producibility” – problems fixed after product in use Quality Designed In Disciplined CTC flowdown Controlled design parameters Product performance modeled and simulated Designed for robust performance & “producibility” From To

Paradigm shift in product design and development: 

Paradigm shift in product design and development In the 90’s – Fix Initial Quality Problems Current Engineering group established Statistical problem solving introduced 2000’s – Robust Design (Quality in development) Focus on Long Term Quality and Perceptual Quality Design For Six Sigma Improved validation Quality function verifies design

Vehicle Line Executive Team: Vital for fast and balanced problem-solving: 

Vehicle Line Executive Team: Vital for fast and balanced problem-solving Full responsibility for project deliveries Makes key trade-off decisions Core VLE Team Extended VLE Team Quality

Perceptual Quality Process: 

Quality means more than just defect free cars Perceptual Quality Process Styling (Harmonious flowing lines and contemporary) Materials (Organic-feel, harmonious and practical) Ergonomics (Comfortable and understandable at 1st glance) Functionality (Usable space as well as Surprise & Delight) Good Fit & Finish (Attention to detail and sturdiness)

Perceptual quality... when the senses pipe up: 

Perceptual quality ... when the senses pipe up The new Corsa – a class of his own Car of the Year 2007 (What Car , UK) Best Small Car (ADAC, Germany) Family Car of the Year (Belgium) Autobest 2007 Award (Central / Eastern Europe) Topauto 2007 Award (Jury: 140 Journalist) ... and others

Implementing the GM Global Quality System: 

Implementing the GM Global Quality System Manufacturing Supplier Development Aftersales Comprehensive approach covering all areas Objective World-class quality

Direct customer feedback to the dealer: 

Direct customer feedback to the dealer All customer verbatims are scanned and provided in the Aftersales database. Dealer

World-class quality approach: 

World-class quality approach Manufacturing Supplier Development Aftersales Next Steps / Opportunities

World-class quality approach: 

Optimization of ... Production Systems ... Design Systems World-class quality approach Inspection and Repair Function Orientation Problem Prevention > Minimize in-process defects Perfection > Zero in-process defects > Fulfillment of customer expectations Early 90’s Industry Average Today Improvement of quality and customer satisfaction Our objective GM Quality System