AIIM pres

Slide1: 

The benefits of document management for a multi-tier supply network

Slide2: 

To explain: How the automotive industry, as a multi-tier supply network, wrestles with documentation during their concept-to-launch process How this struggle impacts quality, launch readiness and warranty How document management and information technology is being applied to address this multi billion dollar dilemma Objective

Slide3: 

“14 semi trailers of documentation per vehicle model” (Peter Rosenfeld, Sr. VP of Procurement, DaimlerChrysler)

Slide4: 

“$6.2 billion per year in supply chain labor costs to prepare documentation” (Automotive Consulting Group 2000)

Slide5: 

“$6 billion per year moving quality documents throughout the supply chain…” (AMR Research 2001)

Slide6: 

“…$16.5 billion every year due to a critical lack of communication around new product development” (PWC 2003)

Slide7: 

“$8 billion warranty costs” (North America) (AMR Research 2000)

Slide8: 

Additional factoids… About a car About vehicle brand owners About the supply network About the methods of bringing a new vehicle from concept to production About the opportunities and goals for improvement

Slide9: 

About a car… Unique parts Supplier sites Concept-to-launch time

About vehicle brand owners…: 

1977 2000 Number of OEMs 27 14 7 8 2 — 6 13 43 Renault/Nissan Volkswagen AG DaimlerChrysler Hyundai Fiat Auto PSA Peugeot Honda Suzuki Mitsubishi BMW Daewoo Mazda AutoVaz Isuzu Others 15.7 12.8 9.6 8.8 8.7 8.7 4.6 4.5 4.5 4.3 3.3 2.8 2.1 2.0 1.7 1.2 1.0 4.7 . About vehicle brand owners… Approximately 40 Vehicle Brand Owners and decreasing 50+ million vehicles per year global production and increasing 2000 unique vehicle models and increasing Outsourcing design and construction Supplier rationalization

Slide11: 

About the supply network… Nearly 500,000 people involved in the process (design and process engineering, quality, program management, purchasing, etc.) 50,000+ manufacturing sites in North America Increasingly design responsible Increasing responsibility for costs associated with poor quality 80% of quality related costs associated with sub tier 1 suppliers

About the product development process…: 

About the product development process… Advanced Product Quality Planning (APQP) was designed to help deliver benefits to the entire supply chain “Promote early identification of required changes” “Avoid late changes” “Provide quality product on time at lowest cost” “..Designed to be a ‘before-the-event’ action, not an ‘after-the-fact’ exercise” Source: AIAG APQP and FMEA Reference Manuals

APQP Problems: 

APQP Problems Limited resources to manage large supplier relationships Limited supply chain knowledge beyond direct Tier 1 relationships Slow problem identification and resolution Few measurements and no controls over supplier APQP performance PPAP process is focused at the end of the Product Development cycle Customer-Side Problems Receive late / inadequate customer information such as requirements, design changes and date changes Multiple customer-specific requirements Limited ability to provide feedback to customer – one way communications pipeline Limited APQP expertise and resources to create manage and distribute required documentation Supplier-Side Problems

The APQP Paper Chase: 

Supplier Customer The APQP Paper Chase Cross-Functional & Cross-Enterprise Collaboration Required For Success

APAP documents: Volumes and Flow: 

APAP documents: Volumes and Flow 80% of quality problems blamed on sub-tier suppliers

Automotive Supply Function: 

Automotive Supply Function Transformers Materials Designers/Integrators Most Program / Design Control Responsibility is here... Most Valuable Data in the Supply Chain is here... Nº of Companies

Supplier readiness process: 

Supplier readiness process

Goal: Reduce time to market: 

Goal: Reduce time to market Launch Design Released Concept to Production Supply Chain Readiness

Goal: Increase visibility with direct suppliers: 

Goal: Increase visibility with direct suppliers Today, companies have visibility to their direct suppliers and in cases of direct sourcing, some of their tier 2 suppliers Further down in the supply network, there is no viability to risk

Goal: Drive visibility through the network of suppliers: 

Goal: Drive visibility through the network of suppliers Improved visibility throughout the supply network, allows customers to identify risk (quality, timing) much earlier in the process

Benefits…: 

Benefits… Better Customer ↔ Supplier communication Reduced non-value added time and costs of processes Risk Management Product development “best practices” pushed deep into lower tiers Faster access to product & project data for advanced analysis of cross-functional and cross-enterprise process performance By Program By Platform By Vehicle By Launch Readiness/Risk By Commodity By Supplier etc.

Solution characteristics…: 

Solution characteristics… Web-based solution for cross-enterprise product quality team collaboration—improve risk management without adding people One online workplace for up-to-date program information—minimize supplier burden of checking multiple customer sites Online access to: APQP program requirements (standard & customer / program-specific) Quality gates Planned visits Status reports Changes Externally hosted, internally integrated Allow customers to use their choice of systems for internal PDP & APQP documentation / program management

Powerway.com Basics: 

A project in Powerway is, in general, the trade relationship between a customer, supplier, and a part Multiple parts may be added to a project to support part families The customer and supplier part(s) are both tied to the project, building a relationship between the customer part number and the supplier part number Powerway.com Basics Project-Centric Environment

Powerway.com Project Management: 

Powerway.com Project Management Powerway.com Home Page – Pushed information Project List – How to manage Projects Menu – Brief description of project entities Project Information – Project, customer and supplier information Project Summary – Project Status and Project Matrix views Project Parts – Part Information and History Project Methodology – Managing Quality Gates (MPC Phases) Documents – Managing and uploading documents Team List – Utilizing the project team members Subprojects – Examples Collaboration Tools – Tasks, Meetings and Bulletin Boards Project Security – Manage viewing and updating privileges Reporting – Health Checks, Project Reports, etc.

Documents: 

Any documents related to a project may be submitted for review Methodology Required documents in a Quality Gate Optional and Supporting documents Adobe Acrobat viewing technology supports over 200 different file types Documents

Slide26: 

The automotive industry is a multi-tier supply network wrestling with documentation during their concept-to-launch process This struggle impacts quality, launch readiness and warranty Document management and information technology is being applied to address this multi billion dollar dilemma and transform the way an entire industry engages in activities required to bring new product to market Summary…

Slide27: 

Document management benefits a multi-tier supply network Customer Requirements Status Change Alert Conclusion…

Slide28: 

Document management benefits a multi-tier supply network