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Meeting Global Supplier Performance Expectations _____________________________

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Warranty. Global Working Conditions. Life Sciences. Environment ... Reduction in Chinese import custom duties for auto parts: from 43.5% (1992) to 10% (2006) ... – PowerPoint PPT presentation

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Title: Meeting Global Supplier Performance Expectations _____________________________


1
Meeting Global Supplier Performance
Expectations _____________________________
  • J. Scot Sharland
  • Executive Director
  • Automotive Industry Action Group
  • DCBA 2007 Chinese Suppliers Networking Event
  • 26 October 2007

2
Agenda
  • AIAG at-a-glance
  • Chinese Suppliers vs. Global Supplier Performance
    Expectations
  • AIAG in China Know-How, Experience to Help
    Suppliers Meet / Exceed Global Performance
    Expectations

3
AIAG at-a-glance
4
Streamlining Industry Processes
  • Supply-chaining is a method of collaborating
    horizontally among suppliers, retailers, and
    consumers to create value.
  • The more these supply chains grow and
    proliferate
  • The more they force the adoption of common
    standards between companies,
  • The more they eliminate points of friction at
    borders,
  • The more the efficiencies of one company get
    adopted by the others,
  • And the more they encourage global
    collaboration.

Thomas L. Friedman, The World is Flat A Brief
History of the Twenty-First Century
5
Who is AIAG?
AIAG is a unique not-for-profit organization
where retailers, automakers, suppliers and
service providers work collaboratively to drive
cost and complexity from the supply chain via
global standards development and harmonized
business practices.
  • Globally recognized trade association founded in
    1982
  • 1,100 member organizations
  • 53 full-time staff
  • 3 Senior Executive OEM loans
  • 650 Industry Volunteers providing subject matter
    expertise
  • Offices in Southfield, Michigan and Shanghai,
    China

6
AIAG 3 Dimensions of Value
  • AIAG facilitates global industry consensus to
    resolve supply chain issues
  • Common business practices
  • Systems Interoperability (vertical / horizontal)
  • AIAG provides industry voice and presence at
    International Standards Organizations
  • AIAG ensures effective communication delivery
    of consistent quality requirements, guidelines,
    education and training to the extended supply base

7
Board of Directors
8
Global Alliances
9
Business Units
  • Supply Chain
  • Materials Management Steering Committee
  • Electronic Commerce Steering Committee
  • Quality
  • Quality Steering Committee
  • Collaborative Engineering Product Development
    SC
  • Truck Heavy Equipment Steering Committee
  • Life Sciences
  • Health Focus Group
  • Safety, Health Environmental Steering Committee
  • International
  • China / India

10
Supply Chain Business Unit
  • Automatic Identification
  • Focus Standards and guidelines for bar code
    labels, direct part marking, and RFID
  • Materials Management
  • Focus Business practices and standards relating
    to improving flow of material throughout the
    supply chain
  • Customs/Regulatory Compliance
  • Focus Business practices and standards relating
    to compliance with regulatory requirements and
    facilitating trade while meeting customs mandates

11
Quality Business Unit
  • Includes
  • Quality Steering Committee
  • Quality Task Force
  • Collaborative Engineering Product Development
  • Truck Heavy Equipment
  • Warranty
  • Global Working Conditions

12
Life Sciences
  • Environment
  • ELV - IMDS
  • REACh
  • Health
  • Focus Group to Steering Committee
  • Top three priorities
  • Practice Transformation
  • Wellness
  • Performance Specification
  • Safety

13
  • China Sourcing vs.
  • Global Supplier Performance Expectations

14
Automotive Growth Opportunity
60 of growth from 9 emerging markets
15
2nd Largest Auto Market and Growing Fast!

16
Chinese Exported Auto Product Auto Parts
17
The Industry Increasingly Sources in Low Cost
Countries
Source Eye for Transport, Sourcing in low cost
countries, 2006
18
Major Risks
19
Challenges to Auto Suppliers in China
  • Raw material pricing volatility
  • Appreciation of Chinese currency profit erosion
  • Supplier financial solvency issues constraint
    next generation program funding
  • Production scalability to support volume growth
  • Protection of intellectual property

20
Challenges to Auto Suppliers in China
  • Competition is Intensifying
  • Reduction in Chinese import custom duties for
    auto parts from 43.5 (1992) to 10 (2006)
  • Incumbent suppliers in North America are NOT
    abdicating their current business/market share
  • OEMs are contracting their Tier-1 supply base
    favoring larger more strategically capable
    global players
  • Quality performance shortfalls/surprises despite
    ISO/TS 16949 certification
  • Lack of infrastructure, EDI and logistics
    experience compromise GLOBAL On-Time delivery
    performance

21
Supplier Performance Expectations
  • Innovation
  • Engineering competence
  • Prototyping / tooling expertise
  • e-RFX know-how and Web based tools
  • Awareness of patents rights

22
Challenges to Auto Suppliers in China
  • Bottom Line
  • Chinese Suppliers MUST meet / exceed the
    OEMs emerging Global Supplier Performance
    Expectations!

23
Supplier Performance Expectations
  • The single MOST IMPORTANT Performance
    Expectation
  • QUALITY

24
J.D. Power and Associates 2007 Initial Quality
Study SM (IQS)
2007 Nameplate IQS Ranking Problems Per 100
Vehicles
25
AIAG in China Know-How Experience to help
Suppliers to Meet / Exceed Global Performance
Expectations
26
AIAG China Initiative
27
Nurture Relationships with Various Chinese
Organizations
28
Collaboration MoUs Signed Since April 2006
  • Info exchange
  • Auto ID Forum
  • Info exchange
  • Supply chain forum
  • e-Commerce
  • Info exchange
  • CCC
  • Supplier Gap Assessment
  • DCX and Ford purchasing team
  • AIAG experts team
  • Pilot grogram for 6 suppliers
  • Financial support from CQ city
  • Identify and close the Gap
  • Info exchange
  • Technical workshop
  • Supply chain forum
  • Info exchange

29
AIAG- China Products Services
  • Quality ISO/TS 16949, Quality Core Tools
    Training/Manuals FMEA, SPC, MSA, EPS
  • NA-OEM Requirements Training/Manuals APQP,
    PPAP, Special Processes
  • Supply Chain Development Training for MMOG,
    Lean Manufacturing
  • EDI Training on EDI
  • Working Conditions Training on Local Labor Laws
  • GAP Assessment ISO/TS 16949 Readiness

30
(No Transcript)
31
AIAG-China works with global training partners to
provide consistent content delivery...
WORLDWIDE !
32
AIAG Training Available in China
  • Lean and Six Sigma Courses
  • Non-Certification
  • Lean Manufacturing Workshop
  • Lean for Executives and Champions
  • Lean Project Team Leadership
  • Lean Tools Overview for Practitioners OEE TPM
    SMED MP
  • Understanding Workplace Organization 5S
  • Value Stream Mapping (VSM) for Lean
  • Six Sigma for Executive and Leadership
  • Six Sigma Champion
  • Six Sigma Green Belt
  • Six Sigma Black Belt (Combined with Project)
  • Note All of above courses are available for
    on-site training.
  • For more information including available course
    dates, contact Omnex Shanghai Office at (86 21)
    6267 8160, 6267 8360 or e-mail info-cn_at_omnex.com
  • Quality-Related Courses
  • Certification
  • RABQSA-Certified ISO 90012000 Lead Auditor
    Training with AIAG ISO/TS 169492002 Supplier
    Auditor Certification
  • Non-Certification
  • Understanding ISO/TS 169492002
  • Fundamentals of Internal Quality Auditing to
    ISO/TS 169492002
  • Advanced Product Quality Planning (APQP)
    Control Plan/Production Part Approval Process
    (PPAP)
  • Failure Mode and Effects Analysis (FMEA)
  • Statistical Process Control (SPC) (2nd Edition)
  • Measurement Systems Analysis (MSA)
  • For more information including available course
    dates, contact Plexus China Co. in Shanghai at
    (86 21) 6867 1020 or Shenzhen at (86 755) 8161
    5171. Visit www.plexuschina.com.cn or e-mail
    info_cn_at_plexuschina.com.cn

33
AIAG Training Available in China (Con't)
  • Materials Management
  • Non-Certification
  • Introduction to MMOG/LE
  • Using the Global MMOG/LE as a Continuous
    Improvement Tool
  • For more information, including available course
    dates, contact QAD Shanghai Office at (86 21)
    5047 8600 ext. 6528 or e-mail gcg_at_qad.com
  • Working Conditions Training
  • For more information please contact Intertek at
    (86 21)6120 6565 ext. 5214 or 5524, e-mail
    viza.ye_at_intertek.com or j.j.chen_at_intertek.com
  • Electronic Data Interchange (EDI) Course
  • For more information including available course
    dates, contact Compuware-Covisint China at (86
    21) 62479222 ext. 205 or e-mail
    michael.zhu_at_compuware.com
  • Heat Treatment System Assessment (HTSA) Course
  • Effective Problem Solving (EPS) guideline Course
  • Gap Assessment
  • For more information including available course
    dates, contact UL-CCIC Company Limited at (86 21)
    5292 8665 or e-mail iso.sh.cn_at_cn.ul.com

For course description and details, view and
download the AIAG China Training Catalog at
http//www.aiag.org/files/China_catalog.pdf
34
For more information
Please visit www.aiag.org or www.aiag.com.cn
(Chinese Web site) Or
contact admin_at_aiag.com.cn or
ychen_at_aiag.com.cn Tel. (8621)
50815716
35
Thank You!
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