Boilerup Consulting Restructuring supply chain & assuring sustainable quality

25 Pages·2014·1.57 MB·English

Restructuring supply chain &
assuring sustainable quality

Automek Inc. & Agile Electric
Boilerup Consulting
Aniesh Aravind
Bharat Varshney
Shantanu Agrawal
Andrew Tye
Agenda for Today
OUR COMPANY
Problem
Recommendation
Analysis
Risk Mitigation
Implementation
Question & Answer
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We are encountering resistance
PROBLEM
Problem Recommendation Analysis Risk Mitigation Implementation
Downstream customers experiencing
failure of products supplied by Agile

• Urgency: more failures threatening to stop operations
• Importance:
• High cost of recall and shutdown
• Direct impact on revenue streams and business relations

• Objectives:
• Contain current issues at minimal cost
• Address root cause to resolve problems now and in the future

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Let’s restructure our supply chain!
RECOMMENDATION OVERVIEW
Problem Recommendation Analysis Risk Mitigation Implementation
Replace Tier 3 & 4 suppliers using Automek’s
global network
Redefine contracts and invest resources in Agile
Transfer penalty costs levied by OEM to Agile
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Underlying causes downstream
TIER 2 ROOT CAUSE ANALYSIS
Problem Recommendation Analysis Risk Mitigation Implementation
Received parts didn’t go
through SMT process
Not involved with sub-
suppliers to ensure
Agile lacks skill set to
TS16949 requirements
manage sub-suppliers
No support to suppliers in
e
developing process flow
l and control plan
i
g
Assumed Automek bore
A
risk of suppliers they
approved
Communication gap
between Automek & Agile
Didn’t strictly follow APQA
process with suppliers
Visual inspection only for
quality check
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Underlying causes upstream
TIER 3 & 4 ROOT CAUSE ANALYSIS
Problem Recommendation Analysis Risk Mitigation Implementation
Sub-supplier should be
TS16949 certified
No process to trace

L incoming parts
P
C
No stringent regulation to Sub-suppliers should
E
ensure quality parameters
preferably have core

/ business in automotive
Unsatisfactory overall

L effectiveness of process industry
P control system
I
B Insufficient management
involvement in action Sub-supplier management
implementation
should be actively involved
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Who really cares?
STAKEHOLDER ANALYSIS
Problem Recommendation Analysis Risk Mitigation Implementation
Increasing Relevance
BIPL ECPL Agile Automek OEM
Increasing Cost
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Taking responsibility
CLEANUP ANALYSIS
Problem Recommendation Analysis Risk Mitigation Implementation
OEM
Incurs losses due to
failures and delays

•Set a Precedent going forward.
Automek
•Meet Contract
Charged by OEM for their
losses +losses due to •Reduce Financial Losses
production stoppages
•Root Cause was with Agile

Agile
Should Agile bear some
charges?
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What really matters?
IMPORTANT CONSIDERATIONS
Problem Recommendation Analysis Risk Mitigation Implementation
Quality
Implementation Time
Assurance
Supply
Implementation Cost Chain
Relations
Turnaround Future Product
Time Portfolio
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What are the options?
OPTION ANALYSIS
Problem Recommendation Analysis Risk Mitigation Implementation
Future
Quality Implementation Changeover Supplier Turnaround
Product
Assurance Time Cost Relations Time
Portfolio
+ + +- + + -
3
Option 1
+- +- - + + +-
1
Option 2
+ - - - - +
-2
Option 3
- Option #1: Change sub-suppliers
- Option #2: Increase sub-supplier margin
- Option #3: Change primary supplier
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