Presentation on theme: "DDEES,LLC & Full circle quality"— Presentation transcript:
1DDEES,LLC & Full circle quality Improve Your Company& Your Company’s “Problem Supplier(s)”Don Dees, PresidentFull Circle Quality, LLCth Avenue NENorman, OK 73026Cell (616)www:fullcirclequality.comwww:ddeesllc.com
2Full circle quality Introduction History: 2009, DDEES,LLC & FCQ were established in Norman, Oklahoma to provide manufacturingsupport services to manufacturing facilities in China and in North America.FCQ has provided Consulting Services, Technical Experts, & Training in areas such as:Coaching to implement & sustain Quality SystemsLEAN Manufacturing ProcessesProblem SolvingGeneral Management/Leadership ProcessesStamping, Welding, Plastic Injection Molding, Painting, Assembly, & OthersMaterial Handling, Logistics, & SourcingSales/Marketing/Service/Business DevelopmentMergers & Acquisitions & Due DiligenceFCQ has found many Permanent or Temporary Technical or Manufacturing Experts formany companies in Asia, China, & in North America.Results! FCQ clients are obtaining results of between 17 and 35 ROI.In other words, for every dollar spent implementing LEAN,they are saving 17 to 35 times this amount of money the next year.Present: 2013, FCQ continues to provide project support and services to many Companies innumerous industries in Asia, China, and North America.
3New Product Development Process Mass Production, & Kaizen FCQ Core ServicesNew Product Development ProcessStart of Production,Mass Production, & KaizenOther ServicesPro-ActiveDurability Drive Testing of New Model VehiclesGP12 Pre-Launch ContainmentAdvanced Quality Planning/PPAP & Documentation Support of New PartsReceiving Inspection PlansPortable Dimensional Analysis (CMM)Reverse Engineering (Laser Scanning) Advanced Quality Planning/PPAP & Documentation Support New Processes Quality Engineering Industrial Engineering Supplier Launch SupportRe-ActiveInspection & ContainmentThird Party Metrology (CMM Measuring, Scanning, & Problem Solving)Supply Chain & Warehouse Management of Pilot & Proto PartsSupply Chain Management (Cross Docks, Warehouses, Kitting, & In-Line Sequencing of Parts, Finished Goods, etc.)Sub-Assembly of Simple Assy’sOn-Site Technical LiaisonsContainment AvoidanceSupplier Crisis SupportContract Quality EngineeringTechnical RepresentationProcess AuditingQuality System AuditingISO/TS CertificationAuditing & Verification of Processes & Corrective ActionsProcess & Through-Put ImprovementsWeld ChecksBothTrainingConsulting ServicesProblem SolvingCoach to implement & sustain Quality SystemsLEAN Manufacturing ProcessesGeneral Management/LeadershipNew Product Launch SupportTechnical ExpertsStamping & WeldingPaintingAssemblyPlastics Injection MoldingRoboticsQualityMaterial Handling, Sourcing, LogisticsProcess EngineeringManufacturing & Plant Mgt.Sales/Marketing/Service/Business DevtMergers & Acquisitions & Due DiligenceFinance/Accounting“Headhunter Help” in Finding you Permanent or Temporary Technical or Manufacturing Experts
4Full circle quality Core services Inspection & Containment ServicesVisual Inspection (Vehicles & Parts)Defect DetectionDimensional ChecksLabel VerificationSequencing VerificationRe-Work to SpecificationFunctional TestingSoftware Re-flashingYard Sorts (Finished Vehicle)Engineered Containment TMThird Party Metrology (CMM Measuring, Scanning, & Problem Solving)Portable Dimension Analysis (FARO hard probe & laser scanning)Reverse Engineering (Converting laser scan data to IGES & CATIA)“Headhunter Help” in finding you Permanent or Temporary Technical or Manufacturing Experts for your CompanyConsulting ServicesProblem SolvingCoach to implement & sustain Quality SystemsLEAN Manufacturing ProcessesProcess & Through-Put ImprovementsGeneral Management/Leadership ProcessesNew Product Launch SupportTechnical ExpertsStamping & WeldingPaintingAssemblyPlastics Injection MoldingRoboticsQualityMaterial Handling, Sourcing, LogisticsProcess EngineeringManufacturing & Plant ManagementSales/Marketing/Service/Business DevelopmentMergers & Acquisitions & Due DiligenceFinance/AccountingOther Technical Areas
5Full circle quality Core services Engineering Services – ProductsDurability Drive Testing of New Model VehiclesGP12 Pre-Launch ContainmentAdvanced Quality Planning/PPAP & Documentation Support of New PartsReceiving Inspection PlansPortable Dimensional Analysis (CMM)Reverse Engineering (Laser Scanning)New Product Launch SupportOthersEngineering Services – ProcessesISO/TS CertificationProcess AuditingAdvanced Quality Planning/PPAP & Documentation Support New ProcessesQuality System AuditingAuditing & Verification of Processes & Corrective ActionsEngineering Services – Provide Team MembersSupply Chain & Warehouse Management of Pilot & Proto-Type PartsSupply Chain Management (Cross Docks, Warehouses, Kitting, & In-Line Sequencing of Parts, Finished Goods, etc.)Sub-Assembly of Simple AssembliesOn-Site Technical LiaisonsContainment AvoidanceSupplier Launch SupportSupplier Crisis SupportContract Quality EngineeringTechnical RepresentationThird Party Engineering & ContainmentTrainingProblem SolvingLEAN ManufacturingQuality System & Quality EngineeringTechnical Training (example Paint Process Engineering)
6Examples of Past Work Performed Actual Results from a LEAN Manufacturing Project in USA (Results after 6 Months)Successfully introduced and implemented comprehensive LEAN Manufacturing Processes across 3 Portfolio Companies (at the same time) specializing in stamping and complex welding with annual revenue of $400m. These LEAN Processes included; Toyota Production System, Standardized Operations, SQDCMRS (Safety, Quality, Delivery/Productivity, Cost, People, Revenue, and Speed) KPi Performance Metrics, Throughput Management Process, Quality Gate Launch Process for new parts, Detailed Plant Floor Layered Process Audits, Six Sigma Black Belt Process, Stamping and Welding Standards, Daily Financial Total Cost Management Tracking, and Supply Chain Development.In the first six (6) months, the annual ongoing cost savings were over $17M per year and with an additional $20M of cash generated from reducing the inventory levels.Specific Achievements include:Reduced the “Break Even Point” by 33%.Safety - Reduced OSHA Recordables by 150%.Quality - Improvements saving $5M/year (Improved PPMs by 700% resulting in reduced internal & external sorting/inspection - $3.5M savings, decreased destruct tests - $1.5M savings). ISO/TS Certifications and Audits to 100% across company.Delivery - Supply chain cost reductions of $7M/year (China sourcing, Single source scrap control, and Freight Utilization Improvements).Productivity - Increased throughput by 15% per plant. Realized 25% headcount reduction. - $6M/year savings.Cash - Instituted Inventory reduction process generating $20M Cash (70% reduction - $30M to $10M)Performance Results:Safety Frequency Rate now at a World Class Level of 1.1.Quality PPM rates today at a World Class 4 ppm.On time delivery now at 100%.
7Examples of Past Work Performed Actual Results from a LEAN Manufacturing Project in CHINA (Results after 6 Months)SafetyHave now gone over one year without any Safety Accidents in the Plant(s)Quality (Customer)Went from 1,000 PPM’s to Zero PPM’s & Zero QIR’s for over one yearWent for Last Place (#16 in 4/2011) to First Place (#1 in 4/2012) in Suzuki’s Ranking of Stamping & Welding Suppliers in ChinaWent from being on the “NOT allowed to Bid on New Work List” (because of past performance and lack of quality processes) in Q3 of 2011 to “Preferred Supplier List” in April 2012 with Suzuki, Chang An, JCI, LEAR and other Customers.Quality (Internal)Went from Checking & Repairing 300% of the parts to 0% Checking & Repairing of the parts on eight (8) totally different Final Assembly Part Numbers (IP Cross Car Beam, Seats, Steering Column Support Bracket, Radiator Assembly, Engine Tubes, Others)Delivery100% On Time Delivery for over one yearEliminated the need for a Third Party Warehouse for Finished GoodsEliminated 33% of the Inventory ($4M USD)CostROI of 17 Times what was spent to Implement LEAN ManufacturingSaved Manpower, Space, Scrap, Inventory, Needs for new Capital Equipment, Others
8How we can assist you and your Suppliers Statement of the Current Situation/ProblemYour Company receives many parts, components, and sub-assemblies from suppliers located in North America. Some of these suppliers struggle with the quality of their products delivered directly to You or to Your Tier 1 Suppliers.Suppliers that deliver parts that do not meet Your Quality Standard are put on Third Party Containment (100% inspection of each part until the parts are proven to be OK by achieving X days without a reoccurrence of the same quality issue), at the Supplier’s expense.Some of these Suppliers have been on and off of Third Party Containment over and over and over for many years.Third Party Containment “Protects the Customer”, but is also very disruptive to You and Your Tier 1 Suppliers. It causes many issues such as the need for floor space in your plant, extra warehouse space, extra inventory, FiFO issues, inefficiencies in indirect labor functions, other cost issues.For some “Problem Suppliers”, Third Party Containment is a “Band Aid”, and some of these “Problem Suppliers” have not been able to find and correct the real root cause(s) for shipping parts that do not meet Your Quality Standards; and therefore can not eliminate the very frequent requirement for Third Party Containment.North American Market AnalysisThe North American Automotive OEM Production Forecast is seen as to continue to grow at about 10% per year for the next five (5) years, getting back to the 16M level by 2016cy.The larger impending problem is that this additional NA volume will cause the “Problem Suppliers” to have even more quality spills. WHY? Many of these “Problem Supplier Companies” do NOT have: Strong Leadership, Experienced Workforce, Mature Quality Processes, Mature Quality Systems, Ability to Problem Solve, Training, LEAN Manufacturing Systems, etc.; consequently; will have many more Quality Spills that will continue to have negative effects on Your Production in North America.Your future outlook is to continue with more Third Party Containment Activities
9How we can assist you and your Suppliers Suggested “Pro-Active” StrategyA. Assign Supplier Plants to us to manage using your Product Development Process:Advanced Quality Engineering ActivitiesAdvanced Quality Planning/PPAP & Documentation Support of New PartsAdvanced Quality Planning/PPAP & Documentation Support New ProcessesRun at Rate Studies and VerificationPilot & Proto-Type BuildsGP12 Pre-Launch ContainmentReceiving Inspection PlansPortable Dimensional Analysis (CMM Laser Scanner) of PartsLaunch Support of new productsOthersB. Let us help you launch new Products with “Good Parts” from your Suppliers
10How we can assist you and your Suppliers Suggested “Re-Active” StrategyA. Phase #1 of the Our Process usually takes six (6) months and includes:Step #1 Understand the current situation by auditing the Supplier’s Quality Process, Quality System, LEAN Manufacturing Capability, and ability to Problem Solve.Step #2 Develop a Kaizen Team of (4) full time people to work for Our Advisor; including a person from Shop Floor Quality, Engineering, Maintenance/Tooling, Office Quality TS/ISO Person.Step #3 ContainmentStep #4 Improve FTQ to eliminate ContainmentStep #5 Work with and Teach this Kaizen Team the following:Quickly teach the Supplier how to deliver parts that meet your Quality Standard. (Containment).Teach Real Problem Solving on the Shop Floor.Teach & Install Simple Quality Processes & Tools on the Shop Floor in these Work CellsTeach & Install Simple Lean Manufacturing Tools on the Shop Floor in these Work CellsB. Objective of Phase #1 of Our Process:Perform with a World Class Quality Level of less than 15 PPM delivered to You for the entire twelve (12) months after completion of Phase #1.Improve FTQ to eliminate ContainmentThe 4 members of the Kaizen Team will have an excellent understanding of Problem Solving, Quality Tools & Processes, and Simple Tools of LEAN Manufacturing.Reduction in the costs of poor quality for both the supplier and You the customer(s).ROI of 17 Times what was spent to Implement Quality/LEAN Manufacturing
11How we can assist you and your Suppliers Third Party Metrology (Laser CMM) CapabilityProvide Your Engineering Team with Rapid CMM Data Using the Latest Version Faro Platinum Measurement ArmFaro Arm Has 12 Foot Reach Capability7 Axis FlexibilityAccuracy is + or – in (0.073mm)Does Not Require Robotic ProgrammingSystem is Completely Portable & WirelessProvide Reverse Engineering Capability Using Faro Laser Scan Arm V3 with CAM2 Measure X SoftwareLaser Will Scan 19,200 Points Per SecondAccuracy and Repeatability is + or – in (0.036mm)Creates a Point Cloud for Comparison to Design Data in MinutesData can be returned to customer in IGES or CATIA file formatsUses:Rapid measurement and comparison to CAD dataEngineering dimensional change verification and documentationLaunch Build Events for immediate fit confirmationVerify supplier dimensional reports during launch or part submissionsDocument and verify emergency tool, fixture or gauge changesDocument soft part dimensions that can not be measured by CMMAnnual tool, fixture and gauge certificationsAdvantages:Equipment and operator can be quickly dispatchedParts or assemblies can be accurately measured in minutesReports are automatically generated and printed or edData can be returned in IGES or CATIA format which can be easilymerged with existing CAD drawing files.
12Examples of LEAN TRAINING MATERIALS What does a truly Great Company with Lean Manufacturing look like?All employees of our company help us move closer and closer to “True North” every day. “True North” can never be totally achieved, however, everyone works together and strives toward the following:Zero (0) Safety AccidentsZero (0) PPM Rate of Quality100% on Time Delivery to CustomersLowest Cost Producer in our IndustryZero (0) Absenteeism, Zero (0) Employee Turnover, Many Suggestions to Improve, People Working Together as a True TeamInnovative & Flexible Organization that can Move Quickly
13Examples of LEAN TRAINING MATERIALS What does a truly Great Company with Lean Manufacturing look like?When a problem occurs (Safety, Quality, Delivery);They find the real root cause and implement a permanent countermeasure/solution that will never let this type of problem happen again!Actions are taken to permanently change the old method of doing business so that the company never has to re-fix the same problem again!They seek other places this countermeasure/ solution will resolve other similar issues. This ‘read across’ helps speed up improving the company and also helps our people to learn across the entire company.They Write Down and Standardize the New Best Process/Method/Procedure
15Third Party Containment Quick true story....we went into a JCI plant in Alabama that had over 100 3rd party inspectors/rework people with three (3) different companies (additionally with all of the fixed cost of supervisors, etc.). They were 200% and 300% inspecting/reworking parts because of poor performance of the 3rd party companies.We installed standardized work, got to only 100% inspection/rework, and solved many of their quality problems for them (by finding the root cause) and got this down to only 30 inspectors/reworkers. Their customers are also very happy with them now because they are really holding "clean points" for countermeasures and/or 3rd party inspection containment.We charged them the same hourly rate per person but saved them millions of dollars per year through LEAN Manufacturing of the Third Party Containment Activities.
16Why are we unique?When the Quality Engineer is combined with our trained inspectors and our manufacturing quality processes, the results have always been impressive. People are accountable, deadlines are met, data is accurate. With each project we provide the following…Quality Engineer lead inspection teamsDetailed work instruction with customer approvalInspector training and managementProduction process material flowNon-conforming material control2nd level engineer audit of all completed totes/racks/partsDaily customer data reporting by shiftThe bottom line is always cost. The level of service achieved by the addition of our Quality Engineer is typically at no additional cost, however, the value that is provided to this experience is immeasurable! In all cases, the Quality Engineer provides our guarantee that we become the one supplier our customers do not have to manage.
17FULLCIRCLEQUALITY, LLC DDEES, LLC &FULLCIRCLEQUALITY, LLCDon DeesCEO & PresidentConsulting Company of Professionals that assists Chinese and NA CompaniesQuality & LEAN ManufacturingThird Party Inspection & Containment of Suspect Poor Quality PartsTrainingTechnical AssistanceContract Employees“Headhunter” AssistanceVice President of QualityVice President of Manufacturing$1 Billion savings per year from improvements in warrantyInstituted Commonization of Vehicle Sub-Systems and Components; thus saving DaimlerChrysler an additional $2 Billion per year.Proven Lean Operations & Implementation Experience:(Trained from the “floor up”)Trained by Toyota in Japan (Best Japanese TPS trainers in the World) not by book, theory, or consultants.Applied Lean Knowledge by starting up New Toyota Plant. (1st Year it won JD Power)Ground up plant launch: Toyota Hiring Process, Developed the TPS Training & Trained the first 600 TM’s, Launched the Plants(2), Improved NA Suppliers w/TPSI have implemented these LEAN/TPS tools in OEM’s (GM, DaimlerChrysler & Hyundai), Supplier Companies (BHM Technologies, China), and NON-Automotive Companies (Deere, Cat & China Suppliers); in Both Union & Non Union Environments and in Countries & Cultures across the World.Proven Ability to Find Talent, Develop Leaders, Teach & Coach, Develop a Great Team, and Get ResultsMultiple Success Stories in many different Cultures & CountriesExperience with aspects of corporate financing & restructuringSuccessful in New Business Start-upsSuccessful in Sales & Marketing USP ProductsSuccessful in Innovating New Products & New MarketsExperience in B2B, B2C, Wholesale, Retail, Dealerships & AftermarketCEO & PresidentPrivate EquityThree (3) Portfolio CompaniesTen (10) Manufacturing Plants$400M in Sales RevenueAnnual ongoing cost savingsof over $17M per year$20M of cash generated from reducing inventory levelsNew Product & MarketsTop American LeaderDeveloped the TPS Training Materials & Trained the TM’sDirector of Paint EngineeringPlant ManagerExperience includes:USA & CanadaGermanyEnglandJapanVice President of Quality & ServiceHyundai Quality improved to the top#1 non-luxury vehicle nameplateStarted Service Contract BusinessStarted Certified Used Car ProgramDonald (Don) DeesMobile: +1 (616)