AE OPERATIONS Supplier Information on Changed Quality Process

Supplier Information on Changed Quality ProcessAE OPERATIONS

Outline

� Introduction

� Changes for the suppliers

� More information & Johnson Controls contacts

Johnson Controls, Inc. - INTERNAL2

Introduction

In this information package we

� inform you about the changes you will experience in the quality process due to our transition to SAP for our logistics, manufacturing and operations functions.

� provide details on training material to support you in the interaction with Johnson Controls facilities.

� confirm Johnson Controls contacts that will help you with any question.


Outline

� Introduction




Overview of two most important changes

1. An interactive PDF (iPDF) to support the problem-solving (8D report) process between Johnson Controls and its suppliers.

2. The removal of the 100 euro admin fee in the supplier chargeback process (SCB) and the introduction of a more transparent Issue Managing Cost process based on the degree of impact of the Supplier issue to JCI plant.

3. The MQR process will be handled by SAP which means that in the future suppliers get an automatic generated email and we ask you to fill out a suppliers get an automatic generated email and we ask you to fill out a Quality Roadmap template (in excel) for the MQR meeting.

5 Johnson Controls, Inc. - INTERNAL

An interactive PDF to support the problem-solving process

� At the moment the problem-solving process (8D report) is started from IRIS system by sending an email with a PDF with the issue details and an empty excel form that the supplier has to fill out. This excel sheets is then send back manually and forth by e-mail between the issue originator at Johnson Controls

Today Tomorrow� In the future the supplier will get an

email notification with the iPDF attached. This iPDF contains the issue details and an integratedinteractive 4D / 8D part. All mandatory input fields are clearly marked. The iPDF can be send back to JCI by only clicking a button inside the document.

� The option to attach documents

Benefits & impact� iPDF template is following the VDA

standard.

� User friendly format (all mantatory fields are marked).

� Easy resending (Automated) of the iPDF document by clicking only a “send“ button inside the iPDF.

� Option to attach documents directly inside the iPDF.

� Clear documentation for RMA and originator at Johnson Controls and the supplier.

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� The option to attach documents directly inside the iPDF.

� Possibility to add yhe Return Material Authorization Number.

� The possibility to flag in the iPDF if a material needs to be returned or can be scrapped by Johnson Controls.

� Clear documentation for RMA and defective parts follow up.

� Option to decline the issue directly inside the iPDF with a reason.

� In case you supply to multiple Johnson Controls facilities you might be confronted with the new iPDF and today‘s way of working (Excel template coming from IRIS). Eventually all JCI facilities will use the iPDF.

In the next slide you will find an example of the excel file currently used and the interactive PDF

Johnson Controls, Inc. - INTERNAL

An example of the current problem-solving excel and the new Interactive PDF

An Interactive PDF to fill out:

� A description of the issue in the Issue Header and Issue Details and the possibility to enter supplier feedback directly in the form, so only one document attached to the e-mail notification.

� Send the form by clicking

Empty excel sheet to fill out:

� Besides a PDF with the issue details, the supplier receives an excel form to provide input on the issue.

OLD

NEW

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� Send the form by clicking the send button at the end of the document.

� Possibility to attach documents in the iPDF.


A more transparent Issue Managing Cost process

� An admin fee of 100 euro or dollars (depending on region) is added to every supplier chargeback.

Today Tomorrow Benefits & impact� More detailed cost calculation .

� The fee will automatically settled by a debit note on the supplier‘s invoice once a month.

� The admin fee item will be cancelled and replaced by a more detailed breakdown.

� We will calculate the administration costs based on the complexity of an issue and based on different labor hour rates per different regions.

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� We will debit issue managing costs only on closed SMRR / DMR issues that have been acknowledged by supplier.

� Debit note will contain a breakdown on single administration workload activities.

In the next slide you will find an example of a Debit Note and its cost variables


An example of Debit Note and its cost variables

On the Debit Note you will find:

� Issue Id

� Issue Type

� Issue Status

� Total amount of the issue based on the cost variables below


Changes to the MQR process

� Today the MQR notification is send to the supplier by email (manually).

Today Tomorrow Benefits & impact� A more standardized process

for both Johnson Controls and the supplier.

� An automatic generated email which contains the MQR notification (in a PDF file) and an excel template, the Quality Roadmap, which we ask you to fill in before the MQR meeting.

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In the next slide you will find an example of a MQR notification and the Quality Roadmap template in excel


An automatic generated email which contains the MQR notification

NEW


The Quality Roadmap that has to be filled out before the MQR meeting

FY 11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 YTD PPM FY12 Goal

PROBLEM STATEMENT: Enter the Problem Statement here. (What, Where, When and to what extent.)

DEFECT AND RPPM BY MONTH

0 00

100

200

300

400

500

FY 11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 FY12 YTD

FY12 Goal

PPM Reduction by MonthForecasted PPM Actual PPM

0% 0% 0% 0% 0% 0%0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

PPM Contributer #1 PPM Contributer #2 PPM Contributer #3 PPM Contributer #4 PPM Contributer #5 PPM Contributer #6

Pareto PPM % Contribution

NEW

In the excel file that you will receive you will find a separate tab with instructions how to fill out the Quality

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FY 11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 YTD PPM FY12 Goal

Forecasted Pcs. Rejected

Forecasted Pcs. Shipped

Monthly Forecasted RPPM #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

% Contribution % Contribution % Contribution

PPM Contributer #1 0% #DIV/0!






Actual Pieces Rejected

Actual Pieces Shipped

Monthly Actual RPPM #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

FY 11 Actual #DIV/0! PPM

FY12 YTD #DIV/0! PPM

FY12 Goal

PPM Monthly

ReductionOwner Open Date

Plan (original)

Comp. Date

Revised

Completion Date

Actual Completion

Date

Long Term:

Long Term:

PPM Contributer #2 Short Term:

Problem Statement (What, where, when, to

what extent)Root Cause Root Cause Verification

Short-term corrective action / Long-

term countermeasure (list as

deliverable)

Verification of Corrective Actions

PPM Contributer #1 Short Term:

out the Quality Roadmap shown on the left


Outline

� Introduction




More Information on the Johnson Controls Supplier Portalhttp://www.johnsoncontrols.com/content/us/en/suppliers/automotive_experience/Global_Standardization.html

www.johnsoncontrols.com


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More Information on the Johnson Controls Supplier Portalhttp://www.johnsoncontrols.com/content/us/en/suppliers/automotive_experience/Global_Standardization.html

On the Global Standardization page you will find:

Information on changed Quality process:� This presentation� Training material on the Interactive PDF

Please familiarize yourself with the provided information

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Please familiarize yourself with the provided information and work against DMR & SMRR email notifications

and address corrective actions.


Johnson Controls Contacts

Area Name Email

Quality Management (QM) Jürgen Wandelt [email protected]

Purchasing (PUR) Thomas Roßmüller [email protected]

Supply Chain Mgmt. (SCM) Jon Karel [email protected]


AE OPERATIONS Supplier Information on Changed Quality Process

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