Global Sourcing Of Technical Parts.
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Transcript of Global Sourcing Of Technical Parts.
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7 april 2023
Going East:Our Approach and
Experience…
Michael NieuwboerMarco Verstappen
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Quote Evaluation Contracting Part Transition
Overview
Different Phases of the Project
Planning Part Identification Supplier IdentificationQuoting
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1. Project Planning
Important Aspects
Project LeadSQDSQEMechanical EngineerPlanningMetallurgist
Signed Charter by Principal
Also important:•Project Schedule•Communication Plan
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• Management commitment is key;• Resources have to be available;• Tight Project Management; planning and
monitoring• Reason for project has to be spick-and-span
and well-communicated– Savings, Rationalize Supply Base, Guarantee
Delivery, etc.
1. Project Planning
Lessons Learned
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2. Part Identification
Important Aspects
• What parts• Annual Usage• Current Stock• Part Specifications
– Drawing– Material– Flatness– Heat Treatment– Quality Standard
• CTQ’s• Required Supplier Capabilities
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2. Part Identification
Lessons Learned
• Grouping acc. to required Supplier Capabilities– 243 parts subdivided into 11 groups
• Drawing is not actual part– How to handle?
• NCR history by part– Rust, Material, Dimensions, Burrs, Missed
Operation, Damaged
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3. Supplier Identification
Important Aspects
• Which Country• Which Company
• Location main customer base• Direct labor cost levels• Political stability / EU member• Economic development• Grant possibilities• Customer preferences• Alignment LCC Strategy Purchasing
www.doingbusiness.org/map
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3. Supplier Identification
Lessons Learned
• First decide which Country(s)
• Make use of local existing intermediaries
• Non Disclosure Agreement• Make Supplier Presentation
– Whole Package Requirement– Ask them which Package interested– Include Schedule
• Dunn & Bradstreet / Financial Stability
• Company Track-Record• Response Accuracy / Speak
common language
• Make Long-/Short list
??
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4. Quoting
Important Aspects
• Get Short list confirmed by PT– Select Limited Potential Suppliers– Be aware that always 1 or 2 fail
• Decide on what aspects you will evaluate the Quotes
• Work to ‘RFQ’s will be send’ date
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4. Quoting
Lessons Learned
• Make one clear RFQ for the different Packages• Indicate very clear what they have to fill in:
– Quote Return File– Supplier Self Assessment
• Prevent multi-interpretable• Double check RFQ docs• Throughput time RFQ not necessarily longer (~3
weeks)
• Make announcement mail• Keep in contact after sending the docs• Send all documents by e-mail
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5. Quote Evaluation
Important Aspects
• Quote Validation– All documents received– All parts are quoted
• Quote Evaluation• Price vs. Quality
– Local Support– Technical know-how– Synergies with other plants
• Make Supplier aware of e.g. Tooling & Gauging requirements
• Identify Risks (concerns / gaps during process)
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5. Quote Evaluation
Lessons Learned
• Meet with Supplier– Discuss all open question– Shop tour
• Document everything; especial addition questions• First price is never Best price; even when
requested…• Prepare advice in which whole PT feels
comfortable to sr. management• Be sure that your suppliers contact person has
enough authority
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6. Contracting
Important Aspects
Q Minimum Quality Requirements:
Maximum of 1,636 PPM for the 3 month Delivered Quality as reported on the Supplier Scorecard
D Minimum Delivery Requirements:
95% on time delivery to the P.O. date as reported on the Supplier Scorecard
R Responsiveness Requirements:
Maintain lead times below 30 days. Respond in a timely manner to Engineering Changes and possible schedule changes.
C Minimum Cost Requirements:
Achieve and maintain fair and reasonable pricing defined as a + of - 5% range of competitive pricing in the market.
Q, D, R, C Requirements
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6. Contracting
Lessons Learned
• Lowest price isn’t always the best.
• Contracts need to be supported by top-management
• Don’t commit yourself to high volumes
• Do not try to squeeze your supplier
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• Make part transition plan
• Prepare PPAP plan– Process Flow diagrams– Control Plan– FMEA Plan– Gage R&R Study– Process Capability on
CTQ
• Establish Exit plan with existing Supplier
7. Part Transition
Important Aspects
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• Prepare Transition plan together with Supplier
• Also involve customers • Weekly calls to discuss status• There are always some ‘issues’• Make Inventory and Forecast analysis to
prioritize Transition process• Monitor PPAP process closely
7. Part Transition
Lessons Learned
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Results in ‘our’ Project
Timing
Slight delay mainly due to:• Longer lead time at supplier PPAP • Availability of tooling at new supplier• Approval alternative material Chinese suppliers• Longer lead time Customer PPAP
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Results in ‘our’ Project
Savings
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General
Shared experiences
• Not well educated in planning skills• Do not be offended or disappointed to soon. They share a different
view. Persistence is more successful• An action list is useful but will probably be used as notebook• Cash is king. Do not expect large cash contributions. It is simply not
available• Many eastern Europeans are very tough negotiators and will
always take off for the grant price (even unreasonable starting points). They hardly use proven hard data
• Are easily convinced when hard data is showed• Make sure you have a credit card with PIN code• Only the president of the company decides, final agreements must
be made directly with him/her• They hear what they want to hear. Be very specific in telling a
message• Official documents will be signed by many people, especially with
larger companies, take your time
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General
Shared experiences
• They are not well spoken in the English language, especially on the shop floor
• They are eager to learn but their lack of pro-activity prevents short term success
• There are cars that have only 1 HP… And they are not allowed to drive everywhere…
• Face-to-Face contact is extremely important• East Europeans like to do business with a friend. Make sure that
you are introduced properly and you will build-up a relationship. In hard times they will help their friends first!
• You will not loose time with the endless bureaucracy• Do not try to bribe people• It is wise to close a visit week with a Minutes of Meeting signed off
by both parties• To check whether they have the same understanding of the
agreements made as you• They be inclined towards nodding ‘yes’ but have no idea what you
are explaining them• EU member ship makes it much easier to import goods
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Michael NieuwboerSupply chain & Sourcing [email protected]+31 (0)6 2890 2893