Supplier Development János Takács
Electrolux Lehel – Managing Director
Electrolux - Regional Chief
Administrative Officer, CEE
2
Electrolux businesses
A true global company Cookers, Ovens & Hobs
Refrigerators & Freezers
Dishwashers
Laundry products
Vacuum cleaners &
Small appliances
Air Conditioners &
Dehumidifiers
Products for professional use
2012 data
Latin America
21%
Australia, New
Zeeland, Japan
6%
Middle East,
Africa, East Europe
10%
Southeast Asia,
China
4%
North America
31%
West Europe
28%
Our 2015 desired position
3
We will be the best appliance company in the world Our Vision
...our customers ...our shareholders
Net Sales of 150 BSEK
EBIT ≥ 7% & ROCE >25%
As measured by...
...our employees
Our framework
4
Profitable
growth
Innovation
− Product
− Brand
− Design
Operational
excellence
Vision We will be the best appliance company
as measured by our customers,
employees and shareholders.
People & Leadership
Our purpose
Values
Foundation
Passion for Innovation • Customer Obsession • Drive for Results
Respect & Diversity • Ethics & Integrity • Safety & sustainability
5
Slovakia
Ukraine
Romania Satu-Mare
Serbia
Slovenia
Croatia
Austria
280 km
Electrolux Business Sectors in Hungary
• Professional Kithcens & Launries Sales Europe
• Sales and Marketing Division
• Floor Care & Small Appliances Sourcing Europe
Budapest
• Holding
Small Appliances Sector
- Floor Care Factory
Electrolux Major Appliances Europe
- Refrigerator / Chest Freezer Factory
• Tool and Special Machine Factory
• Logistics Centre CEE
Jászberény
Electrolux Major Appliances Europe
- Refrigerator factory
Nyíregyháza
2,5 hour
1 hour
Electrolux in Hungary 2012
Position
Net Sales HUF 266 billion
Investments between 1991-2012 HUF 107 billion
Figures as of 2012
Products
More than 5 million products per year
To meet the real needs of consumers and professionals
People
3436 in Hungary
3500 at Suppliers
„An organization and its suppliers are
interdependent and a mutually beneficial
relationship enhances the ability of both to
create value.”
(International Organization for Standardization
Quality Management Principles: Principle 8:
Mutually beneficial supplier relationships)
Supplier Development
Our Quality starts at our Suppliers
1. Market Analysis
2. Potential Supplier list
3. RFQ Grip - Benchmarking
4. Selected supplier list
5. GSQA Procedure sent and supplier feedback
6. Profile EL29001 fulfilling by the supplier
7. Preliminary quality audit EL29002P
DP1 Decision to proceed
8. Drawings, Supply Specif., Q requirements
9. Supply and Quality Agreement (Preliminary)
10. Pre - Production, Quality Ass. Planning EL29003
Our Quality starts at our Suppliers
11. Preliminary samples with test results reports
12. Fine-tune product and re-sampling
13. Supplier process audit EL29002A
14. Pre - Production, Quality Ass. guided Implem. EL29003
15. Initial sample homologation
16. Industrial trial (Application homologation report)
17. Supply and Quality Agreements finalization
DP2 Production / Delivery release
18. Ramp-up production
19. Ongoing business evaluation (Q statusing, QES report)
20. EL29002A follow up (Within 6 months from production)
Our main focus is to actively engage pro-active suppliers who
can interact multi-functionally within Electrolux in order to:
generate innovation
shorten the time-to-market
reduce total product cost
improve product quality
optimize performance/cost ratio
have early project involvement
(front-loading)
Our Quality starts at our Suppliers
Supplier classification Description
Supported Fulfil Electrolux’s requirements, see e.g. price, accepted
quality, support Electrolux’s processes with their strategy.
Active If the supplier of the previous category cannot be used, this
satisfies Electrolux’s minimum quality requirements
Restricted (hold) The supplier is not involved in the new projects. No
commitment to the realization of common goals.
Excluded
Electrolux’s minimum quality requirements are not met. No
partnership in the future.
Potential For the time being, not an Electrolux partner, but has the
potential to become a partner in the future.
Our Quality starts at our Suppliers
Logistics Financial Purchasing
Supplier profile
Quality
(GSQA)
Strategic Supplier Selection
Supplier Development
R&D Other
functions
Our Quality starts at our Suppliers
The supplier criteria fall
into seven categories
which together give a
comprehensive picture
of requirements and
performance/
capabilities.
Category Criteria
Quality/operations Quality and process system assurance
Quality performance
Capacity flexibility
Logistics Delivery performance (errors)
Lead time
Finance Financial position
Environmental position Environmental systems and effort
Company profile Strategic confidence
Supplier commitment
Technology R&D capabilities
Price Price level
Price risk/trend
Commodity specific Commodity specific criteria*
Commodity specific criteria*
Our Quality starts at our Suppliers
Strategic Supplier Selection
Supplier Development
Requirement Profile Mapping
Supplier Profile Mapping
Set-up activities Ongoing activities
1 2 3 4 5 6 7 8 9 Criteria
Quality and process system assurance
Quality performance
Capacity flexibility
Delivery performance (errors)
Lead time
Financial position
Environmental systems and efforts
Strategic confidence
Supplier commitment
R&D capabilities
Price level
Price risk/trend
<Commodity specific criteria>
<Commodity specific criteria>
1 2 3 4 5 6 7 8 9 Criteria
Quality and process system assurance
Quality performance
Capacity flexibility
Delivery performance (errors)
Lead time
Financial position
Environmental systems and efforts
Strategic confidence
Supplier commitment
R&D capabilities
Price level
Price risk/trend
<Commodity specific criteria>
<Commodity specific criteria>
1 2 3 4 5 6 7 8 9 Criteria
Quality and process system assurance
Quality performance
Capacity flexibility
Delivery performance (errors)
Lead time
Financial position
Environmental systems and efforts
Strategic confidence
Supplier commitment
R&D capabilities
Price level
Price risk/trend
<Commodity specific criteria>
<Commodity specific criteria>
1 2 3 4 5 6 7 8 9 Criteria
Quality and process system assurance
Quality performance
Capacity flexibility
Delivery performance (errors)
Lead time
Financial position
Environmental systems and efforts
Strategic confidence
Supplier commitment
R&D capabilities
Price level
Price risk/trend
<Commodity specific criteria>
<Commodity specific criteria>
GAP
After an initial set-up of mapping requirement profiles and supplier performance profiles, Supplier profile tool will support various ongoing activities.
Our Quality starts at our Suppliers
Electrolux Product Division Month Year
Supplier Telephone
Address Contact Person
1. PRODUCT QUALITY - LINE & INCOMING INSPECTION
Line Rejects1 demerit for
every 10 ppm
Month DEMERITS
actual TOTAL
Incoming inspection
- And if incoming is done (30) demerits for every lot refused
2. DELIVERY PERFORMANCE
For each of the following items and for each occasion there are (30) demerits
- Line stopped
- Incomplete product
- A rescheduling or batch size reduction causing lost efficiency in
the production or sales demerits
Month 3 Months
average1. Product Quality Rating Demerits Comment
TOTALQ 0 - 10 Very Good
2. Delivery PerformanceRATING A 11 - 50 Acceptable
3. Number of B 51 - 150 RestrictedSupplierswith better C > 151 Unacceptable
rating
1 0
MONTHLY REPORTSUPPLIER ONGOING EVALUATION
DEMERIT SUMMARY
Supplier Ongoing Evaluation Monthly Reporting sheet
QUALITY VERSION
+
=
ppm ppmTarget215 80 22
220
0
22
0
22
A
8
Q
Our Quality starts at our Suppliers
Supplier performance,
follow-up and actions
Supplier:
Dem 2009 2010 2011
Jan 30 53 193
Feb 104 41 140 Mar 36 20 89
Apr 54 33 72
May 61 34 39 Jun 51 81 81
Jul 18 183 94
Aug 18 4 84 Sep 31 251 25
Oct 10 247 88 Nov 76 277 12 Dec 0 39 53
1) 2)
3) 4)
Jan
10
Feb
10
Mar
10
Apr
10
May
10
Jun
10
Jul
10
Aug
10
Sep
10
Oct
10
1
Nov
10
Dec
10 P lan D o C heck A ct
1) #### #### #### #### #### #### #### #### #### #### #### #### IGAZ IGAZ IGAZ HAMIS
2) #### #### #### #### #### #### #### #### #### #### #### #### IGAZ IGAZ IGAZ IGAZ
3) #### #### #### #### #### #### #### #### #### #### #### #### IGAZ IGAZ IGAZ IGAZ
4) #### #### #### #### #### #### #### #### #### #### #### #### IGAZ IGAZ IGAZ IGAZ
5) #### #### #### #### #### #### #### #### #### #### #### #### IGAZ IGAZ IGAZ IGAZ
6) #### #### #### #### #### #### #### #### #### #### #### #### IGAZ IGAZ IGAZ HAMIS
7) #### #### #### #### #### #### #### #### #### #### #### #### IGAZ IGAZ IGAZ HAMIS
8) #### #### #### #### #### #### #### #### #### #### #### #### IGAZ IGAZ IGAZ IGAZ
Remarks a)
b)
EHP Component:
Serigraphy: involvement of HR dept.
Additional modification on the service inflated circuit to avoid deformation
Investigation on root causes of seigraphy defects
Training about defects as dents and scratches
Cleaning of production lines
Dented plate
Dented channel Scratches on the surface
TEAM Supplier Electrolux
Improvement Project ROLL BOND EVAPORATOR PLATE PD: HUL-R
Activities
PROGRESS STATUS Main dimension
Main Problems
Maintenance of anealing oven once a month
Cutting of edge's coils (straordinary operation)
Evaluation of new packaging for code 206401200
J. Békefi D. De Feo
J. Szilágyi
170
124 141
100
67 64 71
86
68 66
42 51
43 31 38 31 29
49
99 89
146
167
258
188
0
50
100
150
200
250
300
350
Jan
10
Feb
10
Mar
10
Apr
10
May
10
Jun
10
Jul
10
Aug
10
Sep
10
Oct
10
Nov
10
Dec
10
Jan
11
Feb
11
Mar
11
Apr
11
May
11
Jun
11
Jul
11
Aug
11
Sep
11
Oct
11
Nov
11
Dec
11
Dem
eri
ts
Q A B C R 3 M Month
Our approach to quality problems
R&D - Prevention
The procurement is part of the IPDP (Integrated Product Development Process)
Joint setting of clear goals
Early engagement of suppliers in the development projects
Annual development programs
Primary input is the Service Call Rate (SCR)
Systematic approach involving the assigned team leaders and setting clear goals
„On-hold” process
Primary input is the continuous assessment
Supplier quality development program
1. Selection of proper parts and suppliers
2. Classification – factory working group
3. Supplier Assessment
4. Meeting with the selected supplier
5. Supplier Audit
6. First follow-up meeting (after 3 months)
7. Second follow-up meeting (after 6 months)
„Innovation - in the long run - is the ability of an
individual or a group of individuals to think a
thought that no one else has thought before and
than successfully turn that idea into reality that
separate the best from the rest.”
Jonas Ridderstråle, Kjell A Nordström – Karaoke Capitalism
19
Innovation
Accelerate Innovation
1. Develop best-in-class products
2. ”70% preference rule”
3. Reduce Time to Market 30%
4. Continue investing in premium brands
20
Innovation Triangle
R&D
Innovation Triangle
21
• The Innovation Triangle is global, for Marketing, Design and R&D
collaboration everywhere
• We are expanding our horizons and thinking about the entire
consumer experience
• We will develop more relevant and differentiated products,
services, accessories and consumables that consumers prefer,
faster than competition.
Battery stick cleaner
The new generation
23
4 steps in innovation
1. Winning the product for Hungarian production
2. New technologies in production
3. Product innovation
4. Marketing innovation
Challenges
25
Challenges of the development:
• Same performance as a regular cleaner
• Battery driven product with long running time (1 hour)
• Exchangeable battery
• Competitive cost to be able to have the production in
Hungarian production site
• Several new technologies to the Hungarian factory
team
Battery handling
and charging
26
Injection
technology
on grid
New technologies in our factory
Paper pulp (egg
cartoon)
packaging
Motor
vibration
balance
Filter
production
Product innovation
27
Suction motor
with 3 levels
impeller system
Brush roll clean
New electronics
module
Filter
cleaning
Cyclone unit
Marketing innovation
28
Self stand
Exchangable battery
Brush roll clean
technology
Flexible nozzle and
front light
Extra powerful combined
with extra long run time
Self standing
design
3 step power control with
booster function
Brush roll clean
Technology
Exchangeable battery pack –
extra pack available for purchase
Ultrapower – Features all based on consumer
insights
Cyclonic action for less clogging
Flexible floor nozzle with
headlights
At Electrolux, our innovation is based on
the consumer’s everyday wants and needs.
This is the essence of ”Thinking of you”.
”Thinking of you”
30
31
Thank you for your kind attention!
Top Related