1. Risk Exposure in a PACCAR Truck Plant
Matthew Christian

2. PACCAR Plant Video https://www.youtube.com/watch?v=MrOutOA1ZHg
Watch to 3:23

3. Assessing Risk Exposure
Start with a process
Engineer Truck
Order and Receive Materials
Build Truck

4. Order and Receive Materials
Building a Truck
Supplier
Input
Process
Output
Customer
-End Customer
-Regulatory Bodies
-Engineering Skills
-IT Support
-Customer Specs
-Engineering Drawings
-Regulations/Standards
-Bill of Material System
Engineer Truck
-Bill of Material
-Expected Cost
-Build Plan
-Supply Chain
-Accounting
-Operations
-Scheduled Date
-Purchasing Contracts
-Plant Management
-Quantity
-Due Date
-Price
-Supplier ID
-Lead Time
-Correct Paperwork
-Map of Where Materials need to go
Order and Receive Materials
-Open Purchase Orders
-Received Material
-Processed Material
-Vendors
-Builders
-Engineering
-Materials in the right place at the right time
-Installation Training
Build Truck
-Assembled Truck
-End customer

5. Basic Stats Over 20,000 parts per truck
~2,000 trucks built per week (1 every 6 minutes)
1 trailer of material per truck built per day
500+ key tier 1 suppliers
If 50 parts are missing, the truck will need to be towed off of the line
$50 per missing part
$500 for every tow-off
20,000 + staff in North America

6. What Could Go Wrong? People Processes Builders break a part
Material in the wrong place
IT support
Processes
Engineering callouts
Scheduling
Quality

7. What Could Go Wrong? Systems External events EDI
AS400 operating systems
Incorrect contracts and suppliers
External events
Fiber optic cables accidentally cut
Winter storm
Labor strikes at international sea ports

8. Calculate Exposure Winter storm interrupts 1 day’s worth of trailers
AS400 support staff are all 55+ years old
Engineering calls out 2% of parts incorrectly for 25% of a week’s build schedule