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NCR Confidential NCR Supplier Quality Webcast June 8 2011 Bob Ciminera - Vice President Strategic Sourcing Robert Mele - Vice President, Quality and Continuous Improvement
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NCR Confidential 2 Agenda – Supplier Quality Webcast Introduction Supplier PPM, Trend Requirements/ Timeline Bob Ciminera / Robert Mele Wagih Wazni Robert Mele All SQDD Update/PPAP/FAI 350 PPM Action Plans Supplier Quality Training Michael Crutch NCR Actions for Success Q&A
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NCR Confidential 3 What Is PPM? Parts Rejected Per Million Parts Received: PPM = Rejects / Receipts * 1,000,000 Rolling 3 Month Average minimizes noise Focus on high rejects AND high PPM Actual data from 1 March – 31 May 2011 High rejects impact NCR overall PPM more than individual supplier PPM
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NCR Confidential 4 Supplier Quality PPM – Global View 350 PPM Actions Use of MSA to validate and calibrate rejections between supplier and NCR Sites Weekly focused actions on failure modes impacting overall PPM target Analysis of SCAR failure mode data to drive DMAIC projects Individual Top Offender Supplier action plans to achieve 350ppm Supplier Webcast every two months – Next 8/10/11 PPAP requirement for all New Parts/Suppliers
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NCR Confidential 5 PPM Requirements – What you need to do March - May 3-Month rolling average: 657 PPM What actions must you take to achieve 350 PPM? PPM Requirements July 2011: 500 PPM October 2011: 350 PPM March 2012: 300 PPM October 2012: 200 PPM
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NCR Confidential 6 Short Term Actions For suppliers > 350 PPM: 108 letters sent requesting Action Plan Received majority – communicating with suppliers who haven’t provided plan Immediately - Confirm updated Supplier Inspection program Return 350 PPM Action Plan to NCR Monthly review with your SQE to begin Immediate increase in inspection Execute Action Plan to achieve 350 PPM by October but begin inspection NOW to reduce rejects at NCR
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NCR Confidential 7 Supplier Quality Training Quality Tools Statistical Process Control Control Charts PPAP Training SPC and Control Charts will enable early warning and prevent defective parts from being shipped to NCR.
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NCR Confidential 8 Supplier Quality Design & Development (SQDD) Purpose Assure smooth part & module introduction to NCR – PPAP & Design Review Selection of quality suppliers for NPI Current Status Design review started on key programs (S1, S2 & SDM) PPAP qualification = Started with 30% rejection rate Reviewing suppliers capability and alignment with NCR quality goals. 500 PPM by July 1 and 350 PPM by Oct 1, 2011 Future Activities ID suppliers with score of 2 or 1 on score card for quality to prevent upfront involvements with new programs or winning new business Award suppliers new business with score 4 & 5 across the score card with cost advantage
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NCR Confidential 9 Supplier Quality Expectations Inspection and 350 PPM plan due – Review with SQE Clear understanding of PPAP and SPC PPM Requirement July 2011: 500 PPM October 2011: 350 PPM October 2012: 200 PPM Webcast Schedule August 10 Results of July goals and actions to ensure October 350 PPM October 52011 YTD summary, final 2011 actions required December 7 2012-2013 supplier requirements October 1, 2011: 350 PPM
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NCR Confidential 10 Long Term – YE2012 Supplier Quality web portal Supplier Approval List updated 200 PPM Actions for Success Short Term – 3Q2011 Finalize Qualification Process within NCR India Supplier & Critical 40 supplier action plans – next steps Finish SPC/PPAP training for top suppliers Report card on 350 project plan Supplier metrology requirements established and communicated Supplier inspection plan submissions – suppliers > 500 PPM Mid Term – end 1Q2012 Desourcing process Drawing uniformity from NCR Supplier Metrology requirements achieved Sampling sustainment strategy 300 PPM
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NCR Confidential 11 Resources and Contacts For Supplier Resources: http://www.ncr.com/about_ncr/partners/suppliers/ http://www.ncr.com/about_ncr/partners/suppliers/ Assistance with NPI, PPAP, FAI: Wagih Wazni (Wagih.Wazni@NCR.com)Wagih.Wazni@NCR.com Director, Global Supplier Quality Engineer Assistance with Production Parts, Incoming Inspection, SCARS, 350 PPM Plan: Michael Crutch (Michael.Crutch@NCR.com)Michael.Crutch@NCR.com Director, Supplier Quality Excellence Overall quality issues: Robert Mele (Robert.Mele@NCR.com)Robert.Mele@NCR.com VP, Quality and Continuous Improvement
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NCR Confidential 12 Q&A
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