Continuous Improvement

Supplier Management

9th of March 2016 (V4)

Supplier Management

Supplier non performance

 Supplier bad logistic performance wastes Material planner and Receiving clerk time and can
lead to production line / Customer shutdown.
 2 kinds of supplier non performance:

 MPM = non-respect of the quantity or timing of the expected delivery.

MPM = Misdeliveries Per Million

MPM = Nb of Defective Order Lines* x 1,000,000
Nb of Total Order Lines
* Lines delivered in the wrong quantity or at the wrong time, due to the supplier fault

 QP = non-conformance of the delivery (packaging, loading, information on delivery note /

label, incorrect information communicated, etc.)

PF (Perturbation of the Flow) = severity of the incident with regards to the disturbance
generated by the failure and the repetitiveness of the failure.

 MPM and QP are tracked by PC&L and SQA to force supplier getting better.
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MPM
 Access
 MPM.net = data entry application https://mpm.app.corp/ (request access to Laurence Durvel)

 Record MPM
 Faurecia Receiving clerks must record MPM just after every single delivery.
 Done by comparison of the physical delivery with the Manifest (or Supplier receiving list).
 If an order is modified after its Manifest is displayed in the Receiving board, Material planner must update the Manifest on
the Receiving board to reflect the latest information.
 When misdelivery is due to lack of packaging, space in trailer, it is not counted as defective line.
 See MPM.net user guide .

 Countermeasures
 At Day +11, external suppliers can access GPS (Global Purchasing System) to review their performance.
 Results are part of Faurecia Purchasing Dashboard.
 Countermeasure actions are defined by plant.
 Each month, PC&L and SQA meet to agree and request countermeasure actions to non-performing suppliers.
 Countermeasure actions example:
Level 1 MPM < 49 Preventive Measures
Level 2 50 < MPM < 499 Standard warning via telephone or email
Level 3 500 < MPM < 4,999 Corrective action plan required
Level 4 5,000 < MPM < 49,999 Faurecia written notice, request for improvement, official audit carried out
Level 5 50,000 < MPM Strategic intervention

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Example of MPM record

 Whenever the cause of MPM is known: add a comment (it will be
very useful to review the MPM status at the end of the month and
request actions to supplier)

Supplier had quality issue on part 187 and

decided (no communication to Faurecia) to fill up
truck with part 188.

1 under
delivery
+ 1 over delivery

03/18/2015
03/18/2015

MPM = 2 Defective Order Lines x 1,000,000 = 666,666

3 Total Order Lines
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MPM reporting
 MPM reports
 WEBI is used for analysis and reporting
 Account to be requested via IAM application: https://iam.app.corp/. Need help: follow instruction.
 Access: http://sapepi04.app.corp:8100/irj/portal for Europe or directly through MPM.net link:
http://sapfe3.app.corp:57500/irj/portal for Asia
http://sapfe2.app.corp:57500/irj/portal for America
 E-training: http://group.intranet.faurecia/sites/quality/WEBI%20eLearning/story.html

1. Select a report
2. Filter data

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Supplier Management

MPM reporting
 MPM report: « MSU01 – Supplier MPM Monthy Analysis »
 Shows Top worst / best suppliers with MPM of the month + 6MR.
 This report answers to FES question 13.8.2. Level 3 - See example:

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MPM reporting
 MPM report: « MSU01b – Supplier MPM – Month detail », tab « Month detail »
 Shows detail of each delivery (Date, Delivery note number, Cause, Nb of defective order lines,Total order
lines, Supplier MPM). These data are retrieved from MPM.net.
 This report allows Material planner to work with Purchasing and Supplier to improve delivery performance
based on detailed data and comments - See example:

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Non-compliance (QP)
 Access
 QSS = Logistics Quality Claims application: https://qss.app.corp/ (request access to Medy Bengana)

 Record a QP (non-compliance)
 QP are recorded by SQA or PC&L
 The causes of QP are listed below:
QP and MPM can add up:

• Reason codes L31, L32,

L34 QP + under / over
Incomplete ASN or DN. Multiple ASN or DN per Manifest. delivery MPM

• Reason code L36 QP +

late or early delivery
MPM

 Communication to the supplier

 The supplier is informed by email when a QP is recorded.
 An 8D is requested from the supplier for every occurrence; a debit alert can also be created to cover induced
internal costs.
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Supplier Management

Non-compliance (QP)
 Example of QP report :

Incomplete ASN or DN.

Multiple ASN or DN per Manif

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Non-compliance (QP)
 Debit alert
 If judged relevant by Faurecia PC&L, a debit alert is created per Quality Performance Procedure FAU-S-SPG-3123.

Incomplete ASN or DN. Multiple ASN or DN per

Manif

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Failure mode
Over / Under delivery on Initial (Initial) Manifest non respected without prevention from Supplier and / or
Manifest
Over / Under delivery on
Recovery plan
Late delivery / Early delivery
Packaging non compliant
Mis-delivery because of lack
of packaging
Late delivery because of lack In the case of no communication from supplier and / or agreement of the delay In the case of written notification sent to Faurecia PC&L and delay due to
of packaging
Labelling non compliant
Delivery document non
compliant
Load non compliant
Supplier management V4
MPM and QP entry rules
QP and / or MPM No MPM, no QP
- Mis-delivery communicated to Faurecia PC&L and recovery plan agreed.
without recovery plan accepted by Faurecia PC&L. (L34.3 QP + MPM) - Manifest does not match with Standard pack quantity or Standard packaging
does not exist.
- No space left in trailer.
- Releases and Manifests are not aligned.
- Manifest vs forecast variability is above the agreed level.
- Releases & Manifest standard lead times were not respected.
Agreed Recovery plan not respected. (L34.1 QP + MPM) Agreed Recovery plan email or Shortage Manifest was not sent from Faurecia
PC&L.
- In the case Faurecia is in charge of transportation and Supplier detained the Delivery window missed due to a problem not related to the supplier.
truck with no notification to Faurecia. (L36 QP + MPM)
- In the case Supplier is in charge of transportation. (L36 QP + MPM)
- Packaging (or pallet) not compliant with specifications. (L31.1 QP + MPM if In the case of back-up packaging shipped: if written notification sent to Faurecia
mis-delivery) PC&L and back-up packaging usage agreed.
- Packaging damaged (handling or safety problem). (L31.2 QP)
- Quantity per packaging not complaint with specification. (L31.3 QP + MPM if
mis-delivery)
In the case of no communication from supplier and / or without recovery plan In the case of written notification sent to Faurecia PC&L.
accepted by Faurecia PC&L. (L34.3 QP + MPM)
by Faurecia PC&L. (L36 QP + MPM) repacking activity agreed.
- Non compliant or missing label. (L32.1 QP)
- Label-item mismatch (wrong parts). (L32.2 QP + MPM)
- Manifest or Delivery note illegible or unusable. (L33.1 QP)
- Manifest or Delivery note missing. (L33.2 QP)
- Manifest or Delivery note documentation incomplete or erroneous. (L33.3 QP)
- Load not compliant with loading plan. (L35.1 QP)
- Non compliance with safety instructions. (L35.2 QP)
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Supplier Management

Supplier access to GPS (MPM and QP)

 At Day +11, suppliers can access GPS (Global Purchasing System) to review their logistics performance.
 Example of Supplier MPM performance report (month + 6MR):

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