Sowing Seeds for Savings and Success

(S4)

Rey G De Guzman

11, 26, 2009

April 11, 2023Subject / Department / Author -

2

S4 Topic Outline1. Management Brief ………………………………….... 3

2. S4 Framework ……………………………………....... 4

3. S4 in Details1. Plan

1. Crew ………………………………………………………. 52. PRoMT2 ………………………………………………….. 6

2. Do1. BOM ………………………………………………………. 72. LIFE Plan …………………………………………………. 8

3. Check1. PLUS ……………………………………………… ……. 92. QBR ………………………………………………………. 10

4. Act1. CTSB …………………………………………… ………. 112. CST ……………………………………………… ………. 123. CTCM ………………………………………… ………… 134. ESWY ……………………………………… …………… 14

4. Way Forward………………………………………… 15

April 11, 2023Subject / Department / Author -

3

1. Management Brief

Background: – XXX Supply Base Management had done well to successfully negotiate

lower prices from the vendor base.– But these are done to the expense of our supplier’s profit margins, making

the business less attractive and putting the long term relationship at risk.– In order to achieve the challenging target for 2010, and to make the

relationship with partners sustainable, a co-development activity is necessary between XXX and Vendor

– This means starting the project NOW so as to achieve results for the FUTURE

Objective:– Define a systematic and easy to use process to do the co-development and

implementation of saving generation activities– Standardize the implementation to all key vendors and share the learning to

other commodities and across XXX

Approach:– Use the PDCA close loop process– Use existing and available user friendly tools and templates

April 11, 2023Subject / Department / Author -

4

CReW

BOM

ESWY

PLUS

PRoM

QBR

CTSB

CST

CTCM

LIFE Plan

Plan

Check

Do

Act

Cost Reduction Workshop

Progress Level Update Status

Price Road Mapping

Buy Off Meeting

Line Implementation & Full Execution Plan

Commodity Team Steering Board

Cost Savings Tracker

Commodity Team Core Meeting

Excellence Starts With You

Quarterly Business Review

Generation of New and Breakthrough Concepts and Ideas

Aligning Expected Results with the Implementation Plan

Getting the Top Management Commitment on the Activities

Defining the Detailed Operational Plan by the Project Owners

Periodic Progress Update – Done on the OPERATIONAL Level

Sharing the Approach and Learnings with the Other XXX Assembly Sites

Making the Savings Results Official and Transparent

Sharing the Approach and Learnings within the XXX Community

Periodic Progress Update – Done on the STRATEGIC Level

Sharing the Approach and Learnings with the Other Commodity Teams

Flow Definition Goal

2. S4 Framework

April 11, 2023Subject / Department / Author -

5

CReW

BOM

ESWY

PLUS

PRoM

QBR

CTSB

CST

CTCM

LIFE Plan

Plan

Check

Do

Act

1. Idea Generation

3. Project Prioritization

2. Activity Consolidation

Cost Reduction Workshop

Initial action is to do Brainstorming Session with the Key Stakeholders

A list of activity is generated based on the initial ideas

Priority is set based

on the degree of Difficulty

and Possible Benefits

April 11, 2023Subject / Department / Author -

6

CReW

BOM

ESWY

PLUS

PRoM

QBR

CTSB

CST

CTCM

LIFE Plan

Plan

Check

Do

Act

Price Road Mapping1. Trends

2. Timing

The defined actions, with deadlines and owners, would drive the

savings and these are shown as an “inverted” Gantt Chart

The TRENDS would show the savings effect to price

as activities are implemented and closed

April 11, 2023Subject / Department / Author -

7

CReW

BOM

ESWY

PLUS

PRoM

QBR

CTSB

CST

CTCM

LIFE Plan

Plan

Check

Do

Act

Buy Off Meeting

Charter

Top Management

from both parties would

sign and approve the Charter to

signify Commitment

April 11, 2023Subject / Department / Author -

8

CReW

BOM

ESWY

PLUS

PRoM

QBR

CTSB

CST

CTCM

LIFE Plan

Plan

Check

Do

Act

Line Implementation & Full Execution Plan

Gantt Chart

Detailed Schedule of the “Milestones” and

“Implementation” are defined by the project teams

April 11, 2023Subject / Department / Author -

9

CReW

BOM

ESWY

PLUS

PRoM

QBR

CTSB

CST

CTCM

LIFE Plan

Plan

Check

Do

Act

Progress Level Update Status

Punch List

“Punch List” is used to track the actions needed to remove

“Show Stoppers” and “Road Blocks”

encountered in doing the LIFE Plan

April 11, 2023Subject / Department / Author -

10

CReW

BOM

ESWY

PLUS

PRoM

QBR

CTSB

CST

CTCM

LIFE Plan

Plan

Check

Do

Act

Quarterly Business Review

QBR’s would be held on the Senior Management Level, using the Charter,

PRoMT2, PLUS, LIFE Plan and PLUS as the Key

Tools

April 11, 2023Subject / Department / Author -

11

CReW

BOM

ESWY

PLUS

PRoM

QBR

CTSB

CST

CTCM

LIFE Plan

Plan

Check

Do

Act

Commodity Team Steering Board

Periodic update is done during the CTSB Meeting, highlighting the key achievement, with PRoMT2 and PLUS as the primary tool

April 11, 2023Subject / Department / Author -

12

CReW

BOM

ESWY

PLUS

PRoM

QBR

CTSB

CST

CTCM

LIFE Plan

Plan

Check

Do

Act

Cost Savings Tracker

The project and corresponding savings would be “officially” placed in the Cost Savings

Tracker, and the results reflected

in the F&A reports

April 11, 2023Subject / Department / Author -

13

CReW

BOM

ESWY

PLUS

PRoM

QBR

CTSB

CST

CTCM

LIFE Plan

Plan

Check

Do

Act

Commodity Team Core MeetingThe Projects would

also be shared during the Commodity Team Core Meeting with the

Assy Sites

PRoMT2 and the LIFE Plan would be the key tool for sharing

Key actions, if any,

would then be captured in the CTCM minutes and

parked items list

April 11, 2023Subject / Department / Author -

14

CReW

BOM

ESWY

PLUS

PRoM

QBR

CTSB

CST

CTCM

LIFE Plan

Plan

Check

Do

Act

Excellence Starts With You

Once result is achieved, recognition to the Team is done via ESWY

April 11, 2023Subject / Department / Author -

15

4. Way Forward

Actions– Make a Tool Pack for the S4– Apply to other Vendors in Packing Materials– Apply to other Commodities in BE BOM