SETEX
THE FOUR C’S OF LUXURY
PARTNER DAY
TOSHIYA KITAHARA President
presented by:
WELCOME & INTRODUCTIONS
The Four C’s of Luxury
CHRIS LIECHTY General Manager
presented by:
SALES CUSTOMER
SERVICE
&
ROB LUEBKE Commercial Director
presented by:
SALES & CUSTOMER SERVICE
13M Honda Accord Coupe
SALES & CUSTOMER SERVICE
13M Honda Accord Sedan
SALES & CUSTOMER SERVICE
13M Honda Accord Sedan
SALES & CUSTOMER SERVICE
13M Honda Accord Coupe
SALES & CUSTOMER SERVICE
SETEX OVERVIEW President: Toshiya Kitahara Plant Manager: Owen Whittington General Manager: Chris Liechty Opening Date: May 1988 (25th Year) Square Footage: 100,000 (Setex West) (9,290 m2) 112,000 (Setex East) (10,405 m2) Certifications: ISO 9001:2008 ; ISO 14001:2004 Number of Employees: 355 Production 76 Administration
SETEX UPDATE 2011-2013 BSC Frame Business ended in June 2012 & Outlander Sport Frame business was not awarded. Honda MAP launched 13M Accord Sedan August 2012 Honda MAP launched 13M Accord Coupe October 2012 Honda NA 16M Civic awarded to TS Tech Honda HCM MDX Seat business build out March 2013 BWI 13M MDX F/S Frame launched April 2013 Honda MAP 15M Acura TL DAN-0 NPD event completed June 2013
HONDA ACCORD SALES REPORT
July Sales: 31,507 5 Months Running
over 30K!!!
SETEX 90KI PRODUCTION FORECAST
0
5,000
10,000
15,000
20,000
25,000
Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar
Acc 2dr
Acc 4dr
Pilot Frm
MDX Frm
BWI Frm 800/day
Accord 960/day
FRAME ASSEMBLY: Accord Front Frames: 494,840 Accord Rear Frames: 247,420 Pilot Front Frames: 241,398 MDX Front Frames: 150,420
247,420
1,134,078
SETEX 90KI PRODUCTION FORECAST
SEAT ASSEMBLY: Accord 2dr: 43,440 Accord 4dr: 203,980
SETEX FUTURE ACTIVITIES 15M Honda Pilot Front Seat Frame Business • NPD Program • Tooling Kick Off September 2013 • Trial Events to start in March 2014
15M Accord MMC 16.5M Honda Ridgeline Front Seat Frame RFQ fall 2013. 17M Honda CRV global vehicle assist Setex Global with RFQ activity Fall 2013.
15M ACURA TL LAUNCH SUMMARY
Cert Build Aug/Sept
DAN-1 Build November
SALES & CUSTOMER SERVICE
LUXURY BRAND
QUALITY
JOHN ABNET Quality Assurance Manager
presented by:
What is Luxury Brand Quality?
Who is the ACURA’s competition?
What kind of dealership represents the ACURA ?
What is the ACURA?
What are the ACURA’s Quality Requirements?
ACURA
Brand Identity
Humanity Machine Like
Traditional
Progressive
What is the ACURA?
The Best or Nothing Perfection
PRECISION CRAFTED PERFORMANCE
1986
USA & Canada Launch
INTEGRA LEGEND
ACURA is a Latin word that is the origin for the English word
"accurate".
The Acura logo is actually an upright stylized caliper. It is meant to represent the commitment to
excellence and the accuracy with which Acura's are built and
engineered.
What is the ACURA?
Who is the ACURA’s competition?
What kind of dealership represents the ACURA ?
What is the ACURA?
What are the ACURA’s Quality Requirements?
ACURA
ACURA TL
Audi A4 BMW 3 Series
Mercedes Benz C Class Lexus IS
Who is the Competition?
ACURA MDX
Audi Q7 Lexus RX
Mercedes Benz ML BMW X5
Who is the Competition?
27/36
Who is the ACURA’s competition?
What kind of dealership represents the ACURA ?
What is the ACURA?
What are the ACURA’s Quality Requirements?
ACURA
ACURA – SHOWROOM
HONDA – SHOWROOM
30/36
Who is the ACURA’s competition?
What kind of dealership represents the ACURA ?
What is the ACURA?
What are the ACURA’s Quality Requirements?
ACURA
QUALITY
Market quality concern must be “0” Function and noise concern must be “0” Appearance quality defects must be “0”
What about the ACCORD?
“KR” Russian Market and “KY” Saudi Market Accord
“KR” Russian Market and “KY” Saudi Market Accord
“KR” Russian Market and “KY” Saudi Market Accord
“KR” Russian Market and “KY” Saudi Market Accord
“KR” Russian Market and “KY” Saudi Market Accord
“KR” Russian Market and “KY” Saudi Market Accord
“KR” Russian Market and “KY” Saudi Market Accord
“KR” Russian Market and “KY” Saudi Market Accord
“KR” Russian Market and “KY” Saudi Market Accord
OUR LBQ FUTURE
There is nothing in the world that some man cannot make a little worse and sell a little cheaper, and he who considers price only is that man's lawful prey. John Ruskin (1819 - 1900)
A
…The 1982 Cadillac Cimarron
NAME DOES NOT
LUXURY MAKE
KIRBY HALE Quality Control Manager
presented by:
A NAME DOES NOT LUXURY
MAKE
1980 US Auto Industry facing competition GM fears Mercedes-Benz and BMW impact on Cadillac Brand Dealers want small car entry into luxury segment Cadillac Cimarron based on GM J Platform Glorified Cavalier
…the 1982 Cadillac Cimarron
CONSUMER REACTION
Not Received Well by Dealerships Not Really a Cadillac Not Received Well by Consumers
CONSUMER REACTION
CONSUMER REACTION
COMPETITVE
Introduce V6 Engine Option (1985 Model)
Add More Cadillac Styling Large Contributor to the 42% Market
Share Loss Too Late. The Damage is Done
GM REACTION
How Does This Relate to Us?
We only have one shot to make an impression on our customer.
Setex can not supply Honda a LBQ seat without LBQ Partners
LUXURY BRAND & QUALITY
PERCIEVED
KIRBY HALE Quality Control Manager
presented by:
What is Perceived Quality?
The consumer's opinion of a product's (or a brand's) ability to
fulfill his or her expectations.
LUXURY BRAND & PERCIEVED QUALITY
Key Element of Product Management It is what the consumer (customer) senses at first sight and touch In a “Blink of an Eye” perceived Quality can change
Domestic Accord versus Export
LUXURY BRAND & PERCIEVED QUALITY
Overall Look & Feel: Export has added features like wood grain appliqué, Power window shades not available on Domestic Shape & Colors: Same Materials used: Same Finish & Textures: Same
LUXURY BRAND & PERCIEVED QUALITY
So What is Different?
ONLY Perceived Quality Has Changed. Why?
Relative Price Marketing Focus
So How Do We Separate LBQ From Standard Quality? SIMPLE; We Don’t! These Days LBQ products and Standard Products are made on the same assembly process, side by side, one after the other. We treat the Accord Seats the same as the Acura TL seats, All are LBQ
During the past 2 plus years Setex has increased our capabilities Added Sound Booths Improved Visual Management Measurement capability both process and layout
So How Do We Separate LBQ From Standard Quality?
PROGRAM
LAUNCHES
presented by
MIKE BUDDE Product Development Manager
PROGRAM LAUNCHES TZ3/TZ4/TZ7 – Acura TL
Program Specifics
Customer MAP Line #1
SOP May 2014
Number of Shifts 2-Weld/1-Assembly
Annual Volume 80,400 Sets
Daily Volume 335 Sets
Setex Production Facilities
East - Weld
West - Assembly
Scope of Supply
LH Seat Frame RH Seat Frame Rear Back Frame
Rear Seat Complete Front Seats Complete
Program Timeline
PROGRAM LAUNCHES TZ3/TZ4/TZ7 – Acura TL
TG7 – Honda Pilot
Program Specifics
Customer BWI - Alabama
SOP May 2015
Number of Shifts 2
Annual Volume 165,535
Daily Volume 690 Sets
Setex Production Facilities
East - Weld
Scope of Supply
LH Seat Frame RH Seat Frame
PROGRAM LAUNCHES
Program Timeline
PROGRAM LAUNCHES TG7 – Honda Pilot
15MY Accord – 2DR/4DR
Program Specifics
Customer MAP Line #2
SOP August 2014
Number of Shifts 2
Annual Volume 230,400 Sets
Daily Volume 960 Sets
Setex Production Facilities
East - Weld
West - Assembly
Scope of Supply
• Information TBD
PROGRAM LAUNCHES
Program Timeline
PROGRAM LAUNCHES 15MY Accord – 2DR/4DR
PPAP REQUIREMENT TZ3/TZ4/TZ7 – Acura TL
Target PPAP Timing is January 2014
TG7 – Honda Pilot
Customer is Requiring PPAP at DAN1 MRD Timing
Target Date Supplier to PPAP to Setex is July 2014
Existing Components in which the PPAP date is greater than 1-Year Require an Additional PPAP
6.2.1- Events
A- Events are trials and/or builds that precede mass production. B- Each Setex New Model event requirement will be identified on the P.O. and will reference the corresponding new model “Event” code. C- Event codes will utilize terms such as “DAN” (dankaku [i.e. trial event] ), “QC” (quality confirmation), “RC” (rate confirmation), “PP” (pre-production), etc…
www.setexinc.net
SHIPPING REQUIREMENT
A- Components/assemblies supplied for event trials must…
a) Include a minimum of six pieces (data validation samples) in addition to the quantity identified on the P.O.
b) The data validation samples must be identified as such and delivered to the attention of your assigned Setex Product Development engineering window (including adherence to the requirements of 6.2.4 within this handbook). c) The data validation samples must have corresponding “ballooned” drawing numbered with each applicable drawing characteristic.
6.2.2 – Data Validation Samples
SHIPPING REQUIREMENT
A- Components/assemblies supplied for event trials must… d) The associated data must be numbered to correspond with the “ballooned” drawing numbers. e) Each characteristic (i.e. dimensional, performance, appearance, etc…) must be included in the resultant data. NOTE: Exceptions to this must be negotiated with and agreed to with your Setex Product Development engineering window a minimum of two weeks prior to delivery due date.
SHIPPING REQUIREMENT 6.2.2 – Data Validation Samples
6.2.3 - Approval
SHIPPING REQUIREMENT
A- Prior to mass production start and delivery, new model product must be approved by Setex. B- Approval requirements include but are not limited to… a) Level 3 PPAP including but not limited to… i. Supporting data including “A-B” (previous vs proposed) capability study data. ii. Updated control plans and FMEA reflecting the controls for the proposed changes. iii. Functional and/or safety confirmation data... NOTE: Any new model product, which (as determined by Setex) requires verification by Setex and/or design/testing resources available to Setex), is subject to testing fees, which will be the responsibility of the product supplier.
6.2.4 - Identification
SHIPPING REQUIREMENT
C- Additional approval requirements may include, but are not limited to. a) A QAV (Quality Assurance Visit) by Setex to the supplier’s location to verify the controls relative to the proposed change. i. Formal approval of the new model product is identified by the supplier’s receipt of the previously submitted Warrant as level 3 PPAP “Warrant”, which contains a Setex judgment of “APPROVED” and corresponding Setex approval signature.
6.2.3 - Approval
SHIPPING REQUIREMENT
A- All new model “Event” (see section 6.2.1 of this of this handbook) deliveries, must have a “New Model Event Tag” (Setex form F-0045) applied to each container and/or skid/rack of product. NOTE: New Model event information is conveyed to the supplier via the Purchase Order.
SETEX
MATERIALS
KAREN KLAY Materials Manager
presented by:
MATERIALS DEPARTMENT
Materials management is the grouping of management functions supporting the complete cycle of material flow, from the purchase and internal control of production materials to the planning and control of work in process to the warehousing, shipping and distribution of the finished product.
– Thomas F. Wallace & John R. Dougherty
MATERIALS MANAGEMENT
CUSTOMER I would like to touch on a very important aspect of the cycle of material flow, one that is a critical KEY PERFORMANCE INDEX that affects our ability to ensure outstanding performance to our Customer. I am of course talking about – delivery. On time, every time, as scheduled. After a very challenging 2011 with two natural disasters, there were some Honda suppliers that were not ready to achieve production forecasts. Some had raw material issues, others were short-staffed, and as a result. . . . ALL suppliers were affected. Honda is poised to produce a record number of automobiles in the North American marketplace in the upcoming year. We must be ready.
COMMUNICATION As critical as on-time delivery is to the Setex Materials Team, a key component to our success and that of you, our suppliers, is timely and accurate communication. Our Weld and Assembly Production Teams rely on the Materials Team to ensure that they can anticipate and build to our planned schedule. Any hiccups with quality or delivery issues, tooling problems, have the potential to affect our Customer. Your advance notification allows our Team to make informed decisions regarding schedule changes. We are then “pro-active” instead of “re-active.”
CONTROLS As the Setex Team moves towards upgrading our inventory system (1st quarter of Fiscal Year 2014) with the creation of a “PC BASED WAREHOUSE MANAGEMENT SYSTEM,” we need to rely on you, our suppliers to ensure barcode placement, accuracy and readability is managed by your Team. We are excited to be automating our inventory system as well as our receiving, picking and data transfer activities. Using barcode scanning, we will reduce and eliminate the human error element, our data transfer will be real-time. Any material discrepancies will be communicated utilizing our STR System (Setex Trouble Report) and both Quality and Material Departments will jointly have a monthly performance report that each supplier will receive.
LABEL PLACEMENT
Always think “LABELS FIRST” to ensure our incoming product can be read (as well as your outgoing product) for an accurate inventory. This is critical to ensure the correct component is shipped and received. Partial labels MUST be removed to ensure current container barcode is able to be scanned. A label situation which you see on the right hand side of the slide, means a DTR will be levied against the supplier and corrective action (5P) will be required.
COMPETITIVE Our “PC BASED WAREHOUSE MANAGEMENT SYSTEM” is just one way that Setex is positioning ourselves to be competitive and improve our performance to our Customer. What are you doing? How will you improve? Will you continue to be a “partner” with Setex, or will you find yourself wishing you had listened to the message being delivered today, taken it back to your company and communicated the vision?
SERVICE
PENNY COX Service Manager
presented by:
SETEX SERVICE Penny Cox- Service Manager Mark Graves- Supervising Senior Analyst Rosie Faul - Administrative Assistant Patricia Brosher - Material Analyst Service Team Technicians
Lisa Davis Julie Kaiser James Pendleton Teresa Ziegenbusch Edward Gilbert Connie Yaney Todd Abels
Maintain Service Operations for the Accord 2DR/4DR, Element, Acura TL, Acura MDX, Pilot, Odyssey and BSC, current and past model Service Orders (15 -20 years) Interact with 84 suppliers for Monthly LT & NC 30, Tri-annual, P.O.D.’s and Supplemental Service Orders
SETEX SERVICE
Responsible to maintain over 11,000 current and past model component part numbers as of May 2013. With the 2014 Accord launch changes, the 2015 Acura TL launch, the 2014 MDX launch and upcoming Pilot launch, the Service Department will be maintaining over 12,000 part numbers.
SETEX SERVICE
PART NUMBER GROWTH
QUANTITY OF PARTS
1439 3756 5960 7800 8042 9064 11358
YEAR 2000 2004 2008 2010 2011 2012 2014
0
2000
4000
6000
8000
10000
12000
2000 2004 2008 2010 2011 2012 2014
SUPPLIER DELIVERY
SUPPLIERS MUST SUPPORT CURRENT & PAST MODEL SERVICE ORDERS w/0 Defects/Quality incidents!
Suppliers delivering on time is key to Setex
Service delivering to our Customers – 100 % ON-TIME-DELIVERY!
SUPPLIER DELIVERY Requirements
• Maintain tools and materials for a minimum of 10 years from build out of model year per AHM requirement (Customer would like 15-20) • Submit Quotes for Purchase Requisitions within 2 weeks of receipt with detail of all parts • Communication - Notify Setex immediately within the first week of receipt of “Planning request “ of any potential concerns or issues • Notify Setex of any tool changes or tool location changes during the length of Service of part • New Model delivery support 1 month prior to Mass Production startup per Honda requirement • Packaging invoices MUST accompany freight and be sent to Setex contact prior to receipt
SERVICE AWARDS DUE TO 100% SUPPORT AND
TEAMWORK FROM OUR SUPPLIERS, SETEX HAS ACHIEVED THE ON TIME DELIVERY PERFORMANCE AWARD FOR 3 YEARS FOR SETEX USA (0637) & 1 YEAR FOR SETEX CANADA (1604) WITH HONDA.
• 100 % QUALITY • 100 % DELIVERY
SYSTEM
CONTROLS
presented by
ANN McHENRY Quality Assurance Engineer
CONTROLS
CONTROLS
http://www.ted.com/talks/joachim_de_posada_says_don_t_eat_the_marsh
mallow_yet.html
Self-Discipline is the number one factor that determines success
For a company, Self-Discipline is the
robustness of it’s Systems
CONTROLS
SETEX SUPPLIER
HANDBOOK
presented by
ANN McHENRY Quality Assurance Engineer
• SECTION 1– Definitions • SECTION 2– Minimum Process Requirements
A- PCB (Printed Circuit Boards)
B- Torque
C- Weld
D- Casting
E- Machining
F- Heat Treatment
G- Injection Mold
H- Painting
I- Wire harness
J- Stamping http://setexinc.net
SETEX SUPPLIER
HANDBOOK
SETEX SUPPLIER
HANDBOOK
• SECTION 3 - Lot Control – Maintain traceability
– Keep good FIFO
http://setexinc.net
• SECTION 4 – Nonconforming Product
http://setexinc.net
SETEX SUPPLIER
HANDBOOK
• SECTION 5 – Change Point Control
http://setexinc.net
SETEX SUPPLIER
HANDBOOK
• RFCs are issued for… A- Design Changes B- New Suppliers C- Material Changes D- Manufacturing Method Changes E- Process Order Changes F- Machine Changes G- Jig/Tool Changes H- Die/Mold Changes I- Inspection Method Changes J- Pack/Load/Transport Method Changes K- Deviation Requests
http://setexinc.net
SETEX SUPPLIER
HANDBOOK
• SECTION 6– Delivery
Part Name:
Part No.:
Design Level:
Supplier:
Date:
P.O.#:
SERVICE PARTS tag
(this form must ONLY be used on LIGHT BLUE paper)
http://setexinc.net
SETEX SUPPLIER
HANDBOOK
• SECTION 7 – Monitoring and Measuring
– As identified on the Control Plan
– Records should be available upon request
http://setexinc.net
SETEX SUPPLIER
HANDBOOK
• COMING SOON…
– IMDS International Material Data System - Database for
recording components, sub-components, materials, and basic substances used in the production of vehicles.
– Conflict Minerals Compounds designated by the U.S.
Secretary of State that are sourced from mines under the control of violent forces.
http://setexinc.net
SETEX SUPPLIER
HANDBOOK
SUPPLIER QUALITY
PERFORMANCE
KIRBY HALE Quality Control Manager
presented by:
SUPPLIER PPM PERFORMANCE
0
100
200
300
400
500
600
700
800
900
1000
1100
1200
Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13
Par
ts P
er
Mill
ion
(P
PM
)
2013 MY SUPPLIER PPM
AVG = 485
0
200
400
600
800
1000
1200
1400
1600
1800
FY 2010 FY 2011 FY 2012 FY 2013
An
nu
al S
up
plie
r P
PM
Model Years 2010-2013
4 YEAR TREND = 70% IMPROVEMENT
SUPPLIER PPM PERFORMANCE 4 YEAR TREND
AREAS OF OPPORTUNITY
Average Supplier STR (Setex Trouble Reports) Days to Closure = 79 Days Percent of Setex Trouble Reports Closed = 40% Percentage of Repeat Issues = 37%
KEYS TO IMPROVEMENT
• Suppliers Must Drive Days to Closure 14 Days
• Drive to Close All STR • Drive Percentage of Repeat Issues to
ZERO by Finding TRUE Root Causes
EFFECTIVE CORRECTIVE
ACTION
JOHN ABNET Quality Assurance Manager
presented by:
EFFECTIVE CORRECTIVE ACTION
as·sump·tion (-s mp sh n) n.
a) an assuming that something is true b) That which is presumed or assumed; that which is supposed or believed to be real or true, on evidence that is probable but not conclusive. c) The act of taking for granted, or supposing a thing without proof; supposition; unwarrantable claim www.websters-online-dictionary.org/ definitions/
QUIZ
DONT’s: When performing the 5Y (root cause identification)….DON’T end on….
a) HUMAN ERROR b) EQUIPMENT FAILURE c) PROCEDURE NOT FOLLOWED d) TRAINING INADEQUATE e) DESIGN ERROR
(applicable only for “design responsible” organizations). f) POOR COMMUNICATION
i.e. you must end on the “SYSTEM” or “PROCESS” that allowed a~e to happen
EFFECTIVE CORRECTIVE ACTION
Remember: One of the most important aspects in the 5 Why approach: -the real root cause should point toward a process that is not working well or does not exist.
Pitfalls: Untrained facilitators will often observe that answers seem to point towards classical answers such as … a) not enough time b) not enough investments c) not enough manpower.
These answers may be true, but they are out of our control.
EFFECTIVE CORRECTIVE ACTION
EYES ON THE PRIZE:
A key phrase to keep in mind in any 5 Why exercise is
"people do not fail, processes do"
EFFECTIVE CORRECTIVE ACTION
SETEX
PURCHASING
presented by
MIKE BEOUGHER Purchasing Manager
SETEX PURCHASING Nate Sudhoff –Foam, Backboards, Headrest Keith Whittington – Mechanisms, Electrical, Plastics Laura Kuhn - Welded Assemblies, Metals, Fasteners Loretta Cathcart – Outside Services, MRO Patrick Lawrence - Trim Justin Arnold – Cost Analysis / Support Mike Beougher – Support
Forecasts? Change according to what the customers want Surveys
Support Production 960 Seat Sets Daily 11,500 Seat Frames Daily 620,000 Parts per Day
SETEX PURCHASING
Setex Expectations of Suppliers
0 Defects/Quality incidents 100% on time Delivery Globally Competitive Prices
SETEX PURCHASING
Customer Expectations 0 Defects/Quality incidents Customers cannot/do not check quality Quality must be assured by supplier Quality defects drive costs into everyone’s system Quality improvement plan specific to Setex
SETEX PURCHASING
Best in Class Quality is a requirement for new
business
100% on time Delivery Resources on both sides.
Bad News First What is the concern? What actions are you taking? Timeline for potential impact?
SETEX PURCHASING
Customers Expect Continuous Improvement
Cost/Weight improvement on New Models Innovation Annual Cost reductions
SETEX PURCHASING
Tools to Achieve Cost Improvement Setex needs suppliers to collaborate with us on a shared Cost improvement Plan. Together we can make significant Improvements. New Programs (Early Involvement is Critical) Incorporate Improvements in new business quoting Include Design Improvements as part of new program
SETEX PURCHASING
Next 25 Years
Change Challenge Creative Cooperation / Partnership
SETEX PURCHASING
McGregor Metalworking Johnson Controls TechnoTrim Demlow Products, Inc. Buckeye Diamond Logistics Jackson Tube Service
25 Year Supplier Recognition
McGregor Metalworking Johnson Controls TechnoTrim Demlow Products, Inc. Buckeye Diamond Logistics Jackson Tube Service
First Responder
25 Year Supplier Recognition
HOT
THE FOUR C’S OF LUXURY
TOPICS
CLOSING COMMENTS
OWEN WHITTINGTON Plant Manager
presented by: