eMRR Project Overview 6/26/2013

Wayne Karcher – wkarcher@tenneco.com

Michael Krug – mkrug@qmsinc.com

Agenda

Tenneco Overview

MRR

eMMR Solution with QIM

Demo

A Global Leader Since becoming a standalone company in 1999, Tenneco (NYSE: TEN) has grown to become one of the world's leading suppliers of automotive emission control and ride control products. The company is well-balanced across product lines, markets served and geographic regions. Using a combination of leading-edge technology, manufacturing expertise and dedication to customer service, Tenneco has increased revenues and penetrated new markets to solidify its leadership in the global automotive supply industry.

Our Worldwide Presence Tenneco is a $7.4 billion global manufacturing company based in Lake Forest, Illinois with some 25,000 employees worldwide. The company is one of the world's leading designers, manufacturers and distributors of automotive emission control and ride control products and systems for the automotive original equipment market and the aftermarket. We meet the global sourcing, quality and engineering requirements of our customers from nearly 90 manufacturing, 14 technical and engineering facilities in 24 countries on six continents. http://www.tenneco.com/overview/profile/

About

About

Our Customers Tenneco has a very balanced customer base, serving original equipment manufacturers on a global basis, including General Motors, Ford Motor Co., Volkswagen, Daimler AG, Chrysler, BMW, Fiat, PSA Peugeot Citroen, Toyota, Honda and Nissan. In the aftermarket, we serve more than 500 distributors and retailers, including such familiar names as NAPA, TEMOT Autoteile, ADI, Advance Auto Parts, O'Reilly Automotive, Kwik-Fit Europe, Uni-Select, and Pep Boys.

Our Products

We sell our ride control products primarily under the well-known Monroe® brand, as well as Clevite® Elastomers and Fric Rot™. On the emissions control side of the business, we market our products globally under highly recognized brands like Walker®, Gillet™ and Fonos™ Tenneco is recognized for its advanced technology, high quality products and outstanding customer service. We have earned prestigious industry awards for product innovation and we often receive customer supplier awards.

About QMS

Largest Pure Play QM & Manufacturing Consulting Company in

North America

Unparalleled experience in SAP Quality Management

Focus on using SAP to meet Quality & Regulatory

Deep Industry Experience

• Discrete Industry

• Medical Devices

• Semiconductor & High Tech Electronics

• Aerospace & Defense

• Process Industry

• Consumer Products, Food

• Pharmaceutical & Biotech

• Chemical & Industrial

MRR

Material Rejection Report (MRR)

Created manually by Tenneco employees when a problem is found

with a Supplied part

Legacy Application was developed in Lotus Notes Databases

• Issue Identification

• Debit Memo Creation

Leveraging SRM for Vendor Collaboration

• Deployed in the Enterprise Portal

• Supply Web

• Custom PPAP solution

• Cognos Reports

MRR Painpoints

Material Rejection Report (MRR)

No Collaboration with Suppliers, data from Suppliers entered

manually

• Containment Plan

Data in Lotus Notes database not up to date with SAP

Multiple variations – 2 SAP Instances, Sites without SAP

Debit Memo creation was a manual process

eMRR Project Overview

eMRR is a project to develop a standardized global process for

reporting material non-conformances replacing the NA MRR lotus

notes dB plus the various excel spreadsheets, access dB, lotus

notes dB, and other documentation used internationally

Designed to address Painpoints

Must be web based

Must be able to work in the portal for vendor collaboration

Must be Global

Must compliment the Global QM Project

Benefits

Benefits to be Realized:

Improve and address painpoints in the current MRR Database

Data will be reference from the NA and International SAP instances

being run at Tenneco

For SAP based plants, data will be validated against the current SAP

instances installed

Remove manual effort needed to create debit memos

One global system capturing all supplier related problems

Standardize ppm calculations globally

Choosing a Solution

Not an Easy Decision!

Initial plan was to custom develop a new Webdynpro application

modeled after the PPAP application

While the SOW was being signed, SAP put QIM into Ramp Up

Program

• QMS involved in CuV initiative

• Demo of QIM delivered to team

• QIM chosen as the eMRR system

Decision was made to have QIM as a stand along Netweaver install

• Due mainly to Support Pack requirements for ERP ECC systems

Solution Highlights

QIM eMRR has 1 issue type that allows the following:

• Referencing data in their North America system

• Referencing data in the Europe system

• Reference data in non-SAP systems (not validated)

Added Tenneco eMRR Specific Fields

Reference Objects & Duplicate Check

Assigning Partners to the Issue and Activity

Using BRF Plus to drive dynamic activity determination

Tenneco Specific Fields

• Fields Added to

standard Screen

area through

Configuration

• Dropdown list

added via Domain

• 2 SAP Systems

• QIM system

reference for “non-

SAP” systems

Reference Objects & Duplicate Check

• Scheduling Agreement Reference Objects added based on Purchase

Order

• Show Related Issues Button added to validate against the Vendor,

Material and Defect

Assigning Partners to Issue and Activity

• Issues – Assigned based on a BRF Plus Decision Table

• Activities – Assigned based on the Issue Partners

BRF Plus - Activity Determination

• Using BRF Plus to drive dynamic activity determination

Capturing Costs

• Created a new tab for Debit Memo Activity to capture Debit Memo

Cost

Debit Memo Process

• Person Responsible for the MRR will fill in the fields on the Debit

Memo Cost Tab as needed and go through the appropriate approval

process

• After all approvals are in place the Finance Group will initiate the

Debit Memo creation from QIM

• A Follow-up Action is assigned to an Activity which will be the trigger

to create the Debit Memo in SAP ECC

• After the Debit Memo had been created the Debit Memo number will

be pushed back to QIM to the Debit Memo number field in QIM

• Debit Memo logic also covers error handling (ex. entered wrong Cost

Center or GL account number)

Reporting

Current North America Cognos reports will continue to function

and will be “fed” from QIM

International reports will replace manual reports with an

automated report performing all the necessary calculations

Dashboards in QIM can be customized by the users based on

user defined queries

System Demo

Benefits

Central point of access for managing MRR (Issue) process

Easy work center navigation

Personalization can be done by user

Role based access so now Supplier plays a role in the MRR process

in QIM

Handles multiple SAP Systems for creating Issues

Workflow reminders for completing Activities / Issues which reduces

time for completion

Integration to SAP ECC with reference objects (Purch. Order,

Scheduling Agreement)

BRF Plus decision tables for Activity and Business Partner

determination

Thank you.

THANK YOU

Quality Management Solutions, Inc.

146 Lowell Street, Suite 300B

Wakefield, MA 01880

For Additional information please

Contact us at 800-645-6430

www.QMSINC.com