Latent Vendor Selection Project

Cost Competitiveness Improvement (CCI TFT)

Sivaramakrishnan.S

TABLE OF CONTENTS

1 Focus of the Project

FOCUS OF THE PROJECT

SOURCE potential suppliers for localization

Make vendor pool COMPETITIVE

Reduce FOREIGN EXCHANGE impact

STRATEGY

Vendor Selection

Vendor Selection

Vendor Evaluation

Vendor Evaluation

Cost Analysis

Cost Analysis

Vendor Audit

Vendor Audit

Source ApprovalSource

Approval

CCIVD

SQA

CCIVD

VDCCIVD

SQAVD

SOURCE IDENTIFICATION

BENCHMARK competitors of existing suppliers

IDENTIFY potential suppliers visiting Auto Expo

STUDY the list of vendors existing in Automotive Component Manufacturing Association

VENDOR EVALUATION CRITERIA

General

• Industry Experience• Financial Stability• Export & Dom Sales

Turnover• Stable Labor Force• Wide Product Portfolio• Customer List• Quality Certifications• PPM level

Technical

• Any Technical Assistance (TA) ?

• Number & Experience of R&D Engineers

• Investment in R&D• Solution providing

capability• Product & Design

Validation capability

Development

• Capacity Availability• Development Lead Time• Response Time• Testing Capabilities• RM (Local / KD)• Supplier Base• Tool design &

manufacturing capability

NoteNote Meeting Participants : CCI & Vendor Development (VD)Meeting Participants : CCI & Vendor Development (VD)

Initial SuccessTEAM NO OF VENDORS

Engine 15

Chassis 11

Electrical 3

Body 3

Trim 1

Total 33

Shortlisted 62 vendors and screened 33 vendors for localization. Reviewed 33 vendors within 21 days. Within 40 days, I selected 1 global vendor & arranged “TECH SHOW” to display his solution providing capability.

Outcome of Tech Show

Hyundai R&D keen to work on 19 suggestions made from Hyundai Line Walk.1

8 vendors attended the Tech Show. 2 vendors released quotation request (RFQ) the very next day.

2

Overall, vendors have identified 57 parts for localization.3

32 Hyundai import parts have been identified for localization.4