2017 yfai supplier expectations day eu region feb …...cayenne, daimler glc, maserati levante, vw...
TRANSCRIPT
Welcome & Logistics
2017 YFAI Supplier Expectations Day
EU Region – Feb 22nd, 2017
Ioanna Orkopoulou
• Ioanna Orkopoulou
• Manager Procurement Process
3
2016 Supplier Awards / 2017 Expectations Day Agenda
Welcome & Logistics Ioanna Orkopoulou 01:00 – 01:05
Opening Remarks James Bos / Wang Tao 01:05 – 01:15
YFAI Europe Strategic Outlook Joseph Lee 01:15 – 01:30
Innovation at YFAI / Presentation of XIM ´17 Han Hendriks 01:30 – 01:45
Industry 4.0 Michael Schachler 01:45 – 02:00
Cooperation Customer and Supplier Ulrich Dahmen (BMW) 02:00 – 02:30
BREAK 02:30 – 02:50
2016 Award Recipient Recognition Various 02:50 – 04:00
Driving Sustainable Value in Indirect Procurement Eva Kalhotkova (DSSI) 04:00 – 04:05
2017 Supplier Performance Expectations Gunnar Büchter 04:05 – 04:20
BREAK 04:20 - 04:40
Supplier Development Kevin Oprea 04:40 - 04:50
Materials Best Business Practice Dan Middleton 04:50 - 05:05
Risk Management Scott Postma 05:05 - 05:15
Compliance Dr. Christoph Bremkamp 05:15 - 05:25
Concluding Remarks / Q & A James Bos / Wang Tao 05:25 – 05:45
Opening Remarks
2017 YFAI Supplier Expectations Day
EU Region – Feb 22nd, 2017
James Bos/ Wang Tao
• James Bos
• Vice President Procurement
• Wang Tao
• Vice President Procurement
6
Industry Leading Shareholders
Source: Company Information. Data as of November 1, 2016.
Note: 1. By 2015 revenue. 2. On July 2, 2015, Adient completed its global automotive interiors joint venture with Yangfeng Automotive Trim Systems and deconsolidated the contributed interiors business since that date. 3. Segment income is defined as income before
income taxes and non-controlling interests excluding net financing charges, restructuring and impairment costs in accordance with U.S. GAAP, and net mark-to-market adjustments on pension and postretirement plans. 4. SAIC motor has a public float of 15.6% and
HASCO has a public float of 39.5%.
Largest OEM in China
LargestAuto-parts Supplier in China
#16 Largest Globally1
Market Cap
Market Cap
Market Cap
Financial Profile of Shareholders
(HASCO)
US$38.6bn
Debt
US$15.6bn
Cash
US$13.2bn US$47.6bn
Enterprise Value
Sales Volume 2015
4.9mm units
Revenue in 2015
US$105.8bn
Net Income in 2015
US$4.7bn
US$7.7bn
Debt
US$1.5bn
Cash
US$4.0bn US$6.3bn
US$5.5bn
Debt
US$3.6bn
Cash
US$610mm US$4.4bn
Revenue 2015
US$14.5bn
EBITDA in 2015
US$1.0bn
Net Income in 2015
US$0.8bn
LTM Revenue
US18.1bn2
LTM EBITDA
US$1.5bn3
LTM Segment Income
US$1.2bn3
Enterprise Value
Enterprise Value
Listed on Shanghai Stock Exchange4
Listed on Shanghai Stock Exchange4
Listed on New York Stock Exchange
70% 30%
100%
60%
(HASCO)
Largest Seating Company
Globally
#27 Top Automotive Supplier
7
113+ Global Locations
Americas
28 Locations
around 12,000+ Employees
Europe & South Africa
15 Locations
around 8,000+ Employees
Asia Pacific
70 Locations
around 13,000+ Employees
18Countries
33,000Global employees
1Seamless global network
Global HQ
Regional HQ
Tech Center/Innovation center
Plant/office
Business CenterUp to Dec. 2016
Footprint of the facilities highly matched with customers
8
<<<<<<<<<
Yanfeng Automotive Interiors2017 Priorities
Execution Excellence
Internal Restructure
Deliver on Program Launch
and Production Requirements
Innovation
Meet the Demands of the Accelerated Pace
of Interior Design Changes
Differentiation in Product and Process
Sustainable Growth / Continuous Improvement
Lean Methodology / Total Business Approach
8
9
Yanfeng Automotive InteriorsDevelopments over the Past Year - Procurement
Completion of Procurement Level 2 Procedures Globally
Completion of one Global Supplier Standards Manual, Supplier
Assessment Survey, Supplier Award Process
Strengthened Global Sourcing Board ( weekly )
Established Global Risk Management Process
Decision to integrate Supply On as Global Procurement Solution
Achievements in Supplier Performance – SPPM results better than
targets in each Region
Business Integration of Fountain Inn, BJC, and Malaysia Operations
Continued progression of Materials Best Business Practice
Global Structure with Regional Execution
10
YFAI Global Procurement Framework
Objectives
Product Business Support
Commodity and Cost
Understanding
Support
Infrastructure an
Business Model
Objectives
Settin
g ta
rgets
and K
ey P
erfo
rmance M
etric
s ( K
PI )
MBBP /Cost Modeling
Supplierrelations/ mgmt
Commodity strategy
People development, training, resource planning and capability requirements
Negotiating + managingproposals / contracts
Launch support
Under-standing Business Strategy + Planning mgmt(Innovation)
Transactional Processes & Systems Support
Strategic IT( Buyer Efficiency )
People Development
Organization and Decision Rights
Supplier DevelopmentGlobal supply
base strategy
Supplier development
(Pre-award to launch)
Operationssupport
Global Procurement Framework
“Optimal Procured Value, Most Globally Capable Suppliers”Mission
Global Procurement Framework continues as Global Structure
Congratulations to the 2016 Supplier Award Recipients
Yanfeng Europe Strategic OutlookJoseph Lee
2017 YFAI Supplier Expectations Day
EU Region – Feb 22nd, 2017
• Li Liangjun (Joseph Lee)
• Deputy General Manager
Yanfeng Automotive Interiors
Europe
14
Market Environment in Europe
Product Environment
YFAI Environment
Growth
EU Business Awards
EU Footprint expansion
Agenda
15
19.4
20.6
15.2
18.5
17.3
20.1
21.2
14
15
16
17
18
19
20
21
22
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
EU Annual Production Volume2006-2021 (M units)
Russia is not included in EU market
Market EnvironmentProduction Volumes EU
2017 is hopeful to witness a
20M of production volume,
close to that volume summit
at 2007.Europe is recovering from a
double dip recession
showing strong growth last
year and forecast continued
positive growth.
16
Market EnvironmentProduction Volumes
The amount of new models is increasing:
• Daimler just announced to make 8 cars on the new MFA platform
On top, they talk about a certain amount of new electric cars
• VW announced to launch 25 e-cars until 2025 at a volume of 1m units
• BMW started with the i-brand years ago already to launch the first e-cars
with the models i3 and i7. They will grow this segment significantly in the
next few years.
• Opel launches three Insignia versions i.o. one
Increased amount of models will drive
a) Smart manufacturing environment in order to ensure competitive
manufacturing of complex, lower volume versions
b) New solutions for packaging in order to avoid investments
17
Product Environment
Change of the car interior
All OEM‘s announced or are in process of finalizing plans for electric cars.
The electrification of cars drives weight and cost.
• OEM‘s start again looking for weight saving
• Cost of batteries drive down OEM margins and drive up cost per car OEM‘s
try to mitigate impact on purchased components
• Autonomous driving will be a major changer to the automotive interiors
The market requires an increased focus
on innovations. YFAI supports these
innovations: the latest study XiM17
shows 22 innovations ready to sell and
further items wich are under
development
18
YFAI Environment
Growth
We continue to execute
YFAI‘s growth strategy:
After meeting plan of
8.5 billion $US revenue
in 2016, the plan for
2017 is 10 billion $US.
In EU, many customers
are requesting
additional production
capacity for carlines in
production as well as
for carlines to be
launched soon.
0
2
4
6
8
10
12
Revenue [billion $US]
2016 20172016 2017
19
Lüneburg
Zatec
Namestovo
Bratislava
PápaNeustadt
MelfiRocca
Neuss
Cicerale
Trencin
Expansion
Namestovo, SK
Expansion
Papa, HU
Expansion
Zatec, CZ
New Plant South
Bohemia, CZ
YFAI is expanding
our footprint to better
serve our customers
Expanding business
with BMW, Porsche,
Mercedes, Maserati,
and Volkswagen
Major area of focus for our footprint expansion
20
Zatec Hall IV expansion
Source: EU Operations Team
Hall 4 construction is completed
21 Source: EU Operations Team
Status
• Facade and roof construction finished
• Floor construction on going
• Office building construction finished
• Installation of technologies running
Plana nad Luznici – new site setup
22
Plana nad Luznici – new site setup
Source: EU Operations Team
Shopfloor area 1st skin production
Injection moulding areaGas pressure reduction station
23
Papa plant expansion
Source: EU Operations Team
Status:
• Hall construction is finished
• New Silo´s installed
• All IM machines installed
24
YFAI Environment
Main events
Just launched: BMW 5-series
Next launches: Cayenne, Touareg
Besides the above, customers are asking for volume increases on Porsche
Cayenne, Daimler GLC, Maserati Levante, VW Tiguan
Our plant extensions of Žatec, Czech Republik, and Papa are close to being
completed
New YFAI plant setup in progress in Planá nad Lužnicí, Czech Republik and
in Rosslyn, South Africa.
Industry 4.0Dr. Michael Schachler
2017 YFAI Supplier Expectations Day
EU Region – Feb 22nd, 2017
• Dr. Michael Schachler
• Executive Director Industry 4.0
Industry 4.0- Initiative at YFAI “Smart Factory”
Supplier Expectations Day
Düsseldorf, February 22nd, 2017
28
We have passed a technological tipping point
2005
2013
29
Industry 4.0 is the vision for the industrial production of the future – It is enabled by 8 technology drivers
Big Data and Analytics
• Comprehensive evaluation of available data (e.g.,
from ERP, SCM, MES, CRM, and machine data)
• Real-time decision- making, support and
optimization
Advanced Robots
• Autonomous, cooperating industrial robots
• Numerous integrated sensors
• Standardized interfaces
Additive Manufacturing,
e.g., 3D
• 3D printing particularly for
spare parts and prototypes
• Decentralized 3D facilities to
reduce transport distances
and inventory
Augmented Reality
• Augmenting reality for
maintenance, logistics and
all kinds of SOPs
• Additional information
displayed, e.g. in glasses
Cloud and Cyber-security
• Manage huge data volumes in
open systems
• High level of networking
between intelligent machines,
products, and systems leads to
particularly high security
requirements
Industrial Internet
• Network of machines, and
products
• Multidirectional communication
between networked objects
Horizontal/Vertical Integration
• Cross-company data integration
based on data transfer standards
• Pre-condition for fully automated value
chains (from supplier to customer, from
mgmt. to shop floor)
Simulation
• Simulation and optimization of
value networks based on real-time
data from intelligent systems
The eight
Technology
Drivers of
Industry 4.0
Source: The Boston Consulting Group
30
Several trends influence YFAI’s priorities in Industry 4.0E
lec
tric
Veh
icle
5 Megatrends
Driving
Smart Factory
Lower Barrier to Entry
leading to new OEMs
More, less qualified
“drivers”
Smaller transports
Differentiated type of
vehicles, e.g. Segways,
AGVs
Interior more important
Utilization per vehicle will go
up, total demand down
Market Regulation
Labor
Advanced
Manufacturing
Protectionism makes
crossing borders
increasingly difficult
(Global Trade Alert, 2016)
Shortage in skilled labor
around the world:
Brazil (Wharton 2012)
China (WSJ 2016)
India (Reuters 2015)
US (CNBC 2015)
…
Vastly greater
manufacturing
complexity, smaller
lot sizes
Source: YFAI, various
31
What is Industry 4.0 (I4) „Smart Factory“
Industry 4.0 describes the fourth industrial revolution
the mechanization based on steam power,
the mass production through electric power and
the invention of the assembly line
the process automation using electronics and IT.
The goal of Industry 4.0 at YFAI is the “Smart Factory” that is characterized by flexibility,
resource efficiency and ergonomics as well as by the horizontal and vertical integration
of internal and external business partners in automated physical and business
processes and value chains based on current and automatically generated data
Individual customer demands (internal and external) i.e. short term flexibility, the use of
more generally useable equipment (long-term flexibility) the use of large amounts of
data and environmental considerations are important parts of this concept.
Other topics which are typically subsumed under „Industry 4.0“,
like 3D-Printing will be monitored but not pursued actively here.
32
The Smart Factory-Initiative strives for 5 Improvements
“Smart Factories for Smart Interiors” with
I. Improved Manual Labor (Automation)
II. Reduce Single Use Equipment (Design for Manufacturability, Modular
Design)
III. Eliminate Incidents (Robustness)
IV. Reduced Scrap, no Defects (Design and Process Integration)
V. No more Delays (Holistic Program Management and Supply Chain
Integration)
Energy Management
Mechanization
Automation
Quality
Maintenance
Visualization
MESHorizontal Integration
Vertical Integration
Governance
Compliance
33
To ensure focus and progress YFAI takes a strategic view on Smart Factory, launching an initiative
YFAI established a Global Operations Team, including a Smart Factory Initiative
Clear guidelines are developed to provide guidance and ensure effectiveness
Increase automatic Datafication, Automation, Flexibility
Allow for across plant comparison/benchmarking of station/sub-process/process
Increase collection of knowledge and communication
“Industry 4.0 is process automation using electronics and IT to achieve the Smart Factory”
Plant 1 Plant 2 Plant 3
WIKI/Knowledge Base
Discussion Forum/Ops Community/Chat
Data Warehouse/MES Backbone
34
A 3 tiered Set Up will Ensure Peak Performance is Achieved throughout the Organization
Visionary and world leading
showcase to establish us firmly as
leading thought partner for our
customers.
Partner with customers, suppliers
and universities
Guidelines and Standards to
wider organization for driving
Smart Factory around the globe
Targeted pilot projects and
build out of lighthouse plants
in every continent
Achieve world class values in
Safety
Cost
OEE
Scrap
Maintenance
„SF20“
YFI Manufacturing System
Maturity Models
I. Improved Manual Labor
II. Reduce Single Use Equipment
III. Eliminate Incidents
IV. Reduced Scrap, no Defects
V. No more Delays
Award Ceremony
Yanfeng Automotive Interiors Supplier
Expectations Day
Feb 22nd, 2017
Supplier ExcellenceService
37
Supplier Excellence - Service
2017 YFAI Supplier Expectations Day
• Verena Weigand
• Senior Manager Procurement
Business Unit &
• Financial Risk Management
39
Supplier Excellence - ServiceCIE Plasfil
2017 YFAI Supplier Expectations Day
40
Supplier Excellence - ServiceCIE Plasfil
2017 YFAI Supplier Expectations Day
41
Supplier Excellence - ServiceCIE Plasfil
2017 YFAI Supplier Expectations Day
42
Supplier Excellence - ServiceCIE Plasfil
2017 YFAI Supplier Expectations Day
43
Performance Awards: BronzeCoatex NV
Congratulations!
• Houda Mounib
• Manager Procurement
Commodity Specialist
45
Supplier Excellence - ServiceHalung GmbH & Co. KG
2017 YFAI Supplier Expectations Day
46
Supplier Excellence - ServiceHalung GmbH & Co. KG
2017 YFAI Supplier Expectations Day
47
Supplier Excellence - ServiceHalung GmbH & Co. KG
2017 YFAI Supplier Expectations Day
48
Supplier Excellence - ServiceHalung GmbH & Co. KG
2017 YFAI Supplier Expectations Day
49
Performance Awards: BronzeCoatex NV
Congratulations!
• Stanislava Slezacek
• Manager Procurement
Commodity Specialist
51
Supplier Excellence - ServiceSurtechno n.v.
2017 YFAI Supplier Expectations Day
52
Supplier Excellence - ServiceSurtechno n.v.
2017 YFAI Supplier Expectations Day
53
Performance Awards: BronzeCoatex NV
Congratulations!
• Lucia Hrusovska
• Buyer Indirect Procurement
55
Supplier Excellence - ServiceDSSI International, LLC
2017 YFAI Supplier Expectations Day
56
Supplier Excellence - ServiceDSSI International, LLC
2017 YFAI Supplier Expectations Day
57
Performance Awards: BronzeCoatex NV
Congratulations!
Supplier ExcellenceQuality
• Simon Pella
• Manager Procurement
• Supplier Development
60
Supplier Excellence – QualitySFS intec GmbH
2017 YFAI Supplier Expectations Day
61
Supplier Excellence – QualitySFS intec GmbH
2017 YFAI Supplier Expectations Day
62
Supplier Excellence – QualitySFS intec GmbH
2017 YFAI Supplier Expectations Day
63
Supplier Excellence – QualitySFS intec GmbH
2017 YFAI Supplier Expectations Day
64
Performance Awards: BronzeCoatex NV
Congratulations!
Supplier ExcellenceCustomer Satisfaction
• Michael Wolf
• Manager Procurement
Commodity Specialist
67
Supplier Excellence – Customer SatisfactionMürdter Werkzeug- und Formenbau GmbH
2017 YFAI Supplier Expectations Day
68
Supplier Excellence – Customer SatisfactionMürdter Werkzeug- und Formenbau GmbH
2017 YFAI Supplier Expectations Day
69
Supplier Excellence – Customer SatisfactionMürdter Werkzeug- und Formenbau GmbH
2017 YFAI Supplier Expectations Day
70
Supplier Excellence – Customer SatisfactionMürdter Werkzeug- und Formenbau GmbH
2017 YFAI Supplier Expectations Day
71
Performance Awards: BronzeCoatex NV
Congratulations!
Supplier ExcellenceInnovation
• Dr.-Ing. Oliver Becker
• Executive Director Process
Innovation
• Advanced Product Development
& Sales
74
Supplier Excellence – InnovationBeaulieu Fibres International
2017 YFAI Supplier Expectations Day
75
Supplier Excellence – InnovationBeaulieu Fibres International
2017 YFAI Supplier Expectations Day
76
Supplier Excellence – InnovationBeaulieu Fibres International
2017 YFAI Supplier Expectations Day
77
Supplier Excellence – InnovationBeaulieu Fibres International
2017 YFAI Supplier Expectations Day
78
Supplier Excellence – InnovationBeaulieu Fibres International
2017 YFAI Supplier Expectations Day
79
Performance Awards: BronzeCoatex NV
Congratulations!
Distinguished Supplier
81
Distinguished Supplier
2017 YFAI Supplier Expectations Day
• Raja Ott
• Manager Procurement
Commodity Specialist
83
Distinguished SupplierTotal Research & Technology Feluy
2017 YFAI Supplier Expectations Day
84
Distinguished SupplierTotal Research & Technology Feluy
2017 YFAI Supplier Expectations Day
85
Distinguished SupplierTotal Research & Technology Feluy
2017 YFAI Supplier Expectations Day
86
Performance Awards: BronzeCoatex NV
2016 YFAI Supplier Expectations Day
Congratulations!
• Sergey Kolmagorov
• Manager Procurement
Commodity Specialist
88
Distinguished SupplierLübke & Vogt GmbH & Co. KG
2017 YFAI Supplier Expectations Day
89
Distinguished SupplierLübke & Vogt GmbH & Co. KG
2017 YFAI Supplier Expectations Day
90
Distinguished SupplierLübke & Vogt GmbH & Co. KG
2017 YFAI Supplier Expectations Day
91
Performance Awards: BronzeCoatex NV
2016 YFAI Supplier Expectations Day
Congratulations!
• Christian Theile
• Senior Buyer Business Unit
93
Distinguished SupplierDr. Schneider Kunststoffwerke GmbH
2017 YFAI Supplier Expectations Day
94
Distinguished SupplierDr. Schneider Kunststoffwerke GmbH
2017 YFAI Supplier Expectations Day
95
Distinguished SupplierDr. Schneider Kunststoffwerke GmbH
2017 YFAI Supplier Expectations Day
96
Performance Awards: BronzeCoatex NV
2016 YFAI Supplier Expectations Day
Congratulations!
• Fabian Joost
• Buyer Business Unit
98
Distinguished SupplierIzoblok S.A.
2017 YFAI Supplier Expectations Day
99
Distinguished SupplierIzoblok S.A.
2017 YFAI Supplier Expectations Day
100
Distinguished SupplierIzoblok S.A.
2017 YFAI Supplier Expectations Day
101
Performance Awards: BronzeCoatex NV
2016 YFAI Supplier Expectations Day
Congratulations!
• Niclas Schumann
• Senior Buyer Business Unit
103
Distinguished SupplierTR Fastenings Ltd.
2017 YFAI Supplier Expectations Day
104
Distinguished SupplierTR Fastenings Ltd.
2017 YFAI Supplier Expectations Day
105
Distinguished SupplierTR Fastenings Ltd.
2017 YFAI Supplier Expectations Day
106
Distinguished SupplierTR Fastenings Ltd.
2017 YFAI Supplier Expectations Day
107
Performance Awards: BronzeCoatex NV
2016 YFAI Supplier Expectations Day
Congratulations!
Supplier of the Year
109
Supplier of the year
2017 YFAI Supplier Expectations Day
• Lenka Fuskova
• Manager Procurement
Commodity Specialist
111
Supplier of the yearAlgontec S.L.
2017 YFAI Supplier Expectations Day
112
Supplier of the yearAlgontec S.L.
2017 YFAI Supplier Expectations Day
113
Supplier of the yearAlgontec S.L.
2017 YFAI Supplier Expectations Day
114
Supplier of the yearAlgontec S.L.
2017 YFAI Supplier Expectations Day
115
Performance Awards: BronzeCoatex NV
Congratulations!
• Alexander Herzog
• Senior Buyer Business Unit
117
Supplier of the yearHOEKO Automotive s.r.o.
2017 YFAI Supplier Expectations Day
118
Supplier of the yearHOEKO Automotive s.r.o.
2017 YFAI Supplier Expectations Day
Handling with Poka
Yoke
Cooling and
compressors
5S work desks
Piovan drying equipment Tooling & visualization
119
Supplier of the yearHOEKO Automotive s.r.o.
2017 YFAI Supplier Expectations Day
Clear standardsAutomatization of 100%
assembling componentsUp to 1.000 ton machines
Flocking Process
120
Supplier of the yearHOEKO Automotive s.r.o.
2017 YFAI Supplier Expectations Day
121
Performance Awards: BronzeCoatex NV
Congratulations!
• Claudia Rauhe
• Senior Manager Procurement
Commodity
123
Supplier of the yearBASF Polyurethanes GmbH
2017 YFAI Supplier Expectations Day
124
Supplier of the yearBASF Polyurethanes GmbH
2017 YFAI Supplier Expectations Day
125
Supplier of the yearBASF Polyurethanes GmbH
2017 YFAI Supplier Expectations Day
126
Performance Awards: BronzeCoatex NV
Congratulations!
127
Supplier of the yearBASF Polyurethanes GmbH
2017 YFAI Supplier Expectations Day
Driving Sustainable Value in Indirect ProcurementEva Kalhotkova - DSSI
2017 YFAI Supplier Expectations Day
EU Region – Feb 22nd, 2017
Driving Sustainable Value in Indirect Procurement
© 2016 DSSI all rights reserved 129
The Big Idea
Sharp Sourcing | © 2016 DSSI all rights reserved 130
© 2016 DSSI all rights reserved 13
1
DSSI Background
• DSSI currently sources,
manages and or processes
MRO spend in excess of $500
million.
• DSSI’s beginnings go back to
the early 1990’s
• DSSI supports client
locations throughout the US,
Mexico, Canada and Europe.
Spend Aggregation and Supplier Negotiation in Indirect Materials
© 2016 DSSI all rights reserved 132
MRO BUSINESS
BASICS
INFORMATION
TECHNOLOGY
CHEMICALS SUPPORT
SERVICES
Achieve Big Savings Quickly in Specific Categories with DSSI’s
Sharp Sourcing Bids
Item master sourced content database and
catalog for managing the buy
Item level detailed sourcing contract
management
Best price, from best source, every time you buy the item for every user at every site
Manufacturer Name and Part Number for each item
Defined service level expectations for each site and performance measures
to support these requirements
DSSI Cleans Up the Cloudy and Complex Picture
© 2016 DSSI all rights reserved 133
Sharp Sourcing 2017 Bid Schedule
Sharp Sourcing | © 2016 DSSI all rights reserved 134
Safety
Gloves
Ear Protection
Sleeves
Glasses
Tools
Hammers
Pliers
Screwdrivers
Drills
Electric
Sensors
Cables & Wires
Connectors
Plugs
Switches
Janitorial
Tissues
Soaps
Hand cream
Deliverables
Access to new
contract pricing that
is an average of 10-
15% lower than your
current pricing
Sharp Sourcing | © 2016 DSSI all rights reserved 135
Vital benchmarking data on
your current pricing versus
similar companies and
DSSI’s aggregated price
Increase Supply
Base Visibility and
Management
Contact Eva Kalhotkova
Thank you!
Sharp Sourcing | © 2016 DSSI all rights reserved 136
2017 Supplier Performance ExpectationsGunnar Büchter
2017 YFAI Supplier Expectations Day
EU Region – Feb 22nd, 2017
• Gunnar Büchter
• Director Procurement
Europe & South Africa
139
What are our expectations in 2017?
• Quality
• Commercial
• New Business Launch
• Supply Chain
• Tooling and Capex
• Risk Management
• IT - Changes
140
What are our expectations on Quality in 2017?
• Achieve 0 PPM and 0 incidents. Ensure YOY improvement in PPM and incidents
• No Management Quality Reviews, no customer disruptions, no product safety
issues (PPSC’s)
• Meet the new IATF 16949 Standard
• Achieve ISO 14001 certification. Minimum expectation is to meet all safety and
environmental requirements of the local government
• Be responsive and collaborative. Onsite service for your plant customers
• Drive continuous improvement within your products and process
• Ensure compliance to the YFAI Global Supplier Standards Manual
141
Supplier
Plant
Maintenance / Process Team
Plant Logistics
Plant Finance Team
Plant Management
Responsiveness and Collaboration: Involve your final customer early enough
Clear relationship´s with the receiving
plants, avoid any misunderstandings,
escalation´s and other issues. Assure
earliest engagement. Specifically in
regard to new plants or new launches.
Accelerate your time to respond,
especially in case of emergency and
define a recovery process for
escalations especially during the
weekend´s.
Develop support strategies for eastern
European plant environments, they
need more speed and enhancement.
142
• Full commitment to YFAI’s MBBP preferred partnership strategy
• Full commitment to strong Continuous Improvement approach and partnership
with YFAI to achieve MBBP/PACT cost targets
• 100% on time Quote responsiveness to required due dates
• 100% on time SSOW responsiveness to required due dates
• Provide accurate, detailed quotes incl. pricing per piece and detailed tooling
cost breakdowns
• Provide Best Cost position for Pursuit and Awarded business upfront
What are our 2017 Commercial expectations?
143
• Timely completion of APQP
• Demonstrated Process Sign Off (PSO) and Run at Rate (R@R)
• PPAP on time, PPAP first time through
What’s our expectation on Launches in 2017?
144
Launch:Perform Run@Rate at the right time with volume
Run@Rate with low volume does not
help to detect failure influences. We
need to test the whole system !
Run@Rate documentation needs to
include real scrap rate and downtime.
Shifts need to be fully trained on time!
Measurement capacity and gauge
availablility is a must for Run@Rates.
Direct feedback about IO Parts needed.
145
• ASN/EDI capable
• Proactive notification for delivery/capacity constraints
• Premium expectation for delivery misses
• The correct paperwork, Customs declaration and Label standards
• Adherence to packaging U-Spec requirements and logistical routings
What’s our expectation on Supply Chain in 2017?
146
Supply Chain: Anticipate ramp up scenario´s in launches
Anticipate higher premium content within
ramp up of programs (leather, chrome, etc.)
Alignment with local customers (plants) is
required and needs to be updated on-time,
offer feedback if call-offs do not make sense.
Overseas pipeline (if you produce overseas)
replenishment needs to be highlighted to the
plant logistics team (6 weeks)
Customer call-offs will change, make sure you
are ready and have enough stock in place!
147
• Review Technical Specifications and product designs for critical data and accuracy
• *Best Cost* (up front)
• Timely turn around of quotations (2-8 working days depending on complexity)
• Provide accurate detailed quotes in the requested format.
• Provide detailed timelines that match the quoted lead-times
• Real time communication of potential delays
• Support engineering changes (48 hour quote turnaround)
• Escalate and document any issues / push back when critical
• Strong technical support at machine commissioning events (on schedule)
• Local technical support is mandatory for complex equipment and tooling.
What are our Tooling & Capex expectations for 2017?
148
Early Involvement in Development Process: Product and Process Supplier Involvement in SDT
During Acquisition and the
Product Definition Phase,
specific suppliers are invited to
join SDT´s to provide the input
for the Product / Process
Alignment to identify the best
total cost per application
Cost Targets to be discussed at
each project kickoff. Open Book
Policy to be agreed. MBBP
suppliers should be preferred to
join the teams.
Edge Wrapping Process
Glue
Cutting
Leather
Texile
Backing
Substrate
149
Supplier Expectations DayIT Landscape changes
• Introduction of a new ERP Sytem for the areas of Production, Finance and
Procurement
• EU Pilot Plants 2017
• Production Plants Neustadt and Namestovo
• Shared Service Center Bratislava
• Engineering Center Trencin
• Rollout to all EU plants until July 1st 2018
• Suppliers will be effected by new Supplier numbers, PO and SA numbers
• EDI connections will need to be updated
150
Supplier Expectations DayIT Landscape changes
• YFAI will introduce SupplyOn as Sourcing Collaboration Platform globally
• About SupplyOn
• Leading Supplier Collaboration Platform that is connecting buyers and suppliers on
one platform
• Focused on Automotive, Aerospace and Rail
• 40 Buy side Customers including Airbus, Bosch, Continental, Siemens, ZF
• 40.000 suppliers connected
• What is expected from YFAI Suppliers?
• Register on SupplyOn – book connect “Sourcing Manager” with YFAI
• Appoint company administrator and users
• Receive eRFQ´s and submit quotes to YFAI via SupplyOn Sourcing Manager
• YFAI will start using SupplyOn to source Direct Material and select Indirect
Materials with Pilot Projects as of July 2017.
• SupplyOn will support YFAI and strategic suppliers with onboarding & training
151
2016 Supplier Awards / 2017 Expectations Day Agenda
Welcome & Logistics Ioanna Orkopoulou 01:00 – 01:05
Opening Remarks James Bos / Wang Tao 01:05 – 01:15
YFAI Europe Strategic Outlook Joseph Lee 01:15 – 01:30
Innovation at YFAI / Presentation of XIM ´17 Han Hendriks 01:30 – 01:45
Industry 4.0 Michael Schachler 01:45 – 02:00
Cooperation Customer and Supplier Ulrich Dahmen (BMW) 02:00 – 02:30
BREAK 02:30 – 02:50
2016 Award Recipient Recognition Various 02:50 – 04:00
Driving Sustainable Value in Indirect Procurement Eva Kalhotkova (DSSI) 04:00 – 04:05
2017 Supplier Performance Expectations Gunnar Büchter 04:05 – 04:20
BREAK 04:20 - 04:40
Supplier Development Kevin Oprea 04:40 - 04:50
Materials Best Business Practice Dan Middleton 04:50 - 05:05
Risk Management Scott Postma 05:05 - 05:15
Compliance Dr. Christoph Bremkamp 05:15 - 05:25
Concluding Remarks / Q & A James Bos / Wang Tao 05:25 – 05:45
Flawless ExecutionSupplier Development/ Supplier QualityKevin Oprea
2017 YFAI Supplier Expectations Day
EU Region – Feb 22nd, 2017
• Kevin Oprea
• Director Procurement
• Supplier Development
154
Agenda
2016 Overview
YFAI Global Supplier Standard Manual
Flawless Execution / Key Points
2017 Expectations
2017 YFAI Supplier Expectations Day
155
What did we observe?
19 SPPM for Controlled suppliers (down from FY15)
6 Management Quality Reviews (down from FY15)
0 MQR3 level and NBH (same as FY15)
0 PPSC’s (same as FY15)
YF SD Performed 137 supplier on site audits / visit
14 Rating Improvements (R>Y>G) of SAS audits,
focusing on strategic suppliers
2016 OverviewThings gone right – FY 2016
2017 YFAI Supplier Expectations Day
156
What did we observe?
Directed suppliers PPM went up 50% (number of
rejects are 20% bigger than controlled suppliers
for shipping quantities 5 times smaller)
Feasibility Commitment not properly used
Timing not always respected
(especially tool tracking)
Continue to see lack of resources especially in
Program Management and EE childs
Onsite support in YF plants is still lacking
Run at Rates and OEE not properly prepared
Too many surprises as the notification process
for changes was not followed
2016 OverviewOpportunities for improvement
2017 YFAI Supplier Expectations Day
157
NEW Global Supplier
Standards Manual released
January 3, 2017
Global Supplier Standards ManualNew Release
2017 YFAI Supplier Expectations Day
158
Highlights
One manual one file > prior version was
broken in 4 different files
Expanded APQP section which provides
clear expectations that ensure flawless
execution and perfect PPAP’s
Expanded expectations of sub-supplier
management
Comprehensive expectations for managing
day to day quality and interactions with
YFAI plants
New YFAI supplier award types and criteria
outlined
Valid for all regions
Global Supplier Standards ManualNew Release
2017 YFAI Supplier Expectations Day
159
Where can I find it?
Announcement and file are posted to
www.yfai.com in the Suppliers section
All new website coming in 2nd Quarter
Global Supplier Standards ManualNew Release
2017 YFAI Supplier Expectations Day
160
What can be done better to ensure flawless execution?
Feasibility form added to SSOW, use it and be vocal !
Understand & Respect the customer requirements
Participate early with SDT and be onsite for slow builds
MANDATORY Launch Containment plans; successful Run@Rates and
OEE’s. Protect us !
We expect PPAP perfection (timing and content).
Has your team ever been trained (AIAG/VDA/Formel Q) and is aware
of customer specific requirements ?
Manage your sub-suppliers; incoming inspection, audits, continuous
improvement.
Service your plant customers; ensure up to date contact information,
escalation matrix, go and see!
Supplier Change Request: Remember 3 things; FORM, TIME, QUALITY
MANAGER
Flawless ExecutionKey points
2017 YFAI Supplier Expectations Day
161
What We Need from You FY17
Drive towards 0 PPM
No Management Quality Reviews (MQR)
100% on-time deliveries
Help our plants succeed ! Onsite support to see the issue first hand and
ensure you understand critical needs
Real root cause or fake news? Show me the data !
Supplier Change Request Process: FORM, TIME, QUALITY MANAGER
Proactive APQP to achieve on time PPAP perfection
Focus on prevention as opposed to reaction, early involvement
Containment / Boundaries / Appearance parts
Ensure alignment to new IATF 16949 standard
2017 Expectations
2017 YFAI Supplier Expectations Day
Supplier RiskManagementScott Postma
2017 YFAI Supplier Expectations Day
EU Region – Feb 22nd, 2017
• Scott Postma
• Director Procurement
• Commodity Resin &
• Financial Risk Management
164
165
Risk Management Team Structure
Global/NA Director
Scott Postma
Holland, MI
EU Risk Manager
Verena Weigand
Munich, Germany
Sr. Risk Analyst
Sona Bojnanska
Bratislava, Slovakia
Risk Analyst
Lenka Buriankova
Bratislava, Slovakia
AP Risk Manager
Pan Yuru
Shanghai, China
166
Global Market – December 2016
167
EU Automotive Market Conditions
15.5
14.3 14.213.4 13.1
12.1 11.912.5
13.714.6
0
4
8
12
16
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EU Country Vehicle Registrations
Reg
istr
ati
on
s (
Mil
lio
ns
)
+23% since 2013
Key Market Factors Western EU countries provided strong start to 2017, expect to moderate
Economic growth of 1.5% YoY
Aging fleet – 10 years vs 8.5 years last decade
Expect flat to +1-3% growth for 2017
Political uncertainties could impact consumer confidence
168
Risk Management Scope
Preventive Intensive Care Special Projects
Watch List Work-Out List Projects
Financial Ratings Strategy Targeted Initiatives
Commodity Strategy Project Management
169
Rating Tool - 3PI by KPMG
17 Ratio’s clustered in 4 categories
Profitability (Cash flow, Operating Profit)
Efficiency (DPO, DIO, DSO, etc.)
Liquidity (Cash-to-cash cycles, etc.)
Leverage (Debt levels, etc.)
3PI is
Globally standardized (web based)
Accepted in the industry
Transparent to both parties
Easy, current, confidential, free
170
Risk Assessment Process
Current Scope: Direct Material and Tooling/Capex Suppliers to NA/EU regions
Indirect/Logistics at discretion of team
Implementing in AP region in 2017. Focus on Direct Material suppliers.
Evaluate each legal entity or require parental commitment
Suppliers submit minimum 2x per year
Confirm submitted templates with independently reviewed statements
Condition of controlled/directed supplier sourcing
Supplier information confidential to RM team. R/Y/G rating provided to buyers
Yanfeng Global ComplianceDr. Christoph Bremkamp
2017 YFAI Supplier Expectations Day
EU Region – Feb 22nd, 2017
• Dr. Christoph Bremkamp
• Director Legal Europe
173
Sustainable Growth
Sustainable growth is a key element of our company values. A keen sense of
entrepreneurial responsibility that’s intensely focused on sustainability is a key
pillar of our company strategy. Profitable long-term growth is our aim, and
responsible value creation is paving the way for our success.
Our Code of Conduct lays the foundation in dealing with customers, suppliers,
employees, competitors and the public with integrity and in an ethical and
appropriate manner.
Labor
Health and Safety
Environmental
Social Responsibility
Risk Management
Conflict Minerals
Ethics
174
Integrity & Compliance
Zero tolerance for non-compliant behavior
We conduct our business responsibly in compliance with all of the laws and
regulations in the countries where we do business. The company does not
tolerate illegal and unethical behavior.
We have one Code of Conduct globally. We expect ALL of our employees,
partners and agents to behave ethically and obey the local laws and regulations
where we do business.
The Guiding Principles contained in the Code of Conduct form the basis of our
relationships with our employees, business partners, customers and competitors.
175
Guiding Principals
1. We obey the laws and regulations of all countries where
we conduct business and comply with our company’s
policies and procedures.
2. We do not tolerate corruption in our businesses.
3. We ensure our records are accurate, complete and
appropriately maintained and our internal controls
sound.
4. We do not use illegal or unethical means to gain an
advantage over a competitor.
5. We comply with international trade laws.
6. We protect the privacy of individuals
7. We act in the Company’s best interests at all times.
8. We safeguard the health and safety of our employees.
9. We use company assets responsibly and honorably.
10. We protect the Company’s confidential information
and respect that of our customers and competitors.
11. We are committed to providing safe and high-
quality products and services.
12. We value diversity and equal treatment in our
workplace.
176
Guiding Principals
1. We obey the laws and regulations of all
countries where we conduct business and
comply with our company’s policies and
procedures.
2. We do not tolerate corruption in our
businesses.
3. We ensure our records are accurate,
complete and appropriately maintained and
our internal controls sound.
4. We do not use illegal or unethical
means to gain an advantage over a
competitor.
5. We comply with international trade laws.
6. We protect the privacy of individuals
177
Guiding Principals
7. We act in the Company’s best interests
at all times.
8. We safeguard the health and safety of our
employees.
9. We use company assets responsibly and
honorably.
10.We protect the Company’s confidential
information and respect that of our
customers and competitors.
11.We are committed to providing safe and
high-quality products and services.
12.We value diversity and equal treatment in
our workplace.
178
Partnership
Common Goals
Mutual Trust
Risk Sharing
Long-term Cooperation
Just as YFAI may be liable for
misconduct of our business partners your
company may be liable for the
misconduct of your supply base!
179
Integrity Help Line
The YFAI Integrity Help Line is an avenue for employees or
third parties to report any Code of Conduct violation or to
report any unethical behavior of a YFAI employee.
The Helpline is available either via phone or web in all local
languages.
A dedicated team looks into these issues / reports and
deals with them based on the merits of the case.
The reporter has the option to remain anonymous if he /
she so chooses.
The Helpline complies with all EU data privacy rules.
Access to the Help Line: www.yfai.ethicspoint.com
By phone:
400-820-1938
000-117
Dial 855-831-3125
0066-33-830645/
00531-11-0414/
0034-800-600286
1-855-831-3125
1-855-831-3125
001-844-291-1779
0-800-225-5288
Dial 855-831-3125
800-144-254
0-800-000-101
Dial 855-831-3125
800-787814
900-99-0011
Dial 855-831-3125
0800-980-905
06800-21139
180
Integrity Help Line
The YFAI Integrity Help Line is an avenue
for employees or third parties to report any
Code of Conduct violation or to report any
unethical behavior of a YFAI employee.
The Helpline is available either via phone
or web in all local languages.
A dedicated team looks into these issues /
reports and deals with them based on the
merits of the case.
The reporter has the option to remain
anonymous if he / she so chooses.
The Helpline complies with all EU data
privacy rules.
181
Integrity Help Line
Access to the Help Line: www.yfai.ethicspoint.com
By phone:
400-820-1938
000-117 Dial 855-831-3125
0066-33-830645/ 00531-11-0414/ 0034-800-600286
1-855-831-3125
1-855-831-3125
001-844-291-1779
0-800-225-5288 Dial 855-831-3125
800-144-254
0-800-000-101 Dial 855-831-3125
800-787814
900-99-0011 Dial 855-831-3125
0800-980-905
06800-21139
182
ThinkRecognize the warning signs
Escalate your concerns.
Act
Ask about questionable actions
Question ActEscalate your concerns