gme quality assurance management our turnaround in quality peter g. dersley, vice president gme...

GME Quality Assurance Management Our Turnaround in Quality

GME Quality Assurance Management Our Turnaround in Quality

Peter G. Dersley,Vice President GME QualityPeter G. Dersley,Vice President GME Quality

Multibrand-Event

In the 90’sIn the 90’s

Opel’s reputation for Quality – no longer true

Profit maximization at the expense of quality

The decline of a brand

GME at a crossroads

GME’s quality ratings were not good

Multibrand-Event

GME reports back impressively

Product again takes center stage

Strong new models from Rüsselsheim

Success only a question of time if GME maintains this course

GME quality recoveryexceeds expectations

Approaching the presentApproaching the present

Multibrand-Event

Quality pays off – less warranty claimsQuality pays off – less warranty claims

1 Year old cars

MY 1999 MY 2006

65 %

MY 1999 MY 2006

66 %

Num

ber

of

cust

om

er

com

pla

ints

*3 Year old cars

* 3 Years: Model year 2006 Prognosis based on selected warranty data (high mileage cars)

Multibrand-Event

2,6

4,64,5

1,8

4,0

4,3

3,34

2,70

3,60

RenaultAlfaFiatVW

SaabAudi

ToyotaChrysler

SeatMazda

FordSmart

PorschePeugeot

MitsubishiHondaBMW

JaguarSkoda

MercedesVolvoOpel

HyundaiDaihatsu

Subaru

Opel among the best in dealer satisfactionOpel among the best in dealer satisfaction

Source: DSI Study Germany – FAW University Bamberg (5 = best score/very satisfied)

Satisfaction – Overall

2004

2005

2006

– with quality– with model line-up

OPEL

Multibrand-Event

Continuous progress in bi-annualCar Check Study

Continuous progress in bi-annualCar Check Study

Source: Bi-annual Car Check Study / Customer Complaint Index by Model

Opel

Opel

Opel

20032000 2005

Multibrand-Event

Gold Medal for the Meriva in the annual German TÜV Report 2007Gold Medal for the Meriva in the annual German TÜV Report 2007• Meriva scores best among 113 cars across

all segments

• The majority of the GME models improved significantly vs. last year’s report

.

.

.

.

.

.

113

Source: TÜV Report 2007 – Germany

Multibrand-Event

Yes, GME quality recovery has exceeded public expectations Yes, GME quality recovery has exceeded public expectations

What has changed?

What has driven the turnaround in GME quality performance?

What has changed?

What has driven the turnaround in GME quality performance?

Multibrand-Event

Leadership attitude:What must I do to “be the best”?

Transition process in quality awarenessTransition process in quality awareness

Role/Responsibility

Systems/Processes

Culture:Worrying about quality

Culture:Worrying about quality

Leadership attitude:What is the minimum I mustdo to stay out of trouble?

Role/Responsibility

Systems/Processes

Multibrand-Event

Transition process in quality awarenessTransition process in quality awareness

Step 1

Provision of prerequisites

Step 2

Enable transition

People involvement

Capable organizational structures

Capable business processes

Reasonable resources

Clear targets and objectives

Leadership involvement

Coaching and support

No compromises,no excuses

Customer orientation

Multibrand-Event

Quality is defined by customers’ expectationsQuality is defined by customers’ expectationsFundamental dimension of quality:

• Workmanship and finish

• Freedon from faults

• Reliability/durability

• Perceptual quality

QQ

Multibrand-Event

Implementing the GM Global Quality SystemImplementing the GM Global Quality System

ManufacturingManufacturing

SupplierSupplier

DevelopmentDevelopment

AftersalesAftersales

Comprehensive approach covering all areas

Objective

World-class

quality

World-class

quality

Multibrand-Event

First priority was the improvement of initial quality delivered to our customers

First priority was the improvement of initial quality delivered to our customers

1. Rapid Improvement

2. Quality Launches

Today

Model Year

Warr

an

ty

Cla

ims

Past

Setback in quality with model launches

Minor Improvement

Multibrand-Event

Structured problem resolution and tracking process for rapid improvement

Structured problem resolution and tracking process for rapid improvement

Prioritization of problems

Personal accountability

Rapid decision making

Carline specific action plans

Tracking and alert system

Process control

Cornerstonesof the GM-PRTS System

LessonsLearned

Implementation

SolutionFeedback

Confirmation Root Cause

ProblemDetection

Multibrand-Event

Source: GM Global Problem Resolution Tracking System (PRTS)

Higher problem solution throughput

Structured problem resolution and tracking process for rapid improvement

Structured problem resolution and tracking process for rapid improvement

Continuous lead-time reduction until improvement implementation

more than 2000 p.a. Four times faster

Obje

ctiv

e

Multibrand-Event

-1-7 -6 -5 -4 -3 -2

GM Global Launch Process to ensure production readinessGM Global Launch Process to ensure production readiness

Traditional Industry Approach

Start of production

Pilot 1

Pilot LinePilot 2 Pre-

Prod.

Plant Line

• Starting late

• Late plant involvement

• No integrated approach

Months prior to SOP High quality risks through ramp-up of production

-12 -11 -10 -9 -8 -7 -6 -5 -4 -3 -2 -1

GM Global Launch Process

Pilot 1Pre-Pilot Plant Training

Input for optimization

Bucket Build

• Process validation• Training of employees

Stable processes at ramp-up to ensure quality

Multibrand-Event

'93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07

Significant improvement in launch qualityStart-up warranty blips after launch

Significant improvement in launch qualityStart-up warranty blips after launch

Introduction

Global GM Launch Process

Quality level @ run-out of predecessorLaunch peak-successor

Recovery to previous quality level

Warr

an

ty C

ase

s

Source: GME warranty system – total Europe data / Vehicles 2 months in service

Multibrand-Event

Implemented in all assembly plants

Zero defect approach through GM-Global Manufacturing System (GM-GMS)

Zero defect approach through GM-Global Manufacturing System (GM-GMS)

People Involvement

Standardization

Build-In-Quality

Short Lead Time

Continuous Improvement

Elements

Product quality standards

Manufacturing process validation

In-process control & validation

Quality feedback / feedforward

Quality system management

Fundamental GM-GMS

principles

Source: GM Global Manufacturing System (GM-GMS)

Multibrand-Event

Quality Andon System at each work station to ensure Build-In-QualityQuality Andon System at each work station to ensure Build-In-Quality

Correction

Andon CordPreviousproduction step

Don’t acceptany defects

Don’t acceptany defects

Don’t passany defectsDon’t passany defects

Prevent Defects

Followingproduction step

Source: GM Global Manufacturing System (GM-GMS)

Multibrand-Event

In-line quality checks according to the GM Standardized Inspection Process (SIP)

In-line quality checks according to the GM Standardized Inspection Process (SIP)

Body Shop

End ofLine Check

Dyn. Vehicle Testing

WaterTest

FinalCheck

Squeak & RattleTest

Audit

Shipping Check Pre-Delivery Check (Dealer)

Paint Shop

Assembly

Vehicle deliveryto our

customersSource: GM Global Manufacturing System (GM-GMS)

Multibrand-Event

Voice of the Customer Wall in each GME PlantVoice of the Customer Wall in each GME Plant

ExternalQualityResults

> Key Metrics

Follow upon detailswe need

to work on

Multibrand-Event

Implementing the GM Global Quality SystemImplementing the GM Global Quality System

ManufacturingManufacturing

SupplierSupplier

DevelopmentDevelopment

AftersalesAftersales

Comprehensive approach covering all areas

Objective

World-class

quality

World-class

quality

Multibrand-Event

GM Global Supplier Quality Improvement ProcessGM Global Supplier Quality Improvement Process

Continuous Improvement

Performance Monitoring

Problem Reporting / Resolution

Level I Controlled Shipping

Level II Controlled Shipping

Quality Workshops

Improvement Meeting

Global Sourcing

Early Production Containment

Run @ Rate

Production Part Approval

Prototype Sample Approval

Pre-Production Meeting

Advanced Product Q-Planning

Sourcing Decision

Supplier Assessment

16151413121110

9

87654321

Esc

ala

tion

Ste

ps

Problem ResolutionQuality PlanningTime Line

Start of production

Multibrand-Event

Two metrics confirm improved supplier qualityTwo metrics confirm improved supplier quality

'00 '01 '02 '03 '04 '05 '06

Supplier caused quality disruptions

Source: GM Global Quality Tracking System (GM-GQTS)

- 94 %

'00 '01 '02 '03 '04 '05 '06

NOK parts per million delivered

- 87 %

Multibrand-Event

Implementing the GM Global Quality SystemImplementing the GM Global Quality System

ManufacturingManufacturing

SupplierSupplier

DevelopmentDevelopment

AftersalesAftersales

Comprehensive approach covering all areas

Objective

World-class

quality

World-class

quality

Multibrand-Event

Paradigm shift: Use potentials in product designParadigm shift: Use potentials in product design

Reactive Design QualityPredictive Design Quality

Quality Tested InEvolving design

requirementsExtensive design reworkProduct performance by

”build and test”Performance &

“producibility” – problems fixed after product in use

Quality Designed InDisciplined CTC flowdown

Controlled design

parameters

Product performance

modeled and simulated

Designed for robust

performance &

“producibility”

From To

Multibrand-Event

Paradigm shift in product design and developmentParadigm shift in product design and development

In the 90’s – Fix Initial Quality Problems

Current Engineering group established

Statistical problem solving introduced

2000’s – Robust Design (Quality in development) Focus on Long Term Quality and

Perceptual Quality

Design For Six Sigma

Improved validation

Quality function verifies design

Multibrand-Event

Vehicle Line Executive Team: Vital for fast and balanced problem-solving

Vehicle Line Executive Team: Vital for fast and balanced problem-solving

Full responsibility for project deliveries Makes key trade-off decisions

CoreVLE Team

FinanceProduct

EngineeringManufact.

EngineeringQuality

ExtendedVLE Team

FinanceProduct

EngineeringManufact.

EngineeringQuality

Vehicle LineExecutive (VLE)

Multibrand-Event

Quality means more than just defect free cars

Perceptual Quality ProcessPerceptual Quality Process

Styling (Harmonious flowing lines and

contemporary)

Materials (Organic-feel, harmonious and practical)

Ergonomics (Comfortable and understandable at 1st

glance)

Functionality (Usable space as well as Surprise &

Delight)

Good Fit & Finish (Attention to detail and sturdiness)

Multibrand-Event

Perceptual quality... when the senses pipe upPerceptual quality... when the senses pipe up

The new Corsa – a class of his ownCar of the Year 2007(What Car , UK)

Best Small Car(ADAC, Germany)

Family Car of the Year(Belgium)

Autobest 2007 Award(Central / Eastern Europe)

Topauto 2007 Award(Jury: 140 Journalist)

... and others

Multibrand-Event

Implementing the GM Global Quality SystemImplementing the GM Global Quality System

ManufacturingManufacturing

SupplierSupplier

DevelopmentDevelopment

AftersalesAftersales

Comprehensive approach covering all areas

Objective

World-class

quality

World-class

quality

Multibrand-Event

Direct customer feedback to the dealerDirect customer feedback to the dealer

All customer verbatims are scanned and provided

in the Aftersales database.

Dealer

Multibrand-Event

World-class quality approachWorld-class quality approach

ManufacturingManufacturing

SupplierSupplier

DevelopmentDevelopment

AftersalesAftersales

Next Steps /

Opportunities

Next Steps /

Opportunities

Multibrand-Event

Optimization of ... Production Systems... Design Systems

World-class quality approachWorld-class quality approach

Inspectionand Repair

FunctionOrientation

ProblemPrevention> Minimize

in-processdefects

Perfection

> Zero in-process defects

> Fulfillment ofcustomer expectations

Early 90’s

Industry Average Today

Imp

rovem

en

t of

qu

alit

y

and

cust

om

er

sati

sfact

ion

Our

objective GMQuality System