North American North American Lighting and TQMLighting and TQM

Kevin BlatnikKevin Blatnik

My BackgroundMy Background 1998: Graduated from EIU with BSIT1998: Graduated from EIU with BSIT Went to work for Navistar International Went to work for Navistar International

as a Design Engineeras a Design Engineer 2000: Came to word for North American 2000: Came to word for North American

Lighting as a Manufacturing EngineerLighting as a Manufacturing Engineer 2003: Became an Industrial Engineer 2003: Became an Industrial Engineer

with NALwith NAL 2004: Graduated from EIU with MST and 2004: Graduated from EIU with MST and

a Certificate in Quality Systemsa Certificate in Quality Systems 2005: Promoted to Sr. Industrial Engineer2005: Promoted to Sr. Industrial Engineer

Background of NALBackground of NAL Established in 1983 in Flora, IllinoisEstablished in 1983 in Flora, Illinois Subsidiary of Koito, the world’s largest Subsidiary of Koito, the world’s largest

supplier of Automotive Lightingsupplier of Automotive Lighting $500 Million in sales annually$500 Million in sales annually Employ’s 2500 people in 6 facilitiesEmploy’s 2500 people in 6 facilities 4 Manufacturing Facilities4 Manufacturing Facilities

– Flora, Illinois: Forward LightingFlora, Illinois: Forward Lighting– Salem, Illinois: Rear and Secondary LightingSalem, Illinois: Rear and Secondary Lighting

Background of NALBackground of NAL

– Paris, Illinois: High Quality Forward Paris, Illinois: High Quality Forward LightingLighting

– Muscle Shoals, Alabama: High Muscle Shoals, Alabama: High Quality Rear and Secondary LightingQuality Rear and Secondary Lighting

Design group located in Design group located in Farmington Hills, MichiganFarmington Hills, Michigan

Corporate Headquarters located Corporate Headquarters located in Paris, Illinoisin Paris, Illinois

Preferred Business Preferred Business Management SystemManagement System A quality management systemA quality management system Management responsible to create and maintain Management responsible to create and maintain

documents to ensure customer qualitydocuments to ensure customer quality– Preparation of quality plansPreparation of quality plans– Identification and acquisition of any controls, Identification and acquisition of any controls,

processes, equipment, fixtures, resources, and skills processes, equipment, fixtures, resources, and skills needed to achieve the required quality needed to achieve the required quality

– Ensure the compatibility of design, production process, Ensure the compatibility of design, production process, installation, inspection, and test procedures and the installation, inspection, and test procedures and the applicable documentation applicable documentation

– Update as necessary the quality control, inspection Update as necessary the quality control, inspection and testing techniques, including development of new and testing techniques, including development of new instructions instructions

– Identification and preparation of quality records Identification and preparation of quality records It is a continuously changing processIt is a continuously changing process

Preferred Business Preferred Business Management SystemManagement System Specific areas of the SystemSpecific areas of the System

– Quality ManualQuality Manual Manual spells out all international standards as Manual spells out all international standards as

well as NAL standardswell as NAL standards Direct correlation between Direct correlation between

ISOO9001:2000/TS16949:2002 ISOO9001:2000/TS16949:2002 – Control of Documents Control of Documents

All documents have to go through an approval All documents have to go through an approval processprocess

All documents are stored in one central All documents are stored in one central controlled locationcontrolled location

Preferred Business Preferred Business Management SystemManagement System

– Engineering SpecificationsEngineering Specifications All Engineering changes have to go through and All Engineering changes have to go through and

approval processapproval process All changes are recorded and stored in a central All changes are recorded and stored in a central

locationlocation– Control of Records Control of Records – Records Retention Records Retention

Quality records for production part approvals, Quality records for production part approvals, tooling, purchase orders, and amendments will be tooling, purchase orders, and amendments will be maintained for a length of time equal to the time maintained for a length of time equal to the time that the item(s) is active plus one calendar year that the item(s) is active plus one calendar year

Customer FocusCustomer Focus

Customer FocusCustomer Focus Performance Performance

Indicators provided Indicators provided by the customerby the customer

Results are plotted Results are plotted and verified to our and verified to our goalsgoals– Green: Meets targetGreen: Meets target– Yellow: MarginalYellow: Marginal– Red: Does not meetRed: Does not meet

BMW PERFORMANCEREPORT

Q.A.REPRESENTATIVE:

CUSTOMER REPORTPERIOD:

Sep-99

NAL LOCATION: Flora / Salem

GREEN

Meets Objectives.YELLOW

Marginally meets objectives.RED Does not meet objectives.

AREA TARGET

PERFORMANCE

1.Procurement

26.4 27.0

2. Quality 27.2 28.0

3.Logistics

26.4 27.0

4. Overall 80.0 82.0

12 MONTH ROLLINGDATA

Oct-98 Nov-98 Dec-98 Jan-99 Feb-99 Mar-99 Apr-99 May-99 Jun-99 Jul-99 Aug-99 Sep-99

1.Procurement

27 28 27 29 27 28 27 29 30 30 27 27

2. Quality 27 27 27 28 28 29 29 29 30 30 28 28

3.Logistics

27 27 27 27 27 27 28 27 27 27 27 27

4. Overall 81 82 81 84 82 84 84 85 87 87 82 82

Customer FocusCustomer Focus On-site QRE’s (Quality Resident On-site QRE’s (Quality Resident

Engineer)Engineer)– Improves relationship with the Improves relationship with the

customercustomer– Located on site at major customer sitesLocated on site at major customer sites– Troubleshoot quality issues prior to Troubleshoot quality issues prior to

contacting production facilitycontacting production facility– Try to put out fires earlyTry to put out fires early

Supplier DevelopmentSupplier Development PurchasingPurchasing

– Procure components and raw Procure components and raw materials of superior quality and materials of superior quality and reliability that exceeds customer reliability that exceeds customer expectations on a global basis expectations on a global basis

– Purchasing Management will invest Purchasing Management will invest time and effort to understand time and effort to understand business culture and importance of business culture and importance of customer support at all levels of a customer support at all levels of a given organization given organization

Supplier DevelopmentSupplier Development Supplier Quality Assurance Supplier Quality Assurance

Manual (SQAM)Manual (SQAM)– All suppliers receive a copy of this All suppliers receive a copy of this

documentdocument– Spells out all of NAL’s Quality Spells out all of NAL’s Quality

expectationsexpectations– Supplier Quality Engineers (SQE) are Supplier Quality Engineers (SQE) are

assigned to suppliers to help them assigned to suppliers to help them along with our requirementsalong with our requirements

Supplier DevelopmentSupplier Development

– SQE’s will conduct Continuous SQE’s will conduct Continuous Improvement activities with the Improvement activities with the suppliers to bring the up to our suppliers to bring the up to our quality level and expectationsquality level and expectations

– Audit suppliers to ensure that they Audit suppliers to ensure that they are meeting mandated TS16949 and are meeting mandated TS16949 and ISO standardsISO standards

Performance Performance MeasurementMeasurement Dimensional MeasurementsDimensional Measurements

– Check lamps daily to ensure that we Check lamps daily to ensure that we meet current customer requirementsmeet current customer requirements

– Dimensions are charted daily to Dimensions are charted daily to ensure visually show any trend linesensure visually show any trend lines

– When a point is outside the control When a point is outside the control limits, engineering is notified to limits, engineering is notified to correct the problemcorrect the problem

Performance Performance MeasurementMeasurement Glue Weight MeasurementsGlue Weight Measurements

– Glue weight is checked every dayGlue weight is checked every day– Charted using SPC Charts to Charted using SPC Charts to

determine the trend line.determine the trend line.– Report is generated every day to Report is generated every day to

inform people of the current status.inform people of the current status.

Performance Performance MeasurementMeasurement Gauge R & RGauge R & R

– Repeatability and ReproducibilityRepeatability and Reproducibility– Measures how repeatable the process isMeasures how repeatable the process is– 3 different operators will load 30 parts 3 different operators will load 30 parts

into a gauge and measure the partsinto a gauge and measure the parts Gauge instructions ensure proper loading of Gauge instructions ensure proper loading of

the part by all operatorsthe part by all operators– The results are entered into a computer The results are entered into a computer

to calculate the resultsto calculate the results

Performance Performance MeasurementMeasurement

– Results are reported as a Results are reported as a percentagepercentage 0 - 9 %: Acceptable measurement 0 - 9 %: Acceptable measurement

system, no action required system, no action required 10% - 30%: Improvement is 10% - 30%: Improvement is

encouraged, but may not be desirable encouraged, but may not be desirable >30%: Unacceptable measurement >30%: Unacceptable measurement

system system

Performance Performance MeasurementMeasurement Capability StudiesCapability Studies

– After successful R & R, parts are After successful R & R, parts are measured to determine capabilitymeasured to determine capability

– 20 parts are measured20 parts are measured– After part are measured, the data is After part are measured, the data is

analyzed using SPCanalyzed using SPC– Based on the CPK value, a Based on the CPK value, a

determination is made as to the determination is made as to the products capabilityproducts capability

Performance Performance MeasurementMeasurement FMEA (Failure Modes and Effects FMEA (Failure Modes and Effects

Analysis)Analysis)– Created by Manufacturing EngineerCreated by Manufacturing Engineer– Identifies potential failures prior to Identifies potential failures prior to

creating a processcreating a process– Works with processing departments Works with processing departments

to ensure accuracyto ensure accuracy– Controlled and living documentControlled and living document

Performance Performance MeasurementMeasurement Control PlanControl Plan

– Created by our Quality EngineersCreated by our Quality Engineers Lists each quality measurable for each Lists each quality measurable for each

product and each processproduct and each process Details frequency of quality checksDetails frequency of quality checks List specific SPC tool to be used for the List specific SPC tool to be used for the

checkschecks

Employee MotivationEmployee Motivation NAL has a couple of motivation toolsNAL has a couple of motivation tools

– Profit SharingProfit Sharing At the end of fiscal year, NAL will deposit a At the end of fiscal year, NAL will deposit a

percentage of salary into 401Kpercentage of salary into 401K– Improvement SuggestionsImprovement Suggestions

Employee will make an improvement Employee will make an improvement suggestionsuggestion

If implemented, employee will receive a If implemented, employee will receive a percentage of the total money savedpercentage of the total money saved

Continuous Continuous ImprovementImprovement NAL practices continuous NAL practices continuous

improvement every dayimprovement every day– We live, eat, and breathe itWe live, eat, and breathe it

NAL follows a Kaizen philosophyNAL follows a Kaizen philosophy– Pick a small problem and implement Pick a small problem and implement

countermeasures to fixcountermeasures to fix– Many small improvements lead to a Many small improvements lead to a

large amount of savingslarge amount of savings

Continuous Continuous ImprovementImprovement Impact ActivitiesImpact Activities

– Diverse group that is assembled to fix Diverse group that is assembled to fix a problem within the companya problem within the company

– Group makeup is diverse to allow for a Group makeup is diverse to allow for a new point of view of the issuenew point of view of the issue

– Group is dedicated to the activity for Group is dedicated to the activity for an entire weekan entire week

– Problems are identified, brainstormed, Problems are identified, brainstormed, and countermeasures are implementedand countermeasures are implemented

Continuous Continuous ImprovementImprovement

– Problem is studied again and Problem is studied again and improvement is recordedimprovement is recorded

– Group presents findings to Group presents findings to managementmanagement

Any Questions?Any Questions?