Start End Speaker / Organizer Location / Room Name Topic / Event
Conference AM Begins (8:30am)
8:30am 8:40AM Christelle Orzan Spartanburg/Anderson/Laurens Room Introduction
8:40am 9:00am Noriya Murase, Tom Takahashi Spartanburg/Anderson/Laurens Room Growth & vision NA
9:00am 9:45am Ken Hopkins Spartanburg/Anderson/Laurens Room Market & Technology
9:45am 10:00am BREAK
10:00am 10:25am Christelle Orzan Spartanburg/Anderson/Laurens Room Purchasing
10:25am 10:40am Patrick Grande Spartanburg/Anderson/Laurens Room Raw Material
10:40am 11:10am Freddie Bleeks, Michael Rich Spartanburg/Anderson/Laurens Room Diect Components Opportunities
11:10am 11:30am Nobuaki Fushimi, Antonio Vaz Spartanburg/Anderson/Laurens Room Quality
11:30am 11:45am Alex Thomas Spartanburg/Anderson/Laurens Room Supplier Advancement
11:45am 12:00pm Christelle Orzan Spartanburg/Anderson/Laurens Room Closing comments, Q/A
12:00pm 1:00pm LUNCH
1:00pm 5:00pm Buyers / SAE / Mgrs Pickens Room Various Buyer/SAE Meetings
1:00pm 5:00pm Buyers / SAE / Mgrs Oconee Room Various Buyer/SAE Meetings
1:00pm 5:00pm Buyers / SAE / Mgrs Pelham Room Various Buyer/SAE Meetings
Conference Ends
2 Noriya Murase Tomokazu Takahashi Ken Hopkins President CEO COO & VP Sales
Christelle Orzan Patrick Grande VP Supply Chain Mgr Metals
3 Freddie Bleeks Michael Rich GM Purchasing Mgr Components
Nobuaki Fushimi Antonio Vaz Alex Thomas Director Quality Mgr Quality Manager SAE
4 Today in this room, we have assembled our company’s strategic suppliers. You will hear and be shown confidential information regarding our company vision and plans, market & technology, organization information, future expectations, and opportunities. We are providing this information in good faith as a partner to you, however a few companies in this room can be regarded as direct or indirect competitors or have ties to a competitor. Please do not disclose this shared information orally, in writing or electronically to anyone who may use this information to gain competitive advantage against our company.
Thank You 6 Corporate Message
Corporate Philosophy
Seek to contribute to the happiness of people and the abundance of society through product manufacturing that wins the trust of society.
7 JTEKT Vision 2015 Corporate Objectives Be a company that Be a “monozukuri” promotes living and work company environment friendly to the improvements by global providing safe, reliable, environment pleasurable-to use products
Be a company that sees Be a truly global market changes as company that is a good business opportunities corporate citizen with an and continues to grow excellent social and throughout cultural understanding of the world each world region
8 Corporate Priorities
Safety First Quality Always
9 Corporate Profile
JTEKT CORPORATION
- Nagoya head office No.1-1, Asahimachi, Kariya, Aichi Prefecture, 448- 8652, Japan
- Osaka head office No.5-8, Minamisemba 3-chome, Chuo-ku, Osaka, 542- 8502, Japan
$11.9 billion
36,572
112
10 JTEKT global operations 14 technical centers 72 production sites
North & South America Asia & Oceania - Plants : 16 - Plants : 27 - Tech centers: 3 ★ ★★ - Tech centers: 2 ★★ ★ ★ ★★ ★☆◆◇▼▽ ★ Europe Japan ★★ ★★ - Plants : 18 ★★ - Plants : 11 - Tech centers: 4 - Tech centers: 5 ★
★
★ JTEKT can supply global customers [Symbol] from our worldwide development - Steering: ★Production; ☆Development - Bearing: ◆Production; ◇Development bases and production sites - Driveline: ▼Production; ▽Development Business field: Bearings Supporting manufacturing through movement-related technology in all fields from tribology and materials development to machining technology
General-purpose bearings Automotive bearings
Light weight low-torque hub unit
Low friction-torque 3rd-generation (LFT- ) tapered roller bearing
Windmill power Machine tools bearings generator bearings Steel mill bearings Oil seals
12 Business field: Steering Systems A systems supplier capable of providing all types of steering systems, JTEKT creates new value while pioneering new frontiers in environmental friendliness, safety, and comfort
Electric power steering systems Intelligent front steering system (IFS)
Electronically controlled variable gear ratio (E-VGR)
Hydraulic power steering
IFS and E-VGR are registered trademarks of JTEKT.
13 Business field: Driveline components Creating the future of driveline components through untiring technical innovation aimed at achieving excellence in driving stability and riding comfort
Couplings Torsens
Torsen
Torsen differential Intelligent torque controlled Coupling coupling (ITCC) Propeller shaft
Driveshaft Propeller shafts
Driveshafts
ITCC and TORSEN are registered trademarks of JTEKT.
14 Business Fields: Machine tools Enabling customers to carry out stable, high-quality manufacturing and supporting the future of industries through continual pursuit of improved machine tool performance
High-precision machine tools Grinding machines Machining centers
Combination grinder PLC Large horizontal spindle machining center Special-purpose machines
Safety PLC ― TOYOPUC–PCS ―
TOYOPUC is a registered trademarks of JTEKT. Vertical spindle machining center Top Center 15 Corporate Sales
16 17 Company History
2005 Koyo Seiko Co., Ltd. and Toyoda Machine Works, Ltd. merger agreement executed
2006 Start of JTEKT Corporation
2009 Acquisition of The Timken Company’s needle bearing business announced
2010 Acquisition completed. Calendar Year 2010 focused on creating “stand-alone” Koyo Torrington business
2011 Begin process to Integrate all North American business for JTEKT Steering, Driveline, and Bearings October 2011 – First Unified North American Supplier Conference
18 Koyo Corporation of USA President: Noriya Murase (JTEKT North America) Executive Senior VP: Tomokazu Takahashi VP: Takatoshi Uematsu Board of Directors: Ken Hopkins and others
Sales(Takahashi,Hopkins*1) Purchasing(Orzan) HR/ IT(Beargie) Quality (Fushimi)
BEARING STEERING/ DRIVE LINE MACHINE TOOL Koyo K-Torrington Technical Center Steering Drive line Toyoda Machine USA Greenville Orangeburg Walhalla Vonore Piedmont (TMU) IL (GTC) SC (OGB) SC (WAL) SC (JATV) TN (JASC) SC Dahlonega Plymouth Rochester Koyo Richland Morristown (DAH) GA (A-TEC) MI (JTRNA) Machinery (RLD) SC (JATM) TN USA Sylvania NY (KMU) MI Washington (SYL) GA Ennis (WSH) TN (JATX) TX Cairo (CAI) GA *1. Exclude TRB business Bedford (BED) QE 19 JTEKT NA Location of Operations
Koyo Corporation USA JNA “Classic Koyo” Steering & Driveline
20 JTEKT NA Location of Operations
Koyo Bearings USA Machine Tools & Torsen Needle Bearings
21 JTEKT Invests to Support Growth
Publicly Announced Significant Investment to Support North American Business Growth:
-January 2010: JTEKT Acquires Timken NRB Business
-November 2010: JTEKT Announces ~ $50M Expansion of Washington, TN bearing facility
-March 2011: JTEKT Announces ~ $60M Expansion of Dahlonega Roller Production Capabilities
22 JTEKT North America Vision
• JNA will be World‐Class Business with World‐ Class Operations and Processes • Above Market Rate Growth • Strengthening Technical Capabilities • Differentiated by Quality, Technology, and Customer Service • More NA production, more localization • Safety and Quality improvement is always first • Mutual Trust with valuable suppliers
23 24 24 Product Portfolio
Bearings Steering
• Electric power steering systems •Normal bearings • Electric pump-type hydraulic power （ball, tapered roller) steering systems • Hub unit bearings • Electronically controlled power steering systems • Ceramic bearings, etc. • Hydraulic pumps, hydraulic hoses, etc. Machine Tool Driveline
• 4WD Coupling • Torsen • Drive shaft Steering Systems
One Face One Team
26 Steering Types
Hydraulic Power Steering Systems
Electronically Controlled Hydraulic Power Steering Column Type EPS
Rack & Pinion Hydraulic Belt Drive EPS Power Steering
Pinion Type EPS
Steering Reservoir Power Rack Type EPS Gear Steering Pump
Electric/Hydraulic
Electronically Controlled Variable Ratio 27 North American Steering Trends
Big growth in B, C, D segments in NA!!!
5 million HPS units disappear over next 5 years!!! JTEKT Current Business
CHRYSLER 300C (INCL. SRT)
CHRYSLER CHRYSLER SEBRING PT CRUISER Product Supplied: & EHPS PUMP & GEAR DODGE STRATUS
Dodge Challenger
Product Supplied: Product Supplied: PS PUMP & RES. PUMP
JEEP LIBERTY Product Supplied: JEEP COMMANDER EHPS PUMP & GEAR
JEEP DODGE RAM DODGE NITRO Product Supplied: GRAND CHEROKEE Product Supplied: PUMP & Int. Res. PUMP & Int. Res.
Product Supplied: PS Pump & PS Pump & Product Supplied: Product Supplied: EHPS PUMP PUMP & Int. Res. PUMP & Int. Res.
Dodge Charger DODGE CARAVAN (incl. SRT) CHRYSLER TOWN & COUNTRY
Product Supplied: Product Supplied: PS EHPS PUMP PUMP & GEAR
29 JTEKT Current Business
Cadillac SRX
GMC Product Supplied: Chevy Terrain P/S PUMP Camaro
Chevy Product Supplied: Product Supplied: Equinox P/S PUMP P/S PUMP
Chevy Winstrom Product Supplied: Captiva P/S PUMP
Chevy Aveo Chevy Chevy Product Supplied: Impala Product Supplied: Tahoe P/S PUMP P/S PUMP
Product Supplied: Product Supplied: Product Supplied: P/S PUMP Rack Cross EPS P/S PUMP
Antar Barin a a
Product Supplied: Product Supplied: P/S PUMP P/S PUMP
30 JTEKT Current Business
TOYOTA AVALON
TOYOTA TOYOTA CAMRY Product Supplied: MATRIX HPS SYSTEM
TOYOTA VENZA Product Supplied: Product Supplied: C-EPS SYSTEM HPS SYSTEM
LEXUS RX350 TOYOTA TUNDRA Product Supplied: C-EPS SYSTEM
TOYOTA TOYOTA TOYOTA TACOMA Product Supplied: SEQUOIA Product Supplied: COROLLA C-EPS SYSTEM HPS SYSTEM
Product Supplied: Product Supplied: Product Supplied: HPS SYSTEM HPS SYSTEM C-EPS SYSTEM
31 Driveline
One Face One Team Driveline Product Applications ITCC
Propeller Shaft TORSEN Type B ITCC E-RBC AT Oil Pump
TORSEN Type C
Proportional Controlled Valve for AT
TORSEN DOJ-BJ type Drive ShaftTwin Differential
GI-BJ type Drive Shaft
Aluminum Hub Simple bonding type Simple Press-fit type Damper Pulley Damper Pulley Damper Pulley VL-VL type Drive Shaft
33 Bearings
One Face One Team
34 Bearings
Automotive bearings General-purpose bearings (hub unit with built-in sensor)
HIGH-ABILITY bearing series Steel mill bearings Oil seals for machine tools
35 Market Drivers & Trends
Drivers Trends • AT’s & DCT with 6 to 9 Speeds • Fuel Economy & Emission – Increased power density -> special heat treat requirements Requirements – Higher speeds -> special designs
– CAFE, Euro 5/6, CO2 • Interest in Fuel Efficient Bearings • Growth in Agriculture machinery • Increased need for food supplies – John Deere products • Growth in Construction & Mining • Greater demand for mining and construction equipment • Consumer Sentiment for “Green” – Engine, trans., axle & hydraulic pumps – Renewable energy • Wind Energy – Wind turbine farms • Improved health care • Cat. Scan and imaging machines
36 NA Transmissions Market Facts
Data Source: CSM Autobase
37 Business fields – Multiple Technologies
Intelligent front steering system ( IFS )
Torsen differential
Intelligent torque controlled coupling (ITCC)
Engine & Trans Bearings – Full Line
Hub unit with integrated multifunction sensor
38 38 39 What’s new
Purchasing Portfolio
Opportunities
40 C. Orzan VP Supply Chain SUPPLY CHAIN Material Control PURCHASING
J Kerbellec Europe Mgr Plastic & Indirect
P Hastik Europe Mgr Direct Mat.
Gregg Davis Patrick Grande Jim Harris Vic Maslak Abel Acuna GM Production Manager Freddie Bleeks GM Demand GM Customer GM Purch Control & Metals, GM Purchasing Management Service Planning Logistics Purchasing
41 • We come from a fragmented organization – Proliferation of suppliers – Weak common processes and tools – Lack of data transparency – Proliferation of IT systems – Inadequate training and development of individuals – Patchy category strategy – > 80% organization transactional – Fuzzy priorities; each facility looking for his own • Integration is complex
• Purchasing is One Team in N.A in January ’11.
42 PHASE 1 PHASE 2 DO & LEARN OPTIMIZE & IMPROVE
• Know the Business • One Supplier Development • Help each other • Group Direct Commodities • Indirect Buy • Advanced Sourcing & Projects • Best Practices Jan’11 Nov’11
43 Raw Direct Direct Indirect (plant & Material Components Components corporate)
SUPPLIER DEVELOPMENT
ADMINISTRATION & CONTROL
COST PLANNING. PLATFORM SOURCING. ENTREPRISE PROJECTS
44 Patrick Grande David Britton Michael Rich Patrick Deligny Components Components Metals Indirect Group A Group B $ 184 M $ 103 M $ 514 M $ 283 M
Electronics MRO Supplier Bar & Tubes Forging Advancement Hydraulics Tooling Alex Thomas Wire Machining
Stampings Lube
Strip Seals Planning & Corporate Shaft Projects items Aluminum Powder Metal Abel Acuna castings CKD Packaging
45 * Capital & Energy not included Provide proficient service by aligning initiatives, managing supply costs and reducing risks to achieve manufacturing excellence “monozukuri” and business goals
Vision
Strategic Axis
Tactical Plan
Purchasing Strong Early Develop key Cohesive team Enablers Communicate tools Analytical Collaboration Suppliers & Skills
46 Sustainable Cost
Supplier Development
Key Strategies
Organization Improvement
47 EUROPE $46 M
ASIA $310 M Steering Plant Bearing Plant Driveline Plant Steering/Bearing Tech/Office Center
Steering Suppliers Bearing Suppliers 48 Driveline Suppliers Brg, Rollers Steel & Aluminum ‐> Steel, Alum. new focus. Electronics, motors Strong Growth Forming, Forging Investment Casting 14% CKD (non elec.) Electronics ‐> future Machinining (+forge) 18% 8% technology. High Powder Metal Growth Columns/shafts 8% IBJ/OBJ 16% Power pack Other 5%
Forge, form & machine. CKD‐> More than 90% Large portion still in in scope for localization Japan. Need investment and capabilities in N.A
49 * Based on 70%. 50 Localization is 1. N.A short chain 2. TCO global source 3. Make vs Buy • Fragmented spend and supplier base
• Started consolidation Services (rental, insurance), 9% MRO , 11% Tooling consumable, • Build compliance & 7%
Oil and grease control and Chemical, 7% • Many areas to be Energy Electric, addressed in the 8% future Transportation, 16% Temp Labor, 5%
51 52 53 Metals Sourcing –North America
One Face One Team
Presented by Patrick Grande
JTEKT/Koyo Supplier Conference 26th October 2011
54 Metals sourcing overview
STEEL CASTINGS
Bar Tubes Aluminium
32300 tons 500 tons 4600 tons
Aluminium Grey iron Wire Strip Castings Castings 12200 tons 10700 tons 3400 tons 3800 tons
Steering & Driveline Bearings
55 Wire Rod
• Opportunities Total rod requirements 16 000 – Dahlonega, GA plant expansion (Tapered rollers) 12 000 – New products 8 000 Metric Tons • Expectations 4 000
– Capacity: support growth 0 2011 2012 2013 2014 – Outstanding service level Main grades: 52100 (70%), 8640, 1085
56 Strip steel
Total strip requirements • Opportunities 12 000 – New products
– Internal business (UJ Bearings) 8 000 Metric Tons • Expectations 4 000 – Capacity availability 0 – VA / VE activities 2011 2012 2013 2014 Main grades: 1010, 1012, 1074, 1524
57 Bars
• Opportunities 60 000 Total bar requirements – Localization 50 000
– New platforms / products (CVJ) 40 000 Æ 30 000 tons to be sourced in 30 000 North America by 2013‐14 Metric Tons 20 000
• Expectations 10 000 – Capacity 0 2011 2012 2013 2014 – Support approval process Main grades: 1055 mod, 5120, 52100, – Competitive package 1045 mod
58 Aluminum / grey iron
12 000 • Opportunities Aluminum Grey iron – New products 10 000 – Make vs buy decision 8 000 6 000 • Expectations Tons Metric 4 000 – Additional casting capacity 2 000 0 – Competitive packages 2011 2012 2013 2014 Main Al grades: 383, ADC12, NH41, 319 * Does not include customer directed sources
59 Metals sourcing conclusions
• Highlights – Increasing volume and domestic sourcing – Consolidated bearing and steering purchasing strategy – JTEKT’s involvement for direct purchases and purchases through subcontractors
• Expectations – Support growth (development, capacity) – Extended term commercial agreement for direct and indirect purchases – Competitive packages
60 61 • New Product Development – Transmission Business (CVT, CVJ) – H‐EPS – Fuel Efficient Bearings for Transmissions and Engines • Current Business Growth – Growing Commodity ‐ Electronics – Existing Business – Common Commodities • Forging • Machining • Plan to Increase Localization – 2011~2013 Plan
62 Introduction of three new product lines in North America CVJ CVT H‐EPS DEC 2012 JUNE 2012 2011
1,500,000
1,000,000
500,000
0 2012 2013 2014 CVJ CVT H‐EPS 63 LOCATION PRODUCT # OF PROJECTS VOLUME SOP CAIRO CAGE & ROLLER 7 100k/Month 2012/2013 ENGINE 3 520k/Month 2012 SOLID RACE BEARINGS 1 350k/Month 2013 ORANGEBURG TAPER ROLLER BEARING 5 103k/Month 2012 BALL 1 45k/Month 2012 RICHLAND WHEEL HUBS 2 152.5k/Month 2013 SYLVANIA CAGE & ROLLER 2 570k/Month 2013 WASHINGTON TAPER ROLLER BEARING 6 147k/Month 2012
64 65 Electronics Purchases Millions
$
66 Machining Purchases Millions
$
67 Forging Purchases Millions
$
68 JTEKT Localization Team
Steering Bearing / Driveline
Purchasing Purchasing + Tech Center + Tech Center
JATV JATX JATM JASC KCUM KBUS
69 Target
70 Target
71 • Proactive involvement with JTEKT Engineering in Advanced Sourcing Stage • Provide quality products at competitive prices • Support JTEKT requirements with necessary capital investment and resources
72 2011 Supplier Conference
ONE FACE ONE TEAM
Oct 26, 2011 Greenville, SC
73 JTEKT Priorities “Safety First, Quality Always”
74 1. JTEKT NA Quality Management Organization 2. Responsibility 3. JTEKT NA Key Focus 2011 ‐13 a) “Zero” km Claim Reduction b) Warranty Reduction c) Flawless Launch
75 1. JTEKT NA QM Organization
Director
Fushimi Coordinator Akazawa / Otsu
Supplier Adv. Bearing Steering / Driveline Engineering Jim Beckham Fushimi
Cust.Qlty.Engineer Principal Engineer Principal Engineer Corporate Quality Metallurgy Steering / Driveline Pat Armstrong Dave Cortese Mark Entrekin Jeff Liptak Antonio Vaz
WAL BED SYL DAH CAI OGB RLD WSH JASC JATM JATV JATX QC QC QC QC QC QC QC QC QC QC QC QC
Metallurgy Sandra Gonzalez Primary Reporting ( In charge of all plant ) Secondary Reporting Total : 6 Specialist
76 2. Responsibility
# Function Responsibility 1 Provide oversight for Warranty. 2Investigate Safety Critical (S‐Rank) Quality Incidents. JNA QM 3 Approve & Audit Suppliers for Melt, Forging and Casting.
4 Maintain Material Specifications. 5 Manage Supplier Request for Engineering Change 6 Approve New Suppliers 7 Conduct Supplier Audit SAE 8 Maintain GASL & JSN / Score Card for Key Suppliers
9Leads Supplier FB (Future Benefits) Cost Reduction Activities
10 Coordinate New Product Launch
11 Investigate returned part analysis for warranty
12 Lead all Quality problem Investigation Plant QC 13 Ensure initial Quality for New Launch Activity
14 Manage day to day Quality Issues with Suppliers
77 3. JTEKT NA Key Focus 2011 ‐13 a) “Zero” km Claim Reduction b) Warranty Reduction c) Flawless Launch
78 Abbreviations • 4S ‐ Well Organized Workplace • C/M ‐Countermeasure • pFEMA ‐ Process FEMA • HVPT ‐ High Volume Production Trial • NTF ‐ No Trouble Found • QA ‐ Quality Assurance • QRE ‐ Quality Resident Engineer • S.A Rank ‐ Safety / Function Critical Quality Issue • SOP ‐ Start of Production
79 3. a) 0KM Claim Reduction (JTEKT Activity)
Level up items 2011 (1st Half) 2011 (2nd Half) 2012 & 2013
• Global Yokoten •Past Problem QA • Assumed problem QA •QA Network (read across) & Network rank-up. network rank up. →100% Improvement Activity Improve Quality completion →”0” flow out of S.A Assurance •Global Yokoten (read Rank Problem network level across) Activity
Q A Network Rank-Up Step1： Re-evaluate past quality problem using QA network. →Clarify processes below target rank
Step 2： Make a plan for temp. and Global Yokoten (read across) Database permanent C/M →Accomplish C/M
Step 3： Yokoten of C/M for S.A rank problems in related plants
Step 4: Evaluate assumed problem process using QA network →Accomplish C/M
80 3. a) 0KM Claim Reduction (JTEKT Activity)
Level up items 2011 (1st Half) 2011 (2nd Half) 2012 & 2013 • Follow the rule. • Improve & follow the •Zero (1/10) in-process • Expand Zero (1/10) in • Decrease in- rule defect Activity (model process defect activity process defect • Do not use dropped line) →Reduce quality parts (reduce change complaints by 50% →Quality Complaints <11. point)
View Point Zero (1/10) in-process defect activity •Thisisaderivativeof“HeinrichLaw”whichisusedtoexplain Step1 Select the Model Line for each plant the occurrence ratio of safety incidents at workplace ：
→ To reduce quality complaint to “Zero” we need to reduce the in-process defects by 10 Step 2: Find all in-process defects times (Including dropped parts) 0.1 = Customer “Zero” Complaint = 1 Step 3: Make Pareto Chart for in-process “1/10” Activity 2.9 defects (each month) Defects at Final → Supervisor has to understand the problem, content, occurrence & Inspection = 29 30 originating process
Step 4: Select & Accomplish Activity Theme In‐Process defects = 300 →Make Activity Plan
81 3. b) 0KM Claim Reduction Supply Chain Focus 1. Develop, Improve and Follow the rule (ex. 4S, stop, call & wait etc.) 2. Level up process assurance to eliminate past problem • Prevention & Detection
3. Yokoten (read across) the countermeasure to prevent reoccurrence. 4. In-process defect reduction activity. Why this activity is important?
Customer Warranty Claim = Complaint = 1 300
Defects at Final Early Failure = 29 Inspection = 29
Customer In‐Process defects = 300 Complaint =1
82 3. b) Warranty Reduction (JTEKT Activity)
Level up items 2011 (1st Half) 2011 (2nd Half) 2012 & 2013 • To eliminate chronic • Establish vehicle • Clarify NTF. Complete C/M • Improve Design Drawing. problem confirmation system • Improve Design Drawing →Reduce Claim by 10% • Find root cause of (Go & See) →Reduce claim by 10% No Trouble Found issue
Go & See Activity Design Drawing Improvement Process Supplier JTEKT Automaker Customer Dealer Automaker Design Drawing Parts Sub Assy Vehicle Assy Market Go Request Confirmation & See Quality Information JNA QM ・ Create Team • Data Analysis • Investigate defective parts Step 1: Create problem database Confirmation ・Select “Go & See” Theme Plant Step 2: Check Drg & Create Suggestion Sheet ・Activity plan for each theme
Confirmation Step 3: Level up Suggestion Sheet ・Feed back new info to related departments JNA Design Step 4: Feed back information to Design
83 3. b) Warranty Reduction Supply Chain Focus 1. Establish quick response time for part analysis 2. Feedback information to process and product drawing 3. Clarify NTF issues by establishing “Go and See” Activity
84 3. c) Flawless Launch (JTEKT Activity)
Before SOP After SOP New • Timely completion of Quality Gates • No reinstate parts for 3 months Design • QA Network Evaluation • 200% inspection for 3 months • Process Audit for Key Suppliers • Quality Resident Engineer (QRE) at Customer • Visit to Customer trials facility for 1 month • 100% completion of issues identified • Attend High Volume Production Trial (HVPT) at Mother Plant • Mother plant Audit / Support • Confirm Part’s Quality with Drawing • Standardized Work Training
New + • Confirm Countermeasure (C/M) for Past problem • Early resolution to Quality problem Current • Confirm Process capability • Follow Market claim Design
85 3. c) Flawless Launch Supply Chain Focus • Robust Process Assurance (Before SOP) •pFEMA + Change Point Control • Standardized Work •Team Member / Support Member Training •Layout Inspection •Tear down Analysis • Initial Quality Control Activity (After SOP) • 200% inspection for 3 months after SOP. •No reinstate of parts for 3 months. • Quality Confirmation at Customer Zero Defect •Go & See Activity to understand customer expectation and early problem resolution.
86 Thank You
87 Supplier Advancement Engineering Group Presentation
One Face One Team
Presented by Alex Thomas
JTEKT/Koyo Supplier Conference 26 October 2011
88 Outline
• What and who are the Supplier Advancement Engineering Group? • Review tools for suppliers • Need stability from suppliers • Need sustainability by suppliers • FB definition • Summary
89 New Title & Mission
• New name for integrated team Supplier Supplier Development Commodity Engineer Engineer Supplier Advancement Engineer • Mission – Supplier development (from inception to PPAP)
– Cost/Waste reduction activities (FB = Future Benefit, Value add/Non value Add)
– High impact quality issues (stoppage at the customer or plant)
90 You could have a new face/name - JTEKT/Koyo SAE Team Consult with existing engineer! Alex Thomas – SAE Manager
Karen Stapleton Johnny Smith Jimmie Love Larina Robbins Harold Booker Todd Morgan Open Approved Gary Liu Purchasing Supplier Supplier Supplier Supplier Supplier Supplier Improvement Advancement Eng Advancement Eng Advancement Eng Advancement Eng Advancement Eng Supplier Advancement Engr. Project Manager KBUS JATM JAMI JATV KBUS Advancement Engr. JAMI JATM Greenville SC Greenville SC JATM
Coordinate Conduct Risk Assessments for New or Existing Suppliers FB Activities Manage Supplier Requests for Changes (engineering or process or supply chain) Special Conduct Supplier Audits Improvement Coordinate New Product Launch (APQP & PPAP) Projects Maintain GASL & JSN + Supplier Scorecards for Key Suppliers Conduct Cost Reduction Activities (FB)
91 Tools
• Integrated Supplier Quality Assurance Manual (SQAM) – Under construction –to be consolidated from all previous groups (bearing/driveline/steering) – Target for release January 2012
• Common Supplier Portal (new tools) – New name –JTEKT Supplier Network (JSN) – Web based communication with JTEKT/Koyo – Please register on‐line at https://portal.koyobearings.com/portal/home.aspx for access.
92 JSN‐Portal
JTEKT/Koyo requires all direct material suppliers to register to this portal. Suppliers will have access to specific information: 1. Complaints to Suppliers 2. CARPAR (Corrective Action Reports/Proactive Action Reports) 3. SQAM and forms
93 JSN‐Portal
4. The portal tracks Supplier Quality performance via Scorecards 5. Suppliers respond on-line (DMR/CAR/PAR) 6. Expect to have all plants fully functioning by Q1 2012
94 Stability
• Need Supplier Stability (QCD)
– (Q = Quality) • Need stable processes = “Defect free” quality
– (C = Cost) • Need to control cost = Global cost competitiveness
– (D = Delivery) • Need to meet 100% On‐time delivery commitments to all plants
95 Sustainability
• Suppliers must sustain a high level of QCD
– Robust systems –ISO 9001 Certifications, etc.
– Robust technology & engineering capabilities
– Robust supply chain management –tier 2 , tier 3, etc.
– Innovation in cost/waste reduction activities
– Align short and long term business plan
– Supplier Senior Leadership needs to be engaged when faced with material supply challenges
96 FB Definition
• JTEKT Japan FB –Fish Bone – In JJP FB has roots in Fish Bone Kaizen activities on the assembly line. Integrate support lines into continuous, one‐piece flow. • JTEKT Japan started using these techniques about 2 years ago • Cross‐functional teams from JTEKT and suppliers
• JTEKT North America FB – Future Benefit – Internal at the plants and the supply chain • Implemented in February, 2011 – Focus is the value stream from raw material to finished goods
97 FB ‐ Logistics Example
ASSEMBLY 【before】 Japan Supplier→ Japan Supplier Child Co.→ JATV 【after 】 Japan Supplier→ JTEKT Logistic Supplier→ JATV
Japan Japan Supplier Supplier 日 Child Co.
JTEKT ＬＡ Use JTEKT Vonore transportation JTEKT , TN system in NA Japan JTEKTJTEKT when possible Ennis,Ennis, TX TX
Results = Time savings Cost savings Less inventory needed Summary
• Please register on JTEKT Supplier Network portal as soon as possible
• Stay tuned for consolidate SQAM release –Jan. 2012
• Work on cost/waste reduction activities
• Contact your Supplier Advancement Engineer for more details and questions
• Thank you for your time and attention
99 • JTEKT ONE = One face and Growth • Leadership commitment – Quality – Integrity and Trust – Invest • Opportunities – Wining the business via competitiveness, quality and continuous improvement – Become better partners.
100