supplier management - sap service marketplace - homesapidp/011000358700000140572014e/... ·...

19. Juni 2007, „Hyatt Hotel“, KölnHeinz Schulze, Mahle GmbH, Stuttgart

Supplier Management

SAP - InfodayAutomotive Consulting Solutions

SAP AG 2007, Automotive Consulting Solutions 2

Agenda

MAHLE GROUP

Supplier Management

Project Supplier Assessment

Drawing at ERP-System

Drawing at BW-System

Technical Information


The MAHLE Group ranks amongst the top three systems suppliersworldwide for piston systems, cylinder components, valve train systems, airmanagement systems, and liquid management systems.

As one of the 30 largest companies in the automotive industry and globallyleading development partner, MAHLE has a unique competence in the areaof combustion engines and engine peripherals with:

110 production plants on four continents,

about 47,000 employees (April 2007),

sales of over 4.3 billion Euros (2006) and

expected sales of approx. 5 billion Euros (6.5 billion US-Dollar) in 2007.

MAHLE worldwide


147 138 157 187 155 175 181237

275 295

0

100

200

300

400

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

1,9 2,1 2,4 2,8 3,1 3,33,8 4,1 4,3

1,7

012345

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

20 21 25 26 28 29 3036 37 39

01020304050

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Trends at MAHLE

Sales in billion EUR

Result from ordinary activity in million EUR

Headcount in 1,000s


Group management

Advanced productdevelopment

Sales

Purchasing

Pist

on S

yste

ms

Cyl

inde

r Com

pone

nts

Valv

e Tr

ain

Syst

ems

Air M

anag

emen

t Sys

tem

s

Liqu

id M

anag

emen

t Sys

tem

s

Group organization


Stuttgart

Detroit (Farmington Hills)

Detroit (Novi)

São Paulo

Tokio (Okegawa)

Tokio (Kawagoe)

Shanghai

Northampton

1998

2004

1997

2004

2006

2002

2001

Research and Development centers


MAHLE worldwide


NorthamptonWellingborough

Oldbury

WorcesterSalisbury

SeboncourtPersan

Ingersheim

DécinesDardilly

MurtedeElgoibar

Alcalá de HenaresVilanova i la Geltrú

Potenza

Gebze

SaluzzoVolveraLa Loggia

TimisoaraWolfsberg

St. Michael ob BleiburgVöcklabruck

RankweilKrotoszyn

Selzach

Grenchen

MAHLE in Europe – excluding Germany


In 1964, the founders Hermann and Ernst Mahle decided to convert theirprivate interests in the company into a charitable foundation.

The hospital Filderklinik, in Filderstadt-Bonlanden near Stuttgart,Germany, was opened in 1975. Its day-to-day operation, expansion andmodernization programs have been sponsored by the MAHLEFoundation.

Waldorf schools (anthroposophical teaching), organic farming andresearch projects are also areas supported by the MAHLE Foundation.

MAHLE Foundation


Oil-mist separator withcontrol valve

Air-mass sensor

Air filter module

Purge valve

Tappet (cam follower,rocker arm)

Tumble flap

Exhaust gas recirculation

Intake manifold(charge air distribution)

Blow-by induction

Fuel filter

Cylinder liner

Connecting rod

Bearing

Eco-Oil filtermodule

Camshaft

Valve guide

Valve

Valve seat ring

Turbocharger*

Piston ring

Piston with pinbore bushing

Piston pin,Piston pin circlip

Current and future product portfolio


Aluminum pistons for gasoline and diesel engines

Articulated and steel pistons for commercial vehicle engines

Piston assemblies and complete power cell modules

Piston Systems


Piston rings

Piston pins

Connecting rods

Cylinder liners

Bearings and bushings for combustion engines and otherautomotive applications

Piston inserts

Cylinder components


Machined cylinder heads and cylinder head assemblies

Machined engine blocks and complete engine assemblies

Precision sintered parts

Turbocharger parts

Complete valve train systems and their components

Valve Train Systems


Complete air intake systems

Air filtration elements

Valve cover modules

Crankcase ventilation systems

Design and acoustic covers

EGR modules

Mechatronics components

Air Management Systems


Liquid Management Systems

Oil filter modules

Oil and fuel spin-on filters

Fuel filter modules

Fuel pressure regulators

Inline fuel filters

Carbon canister modules

Heat exchangers for engines and transmissions,

Hydraulic oil filters

Air driers


Profit center Motorsports

MAHLE and motorsports – an extremely successful team since many yearsAlready 1924 a newly developed lightweight piston was used for motorsportsactivities.

MAHLE has been involved in countless racing victories, championships andrecords with its various motorsports components e.g. Formula 1, Cart, IRL,Formula 3, Touring Cars, Nascar.

Eight out of eleven F1 teams race with MAHLE motorsports components.

Product development for race engines results in more than sporting achievements.It is often the top technology used in today’s motorsports products that ends up intomorrow’s series-produced automotive models.


Profit center Industrial Filtration

Perfection in all areas of application

Industrial filters have been developed and manufactured since 1962in our plant in Öhringen. All research and development, design,production and worldwide sales of the Industrial Filtration ProfitCenter are concentrated here with the fluid engineering, dustseparation and automatic filter areas.


Agenda

MAHLE GROUP

Supplier Management






Supplier Selection / Order placement

Purchasing, SuppliermanagementQuality, Engineering,Logistic, other dept.as needed

Purchasing, SuppliermanagementQuality, Engineering,Logistic, other dept.as needed

DemandNew Supplier

Initial EvaluationGuidelines forSuppliersQuestionnaireSupplier Selfdisclosure

Supplier AssessmentQuestionnaire SupplierInitial VisitProduct requirementsProcess requirementAssessment ofProcesses(e.g. Process audit)Consideration ofCustomer requirements(APQP, PPAP)

Supplier ReleaseProcess audit at supplierClassification of Suppliercategory

- MIP- Development Supplier- Generic Supplier

MAHLE Supplier PanelGeneral Supply ContractQuality assuranceagreement

PurchasingQuality, Engineering,Logistic, otherdepartmentsas needed

OwnerContributor


Procurement

Supplier ManagementHeadquarter

ProcurementCommodity Team

Supply Chain ManagementPlant (*1)StrategyStrategy

Development / Deployment ofMethods:- Supplier Performance Scorecard- Supplier Qualification- Supplier Development- Criteria to link Supplier Scorecard

and Supplier Panel- Risk Management- Lead plant Concept per

Supplier / Commodity

Definition and co-ordination ofActivities and Actions to executeSupplier Development & QualificationPrograms- Initial Supplier Evaluation- Checklist Supplier First Visit- Improvement & Implementation

of new Logistics Concepts

Project buy(Supplier identification, RFQ incooperation with project team,support of ramp up processes)

Second Level Escalation support

Project & MethodFocus

Perform Supplier PerformanceScorecard for Logistic & Quality

Conducting of Supplier Audits &Process analysis

Management of Start of Production forpurchased parts including ChangeManagement

Incoming Inspection(if applicable first sample inspection)

Execution of orders to supplier

Escalation management forplant specific Supplier topics(Logistic & Quality)

Lead Plant concept per Supplier /Main commodity

ExecutionMarket / Leverage

Development & Deployment ofCommodity Strategy

Material Sourcing

Development, Deployment andMaintenance of list of released suppliersand Definition of Supplier Panel percommodity

Market research

Supplier Negotiations and Sourcing(e.g. Pricing, contracts, T &C’s)

Procurement Input to Supplier Scorecard(e.g. Price development, Service,..)

Supplier Qualification- Checklist Supplier Self - disclosure

Linkage of Supplier Scorecard Performanceto Supplier Status in Supplier Panel

Risk Management

Responsible Buyer concept per Supplier/Main Commodity Regional / Global

(*1= could include plant Quality & Logistic based onplant organisation)


Supplier Evaluation

Function Weight Element Method/Criteria ClassificationProcurement 30% Pricing (65%)

Contracts (25 %)Communication (10 %)

Pricing based on SAP data

Subjective Q + A's

Quality 30% Product quality (80%)- QKZ (50%)- ppm (50%)

Quality-Audit (20 %)- Certificates (40%) (ISO/TS & System Audit)- Mahle Audits (60%) (Process Audit)

Product quality based onReceipts out of SAPQuality Audits based onCertificates status & auditresults

Logistic 30% Delivery (80%)- Quantity (40%)- On time delivery (60 %)

Service / Communication (20%)

Delivery is based on receiptsService is based on SubjectiveQ + A's

Technology 10% Technical Equiment (25%)

Production Equipment (25%)

Development Equipment (25%)

R & D Capabilities (25%)

Audit results achieved& Subjective Q + A's

Global Target Rating

100 - 90 points - A - Supplier 89 - 80 points - AB - Supplier 79 - 60 points - B - Supplier < 60 points - C - Supplier


Supplier Development

Target is to develop or toeliminate supplier basedon commodity strategyand technical/economicaldependencies.

Development

DevelopmentExitRe-sourcing

Reward- ongoing RFQ’s

& business

Purchasing & Technology

Qua

lity

& L

ogis

tic

0

100

1000

50

50


Supplier Development - Escalation

Level 0

Measuresare

Successful? yes

no

no

Problem SolvingDiscussion atMAHLE or onSupplier‘s LocationDirectly

no

Problem Solving onLocation:Weak-Point Analysis(QS-Audit, LOPA,Assessment of Risk)

Measuresare

Successful?

Measuresare

Successful? yes

yes

yes

Problem Solvingon Location:SupplierDevelopmentProgram (SDP)

MeasuresAre

Successful?

Elimination, Selection ofAlternative Supplier

Level 1

Level 2

no

no

Level 3

NegativeCorrespondence toSupplier; Order forProblem SolvingProposal (e.g. 8D-Report, Action Plan,Inspection Report)

Responsibilityfor Realization

EscalationLevels

Purchasing

Measures

yes

Claim /Reclamationvia SAP and

insufficient executionor

profoundly claim /Reclamation

via SAP

Step 1Problem Solving

Discussion

Step 2Problem Solving

on Location

SupplierDevelopment

Program

Level 1

Plant orCentral unit

SupplierManagementPlant(based on plantand/or PLOrganization)

SupplierManagementPlant(based on plantand/or PLOrganization)


Supplier Performance


Supplier Evaluation

NOTES BW

ACS

S A P


Supplier Evaluation


Agenda

MAHLE GROUP

Supplier Management






Initial situation at MAHLE

Legcy system „Supplier assessment“ did not meet anymorethe MAHLE requirements.

Program no „SAP Standard“Program without Help/Matchcode functionno multilingualismno Supportno futher development to SRMno further development (z.B. VMI)

…


SAP Automotive Consulting Solution


Partnership Development Version 6.0


Content:

• Structure vendor evaluation and quotation criterias• Quality• Logistics• Soft facts (Questionnaires)

• Purchasing• Technics• Logistics

• Change documents• Vendor evaluation in ACS• Vendor evaluations in Business Warehouse (BW)

ACS Vendor Evaluation


Structure / Quotation criterias

ACS - SAP - BW Datas

ppm Quality NotficationQuality score User decision inspection lotQ-Costs no realisation to 31.12.2006

Audit ACS AuditCertificates ACS Certificate

40 Quantity reliability (QR) Delivery plan / orders60 Date reliability (DR) Delivery plan / orders0 Packaging

Consignation Delivery plan / ACS datas

80 ICH VMI Stock VMI BW20 ICH VMI Forecast VMI BW

KANBAN no realisation to 31.12.2006

Questionaire Logistic (Service) ACS Softfacts

BW Price evaluation Purchase Z-Transaction Prices

price structure /-evaluation ACS SoftfactsContracts ACS SoftfactsCommunication ACS Softfacts

Technical equipment ACS SoftfactsProduction facilities ACS SoftfactsDevelopment equipment ACS SoftfactsDevelopment performance ACS Softfacts

Desription

Overall evaluation

30% Quality

Vendor evaluation Quality

100%

Product quality

8050500

Audit / Certificates

206535

30% Logistic

Vendor evaluation Logistic

100%

Logistic

80

Quantity/Dates

25

Consignation 25

VMI

25

KANBAN 25

Service20

30% Purchasing

Vendor evaluation Purchasing

100%

Price evaluatuion65

Softfacts Purch.

35503020

10% Technics

Vendor evaluation Technics

100%

25252525

Free quotations set upwith customizing

Rating100>= A >=9090> AB>=8080> B>=60

C < 60

Database:ERPACSBWICH/VMI


Agenda

MAHLE GROUP

Supplier Management






SAP ACS - Cockpit

Finished language versions: German, English


QM: Master data

• ppm – Targets => Master data• Certificates => Reports• Audits => Reports• Quality Score => User decision inspection lot [QA13]


ppm Targets

1. Vendor [ZZLIB_ZIELPPMQM]Period (valid from)PlantVendorSummation (Year/Month)ppm-Target (Warning)

2. Plant [ZZLIB_ZIELPPMQMW]PeriodPlantSummation

Valid for all vendors, who arenot defined in 1.

With different ppm-Targets, the proportional months will be count in BW


ppm - online Reports

Overview

On vendorFor quick data overview,Similar to QM10


Certificates


Certificates overview

- Anzeige aller Zertifikate- Anzeige abgelaufene Zertifikate

The certificates are filled in R/3 Document management systemwith object link to Vendor master MK03

- View all certificates

- View all expired certificates


Audit results

The last carried out audit at the vendor will be recorded


Audits overview


Quality score

Results to all inspection lots to vendor according selection


Logistic: Master data QR/DR

Limits for delivery dates Consideration oftransport time

Limits for delivered quantity

No evaluation QR/DR


Logistic: Master data VMI-Consignment

Grenzwerte für Min/Max-Bestände(keine weitere Teilnahme an MT/TT)

Limits for min/max stock(no further evaluation QR/DR)


Logistic: Online Evaluations


Logistic: Correction QR/DR

Reworking of correction columnsResults DatesResults Quantity

1. 2.

3.


Correction VMI-Consignment

Bearbeitung der KorrekturspaltenReworking of correction columns


Soft Facts (Questionnaire)

Edition by department/plant 1x/year

Questions are free usablewith customizingup to 8 classes

Results

Score help

1.

2.

3.


Soft Facts Overview


Soft Facts mass maintanence

Evaluated questions will beto transfered to other plantsAttention!Valid for all other questionnaires!


ABC-Classification with ACS

This report only shows the ACS-Standard and help for quick datamonitoring (Evaluation is not complete acc. MAHLE)


Change documents

Traceability / Historic to change master data


Agenda

MAHLE GROUP

Supplier Management






BW Evaluations (project solution)


BW Evaluations QualityVendor Evaluation QualityBehr Gm bH u.Co.

#WERT!Evaluated monthFEB 2007 Date: 13.03.2007Vendor 300794 Behr GmbH u.Co.Plant 2270 St. Michael ob Bleiburg

Complete quality evaluation 56,1% (C) 462.885 Quantity delivered last 12 monthsQuality score last 12 mo 92,9% (A) 148 Complaint quantity last 12 monthsPPM perf. last 12 mo 1,0% (C) 32.952 Quantity delivered evaluated monthAudit / certificates 92,9% (A) 4 Complaint quantity evaluated month

100>= A>=90 90> AB>=80 80> B>=60 C< 60 n.e. = not evaluated

Quality score / ppm degree of performance

1

38

100

1

100 100

1

59

16

100 100 100

0

10

20

30

40

50

60

70

80

90

100

03.2006

04.2006

05.2006

06.2006

07.2006

08.2006

09.2006

10.2006

11.2006

12.2006

01.2007

02.2007

Degr

ee o

f per

form

ance

Quality score PPM perf . Quality score last 12 mo PPM perf . Last 12 mo

Reporting of ppm

150 150 150 150 150 150 150 150 150 130 1301500

200

400

600

800

1.000

1.200

1.400

1.600

03.2006

04.2006

05.2006

06.2006

07.2006

08.2006

09.2006

10.2006

11.2006

12.2006

01.2007

02.2007

PP

M

PPM PPM target value PPM last 12 mo

Vendor Evaluation Quality ListVendor Status of Data 13.03.2007 01:53:24Plant Current User ELLINGER

Vendor Number Empty DemarcationVendor Number Empty Demarcation

Plant 2270Calendar Year/Month MAR 2006..FEB 2007

ABC classification (interval) Empty DemarcationMinimum charge Empty Demarcation

Currency Euro

Rating 100>= A>=90 90> AB>=80 80> B>=60 C< 60 n.e. n.e. = not evaluated

Vendor Plant Total Quality(last 12 months)

QualityRating

Quality Score(last 12 months)

Quality ScoreRating

PPM targetaverage

PPM performance(last 12 months)

PPMRating

ResultAudit

ResultCertificates

2220 Mahle Filtersysteme GmbH 2270 59,6 C 98,1 A 100 1,0 C 100,0 100,0Result 59,6 C 98,1 A 100 1,0 C 100,0 100,0

2230 Mahle Filtersysteme GmbH 2270 100,0 A 100,0 A 100 100,0 A 100,0 100,0Result 100,0 A 100,0 A 100 100,0 A 100,0 100,0

2231 Mahle Filtersysteme GmbH 2270 60,2 B 99,5 A 100 1,0 C 100,0 100,0Result 60,2 B 99,5 A 100 1,0 C 100,0 100,0

2260 Mahle Filtersysteme S.A. 2270 55,0 C 95,1 A 300 1,0 C 100,0 50,5Result 55,0 C 95,1 A 300 1,0 C 100,0 50,5

2262 Mahle Filtersysteme S.A. 2270 54,7 C 94,3 A 100 1,0 C 100,0 50,5Result 54,7 C 94,3 A 100 1,0 C 100,0 50,5

2266 MAHLE Componente de Motor SRL 2270 4,8 C 8,5 C 300 1,0 CResult 4,8 C 8,5 C 300 1,0 C

2287 Donghyun Mahle Filtersystems Co.Ltd 2270 100,0 A 100,0 A 300 100,0 AResult 100,0 A 100,0 A 300 100,0 A

7715 Mahle Aftermarket GmbH 2270 100,0 A 100,0 A 100 100,0 A 100,0Result 100,0 A 100,0 A 100 100,0 A 100,0

300159 Hengst GmbH &Co.KG 2270 100,0 A 100,0 A 300 100,0 A 100,0 100,0Result 100,0 A 100,0 A 300 100,0 A 100,0 100,0

300241 Karl Kaeppler GmbH u.Co.KG 2270 93,1 A 100,0 A 300 100,0 A 100,0 1,0Result 93,1 A 100,0 A 300 100,0 A 100,0 1,0

300291 Erwin Lutz GmbH. 2270 95,4 A 100,0 A 97 100,0 A 100,0 34,0Result 95,4 A 100,0 A 97 100,0 A 100,0 34,0

300346 Elring Klinger AG 2270 100,0 A 100,0 A 400 100,0 A 100,0 100,0Result 100,0 A 100,0 A 400 100,0 A 100,0 100,0

300363 Filzfabrik Fulda GmbH u.Co KG 2270 92,1 A 97,5 A 1.500 100,0 A 100,0 1,0Result 92,1 A 97,5 A 1.500 100,0 A 100,0 1,0

- Quality Graphic => for sending to supplier- Quality List => for overview suppliers

Selections to:Plant, A,B,C – vendor, etc.


Vendor Evaluation LogisticsStatus of Data 13.03.2007 06:04:09 Month/Cal.Year (Single, req.) FEB 2007

Company Code Current User ELLINGER Company Code Empty DemarcationPlant Plant 2270Vendor Vendor Number Empty DemarcationMaterial Material Empty DemarcationMaterial Class Material Class Empty DemarcationMaterial group Material Group Empty DemarcationMRP Controller MRP Controller Empty Demarcation

weighting complete evaluation100

logisticevaluation

80delivery consignation VMI

25 25 25adherence todelivery date

adherence toquantity

package VMI stock

40 60 0 80

Company Code Plant Vendor

Logisticstotal Logistics

evaluation DeliveryAdherence

todeliverydates

Adherence toquality

stipulations

WrappingConsignment VMI

VMI Stock

2020 2270 2220 Mahle Filtersysteme GmbH 45 45 45 31 65 0 0 02230 Mahle Filtersysteme GmbH 60 60 60 51 75 0 0 02231 Mahle Filtersysteme GmbH 24 24 24 1 58 0 0 02260 Mahle Filtersysteme S.A. 32 32 32 1 79 0 0 02262 Mahle Filtersysteme S.A. 41 41 41 22 68 0 0 02266 MAHLE Componente de Motor SRL 40 40 40 22 67 0 0 07715 Mahle Aftermarket GmbH 41 41 41 1 100 0 0 0300291 Erwin Lutz GmbH. 60 60 60 34 100 0 0 0300363 Filzfabrik Fulda GmbH u.Co KG 42 42 75 75 75 0 8 0300417 Rasmussen GmbH 34 34 34 13 66 0 0 0300424 Kurt Bauer u.Co.GmbH. 51 51 51 18 100 0 0 0300550 Kluthe GmbH 41 41 41 1 100 0 0 0300551 Kurt Kauffmann GmbH 46 46 46 22 84 0 0 0300794 Behr GmbH u.Co. 47 47 38 13 75 0 56 0300846 Boellhoff Verbindungstechnik GmbH 70 70 70 51 100 0 0 0300906 Dichtungstechnik G.Bruss 60 60 60 43 86 0 0 0301184 Gutekunst u.Co 41 41 41 1 100 0 0 0301217 Jakob Handte u.Co.GmbH 41 41 41 1 100 0 0 0301231 W.Hasert GmbH 49 49 49 41 60 0 0 0301431 Kerb-Konus-Vertriebs-GmbH 41 41 41 1 100 0 0 0301481 Kohler GmbH 70 70 70 51 100 0 0 0

logistical supplier evaluationBehr GmbH u.Co.evaluated month FEB 2007Vendor 300794 Behr GmbH u.Co.

complete logistical evaluation of the last 12 months

detailed view of current month

plant city complete evaluationdelivery consignation VMI kanban servicelogistic complete 47

2270 St. Michael ob Bleiburg 47 38 56 0 0

100 >= A >= 90 note: 0 = no evaluation! 90 > AB >= 80 80 > B >= 60 60 >C

annual overview

0

10

20

30

40

50

60

70

80

90

100

12.2006 01.2007 02.2007

degr

ee o

f per

form

ance

complete evaluation (month)

- Logistic Graphic => for sending to supplier- Logistic List => for overview suppliers

=> Data analysis from list flexible

BW Evaluations Logistics


BW Evaluation: Vendor total


Supplier assessment SAP ICH

Evaluation actual progn. stocks :

Proposel : red = 1 point

yellow = 50 scores Loading 80 %

(to customize) blue = 70 scores (to customize)

green = 100 scores


Supplier assessment SAP ICH

Stock evaluation which last tree months:

Proposel: red = 1 Point

yellow = 50 scores

(to customize) blue = 70 scores Loading 20 %

green = 100 Punkte (to customize)


Agenda

MAHLE GROUP

Supplier Management







FunctionACS Vendor Evaluation

(Version 6.0)AddOn / Modification

AddOn

Availability of the functionERP: project solutionBW: customerspecific

Automotive Consulting Solutionavailable for basisrelease>= 4.6C

Thank you foryour attention !


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