Value Sourcing, samenwerking in de

toeleverketen

Creating Smart Solutions

Jan Retera / Fred Westerveld

Supply Chain dept. KMWE

KMWEKMWE

Turnover 2010: ~ € 40 M

• KMWE Precision Components: € 15 M

• KMWE Precision Systems: € 20 M

• KMWE Malaysia: € 4 M

• Coşkunöz Turkey: € 1 M

KMWE Malaysia

Overview KMWE

Head Quarters; NL

Employees 2010: 290

• KMWE Precision Components: 135

• KMWE Precision Systems: 75

• KMWE Malaysia: 40

• Coşkunöz Turkey: 40

Competences:

• High mix, low volume production

• High complex and critical products

• Highly automated, 5 axis CNC machining

• Clean & Clean room assembly

• Functional tested products

• Value engineering support

• Global Supply Chain Management

• Global presence

KMWE TurkeyPrecision Systems; NL Precision Components; NL

KMWE Precision Systems - Netherlands

Scope:

• Assembly of Mechatronics Modules and or Systems

• Large mechanical, machining content

• Annual volumes of 50 to 500

• Ready to install, functional tested

• Support from engineering phase till repeatable production

Capabilities:

• Repeatable quality – reliable processes

• Clean room (Class 100.000; 10.000; 1000; 500)

• Functional testing

• Cleaning/Qualification

• Bonding

KMWE Market & Products

• Aerospace & Defence

• Semicon (Front End & Back End)

• Medical & Analytical

• Science & Industry

KMWE Market Facts & Figures KMWE NL

Value Sourcing

ISO 13485

AS 9100

ISO 9000

Klanten

Eisen op

Quality

KMWE One Page Strategy

KMWE Account team approach

KMWE Account

Manager

Su

pp

ly C

hain

Vertalen

naar

KMWE Required cost Roadmap from End Customers

Develo

pm

ent

Gro

wth

Intr

oduction

Declin

e

Matu

rity

LC: Volume

Original Cost

Small investment in the development phase will reduce the cost for long term

€

t

Value engineering .

ESI.

KMWE

Voorbeeld van Value Engineering vanuit de eindklant

Value engineering

* Based on 40 to 50 systems per year

Before, 51 subassemblies

610 parts

After, 32 subassemblies 470 parts

Result, 140 Items eliminated,> 25 % cost reduction *

Hoe wordt dit vertaald in de Supply Chain?

1. MENS Verbeterde werkmethodes

2. PRODUKT Verbeterde (bewerkings)processen

KMWE

Value Sourcing in de

Supply Chain

Waarom Value Sourcing binnen KMWE?

I. Leveranciers zijn bepalend voor succes van KMWE.(Inkoopwaarde bij Precision Systems (PS) bedraagt ~ 80% van de totale omzet en bij Precision Components (PC) ~ 20% van de totale omzet )

II. Klanten van KMWE stellen hogere eisen aan de supply

chain van KMWE;

a. Doorvertaling van de klant eisen in de gehele keten (OEM 1st Tier 2nd Tier etc).

b. Risico mngt. in de KMWE supply chain.

c. Trend naar verdere uitbesteding van ontwikkelwerkzaamheden in de keten.

d. Aantoonbare beheersbaarheid van product- en process-ontwikkeling in de gehele keten.

e. Toeleverancier dient specifieke competenties verder te ontwikkelen omdat eindklant dit niet meer doet.

KMWE

Cross

Functional

Teamwork

Supplier

Performance

Management

Sourcing

Segmentation

Strategy (Kraljic matrix)

The Main Drivers of Value Sourcing

MARKET REQUIREMENTS

VALUE SOURCING

(adapted) Source: ASML Netherlands

KMWE

Operational

Strategic Level

Tactical Level

Cross Functional Teamwork

Execute

Plan & Check

Define Realisatie

door

Samen-

werking

KMWE Leverancier

Supplier name Supplier number

van de Elsen

1 2 3 4 5 Status

Order yield - Q1 RED

Version control and archiving - Q2

Complaint handling - Q3

Proposal process - Q4

Agreed corrective actions / audit findings - Q5

Process control of the production process - Q6

Responsible business conduct - Q7

Quality performance of the supply chain - Q8

Supplier selection criteria throughout the supply chain - Q9

FSD's exclusive DOA’s / DOI’s - Q10

DOA and DOI parts at end-customers - Q11

Customer focus and craftsmanship - Q12

- Q13

Delivery reliability (2nd CLIP) - L1 RED

Order fulfilment flexibility (RLIP) - L2 RED

Delivery reliability (1st CLIP) - L3

Order time - L4

Order confirmation - L5

Intrinsic lead time - L6

Cycle time reduction - L7

Repair cycle time - L8

Process control ERP system - L9

Logistics performance of the supply chain - L10

Flexibility requirement - L11

Customer focus and craftsmanship - L12

- L13

Engineering change management - T1

Engineering / early supplier involvement- T2

Introduction of new products - T3

Production process structure - T4

Technology knowledge - T5

Investments on technology competence development - T6

Technology roadmap alignment - T7

Product design structure - T8

Product design process - T9

Continuous engineering improvement - T10

Process engineering - T11

Contamination control - T12

Technical support - T13

Technology performance of the supply chain - T14

Proto flexibility - T15

Customer focus and craftsmanship - T16

- T17

Market conformity - C1

Open costing - C2

Cost reduction programs - C3

Customer portfolio - C4

Market portfolio - C5

Lean maturity level - C6

Total cost performance of the supply chain - C7

Customer focus and craftsmanship - C8

- C9

95% 87,5% 75% 50% < 50%

A B C D E

Overall Vendor Rating C

Quality B

Logistics D

Technology B

Total Cost A

Lo

gis

tics

To

tal C

ost

Tech

no

log

yQ

uality

Confidential

Supplier Profile

205009 06-01-11

Revision date

Actual Wish

Source: ASML Netherlands

KMWE Documenten voor Value Sourcing

1. Value Sourcing Performance Indicators

2. Company Profile

KMWE Documenten voor Value Sourcing

3) Supplier Profile

Supplier name Supplier number

abc

1 2 3 4 5 Status

Order yield - Q1 RED

Version control and archiving - Q2 YELLOW

Complaint handling - Q3 GREEN

Proposal process - Q4 BLUE

Agreed corrective actions / audit findings - Q5

Process control of the production process - Q6

Responsible business conduct - Q7

Quality performance of the supply chain - Q8

Supplier selection criteria throughout the supply chain - Q9

FSD's exclusive DOA’s / DOI’s - Q10

DOA and DOI parts at end-customers - Q11

Customer focus and craftsmanship - Q12

- Q13

Delivery reliability (2nd CLIP) - L1 GREEN

Order fulfilment flexibility (RLIP) - L2 YELLOW

Delivery reliability (1st CLIP) - L3

Order time - L4 RED

Order confirmation - L5

Intrinsic lead time - L6

Cycle time reduction - L7

Repair cycle time - L8

Process control ERP system - L9

Logistics performance of the supply chain - L10

Flexibility requirement - L11

Customer focus and craftsmanship - L12

- L13

????? 01-01-11

Revision date

Confidential

Supplier Profile

Qu

ality

Lo

gis

tic

s

Value Sourcing Performance Indicators

Version 2.0 – November 2010

KMWE Documenten voor Value Sourcing

4. Smart Action Plan

Plan geeft de

weg aan om

van “Actual”

naar “Wish” te

komen

Stappen plan voor het invoeren van Value Sourcing Q-deel (geldt ook voor L, T en C)

Bepalen van de “WISH” score door KMWE Systems in

samenspraak tussen SCM en SQA

Bepalen van de “ACTUAL” score vlgs KMWE Systems (Klant)

actie SCM en SQA

Leverancier bepaalt eigen “ACTUAL” score actie Leverancier

Meeting tussen KMWE Systems (Klant) en leverancier

• Overeenstemming realiseren van de “WISH” scores

• Overeenstemming realiseren van de “ACTUAL” scores

• Opstellen en overeenkomen van het actieplan

• Voortgang meten op de actieplannen

Stappen plan voor het invoeren van Value Sourcing Q-deel (geldt ook voor L, T en C)

Focus verlegging:

1. Van Quality Control naar Quality Assurance

2. Consequenties van QC naar QA:

• Controleren €

• Analyseren €

• Correctieve maatregelen €

• Preventieve maatregelen €

3. Maandelijkse terugkoppeling van operationele performance met

als doel om structurele verbetering te realiseren

=

Wat betekent dit voor de leverancier ?

Objectieve communicatie tussen leverancier en KMWE . op basis van QLTC.

Meetmethodiek die door meerdere OEM’ers gebruikt . wordt leidt tot eenduidigheid van de gevraagde eisen.

Verhoogde zichtbaarheid binnen de KMWE organisatie

Werkt als spiegel voor de deelnemende partijen.

Lessons Learned binnen KMWE !

Communicatie wordt naar ander niveau verplaatst wat leidt tot betere begripsvorming van de belangen.

Eigen processen kunnen beter uitgerold worden in de supply chain.

Bepaalde toeleveranciers hebben meer competenties dan zichtbaar was binnen KMWE.

Subjectieve (interne) meningen moeten nu onderbouwd worden