2006_3_Daimler Supplier Magazine_eng
Transcription
2006_3_Daimler Supplier Magazine_eng
GlobalSupplier Global Supplier 03|2006 – An Extended Enterprise® Magazine for DaimlerChrysler suppliers and associates BlueTec: Meeting Tomorrow’s Standards Today DaimlerChrysler will present its innovative BlueTec technology at this year’s IAA Commercial Vehicle Show in Hanover. Without the smooth, reliable cooperation between suppliers and Procurement Truck Group and Buses (PTG) the BlueTec success would have been inconceivable. More on page 4. 02 Extended Enterprise® Contents Contents Global Supplier 03|2006 Cover Story 04 BlueTec: Meeting Tomorrow’s Standards Today Procurement Mercedes Car Group and Vans 19 Technology advantages at the IAA Commercial Vehicle Show Strong Partnerships Strong cooperation with system suppliers plays a key role for PMC Spotlight 20 09 Preview: Global Supplier Award 2006 (Global) 22 09 Designs for the 2006 Global Supplier Awards Trophy (Global) PMC lives a culture of high performance and intensive feedback Global Procurement and Supply Chrysler Group 10 12 Sustainability as Global Commitment 24 Future Challenges Procurement Truck Group and Buses Global Responsibility The New Management Model strengthens IPS’s procurement position A Factory in the City A new production building at the DaimlerChrysler-plant Gaggenau 18 Opening the Door in North East Asia The Chrysler Town & Country is being produced and sold in Asia International Procurement Services 16 Driving the Change Successful supplier cooperation is based on common values Purchasing activities for vans were transferred from PTG to PMC 14 A Brilliant Outlook Paint-film coating as a key technology for modular vehicle construction Standards for Global Business Relationships The Global IT Frame Contract strengthens worldwide supply partnerships 26 Performance Based Supplier Support PTG concludes successful “quality offensive” with a supplier Global Supplier 03|2006 Editorial 03 Well Prepared for the Future Editorial Well Prepared for the Future Thomas W. Sidlik Member of the Board of Management Executive Vice President of the cleanest light trucks in the world. Thanks to its parallel-hybrid system with combined diesel engine and electric motor/generator technology, this truck, primarily intended for use in urban areas, consumes 20 % less fuel and emits 46 % less particulates. In addition, with its BlueTec technology DaimlerChrysler is not only meeting the environmental standards and economic requirements of today but also building a solid foundation for the innovations of tomorrow. For a good look at how much this progressive, future-oriented technology is the result of outstanding cooperation with suppliers, please see the cover story starting on page 4. Global Procurement & Supply DaimlerChrysler To our Readers, September 2006 – the IAA Commercial Vehicle Show in Hanover will open its doors. Not only are we at DaimlerChrysler really looking forward to this event, so are our suppliers and customers. There will be many new products presented along with technologies already anticipating today what will be coming tomorrow. Customers and the trade press will be asking the exhibitors a lot of questions, not the least of which will be whether they are well prepared for the future. My answer to that question right now: Yes, we at GP&S are well prepared for the future. In our Procurement Truck Group and Buses (PTG), through the G-PEP program we have set the framework for a successful global organization to support the Mercedes-Benz, Freightliner, Thomas Built Buses, Sterling Trucks, Fuso, Setra, Western Star Trucks, Orion and Detroit Diesel Truck Group brands. With its Canter Eco Hybrid the DaimlerChrysler subsidiary Mitsubishi Fuso has introduced one But we’re not only well prepared for the future with our commercial vehicles. GP&S is a global organization with established lead buying as an essential factor. Our many new passenger cars for 2006 have been enthusiastically received by our customers. Whether it’s the new Mercedes GL-Class, which sets new standards in the luxury SUV segment, the Jeep Compass, the Chrysler Aspen or the Dodge Nitro – just to name a few. With their innovative technologies and exciting designs, all these new vehicles are sure to generate a lot of interest. In the course of the strategic and operative integration of the Group through DaimlerChrysler’s New Management Model, the global supplier program Extended Enterprise® will play an even greater part in our mutual success. This reorganization has set an important agenda for realigning all of our business units and developing an even stronger and more effective organization. This effort concerns Global Procurement & Supply as whole and will also affect the individual purchasing units. For example, you may find out more about the integration of the van business from Procurement Truck Group and Buses (PTG) into Procurement Mercedes Car Group and Vans (PMC) on page 12 and about the new directions at International Procurement Services (IPS) on page 14. On pages 22–23, Frank W. Deiss, the head of Procurement Mercedes Car Group and Vans (PMC), explains how important a culture of high performance and intensive feedback between DaimlerChrysler and its suppliers really is in ensuring the long-term competitiveness of both sides of our partnership. In the current situation faced by the automotive industry, Deiss firmly believes that “major change should be viewed as a major opportunity” and that everyone needs to work together to proactively shape the future. For instance, the introduction of the Chrysler Town & Country into the North East Asian market clearly shows that for a global enterprise like DaimlerChrysler, proactive shaping of the future does not stop at national borders or at the edge of continents. This Chrysler minivan is not only finding a promising sales market there, it’s being produced there as well: In spring 2006 the first Chrysler Town & Country left the plant of the China Motor Corporation in Yangmei, Taiwan, where it is being built as part of a new joint venture. Read more on page 24. This issue of Global Supplier Magazine covers these and other global procurement activities of DaimlerChrysler. These global activities confirm that the further increase in our global scope will be an enabler for our success into the future. It proves once again that what’s true for GP&S also applies to the company as a whole: We are well prepared for the future. With my best regards, Thomas W. Sidlik 04 Cover Story BlueTec: Meeting Tomorrow’s Standards Today Extended Enterprise® BlueTec: Meeting Tomorrow’s Standards Today In anticipation of the Euro 4 exhaust emissions standards to take effect as of October 2006, DaimlerChrysler will present its innovative BlueTec technology at this year’s IAA Commercial Vehicle Show in Hanover. Without the smooth, reliable cooperation between suppliers and Procurement Truck Group and Buses (PTG) the BlueTec success story would have been inconceivable. Global Supplier 03|2006 Cover Story BlueTec: Meeting Tomorrow’s Standards Today 05 Driving the fast lane to leadership in technology: BlueTec in the series Mercedes-Benz Atego, Actros and Axor. The Challenge: Stricter Emissions Standards With the introduction of the Euro 0 standards in 1990, the European Union (EU) started to implement a gradual reduction in the amount of pollutants permitted in motor vehicle exhaust. Soon the Euro 4 standards will take effect in October 2006, followed by the Euro 5 ones in October 2009. This step-by-step reduction of harmful emissions is making great demands on the technologies and resources at vehicle manufacturers. What’s more, a continuation of the EU’s program to reduce such pollutants (Euro 6) is considered a certainty. For DaimlerChrysler, this clear trend toward even cleaner diesel technology has already been made a major part of its intensive development work. In fact, in the spring of 2005, over four years before the due date, DaimlerChrysler was the first vehicle manufacturer to put trucks that were already Euro 5 compliant on the market. The Cornerstone: SCR Technology The Euro 1 to Euro 3 emissions standards were able to be met by further improvements in internal engine design. However, the subsequent standards can only be achieved through aftertreatment of exhaust gases. There are two fundamental ways of approaching this problem: One approach involves further modifying the engine to reduce the amount 06 Cover Story BlueTec: Meeting Tomorrow’s Standards Today Extended Enterprise® The close cooperation between the buyers at PTG and suppliers is the key to the BlueTec success story: “All the suppliers did outstanding work, from initial development all the way to the start of series production,” stated Thomas Beer, Lead Buyer for exhaust systems at PTG. Employment of BlueTec in public transit buses. BlueTec: engine and SCR components. of nitrogen oxide emissions by using exhaust gas recirculation along with downstream filtering of particulate matter. The other approach to reducing nitrogen oxides is to employ a particle reduction method within the engine followed by aftertreatment of the exhaust by means of Selective Catalytic Reduction (SCR). Due to its extensive global presence, DaimlerChrysler has had considerable experience with both methods. Because of the specific market conditions encountered in Europe, DaimlerChrysler decided to go with SCR, which it is now marketing under the brand name “BlueTec”. 1,500 filling stations from the Arctic Circle to the south of Spain and from Ireland all the way to Moscow. For owners of large vehicle fleets, such as trucking companies, a practical and economical alternative would be to have their own separate AdBlue pumps available at their truck depots. The Decisive Innovation: BlueTec BlueTec combines SCR technology with further improvements in the diesel engine. Since nitrogen oxide can be effectively reduced by means of exhaust gas aftertreatment, the engine can then be designed to optimize combustion, which already results in less particulate emissions and greatly reduced fuel consumption. By introducing an additive called “AdBlue” (an aqueous urea solution) into the exhaust gas stream, the SCR technology converts the nitrogen oxide in the SCR catalytic converter into the harmless substances water and nitrogen. This SCR technology, which was originally developed for emission control in power plants, has been further developed by DaimlerChrysler since the late 1980’s. The SCR system consists of an AdBlue tank, a metering system and a catalytic converter located in the muffler. Today, AdBlue is already available at over The Advantages: Both Ecological and Economical No other currently employed diesel technology can reduce harmful particulate and gaseous exhaust emissions as well as BlueTec. BlueTec is not only environmentally-friendly, it’s also extremely economical to use. That’s because the optimized combustion process reduces fuel consumption from 2 to 6 %. In addition, purchases of low-emissions vehicles are being promoted in many European states through government incentive programs. For example, in Germany the highway toll for Euro 5 vehicles is up to three cents less per kilometer. Real Teamwork: Suppliers and Procurement The close cooperation between the buyers at PTG Procurement and suppliers is the key to the BlueTec success story: “All the suppliers did outstanding work, from initial development all the way to the start of series production,” stated Thomas Beer, the Lead Buyer for exhaust systems at PTG. The development of this new diesel technology occurred in close cooperation with the system integrator Purem Exhaust Systems (a 100 % subsidiary of DaimlerChrysler) and the suppliers Eberspächer, Global Supplier 03|2006 Cover Story BlueTec: Meeting Tomorrow’s Standards Today 07 The BlueTec system ist perfectly adapted to each truck model and its performance. Tenneco Automotive, Argillon, Hilite, Rhein Bonar, Elkamet and Kautex. During this development work, it was necessary to keep to a very tight three-year schedule. The concept competition and the selection of suppliers took place in 2001/2002, and by the spring of 2005 the first BlueTec5-equipped truck left the Wörth assembly plant. The installation space and weight allocated for the system as well as fine-tuning the AdBlue injection with the catalytic converter presented some very tough technical challenges. Many parts of the system were especially developed in close cooperation with the supply partners. That’s why the complex system was not sourced just from one single system supplier but from several suppliers and technology partners. Eberspächer and Tenneco Automotive were responsible for the muffler housing, Argillon for the catalytic converters, Hilite for the metering system and Rhein Bonar, Elkamet and Kautex for the tanks. Purem Exhaust Systems was in charge of ensuring efficient supplier management and integrating the individual components. “The biggest challenge,” recalls Dr. Ralf Pötzschke, the Euro 4 project manager, “was to adapt the great complexity of the technology to meet the needs of a commercial-vehicle installation within a relatively short period of time and then to get it ready for series production.” The Purchasing Perspective: Flexibility and Fairness The use of a new technology always presents a big challenge in achieving cost targets and in ensuring the overall cost-effectiveness of a project. The foundation for successful cooperation is already laid with the selection of suppliers: “In this case, we were able to draw on an international set of suppliers and make comparisons of price and performance on a global basis and also conduct joint analyses with our colleagues at passenger car procurement,” Beer explains, adding that “the goal was to select the best suppliers worldwide based on technical and cost criteria. The change-management system employed during the development phase is also an important part of our cost-control measures. Innovative projects like BlueTec can only succeed if suppliers keep their word and keep their costs transparent during any subsequent change management.” Another success factor in the purchasing activities was the crossfunctional collaboration among the Development, Quality Assurance, Production and Purchasing departments. In view of the very tight project schedule, this smooth cooperation was of major significance to the success of the project. High Demand Speaks for Itself The launch of the new BlueTec technology has exceeded all expectations. Originally, 5,000 units were planned for 2005, but only a year after BlueTec’s introduction, the DaimlerChrysler plant in Wörth had already produced 10,000 trucks with the BlueTec system. This system was first featured on the Mercedes-Benz Actros heavy truck, followed by implementation on Axor and Atego trucks as well as Mercedes-Benz buses. 08 Cover Story BlueTec: Meeting Tomorrow’s Standards Today Extended Enterprise® The BlueTec project team including representatives from Argillon, DaimlerChrysler, Eberspächer, Hilite, Purem, and Tenneco Automotive. The high demand for this new diesel technology speaks for itself: around two thirds of all Euro 4/Euro 5 trucks display the Mercedes star. An Investment in the Future: BlueTec Worldwide At DaimlerChrysler, BlueTec technology not only means success now but also an investment in the future. That’s because the SCR technology doesn’t just ensure compliance with the Euro 4 and Euro 5 emissions standards, it’s also the basis for complying with future ones. Even today, DaimlerChrysler is already in a very good position to meet the stringent requirements of the Euro 6 emissions standard, which is the next phase of emissions legislation and is expected to take effect in 2012 for all commercial vehicles registered in Europe. But that’s not all. BlueTec is also attracting greater interest in markets beyond Europe. For instance, in three to four years countries in the NAFTA region and Japan will introduce the EPA 10 and JP 09 exhaust standards, respectively. And SCR will Europe Japan be the technology used to meet these standards. For this reason, work is now proceeding ‘full steam ahead’ on the Euro 6 project, particularly in getting ready for future technical innovations by identifying parts that could be potentially shared worldwide. From his Lead Buyer’s perspective, Thomas Beer notes the following: “Our consistent application of global lead buying enables us to pursue a common supplier strategy with our colleagues in Japan and the US right from the start and to implement it successfully.” With a new project like this, PTG has one primary goal in its cooperation with suppliers. “When it comes to price and technology, we expect reliable and sustained benchmark performance from our supply partners,” emphasizes Dr. Marcus Schoenenberg, in charge of Powertrain purchasing, adding that “in return, as the world’s largest manufacturer of commercial vehicles we can offer our suppliers some interesting perspectives and prospects, such as collaboration on exciting cutting-edge projects along with attractive production volumes.” Additional information: BlueTec web special at www.mercedes-benz.com in the section “Trucks” www.purem.de Global Supplier 03|2006 Spotlight Global 2006 Global Supplier Award 09 Global A Trophy to Honor Suppliers In January 2007, Global Procurement & Supply (GP &S) Representatives from GP &S recently reviewed six diswill honor the winners of the 2006 Global Supplier Award tinctive designs for the 2006 Global Supplier Awards in Detroit. Trophy. Detroit, Michigan | USA The 2006 Global Supplier Award will be assigned in nine categories: six Production Commodities (Chassis, Electrical/Electronics, Interior, Exterior, Powertrain and Raw Materials), two Non-Production Commodities (General Goods & Services, Production Equipment & Services) and Logistics. To become an eligible supplier for this year’s award, suppliers have to fulfill certain requirements, such as global business relations and a specific volume of business with DaimlerChrysler. Where Production Commodities are concerned, the business volume with the Chrysler Group on the one side and the combined business volume with the Truck Group and Mercedes Car Group on the other needs to amount to at least three million euros in each case. Suppliers of Non Production Commodities must reach a volume of one million euros each in at least two of the following three regions: NAFTA, Europe & South Africa and Asia/Pacific. In the category of Logistics, only suppliers are eligible who cooperate with DaimlerChrysler on a global scale. Here again, the minimum business volume is one million euros. The determining factor for winning the award is the supplier’s performance in the four value drivers – quality, technology, cost and supply. The names of the winning suppliers will remain a well-kept secret until the award event at the historic Firehouse in Detroit in January 2007. Auburn Hills, Michigan | USA Students from Detroit’s highly regarded Center for Creative Studies presented their designs at DaimlerChrysler Headquarters in Auburn Hills. Finalists shared with the GP&S panel how each forward-looking design symbolizes the cooperation so evident throughout the DaimlerChrysler Extended Enterprise®. The selected design will be crafted with materials that add further symbolism, and will be presented to winning companies in each award category. As in past years, the fourth annual event will be held at the historic Detroit Firehouse in conjunction with the 2007 North American International Auto Show. The Global Supplier award supports the philosophy of the company’s Extended Enterprise® – making quality parts, with appropriate technology, delivered on time, at a fair price. “The Global Supplier Award recognizes our top performing partners, who are exceeding our expectations,” said Thomas W. Sidlik, Board of Management Global Procurement & Supply. “These fine, talented students help communicate our close and cooperative partnership through their inspired artwork.” The top three winning trophy designers will each earn a scholarship from DaimlerChrysler. Detroit’s College for Creative Studies is one of the US’s leading arts education institutions. Your contact: Your contact: Andrew Ogawa, GOP Communications Andrew Ogawa, GOP Communications [email protected] [email protected] Additional information: http://daimlerchrysler.covisint.com 10 Global Sustainability as Global Commitment Extended Enterprise® Sustainability as Global Commitment Integrity, social responsibility and environmentally friendly policies are major factors in DaimlerChrysler’s success. An increasingly globalized economy will make them even more important in current and future supplier relationships. Setting a Global Example The increasing globalization of business relationships has not only expanded the areas of activity of global companies, it has also extended their areas of responsibility. The increase in economic integration and the growing need for mobility is also changing the underlying economic, ecological, social and political parameters. Correlating these factors with the sustained corporate success of DaimlerChrysler is a global challenge, not only for its employees but also for its value-adding supply partners. Only a global commitment to a common set of core values will enable these challenges to become success factors, stresses Thomas W. Sidlik, Vice President Global Procurement & Supply: “We walk the talk, valuing partnerships based on mutual trust. We have four corporate values that drive all we do: passion, discipline, respect and integrity. Those values permeate everything we do at Global Procurement & Supply: Our passion for high quality products at the best possible price, the discipline to follow our established processes for long-term success, our respect for our co-workers and our supply base, and integrity of action marked by fairness, honesty and trustworthiness.” Conserving Resources and Minimizing Environmental Impact The “Global Compact”, an agreement between corporations and the United Nations concluded in 2001, provides for minimum social and ecological standards in business activities. DaimlerChrysler doing more than keeping to this agreement in formal sense, it is also actively applying it. In fact, this commitment is well documented in its 2006 Sustainability Report. DaimlerChrysler is promoting new product and production technologies that conserve natural resources, minimize environmental impact and preserve natural ecosystems. A good example of this approach is the use of natural fibers. For the first time ever in automobile construction, abaca natural fibers are now being used in vehicle exteriors – in the Mercedes-Benz A-Class and B-Class. These fibers come from banana plants grown in the Philippines. DaimlerChrysler’s commitment to production with minimal impact on the environment also applies to materials and components sourced from its suppliers worldwide. In this respect, particular attention is paid to criteria applying to materials selection and recycling requirements. To ensure that appropriate consideration is given to ecological factors in collaboration with suppliers, the applicable “Supplier Plans” call for implementation of environmentally friendly technologies, materials and production methods and their continuous analysis and evaluation. Many suppliers to DaimlerChrysler now are in compliance with the ISO Standard 14 001. In fact, this certification is already mandatory for suppliers to DaimlerChrysler plants in the United States. Addressing Social Responsibility DaimlerChrysler is convinced that social responsibility is a key factor in its long-term success. Fair wages, equal opportunity and solid program of qualification will make globalization an opportunity for international cooperation based on equality. The “Mondialogo” competition is emphatic confirmation of this approach: In cooperation with UNESCO, DaimlerChrysler started this initiative to promote global dialog among different cultures. More than 1,700 young engineers from 79 countries worked closely together to apply new technologies to improve conditions in developing countries. Beyond this, DaimlerChrysler’s procurement activities seek to support ethnic minorities and disadvantaged social groups. Within the past seven years alone, DaimlerChrysler has almost doubled its purchases from such suppliers. Moreover, through numerous activities DaimlerChrysler is supporting increased levels of sourcing from minorities in the Tier 2 supply chain. As result, in 2005 two minority suppliers that achieved extraordinary success in helping themselves become better qualified were honored by DaimlerChrysler as a “Minority Business Enterprise of the Year.” A Concerted Effort for a Common Future DaimlerChrysler is committed to corporate leadership that focuses on values that will help shape a better future. However, these economic, ecological and social policies can only be globally applied if all its business partners share these same exact values. To this end, Mr. Sidlik recently made it abundantly clear that this is exactly what DaimlerChrysler expects from its suppliers around the world: “As globally acting companies, we all have the corporate responsibility to foster technologies and processes that respect the environment, to be actively committed to all people by displaying the highest ideals in social responsibility and to continue to research and develop technologies that will improve mobility and safety for people who drive our vehicles. We all have to lead by example when it comes to living these values. We will. And we are counting on our suppliers to do so, too.” Your contact: Dr. Norbert Otten, EA/S Policy Issues & CSR [email protected] Additional information: www.daimlerchrysler.com/sustainability Global Supplier 03|2006 Global Living Values: cover of the DaimlerChrysler 2006 Sustainability Report. Sustainability as Global Commitment 11 12 Global Future Challenges Extended Enterprise® Future Challenges As part of the New Management Model at DaimlerChrysler, the purchasing responsibility for vans was transferred from Procurement Truck Group and Buses (PTG) to Procurement Mercedes Car Group and Vans (PMC). This integration was completed last month. Integrated Procurement Activities The transfer of van-related purchasing volumes to PMC means that in the future these procurement activities will be fully integrated into passengercar procurement. In accordance with this move, the organizational units were realigned to conform with the New Management Model; at the same time, the related integrative processes were also completed. Within PMC, the new responsibilities for van parts and systems were assigned based on the existing commodities arrangement. PMC has already separately informed its suppliers about any possible changes there are in contact persons. In addition, purchasing methods and tools have been recoordinated as needed within PMC and at suppliers to ensure that standardized, uniform processes are in place. Potentials in Integration Starting last March, the first procurement functions as well as the duties of the purchasing offices in Vitoria (Spain) and Buenos Aires (Argentina) were transferred over to PMC. This transfer did not mean any changes for all suppliers served by the purchasing offices in Spain and Argentina. In general, the reorganization of the purchasing units will particularly benefit those suppliers that have already been providing services for vans and passenger cars. Building on Recent Successes Ekhard Kaltenbrunner, Director of PMC/6, will now also be the key account manager for the van area. For Kaltenbrunner the integration was “thoroughly positive” experience. He stressed that it had been “a positive one because the process was implemented in a professional manner and with great consideration for the concerns of the personnel involved.” As far as the transfer of van services to PMC is concerned, Stefan E. Buchner, Vice President of PTG, feels very optimistic, stating that “I’m very sure that our colleagues at PMC will be able to seamlessly build on the recent successes that we’ve had, for example in purchasing for the new Sprinter.” Frank W. Deiss, Vice President of PMC, sees it the same way: “I’m looking forward to working with a highly motivated team and excellent suppliers. In fact, the integration of the van business into PMC is really going to have a stimulating effect on the exchange of ‘best practices’.” Future Challenges One of the big challenges for PMC will lie in continuing to successfully support the ongoing globalization of the van business. In 2007, the Buenos Aires production plant will begin making the new Mercedes-Benz Sprinter, while at the same time parallel production of the current Sprinter model will continue there as well, presumably until 2009. In Charleston, South Carolina (USA), the new Sprinter will be built for the NAFTA region, and in Fuzhou (China), a joint venture is planned in order to produce the new Vito/Viano models and the new Sprinter for the Chinese market. Global Supplier 03|2006 Global Future Challenges Düsseldorf, Ludwigsfelde | Germany Your contacts: Volker Bahr, PMC/63 [email protected] Karlheinz Hertweck, PMC/62 [email protected] Buenos Aires | Argentina Vitoria | Spain 13 14 International Procurement Services Global Responsibility Global Responsibility Extended Enterprise® Global Supplier 03|2006 International Procurement Services Global Responsibility 15 The New Management Model at DaimlerChrysler is designed to further integrate the Group’s business units and to allow them to place even greater emphasis on their core tasks and responsibilities. For International Procurement Services (IPS), this means an expansion of its consistent, globalized approach through a realignment of its organizational structure. Change Means Opportunities Today’s fierce competition in the automotive industry has also produced tougher conditions on the worldwide procurement market. At the same time, this situation is also opening up opportunities for change that will lead to sustained strengthening of DaimlerChrysler’s market position. The New Management Model (NMM), presented this past spring by Dr. Dieter Zetsche, Chairman of the Board of Management of DaimlerChrysler AG and Head of Mercedes Car Group, is a decisive step in this direction. Its objective is to realign all of the Group’s business units with a view toward further increasing efficiency and improving operational excellence. Initiatives for a Successful Future As one of the four purchasing units within Global Procurement & Supply (GP&S), IPS will apply the NMM to further integrate its organization. “This new organizational structure, which was recently approved, will enable us to focus even better on our core tasks,” explains Dr. Heinrich Reidelbach, Vice President IPS. “At IPS, we’re working very hard to seize the opportunities presented by the NMM and to guide our organization into a secure and successful future. In fact, much of what was initiated in the past, such as the Global NPM Network (GNN) and Lead Buyer activities as well as the strategic directions at IPS, already anticipated the approach defined by the NMM. That’s reason enough to have full faith in a bright future for our organization.” Global Procurement Responsibilities Since, in the past, IPS had already started many initiatives that are helping to meet the objectives of the NMM, the current realignment of its organizational structure will proceed even more smoothly. Furthermore, the integration of the additional global procurement activities for nonproduction materials and services into IPS has considerably increased its scope of responsibilities. An important step in the organizational change has also been the merger of the three operative purchasing units, IPS/G, IPS/P and IPS/M, into two new units called “Global Procurement Production Equipment and Construction (IPS/P)” and “Global Procurement Marketing and IT (IPS/M)” with global procurement responsibilities. Since August 1, 2006, the unit now known as “Global Procurement NPM Subsidiaries (IPS/S)” (previously IPS/I) takes on direct responsibility for 18 locations and operative responsibility for nine additional ones. In order to better handle this expanded scope, the coverage at IPS/S has been subdivided into four regions – NAFTA, South America, Europe/South Africa and Asia/Pacific. Standardized Processes and Systems The unit previously known as IPS/S is now called IPS/B, which stands for “Business Management and Global Governance.” In fact, the goal of operational excellence that is included in the NMM means that IPS/B now has a special function: It is responsible for ensuring the implementation of existing IPS processes and systems as well as the standardization and redevelopment of processes for the new locations now served by IPS. The objective here is to introduce the processes and systems documented in the IBooK (IPS Book of Knowledge) across the board in the coming years while still taking the special conditions and specific requirements of each location in consideration. In particular, systems such as GLOBUS, GPSIS, Web Lead Buying or L@rs as well the Commodity Strategy and External Balanced Scorecard supplier management processes are to be implemented at all IPS locations. This will be done on the basis of the Common Commodity Code (CCC). The consistent deployment of standardized processes and systems will allow IPS to make better global purchasing decisions based on data that is readily comparable, globally available and continuously updated. Realignment of Plant Purchasing Areas to Come in 2007 The unit IPS/D “Procurement NPM Germany” will remain largely unchanged except for being expanded by an additional department in charge of purchasing for company owned sales and service outlets. More changes are to follow in 2007, when an organizational realignment of the German plant purchasing departments (IPS/D) is planned. Continue to Maintain Benchmark Position The measures mentioned above, designed to achieve greater efficiency and global presence, will greatly contribute toward strengthening the position of IPS and its suppliers in today’s global competition. The new structure at IPS will allow to use the opportunities presented by the NMM to continue to maintain the benchmark position worldwide. Accordingly, Dr. Reidelbach stresses the following: “In this way, we’ll be vigorously supporting the strategy of the entire DaimlerChrysler Group as well as strengthening our own position as the Group’s global procurement organization.” The IPS-Team (right to left): Horst Straub, Director Global Procurement Marketing & IT (IPS/M); Dr. Heinrich Reidelbach, Vice President IPS; Gabriele Muz, Director Business Management & Global Governance (IPS/B); Thomas van Lessen, Director Procurement Non-Production Material Germany (IPS/D); Klaus Saalmann, Director Global Procurement NPM Subsidiaries (IPS/S) and Jim A. Sorensen, Director Global Procurement Production Equipment & Construction (IPS/P). 16 International Procurement Services A Factory in the City Extended Enterprise® A Factory in the City A Production Center for Special Transmissions Before construction of the new Building 60 at the DaimlerChrysler plant in Gaggenau could even begin, the planners first had to find a place to put it. Given the cramped conditions on the plant grounds, several buildings had to be torn down and the existing grade then lowered by four meters, a step which required removal of 32,000 cubic meters of earth. Only after all this had been accomplished could the foundation for the new structure be laid out. In October 2004, erection of the new factory building began on a site of 6,000 square meters. The two-story building, with a total of 12,000 square meters of floor space, was to be the new consolidated location for the production of special transmissions, which had previously been spread out over several buildings. Standards and Innovative Solutions Right from the start of planning, it was clear to project manager Ola Hanell (WG/TS) that this construction project would demand greatest dedication from all concerned and require some innovative solutions: “The schedule was extremely tight, the technical challenges were enormous and the cost targets were very ambitious.” Added to all this was the fact that the existing industry standards for one-story production buildings had only limited application to the construction of a two-story one. This initial situation meant that there were some uncertainties but also some opportunities to work with the planners and suppliers to develop new approaches and solutions. “At DaimlerChrysler, we had set our sights very high and also expected the same from our suppliers in order to prevent any unpleasant surprises on either side as early on as possible,” Hanell explains. High Quality and Fast Assembly Among the biggest challenges in the construction of this building were the planning and installation of the supporting framework and concrete slabs. For instance, the standard grid spacing of supports on the upper floor was doubled to 28.80 meters, thus allowing greater flexibility in setting up systems and machines. Both the ground floor and the upper floor were designed to withstand a load of 5 tons per square meter on. This degree of stability was necessary not only to handle the weight of the production systems themselves but also the considerably higher “live” loads encountered during system changeovers. “A new feature was the method of constructing the building shell,” recalls Gerhard Bender, the construction supervisor for the new building: “Within only 24 hours, 2,000 square meters of concrete were placed and then immediately coated with water-glass sealer.” A major factor in ensuring the achievement of the quality, cost and scheduling targets during this construction phase was the special dedication on the part of Rheiner Stahlbau GmbH. “We had some very positive experiences with this supplier: exemplary planning, outstanding delivery logistics and super-smooth assembly of the 2,500 tons of heavy steel framing. In addition, they provided detailed documentation of their raw-material suppliers as well as clear and accurate inventory records and billing documents. What’s more, they met all the cost targets specified in the contract and were very fair and cooperative in handling any necessary changes and additional work.” The Right Partners for Project Planning and Construction Knut Helmstätter, Project Manager for Technical Building and Facilities, emphasizes that the new facility meets the most modern technical standards: “Even though we had only six months to set up all the technical facilities, the planners and suppliers did some very good work. Furthermore, we had to have step-by-step, on-the-fly coordination of broad range of subcontracted services, such as installation of cooling lubricant systems, with the construction-related planning at the plant.” Florian Manhart (IPS/PB), in charge of construction purchasing in Germany, feels that the prompt realization of this factory can be attributed to the good collaboration among all those involved in the project: “Despite an exceedingly tight schedule and ambitious cost targets for Building 60, we succeeded in constructing a high-quality, attractive structure because we had engaged the right partners for project planning and construction. Our suppliers made fair, competitive offers, were cooperative and constructive in their work with us and charged fairly for their services. You can be sure that when it comes to future construction projects, we’re going to look even harder all over Germany for these kinds of partners, develop relationships with them and prefer them in requesting quotes and bids for new projects.” Some Unusual Local “Insights” All the construction phases are now successfully completed, and production of special transmissions has now started in Building 60. Beyond that, the residents of Gaggenau are amazed at the unusual view they have of the inner workings of the facility as seen through the new building’s expansive glass front sections facing the town, an architectural feature specially designed by the studios of Kohlbecker Architects and Engineers, located in Gaggenau. “This large glass area gives people in Gaggenau an opportunity to literally get some real insight into the operations at the DaimlerChrysler plant,” explains Prof. Christoph Kohlbecker. “As a resident of Gaggenau, I find that the sight of this building all lit up at night is a very pleasant one.” Global Supplier 03|2006 International Procurement Services A Factory in the City 17 It took only 18 months to construct one of the DaimlerChrysler Group’s most modern production facilities at its Gaggenau plant. The project team from the Gaggenau plant’s Technical Service department (WG/TS) and International Procurement Services (IPS) are justifiably proud of the result. 18 International Procurement Services Standards for Global Business Relationships Extended Enterprise® Standards for Global Business Relationships The Global IT Frame Contract worked out by International Procurement Services (IPS) sets forth the contractual basis for governing worldwide supplier partnerships. In fact, it has already become a widely accepted model for making such arrangements. A New Contract Model International Procurement Services started working on drawing up the first Global IT Frame Contract some three years ago. The idea behind this project was to devise and implement a new contract model covering the well-established collaboration with globally active suppliers. This model was intended to meet the needs of the global procurement activities at IPS as well as the global requirements for standardization mandated by DaimlerChrysler. A global framework agreement of this type was first developed with T-Systems, one of DaimlerChrysler’s top suppliers. This agreement with T-Systems took effect on January 1, 2004, and at the end of 2005 it was renewed for another three years. Cross-Functional Collaboration in Preparing the Agreement “Drawing up this first global framework agreement is certainly a milestone in defining the partnership between IPS and its suppliers,” stresses Horst Straub Director General Procurement (IPS/M). “That’s because this agreement supports both the global orientation of IPS as well as our globally active supply partners.” For Frederique Vermelin (IPS/MI), the great challenge lay in crafting the Global Frame Contract in such a way that would specify standardized, globally applicable contract provisions and yet still allow enough flexibility for local and regional variants to be prepared as needed by Global NPM Network (GNN) locations. In addition, the objective was to bundle different contract contents and services into modules that could be ultimately brought together as a whole. “The collaboration among the contributing departments, procurement and the legal staff at Global DaimlerChrysler as well as with the suppliers turned out to be particularly valuable,” Vermelin reports. “In the final analysis, the resulting agreement represents a great achievement for all those involved.” Benefits for DaimlerChrysler and its Suppliers The Global IT Frame Contract, which, following T-Systems, was also successfully concluded with Hewlett Packard, brings equal benefits to IPS and its suppliers. First, it provides for standardized global management of contracts and services. This uniformity enables cost positions and catalogs of services to be readily compared. Second, it keeps cost flexibility transparent. Third, it allows both sides in a partnership to make real progress in their own integrative efforts and in meeting the needs of a globalized business climate. As Frederique Vermelin explains it: “As far as we’re concerned, the primary issues here are being able to deal successfully with the complexities of the global procurement market and, at the same time, keeping contracts as simple as possible. Maintaining an appropriate and efficient balance between these two demands will also be the central feature of future Global IT Frame Contracts.” Additional information: Frederique Vermelin, IPS/GE [email protected] Global Supplier 03|2006 Procurement Mercedes Car Group and Vans Strong Partnerships 19 The modular manufacturing of the smart fortwo at the Hambach plant still functions as a role model for successful cooperation with system suppliers. Strong Partnerships In the future, stable and strong cooperation with system suppliers will also remain one of the fundamental prerequisites for a successful purchasing strategy at Procurement Mercedes Car Group and Vans (PMC). New Developments in Cooperation with System Suppliers Since 2000 there has been increased focus, and not just at PMC, on the potentials available in system-development partnerships. This especially concerns involving system suppliers in bundling of competencies and possibly increasing their share of added-value and development work. Since then, in close cooperation with colleagues at the Chrysler Group, logistics chains have been optimized and inventory/balance-sheet accuracy considerably improved. “During these developments, which we went through as part of our cooperation with system suppliers, we were able to get some very good results in some cases. However, it also became evident that we were going to have to realign and redefine our requirements and expectations of our system suppliers,” explains Hans Storck, in charge of PMC/5. Requirements of System-Development Partnerships Now, six years later, as result of its own experiences and in working with colleagues at Chrysler, PMC is now much better off. Particular attention was paid to addressing deficits in competencies pertaining to vehicle integration as well as in achieving an optimum balance between the everincreasing complexities of product requirements and growing product responsibility. As a result, as Storck emphasizes, PMC’s expectations of its cooperation with system suppliers have changed accordingly: “We’re going to be conducting a more discriminating analysis of our supplier sets and be asking the following questions: Where are strong system-development partnerships important? How can we relieve our system suppliers of the burden of having too much responsibility for the product? And finally: Where exactly can DaimlerChrysler be more active and supportive through intensive supply base management?” In the future, in system partnerships it will thus be a matter of placing greater emphasis on making finer distinctions not only in applying knowledge but also in sharing the added value. The system suppliers of the future will need to provide a significant amount of added value that is not scattered over several independent business units within a larger corporate group. Instead, this added value will have to lie fully within the purview of the management of the actual contract partner. This means that system suppliers will have to be exceptionally qualified in order to take responsibility for optimizing the entire supply chain and ensuring reliable, punctual deliveries. In the future, DaimlerChrysler will no longer support nested supplier relationships with direct competitors of a given system supplier. Clear Premises, Strong Suppliers PMC sees competitive bidding with clearly laid out premises and conditions as essential to maintaining fair and stable supplier relationships: “In view of the variance and frequency of changes occurring during development, PMC will no longer have any “early” concept-phase bidding but only invitations to bid that are based on a complete, final set of specifications,” Storck states. In addition, in each case Production and Purchasing will check to see where a system development-partnership has fulfilled the standardization requirements that DaimlerChrysler sets for itself and its suppliers. This also applies to the Chassis purchasing area, which Storck is in charge of. This area has been strengthened by the global merging of all DaimlerChrysler’s purchasing activities for front-wheel drive vehicles: “It’s right here where we need strong global suppliers that can make attractive offers based on efficient location and supply management extending across many regions. That’s the only way that we’ll achieve the aim of having our system partnerships make a sustained contribution to the success of our products.” Your contact: Hans Jürgen Storck, PMC/5 [email protected] 20 Procurement Mercedes Car Group and Vans A Brilliant Outlook Thanks to the new technology parts coated with paint film can be delivered to automobile assembly plants and immediately installed. Extended Enterprise® Global Supplier 03|2006 Procurement Mercedes Car Group and Vans A Brilliant Outlook 21 A Brilliant Outlook Paint-film coating is advancing toward becoming a key technology for flexible modular vehicle construction. The success of this project is the result of intensive collaboration between DaimlerChrysler Research and Technology and experienced suppliers. A Successful Torture Test The first test of the new paint film technology went exceptionally well – even though DaimlerChrysler engineers subjected it to some of the most extreme conditions imaginable. In the South Africa they torture-tested a film-coated plastic roof element on a prototype of the Mercedes-Benz R-Class. Scorching heat (42°C) and air as dry as dust had no effect on the black-painted roof module: no waves, blisters or micro-cracks formed, nor did the paint bleach out, fade or dull. The developers at DaimlerChrysler were very pleased. An Innovative Manufacturing Process This first practical test run after numerous tests in the laboratory was a major step in the development of an innovative painting technology that is going to radically change the way paint is applied to body parts and add-on components. This innovation is called ‘paint-film technology,’ and the process used to apply it is known as ‘film coating.’ In contrast to conventional painting methods, in which body parts are first formed and then painted on the exterior, the process used in film coating basically runs in the reverse order. The first step is to create a thin external shell of paint film that has the same shape of the future component. This fragile paintfilm shell is then strengthened by applying the stabilizing component structure behind it. In a state-of-the art coating system, thermoplastic carrier film is first coated with the colored base paint and then with a clear coat. After a drying stage, the two coatings on the film are physically dry and ready for the next steps. However, even though they are dry to the touch at this point the coatings are still not chemically hardened. This is precisely caused because they are dry but not yet finally hardened that the flat, coated thermoplastic film can be easily suction-formed in a deepdrawing tool. After the deep-drawing is completed, the shaped thin-wall film is then hardened under ultraviolet light. Ecological and Economic Benefits The decisive advantage of film-coating lies in the separation of two process steps: the drying and the hardening. It saves an immense amount of time. Without any further processing, plastic parts coated with paint film can be delivered to automobile assembly plants and immediately installed. What’s more, in contrast to the usual liquid painting process, paint-film systems inherently do not produce overspray (excess paint that does not end up on the part during spraying). This means that paint resiStuttgart | Germany 48° N | 9° O dues and vapors that must either be recycled or disposed of in environmentally acceptable ways don’t even occur in the first place. In addition to these ecological benefits, paint-film technology brings economic ones as well. That’s because paint lines are among the most expensive systems in plants where cars and parts are made. In fact, the cost of painting a plastic part can come to 30–50 % of its overall cost. By coating these parts with paint film, these costs can be substantially reduced. Close Cooperation from Development to Production During the whole project not only was the cooperation strategy within DaimlerChrysler Research and Technology successfully implemented but experienced suppliers jumped on board right from the start. Dr. HansJoachim Ludwig, Vice President Engineering at Decoma Europe, emphasizes the many facets of this cooperation: “Working together with the paint manufacturer Wörwag, Decoma brought its knowledge and expertise in machine technology and in process and materials technology to bear in the project. New technologies, machine configurations and processes were developed within the process-and-production chain in order to meet the requirements specified for the quality and properties of the end product. This cooperation was shaped by a common goal, a mutual appreciation of the project and open communication.” The Future: Success in Series Production Nothing succeeds like success – so it’s reasonable to expect that this coating technology, first developed for roof modules, will soon be applied to other plastic add-on body parts. Willi Assmann, in charge of the Body section for the M-Class and R-Class at Passenger Car Development is convinced that “paint-film technology can become a key technology for future types of modular design.” Modular design is the wave of the future because it would allow economical and flexible production to become reality. At the same time, it would make paint-film technology available all over the world. For example, several system suppliers could operate centralized film-coating facilities and then deliver the finished modules directly to assembly lines at automakers for fast installation. This approach could then be taken a step further: Technical equipment such as antennas, sensors and electrical lines could be integrated right into the paint-film elements themselves. In addition to improving product quality, it would yield significant savings compared to traditional assembly processes. Additional information: “In the Beginning – Is the Paint” DaimlerChrysler High Tech Report 01|2005, Page 10 22 Procurement Mercedes Car Group and Vans Driving the Change Extended Enterprise® Global Driving the Change A culture of high performance and intensive feedback is an essential component of performancebased cooperation between DaimlerChrysler AG and its supply partners. At Procurement Mercedes Car Group and Vans (PMC), this kind of proactive culture is lived out every day. The Challenges of the Automotive Market The current situation in the automotive industry is characterized by a mature market, global overcapacities as well as a raw-materials market with price trends that are hard to predict. At DaimlerChrysler and its suppliers, these conditions require fundamental rethinking and focused responses in order for them to remain competitive in the future. For Frank W. Deiss, Vice President Procurement Mercedes Car Group and Vans (PMC), the most important thing is to “view major change as a major opportunity – and in doing so to make an essential and long-lasting contribution to the success of DaimlerChrysler and our supply partners.” Rethink and Respond At PMC the radical change taking place in the automotive industry is being used as a basis for turning cost planning into concrete action. “That’s so we know exactly where we stand at the component level compared to our competitors,” Deiss explains. “Based on these results, we can adapt our procurement activities as needed on the global market.” Deiss feels that it is critical to achieve optimum alignment of the four value drivers of quality, technology, cost and supply with respect to corporate and brand values. “To be competitive in all these aspects,” Deiss continues, “means that we have to expect our suppliers to commit themselves to these value drivers just as much as we do in setting our own internal standards.” Measure, Interpret, Implement What really counts is supplier performance in all value drivers. In determining this, the External Balanced Scorecard (EBSC) has become an increasingly important tool, one that allows a supplier’s performance to be measured and updated each and every day and rated objectively overall. As Deiss puts it: “The EBSC is an important component of our culture of high performance and intensive feedback. It’s an effective instrument for our staff and managers; above all, it shows our suppliers exactly where they stand and enables them to continuously identify potentials for improvement and then take the measures necessary to make those changes.” Global Supplier 03|2006 Procurement Mercedes Car Group and Vans Driving the Change 23 TOP PERFORMANCE SET MOVING SUPPLIER SET POTENTIAL SUPPLIER SET WORLD WIDE EXISTING SUPPLIERS Alignment of strategic supplier sets at PMC as well as the current and potential suppliers within the global context. Intensive Contact with Suppliers Frank W. Deiss considers another important piece in the mosaic of a wellapplied culture of high performance and intensive feedback to be the on-site visits made by PMC managers as part of the CORE waves. In fact, only recently Deiss visited suppliers such as Harman Becker and Rehau. “Having direct contact with these companies, which have shown aboveaverage and very successful dedication during CORE waves, is just as important to me as the exchange occurring in the technical workshops now being started in connection with the CORE program,” Deiss states. “In these workshops we make it clear that in our view optimizing costs and optimizing quality is not a contradiction but will have to be a supplier core competency of the future. It’s precisely here that we expect our suppliers to be even more proactive in contributing their ideas in both the technical and business areas.” Furthermore, it is also a matter of not only motivating suppliers to take concrete steps but also raising their awareness that the key to mutual success can only lie in proactive and intensive cooperation. Raising Awareness Internally, too, DaimlerChrysler has been doing a lot of rethinking, especially about how its business units can reduce the amount of variants, increase vehicle harmonization through shared-parts and apply a modular strategy. Deiss also mentions current considerations in conjunction with future supplier sets. These call for the strategic supplier sets at PMC as well as the current and potential suppliers to be analyzed in detail within a global market context. “All in all, in our analyses of the technical and business considerations, we’ve been able to come up with some very helpful results,” Deiss reports, adding that “we’ll certainly be continuing these kinds of activities even after CORE is finished. One thing is clear: The awareness that we want to create at suppliers is one that both sides of our performance-based cooperation will have to continuously re-examine and implement.” 24 Procurement and Supply Chrysler Group Opening the Door in North East Asia Extended Enterprise® Opening the Door in North East Asia Chrysler Group minivans launched in Taiwan and China are based on the current Chrysler/Dodge minivan body style, which was first introduced in the U.S. in 2001. The vehicles will be locally produced outside Taipei (Taiwan), and Fuzhou (China) through the 2013 model year. Global Supplier 03|2006 Procurement and Supply Chrysler Group Opening the Door in North East Asia 25 Representatives of Chrysler Group and CMC Yulong Group ... ... celebrate the first locally assembled Chrysler Town & Country. A New Product Offensive “Chrysler vehicles are known around the world for their combination of eye-catching design and outstanding value,” said Thomas LaSorda, President and CEO of the Chrysler Group. “From fashion to architecture to cars, take a look at urban China today and it’s obvious that successfully combining bold design and superior value is a winning formula. Following the success we’ve had growing our business in the hyper-competitive North American and European markets, Chrysler is embarking on a new product offensive for North East Asia, led by our new flagship, the Chrysler 300C, along with the world’s most popular minivan, and, of course, the venerable Jeep®.” “Thanks to the hard work of the men and women of CMC and the Chrysler Group to help prepare this launch, the Chrysler Town & Country produced here meets our high worldwide standard and is ready for our customers in Taiwan,” said LaSorda. “With the roll-off of the first customer-ready vehicle, CMC joins the family of Chrysler minivan production facilities in the U.S., Canada and Austria. I‘ve been in hundreds of plants, and helped launch dozens of vehicles, and I can tell you that this is a world-class operation, and we are proud of our ongoing partnership with CMC.” The locally assembled Chrysler Town & Country was specifically adapted by CMC to meet the needs of Taiwanese customers, including detailed touches on the exterior which better cater for Taiwan customers’ preference, and adjustments to provide safety and comfort on the driving environment of Taiwan. A Growing Market “Without a doubt, the automotive industry’s greatest potential for growth in the next ten years is in North East Asia,” said Dr. Rüdiger Grube, Member of the Board of DaimlerChrysler AG, responsible for Corporate Development and China Operations. DaimlerChrysler intends to be there with a major presence. The Chrysler Group’s plan to add Chrysler minivan and Chrysler 300C production to the region further complements DaimlerChrysler’s overall strategy to expand production and sales of passenger cars, commercial vehicles as well as vehicle financing. Last September, LaSorda reviewed previously announced plans to license minivan production with China Motor Corporation (CMC), and create a joint venture between DaimlerChrysler Taiwan and CMC to manage sales and distribution of Chrysler Group vehicles, both for the local market. Another Milestone “Today is another milestone for DaimlerChrysler in North East Asia, and we believe there are tremendous opportunities to continue to grow the business of all our vehicle brands here,” said Dr. Till Becker, Chairman and CEO of DaimlerChrysler North East Asia. “Licensed manufacturing is a very efficient way to bring vehicles to the market quickly. Working together, we were able to combine the best attributes of a world class minivan with features tailor-made for the Taiwanese market. We appreciate the partnership and support of CMC for this and other projects.” Celebrating a Successful Launch One year after announcing that the Chrysler Group would license China Motor Corp. (CMC) to produce the Chrysler Town & Country, the first customer-ready vehicle rolled off the production line at CMC’s Yangmei facility in Spring 2006. Thomas LaSorda, Chrysler Group President and CEO, made his second trip to Taiwan in eight months to review the Chrysler Town & Country production launch and celebrate the first customer-ready vehicle. Yangmei | Taiwan Your contact: Michael Boar, China Program Manager Phone +1 248 576-9440 Auburn Hills | USA Fuzhou | China 26 Procurement Truck Group and Buses Performance Based Supplier Support Extended Enterprise® Team members from Supplier Management (WG/LSL-G) examine a part produced by Fonderie Lorraine. Performance Based Supplier Support Working with an in-house team at Fonderie Lorraine, personnel from Procurement Truck Group and Buses/Supplier Evaluation and Development, from Supplier Management and Materials and Process Technology at the Rastatt/Gaggenau plant recently concluded a successful “quality offensive”. The Initial Situation at Fonderie Lorraine At its location in Grosbliederstroff (France) Fonderie Lorraine, a subsidiary of HONSEL GMBH & CO. KG, produces assembly-ready diecast aluminum transmission housings. Due to some changes in model series and newproduct launches, this production supplier to DaimlerChrysler was faced with some major challenges in quality and delivery performance. Project Team Provides Supplier Support “In our regular visits to Fonderie Lorraine we first conducted a systematic on-site analysis of comebacks/complaints and production processes in order to come up with appropriate measures to be implemented in the course of our supplier support activities,” explains Martin Frank at Procurement Truck Group and Buses/Supplier Evaluation and Development (PTG/MD). Analyzing the root causes of the problems and determining the steps required to remedy them were done in close cooperation with the interdisciplinary team from DaimlerChrysler and a project team at Fonderie Lorraine. The goal of the effort was to improve quality and delivery performance within the process chain. Once the project planning was completed, internal and external analyses were then conducted at the supplier. Following this, the measures intended to improve performance were implemented and supported. Specifically, this means that testing procedures were optimized, employees received further qualification training and customer contact was improved by adding a resident engineer. The measures taken were continuously implemented by a CIP team at the supplier and jointly verified by them and DaimlerChrysler. Germany Proficient Analysis and Input “In implementing the measures for improvement we had very willing and open cooperation starting at the management level on down,” emphasizes Martina Sturm, Supplier Management (WG/LSL-G). “Thanks to the comprehensive methodology of our supplier support services, we were able to actively support this supplier with respect to delivery quality, technology, costs and supply logistics.” Because of this, within one year the delivery quality at Fonderie Lorraine improved considerably, and since October 2005 the PPM values for delivered parts have been at a consistently low level. Both the project managers at DaimlerChrysler and their counterparts at Fonderie Lorraine are very pleased that these improvements are having long-term effects and have led to improved customer satisfaction. In fact, in a recent issue of its company newsletter, HONSEL praised the success of this effort: “Special thanks go out from Fonderie Lorraine to the team at DaimlerChrysler. It was only due to this exceptional joint effort with its proficient analysis and input and a concerted effort by all concerned that it was possible to achieve such success.” And Stefan ten Hoevel, head of Procurement Truck Group and Buses/Supplier Evaluation and Development (PTG/MD), adds that “this example of exceptional cooperation between the supplier, the plant and Supplier Development well demonstrates that the vision of a performance-based partnership can truly become reality.” Your contacts: Martin Frank, PTG/MD [email protected] Martina Sturm, WG/LSL-G [email protected] France TOKYO STUTTGART AUBURN HILLS Performance at its best. All over the world. At any time. Performance at its best. That’s what our customers expect from us and that’s what we from Global Procurement & Supply expect from our suppliers. With a consistent orientation on our four value drivers: quality, technology, cost and supply we are committed to excellence. We build our working relations on strong partnerships with top-performing suppliers. All of our purchasing activities are based on commitment, integrity and close communication as the foundation for a transparent and global performance based cooperation. Extended Enterprise®– the core philosophy and foundation for our unique supplier relationship model – is an important part of our overall Global Procurement & Supply strategy. www.daimlerchrysler.com PORTLAND BEIJING Published by DaimlerChrysler AG Responsible for content DaimlerChrysler AG Claudia Dautermann, GOP Communications HPC Z302, 70546 Stuttgart Phone +49 711 17-77517, Fax +49 711 17-93852 [email protected] USA DaimlerChrysler Corporation Andrew Ogawa, GOP Communications CIMS 484-06-15, Auburn Hills MI USA, 48326-2527 Phone +1 248 576-3735, Fax +1 248 576-2193 [email protected] Your contacts around the world South Africa DaimlerChrysler South Africa (Pty) Ltd. Anna Ahlschlager PO Box 671, East London 5201, South Africa Phone +27 43 706-2484, Fax +27 43 706-2611 [email protected] Brazil DaimlerChrysler do Brasil Ltda. Magdalena Thaler Cuevas Av. Alfred Jurzykowski, 562, Cep. 09680-900 São Bernardo do Campo – SP Phone +55 11 4173-6294 Pool-ID interacaopremio@wk-amerika2 Global Supplier Magazine is published quarterly in German and English. You can subscribe to it through the DaimlerChrysler Supplier Portal: http://daimlerchrysler.covisint.com Editor Ralf Christofori (aexea) Tina Lösch (DaimlerChrysler) Editorial office aexea – Integrierte Kommunikation Büchsenstraße 25, 70174 Stuttgart Phone +49 711 870 354 90, Fax +49 711 870 354 91 [email protected] Editorial staff Thomas Bürsner, Michaela Eberle, Andrea Geyer, Alexander Horn, Simone Kloppenburg, Anke Kricks, Ulrich Kugler, Sabine Mielenz, Branka Podgorelec, Julie Rogier, Silke Rommel, Monica Schmickler, Joachim Setzer, Frank Suszynski Design Ingo Ditges, yama inc. – Büro für Gestaltung Alexanderstraße 164b, 70180 Stuttgart Lithography media office gmbh Heubergstraße 21, 70806 Kornwestheim Printing Reichert GmbH, Druck + Kommunikation Rechbergstraße 10, 70806 Kornwestheim © 2006 DaimlerChrysler. No parts of this publication may be reproduced without prior written permission from the publisher. Photography: DaimlerChrysler MediaServices, DaimlerChrysler, Gaukler Studios, Kohlbecker / Friedrich Busam