Supplier Day 2011 – Quality ExpectationsRandy KeoughQuality Manager, Newaygo Division; Magna Mirrors NA

Ed EnnsDirector of Supplier Quality & Development, Magna International

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Agenda

• Current State of Quality Performance• Systemic Concerns• Migration to Magna Supplier Manual• Supplier Performance Rating System Overview

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Current State of Quality Performance

• What is important to the OEM’s and how are we doing?

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Current State of Quality Performance

• Customer focus– Incidents and PPM reduction, launch performance

• 2010 vs 2011 Magna Mirrors OEM Performance– Improving but much more is needed to sustain our market

share

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Current State of Quality Performance

• Supplier Performance to Magna Mirrors Divisions

• Slight year-over-year improvement since 2009• Supplier PPM > 10x Magna Mirrors OEM PPM• Over 100 Incidents per month• Tremendous burden on our manufacturing divisions

933 Incidents

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Supplier Performance Rating System Overview

• How do you know if you are meeting expectations?

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Supplier Performance Rating System Overview

• SPRS – Quality, Delivery, Commercial & Service• Quality Criteria – PPM, DCAR, PPAP, QMS certification

– Actual PPM vs 10 PPM target– Actual PPM vs Stat code (commodity) average– DCAR – timeliness, pass-through to customer, repeats

• Web-based system – PPAP – rejected or limited

• New on-line distribution – Quality Management System certification

• TS16949/ISO9001 - MDSC upload by supplier• AIAG CQI-xx, Government Regulation certs (CCC, EEC, etc.)

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Current State of Quality Performance

• What are some common themes seen across the supply base?

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Systemic Concerns

• Root cause analysis and countermeasure development.– Systemic & engineering analysis lacking, 3x5 why – Timing not met

• may vary by issue type or OEM – Breaking clean points

• Core quality tools are not understood and used – PFMEA not robust, missing detailed attention to significant

characteristics– Control plans missing the proper detail– PPAP requirements not understood

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Systemic Concerns

• Missing annual validation of product and process– Get joint agreement with your MM QE during APQP– Activity and cost is the supplier’s responsibility.– Annual validation is a requirement for service also at some

OEMs – Chrysler, Ford, BMW

• Product and process verification methods are not robust– Testing does not flush out real world issues

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Systemic Concerns

• Gauges & Calibration– Measurement and inspection processes not reviewed for

impact to data ( measurement uncertainty )

– Calibration sources not approved or capable

– Management review of calibration reports• Missing or incomplete - out of tolerance conditions not

addressed.

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Magna Supplier Manual

• Where can you find the Magna Mirror requirements?

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Migration to Magna Supplier Manual

• Magna Mirrors Supplier Quality Requirements– Current Condition

• Magna Mirrors SQR Manual & Addendums• Location: https://dsc.magnadon.com

– New Condition January 1, 2012• Magna NA Supplier Requirements Manual• Magna Mirrors Addendum – Magna Mirrors clarification to the

Magna requirements• Location: Magna International Website (Supplier Resources

page) http://www.magna.com/magna/en/about/suppliers/na/default.aspx

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Migration to Magna Supplier Manual

• Magna NA Supplier Quality Requirements– No fundamental changes from the MM SQR– Standardizes requirements across Magna N.A.

• Introduction – general expectations regarding Magna/Supplier relationship, changes and social responsibility

• Basic requirements – qualification, Quality Systems, assessments

• Product/Process Development – APQP• Serial Production – process control, nonconforming material,

engineering changes, warranty• Materials and Logistics – packaging, labeling, lot control,

planning and forecasting, transportation, MMOG• Supplier Performance – reporting and continuous improvement