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Participant Guide A Case for Change

Corporate Quality
Development Center

A Case for Change


Participant Guide

Revision 2006-01
©2001, 2006 Ford Motor Company
Participant Guide A Case for Change

The subject matter contained herein is covered by a copyright owned by:


FORD MOTOR COMPANY
CORPORATE QUALITY DEVELOPMENT CENTER
DEARBORN, MI

© 2001, 2006 Ford Motor Company

This document contains information that may be proprietary.


The contents of this document may not be duplicated by any means
without the prior written permission of Ford Motor Company.

Revision 2006-01
©2001, 2006 Ford Motor Company
Participant Guide A Case for Change

Corporate Quality Development Center

A Case For Change

©2001,2006 Ford Motor Company

Why are we here?

•STA Engineers are one of the key direct links between Ford and our suppliers.

•We have suppliers and STA Engineers all over the world.

•To be most effective, we must have common methods, policies and procedures worldwide.
•Treat each and every supplier in the same equitable manner.
•Hold each and every supplier to the same high quality standard.

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Participant Guide A Case for Change

Introduction
What Is Quality?

R e c o r d y o u r d e fin itio n o f q u a lit y o n th e lin e s b e lo w .

Quality Brainstorming
Record additional thoughts about the nature of quality in the space provided below:

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Participant Guide A Case for Change

A Case for Change

Why CQDC?

As STA Engineers, we need a global


standard skill set to be effective.

CQDC is a rigorous, technically focused,


global curriculum that provides the tools
needed to successfully improve our
supplier quality, which will help improve our
customer satisfaction.

©2001,2006 Ford Motor Company

Topics Introduced in this lesson:

• Changing Expectations
• Relationships
• Teamwork
• The Ford System
• Action Plan

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Participant Guide A Case for Change

A Case for Change

Objectives
– Explain vividly the customer satisfaction and quality crisis
facing Ford Motor Company

– Explain the expectations of STA in addressing this crisis

– Describe the working relationship necessary within


Purchasing and Ford to meet Purchasing objectives

– Describe the Supplier relationship values and rules of


conduct

©2001,2006 Ford Motor Company

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Participant Guide A Case for Change

A Case for Change

Supplier Relationship Values

• Act like a partner to be a partner


• Trust and be trustworthy
• Communicate with consistency
• Be fact based
• Think value, not just price

Become the Original Equipment Manufacturer (OEM) of choice!

©2001,2006 Ford Motor Company

The Ford Supplier Relationship values listed above are key to developing
and maintaining strong working relationships with our suppliers. We need to
become the “customer of choice” for our suppliers.

In order to “live” these values, it may be necessary to change old attitudes


and behaviors. The best way to do this is to become the example – model
these behaviors, and lead by example.

Lasting change does not happen overnight – it requires time, effort, great
communication and a willingness to change.

Ways to exemplify these values:


• Be a champion for customer satisfaction.
• Be assertive but fair.
• Make decisions based on data.
• Get it right the first time.

We need to be the OEM of choice – it’s the right thing to do, and it will help
us procure the best innovations, resources, technology, and people for Ford
Motor Company.

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Participant Guide A Case for Change

A Case for Change

Who do we interact with?

• Suppliers
• Purchasing
• Manufacturing
• Engineering

©2001,2006 Ford Motor Company

To be effective, we need to have strong positive working relationships with


many different groups – primarily, suppliers, purchasing, manufacturing, and
engineering. We all have a shared responsibility for the ultimate quality of
our products.

The next few slides spell out the roles of each of these groups.

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Participant Guide A Case for Change

A Case for Change

Purchasing Responsibilities

• Identify suppliers who deliver the required product development capability

• Ensure technical resources are available to close deficiency gaps

• Verify supplier quality capabilities and utilize a metrics-driven assessment

• Facilitating a cross-functional sourcing consensus

• Issue target agreements

• Develop forward-model-sourcing strategies

• Ensure supplier responsiveness

• Drive adherence to the Purchasing Supplier Relationship Values

• Involve STA early in the sourcing process

©2001,2006 Ford Motor Company

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Participant Guide A Case for Change

A Case for Change

Supplier Responsibilities
• Deliver the right product, at the right time, in the right quantity

• Meet the technical, financial, and process capability objectives

• Staff the program with sufficient resources

• Complete product assurance and timing plans

• Challenge seemingly redundant Ford requirements

©2001,2006 Ford Motor Company

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Participant Guide A Case for Change

A Case for Change

Engineering Responsibilities
• Provide customer requirements, program scope, and quality and
reliability objectives

• Provide clarification on proposed direction

• Establish a product assurance management process

• Monitor and manage supplier execution

• Participate actively in supplier technical and process capability reviews

• Lead regular and periodic risk assessments

• Lead problem resolution and continuous improvement efforts

©2001,2006 Ford Motor Company

When providing clarification on proposed direction, Engineering should


include:
• Trade-off decisions
• Quality objectives
• Expected deliverables
• Design standards
• Design FMEA
• PPAP and PSW requirements
• System interface requirements

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Participant Guide A Case for Change

A Case for Change

Manufacturing Responsibilities
• Participate in sourcing decisions, based on quality history and total cost

• Provide shipping requirements, shipment windows, and packaging


requirements

• Monitor supplier quality deficiencies and communicate them to the suppliers


and STA/Purchasing

• Maintain historical data on supplier’s quality and shipping performance

• Participate in quality reviews at the supplier sites

• Conduct quality reviews of selected suppliers at Ford Manufacturing Plants

• Provide technical/manufacturing knowledge and assistance to suppliers that


have major quality/productivity issues

©2001,2006 Ford Motor Company

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Participant Guide A Case for Change

A Case for Change

STA Engineer and Purchasing Shared Responsibilities

• Achieve common understanding of supply base

• Recognize areas of concern

• Understand which suppliers are doing it right

• Work together to source new business

• Deal with ongoing performance issues

©2001,2006 Ford Motor Company

From time to time, conflicting objectives may arise with the STA Engineer’s focus on quality and
Purchasing’s focus on cost. This does not mean that Purchasing is not concerned about quality. Both
parties must commit to finding the optimal cost-quality solution.

We both need to understand which suppliers perform well regarding speed, cost, quality, etc. We must
maintain an equally collaborative relationship to be effective.

The joint responsibilities of the STA Engineers and Purchasing include:

•Work together to source new business, which includes discussing the following questions:
•What programs are going to be sourced?
•Who are the candidates?
•Who is capable of doing what is required from a manufacturing perspective?
•Work together to deal with ongoing supplier performance issues, including identifying and agreeing upon a
strategy to address problems and protect Ford Motor Company’s interests

Tips for Maintaining a Good STA Engineer/Purchasing Working Relationship


•Maintain open communication and ongoing dialog - this means keeping each other in the loop on a regular
basis
•Visit supplier plants together from time to time - this helps both parties remain informed
•Complete a trip report to update Purchasing and other STA Engineers about events and occurrences during
site visits
•Maintain one point of contact — to protect the supplier from having too many contacts

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Participant Guide A Case for Change

A Case for Change

Resources

Global Purchasing homepage


http://my.purchasing.ford.com/

STA homepage
http://www.purchasing.ford.com/prch_quality_hp/

©2001,2006 Ford Motor Company

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©2001, 2006 Ford Motor Company
Introduction
Welcome to Communication Skills, part of the Corporate Quality Development Center
(CQDC) curriculum. This course will teach communication, meeting, and facilitation skills.

How This Course Relates to Other Courses


This course is taught in relationship with the other curriculum courses.

Regionally speaking
As Ford Motor Company has expanded globally we need to understand the importance of
regional and cultural differences in the workplace. Please keep in mind that the CQDC
courses were originally written, and are based primarily from a North American’s
perspective. The intent of CQDC is to educate and communicate Ford’s standard policies
and processes.
Here are some examples are of cultural difference:
•Acknowledging that some regions are individually based, or team based
•The tone, speed, or inflection in our voice levels need to be considered when
teaching these courses.
•Quick decisions and short-term thinking is not respected in some cultures

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©2006 Ford Motor Company 1
Communication Skills

This course focuses on


communication tools and
meeting facilitation skills for
Supplier Technical Assistance
(STA) Engineers.

Purpose
This course focuses on communication tools and meeting facilitation skills for Supplier
Technical Assistance (STA) engineers.

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©2006 Ford Motor Company 2
Communication Skills

To provide STA Engineers with communication and


meeting
Tools
Skills
Resources
To assist STA Engineers in being influential leaders that:
Drive decisions
Effectively report out information
Ask appropriate questions of Suppliers
Lead to improved communication
Produce higher quality output

Goal
To provide STA Engineers with communication and meeting
•Tools
•Skills
•Resources
To assist STA Engineers in being influential leaders that:
•Drive decisions
•Effectively report out information
•Ask appropriate questions of Suppliers
•Lead to improved communication
•Produce higher quality output

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©2006 Ford Motor Company 3
Communication Skills

Upon completion of this course, participants


will be able to:
Define “Advocate for Quality”
Distinguish the difference between
assertive and aggressive behavior
Demonstrate assertive behavior
Ask probing, strategic questions
Plan and facilitate meetings

Objectives
Upon completion of this course, participants will be able to:
•Define “Advocate for Quality”
•Distinguish the difference between the four behavior styles
•Demonstrate assertive behavior.
•Ask probing, strategic questions
•Plan and facilitate meetings

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Communication Skills

! !" ! #
An Advocate for Quality:
• Employs quality tools to make fact-based decisions to support the
quality objectives of our customers
• Acts as the voice of reason
• Champions the right choices to improve the quality of parts and
the speed at which they are manufactured and shipped to the
plants
• Fosters an environment of continuous improvement that results in
robust processes and procedures that will meet or exceed the
expectations of our customers
• Champions the development of measures to track the
organizational benefits of process improvements
• Supports efforts to optimize total costs

Communication Skills
What Is an “Advocate for Quality?”
An advocate for quality:
•Employs quality tools to make fact-based decisions to support the quality objectives
of our customers
•Acts as the voice of reason
•Champions the right choices to improve the quality of parts and the speed at which
they are manufactured and shipped to the plants
•Fosters an environment of continuous improvement that results in robust processes
and procedures that will meet or exceed the expectations of our customers
•Champions the development of measures to track the organizational benefits of
process improvements
•Supports efforts to optimize total costs
What Is the Formula for Successful Change?
SC = f(L,V,N,M1,M2,R,C)
(Leader, Vision, Clear Need, Measure, Means, Resources, Communications)

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Communication Skills

$ %

Aggressive
Covert aggressive
Non-assertive
Assertive

Four Communication Behavior Styles


We use four different communication behaviors styles in our daily communication. All of
these behaviors are learned. No one is born with a particular communication behavior. The
four behaviors are:
• Aggressive
• Non-assertive
• Covert aggressive
• Assertive

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Communication Skills

!
$ %
Aggressive
Actively and directly standing up for the rights of self, while ignoring the
rights of others. Aggressive communication behavior is HOSTILE.

Covert Aggressive
Indirectly standing up for the rights of self, while ignoring the rights of
others. Covert aggressive communication behavior is MANIPULATIVE.

Non-Assertive
Denying the rights of self to respect the rights of others. Non-assertive communication
behavior is WEAK.

Assertive
Actively and directly standing up for the rights of self, while respecting the rights of others.
Assertive communication behavior is STRONG.

How do we manifest these communication behavior styles? What do we say?


What do we do?

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©2006 Ford Motor Company 7
Communication Skills

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VERBAL NON VERBAL APPROACH
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©2006 Ford Motor Company 8
Communication Skills

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Direct
Persuade
Bridge
Avoid

Summary of Communication Behavior Styles


Styles within Assertive Behavior
Direct — Have right to ask directly (i.e., when there is a fly in your soup, you have the right
to ask for more soup).
Persuade — List reasons that prove your assertion (business case, i.e. “you should be able
to do this because of a, b, c, etc.”).
Bridge — Pulling together. Use when you do not have authority or when buy-in is
important. Help to discover by asking questions.
Avoid — When emotions are too intense, leave the situation and come back when calmer.

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Communication Skills

" '

Paraphrasing
Asking strategic open questions
Reflecting feelings
Using “I” statements

Assertive Communication Tools


Communication tools that can assist an STA Engineer in effective problem solving:
• Paraphrasing
• Asking strategic open questions
• Reflecting feelings
• Using “I” statements

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Communication Skills

% ( !

Paraphrasing is a brief restating of the


information given in the listener's own
words. It is a statement of facts,
information, or ideas. It should not
include opinions or judgments about
what is being said.

Assertive Communication Tools, continued


Paraphrasing
Paraphrasing is a brief restating of the information given in the listener’s own words. It is a
statement of facts, information, or ideas. Paraphrasing should not include opinions or
judgments about what the person said.

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Communication Skills

% ($ !

Paraphrasing accomplishes the following:


Assures the speaker that you are listening and trying to
understand
Ensures that your interpretation of the message is correct
Encourages the speaker to continue
Verifies understanding
Demonstrates listening
Acknowledges speaker
Reinforces speaker's point
Provides processing time for listener
Helps the speaker be clear and focused

Benefits of Paraphrasing
Paraphrasing accomplishes the following things:
•Ensures that your interpretation of the message is correct
•Encourages the speaker to continue
•Verifies understanding
•Demonstrates listening
•Acknowledges speaker
•Reinforces speaker’s point
•Provides processing time for listener
•Helps the speaker be clear and focused
Examples of Paraphrasing
“So you’re saying we shouldn’t be concerned about the process.”
“As I understand it, you want us to verify the results before acting.”
“Let’s see if I have this right. You want us to...”
“Sounds like you’re saying that you are ready to change the...”

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Communication Skills

' !#
• Closed — Begins with such words as “Do,”
“Did,” “Can,” “Will”, and “Is,” which result in
“yes” or “no” answers. While they have their
place in our communications, they do not open
up the other person’s thinking.
• Serial — Two or more questions in a row can
cause the receiver to become confused and/or
fail to answer every question.
• Defensive — Begins with “Why” and results in
receiver feeling attacked and becoming
defensive.

Assertive Communication Tools, continued


Ineffective Questions — Use with Caution
Closed — Begins with such words as “Do,” “Did,” “Can,” “Will,” and “Is.” Closed
questions can yield “yes” or “no” answers. While they have their place in our
communications, they do not open up or focus the other person’s thinking.
Serial — Two or more questions in a row. Serial questions can cause the receiver to become
confused and/or fail to answer every question.
Defensive — Begins with “Why.” Defensive questions result in the receiver feeling
attacked and becoming defensive.

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Communication Skills

( #

Open questions provide the opportunity


to gain more information. Open questions
cannot be answered with a “yes” or “no.”
They do not limit the speaker in choosing
what information with which to respond.
Open questions typically begin with
“What” or “How.”

Strategic Open Questions


Strategic open questions are well thought and well designed, thus “opening up” the
opportunity to gain more information. Strategic open questions cannot be answered with a
“yes” or “no.” They cause the other person to focus on the question, think before
responding, and take responsibility for problem solving. Open questions typically begin
with “What” or “How.”

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Communication Skills

$ ! ! (
#
• Keeps the focus on the speaker
• Helps expand or develop ideas
• ! % !
• Demonstrates listener interest
• Shows respect for speaker’s ideas
• ) *
• Helps listener avoid advising

Benefits of Asking Open Questions


•Keeps the focus on the speaker
•Helps expand or develop ideas
•Opens up further information
•Demonstrates listener interest
•Shows respect for speaker’s ideas
•Helps speaker solve own problems
•Helps listener avoid advising

Examples of Open Questions


“How do you plan to reduce the cost?”
“What approaches have you tried to improve quality?”
“What prevented you from getting the 8D done in time?”
TIP: Try to find a balance in asking both fact-finding and feeling-finding questions.

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Communication Skills

! (
#
• “What do you think?”
• “How would you like to handle it?”
• “What approaches have you
tried?”
• “How do you feel about that?”

Strategic Open Questions


Exercise 1
In groups, change the following sentences into strategic open questions.
Questions
“Why didn’t you turn in the 8-D on time?”
“Do you think this method will work?”
“Why can’t you meet this quality standard?”
“Why didn’t you call me?”

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Communication Skills

+ ! ( (

Reflecting feeling is recognizing the


emotion expressed by the speaker and
putting it into words. It acknowledges the
speaker's message. Reflecting feeling
requires the listener to identify the
speaker's emotion, and to respond to the
speaker by naming the feeling heard.

Reflecting Feelings
Reflecting feeling is recognizing the emotion expressed by the speaker and putting it into
words. Reflecting Feelings acknowledge the speaker’s message. Reflecting feelings requires
the listener to identify the speaker’s emotion, and to respond to the speaker by naming the
feeling heard.
Benefits of Reflecting Feelings
Demonstrates listening
Verifies understanding
Acknowledges speaker
Shows empathy
Helps speaker vent
Defuses emotion
Facilitates problem solving
Examples of Reflecting Feelings
“You sound very concerned about not being able to meet the standard.”
“It is frustrating when deadlines need to change.”
“You must be very proud about achieving that Supplier Award.”

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Communication Skills

$ ! !+ ! ( (

• Demonstrates listening
• Verifies understanding
• Acknowledges speaker
• % * %
• )
• !
• Facilitates problem solving

Reflecting Feelings, continued


Exercise 2
Demonstrate skills in identifying Reflecting Feelings to achieve empathetic listening.
Process
Supplier starts a story with an opening statement that denotes a strong emotion. (Do not
name the feeling!) The STA Engineer responds to the Supplier by acknowledging the
feeling expressed. Supplier validates the accuracy of the feeling reflected. Repeat the
process.
Roles
Supplier: Start a story about an incident you feel strongly about. Some examples are about
an unrealistic deadline, a difficult requirement, an additional request, or a problem
completing a project.
STA Engineer: Respond to the Supplier by reflecting the feeling you sensed the Supplier
expressed. Do not ask about the information, just acknowledge the feeling and paraphrase
what the person said.
Observer: Keep time, allowing no more than one minute per example. Call “foul” if the
STA Engineer asks questions or makes comments about the information. “Applaud” if the
STA Engineer acknowledges the feeling and paraphrases.
Tip: Do not make the Supplier tell the whole story before you reflect the feeling you hear. If
you are wrong about the feeling expressed, try again.

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Communication Skills

, ( -./

This is an effective model for simple


assertions. The purpose is to provide
clear, direct, and straightforward
information to a person without
automatically antagonizing or alienating
that person. The model is designed to
stand up for personal rights without
infringing on another’s rights.

Using “I” Statements


This is an effective model for simple assertions. The purpose is to provide clear, direct, and
straightforward information to a person without automatically antagonizing or alienating
that person. The model is designed to stand up for personal rights without infringing on
another’s rights. It includes three essential ingredients:
1. Ownership of feeling or impact: “I feel__________________
2. Description of behavior or event: about/when _____________
3. Explanation of cause or reason: because ________________ .”

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Communication Skills

'% '% . ( !-./

Ownership of feeling or impact:


“I feel ________________________
Description of behavior or event:
about/when ___________________
Explanation of cause or reason:
because _____________________.”

Examples
“I get upset when you tell me one thing and do another because it causes me not to trust
your word.”

“I am happy to see you were able to meet the quality standard because it really helped Ford
Motor Company.”

“When deliveries are not made on time, I get really concerned because it throws off the
schedule and I start getting calls from the plant.”

“I feel proud about the work we did because we all pulled together to accomplish the
impossible.”

“When I’m interrupted while I’m talking, I get angry because I am unable to finish making
my point.”

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Communication Skills

, ( -./ '

"You" Statements "I" Statements


You make me angry. I’m angry about the deadline not being met.
You messed this up. I’m upset that the job wasn’t completed because we
spent a lot of time going over this.
You are always late turning in these reports. I worry when the reports don’t come in on time because
we won’t meet our deadlines.

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Communication Skills

Establish what the meeting should


produce, and whether a meeting is
even necessary to produce the
needed results.

Meeting Skills
Facilitating Meetings
Determining the Desired Outcome
Get clarity on the purpose of the meeting and establish what results the
meeting should produce.

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Communication Skills

0
After determining the purpose, decide on the following:
• Where will the meeting take place?
• When will the meeting take place?
• How long will the meeting last?
• What equipment is needed?
• Who will be invited?
• Who will facilitate?
• Who else needs to speak or give a presentation?

Plan Early
After determining the purpose, decide on the following:
Where will the meeting take place?
When will the meeting take place?
How long will the meeting last?
What equipment is needed?
Who will be invited?
Who will facilitate?
Who else needs to speak or give a presentation?

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Communication Skills

( "(

An agenda outlines the meeting


and helps keep it on track.

Facilitating Meetings

Creating an Agenda
An agenda outlines the meeting and helps keep it on track.
Agenda Do’s and Don’ts:
Do keep the agenda flexible to allow for thorough discussion.
Do make the agenda as specific as possible.
Do keep the meeting to one hour if possible.
Distribute agenda at least 24 hours before the meeting, but no longer then a week in
advance.
Put the agenda on a flip chart so all attendees can view it.
Do not try to do too much in one meeting.
Do provide for breaks.

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Communication Skills

0 % ( +

• Discussions at a meeting can fall apart


and become unproductive. Some ground
rules should be established at meetings
to ensure that they run smoothly.
• Ideally, the members of a group can
establish their own ground rules. This
helps achieve buy-in from all participants.

Creating Ground Rules


Discussions at a meeting can fall apart and become unproductive. Some ground rules should
be established to ensure meetings run smoothly.
Ideally, the members of a group can establish their own ground rules. This helps achieve
buy-in from all participants.

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Communication Skills

01 ! +

Accept all responses.


Do not evaluate others’ comments.
Assure people they can stay silent if
they don’t have a contribution right
away.
Do not interrupt.
Stay focused on the issue, not the
person.

Ground Rules for Effective Discussions


A committed STA Engineer that wants to be an effective facilitator of a
problem-solving meeting will:
Accept all responses.
• Avoid excluding or isolating anyone.
• Capture each person’s ideas on a flip chart
• Post unrelated or tangential ideas on separate flip chart
(parking lot).
Do not evaluate others’ comments.
• Avoid saying “That’s a great idea”! or “That won’t work!”
because it can stifle creativity.
• Use a simple “thank you.”
Assure people that they can stay silent if they do not have a contribution right away.
• Encourage without pushing anyone to speak.
Do not interrupt.
• Do not allow interruptions.
Stay focused on the issue, not the person.
• Avoid personal attacks if you or others disagree with the
speaker.
• Assure group members that disagreement is OK.

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Communication Skills

"

A simple action plan will help avoid


confusion after the meeting, and serve as a
reminder to those that have taken on tasks.
An action plan should include:
• Who
• Does what
• By when

Create an Action Plan


A simple action plan will help avoid confusion after the meeting, and serve as a reminder to those that have
taken on tasks.
An action plan should include:
•Who
•Does what
•By when
Do not assign action items to people who are not present. Assign someone at the meeting to contact that person
about carrying out the action.

ACTION PLAN

Task Person Assigned Completion Date

1.
_____________________________________________________________________________________
2.
_____________________________________________________________________________________
3.
_____________________________________________________________________________________
4.
_____________________________________________________________________________________

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Communication Skills

+ "
• The class will be divided into teams composed of five
members each.
• Each member will be assigned a role and given a
description to read.
• The STA Engineer in each team will function as
meeting facilitator.
• The goal of the role play is to use communication
tools and meeting skills to identify solutions.
• After teams have completed their meeting, the teams
will report their solutions and how they arrived at the
solutions.

Summary
Role Play — Meeting Scenario Practice
Activity Goal
To use the assertive communications style, assertive communication tools, and meeting
skills while facilitating a problem-solving meeting.

Instructions
The class will divide into teams composed of five members each.
Each member will be assigned a role and given a description to read. DO NOT SHARE
YOUR ROLE OR READ A ROLE OTHER THAN YOUR OWN.
The STA Engineer in each team will function as meeting facilitator.
The goal of the role play is to use assertive communication tools and behaviors while using
meeting skills to identify solutions.
After teams have completed their meeting, each team will report its solutions and how the
members arrived at these solutions.

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©2006 Ford Motor Company 28
Corporate Quality
Development Center

The STA Job


Participant Guide

Revision 2006-01
©2006 Ford Motor Company
The subject matter contained herein is covered by a copyright owned by:
FORD MOTOR COMPANY
CORPORATE QUALITY DEVELOPMENT CENTER
DEARBORN, MI
Copyright © 2001-2006 Ford Motor Company
This document contains information that may be proprietary. The contents of this
document may not be duplicated by any means without the written permission of
Ford Motor Company.
All rights reserved.

Revision 2006-01
©2006 Ford Motor Company
The STA Job

Course Goals

Course Purpose

Course Objectives

©2006 Ford Motor Company

Course Goals:
Enable STA Engineers to:
• Identify their roles and responsibilities.
• Be aware of the interrelationships within the STA organization and Ford Motor Company
as a whole.

Course Purpose:
• Introduce the specific roles and responsibilities of individual positions within STA.
• Provide context for the discussion of responsibilities addressed in each CQDC topic.
• Provide context for quality tools and processes.

Course Objectives:
• Describe the roles of each STA Engineer position.
• Explain the relationship between Site, Program, and Resident STA Engineers.
• Identify the responsibilities of the STA Engineer position.

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The STA Job

Flexibility
Due to the needs in each region, roles and responsibilities are addressed
differently. This module is a baseline for STA Engineers according to
details found on the STA Home page. It is understood that commodity,
geography, and other local needs may have an impact on this baseline.

• STA Program Engineers work with multiple supplier sites on specific


programs.

• STA Site Engineers work on multiple programs according to and in addition


to the sites they are responsible for managing Q1/MSA.

• STA Resident Engineers work with plants that have hundreds of external
suppliers from which they will work with specific focus suppliers. They work
with suppliers and Program STA on multiple programs as well as Site STA
on current product quality, cost, and delivery which include FA/SS, G8D,
warranty issues, cost reduction, functional trials, VQR/VRT, FCPA issues,
and many more.

• STA Process Specialists work with suppliers on multiple programs, multiple


sites, and multiple plants according to their area of expertise.

©2006 Ford Motor Company

The Role of the STA Engineer


There are many roles and responsibilities of the STA Engineer. The titles of specific positions are variations on
basic roles and responsibilities. It is important to be flexible and be able to work together. The objective of every
STA Engineer is to ensure good quality parts get into good cars that satisfy the customer.

Why Flexibility Is Necessary


The need for flexibility and cooperation between all STA Engineers is evident when the workload of each of the
specific positions is reviewed.

Due to the needs in each region, roles and responsibilities are addressed differently. This module is a baseline for
STA Engineers according to details found on the STA Home page. It is understood that commodity, geography, and
other local needs may have an impact on this baseline.

STA Program Engineers work with multiple supplier sites on specific programs.
STA Site Engineers work on multiple programs according to and in addition to the sites they are responsible for
managing Q1/MSA.
STA Resident Engineers work with plants that have hundreds of external suppliers from which they will work with
specific focus suppliers. They work with suppliers and Program STA on multiple programs as well as Site STA on
current product quality, cost, and delivery which include FA/SS, G8D, warranty issues, cost reduction, functional
trials, VQR/VRT, FCPA issues, and many more.
STA Process Specialists work with suppliers on multiple programs, multiple sites, and multiple plants according to
their area of expertise.
Consider this information as specific roles and responsibilities are discussed throughout this course and the rest of
the curriculum. Each STA Engineer has important roles and heavy workloads that will impact the distribution of
work at any one time.

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The STA Job

Resulting Needs
• Clear communication when driving task completion.

• Consistency in how the tasks are conducted and reviewed.

• Consistency in communication to the Supplier (one voice).

• Cooperation to ensure tasks are completed when needed.

• Respect for each other’s objectives, workload, skills, and abilities.

©2006 Ford Motor Company

Working Together

Each position within the STA organization shares many of the same tasks. The need to have the
tasks completed may be driven by the responsibilities of one position, while conducting the tasks may
be the responsibilities of another position. For example, the Program Engineer needs Task 1 to be
completed by March 1 to support a program launch. The Site Engineer is responsible for conducting
the task at the Supplier site. Due to the program being very close to launch, the Resident Engineer
may also be involved in reviewing the outcome of the task.

The Program Engineer is proactive supporting program needs, is timeline driven by the launch date
and milestones for the program and drives resolution of critical program issue. The Resident
Engineer is timeline driven supporting launch, proactive supporting Warranty Reduction and PVT,
and will drive critical/chronic plant issues to resolution. Site Engineers are proactive in Supplier
development, are timeline driven to support program needs, and drive the resolution of critical issues
at the Suppliers plant.

In short, tasks among the STA Engineers overlap. This results in the following needs:
Clear communication when driving task completion.
Consistency in how the tasks are conducted and reviewed.
Consistency in communication to the Supplier (one voice).
Cooperation to ensure the tasks are completed when needed.
Respect for each other’s objectives, workload, skills, and abilities.

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The STA Job

The Official STA R&R’s


STA Roles and responsibilities (R&R)

• Web site — http://www.purchasing.ford.com/prch_sta/R&Rs.htm

• Appendix A of this guide is an uncontrolled supplement to the web


site. The STA Home page must be used to confirm current state of
STA R&R’s.

©2006 Ford Motor Company

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The STA Job
Site STA Engineer
Segment I & II (North America)
Characteristics of the position

– Model suggests 2-5 total suppliers per STA due to the workload required.

– Experienced STA.

– CQDC Graduate.

– Manage the MSA’s and other Q1 and Program work for suppliers that have
been segmented as I or II.

– Supplement on Appendix A of your participant guide.

©2006 Ford Motor Company

The STA Site Engineer Segment I & II

The Segment I and II Site Engineer position has the following characteristics:

• Supports and assists a small number of sites.


• Provides in-depth assistance to improve the quality of the Supplier through the
segmentation model.
• Spends approximately 90% of his or her time at Supplier’s sites to assist them in
improving their processes.
• Becomes the primary contact for the Supplier within the STA community.

Descriptions of current roles and responsibilities are located on the Ford


intranet at http://www.purchasing.ford.com/prch_sta/R&Rs.htm.

Uncontrolled copies of the roles and responsibilities are located in Appendix A.

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Site STA Engineer The STA Job

Segment I & II R&R – 1


(North America)
– Deploy Q1 strategy by conducting on-site Manufacturing Site Assessments.

– Drive Supplier continuous improvement.

– Provide technical support to aid in improving quality systems and drive Supplier
concern resolution process.

– Review APQP, establish PPAP level, and disposition PPAP packages as required.

– Conduct launch readiness and Run-at-Rate reviews.

– Assist in facilitating warranty sharing Letters of Agreement (LOA).

©2006 Ford Motor Company

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Site STA Engineer The STA Job

Segment I & II R&R – 2 (North America)


– Support 6-Sigma initiatives as required.
– Support Lean and TCM initiatives.
– Drive “non-crisis” based communications between Suppliers and Ford production plants
(“non-crisis” is outside of Stop Ships, FSA, etc, which will involve multiple STA roles to
drive communication).
– Serve as single point of contact, accountable for site performance.
– Monitor SIM and ensure STA databases are updated with Supplier-related information.
– Approve PFMEAs and Control Plans for inverted delta parts (with product development).
– Support Purchasing with new Supplier sourcing.
– Review capability data and drive variability reduction.

©2006 Ford Motor Company

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The STA Job
STA Site Engineer
Segment III & IV (North America)
Characteristics of the position

– Model suggests 20 to 50 suppliers per STA.

– STA should have completed CQDC and have demonstrated basic STA skills.

– Suppliers are self sufficient and have a history of good quality on current
production, programs, etc.

– Accountable for all Q1/MSA work for the Segment III/IV suppliers.

– Program work with suppliers is accepted according to negotiation with the


Program STA.

– Supplemental reference Appendix A of the participants guide.

©2006 Ford Motor Company

The STA Site Engineer Segment III & IV

The Segment III and IV Site Engineer position has the following characteristics:

• Manages a larger number of sites.


• Drives resolution of critical issues.
• Monitors coordinates, and communicates with Suppliers.
• Travels as required.
• Becomes the primary contact for the Supplier within the STA community.

Descriptions of current roles and responsibilities are located on the Ford


intranet at http://www.purchasing.ford.com/prch_sta/R&Rs.htm.

Uncontrolled copies of the roles and responsibilities are located in Appendix A.

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STA Site Engineer The STA Job

Segment III & IV R&R – 1 (North America)


– Deploy Q1 strategy and drive continuous improvement actions through Supplier
business unit; conduct on-site assessments as necessary.

– Provide technical support to aid in improving quality systems and drive Supplier
concern resolution process.

– Review Supplier APQP status for High Impact Suppliers as directed.

– Establish Supplier PPAP level.

– Conduct Launch Readiness and Run-at-Rate reviews at High Impact Suppliers as


directed.

– Assist in facilitating warranty sharing Letters of Agreement (LOA).

– Support 6-Sigma initiatives as required.

©2006 Ford Motor Company

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STA Site Engineer The STA Job

Segment III & IV R&R – 2 (North America)


– Support Lean and TCM initiatives.

– Drive “noncrisis” based communications between Suppliers and Ford plants.

– Serve as single point of contact, accountable for site performance.

– Monitor SIM; ensure STA databases are updated with Supplier-related information.

– Approve PFMEAs and Control Plans for inverted delta parts.

– Disposition PPAP packages as directed.

– Support Purchasing with new Supplier sourcing.

– Review capability data and drive variability reduction.

©2006 Ford Motor Company

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The STA Job
STA Site/Commodity Engineer
(Europe)
Characteristics of the position

– Supports Sourcing for Quality


– Q1 Mfg Site Assessment and follow-up on Action plan
– Support Fix or Leave strategy
– Drive 8D Resolution with suppliers
– Support 6 Sigma, Lean activities
– Verify & Monitor QOS of suppliers, drive improvement
– Support Stop Ship and FSA resolution
– Manage Supplier QR disputes
– Support Warranty Reduction activities
– Co-lead Business Unit Reviews as requested
– Support Strategit Commodity Teams and Global Councils as requested
– Review and approve PPAP
– SIM Updates
– Manage multiple supplier sites/commodities

©2006 Ford Motor Company

The STA Site/ Commodity Engineer - Europe

• Supports Sourcing for Quality


• Q1 Mfg Site Assessment and follow-up on Action plan, Support Fix or Leave strategy
• Drive 8D Resolution with suppliers
• Support 6 Sigma, Lean activities
• Verify & Monitor QOS of suppliers, drive improvement
• Support Stop Ship and FSA resolution
• Manage Supplier QR disputes
• Support Warranty Reduction activities
• Co-lead Business Unit Reviews as requested
• Support Strategic Commodity Teams and Global Councils as requested
• Review and approve PPAP, SIM Updates
• Manage multiple supplier sites/commodities
Descriptions of current roles and responsibilities are located on the Ford
intranet at http://www.purchasing.ford.com/prch_sta/R&Rs.htm.
Uncontrolled copies of the roles and responsibilities are located in Appendix A.

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The STA Job
STA Program Engineer
Characteristics of the position
– Travel according to the program needs (most travel is by site STA)

– Assigned to specific programs.

– Report out to high level program management.

– Communication skills required.

– CQDC Graduate.

– Works with a High Impact supplier list unless a Supplier Base Launch Team
(SBLT) is in place.

– Appendix A of the participants guide

©2006 Ford Motor Company

The STA Program Engineer

The Program Engineer position has the following characteristics:

• Tasks are driven by program needs based on Ford Product Development System
milestones and program-specific build dates.
• Works closely with program team.
• Monitors, coordinates, and communicates with program team and Site Engineers.
• Travels to launch locations and Supplier sites only as needed.

Descriptions of current roles and responsibilities are located on the Ford


intranet at http://www.purchasing.ford.com/prch_sta/R&Rs.htm.

Uncontrolled copies of the roles and responsibilities are located in Appendix A.

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The STA Job

STA Program Engineer R&R – 1

– Support the program team in identifying High Impact Suppliers.

– Communicate program requirements between the appropriate Purchasing


Managers, Buyers, and Engineers.

– Communicate High Impact Supplier readiness at required program


milestones.

– Support program and launch team efforts, i.e., PST, PAT, and PMT
meetings.

– May support the PFMEA/Control Plan sign-off process for inverted delta
parts, Launch Readiness and Run-at-Rate reviews, and disposition of
PPAP packages for Segment III & IV High Impact Suppliers as directed.

©2006 Ford Motor Company

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The STA Job

STA Program Engineer R&R – 2


– Provide required on-site launch support; participate prototype builds and drive
resolution of Supplier quality issues.

– Review Segment III & IV High Impact APQP status as directed.

– Support the program with campaign prevention and driving best practices across
the supply base.

– Ensure STA databases are updated with program-related information.

– Assist in facilitating warranty sharing Letters of Agreement (LOA).

©2006 Ford Motor Company

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The STA Job
STA Resident Manager (North America)
Characteristics of the position
– Part of the Plant Vehicle Team.

– Indirect reporting to the PVT manager, direct reporting to the Resident


Supervisor.

– Works well in a Plant environment.

– Good communication skills.

– Experienced STA well rounded in all STA functions.

– Participates in Plant Management meetings.

– CQDC Graduate, Potential SME

– Uncontrolled reference, Appendix A

©2006 Ford Motor Company

STA Resident Manager (North American Plants only)

The characteristics of the Resident Manager position include:

• Located on-site at Ford Assembly Plant.


• Primarily concerned with addressing unresolved issues between manufacturing and Supplier
sites.
• Coordinates with Site Engineers to bring Suppliers and plant together to discuss issues.
• Supports assembly plant Program Vehicle Team (PVT) initiatives.
• Manage new model launches for programs that are of the size of S1-S2 and/or P1-P2.

Descriptions of current roles and responsibilities are located on the Ford


intranet at http://www.purchasing.ford.com/prch_sta/R&Rs.htm.

Uncontrolled copies of the roles and responsibilities are located in Appendix A.

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The STA Job

STA Resident Manager R&R – 1


(North America)

– Provide STA plant coverage for all launch programs from 1PP build through launch
(including added starter programs).

– Support launch reviews as required and provide interface with PVT/Plant.

– Assist Site Engineers as required in disposition of PPAP packages.

– Assist STA Site Engineers as required in completion of Supplier Run-at-Rate


reviews.

– Assist Site Engineers as needed in identification and resolution of chronic external


Supplier quality performance issues.

– Assist the plant incoming quality (IQ) department in selection of Supplier attendees
for the monthly IQ meetings.

©2006 Ford Motor Company

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The STA Job

STA Resident Manager R&R – 2


(North America)

– Assist Suppliers and plants in resolving Supplier challenges to QRs,


including PPM input.

– Communicate best practices and lessons learned across other associated


STA Programs.

– Work with PVT to functionally approve all resourced product.

– Support the PVT/Plant Variability Reduction Team (VRT) in analyzing


Supplier warranty and initiating corrective actions that reduce R/1000 and
CPU.

– Support PVT-led high-mileage reliability projects.

– Support plant-specific 6-Sigma projects when required.

©2006 Ford Motor Company

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The STA Job
STA Resident Engineer
Characteristics of the position
– Reports to the STA Resident Manager (North America).
– Reports to the Program Manager (Europe).
– Part of the Plant Vehicle Team.

– Indirect reporting to the PVT manager.

– Works well in a Plant environment.

– Good communication skills.

– CQDC Graduate.

– Participates in Plant Management meetings.

– Uncontrolled reference Appendix A

©2006 Ford Motor Company

STA Resident Engineer

The Resident Engineer supports the Resident Manager with the same characteristics, except that
the scope may be smaller (one line at the plant, rather than the whole assembly plant).

• Located on-site at Ford Assembly Plant.


• Primarily concerned with addressing unresolved issues between manufacturing and Supplier
sites.
• Coordinates with Site Engineers to bring Suppliers and plant together to discuss issues.
• Supports assembly plant Program Vehicle Team (PVT) initiatives.
• Manage new model launches.

Descriptions of current roles and responsibilities are located on the Ford


intranet at http://www.purchasing.ford.com/prch_sta/R&Rs.htm.

Uncontrolled copies of the roles and responsibilities are located in Appendix A.

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The STA Job

STA Resident Engineer R&R – 1


– Support the plant for all new model launch programs not covered by Program STA.

– Support Launch Readiness Reviews as required and provide interface with


PVT/Plant.

– Assist Site Engineers as required in disposition of PPAP packages.

– Assist STA Site Engineers as required in completion of Supplier Run-at-Rate


reviews.

– Assist Site Engineers as needed in identification and resolution of chronic external


Supplier quality performance issues.

– Assist Suppliers and plants in resolving Supplier challenges to QRs, including PPM
input.

©2006 Ford Motor Company

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The STA Job

STA Resident Engineer R&R – 2


– Communicate best practices and lessons learned across other associated
STA Programs.

– Work with PVT to functionally approve all resourced product.

– Support the PVT/Plant Variability Reduction Teams in analyzing Supplier


warranty and initiating corrective actions that reduce R/1000 and CPU.

– Support PVT-led high-mileage reliability projects.

– Support plant-specific 6-Sigma projects when required

©2006 Ford Motor Company

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The STA Job

Process Specialist
Characteristics of the position
– Recognized for a specific skill or commodity area of expertise.

– Global Availability.

– Subject Matter Expert in the specialty.

– Extensive travel.

– Problem solving skills.

– Good communication skills, verbal and written.

– Part of a commodity group (North America).

– Reports to an STA Commodity Manager (N.A.).

– Uncontrolled reference Appendix A

©2006 Ford Motor Company

STA Process Specialist

The Process Specialist is a resource for the other STA Engineers within their area of technical
expertise. Characteristics of the position are:

• Provides process expertise to STA/Ford for their particular specialties.


• Monitoring and maintaining reports within areas of expertise.
• Work with all areas of the department.
• Visit sites to support areas of expertise.

Descriptions of current roles and responsibilities are located on the Ford


intranet at http://www.purchasing.ford.com/prch_sta/R&Rs.htm.

Uncontrolled copies of the roles and responsibilities are located in Appendix A.

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The STA Job

Process Specialist R&R – 1


– Drive continuous improvement in Suppliers within area of process expertise.

– Assess Supplier capabilities and drive improvement plans.

– Prioritize Supplier site efforts based on Supplier performance and vehicle/part


criticality.

– Identify systemic supply base deficiencies.

– Manage reports on Supplier sites within area of process expertise.

– Communicate Supplier capabilities to STA, Purchasing, and RVT.

©2006 Ford Motor Company

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The STA Job

Process Specialist R&R – 2


– Support STA by providing technical expertise within the area of process
expertise.

– Develop and deploy best practices within supply base and STA through the
benchmarking process.

– Resolve critical Supplier quality and throughput issues, as requested.

©2006 Ford Motor Company

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The STA Job

6-Sigma Black Belt


Characteristics of the position

– Verified through training and projects.

– Dedicated to BB projects (North America).

– Analytically competent.

– Proven problem solving skills.

– Holistic Process knowledge.

– Competent in SPC, Lean, Value Stream Management.

– Uncontrolled reference Appendix A

©2006 Ford Motor Company

6-Sigma Black Belt

The 6-Sigma Black Belt is a resource for the other STA Engineers within their area of
technical expertise. The main characteristic of the position is:

• Intense project work.

Descriptions of current roles and responsibilities are located on the Ford


intranet at http://www.purchasing.ford.com/prch_sta/R&Rs.htm.

Uncontrolled copies of the roles and responsibilities are located in Appendix A.

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The STA Job

6-Sigma Black Belt R&R


– Assist Project Champions in identifying and scoping Consumer Driven 6-Sigma
projects.

– Drive Value of Customer Satisfaction Improvement using 6-Sigma methodology.

– Deliver 3-4 projects per year that address customer satisfaction issues, improve
process capability, and improve cost savings/revenue.

– Provide expertise to department in 6-Sigma methodology and tools.

– Teach 6-Sigma methodology and tools to Green Belts as required.

– Drive internal culture toward “Management by Facts.”

©2006 Ford Motor Company

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The STA Job

STA Lean Manufacturing Specialist


– Assist supplier sites in implementing lean manufacturing practices; Lead
improvement workshops as required.

– Use Lean Tools as needed for process improvement:


• Current- and future-state Value Stream Maps.
• Perform Value Chain Analysis.
• Assess and calculate Overall Equipment Effectiveness.
• Conduct cycle time and line load analysis.
• Conduct capacity constraint analysis.

– Assess manufacturing gaps and opportunities, and compare findings to world-


class benchmarks.

– Assist suppliers to establish work-plans to achieve best in class performance.

– Provide manufacturing technical assistance as required to resolve constraints.

– Support the TVM process as requested.

©2006 Ford Motor Company

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The STA Job

Strategy Business Office


– Finance Analyst – Field Action Cost Recovery, Warranty Reduction, Budget/
Headcount.

– Sourcing for Quality – Process lead, e-MSA lead.

– Lead for: EBusiness (SIM, GSDB), Q1, PPAP, QOS, APQP, GPDS, Segmentation.

– Stop Ship/Field Action reduction process lead.

– Co-Lead: World Excellence Awards.

– Business Process Development and Standardisation

– Strategy Research and Development

– Reporting

– Communication

©2006 Ford Motor Company

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©2006 Ford Motor Company
Production Launch The STA Job

©2006 Ford Motor Company

Link to Production Launch

This graphic illustrates the relationships of the various STA positions during a new model
launch.

• The Program Manager may start work on a program 36 to six months prior to launch (Job1)
and may be working on multiple programs. From 1PP to Job1, responsibilities shift to the
Resident Manager and/or Resident Engineer involved in the launch.
• The Program Engineer will work with the program team from initial assignment until a defined
period after Job1.
• The Resident Manager/Engineer is already working with a current model program while
preparing for the new model to begin production at the assembly plant. A Resident Engineer at
a plant may not be involved if the line he or she works with is not involved in the launch.
• The Site Engineer will be involved with the Program Manager/Engineer at milestones and
builds.
• The Site Engineer, Process Specialist, and 6-Sigma Black Belt will be involved where
necessary to resolve issues with current and new model programs.

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©2006 Ford Motor Company
The STA Job

Summary

Work Together.

You are an STA Engineer.

©2006 Ford Motor Company

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©2006 Ford Motor Company
APPENDIX A

Site Engineer Segment I & II (North America)

•Deploy Q1 strategy by conducting on-site assessments


•Drive Supplier continuous improvement
•Provide technical support to aid in improving quality systems and drive Supplier concern
resolution process
•Review APQP, establish PPAP level and disposition PPAP packages as required
•Conduct Launch Readiness and Run at Rate reviews
•Assist in facilitating warranty sharing Letters of Agreement (LOA)
•Support 6-Sigma initiatives as required
•Support Lean and TCM initiatives
•Drive “non crisis” based communications between Suppliers and Ford Production plants
•Serve as single point of contact, accountable for site performance
•Monitor SIM and assure STA databases are updated with Supplier related information
•Approve PFMEAs and Control Plans for inverted delta parts
•Support Purchasing with new Supplier sourcing
•Review capability data and drive variability reduction

STA Site Engineer III & IV (North America)

•Deploy Q1 strategy and drive continuous improvement actions through Supplier business
unit. Conduct on-site assessments as necessary
•Provide technical support to aid in improving quality systems and drive Supplier concern
resolution process
•Review Supplier APQP status for High Impact Suppliers as directed
•Establish Supplier PPAP level
•Conduct Launch Readiness and Run at Rate reviews at High Impact Suppliers as
directed
•Assist in facilitating warranty sharing Letters of Agreement (LOA)
•Support 6-Sigma initiatives as required
•Support Lean and TCM initiatives
•Drive “Non crisis” based communications between Suppliers and Ford Production Plants
•Serve as single point of contact, accountable for site performance
•Monitor SIM and assure STA databases are updated with Supplier related information
•Approve PFMEAs and Control Plans for inverted delta parts
•Disposition PPAP packages as directed
•Support Purchasing with new Supplier sourcing
•Review capability data and drive variability reduction

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©2006 Ford Motor Company
APPENDIX A (cont.)

The STA Site/ Commodity Engineer - Europe

•Supports Sourcing for Quality


•Q1 Mfg Site Assessment and follow-up on Action plan, Support Fix or Leave strategy
•Drive 8D Resolution with suppliers
•Support 6 Sigma, Lean activities
•Verify & Monitor QOS of suppliers, drive improvement
•Support Stop Ship and FSA resolution
•Manage Supplier QR disputes
•Support Warranty Reduction activities
•Co-lead Business Unit Reviews as requested
•Support Strategic Commodity Teams and Global Councils as requested
•Review and approve PPAP, SIM Updates
•Manage multiple supplier sites/commodities

STA Program Engineer

•Support Purchasing with new Supplier sourcing


•Support the Program team in identifying High Impact Suppliers
•Communicate Program requirements between the appropriate Purchasing Managers,
Buyers, and Engineers
•Communicate High Impact Supplier readiness at required Program milestones
•Support Program and launch team efforts, i.e. PST, PAT, and PMT meetings
•Support the PFMEA/Control Plan sign off process for inverted delta parts, Launch ‘
Readiness and Run at Rate reviews, and disposition of PPAP packages for Segment III &
IV High Impact Suppliers as directed
•Provide required on-site launch support. Participate in prototype builds and drive
resolution of Supplier quality issues
•Review Segment III & IV High Impact APQP status as directed
•Support the Program with Campaign Prevention and driving Best Practices across the
supply base
•Assure STA databases are updated with Program related information
•Assist in facilitating warranty sharing Letters of Agreement (LOA)

STA Resident Manager (North America)

•Provide STA plant coverage for all launch programs from 1PP build through launch
(including added starter programs)
•Support launch reviews as required and provide interface with PVT/Plant
•Assist Site Engineers as required in disposition of PPAP packages
•Assist STA Site Engineers as required in completion of Supplier Run at Rate reviews
•Assist Site Engineers as needed in identification and resolution of chronic external
Supplier quality performance issues

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©2006 Ford Motor Company
APPENDIX A (cont.)

STA Resident Manager (North America) cont.

•Assist the plant incoming quality (IQ) department in selection of Supplier attendees
for
• the monthly IQ meetingsAssist Suppliers and plants in resolving Supplier
challenges to QRs, including PPM input
•Communicate best practices and lessons learned across other associated STA
programs
•Work with PVT to functionally approve all resourced product
•Support the PVT/Plant Variability Reduction Team (VRT) in analyzing Supplier
warranty
• and initiating corrective actions that reduce R/1000 and CPU
•Support PVT led high mileage reliability projects
•Support plant specific 6-Sigma projects when required

STA Resident Engineer

•Support plant coverage for S1/P1-S3/P3 launch programs from 1PP build through
launch
•Support Launch Readiness Reviews as required and provide interface with
PVT/Plant
•Assist Site Engineers as required in disposition of PPAP packages
•Assist STA Site Engineers as required in completion of Supplier Run at Rate
reviews
•Assist STA Site Engineers as needed in identification and resolution of chronic
external
• Supplier quality performance issues
•Assist Suppliers and plants in resolving Supplier challenges to QRs, including PPM
input
•Communicate best practices and lessons learned across other associated STA
Programs
•Work with PVT to functionally approve all resourced product
•Support the PVT/Plant Variability Reduction Teams in analyzing Supplier warranty
and
• initiating corrective actions that reduce R/1000 and CPU
•Support PVT led high mileage reliability projects
•Support plant specific 6-Sigma projects when required

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©2006 Ford Motor Company
APPENDIX A (cont.)

Process Specialist

•Drive continuous improvement in Suppliers within area of process expertise


•Assess Supplier capabilities and drive improvement plans
•Prioritize Supplier site efforts based on Supplier performance and vehicle/part critically
•Identify systemic supply base deficiencies
•Manage reports on Supplier sites within area of process expertise
•Communicate Supplier capabilities to STA, Purchasing & RVT
•Support STA by providing technical expertise within the area of process expertise
•Develop and deploy Best Practices within their supply base and STA through the
benchmarking process
•Resolve critical Supplier quality & throughput issues, as requested

6-Sigma Black Belt

•Assist Project Champions in identifying and scoping Consumer Driven 6-Sigma projects
•Drive Value of Customer Satisfaction Improvement using 6-Sigma methodology
•Deliver 3-4 projects per year that address Customer Satisfaction issues, improve process
capability and produce cost savings/revenue improvement
•Provide expertise to department in 6-Sigma methodology and tools
•Teach 6-Sigma methodology and tools to Green Belts as required
•Drive internal culture towards “Management by Facts”

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©2006 Ford Motor Company
APPENDIX A (cont.)

STA Lean Manufacturing Specialist

•Assist supplier sites in implementing lean manufacturing practices.


•Lead improvement workshops as required.
•Use Lean Tools as needed for process improvement:
- Current- and future-state Value Stream Maps.
- Perform Value Chain Analysis.
- Assess and calculate Overall Equipment Effectiveness.
- Conduct cycle time and line load analysis.
- Conduct capacity constraint analysis.
•Assess manufacturing gaps and opportunities, and compare findings to world-
class
benchmarks.
•Assist suppliers to establish work-plans to achieve best in class performance.
•Provide manufacturing technical assistance as required to resolve constraints.
•Support the TVM process as requested.

Strategy Business Office

•Finance Analyst – Field Action Cost Recovery, Warranty claims, Budget/Headcount


•Warranty Reduction – Quality and Cost
•Sourcing for Quality – Process lead, e-MSA lead
•STA e-Business (SIM, GSDB)
•Process Lead:
- Q1
- PPAP
- STA QOS
- APQP
- Segmentation
•GPDS on behalf of Quality Deliverables for suppliers
•Stop Ship/Field Action reduction process Lead
•Co-Lead: World Excellence Awards
•Business Process Development & Standardization
•Strategy Research & Development
•Reporting
•Communication

34
Revision 2006-01
©2006 Ford Motor Company
Participant Guide FPDS

The subject matter contained herein is covered by a copyright owned by:


FORD MOTOR COMPANY
CORPORATE QUALITY DEVELOPMENT CENTER
DEARBORN, MI
Copyright © 2001-2006 Ford Motor Company
This document contains information that may be proprietary. The contents of
this document may not be duplicated by any means without the written
permission of Ford Motor Company.
All rights reserved
Participant Guide FPDS

Introduction
Welcome to Ford Product Development System (FPDS), part of the Corporate Quality
Development Center (CQDC) curriculum. This course will be used to tie together the
other courses within the CQDC curriculum.

How This Course Relates to Other Courses


The following Sourcing and Focusing Resources curriculum courses relate to FPDS:
• Supplier Selection
• Sourcing the Best
• Supply-Based Quality Segmentation

Agenda

Introduction
What Is FPDS?
Summary
Additional Resources

© 2003-2006 Ford Motor Company Version: June 2006 1


FPDS Participant Guide

FPDS FPDS

When using FPDS, Ford Motor Company: The goal of the FPDS course is to
provide a consistent understanding
Plans new vehicles
of the Ford Product Development
Designs new vehicles
System (FPDS), focusing on
Develops new vehicles ensuring Supplier compliance with
Launches new vehicles the FPDS timeline.

FPDS

• Describe the FPDS process


• Describe the role of a STA Engineer within
the FPDS process
• Describe the relationship and impact of the
cycle plan to FPDS timing
• Describe the program timeline and the
elements affecting differences in programs
• Identify additional resources available to
provide details of FPDS

Upon completion of this course, the participant will be able to:


• Describe the FPDS process including timeline, milestones, scalability, product cycle
plan, and impact of milestones on STA (required deliverables)
• Describe when the STA Engineer gets involved within the FPDS process
• Describe the relationship and impact of the cycle plan to FPDS timing
• Describe the program timeline and the elements affecting differences in programs
 Powertrain vs. Vehicle Operations
 Program size (e.g., S6/P6 vs. S1/P1)
• Identify additional resources available to provide details of FPDS

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Participant Guide FPDS

FPDS

The model used is “top-down” for:


Vehicle level (whole vehicle)
Systems and subsystems
Component level with bottom-up
verification.

What Is FPDS?
Systems Model
• Systems Engineering underpins FPDS. The model used here is “top-down” from the
vehicle level (whole vehicle) through the systems and subsystems down to the
component level with bottom-up verification from components back to the vehicle
level.

© 2003-2006 Ford Motor Company Version: June 2006 3


FPDS Participant Guide

FPDS FPDS

! !

Attributes
Cost Security Safety

Vehicle
Vehicle System

FPDS

Vehicle
System
Components

Systems Model continued


• Vehicle level — At the top level, inputs from the customer, regulatory organizations
and Ford are translated into vehicle attributes such as cost, security, NVH (Noise,
Vibration, Harshness), etc. The vehicle attributes will be used to define the Vehicle
Design Specifications (VDS). System examples include body, electrical, powertrain,
and chassis.
• System level — The system level includes powertrain, chassis, etc. including
information about the Suppliers being brought in under phased sourcing.
 Level 1 subsystems include sheet metal, electrical distribution system, engine,
and suspension.
 Level 2 subsystems include front end, fuses, ignition, and wheels.
• Component level — Examples of components include: brackets, fuel injectors,
switches, etc.

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Participant Guide FPDS

FPDS

"
VEHICLE

BODY ELECTRICAL POWERTRAIN CHASSIS CLIMATE


Systems
CONTROL

Level 1 • Sheet Metal • Electrical • Engine • Suspension • Refrigeration


Subsystem
• Exterior Trim Distribution • Transmission • Steering • Air Handling
• Interior Trim System • Driveline Axle • Brakes • Heater
• Customer • Body Controls • Powertrain as Inst. • Frame/Sub-Frame • Controls
Convenience & • Electronic • Powertrain • Fuel Delivery
Entertainment Security Electronic and Storage
IP & Console • Electrical Power Controls • Interactive
• Seating & Generation & Controls
Restraints Storage
• Intelligent Vehicle
Highway Systems
• Communications Network

Vehicle Partitioning
Another way to think about the Systems Model is to begin with the whole vehicle and
partition the systems, i.e., chassis, engine, etc., and then drop down another level
within chassis, e.g., brakes.

© 2003-2006 Ford Motor Company Version: June 2006 5


FPDS Participant Guide

FPDS
#

KO SI SC PH PA ST PT PR CP CC LR LS J1 FS

S6/P6 42 months

S5/P5 41 months
S4/P4 37 months
S3/P3 32 months
S2/P2 24 months
S1/P1 18 months

Scalability
The concept of Scalability is used to ensure that all programs meet the same
milestones—both Vehicle and Powertrain. Scalability is a concept used to define the
scope and depth of a program identified by the following codes:

S1 Refers to trim (new seat sew style modifications only for seats, insert material changes for interior appliqués)

S2 Refers to minor freshening, e.g., new seat pads, lamp decoration with carryover tooling and optics

S3 Refers to moderate freshening, e.g., carryover inner panels, new outers

S4 Includes carryover platforms, i.e., all new to the customer

S5 Includes modified platforms, i.e., carryover platforms with structural changes

S6 Includes new platforms, i.e., all new platform and structure

P1 Carryover powertrain, minor calibration

P2 Carryover engine/transmission, moderate calibration

P3 Minor engine/transmission, major calibration/minor emissions

P4 New use engine/transmission, new calibration/major emissions

P5 Major engine/transmission upgrade, first use emissions

P6 New engine/combustion, new transmission/powerflow

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Participant Guide FPDS

FPDS

VEHICLE SCALABILITY
S6 S5 S4 S3 S2 S1
POWERTRAIN SCALABILITY

P6 Ve
P6-S6 hic Combination
l es
P5 tre Not Allowed.
Po P5-S5 tch
we es
P4 rtr to
ain P4-S4 po
str we
etc rtr
P3 he P3-S3 ain
st ti m
ov ing
P2 eh .
icl P2-S2
et
im
P1 ing
. P1-S1

Scalability Combinations
Combinations of Vehicle and Powertrain programs produce timing determined by the
longest lead. Some combinations are not allowed, e.g., small vehicle enhancements
with large changes to the powertrain.
Program milestones are established as a result of the “worst case” Powertrain or
Vehicle change.

© 2003-2006 Ford Motor Company Version: June 2006 7


FPDS Participant Guide

FPDS
$
KO PS1 PS2 SI SC PH PA ST PR CP CC LS J1 FS
LR
50 41 30 25.5 19 14.5 0 -3

MANAGE

Design/ Launch/ Update


Program Define Mfg. Mass Prod. Corporate
Input Architecture Confirmation Confirmation Memory
Vehicle
System
DEFINE VERIFY AND LAUNCH
Subsystem
Component
Ca

y
s

rif
ca

Ve
de

Product/Process
Design

DESIGN
Optimize

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Participant Guide FPDS

Key Phases
Functions and processes within FPDS are grouped into key phases. One may consider
all groupings arbitrary, but the ones that have emerged within FPDS are Define,
Design, Verify and Launch, and Manage.

Define Phase Key Events


• Targets Define target ranges.
• Phased Sourcing Bring Suppliers on board during this time
as part of the team.
• Reusability Establish level of reusability, which differs
depending on the commodity.

Design Phase Key Phase Events


• Reliability Design reliability into the product.
• Analytical Engineering Use analytical engineering (C3P) to
ensure reliability.
• Appearance Appearance, function, and package
reduce the level of engineering time spent
on fine feasibility of appearance concepts
by the use of “coarse feasibility”
processes. This allows adequate feasibility
of multiple appearance and package
concepts to support final appearance
selection within defined resources.
• Total Manufacturing Involvement Design and Manufacturing work together
from the start of the project.
• Phased Data Notification Phased release of data through the CAD
system and WERS (the non-geometric
data).

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FPDS Participant Guide

Key Phases, continued


Verify and Launch Phase Key Events
• Prototype Phases CAE
Lab and rig testing
Attribute Prototypes
Confirmation Prototypes
• Bundled Changes Group changes to ensure compatibility of
the requested changes.
Engineers review the interrelationship of
requested changes to a part.
Although you may view these phases as discrete, there is considerable overlap in their
timing.

Manage Phase Key Events


The manage phase spans the entire FPDS process.
• Team Structures Teams are formed early in the process.
• Quality Operating System Project Management and the Quality
Operating System (Integrator) manage the
project ensuring that changes are grouped
to avoid expensive individual changes.
• FPDS Communications Work Breakdown Structure
Integrator
Lessons learned
• Best Practices

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FPDS

41 36 33.5 30 25.5 19 14.5 8 4.5 3.25 0 -3

KO
KO SI Vehicle PR CP CC LR LS J1 FS

Kick Off SC System


Strategic PT Product Change Launch Final
Intent
PH Readiness Cut-Off Sign-Off Status
Components Confirmation
Strategic Launch Job 1
Confirmation PA Prototype Readiness
ST Powertrain
Design
Proportions
Complete
&
Hardpoints
Surface
Program Transfer
Approval

© 2003-2006 Ford Motor Company Version: June 2006 11


FPDS Participant Guide

Milestones
“Milestones” signify the completion of specific measurables of the program.
• (KO) Kick off Key Events
 (KO) is the beginning of program-specific work
 Program “Black Book” compiled and signed-off (includes craftsmanship targets)
 Program “one-pager” filed with Product Planning & Technology (PP&T) (hand-off
from Business Office to Program Team)
• <PS1> – <Pre <SI> Milestone 1
 Mission, vision, and Affordable Business Structure (ABS) agreed, initial
strategies developed
 Customer profile established, preliminary Brand Profiler available
 Customer/market/competitive requirements defined
 Regulatory/corporate needs/wants identified
 Benchmark/comparator vehicles identified
• <PS2> – <Pre <SI> Milestone 2
 Preliminary functional target ranges and design strategy proposed
 Preliminary alternatives/supporting assumptions defined
 Derivative capabilities assessed
 Preliminary post <SI> resource/facility plans and program workplan established
 Sourcing Council approval to conduct make/buy studies
• <SI> Strategic Intent Key Events (Percent of parts sourced at SI depends on
scalability of the program and commodity. This is a purchasing metric.)
 Strategies for product, market, manufacturing, supply, design and reusability
confirmed
 Major customer/corporate wants and regulatory requirements compliance plans
done
 Compatible vehicle-level target ranges and product assumptions established
consistent with ABS (includes craftsmanship)
 Appearance Stakeholder Team commits to appearance image
 New technologies identified, P/T and vehicle architecture are implementation-
ready
 Program logistics confirmed — timing, workplan, resources, and facilities (targets
are set, product content is available, this information feeds APQP)
 Scale model

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Participant Guide FPDS

Milestones, continued
• <SC> Strategic Confirmation Key Events
 Vehicle/system/level 1 subsystem targets committed
 Powertrain lineup selected
 Manufacturing assembly location for each derivative confirmed
 All system/subsystem Suppliers selected/part of the team
 Long lead funding to Board of Directors (if required)
 Initial Attribute Prototype (AP)/Confirmation Prototype (CP) plan is available
• <PH> Proportions and Hardpoints Key Events
 Freeze proportions and selected hardpoints
 Freeze people and cargo package
 Hardpoints and structural joint designs are compatible with all program targets
 Level 2 subsystem targets committed
 Appearance themes have been reviewed in market research (interior/exterior)
• <PA> Program Approval Key Events
 Theme approval for interior and exterior appearance (all trim levels)
 All targets become objectives
 Approve program facilities and tooling investment
 Marketing commitment to net revenue; initial ordering guide available
 Program Design Verification Plans (DVPs) and Failure Mode and Effects
Analysis’ (FMEAs) complete (This is a design activity. If the Supplier is designing
the part, then it is responsible for completing these activities.)
 Program Parts List (PPL) complete
 Powertrain cross-section design complete with manufacturing sign-off
 Final prototype (AC/CP) plan available
• (ST) Surface Transfer Key Events
 Approved theme refined for craftsmanship execution (consistent with <PA>
Objectives
 Interior and exterior Class IA stichable surfaces transferred to engineering
 Phased Data Notification process initiated

© 2003-2006 Ford Motor Company Version: June 2006 13


FPDS Participant Guide

Milestones, continued
• (PT) P/T Design Complete (24 months for a P5 program)
 Powertrain analytical design verification and calibration complete
 Batch 1 prototype assembly starts
 Powertrain manufacturing feasibility sign-off
 100 K emission testing initiated
• <PR> Product Readiness
 Full vehicle analytical sign-off; all objectives can be met
 Last Class I surface verified and released for major formed parts
 Final Math 1, 2, and 3 phased data notification’s are complete
 Launch plan is confirmed and issued
 CAD files reflect Pre-(CP) verification changes
 Data Control Model signed off
• (CP) Confirmation Prototype Key Events (STA Engineers get involved with the
builds; they may get involved with earlier builds depending on the program.)
 “Make like production” prototype part and assembly tools/ergonomics/process
sheets (to the extent feasible)
 First CPs available for tuning and durability testing
 Coordinate measuring machine (CMM) analysis complete for all CP end-items
and subassemblies
 P/T commitment to support Production Validation (PV) with Part Submission
Warrant (PSW) parts
• <CC> Change Cut-Off Key Events
 Preliminary Engineering Sign-off complete
♦ CP durability testing
♦ Known changes from CP containable for 1PP
♦ Initial set of road tests completed
♦ Design is at Job #1 level — no further design changes except “No Builds”
♦ Engineering confidence declared that objectives will be met
♦ Management drive completed
 Color/graining tooling authorization
 Supplier commitment to support 1 PP with PSW parts
 Decision required to support lifetime runs, changeover tooling, etc.

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Milestones, continued
• <LR> Launch Readiness Key Events
 Final Engineering Sign-off (excluding Certification/Safety documentation)
completed:
♦ Functional objectives met
♦ Final road tests completed
♦ Formal certification/homologation (except emissions) testing complete
 Readiness to proceed to Tool Try-Out (TTO), 1PP, and Job 1
 CP/Hard Tooled Functional Build (HTFB) issues resolved
 All production assembly tools functioned at tool source or in homeline
 Color/textures/gloss sign-off complete
 100% PSW parts available for 1PP
• <LS> Launch Sign-Off
 Analytical models are correlated with CP test results
 Tool Try-Out (TTO) and 1PP complete
 Assembly plant tools and process verification complete including aids and
fixtures
 New Overall Vehicle Audit (Nova C)<5 on manufacturing-controlled items
• (J1) Job 1 Key Events
 Integrated Launch complete
 Operator training complete and continuing through ramp-up
 In-process and final quality indicators meet program objectives
 Powertrain Production Validation (PV) complete in support of P/T plant’s Job1
 Field Evaluation Unit (FEU) drive complete
 New Overall Vehicle Audit (Nova C)<3(FCPA [Ford Consumer Product Audit])
 CAE models correlated and bookshelf updated
• (FS) Final Status Key Events
 Final status report due six months after Job1
 Senior management reviews market acceptance, quality, financial results, and
lessons learned

© 2003-2006 Ford Motor Company Version: June 2006 15


FPDS Participant Guide

Cycle Plan
Refer to Appendix B and review the sample cycle plan.
The cycle plan defines the programs, including:
• The model year
• The scale of the program
• The number of expected new parts
• The expected timing for 1PP and Job 1
Using the cycle plan and the scalability, needed resources are identified. When we
overlay the cycle plan on the scalability chart, it tells us the “number” of resources
needed to do the program. When we overlay all programs, the “total number” cannot
exceed “X.” If it does, that means resources are not available to do the program and
something must be scaled back or resources added.

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FPDS

% "
KO PS1 PS2 SI SC PH PA ST PR CP CC LS J1 FS
LR
50 41 30 25.5 19 14.5 0 -3

Design/ Launch/ Update


Program Define Mfg. Mass Prod. Corporate
Input Architecture Confirmation Confirmation Memory
Vehicle
System
Subsystem
Component
Ca

ify
sc

r
a

Ve
de

Product/Process
Design

DESIGN
Optimize

Design Phase

Engineering for Engineering for Reliability focuses on characteristics of a reliable


Reliability product and the tools that are used to achieve reliability within
FPDS.
Predictive and Computer Aided Engineering (CAE) techniques are used to
Analytical Engineering design in robustness as part of the C3P package.
Package and Package and Appearance covers these features from the design
Appearance strategy before <SI> through theme approval to the optimization
of the design at (ST).
Total Manufacturing Total Manufacturing Involvement is Ford’s implementation of
Involvement simultaneous engineering.
Phased Data Phased Data Notification is just-in-time data delivery tailored for
Notification the manufacturing process.

© 2003-2006 Ford Motor Company Version: June 2006 17


FPDS Participant Guide

FPDS
!& & % "
INFANT EXPECTED WEAROUT
MORTALITY LIFE

Non-Robust
Design
Failure Rate

Robust Design

*A robust system is insensitive to noises and has a low failure


Time rate over the design’
design’s expected life.

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Reliability
Engineering for Reliability occurs primarily in the Design Phase. A product shows
reliability when it performs its intended function for a specified life under operating
conditions and when it exceeds customer expectations.
Reliability is important because quality is a primary concern of Ford’s customers.
Therefore, at Ford, reliability is of primary importance. A prerequisite to reliability is
robustness. Robustness is the ability of a product or process to perform its intended
function under a variety of environmental and other uncontrollable conditions
throughout its life cycle at the lowest possible cost. A robust design is insensitive to
“noise” variation. The “bathtub curve” illustrates the reliability of robust designs versus
non-robust designs.
The FPDS charter is to deliver a vehicle with features a customer desires that function
for 10 years, 150,000 miles. This vehicle will be subjected to operating conditions that
will have:
• Variation or “noise”
• Customer usage
• Temperature
• Mileage
• System-to-system interaction
• Piece-to-piece variation
• Changes in dimension due to wear and fatigue
Robustness must be a part of the design; that is, function in the presence of variation.
How can this be done? By controlling the sources of variation using reliability tools.

© 2003-2006 Ford Motor Company Version: June 2006 19


FPDS Participant Guide

FPDS

' (
FMEA Global 8D

P (parameter) Diagrams

Key Life Tests C3P modeling

Design Verification Plans

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Reliability Tools
FMEA Failure Mode and Effects Analysis is a systematic approach that
identifies potential failure modes in a system, product, or
manufacturing/assembly operation caused by either design or
manufacturing/assembly process deficiencies. It also identifies critical
design or process characteristics that require special controls to prevent
or detect failure modes. FMEA is a tool used to prevent problems from
occurring.
P-Diagrams Parameter diagrams act as a framework for the Parameter Design
Study, and consist of the system of study, the signal and response, and
the control and noise factors. This tool requires thought about the
system in terms of intended or ideal function and how the system
transfers/transforms energy. The P-Diagram categorizes engineering
factors into:
• Control Factors
• Noise Factors
• Signal Factors
• Measured Functional output response
DVPs Design Verification Plans are used to verify component, system, and
vehicle design to functional intent.
Global 8D Global 8D is a disciplined team-oriented problem-solving process that
applies analytical tools to data in order to identify the problem, define
the root cause and escape point, and verify, implement, and validate
actions to eliminate the problem, to actuate performance improvement,
and to prevent problem recurrence.
Key Life Tests A test that duplicates the stresses under customer operation. It includes
the specified extremes of loads, usage, manufacturing/assembly
variability, environmental stresses, and their interactions to address a
single critical failure mode or a group of failure modes that result from
the same stress patterns. It may be accelerated to reduce test time.
C3P Modeling The use of computers in analyzing and optimizing product designs and
manufacturing processes.

© 2003-2006 Ford Motor Company Version: June 2006 21


FPDS Participant Guide

FPDS

& !
KO PS1 PS2 SI SC PH PA ST PR CP CC LS J1 FS
LR
50 41 30 25.5 19 14.5 0 -3

Design/ Launch/ Update


Program Define Mfg. Mass Prod. Corporate
Input Architecture
Vehicle Confirmation Confirmation Memory

System
Subsystem VERIFY AND LAUNCH
Component
Ca

ify
cas

r
Ve
Product/Process
de

Design

Optimize

Verify and Launch Phase


During the Verify and Launch Phase, components, systems, and vehicles are verified
and tested using Computer Aided Engineering (CAE) and actual builds (Attribute and
Confirmation prototypes). Once completed, the final preparation of pre-production
vehicles will lead to Job 1.

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FPDS

Analytical
Lab/Rig/Dynomometer
Attribute Prototype (AP)
Confirmation Prototype (CP)

Prototype Phases
Analytical C3P is the enabler. The Computer Aided Engineering section is a set of tools
for target setting and validation, design experimentation, design verifications
as well as system and attribute integration.

Lab/Rig/Dynomometer These physical tests are used when the analytical tools have been fully
exploited. The focus is at the system/subsystem level to verify attributes prior
to full vehicle testing, including key life testing, dynomometer testing for
calibration and durability. End item/component testing is performed primarily
at full-service Suppliers.

AP An Attribute Prototype (AP) is a production vehicle of any make/model,


modified to evaluate or provide direction for a specific vehicle attribute. As
such, APs are not intended to be batch-built vehicles. Several levels of each
AP can be built targeted toward evaluation of different specific attributes.
Attribute prototypes content is identified to develop specific vehicle, system,
and subsystem attributes.

CP A Confirmation Prototype is a vehicle engineering prototype that is completely


representative of production-released design. Their intended usage is for
DVP&R confirmation, assembly prove-out, final vehicle tuning, fit and finish
evaluation, and durability and certification testing.

© 2003-2006 Ford Motor Company Version: June 2006 23


FPDS Participant Guide

FPDS
)
41 36 33. 30 25.5 19 14.5 8
5
Attribute Phases Confirmation Prototype

PROTOTYPES AP0 AP1 AP2 AP3 CP


39.5 - 38.5 32 - 30 24 - 22 19 - 17 1st complete at
14.5 mo.
• NVH
FUNCTIONAL • Vehicle Dynamics
ATTRIBUTES
• Safety
TO BE • Road Load
DEVELOPED • Thermo/Aero
• Performance/Emissions
Validate Target Verify Job 1 Intent
Target Powertrain
PURPOSE and Design Product/Process
Setting Calibration
Early Design Intent Confirmation

IN SUPPORT
OF Strategic Program Surface Product Preliminary
MILESTONE Confirmation Approval Transfer Readiness Engineering
TIMING 36 mo. 30 mo. 25.5 mo. 19 mo. Sign-Off

POWERTRAIN Batch I Batch II Batch III


BUILDS 22.5--22.75 mo. 19.25--18 mo. 15.75--14.75 mo.

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Participant Guide FPDS

Prototype Builds
Attribute Prototypes
• Attribute Prototypes (APs) are used to support the target-setting process. APs can
be used to develop and validate targets for the following attributes:
 NVH (Noise, Vibration, Harshness)
 Vehicle Dynamics
 Safety
 Durability/Road Load
 Thermo Aero
 Performance/Emissions
• APs are typically built from cobbled competitor’s production vehicles or from Ford
production vehicles.
• APs are not required to be built to production-intent processes; however,
manufacturing is encouraged to observe their construction to help develop
production processes.

Confirmation Prototypes
• Confirmation Prototypes (CPs) are built to confirm both the product design and the
production process.
• The only product changes that occur after (CP) are those required to fix problems
discovered during the Product and Process Confirmation Process.
• Similarly, the only changes made after (CP) to the production processes are those
discovered during the Product and Process Confirmation Process.

© 2003-2006 Ford Motor Company Version: June 2006 25


FPDS Participant Guide

FPDS

CP
HTFB
PSW/Run-at-Rate
1PP
FEU
IB

Production Builds
• CP is the first time you start seeing production tooling. There may be two CP builds:
 CPF, which is a functional build
 CPC, which is a craftsmanship build
• HTFB is just before 1PP (approximately three months). It is a build, not a milestone.
It is the first time you see the sheet metal tool tryout.
• PPAP/Run-at-Rate is targeted for completion by 1PP. Run-at-Rate is tracked from
the PPAP run and must be completed before Job1. (The PPAP course contains
more information.)
• 1PP is full production at the plant with production tooling, the initial phase of the
Engineering handoff to the plant.
• FEU (Fleet FieldEvaluation Unit) Builds are saleable units built on production tooling
that allow a slow ramp-up of Suppliers and the plant process prove out. Saleable
means that the vehicle can be certified to Federal government requirements i.e.
CAFÉ, safety tests.
• IB (Integrated Build) is also known as CB (Continuous Build) or 4P (pre-
production process prove-out).

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Sample Process Timeline

© 2003-2006 Ford Motor Company Version: June 2006 27


FPDS Participant Guide

FPDS

# (

The Powertrain Team Structure includes:


Powertrain Program Module Team (P/TPMT)
Subsystem Program Module Team (SPMT)
Component Program Module Team (CPMT)

Powertrain Team Structure


The powertrain team structure includes:
• The Powertrain Program Module Team (P/T PMT)
• The Subsystem Program Module Team (SPMT). Typical SPMT names include:
 Engine SPMT (also known as EPMT)
 Transmission SPMT (also known as TPMT)
 ADSE SPMT
 VC/CAPE SMPT (this includes calibration, controls, certification/homologation
and the as-installed components)
• The Component Program Module Team (CPMT); CPMT is also used to define sub-
subsystem teams

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FPDS

(* % %
• High-Impact Supplier list <SI>
• APQP reporting status reports <PA>
• Schedule of Supplier Readiness Reviews <PR>
• LRR Summary reports <CP> through Job 1
• Incoming product sampling plan for high-risk Suppliers
<CP>
• List of Suppliers required on-site for vehicle builds
<CP>
• Supplier CEO Conference with Ford V.P. <as required>
• Executive Champion Review at Critical Suppliers <as
required>
• Supplier Operation Management Reviews <as required>

Notes:
• High Impact and Focus Suppliers are Tier 1, external Suppliers that the team feels
present substantial risk to the quality or timing of the vehicle program.)
• Executive Champion refers to a Ford Executive Director level person who would act
as the Champion to that supplier.
Refer to the Launch QOS (lqos_206) document in the Appendix for more information
related to STA deliverables.

© 2003-2006 Ford Motor Company Version: June 2006 29


FPDS Participant Guide

What is GPDS?
It represents an essential step in the improvement of our product creation process,
tools, and culture that will enable us to produce more products, faster.

GPDS adapts the proven Mazda Product Development System v2 (MPDS) benchmark
of speed and efficiency. It builds on existing best practices from all our brands around
the world to create a lean, integrated process with high levels of reuse of product,
process, and manufacturing resources. It will enable more effective technology sharing
and promote commonality.

30 Version: June 2006 © 2003-2006 Ford Motor Company


Participant Guide FPDS

Frequently Asked Questions (FAO) about GPDS

Why move to GPDS?


GPDS will enable each CBG/Brand to improve to World Class levels for stand-alone,
joint, and platform programs. Additional benefits include:

• Improve our competitive position via collaboration between departments, brands,


divisions, and suppliers
• Match the competition for time to market, engineering efficiency, and quality
• Reduce product creation expenses
• Improved quality of “product” and “process” execution
• Better tailor products to meet customer expectations

How will GPDS help Ford achieve these benefits?

• Driving better planning at the start of programs


• Earlier and Better definition of the program makeup
• Important decisions made on time using an improved logic sequence
• Aggressive execution of the plan with minimal variance
• Integration of learning and continuous improvement principles

What is a GPDS enabler?

Enablers are the integration of people, process, and tools that fundamentally change
the way we do a part of the business and close critical timing and quality gaps between
current product creation processes and GPDS.

© 2003-2006 Ford Motor Company Version: June 2006 31


FPDS Participant Guide

FPDS

Systems Model Reliability


Key Phases Reliability Tools
Milestones Prototypes
Scalability Team Structure
Scalability STA Deliverables
Combinations and FPDS
Cycle Plan Brief description
of GPDS

32 Version: June 2006 © 2003-2006 Ford Motor Company


Participant Guide FPDS

Summary
• Systems Model — FPDS is based on systems engineering. The model is top-down
from the vehicle level through the systems and subsystems to the component level
with bottom-up verification from components back to the vehicle level.
• Key Phases — The phases are Define, Design, Verify and Launch, and Manage.
• Milestones — These signify the completion of specific measurables of the program.
• Scalability — This ensures that all programs meet the same milestones; both
Vehicle and Powertrain.
• Scalability Combinations — Combinations of Vehicle and Powertrain programs
produce timing determined by the longest lead.
• Cycle Plan — Using the cycle plan and the scalability, needed resources are
identified.
• Reliability — Engineering for reliability occurs primarily in the Design Phase. A
product shows reliability when it performs its intended function for a specified life
under operating conditions and when it exceeds customer expectations.
• Reliability Tools — The tools are FMEA, P-Diagrams, DVPs, Global 8D, Key Life
Tests, and C3P Modeling.
• Prototypes — The prototypes are Analytical, Lab/Rig/Dynomometer, AP, and CP.
• Team Structure — PST, PMT, PAT, PMA, and VPMC.
• STA Deliverables and FPDS — These include the following: High Impact Supplier
list; APQP reporting status reports; Schedule of Supplier Readiness Reviews;
Launch Readiness Review Summary reports; incoming product sampling plan for
high-risk Suppliers; list of Suppliers required on-site; Run-at-Rate exercises at
Supplier facility; Supplier CEO Conference with Ford Vice President;, Executive
Champion Review at Critical Suppliers; and Supplier Operation Management
Reviews.

© 2003-2006 Ford Motor Company Version: June 2006 33


FPDS Participant Guide

Additional Resources
Web Sites
FPDS utilizes a central repository of processes and procedures held on the Ford
Intranet. These include:
• FPDS Integrator — This provides a tool that program teams can use for project
management, QOS maintenance, and FPDS process information. It is located at
http://www.fpdsonline.ford.com
• Work Breakdown Structure — This is the primary organizer for Ford Product
Development. It is located at http:// www.fpdsonline.ford.com
• Lessons Learned — This site captures successes and failures experienced by our
organization or from our ongoing efforts to identify and benefit from the relevant
experiences of external organizations. It is located at http://www.lessons.ford.com.
• Best Practices — There are more than 500 best practices in the Best Practice
Database. By accessing best practices that apply to your program, you can benefit
from learning about and using processes that have already been developed, tested,
and successfully used in other parts of FPDS. You can find a best practice by
entering the FPDS URL (www.fpdsonline.ford.com) to arrive at the FPDS home
page. At the FPDS home page, click on Process Ownership Teams & Best
Practices under FPDS Supporting Websites and Reference Materials. From this
web site, you can find a best practice to help you, or submit a best practice idea. For
more information, see the booklet, A Quick Guide to Best Practices.
• GPDS Online – Builds on existing best practices from all our brands around the
world to create a lean, integrated process with high levels of reuse of product,
process, and manufacturing.
It is located at http://www.gpdsonline.ford.com

34 Version: June 2006 © 2003-2006 Ford Motor Company


Participant Guide FPDS

Sample Cycle Plan

2000 2001 2002 2003


PLANT CARLINE MY PRGM SIZE PARTS Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
XYA 1999 S6/P6 1200

2000.5 S3 75 J1
2001 S4 300 CP 1PP J1
2001 S1/P2 20 1PP J1
2002 S1 TBD 1PP J1
2003 S5/P5 400 1PP J1
2003 S4/P5 400 CP 1PP J1
ABW 2000 S4 860
2001 S1/P3 175 J1
KLN 2000 S1/P1 70
2001 S3/P3 250 1PP J1
2003 S5/P5 400 1PP J1
PLN 2000 S1/P1 50
WJK 2001 S4/P4 250 1PP J1
2002 S1/P3 200 1PP J1
2003.5 S4/P1 1200 CP 1PP J1
NVS 2000 S1 90
2001 S3 300 1PP J1
PLQ 2000 S1 88
2001 S3/P2 140 1PP J1
OLM 2002 S2/P4 40 1PP J1
2003.5 S5 900 CP 1PP J1
WDO 2004 S6/P6 1500 CP 1PP J1

ILX 2000 S2/P2 40 J1


2001 S1/P1 450 1PP J1
2002 S2 300 1PP J1
2004 S6P4 900 CP 1PP J1

© 2003-2006 Ford Motor Company Version: June 2006 35


FPDS Participant Guide

Sample STA Launch Plan


DAYS BEFORE JOB1 DAYS AFTER JOB1
-180 -120 -60 +60
PROGRAM MILESTONES
1PP Build
FEU/4P Build Integrated Build
<LR>
Final Engineering Signoff <LS> Job 1
100% PSW for 1PP Manufacturing assessment of full production feasability
Color/textures/gloss sign-off complete Assembly plant tools & process verification complete

Quality Issue Resolution

Flawless Launch Initiative


Launch Readiness Reviews

Run @ Rate

Phased PPAP Review/Approval


On-Site Support
Capability Reviews

Launch Support Lessons Learned

QUALITY ISSUE RESOLUTION FLAWLESS LAUNCH INITIATIVE LAUNCH READINESS REVIEWS PHASED PPAP REVIEW/APPROVAL LAUNCH SUPPORT
- Identify & resolve quality issues - Deliver the vehicle launch using a (LRR) Phase 1 - Quality Verification - (16 of - Drive resolution of quality issues
with suppliers comprehensive initiative, which - Organize cross-functional team 19 elements of PPAP - excludes identified during AIMs binning
- Ensure supplier reworks or utilizes coordinated activities such that includes: MP&L, Product PSW, Appearance Approval and meetings, drive evaluations, fresh-
replaces parts, which do not as: Engineering, Purchasing, STA Master Sample) - supplier dispositions eyes reviews, and FCPA.
meet design specifications Launch Readiness Reviews - Drive Program Engineering, STA Site in system. - Present supplier quality
- Drive supplier 8D process supplier readiness with reviews Engineering and Vehicle Phase 2 - Production Verification for assessments through management
- Ensure robust corrective conducted prior to 1PP and at each Operations. specific program/plant by In Plant review meetings
actions build event. - Lead team in assessments and Date for 1PP build phase (all 19 - Track and report on LRR Status
- Drive resolution of AIM Run @ Rate -Execute at the drive resolution of issues through: elements of PPAP on parts from Matrix to the Launch Team
Supplier Quality issues supplier location as soon as the MP&L SMART Reviews, actual production streams - Provide support to Launch Team
- Identify poor performing production process is in place and Measurment System Reviews, (tools/caities/molds/lines/etc.)) - meetings
suppliers and drive repeated until successful. Production Capacity and Process Supplier dispositions in system and - Track PSW completion through the
improvements in launch support Phased PSW - Approve on-site Reviews. forwards PSW documentation Open to Go Process
when all PPAP & run@rate Phase 3 - Capacity Verification - target - Direct supplier support during
requirments have been validated completion is 4 weeks prior to Job 1 - Launch
and met. RUN @ RATE demonstrating ability to meet Ford - Track supplier/part status for non-
Capability Reviews - Verify when - Conduct reviews at selected required volumes under intended PSW'd parts.
processes are capable. Conduct supplier manufacturing sites with operation pattern - supplier LESSONS LEARNED
throughout the Vehicle Launch. all production tooling running at full dispositions completion nad provides - Drive the gathering of knowledge
On-Site Support - Conduct at the production speeds and feeds, Demonstrated Weekly Capicity gained during the Launch and
supplier location throughout the utilizing all regular produciton numbers in system. ensure it is applied on future
Flawless Launch initiative. personnel. launches, to provide continuous
- Signoff supplier process when the improvement and prevention of
run is successful and meets all concern recurrence.
capacity requirements. ON-SITE SUPPORT
- Direct supplier resources to resolve
part quality and process capability
issues at selected supplier
manufacturing locations.

CAPABILITY REVIEWS
- Drive supplier improvements in
process capability. When a minimum
Ppk of 1.67 is not reached at <LR>,
verify workplan is developed to
achieve an ongoing Cpk of 1.33.

36 Version: June 2006 © 2003-2006 Ford Motor Company


Participant Guide FPDS

INCOMING QUALITY (IQ)


ON-GOING INTENSIVE PROCESS

The new IQ process is a parallel quality improvement initiative. It increases cross-


functional participation in the systemic improvement of the quality performance of
Suppliers and addresses both customer satisfaction and plant quality.
Current Process:
The STA Resident at the plant, with the support of the Plant Vehicle Team (PVT) and
IQ Section, identifies the "Top 10" problem Suppliers based on their impact on plant
quality and customer satisfaction. The STA Resident drives systemic quality
improvement at these Suppliers with the support of Commodity STA.
New IQ Process:
The IQ Engineer at the plant with the support of the PVT, IQ Section and STA Resident
identifies the "Top 25" problem Suppliers based on their impact on customer
satisfaction and plant performance. The IQ Engineer facilitates improved problem
definition at the plant, coordinates improved containment actions at the plant and drives
systemic improvement at the Suppliers with the support of the STA Resident and
Commodity STA and through on-site Supplier visitations.
Objective:
• Prioritize problem Suppliers and issues based on the impact on both the plant and
the customer through Top 25 Customer Satisfaction high leveraged items.
• Improve communication between the Supplier, the plant and the activities involved
in quality improvement actions, i.e. IQ Section, STA, PVT, and Production.
• Improve concern definition for quality issues.
• Verify permanent corrective action both systemic and specific.
• Facilitate containment actions to protect the customer.
Process:
Supplier Quality Issues
STEP 1
• Identify and prioritize the Top 25 Customer Satisfaction Supplier concerns based on
plant and customer impact. The IQ Engineer would coordinate this review with
support from the STA resident, PVT Manager and the IQ Supervisor. The primary
data resources would be the "Top 25 Single Agenda?" the "STA Resident Monthly
QOS" and the "SIM (Supplier Improvement Metrics) Report". Attachment 1
STEP 2
• Clearly define the quality problem and categorize supplier quality, plant process and
design issues. The IQ Engineer would coordinate this evaluation with support from

© 2003-2006 Ford Motor Company Version: June 2006 37


FPDS Participant Guide

I.Q. Section, PVT, Production and the STA Resident, when appropriate. Verify
associated CTQs (Critical To Quality) characteristics.

STEP 3
• Verify containment actions are effectively in place to protect the plant and the
customer. The IQ Engineer would coordinate this with the support of the IQ Section
and the Supplier.

STEP 4
• Determine the Segmentation strategy for the selected Suppliers. The STA Resident
would assist in obtaining this information.

STEP 5
• Develop a strategy for resolution of the selected Supplier quality issues. The IQ
Engineer would facilitate this process with support from the STA Resident. Typical
actions could include calling the Supplier in for an IQ review, requesting on-site
reviews at the Supplier by Commodity STA or on-site reviews at the Supplier by the
IQ Engineer.

STEP 6
• The STA Resident would notify the Supplier of the planned actions and obtain their
commitment to support the process. The IQ Engineer would arrange in plant and on-
site reviews with the selected Suppliers.

STEP 7
• The objective of the on-site review would be to verify the Supplier has identified the
systemic root causes of the concern and has implemented and verified corrective
actions including containment. The Supplier's Global 8D would be the primary
tracking document.

STEP 8
• The results of the Incoming Quality Process should be published on a regular basis.
The report should be distributed to the Plant Manager, QC Manager, PVT Manager,
STA Commodity Engineer, STA Commodity Manager, STA Resident, N.A. Car STA
Manager and Purchasing Manager.

38 Version: June 2006 © 2003-2006 Ford Motor Company


Participant Guide FPDS

Process:
Supplier Design Issues
Steps 2 through 4 are the same.
STEP 5
• The IQ Engineer will be a member of the Change Management Team to review
the incoming Supplier engineering changes.

STEP 6
• The team will evaluate the risk regarding either Supplier performance and or
complexity of the engineering change and decision if the Incoming Quality area
will verify the engineering change through incoming inspection.

VO Quality Office
S. Brownell
March 5, 2001

Iqprocess.doc

© 2003-2006 Ford Motor Company Version: June 2006 39


FPDS Participant Guide

40 Version: June 2006 © 2003-2006 Ford Motor Company


Participant Guide FPDS

© 2003-2006 Ford Motor Company Version: June 2006 41


Launch QOS - Ford Proprietary: LQOS 206 Page 1 of 4

Launch QOS
For FPDS Programs in the G region Ford Proprietary.
Element 206
Online copy is an OFFICIAL RECORD

Element: 206 Authors: Supplier Technical Assistance


Title: Management of High Impact Suppliers
QOS Group: Supplier
Milestone <SI> - <J1>
Span:

Purpose:

Utilize a standardized process to ensure High Impact production supplier''s manufacturing processes are
capable of producing parts that demonstrate capability to meet product specifications at required program
milestones.

This process is also to be applied to Specialty Vehicles. Specialty Vehicles are vehicles designed outside the
normal Base Model Product Development (PD) activities, such as but not limited to Exports, Alternative Fuel,
and SVT vehicles. These programs will require a comprehensive review of STA staffing resources prior to
engagement. If required, the Specialty Vehicle Program Team may be required to fund/support incremental
STA headcount to meet program deliverables.

Overview:

The process shall include:

Establish a partnership with High Impact suppliers identified by program PMT using input from STA
activities, Product Design engineering, historical supplier data and Segmentation Model.
Establishment of Ford Executive Champions (key personnel) assigned to HI Suppliers by the PST. (As
Required)
Conducting necessary Quality Stand downs for Supplier Operating Managers/CEO''s as necessary to
reinforce Program Status and expectations. (As Required)
Conducting Supplier Readiness Reviews at various program milestones that address issues such as
design, quality, capacity, tooling, packaging, training, facilities and material handling to support the
launch process.

STA and PD for Base Model and Speicialty Vehicle verify that High Impact suppliers are meeting the design and
engineering intent through the following actions:

Identifying/partnering with high risk suppliers - <SI>


Conducting Supplier Readiness Reviews to determine supplier capability and status - <PR> through <J1>
Reviewing supplier APQP status, identifying issues, and communicating issues to the program team -
<PR> through PSW
Ensuring Tier I suppliers have a robust quality plan for Tier II supply base including containment actions
during ramp up and Job #1.

STA verifies High Impact supplier processes have the potential to produce product meeting the PPAP
requirements through the following actions:

Conducting supplier Run @ Rate exercises at PPAP and Capacity Verification prior to Job #1 as proof of
supplier''s capability and capacity. 1PP through Job #1

Launch QOS Element 206 Ford Proprietary


© 2004, Ford Motor Company. All Rights Reserved. Printed copies are Uncontrolled.

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Launch QOS - Ford Proprietary: LQOS 206 Page 2 of 4

Launch QOS
For FPDS Programs in the G region Ford Proprietary.
Element 206
Online copy is an OFFICIAL RECORD

Ensuring supplier has extraordinary containment actions in place for Job 1 and during ramp up.

Deliverables:
Reg Seq Timing Description
G 1 SI SI High Impact Suppliers Identified for Base Model and Specialty Vehicle (Refer to APQP Checklist 2 -
Expectation 3).
G EXECUTOR: Supplier Technical Assistance
G 2 SC SC High Impact Suppliers Notified for Base Model and Specialty Vehicle.
G EXECUTOR: Supplier Technical Assistance
G 3 PH J1 High Impact Supplier APQP Status Reports for Base Model and Specialty Vehicle (Refer to APQP Checklist 2 -
Expectations 7,8,9)
G EXECUTOR: Supplier Technical Assistance
G 4 CP J1 High Impact Supplier Launch Readiness Review; summary with back up documentation (Refer to APQP
Checklist 5 - Expectation 4,5,6,7,8,9,10,11,12).
G EXECUTOR: Supplier Technical Assistance
G 5 LS J1 Capacity Verification at High Impact supplier facility for Base Model and Specialty Vehicle.
G EXECUTOR: Supplier Technical Assistance
G 6 SC SC Specialty Vehicle CNE and STA Director to determine expectations of STA's involvement.
G EXECUTOR: Specialty Vehicle Engineering
G EXECUTOR: Supplier Technical Assistance
G 7 PH PA Obtain funding agreement for incremental STA resources required for Specialty Vehicles.
G EXECUTOR: Specialty Vehicle Engineering
G EXECUTOR: Supplier Technical Assistance

Measurables:
Reg Seq Timing Description
G 1 SI SI High Impact Supplier List - All HI Suppliers Identified for Base Model and Specialty Vehicle (Yes / No).
G EXECUTOR: Supplier Technical Assistance
G 2 SC SC High Impact Supplier List - All HI Suppliers Notified for Base Model and Specialty Vehicle (Yes / No).
G EXECUTOR: Supplier Technical Assistance
G 3 PH J1 PSW High Impact Supplier APQP Status for Base Model and Specialty Vehicle rated either: (R/Y/G).
G EXECUTOR: Supplier Technical Assistance
G 4 CP J1 Launch Readiness Review Status for High Impact suppliers for Base Model and Specialty Vehicle rated
either: (R/Y/G).
G EXECUTOR: Supplier Technical Assistance
G 5 LS J1 High Impact Suppliers with Capacity Verification complete for Base Model and Specialty Vehicles - (%)
G EXECUTOR: Supplier Technical Assistance
G 6 SC SC Specialty Vehicle CNE and STA Director had determinee expectations of STA's involvement (Yes/No).
G EXECUTOR: Specialty Vehicle Engineering
G EXECUTOR: Supplier Technical Assistance
G 7 PH PA Funding agreement obtained for incremental STA resources required for Specialty Vehicles (Yes/No).
G EXECUTOR: Specialty Vehicle Engineering
G EXECUTOR: Supplier Technical Assistance

Contributors:
Purchasing
Vehicle Engineering
Assembly Plant Safety Engineer

Launch QOS Element 206 Ford Proprietary


© 2004, Ford Motor Company. All Rights Reserved. Printed copies are Uncontrolled.

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Launch QOS - Ford Proprietary: LQOS 206 Page 3 of 4

Launch QOS
For FPDS Programs in the G region Ford Proprietary.
Element 206
Online copy is an OFFICIAL RECORD

Assembly Plant Product Specialist


Assembly Plant Launch Manager
New Model Programs Launch Manager
Chief Nameplate Engineer
Design & Release Engineering
Supplier Technical Assistance
Product Creation Process Control
Specialty Vehicle Engineering

References:
Reg Description Title/URL
G - APQP Status http://www.ctis.ford.com/sup_tech/secure1/data/11484988.pdf?
C_1

Reporting
Process &
Selection of High
Impact Suppliers
- (STA
Procedure PSW-
009)
G - Notifying High http://www.eim1.ford.com/launchomatic/launch/view.jsp?chronicleId=09000c5180130401&docbase=edrdoc1
C_2

Impact Suppliers
- (STA Guideline
PSG-003)
G - Launch http://www.eim1.ford.com/launchomatic/launch/view.jsp?chronicleId=09000c5180130418&docbase=edrdoc1
C_3

Readiness
Reviews - (STA
Guideline PSG-
008)
G - Production Part http://www.ctis.ford.com/sup_tech/secure1/data/12058803.pdf
C_4

Approval
Process - (STA
Procedure PSP-
012)
G Capacity http://www.edrwas.ford.com/launchomatic/launch/view.jsp?chronicleId=09000c51801305be&docbase=edrdoc1
C_5

Verification -
(STA Work
Instruction PSW-
003)
G VOQO Specialty http://www.vo.ford.com/departments/quality/qos/Assembly_QOS/Specialty_Vehicle_Launch_Readiness_QOS.doc
C_9

Vehicle QOS

Scalability Application Matrix:

S-Scale P1 P2 P3 P4 P5 P6
S1 O O O - - -
S2 O O O O - -
S3 R R R R R R
S4 R R R R R R
S5 R R R R R R
S6 R R R R R R

(R - Required, C - Consider, O - Optional, X - Not allowed, - - Invalid Combination)

Launch QOS Element 206 Ford Proprietary


© 2004, Ford Motor Company. All Rights Reserved. Printed copies are Uncontrolled.

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Launch QOS - Ford Proprietary: LQOS 206 Page 4 of 4

Launch QOS
For FPDS Programs in the G region Ford Proprietary.
Element 206
Online copy is an OFFICIAL RECORD

Revision History:
Date Updated By Approved By Description
20-DEC-04 SKUSCH MMCCONVI CC# 1763 Revised to include Specialty Vehicles (skusch); also added Deliverables &
Measurables regarding STA's involvement in Specialty Vehicle programs (tmiller7).
01-SEP-04 TWINTER4 MMCCONVI CC# 1811 Update element Contributors for rev 8.
06-OCT-03 SSINGER1 RRAJAN CC# 1365 Narrowed scope to Management of High Impact Suppliers and corrected
Measureables and Deliverables. CC# 1450 Added "G" descriptor to element number to
denote Globalized element (KROCKWE2).
08-JAN-02 GBIGGAR JROTH Integration of APQP into LQOS per CC 1271. (Revised by GBIGGAR, RDAVID2,
MSCHLOSS).
12-MAR-01 MFUNNEL SKRUCHER Original Creation of the QOS Section

Launch QOS Element 206 Ford Proprietary


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Corporate Quality Development Center

Sourcing for Quality

Module 1: Sourcing for Quality Overview & Process

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

Welcome to Sourcing for Quality

Sourcing for Quality (SFQ) is a comprehensive quality


evaluation of a Supplier under consideration for new business
or resource of existing business.

The SFQ process…


– Ensures that Ford suppliers are of the highest quality

– By identifying suppliers with strong quality track records

The goal of this program is to provide you with a working


knowledge of the SFQ process and how it fits into the Global
Sourcing Stakeholders Meeting (GSSM) sourcing process.

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

1
SFQ Process Course Objectives

Upon completion of this learning program, you will be able to


– Communicate with Ford personnel on future Supplier candidates

– Utilize SFQ tools to complete process requirements correctly

– Review/update an Electronic Early Sourcing Work Plan (e-ESWP)

– Review and interpret an Open Sourcing Matrix

– Complete a Sourcing Approach Assessment

– Validate a Supplier Quality Self-Evaluation (SQSE)

– Complete a Supplier Sourcing Quality Evaluation (SSQE)

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

SFQ Process Course Objectives, continued

Upon completion of this learning program, you will be able to


– Complete an executive summary

– Apply the correct process for each type of sourcing strategy

– Identify the various Purchasing roles and responsibilities

– Recognize the tools & procedures used to make a sourcing decision

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

2
SFQ Process Course Overview

This course is composed of three modules


– SFQ Overview and Process

– SFQ Competitive Quote Process and Responsibilities

– SFQ Pre-Sourcing Process and Responsibilities

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

SFQ Process Overview

SFQ Process ensures quality as a prerequisite


– To awarding new business

– To re-sourcing existing business

Links the sourcing process to Supplier performance history…

…And to program risk assessment in two primary categories:


– Company/site quality

– Product quality

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

3
The Cost of Poor Quality

Poor quality results in lost profit due to:


– Recalls

– Warranty issues

– Stop shipments

– And other quality issues


Improving quality
is a cost-saving
opportunity!

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

Evolution of the SFQ Process

Enhancements to the SFQ Process have been made over


time. The process will continue to evolve in the future.

Current Enhanced e-Solution


Sourcing for Sourcing for Sourcing for
C1 Process
Quality Quality Quality
Process Process Process

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

4
Lessons Learned – What Worked?

What Needed Improvement Continuous Improvement

New Model C1 Process Current SFQ Process Enhanced SFQ Process


Site level evaluations were not Evaluations completed by site Candidate’s site evaluations are
always achieved and candidates compared quantitatively stored
relative to each other

Suppliers had no input Suppliers provided input Supplier’s site evaluation input is
through self-evaluation/ site validated by STA responsible
assessments based on clear engineer
quality criteria

Quality evaluation criteria were Final quality evaluations and Executive summary and
unclear, and there was poor linkage conclusions provided quantitative conclusions with a
between detailed evaluations and consensed recommended
final conclusions supplier candidate provided

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

Where the Process is Going

The sourcing process will ultimately become an e-Solution,


making quality data more accessible.

More accessible data will improve:


– Sourcing decisions

– Analysis of data & quality tendencies of the commodity supply base

– Leverage of existing data for new business solutions

– Application of data to future programs

– Reduce Engineer workload

The data will be globally accessible within Ford Brands

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

5
What these Enhancements will Accomplish

Site assessments will be more


comprehensive, and expanded to include
Supplier technology & program risk

Sourcing will be more data-driven, utilizing


a defined and weighted scoring process

The sourcing process will be more user-friendly

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

Benefits of Enhanced Sourcing for Quality

STA and Buyers will have


improved data sharing
Customers will see improved
quality and cost

Strategic Commodity Teams


and TVM will have consistent
supply base evaluations
Suppliers will have a clear
across vehicle lines
understanding of Ford’s
quality expectations

Commodity Global Council


Teams will have global
Supplier quality review
Assembly plants will have a package
stronger supply base

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

6
SFQ Process Overview

The SFQ Process ensures quality as a prerequisite to awarding new


business and resourcing existing business. It links the sourcing process to
Supplier performance history and risk assessment in two categories:

Company/Site Quality Product Quality

General business indicators Customer satisfaction data

Q1 Mfg Site Assessment Quality

Mfg risk to program Performance

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

Overview of the FPDS/GSSM Timeline

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

7
How the SFQ Process Fits In

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

How the SFQ Process Fits In

Suppliers are evaluated for


quality at this point on the
FPDS/GSSM timeline.

This period is approximately 15 weeks in length.

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

8
The Enhanced SFQ Process Timeline

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

The Enhanced SFQ Process Timeline

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

9
The Enhanced SFQ Process Timeline

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

The Enhanced SFQ Process Timeline

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

10
Corporate Quality Development Center

Sourcing for Quality

Module 2: Competitive Quote Roles, Tools, & Responsibilities

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

Module Overview & Objectives

This module will discuss the roles, responsibilities, tools, and


templates used to facilitate the Sourcing for Quality Process.

In this module, you will learn to:


– Employ tools and procedures for making a Competitive Quote sourcing
decision

– Review, update, and interpret an e-ESWP & Open Sourcing Matrix

– Complete a Sourcing Approach Assessment and validate an SQSE

– Complete a Supplier Sourcing Quality Evaluation (SSQE) and Executive


Summary

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

11
Print Support Documentation

This module will be easier to


follow if you print the Process
Workflow document Please print the

The course will pause when you Competitive Quote Process

click the link below Workflow at this time.

When you’re ready, click the Play


button beneath the video to
continue

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

The Competitive Quote Process Workflow

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

12
The Competitive Quote Process Workflow

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

The Competitive Quote Process Workflow

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

13
The Competitive Quote Process Workflow

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

Relevant Tools and Documentation

Other relevant tools and documentation:

•Open Sourcing Matrix (OSM)


•Electronic Early Sourcing Work Plan (e-ESWP)
•Supplier Improvement Metrics (SIM) Data
•Sourcing Approach Assessment (SAA)
•Supplier Quality Self-Evaluation (SQSE)
•Q1 Manufacturing Site Assessment (MSA)
•Sourcing for Quality Guidelines
•Supplier Sourcing Quality Evaluation & Executive Summary (SSQE)
•Sourcing Consensus Documentation
•GSSM Checklist
•Global Sourcing Website

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

14
How Tools and Documentation are Linked

Tools and documentation build upon and feed into each other

Ultimately leading to the Sourcing Consensus Document

Tool

Tool Tool

Tool Tool

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

The Sourcing Consensus Document

The Sourcing Consensus Documentation (or GSSM Binder) is


compiled by the Buyer and made available to purchasing
management

The SSQE makes up the Quality Assessment section

In addition to Quality Assessment, the Binder contains:


– Program background information

– Commercial/technical assessments

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

15
Sourcing Consensus Document (GSSM Binder) Structure
GSSM Binder Structure 1.

Quotation Summary
Sourcing Recommendation and Approvals
Summary of items 2-5

2. 3. 4. 5.
Program Background Quality Commercial Assessment Technical
Timing, volume, supply Assessment Life cycle, NPV, final offer Assessment
base impact SSQE summary, explanation of variances

Final Offer Final Offer Final Offer


Supplier 1 Supplier 2 Supplier 3
Quality, Quality, Quality,
commercial, commercial, commercial,
Quotation Process: Iterative

technical technical technical

Questions and Answers


Iterative Process

Initial Quotation Initial Quotation Initial Quotation


Supplier 1 Supplier 2 Supplier 3
Quality, Quality, Quality,
commercial, commercial, commercial,
technical technical technical

Commodity-Specific Request for Quotation


Program background, SSQE, Commercial requirements including the Commercial Principles, technical requirements

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

Competitive Quote Step 1: e-ESWP

1.
1.
Initiate
Initiate e-ESWP
e-ESWP and
and
update
update for
for GSSM
GSSM

Purchasing Project Manager (PJM) initiates e-ESWP

Updates GSSM per brand/vehicle at Kickoff (<KO>)

e-ESWP is used to initiate a Competitive Quotation

Click button below to visit the e-ESWP site


– (specific access may be required, contact your supervisor)

Site includes a comprehensive tutorial

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

16
Competitive Quote Step 2: Open Sourcing Matrix

2.
2.
Initiate
Initiate and
and maintain
maintain
OSM
OSM

Initiated and maintained by PJM

Open Sourcing Matrices are Excel spreadsheets generated or


downloaded from the e-ESWP

Data from the e-ESWP feeds into the OSM

The OSM lists components and Suppliers under consideration

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

Competitive Quote Step 3: Sourcing Strategy

3.
3.
Define
Define Sourcing
Sourcing Strategy
Strategy
in
in e-ESWP
e-ESWP (OSM)
(OSM)

Buyer defines sourcing strategy in OSM


– Competitive Quote

• Market Test (MT)

• Design Competition (DC)

• Online Quote (OLQ)

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

17
Competitive Quote Step 4: STA Review

4.
4.
Assigned
Assigned STA
STA Person
Person
review
review OSMs
OSMs

Review OSMs to forecast upcoming vehicle sourcing decisions


requiring sourcing for quality evaluations

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

Competitive Quote Step 5: OSM Review

5.
5.
Review
Review OSM
OSM perper SAA
SAA
criteria
criteria

Review OSM Candidate List

Consider criteria listed in Sourcing Approach Assessment (i.e.,


Q1, Warranty, Launch QRs, etc.)

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

18
Competitive Quote Step 6a/b: Candidates

6b.
6b.
Agree
Agree on
on candidate(s)
candidate(s)
with
with STA
STA and
and update
update
OSM
OSM

6a.
6a.
Agree
Agree on
on Supplier
Supplier
candidate(s)
candidate(s) with
with Buyer
Buyer

STA and Buyer agree on Supplier candidate(s) based on assessment


criteria from SAA
– e.g., Q1 revoke, to eliminate unsatisfactory quality Suppliers from OSM

Buyer updates OSM if the list of Supplier candidate(s) has changed

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

Competitive Quote Step 7: SAA/OSM Approval

7.
7.
Review
Review and
and approve
approve
SAA/OSM
SAA/OSM

STA Commodity Manager and Purchasing


Commodity Manager (regional) review and
approve OSM

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

19
Competitive Quote Step 8: GSSM Step 1

8.
8.
GSSM
GSSM Step
Step 11
Review
Review and
and approve
approve
OSM
OSM

Buyer and Purchasing Director review and obtain approval from


GSSM in Step 1

Buyer reviews and obtains sourcing strategy approval in the GSSM


Step 1 meeting

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

Competitive Quote Step 9: Initiate Quotes

9.
9.
Initiate
Initiate Competitive
Competitive
Quote
Quote Package
Package to
to OSM
OSM
Supplier
Supplier candidate(s).
candidate(s).
Include
Include SQSE/MSA
SQSE/MSA

Buyer initiates Competitive Quote Package

Including blank SQSE/MSA forms to be sent to OSM Supplier candidate(s)

Buyer must set a due date

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

20
Competitive Quote Step 10a: Prepare SQSE/MSA

10a.
10a.
Prepare
Prepare SQSE/MSA
SQSE/MSA

Upon receipt of package, Supplier will prepare and complete SQSE/MSA

If MSA already exists and is…


– Within 6 months for Segment 1/2 Suppliers or 12 months for 3/4 Suppliers

…Supplier will attach current copy to Buyer

MSA includes action plan (as appropriate)

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

Competitive Quote Step 10b/c: Site Strategies

10b/c.
10b/c.
Determine
Determine Site
Site
Assessment
Assessment Strategy
Strategy

Buyer and STA discuss necessary site visits

Schedule joint visits as needed

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

21
Competitive Quote Step 11a/b: Receive/Submit

11b.
11b.
Receive
Receive SQSE/MSA
SQSE/MSA

11a.
11a.
Submit
Submit SQSE/MSA
SQSE/MSA

Supplier submits SQSE/MSA as part of the competitive


quote package/ Buyer verifies receipt

MSA includes action plan (as appropriate)

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

Competitive Quote Step 12: Supplier Selection

12.
12.
Select
Select Supplier
Supplier from
from
Competitive
Competitive Quote
Quote

Buyer selects Supplier from Competitive Quote

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

22
Competitive Quote Step 13: SQSE/MSA to STA

13.
13.
Send
Send selected
selected Supplier
Supplier
SQSE/MSA
SQSE/MSA to to STA
STA

Buyer sends selected Supplier SQSE/MSA to STA

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

Competitive Quote Step 14: Schedule GSSM

14.
14.
Send
Send selected
selected Supplier
Supplier
SQSE/MSA
SQSE/MSA to to STA
STA

Buyer/PJM schedules GSSM Step 1 date


– In 10 business days before Buyer filing for Q1 Suppliers

– In 20 business days before Buyer filing for Non-Q1 suppliers

See Appendix A for details

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

23
Competitive Quote Step 15a: Receive & Validate

15a.
15a.
Receive
Receive and
and validate
validate
selected
selected Supplier
Supplier

STA receives selected supplier MSA/SQSE from Buyer and validates SQSE/MSA

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

Competitive Quote Step 15b: On-site Assessment

15b.
15b.
On-site
On-site Assessment
Assessment and
and
Action
Action Plan
Plan

STA conducts onsite MSA as required (Local STA Practice)

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

24
Competitive Quote Step 16: Generate SSQE

16.
16.
Generate
Generate SSQE
SSQE

STA generates SSQE by inputting validated data from SQSE/MSA

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

Competitive Quote Step 17a/b: Agreement

17b.
17b.
Agree
Agree on
on selected
selected
Supplier
Supplier

17a.
17a.
Obtain
Obtain agreement
agreement from
from
Buyer
Buyer

STA and Buyer review SSQE and agree on selected


competitive quote Supplier

If an agreement is not reached, return to Step 12

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

25
Competitive Quote Step 18a/b/c/d: Cadence Reviews

18a/b.
18a/b.
Review
Review agreement
agreement in
in pre-
pre-
GSSM
GSSM Meeting
Meeting

18c.
18c.
Review
Review in
in pre-GSSM
pre-GSSM

18d.
18d.
Concur
Concur the
the STA
STA decision
decision

Buyer and STA review agreement in Pre-GSSM meetings

STA/Purchasing pre-GSSM Cadence Reviews (local STA practice)

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

Competitive Quote Step 19: Proforma Filed

19.
19.
GSSM
GSSM Sourcing
Sourcing
Consensus
Consensus Proforma
Proforma
filed
filed

Buyer files GSSM Sourcing Consensus Proforma (including SSQE)

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

26
Competitive Quote Step 20: Pre-GSSM Review

20.
20.
Review
Review in
in pre-GSSM
pre-GSSM

STA Executive Director Pre-GSSM meeting


(STA Executive Pre-GSSM Cadence Review)

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

Competitive Quote Step 21: GSSM Step 2

21.
21.
GSSM
GSSM Step
Step 22
Obtain
Obtain approval
approval

Buyer obtains sourcing decision approval during GSSM Step 2

Refer to GSSM web page for all proprietary requirements for GSSM

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

27
Competitive Quote Step 22a/b: Sign-off

22a/b.
Sign-off Sourcing
Agreement with SSQE
work plan

CBG/Central Buyer and Supplier sign-off Sourcing Agreement that includes


any quality action plans in the SSQE

STA to use Q1 process to verify Supplier’s implementation plan

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

In Summary

The SFQ Process


– Is a thorough quality evaluation of a Supplier by Purchasing

– This evaluation is conducted when awarding new business or


resourcing existing business

The qualitative SSQE analysis document


– Works as a communication tool between STA and Buyers

– Assists in building consensus on high-quality Supplier candidates

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

28
Corporate Quality Development Center

Sourcing for Quality

Module 3: Pre-Source Roles, Tools, & Responsibilities

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

Module Overview & Objectives

In the previous module, we examined the workflow process for


competitive quote activities. This module completes the workflow
discussion by introducing you to the pre-source process.

In this module, you will learn to:


– Employ tools and procedures for making a pre-sourcing decision
– Address late notification in the sourcing decision
– Review, update, and interpret an e-ESWP & Open Sourcing Matrix
– Complete a Sourcing Approach Assessment
– Complete/validate a Supplier Sourcing Quality Evaluation (SSQE)
– Write an Executive Summary

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

29
The Pre-Source Process Workflow

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

The Pre-Source Process Workflow

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

30
The Pre-Source Process Workflow

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

The Pre-Source Process Workflow

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

31
General Roles and Responsibilities

Purchasing Project Manager (PJM)

Commodity Buyer

STA Engineer

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

Pre-Source Step 1: e-ESWP

1.
1.
Initiate
Initiate e-ESWP
e-ESWP and
and
update
update for
for GSSM
GSSM

Purchasing Project Manager (PJM) initiates e-ESWP

Updates GSSM per brand/vehicle at Kickoff (<KO>)

Click button below to visit the e-ESWP site


– (specific access may be required, contact your supervisor)

Site includes a comprehensive tutorial

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

32
Pre-Source Step 2: Open Sourcing Matrix

2.
2.
Initiate
Initiate and
and maintain
maintain
OSM
OSM

Initiated and maintained by PJM


Open Sourcing Matrices are Excel spreadsheets generated or
downloaded from the e-ESWP
Data from the e-ESWP feeds into the OSM
The OSM lists components and Suppliers under consideration,
along with other relevant data

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

STA Interaction with the OSM

The STA Engineer looks at the following information in the


Open Sourcing Matrix:
– Sourcing Approach

– Suppliers Under Consideration

– Manufacturing Code

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

33
Pre-Source Step 3: Define Sourcing Strategy

3.
3.
Define
Define Sourcing
Sourcing Strategy
Strategy
in
in e-ESWP
e-ESWP (OSM)
(OSM)

Buyer defines sourcing strategy in OSM as Pre-Sourced with STA input

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

Pre-Source Step 4: STA Review

4.
4.
Assigned
Assigned STA
STA Person
Person
review
review OSMs
OSMs

Review OSMs to forecast upcoming vehicle pre-sourcing


decisions requiring sourcing for quality evaluations

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

34
Pre-Source Step 5: Send Documents to Suppliers

5.
5.
Send
Send out
out SQSE/MSA
SQSE/MSA to to
Pre-source
Pre-source Suppliers
Suppliers

Buyer sends blank SQSE/MSA forms to Pre-sourced Supplier

Buyer provides expected due date

MSA includes action plan (as appropriate)

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

Pre-Source Step 6a: Prepare SQSE/MSA

6a.
6a.
Prepare
Prepare SQSE/MSA
SQSE/MSA

Supplier to prepare and complete the SQSE/MSA upon receipt

If MSA already exists and is…


– Within 6 months for Segment 1/2 Suppliers or 12 months for 3/4 Suppliers

…Supplier will attach current copy to Buyer

MSA includes action plan (as appropriate)

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

35
Pre-Source Step 6b & 6c: Site Assessment

6b/c.
6b/c.
Determine
Determine Site
Site
Assessment
Assessment Strategy
Strategy

Buyer and STA discuss necessary site visits

Schedule joint visits as needed

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

Pre-Source Step 7a: Submit SQSE/MSA

7a.
7a.
Submit
Submit SQSE/MSA
SQSE/MSA

Supplier submits SQSE/MSA to Buyer when completed

MSA includes action plan (as appropriate)

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

36
Pre-Source Step 7b: SQSE/MSA Go to STA

7b.
7b.
Receive
Receive SQSE/MSA
SQSE/MSA and
and
send
send to
to STA
STA

Buyer records SQSE/MSA submission and sends a copy of both to


STA for validation (Local STA Practice)

MSA includes action plan (as appropriate)

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

Pre-Source Step 8: GSSM Step 1 Meeting

8.
8.
Schedule
Schedule GSSM
GSSM Step
Step 11
Meeting
Meeting

Buyer/PJM schedule GSSM Step 1 in 2 weeks (for Q1 Suppliers)


– 10 business days before Buyer files pre-source to GSSM Agenda

Buyer/PJM schedule GSSM Step 1 in 4 weeks (non-Q1 Suppliers)


– 20 business days before Buyer files pre-source to GSSM Agenda

See Appendix A for details

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

37
Pre-Source Step 9a: Receive SQSE/MSA

9a.
9a.
Receive
Receive and
and validate
validate
SQSE/MSA
SQSE/MSA

STA receives and validates SQSE/MSA

MSA includes action plan (as appropriate)

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

Pre-Source Step 9b: Site Assessment

9b.
9b.
On-site
On-site Assessment
Assessment and
and
Action
Action Plan
Plan

STA conducts On-site Assessment as required (local STA practice)

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

38
Pre-Source Step 10: Generate SSQE

10.
10.
Generate
Generate SSQE
SSQE

STA generates SSQE by inputting the validated data from SQSE and MSA

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

Pre-Source Step 11a/b: Agree on Supplier

11b.
11b.
Agree
Agree on
on Pre-source
Pre-source
11a. selected
selected Supplier
Supplier
Obtain Agreement from
Buyer

STA and Buyer agree on Pre-Source selected Supplier

If an agreement is not reached, return to Step 3

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

39
Pre-Source Step 12a/b/c/d: Agreement Review

12a.
Review agreement in pre-
GSSM meeting with STA

12b.
Review agreement in pre-
Buyer and STA review agreement in GSSM meeting with
pre-GSSM meeting Buyer

STA/Purchasing pre-GSSM Cadence 12c.


Reviews Review in pre-GSSM

See Appendix A for details


12d.
Concur STA decision

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

Pre-Source Step 13: File Pre-Source

13.
13.
Buyer
Buyer confirms
confirms (files)
(files)
Pre-source
Pre-source to
to GSSM
GSSM
agenda
agenda

Buyer confirms Pre-source to GSSM agenda

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

40
Pre-Source Step 14: Pre-GSSM Review

14.
14.
Review
Review in
in pre-GSSM
pre-GSSM
STA Executive Director pre-GSSM Meeting

STA Executive pre-GSSM Cadence Review

See Appendix A for details

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

Pre-Source Step 15: Approval

15.
15.
GSSM
GSSM STEP
STEP 11
Obtain
Obtain Approval
Approval

Buyer obtains sourcing decision approval during GSSM Step 1 with


Purchasing Directors

Refer to GSSM Website for process details

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

41
Pre-Source Step 16a/b: Sign-off

16a/b.
Sign-off Sourcing
Agreement with SSQE
work plan

CBG/Central Buyer and Supplier sign-ofs Sourcing Agreement that include


any quality action plan in the SSQE

Use Q1 process for Suppliers implementation plan (two step assignment)

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

In Summary

The SFQ Process


– Is a thorough quality evaluation of a Supplier by Purchasing

– This evaluation is conducted when awarding new business or


resourcing existing business

The qualitative SSQE analysis document


– Works as a communication tool between STA and Buyers

– Assists in building consensus on high-quality Supplier candidates

Copyright © 2000-2004 Ford Motor Company. All rights reserved.

42
Road to Enhanced Sourcing for Quality



 !"


#



















%"

$ '
$

#&
 











(
) "
*!

+
$

%
,
,
What Worked? Continuous Improvements
• Improved quality emphasis at the sourcing decision Emphasizes quality Prioritizes quality at the sourcing decision
• Highlighted quality issues ahead of the sourcing Cadence review of quality issues with management Quantitative rating of quality issues reviewed cross-
decision functionally
• Proactive participation by STA in the sourcing process STA quality evaluations reviewed prior to <SI> STA to follow GSSM Forecast/Cycle Plan and e-
(Strategic Intent) ESWP to plan quality evaluations
• Open dialogue between the Buyers and STA Open dialogue structured around GSSM cadence Open dialogue begins earlier in the e-ESWP/PAT
reviews work plan stage reviewing new, modified, and
carryover commodities

What Needed Improvement? Continuous Improvements


• Site level evaluations were not always achieved Evaluations completed by site and candidates Candidates site evaluations are quantitatively scored
compared relative to each other
• Suppliers had no input Suppliers provided input through self-evaluation/site Suppliers self-evaluation input is validated by STA
assessments based on clear quality criteria responsible Site Engineer
• Quality evaluation criteria was not clear, and there Final quality evaluations and conclusions provided Executive summary and quantitative conclusions
was poor linkage between detailed evaluations and with a consensed recommended Supplier candidate
final conclusions provided
• Quality evaluations did not align with Q1 2002 Quality evaluations aligned with Q1 2002 Quality evaluations aligned with Q1 2002
requirements requirements requirements
• Not uniformly applied across commodities and global Not consistently applied across global brands Globally developed and consistently applied across
brands global brands
• Evaluations resided with individual Engineers – not Evaluation is shared but resides with an individual Shared evaluations will be archived in a global EKB
shared Engineer
• STA Engineers and Buyers were not adequately STA Engineers not uniformly trained STA/Commodity Buyers will be trained globally
trained on how to complete evaluations
Open Sourcing Matrix
Sourcing data for D2C and D2E are denoted when the change in platform affected the sourcing approach.

Legacy Sourcing
Sourcing Consensus (Incumbent Supplier) Sourcing Approach Expected Benefits from Sourcing Strategy and Proposed Supplier(s)
Estimated (If appropriate)
Delegation
Estimated Cumulative Required GSSM Review Date of Buyer and Manager Name Desired Sourcing Suppliers Under Consideration
of Purchasing
Subsystem / Component Annual Life Cycle Supplier Date of GSSM Who Will be Preparing the Pattern and/or Note if supplier to: T = Toyota; H = Honda Design Competition, Market Test, Pre-Source or
Authority S197 D/EW98 Commodity
Description Value (USD (6 years) "On-Board" Sourcing Consensus Sourcing Recommendation Design and/or N = New Supplier On-Line Quote
Satisfied Director
mils) Value (USD Date Approach Review Package Commonality and Mfg. Site Codes
(Date)
mils)

Sourcing Approach to be Reviewed on 5/2/02

Powertrain
(D2M) D2M - rationale for pre-sourcing the t/case is consistent with previous review at GSSM for
D2C. Package constraints require a grea-driven case. Supplier A has the most experience in gear-
driven cases, and is the present supplier of the gear driven case on E320/E430. Total integration of
the AWD system. Ford and Supplier A will jointly determine the suppliers for components not
5/2/02 D2M manufactured by Supplier A. Chassis and PTO purchasing will jointly ensure that suppliers are
(D2M) Supplier A (D2M) Presource with a Target
Transfer Case $XX.XX $XX.XX 5/21/2002 10/4/01(A) NR J. Doe/X. Brown New NA NA common between the RWD and AWD driveshafts and halfshafts to the greatest extent possible. Y. Roth
(DRE) Supplier A (D2E) Presource with a Target
D2E AWD
(D2E)Total integration of the AWD system. Ford and Supplier A will jointly determine the suppliers
for components not manufactured by Supplier A. Chassis and PTO purchasing will jointly ensure
that suppliers are common between the RWD and AWD driveshafts and halfshafts to the greatest
extent possible.

Chassis
Supplier B
8/1/02 retained as
(12/11/01) 5/2/02/02 D2M source (D2M) Supplier B (D2M)Presource all AWD/RWD F236 and D365 (D2M) Leverage Legacy Sourcing with Supplier B
(07/20/01) 10/4/01D2E (Supplier B (D2C)Supplier C, Supplier D, Supplier E, rear axles to Supplier B. (D2E) BIC light weight axle design, gear mfg, & economies of scale.
Rear Drive IRS Axle $XX.XX $XX.XX NR Y. Green /Z. Jones Supplier B Z. Stevens
(06/18/01) (02/01/01)(A) met S197 Supplier F. Supplier B does not have BIC (D2C)Design competition if S197 Supplier B. (D2C) BIC light weight axle design, gear mfg, & economies of scale if common with S197. Supplier
(05/22/01) D2C Last Right of light wgt. Al. product to offer. Otherwise c/o S197. B on Q1 probation as of 1/10/01.
(03/16/01) Refusal
request)

(D2M ) Supplier E, Supplier G, Supplier H,


Front Driveshaft $XX.XX $XX.XX 8/1/2002 5/2/02 D2M TBD X. Smith/Z. Jones New NA NA (D2M) Design Competition (D2M) BIC Imbalance/Runout/Articulation torque with minimized weight and cost Z. Stevens
Supplier B

(D2M ) Supplier I(H), Supplier J(N), Supplier


Front Drive Halfshaft $XX.XX $XX.XX 8/1/2002 5/2/02 D2M TBD X. Smith/Z. Jones New NA NA (D2M) Design Competition (D2M) Minimize weight and cost of shudderless CVJ designs. Z. Stevens
G(T, H), Supplier K(N)

8/1/02
(10/16/01) 5/2/02 D2M (D2M) Presource to Supplier I, LS legacy source (D2M) Strong supplier experience on LS program. Supplier has a strong history of quality and
TBD. Market (D2M) Supplier I(H)
(07/20/01) 10/4/01(A) D2E (D2E) Co-manage design competiton/source reliability. Carryover designs.
Rear Drive Halfshafts $XX.XX $XX.XX NR X. Smith/Z. Jones Test in NTN (D2E) Supplier G (T), Supplier I (H), Z. Stevens
(06/18/01) (02/01/01)(A) selection process with Supplier A. Goal is to (D2E)BIC Constant Velocity joint designs. Minimize weight and cost, and improve NVH
progress. Supplier B, Supplier J (N)
(05/22/01) D2C commonize AWD/RWD driveshaft sourcing. characteristics (minimize joint lash and maximize stiffness).
(03/16/01)
8/1/02
(10/16/01) 5/2/02 D2M (D2M) Presource to Supplier B, LS legacy source
(D2M) Supplier B (D2M) Supplier experience on LS program. Driveshaft has low imbalance and runout.
(07/20/01) 10/4/01(A) D2E (D2E) Co-manage design competiton/source
Rear Driveshaft $XX.XX $XX.XX NR X. Smith/Z. Jones Supplier B Supplier B (D2E)Supplier B, SupplierE, Supplier H, (D2E)BIC cost, weight and performance (lowest driveshaft imbalance and runout). Supplier B on Z. Stevens
(06/18/01) (02/01/01)(A) selection process with Supplier A. Goal is to
Supplier G, Supplier L Q1 probation as of 1/10/01.
(05/22/01) D2C commonize AWD/RWD driveshaft sourcing.
(03/16/01)

8/1/02
(D2M) Sta Bar assy pre-sourced to Supplier
(12/11/01) 5/2/02 D2M (D2M) Presource to Supplier M with c/o LS cost
M with Supplier B to provide the bar
Front Stabilizer Bar(incl. insul) $XX.XX $XX.XX (08/30/01) 02/08/01(A) TBD Y. Adams/X. Howard Supplier B Supplier B target Cost leverage Z. Stevens
(D2C) Supplier N, Supplier O, Supplier B,
(06/19/01) D2C (D2C)Market Test
Supplier P
(04/12/01)

Interior
5/21/02 (D2M) Supplier B (D2M) Program management will not pursue resourcing as it poses significant risk to program
5/2/02 D2M (D2M) Legacy
(10/16/01) NR (D2M) (D2C)Supplier J(N), Supplier Q(N), Supplier (D2M) Presource to Supplier B, LS legacy source timing. (Core Purchasing recommended.) D310/D341 learnings were used to establish D2M
3/29/01(A) source (D2C)
IP/Cockpit $XX.XX $XX.XX (07/20/01) 10/4/01 (A) Z. Arnold/X. Taylor Supplier B Supplier B R, Supplier T, Supplier T,Supplier U, per separation agreement craftsmanship/pricing targets and will be leveraged to close approximate $XX.XX gap to target Y. Allen
D2C Establishh new
(06/18/01) D2E Supplier V (D2C)Design Competition (based on Supplier B F236 premium content proposal.)
(02/01/01) Lincoln source
(05/22/01) (D2C)Better cost and craftsmanship performance

c:\crowlan1\Open Sourcing_F236/D365_GSSM_050202_All Date Created: 1/3/2001


.xls 1 of 3 Date Updated: 6/22/2006
Open Sourcing Matrix
Sourcing data for D2C and D2E are denoted when the change in platform affected the sourcing approach.

Legacy Sourcing
Sourcing Consensus (Incumbent Supplier) Sourcing Approach Expected Benefits from Sourcing Strategy and Proposed Supplier(s)
Estimated (If appropriate)
Delegation
Estimated Cumulative Required GSSM Review Date of Buyer and Manager Name Desired Sourcing Suppliers Under Consideration
of Purchasing
Subsystem / Component Annual Life Cycle Supplier Date of GSSM Who Will be Preparing the Pattern and/or Note if supplier to: T = Toyota; H = Honda Design Competition, Market Test, Pre-Source or
Authority S197 D/EW98 Commodity
Description Value (USD (6 years) "On-Board" Sourcing Consensus Sourcing Recommendation Design and/or N = New Supplier On-Line Quote
Satisfied Director
mils) Value (USD Date Approach Review Package Commonality and Mfg. Site Codes
(Date)
mils)

c:\crowlan1\Open Sourcing_F236/D365_GSSM_050202_All Date Created: 1/3/2001


.xls 2 of 3 Date Updated: 6/22/2006
Open Sourcing Matrix
Sourcing data for D2C and D2E are denoted when the change in platform affected the sourcing approach.

Legacy Sourcing
Sourcing Consensus (Incumbent Supplier) Sourcing Approach Expected Benefits from Sourcing Strategy and Proposed Supplier(s)
Estimated (If appropriate)
Delegation
Estimated Cumulative Required GSSM Review Date of Buyer and Manager Name Desired Sourcing Suppliers Under Consideration
of Purchasing
Subsystem / Component Annual Life Cycle Supplier Date of GSSM Who Will be Preparing the Pattern and/or Note if supplier to: T = Toyota; H = Honda Design Competition, Market Test, Pre-Source or
Authority S197 D/EW98 Commodity
Description Value (USD (6 years) "On-Board" Sourcing Consensus Sourcing Recommendation Design and/or N = New Supplier On-Line Quote
Satisfied Director
mils) Value (USD Date Approach Review Package Commonality and Mfg. Site Codes
(Date)
mils)

c:\crowlan1\Open Sourcing_F236/D365_GSSM_050202_All Date Created: 1/3/2001


.xls 3 of 3 Date Updated: 6/22/2006
Sourcing Consensus Documentation - Overview
The following pictorial represents the contents of the GSSM Sourcing Consensus "binder". Quotation Summary
materials should be provided to all GSSM participants via e-mail. This workbook contains the pro formas for all areas
but the Technical Summary.

1
Sourcing
Recommendation
and Approvals
Quotation Summary

Summary of items 2
through 5

2 3 4 5
Program Quality Commerical Assessment Technical
Background Assessment life cycle, NPV, final offer Assessment
timing, volume, SSQE summary, explanation of
supply base impact variances

Final Offer Final Offer Final Offer


Supplier 1 Supplier 2 Supplier 3
Quality Quality Quality
Commercial Commercial Commercial
Quotation Process: Iterative

Technical Technical Technical

Questions and Answers


Iterative Process

Initial Quotation Initial Quotation Initial Quotation


Supplier 1 Supplier 2 Supplier 3
Quality Quality Quality
Commercial Commercial Commercial
Technical Technical Technical

Commodity Specific Request for Quotation


Program Background, SSQE, Commercial Requirements including the Commerical
Principles, Technical Requirements

Notes:
1) A Technical Assessment Pro forma is not available
2) This pictorial intends to depict that each of the suppliers considered in the original inquiry would submit a
final offer. Selective re-bidding (defined as exclusion of any of the suppliers included in the original inquiry)
requires one higher level of approval authority than normally required but not higher than the head of the
Purchasing activity as per the Purchasing Authorities Guide - Purchase Agreements and Sales Agreements.

03 consensus_proforma_sample.xls Created: 02/12/02


Overview Updated: 04/03/02
Sourcing Consensus Documentation
Table of Contents

Tab 1 Sourcing Recommendation and Approvals

Tab 2 Program Background

Tab 3 Quality Assessment

Tab 4 Commercial Assessment

Tab 5 Technical Assessment

Tab 6 Supplier, Signed Final Quotation Offers

Tab 7 Commodity Specific Request for Quotation


For each area: Quality, Commercial and Technical

03 consensus_proforma_sample.xls
Binder Table of Contents Created: 04/03/02
Sourcing Consensus Documentation
Recommendation and Approvals
(Supplier Name ) is the recommended supplier for the (commodity name ) on the (program or platform code ).
Following is a summary of the data submitted in support of this recommendation for approval.
Program Background

Brief program summary and expected supply base impact as a result of this recommendation.

Quality Assessment Summary

Enter recommended supplier's quality performance, both historical and


what is anticipated for this project, from the SSQE.

Commercial Assessment Summary

Summary of the final offer summary and life cycle costs.

Technical Assessment Summary


In addition to a summary of the attached technical assessment, Identify whether or not a Statement of Work
(SOW) has been developed. If the SOW has not been developed indicate when this will occur and the status.

APPROVALS (Millions of US Dollars) Per the Purchasing Authorities Guide


Global Council Review and Approval Date:
GSSM Approval Date (if required):
Insert names associated with this sourcing decision directly above their titles in the spaces below.

_________________ __________________ __________________ __________________

Buyer Purchasing Specialist Commodity Supervisor Purchasing Manager


($0.5 million) ($1 million) ($3 million) ($6 million)

_____________________ _________________ _____________________ _____________________

Purchasing Manager (PSR)/ Director/ Executive Director/VP European Vice President, Global
PTO Director PTO Global Director Purchasing Operations/Brand Chairman Purchasing (Unlimited)
($30 million) ($60 million) & Chief Executive (Unlimited)

Other Acknowledgement Signatures

_________________ __________________ __________________ _____________________


STA Director

03 consensus_proforma_sample.xls, Created: 02/16/02


Recommendation & Approvals Tab 1 Updated: 04/15/02
Sourcing Consensus Documentation
Program Background
Quotation and Program Data
Program or Platform Name: Sourcing Required Date
Commodity Name: Quote Date
Part or System Description: Response Due Date
Part Number(s): (Identify if part is a Safety part) Final Offer Date (signed)
Is Sourcing for a Platform, Brand
or Powertrain architecture?
Design or Surrogate Level (if available):
Statement of Work Level Provided (e.g., surrogate, generic, complete)
Full Service Supplier Required?(Yes or No)
Sourcing Approach (Design Competition, Market Test, OLQ):
Sourcing Team
Lead Buyer _____________ PMT Leader MP&L: _______________________
CBG Affected
CBG Buyer
Program STA Engineer

Sourcing Recommendation * Data marked with an asterisk in the section below is to be obtained from the Purchasing Program Manager.
Timing /Quote Assumptions
Program 1 Program 2 Program 3 Program 4 … Pgm. N Total
Design & Development Supplier
Location of Engineering Center
Manufacturing Supplier
Replaced Program *
Incumbent Supplier on Replaced Program
Change to Annual Value of Business for
current supplier (USD) with Ford
Sourcing Council Approval Achieved?
<SI> Milestone Date *
<SC> Milestone Date *
<PA> Milestone Date*
Job #1 Date *
Program Cycle Life (yrs.) *
Using Ford Plant *
CBG or Brand Affected *
Annual Program Volume (Cycle Avg.) *
Delivery Terms (FOB point) *
Packaging (returnable or expendable)
ILVS (yes or no)
Shipping Mode (e.g., truck)

Supply Base Impact


Considerations:
o Sourcing council issues that either mandate sourcing to a non-competitive supplier OR Sourcing Council Approval status, if applicable
o Incumbent supplier for the part, whether or not they participated and the result
o Why all suppliers in the base were not quoted for these parts
o Whether or not the recommended supplier is in the strategy as preferred, and, if not, why are they being recommended
o Impact of the proposed sourcing strategy to each supply base (Ford, Volvo, Land Rover, Jaguar, Mazda, AAI)
o Strategic reasons why a particular supplier is being sourced
o Potential supply base consolidation that could impact this recommendation
o Complications that could arise from sourcing the recommended supplier
o Identify potential support/ resource issues with sourcing of this business given the suppliers' other OEM commitments
o What commercial, technical and/or customer satisfaction improvement(s) is the sourcing expected to achieve based on the
recommended suplier's final offer?

Is this sourcing recommendation in line with the current global commodity strategy resident in the Global Supplier
Data Base (GSDB)? If not, what is the timing for an update to GSDB in line with this recommendation if appropriate?

03 consensus_proforma_sample.xls
Background Tab 2 Updated: 04/15/02
Sourcing Consensus Documentation
Supplier Site Quality Evaluation - Quality Data
Program: #REF! Design Responsibility (Ford or Supplier):
Model Year: Benchmark Vehicles:
Commodity: #REF! Benchmark Component Supplier:
Suppliers Being Evaluated
Background
Company name/Site Company A-Location Company B-Location Company C-Location
Quality Segmentation
Business Unit/Parent Ranking X out of XX X out of XX X out of XX
Participation in warranty sharing Y or N Y or N Y or N
FSS Recognized #REF! #REF! #REF!
Site Experience with Commodity X Years X Years X Years
Site OEM Customers
Six Sigma Experience
Automotive Quality Awards
NHTSA Involvement Y or N Y or N Y or N
Site 5 yr. Committed Bus. (% capac.) XX% XX% XX%

Q1 Status
Q1 Score (out of 1,000 points)

I. Customer Satisfaction Company A-Location Company B-Location Company C-Location


Warranty CPU (3 month)
Warranty CPU (12 month)
Warranty CPU (36 month)
R/1000 (3 month)
R/1000 (12 month)
R/1000 (36 month)
TGW (12 month)
TGW (36 month)
Reliability Demonstration *
Variability Reduction Demonstration *
II. Manufacturing Risk
New People, Plant, Product, Process
III. Quality Performance
Number of Field Actions (24 month)

Number of Stop Ships. (12 month)

PPM (12 month average)


PPM (3 month average)
PPM (Commodity average)

Number of Launch Issues (24 month)

PSW Slips (24 month)

Delivery (12 month average)


FCSD Del. (12 month average)
IV. Quality Capability *
FMEA/Control Plan

PPAP

Tier II Quality Management

P.M./Housekeeping

Problem Solving

Lean Performance
Relative Quality Ranking

* Legend: Excellent Evidence indicates excellent supplier capability.


Acceptable Evidence indicates acceptable supplier capability.
Poor Evidence indicates poor supplier capability.
Note: Boxed items indicate best in category.

03 consensus_proforma_sample.xls
Quality, sheet 1 Tab 3 Updated: 10/29/01
Sourcing Consensus Documentation
Supplier Site Quality Evaluation - Conclusions

STA Relative
Supports Quality
Supplier Site Sourcing Ranking
Company - A Overall Assessment (Assessment of this site and Parent Company based on the Y or N 1
Name-Location Quality Data Summary and other known factors)

Relative Strengths (Comparison of this Company's strengths to other candidates)

Relative Weaknesses (Comparison of this Company's weaknesses to other


candidates)

Required Next Steps/Conditional Approval (For conditional "yes" approval, discuss


what is required (e. g., site visit, specific training, etc…)

Company B Overall Assessment Y or N 2


Name-Location Relative Strengths
Complete this section in similar manner as above
Relative Weaknesses

Company C Overall Assessment Y or N 3


Name-Location Relative Strengths
Complete this section in similar manner as above
Relative Weaknesses

03 consensus_proforma_sample.xls
Quality, sheet 2 Tab 3 Updated: 10/29/01
Sourcing Consensus Documentation
Commercial Assessment of Supplier Final Offers
The recommended supplier is identified in BOLD type
I. Life Cycle Costs and General Information
Life Cycle Costs
Exchange Rate Data PF4 Program Number (Provided by Program Finance - Obtain from Purchasing Program Mgt) ________
Supplier # of parts Quoted Piece Price Annual Freight Ford Owned Total Lifetime
Quoted Overall Currency Exchange Rate Cost Cost Tooling Annual Cost
Value (USD) Denomination (per PF4 above) per unit Cost Cost inc productivity
$0.0000 $0.0000
$0.0000 $0.0000
$0.0000 $0.0000
$0.0000 $0.0000
General Information Productivity
Annual Tooling Lead Time Historical, current and/or future
Supplier Turnover Production Prototype year year year
this Distance to Ford Plant FSS Tool Time Tool Time Objective = Objective = Objective =
Commodity 1 2 n (Y or N) (weeks) (weeks) _______ _______ _______

If there is any portion of the quoted piece price, from the recommended supplier, that involves amortization, please describe and advise recovery process.

a. Net Present Value Analysis


NPV Analysis will allow for an analysis of the projected cash flows for the life cycle of the commodity/program to the present.
Year Year Year Year Year Year
1 2 3 4 5 6
Program Volume >>

Pre Launch
NPV of
Supplier Unit Price Ford Owned
(commodity name)
Tooling
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Average $0.00 #DIV/0! #DIV/0! $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
II. Final Offer Summary Cost of Capital
Manufacturing Costs
Materials Costs *
Minority
Manufacturing Supplier Material or Tier Material or Tier 2 Material or Tier Material or Tier Material or Tier 2
Supplier Location (Yes or No) 2 Part (1) Part (2) 2 Part (3) 2 Part (4) Part (5)

Manufacturing Costs * In the event that a detailed cost estimate exists,


Labor & Manufacturing Overhead the buyer may wish to reflect how the various
Other Direct Assembly Mfg Total Mfg quotes relate to the estimate.
Supplier Labor Labor Overhead Scrap Costs

General Overhead

Production
Supplier Packaging SG&A Profit ED&T Total Price Tooling

Does the recommended supplier agree to participate in the Warranty Reduction Program (yes or no)?

Created: 02/11/02
03 consensus_proforma_sample.xls, Commercial, Sheet 1 Tab 4 Updated: 04/03/02
Sourcing Consensus Documentation
Commercial Assessment of Supplier Final Offers (continued)
II. Final Offer Summary (continued)
a. Explanation of Cost Variances and Negotiation Opportunities Negotiation Approach Opportunity

b. Target Agreement Roadmap Opportunities

c. Target Achievement Summary

d. Current Status (per ave. vehicle) Program Cost Opt. Supplier Projected Net B/(W)
Target Estimate Status C/R Status Target
Variable
Investment
e. Quotation Exceptions Including exceptions to the Commercial Principles

Created: 02/11/02
03 consensus_proforma_sample.xls, Commercial, Sheet 2 Tab 4 Updated: 03/04/02
Sourcing Consensus Documentation
Technical Assessment

A pro forma technical evaluation does not


exist, however, examples are available from
recently completed competitive quotations.
These are, however, usually embedded in an
overall team "scorecard".

03 consensus_proforma_sample.xls Created: 02/16/02


Technical Tab 5 Updated: 02/17/02
Procedure No. PP – 2.1
Sourcing
Global Purchasing Procedure
(Formerly Procedures 2.1.1, 2.1.2, 2.1.4, 2.1.11, 2.2, 2.2.1, 2.4.2, 2.5)

Issue Number: 20 Effective Date: December 2004


Return to Procedures TOC
1. PURPOSE
Quality & customer satisfaction are the driving forces in all sourcing actions. This procedure
defines the process for source/supplier selection to fulfill a customers' requirement for
specified products and/or services.

2. ACTIVITIES AFFECTED
Global Purchasing, STA, North America & Europe

3. FORMS USED
3.1 Forms referenced in the procedure are available through the Purchasing Forms Index
NOTE: Refer to Section 9 of this procedure for record retention periods

4. REFERENCES
4.1 Global Sourcing Process
4.2 Global Sourcing Stakeholders Meeting - GSSM
4.3 Competitive Quotation Guide
4.4 Tool to Obtain Accurate Volume Information
4.5 Global Prototype Purchasing User Guide
4.6 Prototype Multipliers
4.7 Global Purchasing Roles & Responsibilities
4.8 STA Sourcing Roles and Responsibilities
4.9 STA Work Instruction PSW-0005 - Sourcing for Quality Roles & Responsibilities
(Pre-Source & Competitive Quote)
4.10 eESWP (electronic Early Sourcing Work Plan)
4.11 STA Q1 procedure PSP-010
4.12 Raw Materials Commodities Management Policy

RELATED PROCEDURES & WORK INSTRUCTIONS


4.13 Procedure 1.1 Commodity Sourcing Strategy Development
4.14 Procedure 1.3 FM&SP Q1 Process
4.15 Procedure 1.3.1 Sourcing to a Non-Q1 Facility (FM&SP)
4.16 Procedure 2.1.3 Resourcing
4.17 Procedure 2.1.5 Sourcing to a Non-Q1 Facility (Production)
4.18 Procedure 2.1.12 Sourcing Council
4.19 Procedure 2.3 Procurement of Ford-Owned Tooling
4.20 Procedure 2.4 Purchase Orders/Approval of Purchase Agreements
4.21 Procedure 2.4.5 Currency Denomination Requirements/Management
4.22 Work Instruction 2.1A - Sourcing to Competitors (Formerly Procedure 2.1.6)
4.23 Work Instruction 2.1B - Transfer Price
4.24 Work Instruction 2.1RM - Raw Materials Unique Sourcing & Purchase Order
Placement Routines
4.25 Directed Sourcing Guideline (Production Only)
4.26 Procedure 4.4 – Systems Supporting Procurement
4.27 Work Instruction 2.1S-OX – Sarbanes Oxley Review: Purchasing Compliance
Global Purchasing Procedure Page 1 of 11 Printed copies are uncontrolled
Procedure No. PP – 2.1
Sourcing
Global Purchasing Procedure
(Formerly Procedures 2.1.1, 2.1.2, 2.1.4, 2.1.11, 2.2, 2.2.1, 2.4.2, 2.5)

Issue Number: 20 Effective Date: December 2004

5. DEFINITIONS
5.1 Sourcing: Process by which a supplier is selected to provide a specified part, product
and/or service and appropriate management approval is obtained.
5.2 Pre-Source: Formerly known as early sourcing. Refers to single sourcing (vs.
competitive bidding) for supplier selection in the FPDS process
5.3 Single-Sourcing: Process by which purchasing does not conduct a competitive bid and
has pre-selected a supplier to quote a project/program. A single source supplier should
be listed in the commodity strategy (Production).
5.4 Commodity Strategy: Document detailing the approved supplier list and overall
strategy direction for a particular commodity
5.5 Recap: Document which contains the complete details of a particular sourcing
decision, e.g., supplier names, quoted pricing, sourcing and pricing rationale, etc.
5.6 On-Line Quote (OLQ): Tool used to aid the buyer in conducting a competitive request
for quote. OLQ facilitates the receipt of supplier pricing via a web based software
application. It also provides feedback to suppliers on their competitive position during
the RFQ event and allows them to resubmit lower quotations, if desired.
5.7 CAS: Centrally Administered System, e.g., Purchasing systems such as WIPS,
CPARS, eVEREST, etc.
5.8 Directed Sourcing: Ford directing a Tier 1 supplier to use a specific Tier 2 component
supplier (for further information see the Directed Sourcing Guideline).
5.9 Selective Rebid: Re-issuing the same RFQ to a subset of suppliers that were originally
involved on the initial request for quotation. Purchasing Manager (LL6+) approval is
required in writing prior to sending the rebid to the targeted supplier(s).
5.10 Lead Buyer: FM&SP buyer responsible for updating and managing a particular
commodity strategy.
5.11 Support Buyer: FM&SP buyer who does not have final responsibility for updating and
maintaining a commodity strategy but may conduct transactions within that
commodity.
5.12 STA: Supplier Technical Assistance

6. EXCLUSIONS
6.1 FM&SP authority is redelegated, as indicated in FM66-10-11.

7. PROCEDURE
7.1 Buyer receives a sourcing request. A sourcing request may include the following:
Purchase Notification (PN), Advanced Purchase Notification (APN), Purchasing
Information Request (PIR)
Authority to Proceed (ATP), generated by a WERS notice
Sourcing Required Notification (SRN)
Build to print/specification request
Requisition
Early sourcing request (e.g., via the eESWP system)
Similar document from an interfacing activity
7.2 Refer to Procedure 2.1.3 for the process of resourcing an existing supplier.
Global Purchasing Procedure Page 2 of 11 Printed copies are uncontrolled
Procedure No. PP – 2.1
Sourcing
Global Purchasing Procedure
(Formerly Procedures 2.1.1, 2.1.2, 2.1.4, 2.1.11, 2.2, 2.2.1, 2.4.2, 2.5)

Issue Number: 20 Effective Date: December 2004


7.3 Buyer ensures description/specification adequately describes the requested
product/component or service.
7.4 The sourcing process involves the following key steps:
Supplier Identification (Section 7.5 - 7.7)
Supplier Selection/Quoting (General Overall Process) (Section 7.8 - 7.11)
Competitive Bid/Market Test/Design Competition (Section 7.12 - 7.19)
Supplier Sourcing/Approval (Section 7.20 - 7.23)
Prototype Sourcing (Section 7.26 - 7.28)

Supplier Identification
7.5 Buyer identifies potential supplier(s) to fulfill the sourcing request, preferably in line
with the approved commodity strategy. The goal is to select the best available
supplier(s) based on quality considerations, commercial judgment, program objectives
and/or interfacing activity recommendation.
7.6 Logistics costs, including freight, obsolescence, duty, tax implications and logistics
provider costs, should also be considered in all sourcing decisions.
7.6.1 When appropriate, freight studies are conducted within Production Purchasing,
usually under the following scenarios:
• Parts being sourced are shipped long distances
• Parts are large or bulky
• Potential supplier is significantly closer to the targeted Ford assembly
plant than another potential source
• Significant changes in distance for resourcing actions
7.7 Potential supplier(s) must meet the following requirements:

Commodity Strategy
7.7.1 Potential suppliers do not have to be listed on the commodity strategy, but must
be added to the strategy if a sourcing decision is made. Please review
Procedure 1.1 for complete details.
7.7.2 Special approvals are required to source a supplier not listed on an approved
commodity strategy. Refer to Purchasing Authorities Manual, Attachment #1,
Note #13. Rationale for using a non-approved supplier shall be documented in
the file.

Q1 Status
7.7.3 Suppliers must be assigned the Q1 status code "Y" to be eligible for sourcing.
If the supplier is not Q1, refer to the non-Q1 sourcing process outlined in
Procedure 2.1.5 (for Production) or Procedure 1.3.1 (for FM&SP).
7.7.4 Production Purchasing requirements state the sourcing of new business to non-
Q1 facilities is limited to supplier manufacturing sites that are Production STA
active (i.e., w/ an assigned STA site engineer).
7.7.5 FM&SP Q1 process is explained in detail in Procedure 1.3.

Sourcing Council
Global Purchasing Procedure Page 3 of 11 Printed copies are uncontrolled
Procedure No. PP – 2.1
Sourcing
Global Purchasing Procedure
(Formerly Procedures 2.1.1, 2.1.2, 2.1.4, 2.1.11, 2.2, 2.2.1, 2.4.2, 2.5)

Issue Number: 20 Effective Date: December 2004


7.7.6 Sourcing Council review is required if a change in the Ford or Visteon
make/buy (in-house/outside) pattern would result in:
7.7.6.1 North America: Moving the equivalent of one (1) Ford/Visteon
hourly employee per shift per plant into or out of a Ford or Visteon
location. This also applies to all Ford facilities located in Mexico.
7.7.6.2 Visteon facilities in Mexico are excluded from the Sourcing Council
process. However, buyers should review the Visteon Right of Last
Refusal requirements for those components produced in Mexico for
use in the United States.
7.7.6.3 Europe: Moving the equivalent of thirty (30) total Ford/Visteon
hourly employees into or out of a Ford or Visteon location.
7.7.7 Sourcing Council pre-approval is required for market tests of any Visteon
components (Tier I, Tier II or lower tier).
7.7.8 Sourcing Council policies must be followed when initiating sourcing actions
that impact any Visteon components (Tier I, Tier II, or lower tier). One key
item is Visteon's Right of Last Refusal (ROLR), which must be offered before
proceeding with a resourcing request to the Sourcing Council. The ROLR
process is scheduled to expire in June, 2003. Refer to Procedure 2.1.12 for
complete details.

Supplier Selection/Quoting – General Overall Process


7.8 Buyer determines the appropriate supplier selection process. Supplier selection process
options include:
• Single source (single source rationale must be documented in the file)
• Pre-source (single source rationale must be documented in the file)
• Competitive bid (via market test, design competition or OLQ)
7.8.1 The Global Sourcing Stakeholders Meeting (GSSM) is a Production Purchasing
tool to drive consensus and consistency in the sourcing process.
7.8.2 The potential supplier(s) and the sourcing approach (pre-source / competitive
bid) are reviewed for approval in Step 1 of the GSSM process (linked above),
prior to action by the buyer. The sequence of steps is shown in the Sourcing for
Quality Process Tool and Linkage diagram reference in 4.9 above.
7.8.2.1 The Buyer shall obtain STA input to the Pre-Source or Competitive
Quote Sourcing Process, per the Pre-Source and Competitive Quote
processes and responsibilities. The STA input to these sourcing
Processes is a completed SSQE. Further details on the Sourcing for
Quality process are available through the STA Work Instruction PSW-
005.
7.8.3 The attached document details the commodities targeted for GSSM review.
7.9 After choosing the appropriate selection process, the Buyer issues a request for quote
(RFQ) in the appropriate system.
7.9.1 Follow the appropriate systems guide to issue an electronic RFQ.
7.9.2 If issuing a manual RFQ, e.g. via e-mail or post-mail, the Supplier Quotation
form must be used (NA Only).

Global Purchasing Procedure Page 4 of 11 Printed copies are uncontrolled


Procedure No. PP – 2.1
Sourcing
Global Purchasing Procedure
(Formerly Procedures 2.1.1, 2.1.2, 2.1.4, 2.1.11, 2.2, 2.2.1, 2.4.2, 2.5)

Issue Number: 20 Effective Date: December 2004


7.9.2.1 Manual RFQs are still acceptable within Ford of Europe Purchasing.
7.9.2.2 Quote One Pagers for design changes only are available through the
Purchasing Forms Index.
7.9.3 All RFQs shall reference Ford's Global Terms & Conditions.
7.9.4 Production Purchasing: Quotation not required at the time of sourcing when
the supplier is early sourced, or "pre-sourced." (Refer to Sec. 7.22)
7.9.5 FM&S Purchasing: Quotation required for all transactions, except as noted in
section 7.22.3.
7.9.6 Formal quotations must be obtained before the initial purchase order is issued.
7.10 Supplier responses may be received via post-mail, e-mail, fax, or electronically.
7.10.1 All supplier quotations must be signed (electronic signatures for e-mail &
electronic submissions are acceptable).
7.10.2 All supplier quotations, except for electronic responses, must be accompanied
by a signed Ford RFQ form.
7.10.3 FM&SP may accept quotations on supplier letterhead, provided the appropriate
electronic clause, referencing Ford global terms and conditions, is included on
the order.
7.11 Buyer should ensure the suppliers' quotations are consistent with the approved funding
for the order.

Competitive Bid / Market Test / Design Competition


7.12 Buyer may initiate a market test/design competition to determine which supplier best
meets the program/requisitioner requirements or to identify potential suppliers.
7.12.1 Buyer will identify potential market test/design competition candidates, based
on the requirements in section 7.7.
7.12.1. 1 The buyer obtains from STA the Supplier Sourcing Quality Evaluation
(SSQE) per the Sourcing for Quality (SfQ) process (contained within
the Competitive Quotation Guide)
7.12.2 Requests for quotation must only be sent to suppliers that will be given
consideration as a potential source and supplier pricing must not be disclosed to
other suppliers.
7.12.3 Suppliers participating in a market test/design competition do not have to be
listed on the commodity strategy, but must be added if a sourcing decision is
made.
7.13 Commodity/Core or CBG/Operations or FM&SP Buyer may conduct the actual market
test/design competition. Refer to the Competitive Quotation Guide for complete
instructions (Production Purchasing Only).
7.14 The due date on the RFQ may be revised by the buyer, but all suppliers invited to quote
must be appropriately informed.
7.14.1 Purchasing Manager approval is required to accept late bids, if only selected
suppliers from the original bid list are permitted to submit a late bid.
7.15 If a selective rebid is required, Purchasing Manager (LL6+) approval authority is
required in writing, prior to sending the rebid to the targeted supplier(s). Refer to
Authorities Manual - Attachment #1, Note 3.

Global Purchasing Procedure Page 5 of 11 Printed copies are uncontrolled


Procedure No. PP – 2.1
Sourcing
Global Purchasing Procedure
(Formerly Procedures 2.1.1, 2.1.2, 2.1.4, 2.1.11, 2.2, 2.2.1, 2.4.2, 2.5)

Issue Number: 20 Effective Date: December 2004


7.16 After all suppliers invited to bid have responded to the RFQ and/or the RFQ due date
has expired, the buyer prepares a recap document to analyze the quotations. Recaps
generally contain a summary of key bid information, e.g., individual supplier names,
price, timing, and other information pertinent to making a sourcing decision. For
GSSM commodities and others, as appropriate, the recap format to be used is the
Sourcing Consensus Pro forma, PP-P-F086.
7.16.1 Recap must be stated in equivalent currencies for comparison purposes and
business must be placed in the currency of the country of manufacture or where
the majority of costs are actually incurred or the currency determined by the
requisitioner's Controller's Office. Use the latest exchange rates determined by
the Treasurer's Office.
7.16.2 Refer to Procedure 2.4.5 for deviation process.
7.17 Buyer clarifies, as necessary, the price, terms and conditions, timing, etc., with the
supplier. Any issues should be reviewed with the buyer's management, Program
Management Team and/or requisitioner, as appropriate.
7.18 Buyer may have the recap reviewed by the interfacing activity to ensure all quotations
are consistent with the specification.
7.19 Europe Only: Sourcing of production steel requirements, prices and terms &
conditions are agreed by the Purchasing Manager and the supplier on an annual basis.

Supplier Sourcing/Approval
Regardless of selection method, the following sourcing requirements must be met:
7.20 Supplier selection must be completed via one of the following:
• Competitive quotation, with analysis of results by Engineering/Requisitioner and/or
Purchasing
• Single source/pre-source recommendation from Engineering/Requisitioner and/or
Purchasing
• Selection of the best available supplier based on quality considerations and
commercial judgment
7.21 Sourcing must be approved and documented consistent with Authorities Manual #1.
Sourcing approval must be obtained before order placement or formal communication
of awarded business is sent to the supplier.
7.21.1 Sourcing approval can be documented via the following:
• Early Sourcing Approval Request
• eESWP Sourcing Matrix
NOTE: All new product programs are required to use this system to
document sourcing actions. However, the manual sourcing matrix is an
acceptable form of sourcing approval for product program sourcing
actions conducted prior to the eESWP system launch in 2000.
• Recap (e.g. electronically documented and recorded within the purchase
order file or manual pro-forma document)
• GSSM meeting minutes
• Sourcing Consensus Pro-Forma - Form #PP-P-F086 (an Excel based recap
which includes the SSQE).
Global Purchasing Procedure Page 6 of 11 Printed copies are uncontrolled
Procedure No. PP – 2.1
Sourcing
Global Purchasing Procedure
(Formerly Procedures 2.1.1, 2.1.2, 2.1.4, 2.1.11, 2.2, 2.2.1, 2.4.2, 2.5)

Issue Number: 20 Effective Date: December 2004


• "White paper" – (free-form request for sourcing approval which contains
all essential elements to make a sourcing decision)
7.21.2 Sourcing approval and rationale shall be maintained in the buyer file.
Additional rationale must be included when sourcing to other than the low
bidder.
7.21.3 Sourcing rationale must be stated in equivalent currencies for comparison
purposes (usually US dollars) and business must be placed in the currency of
the country of manufacture. Refer to Procedure 2.4.5 for deviation process.
Use the latest exchange rates determined by the Treasurer's office.

Production Purchasing
7.21.4 Documentation of sourcing approval shall be retained by the
Commodity/Core/Central Buyer.
7.21.4.1 However, the documentation is a quality record and must be
maintained, as required, and also be accessible to and produced by
both the Commodity/Core/Central Buyer and
CBG/Operations/Program Buyer during an internal audit.
7.21.5 CBG/Operations/Program Buyer may use the communication of sourcing
approval (via e-mail or letter) by the Commodity/Core/Central Buyer as
sourcing documentation. Evidence of such communication must be retained.
7.21.6 After securing management approval, the Buyer communicates source selection
to the vehicle program or requisitioner.
7.21.6.1 For a new supplier site, the buyer establishes a GSDB code for the
site per GSDB Request Form (PC-P-F044) within 30 days of sourcing
approval. This supports STA use of the new site Sourcing for Quality
Manufacturing Site Assessment for the Q1 process (STA Procedure
PSP-010).
7.21.6.2 Communication of sourcing selection to the supplier during the pre-
sourcing process must be documented via a Sourcing Agreement,
which may include a Price Agreement and may be followed by a
Target Agreement.
7.21.6.3 After the program has passed the Program Approval milestone, a
confirming purchase order will be issued to the supplier.
7.21.7 eVEREST has 2 types of purchase orders:
7.21.7.1 Standard Purchase Order (one- time type of buy with defined quantity,
such as lump sum or tool order)
7.21.7.2 Blanket Purchase Agreement (purchase order used where the only
quantity available is a percentage of business)
7.21.7.3 For legal purposes, all Production Purchasing orders are referred to
as purchase orders.

FM&S Purchasing
7.21.8 Evidence of sourcing approval must be retained by the appropriate FM&SP
Buyer in the purchase order file.

Global Purchasing Procedure Page 7 of 11 Printed copies are uncontrolled


Procedure No. PP – 2.1
Sourcing
Global Purchasing Procedure
(Formerly Procedures 2.1.1, 2.1.2, 2.1.4, 2.1.11, 2.2, 2.2.1, 2.4.2, 2.5)

Issue Number: 20 Effective Date: December 2004


7.21.9 Buyer-led market test/competitive bid may be conducted as part of normal
review program or if a concern arises over a supplier's performance.
7.21.10 If RFQ is initiated by PIR/APN, the buyer sends the requisitioner a copy of
supplier quotations, which may be accompanied by a recap.
7.22 Prior to issuing a purchase order (refer to Procedure 2.4), a Ford generated quotation,
either manual or electronic, documenting supplier pricing is required. Additional
supporting documentation from the supplier may be attached.
7.22.1 This element applies to both Production Purchasing and FM&SP.
7.22.2 Evidence of supplier quotations and/or market test/design competition results
shall be retained by the responsible buyer.
7.22.3 FM&S Purchasing: Competitive or written bid is not mandatory if the value of
commitment is less than $10,000. See Authorities Manual - Attachment #1,
Note 15 for complete details.
7.23 In those situations where a supplier's proposal is referenced on the purchase order or is
the basis of sourcing, Purchasing must review the supplier's proposal to identify any
terms & conditions that conflict with Ford's Global Terms & Conditions. (Note:
Deviations to Ford Global Terms and Conditions are strongly discouraged and
require approval from the Vice President, Global Purchasing. Refer to procedure
2.4.1 – Global Terms and Conditions). If any such conflicting terms are found, the
buyer shall determine whether Ford and the Supplier have previously agreed to a set of
exceptions to Ford's standard terms which were intended to govern future Purchase
Orders. If such an agreement exists, the Purchase order shall be modified to include an
appropriate reference to the agreed Ford / Supplier agreement. Such as (CPARS
Clause 4-22 or eVEREST equivalent);
"This purchase order is issued based on the pricing and technical
specifications of your proposal dated xx/yy/zz. All other terms &
conditions of this order are based on the Ford / Supplier agreement dated
aa/bb/cc. Any other exceptions to these terms must be approved in writing
by the Ford buyer."
7.24 If the proposal is NOT based on any prior Ford / Supplier agreement, the Purchase
order must be modified to include an appropriate reference to Ford's Global Terms &
Conditions, such as (CPARS Clause 4-21 or eVEREST equivalent);
"This purchased order is issued based only on the pricing and technical
specifications of your proposal dated xx/yy/zz. All other terms &
conditions of this order are based on Ford's Global Terms & Conditions
as referenced on this purchase order. Any exceptions to Ford's Global
Terms and Conditions must be approved in writing by the Ford buyer."
7.25 Cost rationale shall be documented and may include, but is not limited to:
• Competitive bid data
• Benchmarking information
• Historical price data
• Team Value Management (TVM) tools
• Formal Cost Optimization analysis
• Quick Web Estimating Software Tool (QWEST) data

Global Purchasing Procedure Page 8 of 11 Printed copies are uncontrolled


Procedure No. PP – 2.1
Sourcing
Global Purchasing Procedure
(Formerly Procedures 2.1.1, 2.1.2, 2.1.4, 2.1.11, 2.2, 2.2.1, 2.4.2, 2.5)

Issue Number: 20 Effective Date: December 2004


• Cost tables (if applicable).
• Other methodology may be used to determine the price justification as long as it is
documented and such information is retained as part of the purchase order file
7.25.1 All FM&SP purchase order files over $500,000 must include documentation
outlining the price justification for order placement. Refer to Authorities
Manual - Attachment #1, Note 7 for complete details.

Prototype Sourcing
7.26 Wherever possible, prototype parts should be sourced to the selected supplier of the
future production requirements and manufactured using the production or a production
representative procedure.
7.27 The buyer should use the prototype ordering system supported by the local systems
group. The prototype process is defined in the necessary system users guide.
7.28 Once the prototype build has been established, the prototype order is established
in GPIRS. The GPIRS system feeds WIPS (for both purchase orders and tool
orders). Upon prototype request in WIPS, prototype orders (including tool
orders) are issued to the supplier.
7.28.1 If prototype pricing is obtained via an RFQ process, follow the same basic steps
as outlined in this procedure. Prototype sourcing must meet the requirements
outlined in section 7.20 - 7.23.
7.28.2 The buyer may use agreed prototype multipliers, agreed target costs or
historical cost to document prototype pricing, in lieu of a supplier quotation.
7.28.3 Sourcing and pricing rationale shall be documented in the prototype purchase
order file.

8. GENERAL RULES
8.1 The purchase order normally serves as the document, which commits Ford to the
purchase of materials/services produced by a supplier. In cases where sourcing
commitment is required in advance of the purchase order, and the existing early
sourcing documents are not appropriate, the Buyer may issue the Supplier Involvement
Request (SIR) (Production Purchasing Only).
8.2 The Supplier Involvement Request should be used on a selective/exception basis only
and obtaining agreement from the Program Team and Global Council must precede
notification to the supplier.
8.3 Usage of the SIR falls within 2 categories:
8.3.1 No Intent to Commit Production Business
8.3.2 Intent to Commit Production Business
8.4 The "No Intent to Commit Production Business" document should be used when the
team is not ready to select a supplier, but needs input on a new technology or vehicle
packaging/feasibility study support.
8.4.1 If teams wish to pursue the option of paying for supplier services, approval
must be received from PD Finance and the Purchasing Controller's Office, prior
to any notification to the supplier.

Global Purchasing Procedure Page 9 of 11 Printed copies are uncontrolled


Procedure No. PP – 2.1
Sourcing
Global Purchasing Procedure
(Formerly Procedures 2.1.1, 2.1.2, 2.1.4, 2.1.11, 2.2, 2.2.1, 2.4.2, 2.5)

Issue Number: 20 Effective Date: December 2004


8.5 The "Intent to Commit Production Business" (Suppliers Business to Lose) document is
used in isolated pre-sourcing situations, typically in the pre <SI> timeframe, when a
cross-functional team has demonstrated the business need for this early action, even
though the program targets are still being defined.
8.5.1 GSSM approval is required prior to sending the letter to the supplier.
8.6 Please refer to the instructions attached to the appropriate forms for complete details
and possible examples.
8.7 Any changes to the SIR form should be reviewed by the Office of General Counsel to
ensure Ford's legal commitment is clear and to advise Purchasing if the letter
constitutes a contingent or other undesired liability.
8.8 Volume information provided in CAS comes from Pre-Production systems and should
be considered the master. In the event the Buyer or Supplier believes that volume
information in CAS is inappropriate, the following resources are available for volume
verification - Tools to Obtain Accurate Volume Information - Attachment A.
8.9 Sarbanes Oxley Compliance: Adherence to Sarbanes Oxley standards, require the
establishment of effective controls. Areas of this procedure (highlighted below) fall
within the scope of Sarbanes Oxley. (Refer to the Sarbanes-Oxley Review Module and
Work Instruction 2.1S-OX for all procedures that address Sarbanes Oxley
requirements)
8.9.1 (Note: S-OX Quest. 713: Are Prototype Tool Orders issued when prototype builds are required?)
• How is control performed: Selection is conducted upon receipt of sourcing
request.
• Who performs control: Buyer performs control through source selection
• How often is control performed: As required (upon sourcing need)
• How is control Monitored/Reviewed: Monitored/reviewed through system
generated ATPs filtered to Manager/Supervisor

9. RECORDS
Global Purchasing denotes specific forms and documents prepared during the normal course
of Purchasing activity as Official Records. Official Purchasing Records referenced in this
procedure are identified in the Purchasing Quality Records Matrix (PQRM). The PQRM
includes retention periods and is administered in accordance with the Corporate Global
Information Standards (GIS). Additional information regarding other forms, documents and
Corporate record management practices can be found at the GIS site.

10. RECORD OF REVISIONS


Date Approved by Description
May 2003 D. J. Halliday Align w/ corporate format & FAPs 03-002, 03-003
(Formerly Procedures 2.1.1, 2.1.4, 2.1.11, 2.2, 2.2.1, 2.4, 2.5)
October 2003 D. J. Halliday Incorporation of Procedure 2.1.2 (FM&S PO clauses)
January 2004 D. J. Halliday Sarbanes-Oxley inclusion
June 2004 D. J. Halliday Alignment of Purchasing Sourcing Process w/STA
Sourcing for Quality Process
Dec 2004 D. J. Halliday Selective Rebid Policy Change – (MCRP)

Global Purchasing Procedure Page 10 of 11 Printed copies are uncontrolled


Procedure No. PP – 2.1
Sourcing
Global Purchasing Procedure
(Formerly Procedures 2.1.1, 2.1.2, 2.1.4, 2.1.11, 2.2, 2.2.1, 2.4.2, 2.5)

Issue Number: 20 Effective Date: December 2004

NOTE: Indicates area of change from the previous issue

Global Purchasing Procedure Page 11 of 11 Printed copies are uncontrolled


Sourcing for Quality
Data Entry Sheet

Materials/Data to have available while completing this Process:

1 Supplier Sourcing Quality Evaluation (SSQE) form - completed by each supplier


2 Site Assessment for each Supplier (EKB address??)
3 Supplier Improvement Metrics (SIM) - Summary
4 Parent SIM Report Card
5 Supplier Delivery Site List

Instructions:

1 Under the Data Entry column of Section I, II and III below, enter the data specific to this evaluation. This
information will automatically feed into the required fields in both the Quality Data Summary Matrix (tab 2)
and the Sourcing for Quality Executive Summary (tab 4).
(Note: A maximum of 6 suppliers is allowed)

2 Complete the Quality Data Summary Matrix (tab 2) by providing a Score for each element for each supplier
(See Quality Data Summary Guidelines for STA Site Engineers for information on how to score each
element - website address is provided below). The worksheet will automatically sum the Totals where
required and enter these Totals in the appropriate places on the Sourcing for Quality Executive Summary
(tab 4).
Add Website Address for Guidelines (add Hyperlink)

Helpful Hint: To get a definition of the element while filling out the form place the cursor on the cell with the
element Name (example: 1.1 Quality Segmentation). A comment box showing the element definition will
appear as long as your curser is on this cell. To make the comment stay shown while working on the
document, select the cell with the right mouse button, then select "Show Comment". When you are
complete, again select the cell with the right mouse button, then select "Hide Comment". The same can be
done to show how to score each element if you look at the comment box that is associated with the "Max
Score" for that particular element.

3 When complete with the Quality Data Summary Matrix , go to the Ranking Macro worksheet (tab 3) and left
click the cursor on the Automatic Supplier Ranking Macro button. This will run a macro that automatically
takes the information entered into the Quality Data Summary Matrix (tab 2) and ranks the suppliers from
highest to lowest COMBINED SCORE % points. The ranked supplier information is automatically entered
into the Sourcing for Quality Executive Summary (tab 4).

4 Under the Data Entry column of Section IV below, enter the name of the CONSENSED Supplier, the
CONSENSED Supplier Site, the rationale for selecting this Supplier, the Key Supplier Challenges and the
Workplan to Overcome the Challenges. This information will automatically feed into the appropriate field on
the Sourcing for Quality Executive Report (tab 4).

5 The Sourcing for Quality Executive Summary should now be complete, with all required data automatically
feeding from this Data Entry Sheet, the Quality Data Summary Matrix (tab 2) and the Ranking Macro
worksheet (tab 3). Select the Auto Generated Exec Report tab (tab 4) and print the report.

Content Contact: C. Green (CGREEN) Date Issued: 16-May-2002


Format Contact: B. Fagerson (BFAGERSO)/L. Blair-Johnson (LBLAIR)Page 1 of 17 Date Revised: 16-May-2002
05 ssqe-exec_summary_sample.xls 1. Data Entry Sheet Revision: 11
Sourcing for Quality
Data Entry Sheet

Section: Element Data Entry

I Vehicle Program / Model Year: XXX / 2005

Commodity: Door Trim Panels

Design Responsibility
Supplier
(Ford or Supplier):

Benchmark Vehicles BMW

Benchmark Component Supplier: Supplier YYY supplies BMW X5, Z3

II Total Number of Suppliers: 6

Note: Proceed Supplier Name with (*) if Example: * Visteon


surrogate data is used

Supplier Name: Supplier #1

Site Code:
Site Code #1
(if new supplier with no site code, enter NA)

SiteLocation (City, State, Country): Site Location #1

If Surrogate Data is being used, list location


where data is from (City, State, Country):

Supplier Name: * Supplier #2

Site Code:
(if new supplier with no site code, enter "Not Not Available
Available)

SiteLocation (City, State, Country): Site Location #2

If Surrogate Data is being used, list location


Surrogate Site Location #2
where data is from (City, State, Country):

Supplier Name: *Supplier #3

Site Code:
Not Available
(if new supplier with no site code, enter NA)

SiteLocation (City, State, Country): TBD

If Surrogate Data is being used, list location


Surrogate Site Location #3
where data is from (City, State, Country):

Content Contact: C. Green (CGREEN) Date Issued: 16-May-2002


Format Contact: B. Fagerson (BFAGERSO)/L. Blair-Johnson (LBLAIR)Page 2 of 17 Date Revised: 16-May-2002
05 ssqe-exec_summary_sample.xls 1. Data Entry Sheet Revision: 11
Sourcing for Quality
Data Entry Sheet

Supplier Name: Supplier #4

Site Code:
Site Code #4
(if new supplier with no site code, enter NA)

SiteLocation (City, State, Country): Site Location #4

If Surrogate Data is being used, list location


where data is from (City, State, Country):

Supplier Name: * Supplier #5

Site Code:
Not Available
(if new supplier with no site code, enter NA)

SiteLocation (City, State, Country): TBD

If Surrogate Data is being used, list location


Surrogate Site Location #5
where data is from (City, State, Country):

Supplier Name: Supplier #6

Site Code:
Site Code #6
(if new supplier with no site code, enter NA)

SiteLocation (City, State, Country): Site Location #6

If Surrogate Data is being used, list location


where data is from (City, State, Country):

Section Element Data Entry

III Commodity Specific Info.

6 month Commodity Average PPM 60

Content Contact: C. Green (CGREEN) Date Issued: 16-May-2002


Format Contact: B. Fagerson (BFAGERSO)/L. Blair-Johnson (LBLAIR)Page 3 of 17 Date Revised: 16-May-2002
05 ssqe-exec_summary_sample.xls 1. Data Entry Sheet Revision: 11
Sourcing for Quality
Data Entry Sheet

Section Element Data Entry


IV Note: Proceed Supplier Name with (*) if Example: * Visteon
surrogate data is used
Consensed Supplier: * Supplier #2
Consensed Supplier Site: Site Location #2

Rationale for selecting Consensed Commodity design experience exceeds 19 years. Supplier of
Supplier XXX to the BMW BIC competitive vehicles, other OEM
customers include VW, Mercedes, Peugote, DCX and
Be sure that information in all Sourcing for Quality Saturn. Suplier #2's current XXX CPU warranty and R/1000
documents are aligned and summarized in the metrics are excellent. Reliability experts are trained and
rationale for selecting the Consensed Supplier. implementing robustness and reliability techniques thru the
production process. PPM/Delivery metrics are BIC. Strong
Incorporate comments from Site Engineer based QOS (BMW, Saturn, DCX) in place, including BIC FMEA's,
on validation of SFQ documents
control plans, APQP. Processes are capable. CPk levels for
Identify any strengths which support sourcing
Saturn XXX's range from 1.63 CPk to 5.78 CPk.
decision: Outstanding Lean implementation. Scrap/Rework improved
- Experience with commodity by 20% and efficiency by 10% from 2000 to 2001. Evidence
- Ford supplier history shows Supplier #2 has a Skills Assessment Training Plan
- Site's market share that is standard in their APQP checklist. Existing processes to
- Customer list be used for manufacturing limiting new technology risk.
- Age of plant/equipment Strong desire to bring supplier into Ford supply base.
- Process flow

* Note :
- BIC performance
The rationale description above must be brief and contained only in the
- Toyota supplier
size box above. Be sure to check that no wording has been cut off in the
- QOS Executive Summary.
- Process improvement initatives

Content Contact: C. Green (CGREEN) Date Issued: 16-May-2002


Format Contact: B. Fagerson (BFAGERSO)/L. Blair-Johnson (LBLAIR)Page 4 of 17 Date Revised: 16-May-2002
05 ssqe-exec_summary_sample.xls 1. Data Entry Sheet Revision: 11
Sourcing for Quality
Data Entry Sheet

Key Supplier Challenges: This supplier is new to the Ford NA supply base. The
proposed site is a Greenfield Site in NA while both
Should include both Supplier Challenges and Ford Engineering and Manufacturing Centers of Excellence are
Challenges. located in Europe.
Identify risks that were identified during the
evaluation process with high level workplan/timing

- Engineering Resources
- Quality Performance
- Greenfield Site
- Launch history to Ford
- Quality basics (FMEA, Control Plans, etc.) * Note :
The Key Supplier Challenges description above must be brief and
contained only in the size box above. Be sure to check that no wording
has been cut off in the Executive Summary.

Workplan to Overcome Challenges: The proposed new site will utilize experienced production
personnel from an existing site. Supplier to establish an
Be sure to include Timing for each action and support staff in NA to provide engineering expertise to the
where each action will be officially proposed Greenfield Site. A detailed Design and
documented and agreed with supplier Manufacturing work plan will be provided by <SC> and
reviewed with Product Engineering, Purchasing and
Example: Statement of Work, Sourcing Manufacturing at all regular program meetings.
Agreement, etc.

* Note :
The Key Supplier Challenges description above must be brief and
contained only in the size box above. Be sure to check that no wording
has been cut off in the Executive Summary.

STA Engineer Name / Date Completed: First Last Name / 25-April-2002

Content Contact: C. Green (CGREEN) Date Issued: 16-May-2002


Format Contact: B. Fagerson (BFAGERSO)/L. Blair-Johnson (LBLAIR)Page 5 of 17 Date Revised: 16-May-2002
05 ssqe-exec_summary_sample.xls 1. Data Entry Sheet Revision: 11
Supplier Sourcing Quality Evaluation (SSQE) - Quality Data Summary Matrix
KEY: Higher Score is Better
Vehicle Program / MY: XXX / 2005 Design Responsibility: Supplier
Commodity: Door Trim Panels Benchmark Vehicles: BMW
STA Engineer/Date Completed: First Last Name / 25-April-2002 Benchmark Component Supplier: Supplier YYY supplies BMW X5, Z3

* Note: Surrogate data was used for this supplier in this evaluation

I. Company / Site

Supplier #1 * Supplier #2 *Supplier #3 Supplier #4 * Supplier #5 Supplier #6


Site Code #1 Not Available Not Available Site Code #4 Not Available Site Code #6

Scoring Criteria
I Site Location #1 Site Location #2 TBD Site Location #4 TBD Site Location #6
Business Indicators
Surrgate Location: Surrgate Location: Surrgate Location: Surrgate Location: Surrgate Location: Surrgate Location:

Surrogate Site Location #2 Surrogate Site Location #3 Surrogate Site Location #5

Weight = 10% Data Score Data Score Data Score Data Score Data Score Data Score
1.1 Quality Segmentation <Help> 3 9 n/a 0 3 9 n/a 0 n/a 0 n/a 0
Input Data and Score for each Supplier

1.2 Business Unit/Parent Ranking <Help> 423 out of 474 0 345 out of 474 0 274 out of 474 0 n/a 0 n/a 0 310 out of 474 0
1.3 Site Experience with Commodity <Help> 10 years 3 19 years 9 20 years 9 5 years 3 < 1 year 0 9 Years 3
Ford (Europe), BMW,
Ford, GM, DCX, Toyota, Ford, GM, Mercedes,
1.4 Site OEM Customers (Site) <Help> 9 Mercedes, Peugeot, 9 9 BMW, Mercedes 3 GM 3 DCX, Toyota, GM 9
Honda Toyota, DCX
DCX, VW
1.5 6-Sigma or Other Tools Experience <Help> Yes 9 None 0 Yes 9 n/a 0 n/a 0 Yes 9
Ford Q1; GM Supplier Q1 Preferred Quality Ford Q1; JCI Quality
Ford Q1; 1988, 1992
1.6 Automotive Quality Awards of the Yr. 94,97,98; Award (1998); Seat Belt Olympic Gold Award
<Help> 9 0 3 n/a 0 n/a 0 NUMMI Certicicate of 3
(3 years) (Q1 excluded ?) Ford High Mileage Supplier Award (1989, 2000; GM Multiple
Achievement
Reliability Award 1990) Quality Awards
1.7 Government Safety Organization
<Help> No 9 No 9 No 9 No 9 No 9 No 9
Involvement (2 years)

max possilbeTotal weighted points=


162 129 90 147 42 30 87
Calculation
Automatic

(Each element is weighted independently)

Bus Indicators max possible


10% 8 % 6 % 9 % 3 % 2 % 5
Weighted % Pts. % points =

Content Contact: C. Green (CGREEN) Date Issued: 21-Mar-2002


Format Contact: B. Fagerson (BFAGERSO) / L. Blair-Johnson (LBLAIR) Page 6 of 17 Revision Date: 06-May-2002
05 ssqe-exec_summary_sample.xls 2. Quality Data Summary Matrix Revision: 10
Supplier Sourcing Quality Evaluation (SSQE) - Quality Data Summary Matrix
KEY: Higher Score is Better
Vehicle Program / MY: XXX / 2005 Design Responsibility: Supplier
Commodity: Door Trim Panels Benchmark Vehicles: BMW
STA Engineer/Date Completed: First Last Name / 25-April-2002 Benchmark Component Supplier: Supplier YYY supplies BMW X5, Z3

* Note: Surrogate data was used for this supplier in this evaluation

Supplier #1 * Supplier #2 *Supplier #3 Supplier #4 * Supplier #5 Supplier #6


Site Code #1 Not Available Not Available Site Code #4 Not Available Site Code #6

Scoring Criteria
II
Site Assessment Site Location #1 Site Location #2 TBD Site Location #4 TBD Site Location #6

Highlights Surrgate Location: Surrgate Location: Surrgate Location: Surrgate Location: Surrgate Location: Surrgate Location:

Surrogate Site Location #2 Surrogate Site Location #3 Surrogate Site Location #5

Weight = 25% Data Score Data Score Data Score Data Score Data Score Data Score
2.1 FMEA/Control Plan <Help> Acceptable 3 Excellent 9 Acceptable 3 Acceptable 3 n/a 0 Excellent 9
Input Data and Score for

2.2 PPAP <Help> Acceptable 3 Acceptable 3 Excellent 9 Acceptable 3 n/a 0 Acceptable 3


each Supplier

2.3 Sub-Supplier Quality Management <Help> Acceptable 3 Excellent 9 Excellent 9 Acceptable 3 n/a 0 Acceptable 3
2.4 PM/Housekeeping <Help> Poor 0 Excellent 9 Acceptable 3 Acceptable 3 n/a 0 Acceptable 3
2.5 Problem Solving <Help> Poor 0 Excellent 9 Excellent 9 Acceptable 3 n/a 0 Acceptable 3
2.6 Lean Performance <Help> Poor 0 Excellent 9 Acceptable 3 Poor 0 n/a 0 Acceptable 3
2.7 Variability Reduction Demonstration <Help> Acceptable 3 Acceptable 3 Acceptable 3 Acceptable 3 Poor 0 Acceptable 3

max possilbeTotal weighted points=


252 48 204 156 72 0 108
Calculation
Automatic

(Each element is weighted independently)

Site Assess max possible


25% 5 % 20 % 15 % 7 % 0 % 11
Weighted % Pts. % points =

Content Contact: C. Green (CGREEN) Date Issued: 21-Mar-2002


Format Contact: B. Fagerson (BFAGERSO) / L. Blair-Johnson (LBLAIR) Page 7 of 17 Revision Date: 06-May-2002
05 ssqe-exec_summary_sample.xls 2. Quality Data Summary Matrix Revision: 10
Supplier Sourcing Quality Evaluation (SSQE) - Quality Data Summary Matrix
KEY: Higher Score is Better
Vehicle Program / MY: XXX / 2005 Design Responsibility: Supplier
Commodity: Door Trim Panels Benchmark Vehicles: BMW
STA Engineer/Date Completed: First Last Name / 25-April-2002 Benchmark Component Supplier: Supplier YYY supplies BMW X5, Z3

* Note: Surrogate data was used for this supplier in this evaluation

Supplier #1 * Supplier #2 *Supplier #3 Supplier #4 * Supplier #5 Supplier #6


Site Code #1 Not Available Not Available Site Code #4 Not Available Site Code #6

Scoring Criteria
III
Manufacturing Risk to Site Location #1 Site Location #2 TBD Site Location #4 TBD Site Location #6

Program Surrgate Location: Surrgate Location: Surrgate Location: Surrgate Location: Surrgate Location: Surrgate Location:

Surrogate Site Location #2 Surrogate Site Location #3 Surrogate Site Location #5

Weight = 15% Data Score Data Score Data Score Data Score Data Score Data Score
Input Data and
Score for each

3.1 Employee Readiness <Help> Acceptable 3 Excellent 9 Poor 0 Poor 0 Poor 0 Poor 0
Supplier

3.2 New Technology Experience <Help> Acceptable 3 Acceptable 3 Acceptable 3 Acceptable 3 Acceptable 3 Acceptable 3
3.3 Engineering / Corporate Resources <Help> Acceptable 3 Poor 0 Poor 0 Poor 0 Acceptable 3 Poor 0
3.4 Manufacturing Facility <Help> Acceptable 3 Acceptable 3 Poor 0 Poor 0 Poor 0 Poor 0

max possilbeTotal weighted points=


144 48 60 12 12 24 12
Calculation
Automatic

(Each element is weighted independently)

Mfg. Risk Weighted max possible


15% 5 % 6 % 1 % 1 % 3 % 1
% Pts. % points =

Content Contact: C. Green (CGREEN) Date Issued: 21-Mar-2002


Format Contact: B. Fagerson (BFAGERSO) / L. Blair-Johnson (LBLAIR) Page 8 of 17 Revision Date: 06-May-2002
05 ssqe-exec_summary_sample.xls 2. Quality Data Summary Matrix Revision: 10
Supplier Sourcing Quality Evaluation (SSQE) - Quality Data Summary Matrix
KEY: Higher Score is Better
Vehicle Program / MY: XXX / 2005 Design Responsibility: Supplier
Commodity: Door Trim Panels Benchmark Vehicles: BMW
STA Engineer/Date Completed: First Last Name / 25-April-2002 Benchmark Component Supplier: Supplier YYY supplies BMW X5, Z3

* Note: Surrogate data was used for this supplier in this evaluation

Supplier #1 * Supplier #2 *Supplier #3 Supplier #4 * Supplier #5 Supplier #6


Site Code #1 Not Available Not Available Site Code #4 Not Available Site Code #6
I. COMPANY / SITE
Site Location #1 Site Location #2 TBD Site Location #4 TBD Site Location #6
SUB-TOTAL
WEIGHTED % POINTS Surrgate Location: Surrgate Location: Surrgate Location: Surrgate Location: Surrgate Location: Surrgate Location:

Surrogate Site Location #2 Surrogate Site Location #3 Surrogate Site Location #5


Calculation
Automatic

I. Business Indicators
II. Site Assessment Highlights 50% 18 % 32 % 25 % 11 % 5 % 17
III. Mfg Risk to Program

Content Contact: C. Green (CGREEN) Date Issued: 21-Mar-2002


Format Contact: B. Fagerson (BFAGERSO) / L. Blair-Johnson (LBLAIR) Page 9 of 17 Revision Date: 06-May-2002
05 ssqe-exec_summary_sample.xls 2. Quality Data Summary Matrix Revision: 10
Supplier Sourcing Quality Evaluation (SSQE) - Quality Data Summary Matrix
KEY: Higher Score is Better
Vehicle Program / MY: XXX / 2005 Design Responsibility: Supplier
Commodity: Door Trim Panels Benchmark Vehicles: BMW
STA Engineer/Date Completed: First Last Name / 25-April-2002 Benchmark Component Supplier: Supplier YYY supplies BMW X5, Z3

* Note: Surrogate data was used for this supplier in this evaluation

II. PRODUCT

Supplier #1 * Supplier #2 *Supplier #3 Supplier #4 * Supplier #5 Supplier #6


Site Code #1 Not Available Not Available Site Code #4 Not Available Site Code #6

Scoring Criteria
IV Site Location #1 Site Location #2 TBD Site Location #4 TBD Site Location #6
Customer Satisfaction
Surrgate Location: Surrgate Location: Surrgate Location: Surrgate Location: Surrgate Location: Surrgate Location:

Surrogate Site Location #2 Surrogate Site Location #3 Surrogate Site Location #5

Weight = 20% Data Score Data Score Data Score Data Score Data Score Data Score
4.1 Warranty Share
Input Data and Score for

<Help> Yes / Yes 9 Yes (B-Car) 9 Yes 9 n/a 0 n/a 0 Yes 9


4.2 Warranty Reduction <Help> 3 9 3 0 0 3
each Supplier

4.3 Warranty Reduction Effectiveness <Help> Acceptable 3 Excellent 9 Acceptable 3 Poor 0 Poor 0 Acceptable 3
4.3a Memo:
Rate of change year-over-year % 10% 15% 5% 0% -5% 8%
improvement

4.4 Reliability Demonstration <Help> Acceptable 3 Excellent 9 Acceptable 3 Acceptable 3 Acceptable 3 Poor 0

max possilbeTotal weighted points=


108 48 108 45 12 12 36
Calculation
Automatic

(Each element is weighted independently)

Customer Sat max possible


20% 9 % 20 % 8 % 2 % 2 % 7
Weighted % Pts. % points =

Content Contact: C. Green (CGREEN) Date Issued: 21-Mar-2002


Format Contact: B. Fagerson (BFAGERSO) / L. Blair-Johnson (LBLAIR) Page 10 of 17 Revision Date: 06-May-2002
05 ssqe-exec_summary_sample.xls 2. Quality Data Summary Matrix Revision: 10
Supplier Sourcing Quality Evaluation (SSQE) - Quality Data Summary Matrix
KEY: Higher Score is Better
Vehicle Program / MY: XXX / 2005 Design Responsibility: Supplier
Commodity: Door Trim Panels Benchmark Vehicles: BMW
STA Engineer/Date Completed: First Last Name / 25-April-2002 Benchmark Component Supplier: Supplier YYY supplies BMW X5, Z3

* Note: Surrogate data was used for this supplier in this evaluation

Supplier #1 * Supplier #2 *Supplier #3 Supplier #4 * Supplier #5 Supplier #6


Site Code #1 Not Available Not Available Site Code #4 Not Available Site Code #6

Scoring Criteria
V Site Location #1 Site Location #2 TBD Site Location #4 TBD Site Location #6
Quality Performance
Surrgate Location: Surrgate Location: Surrgate Location: Surrgate Location: Surrgate Location: Surrgate Location:

Surrogate Site Location #2 Surrogate Site Location #3 Surrogate Site Location #5

Weight = 30% Data Score Data Score Data Score Data Score Data Score Data Score
5.1 Quality Certification <Help> Q1 9 Q1 9 Q1 9 n/a 0 n/a 0 Pending Q1 3
5.2 Q1 Score (out of 1,000 pts) <Help> 800 3 1150 9 1050 3 n/a 0 n/a 0 n/a 0
5.3 Field Actions (24 mo.) <Help> 0 9 0 9 0 9 0 9 0 9 0 9
Input Data and Score for each Supplier

5.4 No. Stop Ships (12 mo.) <Help> 3 0 0 9 0 9 0 9 0 9 0 9


Production PPM:
5.5 PPM: 6 Month <Help> 62 0 15 9 163 0 34 3 n/a 0 12 (GM) 9
5.6 Memo: 6 mo. Commodity = 60
5.7 PPM: 12 Month <Help> 515 0 22 9 49 9 46 (BMW) 9 n/a 0 27 (GM) 9
5.8 Production Delivery (6 mo. weighted
<Help> 88 3 100 9 95 9 n/a 0 88 3 n/a 0
avg.)
5.9 FCSD Delivery (6 mo. weighted
<Help> 99 9 87 3 99 9 n/a 0 n/a 0 99 9
avg.)
5.10 PSW Slips (24 mo.) <Help> 0 9 0 9 0 9 0 9 0 9 0 9
5.11 PSW Slips with no Design
<Help> PLACE HOLDER PLACE HOLDER PLACE HOLDER PLACE HOLDER PLACE HOLDER PLACE HOLDER
Changes (24 mo.)
5.12 Number of SRI'S (24 mo.) <Help> 1 3 0 9 0 9 0 9 0 9 0 9
5.13 Post-Launch Scorecard <Help> PLACE HOLDER PLACE HOLDER PLACE HOLDER PLACE HOLDER PLACE HOLDER PLACE HOLDER

max possilbeTotal weighted points=


306 138 258 228 168 150 204
Calculation
Automatic

(Each element is weighted independently)

Quality Perf max possible


30% 14 % 25 % 22 % 16 % 15 % 20
Weighted % Pts. % points =

Content Contact: C. Green (CGREEN) Date Issued: 21-Mar-2002


Format Contact: B. Fagerson (BFAGERSO) / L. Blair-Johnson (LBLAIR) Page 11 of 17 Revision Date: 06-May-2002
05 ssqe-exec_summary_sample.xls 2. Quality Data Summary Matrix Revision: 10
Supplier Sourcing Quality Evaluation (SSQE) - Quality Data Summary Matrix
KEY: Higher Score is Better
Vehicle Program / MY: XXX / 2005 Design Responsibility: Supplier
Commodity: Door Trim Panels Benchmark Vehicles: BMW
STA Engineer/Date Completed: First Last Name / 25-April-2002 Benchmark Component Supplier: Supplier YYY supplies BMW X5, Z3

* Note: Surrogate data was used for this supplier in this evaluation

Supplier #1 * Supplier #2 *Supplier #3 Supplier #4 * Supplier #5 Supplier #6


Site Code #1 Not Available Not Available Site Code #4 Not Available Site Code #6

Scoring Criteria
II. PRODUCT
Site Location #1 Site Location #2 TBD Site Location #4 TBD Site Location #6
SUB-TOTAL
WEIGHTED % POINTS Surrgate Location: Surrgate Location: Surrgate Location: Surrgate Location: Surrgate Location: Surrgate Location:

Surrogate Site Location #2 Surrogate Site Location #3 Surrogate Site Location #5


Calculation
Automatic

IV. Customer Satisfaction


50% 23 % 45 % 30 % 18 % 17 % 27
V. Quality Performance

Content Contact: C. Green (CGREEN) Date Issued: 21-Mar-2002


Format Contact: B. Fagerson (BFAGERSO) / L. Blair-Johnson (LBLAIR) Page 12 of 17 Revision Date: 06-May-2002
05 ssqe-exec_summary_sample.xls 2. Quality Data Summary Matrix Revision: 10
Supplier Sourcing Quality Evaluation (SSQE) - Quality Data Summary Matrix
KEY: Higher Score is Better
Vehicle Program / MY: XXX / 2005 Design Responsibility: Supplier
Commodity: Door Trim Panels Benchmark Vehicles: BMW
STA Engineer/Date Completed: First Last Name / 25-April-2002 Benchmark Component Supplier: Supplier YYY supplies BMW X5, Z3

* Note: Surrogate data was used for this supplier in this evaluation

Supplier #1 * Supplier #2 *Supplier #3 Supplier #4 * Supplier #5 Supplier #6


Site Code #1 Not Available Not Available Site Code #4 Not Available Site Code #6

SUMMARY Site Location #1 Site Location #2 TBD Site Location #4 TBD Site Location #6

Surrgate Location: Surrgate Location: Surrgate Location: Surrgate Location: Surrgate Location: Surrgate Location:

Surrogate Site Location #2 Surrogate Site Location #3 Surrogate Site Location #5

I. Business Indicators
II. Site Assessment Highlights 50% 18 % 32 % 25 % 11 % 5 % 17
III. Mfg Risk to Program
Automatic Calculation

IV. Customer Satisfaction


50% 23 % 45 % 30 % 18 % 17 % 27
V. Quality Performance

COMBINED SCORE 100% 41 % 77 % 55 % 29 % 22 % 44

Content Contact: C. Green (CGREEN) Date Issued: 21-Mar-2002


Format Contact: B. Fagerson (BFAGERSO) / L. Blair-Johnson (LBLAIR) Page 13 of 17 Revision Date: 06-May-2002
05 ssqe-exec_summary_sample.xls 2. Quality Data Summary Matrix Revision: 10
Supplier Ranking - Automatic Calculation Macro

COMBINED I. II. III. Sub-Total IV. V. Sub-Total


Business Site Mfg Risk to Customer Quality
SCORE
Indicators Assessment Program Satisfaction Performance
Supplier Site Code Site Location Surrogate Site Location Highlights

Weight 100% 10% 25% 15% 50% 20% 30% 50%


* Supplier #2 Not Available Site Location #2 Surrogate Site Location #2 77 6 20 6 32 20 25 45
*Supplier #3 Not Available TBD Surrogate Site Location #3 55 9 15 1 25 8 22 30
Supplier #6 Site Code #6 Site Location #6 44 5 11 1 17 7 20 27
Supplier #1 Site Code #1 Site Location #1 41 8 5 5 18 9 14 23
Supplier #4 Site Code #4 Site Location #4 29 3 7 1 11 2 16 18
* Supplier #5 Not Available TBD Surrogate Site Location #5 22 2 0 3 5 2 15 17

Date Issued: 16-Jan-2002


Originator: B. Fagerson (BFAGERSO)/L. Blair-Johnson (LBLAIR) Page 14 of 17 Date Revise 06-May-2002
05 ssqe-exec_summary_sample.xls 3. Ranking Macro Revision: 10
Sourcing for Quality - Executive Summary

Vehicle Program / Model Year: XXX / 2005


Commodity: Door Trim Panels

Selection Scoring Summary


Note: Higher Score is Better

I. COMPANY / SITE II. PRODUCT


Combined Score
I. II. III. Sub- IV. V. Sub-
Business Site Mfg Risk Total Customer Quality Total
Supplier Indicators Assessment to Satisfaction Performance
Highlights Program

WEIGHT 100% 10% 25% 15% 50% 20% 30% 50%


* Supplier #2 77 6 20 6 32 20 25 45

Weighted % Points
*Supplier #3 55 9 15 1 25 8 22 30
Supplier #6 44 5 11 1 17 7 20 27
Supplier #1 41 8 5 5 18 9 14 23
Supplier #4 29 3 7 1 11 2 16 18
* Supplier #5 22 2 0 3 5 2 15 17

50

High Capability -
40 Source

30
Product

* Supplier #2
Medium Capability -
*Supplier #3
Source with plan
20 Supplier #6

Supplier #1

Supplier #4
10 Low Capability -
* Supplier #5
Extraordinary Actions Required

0
0 10 20 30 40 50
Company / Site

Page 2f

Content Contact: C. Green (CGREEN) Date Issued: 16-Jan-2002


Format Contact: B. Fagerson /L. Blair-Johnson Date Revised: 06-May-02
05 ssqe-exec_summary_sample.xls Revision: 10
Sourcing for Quality - Executive Summary

Vehicle Program / Model Year: XXX / 2005


Commodity: Door Trim Panels
* Note: Surrogate Site information used in this evaluation

SUPPLIERS IN RANK ORDER


Supplier Name Site Location Surrogate Site Location
1 * Supplier #2 Site Location #2 Surrogate Site Location #2
2 *Supplier #3 TBD Surrogate Site Location #3
3 Supplier #6 Site Location #6
4 Supplier #1 Site Location #1
5 Supplier #4 Site Location #4
6 * Supplier #5 TBD Surrogate Site Location #5

CONSENSED SUPPLIER / SITE: * Supplier #2 Site Location #2

Rationale for Consensed Supplier (including Supplier's Strengths)


Commodity design experience exceeds 19 years. Supplier of XXX to the BMW BIC competitive vehicles, other OEM
customers include VW, Mercedes, Peugote, DCX and Saturn. Suplier #2's current XXX CPU warranty and R/1000
metrics are excellent. Reliability experts are trained and implementing robustness and reliability techniques thru the
production process. PPM/Delivery metrics are BIC. Strong QOS (BMW, Saturn, DCX) in place, including BIC
FMEA's, control plans, APQP. Processes are capable. CPk levels for Saturn XXX's range from 1.63 CPk to 5.78
CPk. Outstanding Lean implementation. Scrap/Rework improved by 20% and efficiency by 10% from 2000 to 2001.
Evidence shows Supplier #2 has a Skills Assessment Training Plan that is standard in their APQP checklist. Existing
processes to be used for manufacturing limiting new technology risk. Strong desire to bring supplier into Ford supply
base.

Key Supplier Challenges:


This supplier is new to the Ford NA supply base. The proposed site is a Greenfield Site in NA while both Engineering
and Manufacturing Centers of Excellence are located in Europe.

Workplan to Overcome Challenges:


(to be included in Sourcing Agreement)
The proposed new site will utilize experienced production personnel from an existing site. Supplier to establish an
support staff in NA to provide engineering expertise to the proposed Greenfield Site. A detailed Design and
Manufacturing work plan will be provided by <SC> and reviewed with Product Engineering, Purchasing and
Manufacturing at all regular program meetings.

Page 2

Content Contact: C. Green (CGREEN) Date Issued: 16-Jan-2002


Format Contact: B. Fagerson /L. Blair-Johnson Date Revised: 06-May-02
05 ssqe-exec_summary_sample.xls Revision: 10
Sourcing for Quality

Executive Summary

Vehicle Program / Model Year: XXX / 2005

Commodity: Door Trim Panels

Page 1

Content Contact: C. Green (CGREEN) Date Issued: 16-Jan-2002


Format Contact: B. Fagerson /L. Blair-Johnson Date Revised: 06-May-2002
05 ssqe-exec_summary_sample.xls Revision: 10
Participant Guide A Case for Change

Corporate Quality
Development Center

Supplier Quality
Segmentation
Participant Guide

Revision 2006-01
©2001, 2006 Ford Motor Company
Participant Guide A Case for Change

The subject matter contained herein is covered by a copyright owned by:


FORD MOTOR COMPANY
CORPORATE QUALITY DEVELOPMENT CENTER
DEARBORN, MI

© 2001, 2006 Ford Motor Company

This document contains information that may be proprietary.


The contents of this document may not be duplicated by any means
without the prior written permission of Ford Motor Company.

Revision 2006-01
©2001, 2006 Ford Motor Company
Participant Guide A Case for Change

Corporate Quality Development Center

Supplier Quality Segmentation

Introduction to Supplier Quality Segmentation

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

1
Revision 2006-01
©2001, 2006 Ford Motor Company
Participant Guide A Case for Change

Course Overview

Purpose

– This course focuses on the segmentation methods and metrics


necessary to manage the supply base effectively.

Goal

– The goal of this course is to help Ford Personnel understand the


quality segmentation process & how to manage a supplier site
appropriately.

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• The Supplier Quality Segmentation course is part of the Corporate Quality
Development curriculum.
• You will learn what the segmentation process is, how it is used to manage the
allocation of limited resources to support those suppliers in need, how to make a
segmentation change and the outcome of this change.

2
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©2001, 2006 Ford Motor Company
Participant Guide A Case for Change

Objectives

Upon completion of this course, you will be able to do the


following:
1. Explain the purpose of Supplier Quality Segmentation

2. Describe the Segmentation Model

3. Identify the various STA Ford Personnel responsibilities in the


Segmentation Process

4. Know how to complete a Segmentation Change Request Form


& the Segmentation Overlay Change Request Form

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

3
Revision 2006-01
©2001, 2006 Ford Motor Company
Participant Guide A Case for Change

Course Structure

Global
Supplier Quality This course is divided
Segmentation into two parts.
Training

Introduction to Supplier
Quality Segmentation

Completing a Segmentation
Change Request

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
Introduction to Supplier Quality Segmentation:
• Explores the Quality Segmentation Model, how it is applied to different supplier
situations and how to make segmentation determination.
• Explains the process of how to complete a Segmentation Change Request and the
outcome after submission.
• Assigning and tracking supplier segmentation is one of the STA Site Engineer’s
responsibility.
• The Supplier Quality Segmentation course includes additional documentation such
as appendices to refer to.

4
Revision 2006-01
©2001, 2006 Ford Motor Company
Participant Guide A Case for Change

What Is Supplier Quality Segmentation?

Supplier Quality Segmentation is:


– A process that focuses technical resources towards specific
suppliers
– A method to align quality improvement efforts towards Customer
Satisfaction and Safety
– A data model based on Q1 and Commodity Prioritization
– A method to heighten awareness where resources are needed

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• Supplier Quality Segmentation is a method of determining the level at which a
Supplier’s Q1 performance and continuous improvement efforts should be
monitored.
• Suppliers who provide Low Impact on customer Satisfaction & Safety parts and
have a history of good performance require very different management techniques
from suppliers who provide High Impact on Customer Satisfaction & Safety parts
and have a history of issues.
• This process examines each supplier site’s product and production history to
determine the risk posed by that supplier site to the overall success of a program.

5
Revision 2006-01
©2001, 2006 Ford Motor Company
Participant Guide A Case for Change

What Is Supplier Quality Segmentation?

Supplier Quality Segmentation is:


– A process that focuses technical resources towards specific Suppliers
– A method to align quality improvement efforts towards Customer
Satisfaction and Safety
– A data model based on Q1 and Commodity Prioritization
– A method to heighten awareness where resources are needed

Segmentation will help the company reach four important goals:


• Improving Quality
• Improving Quality
• Assuring Safety
• Improving Customer Satisfaction

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• Segmentation helps to identify suppliers of high and low risk based on their status.
• When the supplier site has been segmented properly, the Supplier Technical
Assistance organization or STA can prioritize the application of STA resources,
providing the most value from limited resources. This will help the company reach
four important goals:
- Improve Quality
- Improve Quality
- Assure Safety and
- Improve Customer Satisfaction.
• Segmentation is not a punitive process but rather is used to identify suppliers of
high and low risk. It allows Ford to tailor actions and different supplier relationships
depending on the supplier status.

6
Revision 2006-01
©2001, 2006 Ford Motor Company
Participant Guide A Case for Change

Why Segment Suppliers?

The supply base is segmented in order to:


– Standardize the allocation of STA resources based on Q1 &
impact on Customer Satisfaction & Safety
– Align continuous improvement efforts with a quality, safety and
customer satisfaction focus
– Develop a standardized method to evaluate Supplier
Performance
– Optimize limited STA resources

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
Why do we segment Suppliers? The supply base has been segmented for four
specific reasons:
• Standardize the allocation of STA resources based on Q1 and Impact on
Customer Satisfaction & Safety.
• Align continuous improvement efforts with a Quality, Safety and Customer
Satisfaction focus.
• Develop an efficient, standardized method to evaluate supplier performance.
• Optimize limited STA resources for maximum effectiveness.

7
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Participant Guide A Case for Change

Benefits of Quality Segmentation

Segmentation achieves the following:


– Defines the process for focusing STA resources
– Prioritizes improvement efforts on commodities that have a
larger impact on customer satisfaction and safety
– Aligns Purchasing priorities with corporate objectives
– Promotes the development of self-reliant Suppliers
– Provides new STA Engineers with an environment where it is
possible to practice supplier improvement rather than crisis
management
– Allows Purchasing and all of Ford to focus on higher risk
suppliers

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
Among other benefits, segmentation helps:
• Define the process for focusing STA resources based on the supplier’s
commodity & performance. This helps us predict resources needed to provide
supplier support.
• Prioritize Company involvement on commodities that have a larger impact on
customer satisfaction and safety.
• Improve vehicle quality, safety, and customer satisfaction through consumer and
corporate focused priorities.
• Promote the development of self reliant suppliers.
• Provide new STA Engineers with an environment where it is possible to practice
supplier improvement rather than crisis management.
• Allows a way for Ford personnel to focus on higher risk suppliers.

8
Revision 2006-01
©2001, 2006 Ford Motor Company
Participant Guide A Case for Change

Quality Segmentation Model

Suppliers are grouped into segments which allows purchasing to differentiate


differentiate
between suppliers to apply the appropriate level of technical resource.
resource.

Segment 1 or 2: Segment 3 or 4:
Q1 Status Revocation (R) Q1 Status Approved (Y)
HIGH or Approval Denied (X) or Waived & in Good Standing (W)

I. Critical III. Experienced


High Impact on Customer
High Impact on Customer
Satisfaction / Safety
Satisfaction / Safety
Q1 – Low Risk
Non Q1- High Risk

II. Significant IV. Autonomous


Low Impact on Customer Low Impact on Customer
Satisfaction / Safety Satisfaction / Safety
Non Q1 – High Risk Q1 - Low Risk
LOWER
OUTSTANDING
(Q1 Status)

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• This is the Supplier Quality Segmentation Model. Suppliers are grouped into
segments which allows Purchasing and STA to differentiate between different
suppliers and allows purchasing to provide the appropriate level of resources.
• The Quality Segmentation Model is found within the definition section of the
Quality Supply Base Segmentation Standard called PSS-001.You should print out
this model for future reference. The model can be found in the following link:
http://www.purchasing.ford.com/prch_sta_man/html/segmentation.htm

9
Revision 2006-01
©2001, 2006 Ford Motor Company
Participant Guide A Case for Change

Quality Segmentation Model

Suppliers are grouped into segments which allows purchasing to differentiate


differentiate
between suppliers to apply the appropriate level of technical resource.
resource.

HIGH

I. Critical III. Experienced

II. Significant IV. Autonomous

LOWER OUTSTANDING
(Q1 Status)

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• Horizontal axis: Suppliers are classified based upon their history and capability
(Q1 status). A supplier already successfully producing the product for Ford will be
placed to the right. A new supplier that has not had previous Ford quality production
history would be placed to the left.
• Vertical axis: Measures the commodity or product impact on customer satisfaction
or safety. The top half includes suppliers that produce commodities that have a high
impact on Customer Satisfaction and Safety while the bottom half includes suppliers
that produce commodities that have lower impact on Customer Satisfaction and
Safety.

10
Revision 2006-01
©2001, 2006 Ford Motor Company
Participant Guide A Case for Change

Quality Segmentation Model

Suppliers are grouped into segments which allows purchasing to differentiate


differentiate
between suppliers to apply the appropriate level of technical resource.
resource.

HIGH

I. Critical III. Experienced


High Impact on Customer High Impact on Customer
Satisfaction / Safety Satisfaction / Safety
Non Q1- High Risk Q1 – Low Risk

II. Significant IV. Autonomous


Low Impact on Customer Low Impact on Customer
Satisfaction / Safety Satisfaction / Safety
Non Q1 – High Risk Q1 - Low Risk

LOWER OUTSTANDING
(Q1 Status)

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• The segmentation determination is about risk to the program, to Ford and to the
customer.

11
Revision 2006-01
©2001, 2006 Ford Motor Company
Participant Guide A Case for Change

Quality Segmentation Model

Suppliers are grouped into segments which allows purchasing to differentiate


differentiate
between suppliers to apply the appropriate level of technical resource.
resource.

HIGH

I. III. Experienced
High Impact on Customer
Satisfaction / Safety
Q1 – Low Risk

II. IV. Autonomous


Low Impact on Customer
Satisfaction / Safety
Q1 - Low Risk

LOWER OUTSTANDING
(Q1 Status)

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• The lower risk sites are located on the right.
• These are suppliers that have high supplier manufacturing capability or Q1 status.

12
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©2001, 2006 Ford Motor Company
Participant Guide A Case for Change

Quality Segmentation Model

Suppliers are grouped into segments which allows purchasing to differentiate


differentiate
between suppliers to apply the appropriate level of technical resource.
resource.

HIGH

I. III. Experienced
High Impact on Customer
Satisfaction / Safety
Q1 – Low Risk

II. IV.

LOWER OUTSTANDING
(Q1 Status)

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• The segmentation is further divided based upon the Customer Satisfaction or
Safety impact of the part produced.
• If there is High Impact on Customer Satisfaction & Safety, the supplier is placed in
segment 3: Experienced.

13
Revision 2006-01
©2001, 2006 Ford Motor Company
Participant Guide A Case for Change

Quality Segmentation Model

Suppliers are grouped into segments which allows purchasing to differentiate


differentiate
between suppliers to apply the appropriate level of technical resource.
resource.

HIGH

I. III.

II. IV. Autonomous


Low Impact on Customer
Satisfaction / Safety
Q1 - Low Risk

LOWER OUTSTANDING
(Q1 Status)

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• If the Impact is Low on Customer Satisfaction & Safety, the supplier is assigned
segment 4: Autonomous.
• In either case, the suppliers on the right side require less Ford involvement and
attention.

14
Revision 2006-01
©2001, 2006 Ford Motor Company
Participant Guide A Case for Change

Quality Segmentation Model

Suppliers are grouped into segments which allows purchasing to differentiate


differentiate
between suppliers to apply the appropriate level of technical resource.
resource.

HIGH

I. Critical III.
High Impact on Customer
Satisfaction / Safety
Non Q1- High Risk

II. Significant IV.


Low Impact on Customer
Satisfaction / Safety
Non Q1 – High Risk

LOWER OUTSTANDING
(Q1 Status)

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• The higher risk suppliers are located on the left.
• These are suppliers that have low supplier manufacturing capability or NON Q1
Status. This can be due to poor performance or new product introduction which has
no production history.
• The left side is segmented into two parts based upon Customer Satisfaction or
Safety impact on the part produced.

15
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©2001, 2006 Ford Motor Company
Participant Guide A Case for Change

Quality Segmentation Model

Suppliers are grouped into segments which allows purchasing to differentiate


differentiate
between suppliers to apply the appropriate level of technical resource.
resource.

HIGH

I. Critical III.
High Impact on Customer
Satisfaction / Safety
Non Q1- High Risk

II. IV.

LOWER OUTSTANDING
(Q1 Status)

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• If there is High Impact on Customer Satisfaction & Safety, the supplier is placed in
segment 1: Critical.

16
Revision 2006-01
©2001, 2006 Ford Motor Company
Participant Guide A Case for Change

Quality Segmentation Model

Suppliers are grouped into segments which allows purchasing to differentiate


differentiate
between suppliers to apply the appropriate level of technical resource.
resource.

HIGH

I. III.

II. Significant IV.


Low Impact on Customer
Satisfaction / Safety
Non Q1 – High Risk

LOWER OUTSTANDING
(Q1 Status)

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• If the Impact is Low on Customer Satisfaction & Safety, the supplier is assigned
segment 2: Significant.
• Suppliers on the left side require more Ford involvement and attention.

17
Revision 2006-01
©2001, 2006 Ford Motor Company
Participant Guide A Case for Change

Quality Segmentation Model

Suppliers are grouped into segments which allows purchasing to differentiate


differentiate
between suppliers to apply the appropriate level of technical resource.
resource.

HIGH

I. Critical III. Experienced


High Impact on Customer High Impact on Customer
Satisfaction / Safety Satisfaction / Safety
Non Q1- High Risk Q1 – Low Risk

II. Significant IV. Autonomous


Low Impact on Customer Low Impact on Customer
Satisfaction / Safety Satisfaction / Safety
Non Q1 – High Risk Q1 - Low Risk

LOWER OUTSTANDING
(Q1 Status)

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• If a supplier has a good Q1 status and has High Impact on Customer Satisfaction
& Safety such as an instrument panel, seat, or bumper they will only be assigned to
segment 3.

18
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©2001, 2006 Ford Motor Company
Participant Guide A Case for Change

Quality Segmentation Model

Suppliers are grouped into segments which allows purchasing to differentiate


differentiate
between suppliers to apply the appropriate level of technical resource.
resource.

HIGH

I. Critical III. Experienced


High Impact on Customer High Impact on Customer
Satisfaction / Safety Satisfaction / Safety
Non Q1- High Risk Q1 – Low Risk

II. Significant IV. Autonomous


Low Impact on Customer Low Impact on Customer
Satisfaction / Safety Satisfaction / Safety
Non Q1 – High Risk Q1 - Low Risk

LOWER OUTSTANDING
(Q1 Status)

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• An item such as a spring may not be as critical so it would be assigned segment 4.

19
Revision 2006-01
©2001, 2006 Ford Motor Company
Participant Guide A Case for Change

Quality Segmentation Model

Suppliers are grouped into segments which allows purchasing to differentiate


differentiate
between suppliers to apply the appropriate level of technical resource.
resource.

HIGH

I. Critical III. Experienced


High Impact on Customer High Impact on Customer
Satisfaction / Safety Satisfaction / Safety
Non Q1- High Risk Q1 – Low Risk

II. Significant IV. Autonomous


Low Impact on Customer Low Impact on Customer
Satisfaction / Safety Satisfaction / Safety
Non Q1 – High Risk Q1 - Low Risk

LOWER OUTSTANDING
(Q1 Status)

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• The higher risk sites are located on the left.
• Higher risk suppliers are placed in Segment 1: Critical and Segment 2: Significant.
These suppliers will require more Ford involvement.
• The lower risk sites are located on the right.
• The top half includes suppliers that produce commodities that have a high impact
on Customer Satisfaction & Safety. The bottom half includes suppliers that produce
commodities that have lower impact on Customer Satisfaction & Safety.
• The STA Engineer’s focus is to help suppliers reach and stay in either segment 3
or 4.

20
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©2001, 2006 Ford Motor Company
Participant Guide A Case for Change

Quality Segmentation Model

Suppliers are grouped into segments which allows purchasing to differentiate


differentiate
between suppliers to apply the appropriate level of technical resource.
resource.

HIGH

I. Critical III. Experienced

Note:
• Suppliers with previous history beginning to produce new
product will be placed in the left segment.
II. Significant IV. Autonomous
• A site is categorized as having a High Impact on Customer
Satisfaction & Safety if it has at least one commodity
designated as High Impact on Customer Satisfaction Safety.
LOWER OUTSTANDING

(Q1 Status)

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• Please note that even if the supplier does have a previous history with Ford
producing one product, if they begin to produce a totally new product, they will be
placed to the left.
• Also a site is categorized as having a High Impact on Customer Satisfaction &
Safety if it has at least one commodity designated as High Impact on Customer
Satisfaction Safety. We will cover these in a few examples later on.

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Participant Guide A Case for Change

Overlays

Overlay: A label given to sites to identify a special case where a


site does not fit into the normal rules of segmentation. The
purpose of an overlay is to either add or remove resources
based on the impact that a site has on Ford Motor Company.
The three categories are Quality, Launch & Limited
Involvement.

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• The Quality Segmentation process “Overlay” allows suppliers to be segmented
outside the normal rules of segmentation depending on the regional STA leader’s
discretion.
• The “Segmentation Overlay Change Request Flow” will be reviewed in the 2nd
segment of this course.

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Participant Guide A Case for Change

Quality Overlay

“Quality” Overlay is a label given to a supplier with a Q1


status approved “Y” (Segment 3 or 4) that would be allowed to
be segmented in Segment 1 or 2 based on the manager’s
discretion to apply more resources to correct issues at the
supplier.

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• The first to review is the Quality Overlay. A "Quality” Overlay is a label given to a
supplier with a Q1 status approved “Y” (Segment 3 or 4) that would be allowed
to be segmented in Segment 1 or 2 based on the manager’s discretion to apply
more resources to correct issues at the supplier.

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Participant Guide A Case for Change

Quality Segmentation Model: Quality Overlay

Segment 1 or 2:
Q1 Status Revocation (R)
or Approval Denied (X)
Segment 3 or 4:
Q1 Status Approved (Y)
or Waived & in Good
•The Q1 Site, Segment 3 or 4
HIGH Standing (W)
would move to a non Q1
Segment 1 or 2.
I. Critical III. Experienced
High Impact on
High Impact on
Customer
Customer Satisfaction / Safety
Satisfaction / Safety

•The STA Engineer re-


Q1 – Low Risk
Non Q1- High Risk

II. Significant
Low Impact on
IV. Autonomous
Low Impact on
evaluates at six months for
potential re-segmenting or
Customer Customer
Satisfaction / Safety Satisfaction / Safety
Non Q1 – High Risk Q1 - Low Risk
LOWER

OUTSTANDING
Q1 Status change.
(Q1 Status)

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• After 6 months, the supplier site must either have their Q1 status change to “R”
(Revocation) or they must be re-segmented to segment 3 or 4 based on the
Safety/Customer Satisfaction impact of their commodity.
• The process requires regional STA leader’s approval prior to segmenting.

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Participant Guide A Case for Change

Launch Overlay

“Launch” Overlay is a label given to a Q1 approved supplier,


status of “Y”, (Segment 3 or 4) that requires additional STA
resources due to the support of a new model launch or to
mitigate risk at a site due to increased business through re-
sourcing actions.

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• A “Launch” Overlay is a label given to a Q1 approved supplier, status of “Y”,
(Segment 3 or 4) that requires additional STA resources due to the support of a new
model launch or to mitigate risk at a site due to increased business through re-
sourcing actions.

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Participant Guide A Case for Change

Quality Segmentation Model: Launch Overlay

•The Q1 site, would remain


Segment 1 or 2: Segment 3 or 4:
Q1 Status Revocation (R) Q1 Status Approved (Y)
or Approval Denied (X) or Waived & in Good

a segment 3 or 4, however
HIGH Standing (W)

III. Experienced

would be treated as a non


I. Critical
High Impact on
High Impact on
Customer
Customer Satisfaction / Safety
Satisfaction / Safety
Non Q1- High Risk
Q1 – Low Risk
Q1 segment 1 or 2.
II. Significant IV. Autonomous
Low Impact on Low Impact on
Customer Customer
Satisfaction / Safety Satisfaction / Safety
Non Q1 – High Risk Q1 - Low Risk
LOWER

OUTSTANDING

(Q1 Status)

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• The Q1 site would remain a segment 3 or 4, however would be treated as a non
Q1 site as a segment 1 or 2. Thus no segment change is required here, but the
resource requirement does change. Again, it's treated as a segment 1 or 2, but
remains a segment 3 or 4.

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Participant Guide A Case for Change

Limited Involvement Overlay

“Limited Involvement” Overlay is a label given to a non Q1


supplier with a Q1 status Revocation (R) or Denied (X) that
requires a reduction in STA resources.

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• The last one is the Limited Involvement Overlay. A Limited Involvement” Overlay is
a label given to a non Q1 supplier with a Q1 status Revocation (R) or Denied (X)
that requires a reduction in STA resources.

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Participant Guide A Case for Change

Quality Segmentation Model: Limited Involvement Overlay

•The non Q1 site, would


Segment 1 or 2: Segment 3 or 4:
Q1 Status Revocation (R) Q1 Status Approved (Y)
or Approval Denied (X) or Waived & in Good

remain a segment 1 or 2,
HIGH Standing (W)

III. Experienced

however would be treated


I. Critical
High Impact on
High Impact on
Customer
Customer Satisfaction / Safety
Satisfaction / Safety
Non Q1- High Risk
Q1 – Low Risk
as a Q1 segment 3 or 4.
II. Significant IV. Autonomous
Low Impact on Low Impact on
Customer Customer
Satisfaction / Safety Satisfaction / Safety
Non Q1 – High Risk Q1 - Low Risk
LOWER

OUTSTANDING

(Q1 Status)

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• The non Q1 site would remain a segment 1 or 2, however would be treated as a
Q1 site as a segment 3 or 4. Thus no segment change is required here, but the
resource requirement does change. Again, it's treated as a segment 3 or 4, but
remains a segment 1 or 2.

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Participant Guide A Case for Change

Limited Involvement Overlay

This category should be used when one of the following applies:

– An organization outside STA has accepted responsibility & applied


resources to manage non quality improvement actions (e.g. Delivery or
Environmental.)

– The site is classified short-term eliminate (STE) or equivalent & has an


acceptable site assessment action plan that creates limited risk to Ford
Motor Company.

– Has acceptable quality performance and Q1 will be awarded upon receipt


of the following certification: (ISO/TS16949 or QS9000, and ISO14001)
and acceptable assessment to MMOG or MS9000 or ODETTE.

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• The Limited Involvement Overlay should be used when one of the following
applies:
- An organization outside STA has accepted responsibility & applied resources to
manage non quality improvement actions. (e.g. Delivery or Environmental).
- The site is classified short-term eliminate (STE) or equivalent & has an acceptable
site assessment action plan that creates limited risk to Ford Motor Company.
- Has acceptable quality performance Q1 will be awarded upon receipt of
certification (QS9000, ISO/TS16949, SIO14001, MMOG/MS9000/ODETTE).

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Participant Guide A Case for Change

Quality Segmentation Model: Overlay’s

Segment 1 or 2:
Q1 Status Revocation (R)
or Approval Denied (X)
Segment 3 or 4:
Q1 Status Approved (Y)
or Waived & in Good
•Quality Overlay requires a
HIGH Standing (W)
segment change.
I. Critical III. Experienced

High Impact on
Customer
High Impact on
Customer
Satisfaction / Safety
•Launch Overly does not require
Satisfaction / Safety
Non Q1- High Risk
Q1 – Low Risk a segment change.
II. Significant
Low Impact on
IV. Autonomous
Low Impact on
•Limited Overlay does not
require a segment change.
Customer Customer
Satisfaction / Safety Satisfaction / Safety
Non Q1 – High Risk Q1 - Low Risk
LOWER

OUTSTANDING

(Q1 Status)

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• The Quality Overlay is the only one that requires a segment change. However, all
three require the submission of a "Segmentation Overly Change Request Form" as we
will be reviewing in the next part of the course.

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Participant Guide A Case for Change

Quality Segmentation Model

Suppliers are grouped into segments which allows purchasing to differentiate


differentiate
between suppliers to apply the appropriate level of technical resource.
resource.

I. Critical III. Experienced

II. Significant IV. Autonomous


Commodity Prioritization List link found at
http://www.purchasing.ford.com/prch_sta_
man/html/segmentation.htm

Procedure PSP-010 link found at


(Q1 Status) http://www.purchasing.ford.com/prch_sta_
man/html/segmentation.htm

SIM Website for


Site Q1 Status Code link found at
http://www.purchasing.ford.com/prch_qualit
y/html/search.html

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• A manufacturing site’s individual quality performance, Q1 status, and the
Customer Satisfaction and Safety of its commodities dictate the category.
• Commodities are designated as having high or low impact on Customer
Satisfaction & Safety, per the Commodity Prioritization List.
• The Buyer and STA Engineer will reference the Commodity Prioritization List to
identify the supplier part for impact on Customer Satisfaction & Safety.
• They will also reference Procedure “Q1 for External Suppliers of Production &
Service Parts Number PSP-010 & SIM” to obtain the supplier’s Q1 status.
• Remember: the Q1 status and commodity impact together determine the segment
assignment.
• There are 5 Q1 status codes which are applicable to segmentation: Y, W, X, R & A
(See Procedure PSP-010 for additional reference).

31
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©2001, 2006 Ford Motor Company
Participant Guide A Case for Change

Quality Segmentation Model

Suppliers are grouped into segments which allows purchasing to differentiate


differentiate between
suppliers to apply the appropriate level of technical resource.
Segment 1 or 2: Segment 3 or 4:
Q1 Status Revocation (R) Q1 Status Approved (Y)
HIGH or Approval Denied (X) or Waived & in Good Standing (W)

I. Critical III. Experienced


High Impact on Customer
High Impact on Customer
Satisfaction / Safety
Satisfaction / Safety
Q1 – Low Risk
Non Q1- High Risk

II. Significant IV. Autonomous


Low Impact on Customer Low Impact on Customer
Satisfaction / Safety Satisfaction / Safety
Non Q1 – High Risk Q1 - Low Risk
LOWER
OUTSTANDING
(Q1 Status)

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• A site with Q1 approved status “Y, Q1 Achieved” or “W-Waived and in good
standing” are to be segmented to the right, segments 3 or 4.
• The site engineer’s objective is to focus their efforts to move the supplier
from a 1 to a 3 or 2 to a 4 and maintain them there.
• The goal is to have all the suppliers in Segment 3 or 4. This lowers risk to
the customer and to Ford.

32
Revision 2006-01
©2001, 2006 Ford Motor Company
Participant Guide A Case for Change

Quality Segmentation Model

Suppliers are grouped into segments which allows purchasing to differentiate


differentiate between
suppliers to apply the appropriate level of technical resource.
Segment 1 or 2: Segment 3 or 4:
Q1 Status Revocation (R) Q1 Status Approved (Y)
HIGH or Approval Denied (X) or Waived & in Good Standing (W)

I. Critical III. Experienced


High Impact on Customer
High Impact on Customer
Satisfaction / Safety
Satisfaction / Safety
Q1 – Low Risk
Non Q1- High Risk

II. Significant IV. Autonomous


Low Impact on Customer Low Impact on Customer
Satisfaction / Safety Satisfaction / Safety
Non Q1 – High Risk Q1 - Low Risk
LOWER
OUTSTANDING
(Q1 Status)

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• As a reminder, this is not a punitive model but is used to identify suppliers of
high and low risk. A supplier who has had previous history with Ford producing a
part has a lower level of risk than the supplier new to Ford producing a new part.
• The purpose of this model is to identify suppliers with higher levels of risk so that
more resources can be brought to bear to minimize that risk.

33
Revision 2006-01
©2001, 2006 Ford Motor Company
Participant Guide A Case for Change

Quality Segmentation Model

Suppliers are grouped into segments which allows purchasing to differentiate


differentiate between
suppliers to apply the appropriate level of technical resource.
Segment 1 or 2: Segment 3 or 4:
Q1 Status Revocation (R) Q1 Status Approved (Y)
HIGH or Approval Denied (X) or Waived & in Good Standing (W)

I. Critical III. Experienced


High Impact on Customer
High Impact on Customer
Satisfaction / Safety
Sites with
Satisfaction a status code of “A- Awaiting Q1 approval” are to
/ Safety
Q1 – Low Risk
be segmented
Non Q1- High Risk along the x axis (the left or right side of the
model) based on the STA manager’s discretion.
II. Significant
Sites with a Q1 Status code of IV.
“D Autonomous
– Requiring Disposition”
Low Impact on Customer Low Impact on Customer
should not be segmented and require an alternate Q1
Satisfaction / Safety Satisfaction / Safety
status prior to segmenting.
Non Q1 – High Risk Q1 - Low Risk
LOWER
OUTSTANDING
(Q1 Status)

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• There are a few unique situations to be mentioned here: Sites with a status code
of “A - Awaiting Q1 approval” are to be segmented along the x axis (the left or
right side of the model) based on the STA manager’s discretion. Sites with a Q1
Status code of “D – Q1 Site Assessment Required” should not be segmented
and require an alternate Q1 status prior to segmenting. We will discuss these
codes later in the second part of course.

34
Revision 2006-01
©2001, 2006 Ford Motor Company
Participant Guide A Case for Change

Quality Segmentation Model

Suppliers are grouped into segments which allows purchasing to differentiate


differentiate between
suppliers to apply the appropriate level of technical resource.
Segment 1 or 2: Segment 3 or 4:
Q1 Status Revocation (R) Q1 Status Approved (Y)
HIGH or Approval Denied (X) or Waived & in Good Standing (W)

I. Critical III. Experienced


High Impact on Customer
High Impact on Customer
Satisfaction / Safety
Satisfaction / Safety
Q1 – Low Risk
Non Q1- High Risk

II. Significant IV. Autonomous


Low Impact on Customer Low Impact on Customer
Satisfaction / Safety Satisfaction / Safety
Non Q1 – High Risk Q1 - Low Risk
LOWER
OUTSTANDING
(Q1 Status)

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• When a Q1 Status Code is changed from Y or W to R or X respectively, the
supplier's segment will be changed from 3 or 4 to 1 or 2 respectively.
• Notice that assuming the supplier does not change the products that it makes,
the movement is only horizontal. The supplier is moved from segment 3 to 1 or
from segment 4 to 2. In these cases it will be necessary to file a Segmentation
Change Request. This will be the subject of the second part of course.

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Participant Guide A Case for Change

Quality Segmentation Model: Example

Segment 1 or 2:
Q1 Status Revocation (R)
Segment 3 or 4:
Q1 Status Approved (Y) Supplier #1: J&J Company
or Approval Denied (X) or Waived & in Good
HIGH Standing (W)
• J&J has recently started producing
I. Critical III. Experienced
High Impact on
Odometers, a Low Impact on
High Impact on
Customer
Customer
Satisfaction / Safety Customer Satisfaction & Safety
Satisfaction / Safety
Non Q1- High Risk
Q1 – Low Risk
Item, for one of the SUV’s
II. Significant
Low Impact on
IV. Autonomous
Low Impact on
• J&J is a relatively new supplier to
Customer
Satisfaction / Safety
Customer
Satisfaction / Safety
Ford
Non Q1 – High Risk Q1 - Low Risk
LOWER • Recently lost their Q1 Status due
OUTSTANDING
to poor quality
(Q1 Status)

What do you think their segmentation designation would be?


See next slide for answer.

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• Let’s look at a few examples. Please remember both your Segmentation Model &
Commodity Prioritization List are the two references when determining your site
segment.
• For our first example let’s look at the J&J Company: J&J Company has been
producing Odometers which is Low Impact on Customer Satisfaction & Safety for
Ford on one of our SUV's. J&J is relatively new to Ford but has received great
praise throughout the industry as a company that provides a quality product.
Recently J&J had had some quality problems with their product and as a result has
lost their Q1 status. Based upon the information what do you think their
segmentation designation would be?

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Participant Guide A Case for Change

Quality Segmentation Model: Example

Segment 1 or 2:
Q1 Status Revocation (R)
Segment 3 or 4:
Q1 Status Approved (Y) Supplier #1: J&J Company
or Approval Denied (X) or Waived & in Good
HIGH Standing (W)
• J&J has recently started producing
I. Critical III. Experienced
High Impact on
Odometers, a Low Impact on
High Impact on
Customer
Customer
Satisfaction / Safety Customer Satisfaction & Safety
Satisfaction / Safety
Non Q1- High Risk
Q1 – Low Risk
Item, for one of the SUV’s
II. Significant
Low Impact on
IV. Autonomous
Low Impact on
• J&J is a relatively new supplier to
Customer
Satisfaction / Safety
Customer
Satisfaction / Safety
Ford
Non Q1 – High Risk Q1 - Low Risk
LOWER • Recently lost their Q1 Status due
OUTSTANDING
to poor quality
(Q1 Status)

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• If you answered “2: Significant” you are right… Because they are producing a
product that has Low Impact on Customer Satisfaction & Safety and recently have
lost their Q1 status they should receive a Segment designation of “2: Significant”.
Thus moving the segment from 4: Autonomous to 2: Significant.
• Repeat the analysis assuming J&J makes a High Impact on Customer Satisfaction
& Safety Item. The segment would then move from 3: Experienced to 1: Critical.

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Participant Guide A Case for Change

Quality Segmentation Model: Example

Segment 1 or 2:
Q1 Status Revocation (R)
Segment 3 or 4:
Q1 Status Approved (Y)
Supplier #2: LMS Enterprises
or Approval Denied (X) or Waived & in Good
HIGH Standing (W)
•LMS produces retaining clips for
I. Critical III. Experienced
High Impact on
door panels, a Low Impact on
High Impact on
Customer
Customer
Satisfaction / Safety Customer Satisfaction & Safety
Satisfaction / Safety
Non Q1- High Risk
Q1 – Low Risk
Item
II. Significant
Low Impact on
IV. Autonomous
Low Impact on
•Was High Risk – Non Q1,
Customer
Satisfaction / Safety
Customer
Satisfaction / Safety
recently regained Q1 Status
Non Q1 – High Risk Q1 - Low Risk
LOWER •They are coming up for their
OUTSTANDING
monthly review
(Q1 Status)

What do you think their segmentation designation would be?


See next slide for answer.

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• The second example is LMS Enterprises: LMS produces retaining clips, Low
Impact on Customer Satisfaction & Safety, for door panels for Ford. LMS is
currently classified as High Risk – Non Q1. Recently, they regained their Q1 Status.
Now it is time for their monthly review. What should their segmentation designation
be for the next month?

38
Revision 2006-01
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Participant Guide A Case for Change

Quality Segmentation Model: Example

Segment 1 or 2:
Q1 Status Revocation (R)
Segment 3 or 4:
Q1 Status Approved (Y)
Supplier #2: LMS Enterprises
or Approval Denied (X) or Waived & in Good
HIGH Standing (W)
•LMS produces retaining clips for
I. Critical III. Experienced
High Impact on
door panels, a Low Impact on
High Impact on
Customer
Customer
Satisfaction / Safety Customer Satisfaction & Safety
Satisfaction / Safety
Non Q1- High Risk
Q1 – Low Risk
Item
II. Significant
Low Impact on
IV. Autonomous
Low Impact on
•Was High Risk – Non Q1,
Customer
Satisfaction / Safety
Customer
Satisfaction / Safety
recently regained Q1 Status
Non Q1 – High Risk Q1 - Low Risk
LOWER •They are coming up for their
OUTSTANDING
monthly review
(Q1 Status)

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• If you decided that the designation would change to “4: Autonomous” you were
right… because they have Q1 status and produce a product that has a Low Impact
on Customer Satisfaction & Safety they should receive segmentation status “4:
Autonomous” thus this site has moved from a Segment 2: Significant to 4:
Autonomous.
• Again, repeat the analysis assuming LMS makes a High Impact on Customer
Satisfaction & Safety Item. The segment would then move from 1: Critical to 3:
Experienced.

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Quality Segmentation Model: Example

Segment 1 or 2:
Q1 Status Revocation (R)
Segment 3 or 4:
Q1 Status Approved (Y) Supplier #3: ABC Company
or Approval Denied (X) or Waived & in Good

•Q1 provider of Door Latches &


HIGH Standing (W)

I. Critical III. Experienced


High Impact on
Body Side Moulding
High Impact on
Customer
Customer
Satisfaction / Safety
Satisfaction / Safety
Q1 – Low Risk
•Door latches are considered
High Impact on Customer
Non Q1- High Risk

II. Significant
Low Impact on
IV. Autonomous
Low Impact on
Satisfaction & Safety items –
Customer
Satisfaction / Safety
Customer
Satisfaction / Safety
contract expired
Non Q1 – High Risk Q1 - Low Risk
LOWER •Body Side Mouldings are
(Q1 Status)
OUTSTANDING
considered Low Impact on
Customer Satisfaction & Safety
items

What do you think their segmentation designation would be?


See next slide for answer.

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• Let’s look at another example: ABC has been a long time quality provider of Door
Latches & Body Side Molding to Ford Motor Company. Door latches are identified
as High Impact to Customer Satisfaction & Safety & Body Side Molding are Low
Impact to Customer Satisfaction & Safety. They have held Q1 Status for their latch
assemblies & Body Side Moldings for 3 years. Therefore, they held a segmentation
rating of “3: Experienced” for that period. Recently their contract expired for the
Door Latches.
• Based upon the information what do you think their segmentation designation
would be?

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Quality Segmentation Model: Example

Segment 1 or 2:
Q1 Status Revocation (R)
Segment 3 or 4:
Q1 Status Approved (Y) Supplier #3: ABC Company
or Approval Denied (X) or Waived & in Good

•Q1 provider of Door Latches &


HIGH Standing (W)

I. Critical III. Experienced


High Impact on
Body Side Moulding
High Impact on
Customer
Customer
Satisfaction / Safety
Satisfaction / Safety
Q1 – Low Risk
•Door latches are considered
High Impact on Customer
Non Q1- High Risk

II. Significant
Low Impact on
IV. Autonomous
Low Impact on
Satisfaction & Safety items –
Customer
Satisfaction / Safety
Customer
Satisfaction / Safety
contract expired
Non Q1 – High Risk Q1 - Low Risk
LOWER •Body Side Mouldings are
(Q1 Status)
OUTSTANDING
considered Low Impact on
Customer Satisfaction & Safety
items

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• If you decided that the designation is “Segment 4: Autonomous” you were
right…their only High Impact on Customer Satisfaction & Safety part is being
eliminated, therefore leaving only a Low Impact on Customer Satisfaction part, thus
designation of segment 4: Autonomous. Again, both the Q1 Status & Impact on
Customer Satisfaction & Safety determine the segment. As these examples show
several factors need to be taken into account when making segmentation
assignments. Each product must be taken into account as well as the Q1 status of
the facility. Further this assessment is reviewed and updated annually.

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Summary

Segmentation Process Quality Tools


I. Critical III. Experienced FMEA SPC
Control Plans DOE
Phased PPAP Lean Manufacturing
Global 8D Analysis Six- Sigma
II. Significant IV. Autonomous

(Q1 Status)

Q1
For additional Q1 Information:
http://www.purchasing.ford.com/prch
_sta_man/html/Q1Information.html

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• The site engineer’s objective is to focus his/her efforts to move the supplier from a
1 to a 3 or 2 to a 4 and then maintain them there.
• Segmentation is an important part of the overall quality picture. It provides a
method to guide the focus for applying a wide variety of quality tools such as FMEA,
Control Plans and Six Sigma. These tools will result in improved segmentation
assignment and ultimately improved quality.
• In the next part of the course we will explore the process for registering the
assigned segmentation designation into the SIM system. In addition, we will explore
how to make a Segmentation Request and the process when the request is
submitted.

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Participant Guide A Case for Change

Corporate Quality Development Center

Supplier Quality Segmentation

Documenting Assigned Segmentation

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

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Participant Guide A Case for Change

Objectives

Upon completion of this course, you will be able to do the


following:
1. Identify the various STA Ford Personnel responsibilities in the
Segmentation Change Request Flow Chart

2. Complete a Segmentation Change Request Form

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
For this part of the course, you will utilize the following 2 documents:
• Segmentation Change Request Flow Chart
• Segmentation Change Request Form
Please ensure you have them in your material prior to proceeding. They
are also available at:
http://www.edrwas.ford.com/launchomatic/launch/view.jsp?chronicleld=
9000c51804d57b7&docbase=edrdoc1
http://www.purchasing.ford.com/prch_sta_man/html/segmentation.htm

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Participant Guide A Case for Change

Segmentation Change Request Form

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• Once the segmentation designation is completed, the value must be assigned in
the SIM system for that supplier.
• In most cases, suppliers are already segmented. For a new site or initial
segmentation, the segmentation designation will be determined based upon the
initial site assessment, which will be discussed later.
• The purpose of the Segmentation Change Request Form is to make a
segmentation change.
• The Segmentation Change Request Flow Chart in the next page explains the
process of completing the form including roles and responsibilities.

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Segmentation Change Request Flow Chart

Legend:
2A Definition: The Impact on Customer Satisfaction & Safety with Q1 Status Code both dictate the Segment l, ll, lll
1A 3A
Yes Has the Q1 or lV.
Is this an Existing Yes If High Impact on Cust. Sat./Safety move to Seg. III
Status 5A Q1 Codes Recognized for Segmentation Process: A,Y,R,X,& W; others are not.
Site? If Low Impact on Cust. Sat./Safety move to Seg. IV
Changed Complete the Q1 Status - A code that defines whether or not a supplier manufacturing location meets
(Monthly Reviews
to "Y" Form/Equivalent Spread the minimum quality requirements for doing business with Ford Motor Company.
Recommended)
or "W"? Yes Sheet by Adding the See PSP-010 & Q1 Book.
4A
Current & New STA 1A Evaluate Site for Potential Segmentation Change. Monthly Reviews Recommended.
Does the Current STA
Org. Codes & the New 1B.A site with a Q1 Status code of "D" (Disposition required, risk not assessed) requires a site assessment and
Organization Code
STA Eng's. Name & assignment of the appropriate Q1 status code (other than "D") before it can be segmented. Once assessed for risk and
No Change?
CDSID. Obtain the with a Q1 status code other than "D", the site becomes an existing site, go back to 1A. See PSP-010 for an explanation
3B Current & New Site of the Q1 status codes.
2B If High Impact on Cust. Sat./Safety No Manager's Signatures Q1 Site Assessment Required (D) is the default code upon site activation.
Yes move to Seg. I 2A. See Std. PSS-001 4.1.5
1B Has the Q1
Is this a New Site/Initial Status Changed If Low Impact on Cust. Sat./Safety 2B. See Std. PSS-001 4.1.12
Segmentation? move to Seg. II 2C. See Std. PSS-001 4.1.9
to "R" or "X"?
STA (Q1 Site Assessment 3A, 3B See PSS-001 Segmentation Model
4B
Site Engineer Required. See Legend) 4A,4B, 4C/5A,5B. A meeting between the two responsible areas of the described organizational code. Not applicable to
Complete the
No Europe.
Form/Equivalent
Spread Sheet by
adding the Current
STA Organization To activate the Link to the Quality Segmentation Home page:
Code & Obtain the Right click the Legend Box & scroll down to the Segmentation Home Page & select.
Current Site (http://www.purchasing.ford.com/prch_sta_man/html/segmentation.htm)
Manager's
Signature

6A
Fax or email the Completed
Form/Equivalent Spread
Sheet to SBO Segmentation

2C 4C
5B
Q1 Status Obtain the Current
Obtain the Current &
Changed to "A" Site Manager's
New Site Manager's
STA Site Segmentation at Signature
Signatures
Manager STA Manager's
Discretion

6B 8
Receive 7A No Retain Copy for 3
Form/Equivalent Spread Is the STA Org Code years per STA
SBO- Sheet & Update Changing? Quality Records
Segmentation Segmentation of the Matrix
Leader site. Yes

7B
Update Org Code
& STA Engineer in
STAGSDB GSDB (SIM
Updated)

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• The Segmentation Process Flowchart defines the roles, responsibilities,
documents, forms, and timing of all activities within the segmentation change
process.

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Segmentation Change Request Flow Chart : Roles

Legend:
2A Definition: The Impact on Customer Satisfaction & Safety with Q1 Status Code both dictate the Segment l, ll, lll
1A 3A
Yes Has the Q1 or lV.
Is this an Existing Yes If High Impact on Cust. Sat./Safety move to Seg. III
Status 5A Q1 Codes Recognized for Segmentation Process: A,Y,R,X,& W; others are not.
Site? If Low Impact on Cust. Sat./Safety move to Seg. IV
Changed Q1 Status - A code that defines whether or not a supplier manufacturing location meets
(Monthly Reviews Complete the
to "Y" the minimum quality requirements for doing business with Ford Motor Company.
Recommended) Form/Equivalent Spread
or "W"? Yes Sheet by Adding the See PSP-010 & Q1 Book.
4A
1A Evaluate Site for Potential Segmentation Change. Monthly Reviews Recommended.
Does the Current STA Current & New STA
1B.A site with a Q1 Status code of "D" (Disposition required, risk not assessed) requires a site assessment and
Organization Code Org. Codes & the New
STA Eng's. Name & assignment of the appropriate Q1 status code (other than "D") before it can be segmented. Once assessed for risk and
No Change?
with a Q1 status code other than "D", the site becomes an existing site, go back to 1A. See PSP-010 for an explanation
CDSID. Obtain the
3B of the Q1 status codes.
Current & New Site
If High Impact on Cust. Sat./Safety No Manager's Signatures Q1 Site Assessment Required (D) is the default code upon site activation.
2B Yes
1B move to Seg. I 2A. See Std. PSS-001 4.1.5
Has the Q1
Is this a New Site/Initial If Low Impact on Cust. Sat./Safety 2B. See Std. PSS-001 4.1.12
Status Changed
Segmentation? move to Seg. II 2C. See Std. PSS-001 4.1.9
to "R" or "X"?
STA (Q1 Site Assessment 3A, 3B See PSS-001 Segmentation Model
4B
Site Engineer Required. See Legend) 4A,4B, 4C/5A,5B. A meeting between the two responsible areas of the described organizational code. Not applicable to
Complete the
No Europe.
Form/Equivalent
Spread Sheet by
adding the Current
STA Organization To activate the Link to the Quality Segmentation Home page:
Code & Obtain the Right click the Legend Box & scroll down to the Segmentation Home Page & select.
Current Site (http://www.purchasing.ford.com/prch_sta_man/html/segmentation.htm)
Manager's
Signature

6A
Fax or email the Completed
Form/Equivalent Spread
Sheet to SBO Segmentation

2C 4C
5B
Q1 Status Obtain the Current
Obtain the Current &
Changed to "A" Site Manager's
New Site Manager's
STA Site Segmentation at Signature
Signatures
Manager STA Manager's
Discretion

6B 8
Receive 7A No Retain Copy for 3
Form/Equivalent Spread Is the STA Org Code years per STA
SBO- Sheet & Update Changing? Quality Records
Segmentation Segmentation of the Matrix
Leader site. Yes

7B
Update Org Code
& STA Engineer in
STAGSDB GSDB (SIM
Updated)

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• The left column list WHO is involved in this process.
• The STA Engineer is responsible for assessing the risk level and assigning the
segmentation designation.

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Segmentation Change Request Flow Chart : Workflow

Legend:
2A Definition: The Impact on Customer Satisfaction & Safety with Q1 Status Code both dictate the Segment l, ll, lll
1A 3A
Yes Has the Q1 or lV.
Is this an Existing Yes If High Impact on Cust. Sat./Safety move to Seg. III
Status 5A Q1 Codes Recognized for Segmentation Process: A,Y,R,X,& W; others are not.
Site? If Low Impact on Cust. Sat./Safety move to Seg. IV
Changed Q1 Status - A code that defines whether or not a supplier manufacturing location meets
(Monthly Reviews Complete the
to "Y" Form/Equivalent Spread the minimum quality requirements for doing business with Ford Motor Company.
Recommended)
or "W"? Yes Sheet by Adding the See PSP-010 & Q1 Book.
4A
Current & New STA 1A Evaluate Site for Potential Segmentation Change. Monthly Reviews Recommended.
Does the Current STA
1B.A site with a Q1 Status code of "D" (Disposition required, risk not assessed) requires a site assessment and
Organization Code Org. Codes & the New
STA Eng's. Name & assignment of the appropriate Q1 status code (other than "D") before it can be segmented. Once assessed for risk and
No Change?
CDSID. Obtain the with a Q1 status code other than "D", the site becomes an existing site, go back to 1A. See PSP-010 for an explanation
3B Current & New Site of the Q1 status codes.
If High Impact on Cust. Sat./Safety No Q1 Site Assessment Required (D) is the default code upon site activation.
2B Yes Manager's Signatures
1B move to Seg. I 2A. See Std. PSS-001 4.1.5
Has the Q1
Is this a New Site/Initial If Low Impact on Cust. Sat./Safety 2B. See Std. PSS-001 4.1.12
Status Changed
Segmentation? move to Seg. II 2C. See Std. PSS-001 4.1.9
to "R" or "X"?
STA (Q1 Site Assessment 3A, 3B See PSS-001 Segmentation Model
4B
Site Engineer Required. See Legend) 4A,4B, 4C/5A,5B. A meeting between the two responsible areas of the described organizational code. Not applicable to
Complete the
No Europe.
Form/Equivalent
Spread Sheet by
adding the Current
STA Organization To activate the Link to the Quality Segmentation Home page:
Code & Obtain the Right click the Legend Box & scroll down to the Segmentation Home Page & select.
Current Site (http://www.purchasing.ford.com/prch_sta_man/html/segmentation.htm)
Manager's
Signature

6A
Fax or email the Completed
Form/Equivalent Spread
Sheet to SBO Segmentation

2C 4C
5B
Q1 Status Obtain the Current
Obtain the Current &
Changed to "A" Site Manager's
New Site Manager's
STA Site Segmentation at Signature
Signatures
Manager STA Manager's
Discretion

6B 8
Receive 7A No Retain Copy for 3
Form/Equivalent Spread Is the STA Org Code years per STA
SBO- Sheet & Update Changing? Quality Records
Segmentation Segmentation of the Matrix
Leader site. Yes

7B
Update Org Code
& STA Engineer in
STAGSDB GSDB (SIM
Updated)

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• The body of the workflow displays a step by step approach to the Segmentation
Change Process, itemized by role and time.
• Like a timeline, the left to right flow of the document indicates the passage of time.
• Each person has an individual row describing his or her respective tasks.

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Segmentation Change Request Flow Chart : Elapsed Time

Legend:
2A Definition: The Impact on Customer Satisfaction & Safety with Q1 Status Code both dictate the Segment l, ll, lll
1A 3A
Yes Has the Q1 or lV.
Is this an Existing Yes If High Impact on Cust. Sat./Safety move to Seg. III
Status Q1 Codes Recognized for Segmentation Process: A,Y,R,X,& W; others are not.
Site? If Low Impact on Cust. Sat./Safety move to Seg. IV 5A
Changed Q1 Status - A code that defines whether or not a supplier manufacturing location meets
(Monthly Reviews Complete the
to "Y" Form/Equivalent Spread the minimum quality requirements for doing business with Ford Motor Company.
Recommended)
or "W"? Yes Sheet by Adding the See PSP-010 & Q1 Book.
4A
1A Evaluate Site for Potential Segmentation Change. Monthly Reviews Recommended.
Does the Current STA Current & New STA
1B.A site with a Q1 Status code of "D" (Disposition required, risk not assessed) requires a site assessment and
Organization Code Org. Codes & the New
STA Eng's. Name & assignment of the appropriate Q1 status code (other than "D") before it can be segmented. Once assessed for risk and
No Change?
CDSID. Obtain the with a Q1 status code other than "D", the site becomes an existing site, go back to 1A. See PSP-010 for an explanation
3B of the Q1 status codes.
Current & New Site
If High Impact on Cust. Sat./Safety No Manager's Signatures Q1 Site Assessment Required (D) is the default code upon site activation.
2B Yes
1B move to Seg. I 2A. See Std. PSS-001 4.1.5
Has the Q1
Is this a New Site/Initial If Low Impact on Cust. Sat./Safety 2B. See Std. PSS-001 4.1.12
Status Changed
Segmentation? move to Seg. II 2C. See Std. PSS-001 4.1.9
to "R" or "X"?
STA (Q1 Site Assessment 3A, 3B See PSS-001 Segmentation Model
4B
Site Engineer Required. See Legend) 4A,4B, 4C/5A,5B. A meeting between the two responsible areas of the described organizational code. Not applicable to
Complete the
No Europe.
Form/Equivalent
Spread Sheet by
adding the Current
STA Organization To activate the Link to the Quality Segmentation Home page:
Code & Obtain the Right click the Legend Box & scroll down to the Segmentation Home Page & select.
Current Site (http://www.purchasing.ford.com/prch_sta_man/html/segmentation.htm)
Manager's
Signature

6A
Fax or email the Completed
Form/Equivalent Spread
Sheet to SBO Segmentation

2C 4C
5B
Q1 Status Obtain the Current
Obtain the Current &
Changed to "A" Site Manager's
New Site Manager's
STA Site Segmentation at Signature
Signatures
Manager STA Manager's
Discretion

6B 8
Receive 7A No Retain Copy for 3
Form/Equivalent Spread Is the STA Org Code years per STA
SBO- Sheet & Update Changing? Quality Records
Segmentation Segmentation of the Matrix
Leader site. Yes

7B
Update Org Code
& STA Engineer in
STAGSDB GSDB (SIM
Updated)

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• Stacked items represent simultaneous activities. Each column represents a
discrete time interval during which a task is completed, either together or
independently.

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Segmentation Change Request Flow Chart : Legend

Legend:
2A Definition: The Impact on Customer Satisfaction & Safety with Q1 Status Code both dictate the Segment l, ll, lll
1A 3A
Yes Has the Q1 or lV.
Is this an Existing Yes If High Impact on Cust. Sat./Safety move to Seg. III
Status Q1 Codes Recognized for Segmentation Process: A,Y,R,X,& W; others are not.
Site? If Low Impact on Cust. Sat./Safety move to Seg. IV 5A
Changed Q1 Status - A code that defines whether or not a supplier manufacturing location meets
(Monthly Reviews Complete the
to "Y" Form/Equivalent Spread the minimum quality requirements for doing business with Ford Motor Company.
Recommended)
or "W"? Yes Sheet by Adding the See PSP-010 & Q1 Book.
4A
1A Evaluate Site for Potential Segmentation Change. Monthly Reviews Recommended.
Does the Current STA Current & New STA
1B.A site with a Q1 Status code of "D" (Disposition required, risk not assessed) requires a site assessment and
Organization Code Org. Codes & the New
STA Eng's. Name & assignment of the appropriate Q1 status code (other than "D") before it can be segmented. Once assessed for risk and
No Change?
CDSID. Obtain the with a Q1 status code other than "D", the site becomes an existing site, go back to 1A. See PSP-010 for an explanation
3B of the Q1 status codes.
Current & New Site
If High Impact on Cust. Sat./Safety No Manager's Signatures Q1 Site Assessment Required (D) is the default code upon site activation.
2B Yes
1B move to Seg. I 2A. See Std. PSS-001 4.1.5
Has the Q1
Is this a New Site/Initial If Low Impact on Cust. Sat./Safety 2B. See Std. PSS-001 4.1.12
Status Changed
Segmentation? move to Seg. II 2C. See Std. PSS-001 4.1.9
to "R" or "X"?
STA (Q1 Site Assessment 3A, 3B See PSS-001 Segmentation Model
4B
Site Engineer Required. See Legend) 4A,4B, 4C/5A,5B. A meeting between the two responsible areas of the described organizational code. Not applicable to
Complete the
No Europe.
Form/Equivalent
Spread Sheet by
adding the Current
STA Organization To activate the Link to the Quality Segmentation Home page:
Code & Obtain the Right click the Legend Box & scroll down to the Segmentation Home Page & select.
Current Site (http://www.purchasing.ford.com/prch_sta_man/html/segmentation.htm)
Manager's
Signature

6A
Fax or email the Completed
Form/Equivalent Spread
Sheet to SBO Segmentation

2C 4C
5B
Q1 Status Obtain the Current
Obtain the Current &
Changed to "A" Site Manager's
New Site Manager's
STA Site Segmentation at Signature
Signatures
Manager STA Manager's
Discretion

6B 8
Receive 7A No Retain Copy for 3
Form/Equivalent Spread Is the STA Org Code years per STA
SBO- Sheet & Update Changing? Quality Records
Segmentation Segmentation of the Matrix
Leader site. Yes

7B
Update Org Code
& STA Engineer in
STAGSDB GSDB (SIM
Updated)

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• The legend box contains notes on each task. It provides specific directions and/or
references to additional resources that can be found on the Quality Segmentation
homepage.

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Participant Guide A Case for Change

Segmentation Change Request Process Workflow

1A
Is this an Existing Yes
2A
Has the Q1 Yes
1A 3A
If High Impact on Cust. Sat./Safety move to Seg. III
Legend:
Definition: The Impact on Customer Satisfaction & Safety with Q1 Status Code both dictate the Segment l, ll, lll
or lV.

Is this an existing Site?


Status Q1 Codes Recognized for Segmentation Process: A,Y,R,X,& W; others are not.
Site? If Low Impact on Cust. Sat./Safety move to Seg. IV 5A
Changed Q1 Status - A code that defines whether or not a supplier manufacturing location meets
(Monthly Reviews Complete the
to "Y" Form/Equivalent Spread the minimum quality requirements for doing business with Ford Motor Company.
Recommended)
or "W"? Yes Sheet by Adding the See PSP-010 & Q1 Book.
4A
1A Evaluate Site for Potential Segmentation Change. Monthly Reviews Recommended.

(Monthly reviews Recommended)


Does the Current STA Current & New STA
1B.A site with a Q1 Status code of "D" (Disposition required, risk not assessed) requires a site assessment and
Organization Code Org. Codes & the New
STA Eng's. Name & assignment of the appropriate Q1 status code (other than "D") before it can be segmented. Once assessed for risk and
No Change?
CDSID. Obtain the with a Q1 status code other than "D", the site becomes an existing site, go back to 1A. See PSP-010 for an explanation
3B of the Q1 status codes.
Current & New Site
If High Impact on Cust. Sat./Safety No Manager's Signatures Q1 Site Assessment Required (D) is the default code upon site activation.
2B Yes
1B move to Seg. I 2A. See Std. PSS-001 4.1.5
Has the Q1
Is this a New Site/Initial If Low Impact on Cust. Sat./Safety 2B. See Std. PSS-001 4.1.12
Status Changed
Segmentation? move to Seg. II 2C. See Std. PSS-001 4.1.9
to "R" or "X"?

1B
STA (Q1 Site Assessment 3A, 3B See PSS-001 Segmentation Model
4B
Site Engineer Required. See Legend) 4A,4B, 4C/5A,5B. A meeting between the two responsible areas of the described organizational code. Not applicable to
Complete the
No Europe.
Form/Equivalent
Spread Sheet by

Is this a New Site/ Initial Segmentation?


adding the Current
STA Organization To activate the Link to the Quality Segmentation Home page:
Code & Obtain the Right click the Legend Box & scroll down to the Segmentation Home Page & select.
Current Site (http://www.purchasing.ford.com/prch_sta_man/html/segmentation.htm)

Q1 Site Assessment Required. See Legend.


Manager's
Signature

6A
Fax or email the Completed
Form/Equivalent Spread
Sheet to SBO Segmentation

STA Site Engineer initiates a Segmentation Change Request


2C 4C
5B
Q1 Status Obtain the Current
Obtain the Current &
Changed to "A" Site Manager's
New Site Manager's
STA Site Segmentation at Signature

• Existing Site
Signatures
Manager STA Manager's
Discretion

• Evaluate site for potential segmentation change 6B


Receive 7A No
8
Retain Copy for 3

• Monthly reviews recommended


Form/Equivalent Spread Is the STA Org Code years per STA
SBO- Sheet & Update Changing? Quality Records
Segmentation Segmentation of the Matrix
Leader site. Yes

• New Site
• Q1 Site Assessment Required (should not be 7B
Update Org Code
& STA Engineer in

segmented & should be assigned a Q1 Status)


STAGSDB GSDB (SIM
Updated)

• “D” (default code upon site activation)

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• Refer to the Segmentation Change Request Form and Flowchart during this part of
the course.
• Step 1: The STA Site Engineer initiates a segmentation change request either when
it is an existing or it is a New Site/Initial Segmentation with the following criteria:
If it is an existing site, the STA Site Engineer re-evaluates the site for a potential
segmentation change with each monthly update in SIM. If this is the case, then
proceed to Step 2.
• It is classified a new site if a Q1 site assessment is required for the first time. Site
assessments are required every year or 6 months for existing sites.
• A site with a Q1 Status code of “D” needs a Q1 site assessment prior to the
assignment of segmentation. Once assessed for risk and with a Q1 status code other
than “D”, the site becomes an existing site. Go back to Step 1A. See Q1 PSP-010 for
an explanation of the Q1 status codes.
• A segmentation change request form is not used on a “D” site. This is the default
value in the system upon activation of a new site.
• Recall from part 1 of this course, segmentation is about assigning risk. If a site
assessment has not yet been conducted and the Q1 result recorded, you cannot
assess the risk.

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Participant Guide A Case for Change

Segmentation Change Request Process Workflow

1A
Is this an Existing Yes
2A
Has the Q1 Yes
3A 2A
If High Impact on Cust. Sat./Safety move to Seg. III
Legend:
Definition: The Impact on Customer Satisfaction & Safety with Q1 Status Code both dictate the Segment l, ll, lll
or lV.
Q1 Codes Recognized for Segmentation Process: A,Y,R,X,& W; others are not.

Has the Q1 Status Changed to “Y” or “W”?


Site? Status If Low Impact on Cust. Sat./Safety move to Seg. IV 5A
Changed Q1 Status - A code that defines whether or not a supplier manufacturing location meets
(Monthly Reviews Complete the
to "Y" Form/Equivalent Spread the minimum quality requirements for doing business with Ford Motor Company.
Recommended)
or "W"? Yes Sheet by Adding the See PSP-010 & Q1 Book.
4A
1A Evaluate Site for Potential Segmentation Change. Monthly Reviews Recommended.
Does the Current STA Current & New STA
1B.A site with a Q1 Status code of "D" (Disposition required, risk not assessed) requires a site assessment and
Organization Code Org. Codes & the New
STA Eng's. Name & assignment of the appropriate Q1 status code (other than "D") before it can be segmented. Once assessed for risk and
No Change?
CDSID. Obtain the with a Q1 status code other than "D", the site becomes an existing site, go back to 1A. See PSP-010 for an explanation
3B of the Q1 status codes.
Current & New Site
If High Impact on Cust. Sat./Safety No Manager's Signatures Q1 Site Assessment Required (D) is the default code upon site activation.
2B Yes
1B move to Seg. I 2A. See Std. PSS-001 4.1.5
Has the Q1
Is this a New Site/Initial If Low Impact on Cust. Sat./Safety 2B. See Std. PSS-001 4.1.12
Status Changed
Segmentation? move to Seg. II 2C. See Std. PSS-001 4.1.9
to "R" or "X"?

2B
STA (Q1 Site Assessment 3A, 3B See PSS-001 Segmentation Model
4B
Site Engineer Required. See Legend) 4A,4B, 4C/5A,5B. A meeting between the two responsible areas of the described organizational code. Not applicable to
Complete the
No Europe.
Form/Equivalent
Spread Sheet by

Has the Q1 Status Changed to “R” or “X”?


adding the Current
STA Organization To activate the Link to the Quality Segmentation Home page:
Code & Obtain the Right click the Legend Box & scroll down to the Segmentation Home Page & select.
Current Site (http://www.purchasing.ford.com/prch_sta_man/html/segmentation.htm)
Manager's
Signature

6A
Fax or email the Completed
Form/Equivalent Spread
Sheet to SBO Segmentation

2C
Q1 Status
Changed to "A"
2C 4C
Obtain the Current
Site Manager's
Signature
5B
Obtain the Current &
New Site Manager's

Q1 Status Changed to “A” Segmentation at


STA Site Segmentation at Signatures
Manager STA Manager's
Discretion

STA Manager’s Discretion 6B


Receive
Form/Equivalent Spread
7A
Is the STA Org Code
No
8
Retain Copy for 3
years per STA
SBO- Sheet & Update Changing? Quality Records
Segmentation Segmentation of the Matrix
Leader site. Yes

STA Engineer verifies Q1 Code via SIM (2A & 2B) 7B


Update Org Code
& STA Engineer in
STAGSDB GSDB (SIM
Updated)

STA Site Manager’s Discretion (2C)

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• The column highlighted determines which route to take depending on Q1 status.
Paths 2A, 2B and 2C are used if the Q1 status has changed.
• Using the previously determined segmentation assignment, the STA Site Engineer
will either go to 2A, 2B or 2C dependent upon the Q1 status.
• Note that 2C is used when a Q1 status changed to “A”. The segmentation is at the
STA Site manager’s discretion.

52
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Participant Guide A Case for Change

Segmentation Change Request Process Workflow

2A
Legend:
2A Definition: The Impact on Customer Satisfaction & Safety with Q1 Status Code both dictate the Segment l, ll, lll
1A 3A
Yes Has the Q1 or lV.
Is this an Existing Yes If High Impact on Cust. Sat./Safety move to Seg. III
Status Q1 Codes Recognized for Segmentation Process: A,Y,R,X,& W; others are not.
Site? If Low Impact on Cust. Sat./Safety move to Seg. IV 5A
Changed Q1 Status - A code that defines whether or not a supplier manufacturing location meets
Complete the

Has the Q1 Status Changed to “Y” or “W”?


(Monthly Reviews
to "Y" Form/Equivalent Spread the minimum quality requirements for doing business with Ford Motor Company.
Recommended)
or "W"? Yes Sheet by Adding the See PSP-010 & Q1 Book.
4A
1A Evaluate Site for Potential Segmentation Change. Monthly Reviews Recommended.
Does the Current STA Current & New STA
1B.A site with a Q1 Status code of "D" (Disposition required, risk not assessed) requires a site assessment and
Organization Code Org. Codes & the New
STA Eng's. Name & assignment of the appropriate Q1 status code (other than "D") before it can be segmented. Once assessed for risk and
No Change?
CDSID. Obtain the with a Q1 status code other than "D", the site becomes an existing site, go back to 1A. See PSP-010 for an explanation
3B of the Q1 status codes.
Current & New Site
If High Impact on Cust. Sat./Safety No Manager's Signatures Q1 Site Assessment Required (D) is the default code upon site activation.
2B Yes
1B move to Seg. I 2A. See Std. PSS-001 4.1.5
Has the Q1
Is this a New Site/Initial If Low Impact on Cust. Sat./Safety 2B. See Std. PSS-001 4.1.12
Status Changed
Segmentation? move to Seg. II 2C. See Std. PSS-001 4.1.9
to "R" or "X"?
STA (Q1 Site Assessment 3A, 3B See PSS-001 Segmentation Model
4B
Site Engineer Required. See Legend) 4A,4B, 4C/5A,5B. A meeting between the two responsible areas of the described organizational code. Not applicable to
Complete the
No Europe.
Form/Equivalent
Spread Sheet by
adding the Current
STA Organization To activate the Link to the Quality Segmentation Home page:
Code & Obtain the Right click the Legend Box & scroll down to the Segmentation Home Page & select.
Current Site (http://www.purchasing.ford.com/prch_sta_man/html/segmentation.htm)
Manager's
Signature

6A
Fax or email the Completed
Form/Equivalent Spread
Sheet to SBO Segmentation

2C 4C
5B
Q1 Status Obtain the Current
Obtain the Current &
Changed to "A" Site Manager's
New Site Manager's
STA Site Segmentation at Signature
Signatures
Manager STA Manager's
Discretion

6B 8
Receive 7A No Retain Copy for 3
Form/Equivalent Spread Is the STA Org Code years per STA
SBO- Sheet & Update Changing? Quality Records
Segmentation Segmentation of the Matrix
Leader site. Yes

7B
Update Org Code
& STA Engineer in
STAGSDB GSDB (SIM
Updated)

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• Step 2A: Has the Q1 status changed to Y or W? If the answer is Yes, proceed to
3A. If the answer is No, then proceed to 2B.
• For additional information on Y or W codes, please refer to the link below:
http://www.purchasing.ford.com/prch_quality/html/search.html
• Proceed to Step 3A in the next slide.

53
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Participant Guide A Case for Change

Segmentation Change Request Process Workflow

Legend:
2A Definition: The Impact on Customer Satisfaction & Safety with Q1 Status Code both dictate the Segment l, ll, lll
1A 3A
Yes Has the Q1 or lV.
Is this an Existing Yes If High Impact on Cust. Sat./Safety move to Seg. III
Status 5A Q1 Codes Recognized for Segmentation Process: A,Y,R,X,& W; others are not.
Site? If Low Impact on Cust. Sat./Safety move to Seg. IV
Changed Q1 Status - A code that defines whether or not a supplier manufacturing location meets
(Monthly Reviews Complete the
to "Y" Form/Equivalent Spread the minimum quality requirements for doing business with Ford Motor Company.
Recommended)
or "W"? Yes Sheet by Adding the See PSP-010 & Q1 Book.
4A
Current & New STA 1A Evaluate Site for Potential Segmentation Change. Monthly Reviews Recommended.
Does the Current STA
1B.A site with a Q1 Status code of "D" (Disposition required, risk not assessed) requires a site assessment and
Organization Code Org. Codes & the New
STA Eng's. Name & assignment of the appropriate Q1 status code (other than "D") before it can be segmented. Once assessed for risk and
No Change?
with a Q1 status code other than "D", the site becomes an existing site, go back to 1A. See PSP-010 for an explanation

3A
CDSID. Obtain the
3B Current & New Site of the Q1 status codes.
If High Impact on Cust. Sat./Safety No Q1 Site Assessment Required (D) is the default code upon site activation.
2B Yes Manager's Signatures
1B move to Seg. I 2A. See Std. PSS-001 4.1.5
Has the Q1
Is this a New Site/Initial If Low Impact on Cust. Sat./Safety 2B. See Std. PSS-001 4.1.12
Status Changed

If High Impact on Customer Satisfaction /Safety move to Segment lll


Segmentation? move to Seg. II 2C. See Std. PSS-001 4.1.9
to "R" or "X"?
STA (Q1 Site Assessment 3A, 3B See PSS-001 Segmentation Model
4B
Site Engineer Required. See Legend) 4A,4B, 4C/5A,5B. A meeting between the two responsible areas of the described organizational code. Not applicable to
Complete the
No Europe.
Form/Equivalent

If Low Impact on Customer Satisfaction /Safety move to Segment lV


Spread Sheet by
adding the Current
STA Organization To activate the Link to the Quality Segmentation Home page:
Code & Obtain the Right click the Legend Box & scroll down to the Segmentation Home Page & select.
Current Site (http://www.purchasing.ford.com/prch_sta_man/html/segmentation.htm)
Manager's
Signature

6A
Fax or email the Completed
Form/Equivalent Spread
Sheet to SBO Segmentation

2C 4C
5B

STA Engineer verifies Impact on Customer Satisfaction


Q1 Status Obtain the Current
Obtain the Current &
Changed to "A" Site Manager's
New Site Manager's
STA Site Segmentation at Signature
Signatures
Manager STA Manager's

/Safety (Found in the Commodity Prioritization List)


Discretion

SBO-
to determine segment placement lll or lV 6B
Receive
Form/Equivalent Spread
Sheet & Update
7A
Is the STA Org Code
Changing?
No
8
Retain Copy for 3
years per STA
Quality Records
Segmentation Segmentation of the Matrix
Leader site. Yes

7B
Update Org Code
Segment 1 or 2: Segment 3 or 4: & STA Engineer in
STAGSDB
Q1 Status Revocation (R) Q1 Status Approved (Y) GSDB (SIM
Updated)
or Approval Denied (X) or Waived & in Good Standing (W)
HIGH

III. Experienced
I. Critical
High Impact on
High Impact on Customer Satisfaction /
Customer Satisfaction / Safety
Safety Q1 – Low Risk
Non Q1- High Risk

II. Significant IV. Autonomous


Low Impact on Low Impact on Customer
Customer Satisfaction / Satisfaction / Safety
Safety Q1 - Low Risk
LOWER Non Q1 – High Risk

OUTSTANDING
(Q1 Status)

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• Referencing your segmentation model, Q1 coded “Y-Q1 Achieved” or “W-Q1
Requirements Waived and in good standing” are located in the right hand column or
segment 3 or 4.
• If you recall from part 1, which segment the supplier is placed in is dependent
upon the impact on Customer Satisfaction and Safety. If it is high impact the
segmentation is 3 while low impact it’s 4.

54
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Participant Guide A Case for Change

Segmentation Change Request Process Workflow

4A/B&C
Legend:
2A Definition: The Impact on Customer Satisfaction & Safety with Q1 Status Code both dictate the Segment l, ll, lll
1A 3A
Yes Has the Q1 or lV.
Is this an Existing Yes If High Impact on Cust. Sat./Safety move to Seg. III
Status Q1 Codes Recognized for Segmentation Process: A,Y,R,X,& W; others are not.
Site? If Low Impact on Cust. Sat./Safety move to Seg. IV 5A

Determine the current STA Org.Code


Changed Q1 Status - A code that defines whether or not a supplier manufacturing location meets
(Monthly Reviews Complete the
to "Y" Form/Equivalent Spread the minimum quality requirements for doing business with Ford Motor Company.
Recommended)
or "W"? Yes Sheet by Adding the See PSP-010 & Q1 Book.
4A
1A Evaluate Site for Potential Segmentation Change. Monthly Reviews Recommended.
Does the Current STA Current & New STA
1B.A site with a Q1 Status code of "D" (Disposition required, risk not assessed) requires a site assessment and

4A – A change in Org. Code


Organization Code Org. Codes & the New
STA Eng's. Name & assignment of the appropriate Q1 status code (other than "D") before it can be segmented. Once assessed for risk and
No Change?
CDSID. Obtain the with a Q1 status code other than "D", the site becomes an existing site, go back to 1A. See PSP-010 for an explanation
3B of the Q1 status codes.
Current & New Site
If High Impact on Cust. Sat./Safety No Manager's Signatures Q1 Site Assessment Required (D) is the default code upon site activation.
2B Yes

4B/C – No change in Org. Code


1B move to Seg. I 2A. See Std. PSS-001 4.1.5
Has the Q1
Is this a New Site/Initial If Low Impact on Cust. Sat./Safety 2B. See Std. PSS-001 4.1.12
Status Changed
Segmentation? move to Seg. II 2C. See Std. PSS-001 4.1.9
to "R" or "X"?
STA (Q1 Site Assessment 3A, 3B See PSS-001 Segmentation Model
4B
Site Engineer Required. See Legend) 4A,4B, 4C/5A,5B. A meeting between the two responsible areas of the described organizational code. Not applicable to
Complete the
No Europe.
Form/Equivalent
Spread Sheet by
adding the Current
STA Organization To activate the Link to the Quality Segmentation Home page:
Code & Obtain the Right click the Legend Box & scroll down to the Segmentation Home Page & select.
Current Site (http://www.purchasing.ford.com/prch_sta_man/html/segmentation.htm)
Manager's
Signature

6A
Fax or email the Completed
Form/Equivalent Spread
Sheet to SBO Segmentation

2C 4C
5B
Q1 Status Obtain the Current
Obtain the Current &
Changed to "A" Site Manager's
New Site Manager's
STA Site Segmentation at Signature
Signatures
Manager STA Manager's
Discretion

6B 8
No

4A Organizational codes available from STA Site Manager


Receive 7A Retain Copy for 3
Form/Equivalent Spread Is the STA Org Code years per STA
SBO- Sheet & Update Changing? Quality Records
Segmentation Segmentation of the Matrix

4B/C A meeting between the two responsible areas is held


Leader site. Yes

• STA Eng. completes the form/equivalent Spreadsheet by adding 7B


Update Org Code
& STA Engineer in

the current STA Org. Code & Obtain Site Manager’s Signature
STAGSDB GSDB (SIM
Updated)

• STA Site Manager reviews & signs accordingly


Note: Not Applicable to Europe

Link for Pro-forma Spreadsheet:


http://www.purchasing.ford.com/prch_sta
_man/html/segmentation.htm

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• The next step in the process refers to the STA organization code and determines if there is a
change in this code for the site.
• Where groups depend upon the segmentation determination to assign resources and personnel,
sites are sometimes moved from one organization code to another. In some groups the segmentation
designation is not used to allocate personnel and resources and consequently the sites are not
moved from one organization to another.
• For example, North America Vehicle and North America Powertrain do use this designation for
resource allocation and the STA Organization Code and the sites are moved between organization to
organization. If you are not sure if this is or is not a local practice, contact your local STA Site
Manager.
• Remember: Do not use the Segmentation Change Request Form to change the organization code
only. If this is what you are trying to do, you should use the GSM System or consult with your STA
Site Manager. The primary purpose of the Segmentation Change Request Form is for a
segmentation change based on Q1 status.
• During this step, a meeting between the two responsible areas is held to make the determination if
the code has changed. Organizational codes are available from the respective STA Site Manager.
• If there is a change, the STA Engineer proceeds to Step 5A to record the new organization codes. If
there is no change, in Step 4B the STA Engineer completes the form or equivalent spreadsheet by
adding the current STA Organization Code and obtaining the STA Site Manager’s signature. The
STA Site Manager reviews and signs accordingly.
• For multiple updates and if local practice allows it, you may use a spreadsheet pro-forma document
instead of the change request form. If used, make sure that it has all the required fields. It is preferred
that you use the Segmentation Change Request Form.

55
Revision 2006-01
©2001, 2006 Ford Motor Company
Participant Guide A Case for Change

Segmentation Change Request Process Workflow

Legend:
2A Definition: The Impact on Customer Satisfaction & Safety with Q1 Status Code both dictate the Segment l, ll, lll
1A 3A
Yes Has the Q1 or lV.
Is this an Existing Yes If High Impact on Cust. Sat./Safety move to Seg. III
Status Q1 Codes Recognized for Segmentation Process: A,Y,R,X,& W; others are not.
Site? If Low Impact on Cust. Sat./Safety move to Seg. IV 5A
Changed Q1 Status - A code that defines whether or not a supplier manufacturing location meets
(Monthly Reviews Complete the
to "Y" Form/Equivalent Spread the minimum quality requirements for doing business with Ford Motor Company.
Recommended)
or "W"? Yes Sheet by Adding the See PSP-010 & Q1 Book.
4A
1A Evaluate Site for Potential Segmentation Change. Monthly Reviews Recommended.
Does the Current STA Current & New STA
1B.A site with a Q1 Status code of "D" (Disposition required, risk not assessed) requires a site assessment and
Organization Code Org. Codes & the New
STA Eng's. Name & assignment of the appropriate Q1 status code (other than "D") before it can be segmented. Once assessed for risk and
No Change?
CDSID. Obtain the with a Q1 status code other than "D", the site becomes an existing site, go back to 1A. See PSP-010 for an explanation
3B of the Q1 status codes.
Current & New Site
If High Impact on Cust. Sat./Safety No Manager's Signatures Q1 Site Assessment Required (D) is the default code upon site activation.
2B Yes
1B move to Seg. I 2A. See Std. PSS-001 4.1.5
Has the Q1
Is this a New Site/Initial If Low Impact on Cust. Sat./Safety 2B. See Std. PSS-001 4.1.12
Status Changed

5A/B 5A
Segmentation? move to Seg. II 2C. See Std. PSS-001 4.1.9
to "R" or "X"?
STA (Q1 Site Assessment 3A, 3B See PSS-001 Segmentation Model
4B
Site Engineer Required. See Legend) 4A,4B, 4C/5A,5B. A meeting between the two responsible areas of the described organizational code. Not applicable to
Complete the
No Europe.

Organizational Codes are available from STA Site


Form/Equivalent

Complete the Form/


Spread Sheet by
adding the Current

Manager
STA Organization To activate the Link to the Quality Segmentation Home page:
Code & Obtain the Right click the Legend Box & scroll down to the Segmentation Home Page & select.
Current Site

Equivalent Spreadsheet
(http://www.purchasing.ford.com/prch_sta_man/html/segmentation.htm)
Manager's
Signature

6A

A meeting between the two responsible


Fax or email the Completed
Form/Equivalent Spread
Sheet to SBO Segmentation

areas is held
5B
• STA Engineer completes the
2C 4C
5B
Q1 Status Obtain the Current

Obtain Signatures
Obtain the Current &
Changed to "A" Site Manager's
New Site Manager's
STA Site Signature

Form/Equivalent Spreadsheet by
Segmentation at Signatures
Manager STA Manager's
Discretion

adding the current & new STA Org. 6B 8

Codes, the new STA Engineer’s


Receive 7A No Retain Copy for 3
Form/Equivalent Spread Is the STA Org Code years per STA
SBO- Sheet & Update Changing? Quality Records

Name & CDSID, & obtains current


Segmentation Segmentation of the Matrix
Leader site. Yes

& new Site Managers’ signatures 7B


Update Org Code
& STA Engineer in
STAGSDB GSDB (SIM

• STA Site Manager reviews & signs


Updated)

accordingly
Note: Not Applicable to Europe

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• Steps 5A and B refer to the process of changing organization codes.
• A meeting between the two responsible areas is held to make the determination if
the organization code is changed. The organizational code is available from the
respective STA managers.
• The STA Engineer completes the form by adding the current and new organization
STA org. codes, the new STA Engineer’s name and CDSID, and obtains the current
and new Site Manager’s signatures.
• 5B refers to obtaining the current and new Site Manager’s signatures on the form.

56
Revision 2006-01
©2001, 2006 Ford Motor Company
Participant Guide A Case for Change

Segmentation Change Request Process Workflow

Legend:
2A Definition: The Impact on Customer Satisfaction & Safety with Q1 Status Code both dictate the Segment l, ll, lll
1A 3A
Yes Has the Q1 or lV.
Is this an Existing Yes If High Impact on Cust. Sat./Safety move to Seg. III
Status Q1 Codes Recognized for Segmentation Process: A,Y,R,X,& W; others are not.
Site? If Low Impact on Cust. Sat./Safety move to Seg. IV 5A
Changed Q1 Status - A code that defines whether or not a supplier manufacturing location meets
(Monthly Reviews Complete the
to "Y" Form/Equivalent Spread the minimum quality requirements for doing business with Ford Motor Company.
Recommended)
or "W"? Yes Sheet by Adding the See PSP-010 & Q1 Book.
4A
1A Evaluate Site for Potential Segmentation Change. Monthly Reviews Recommended.
Does the Current STA Current & New STA
1B.A site with a Q1 Status code of "D" (Disposition required, risk not assessed) requires a site assessment and
Organization Code Org. Codes & the New
STA Eng's. Name & assignment of the appropriate Q1 status code (other than "D") before it can be segmented. Once assessed for risk and
No Change?
CDSID. Obtain the with a Q1 status code other than "D", the site becomes an existing site, go back to 1A. See PSP-010 for an explanation
3B of the Q1 status codes.
Current & New Site
If High Impact on Cust. Sat./Safety No Manager's Signatures Q1 Site Assessment Required (D) is the default code upon site activation.
2B Yes
1B move to Seg. I 2A. See Std. PSS-001 4.1.5
Has the Q1
Is this a New Site/Initial If Low Impact on Cust. Sat./Safety 2B. See Std. PSS-001 4.1.12
Status Changed
Segmentation? move to Seg. II 2C. See Std. PSS-001 4.1.9
to "R" or "X"?
STA (Q1 Site Assessment 3A, 3B See PSS-001 Segmentation Model
4B
Site Engineer Required. See Legend) 4A,4B, 4C/5A,5B. A meeting between the two responsible areas of the described organizational code. Not applicable to
Complete the
No Europe.
Form/Equivalent
Spread Sheet by
adding the Current
STA Organization To activate the Link to the Quality Segmentation Home page:
Code & Obtain the Right click the Legend Box & scroll down to the Segmentation Home Page & select.
Current Site (http://www.purchasing.ford.com/prch_sta_man/html/segmentation.htm)

6A
Manager's
Signature

6A
Fax or email the Completed

STA Engineer Faxes or e-mails completed


Form/Equivalent Spread
Sheet to SBO Segmentation

Form/Equivalent to the SBO Segmentation Leader 2C


Q1 Status
4C
Obtain the Current
5B
Obtain the Current &
Changed to "A" Site Manager's
New Site Manager's
STA Site Segmentation at Signature
Signatures
Manager STA Manager's
Discretion

6B
6B 8
Receive 7A No Retain Copy for 3
Form/Equivalent Spread Is the STA Org Code years per STA
SBO- Sheet & Update Changing? Quality Records

STA Segmentation receives Form/Equivalent


Segmentation Segmentation of the Matrix
Leader site. Yes

Spreadsheet & updates Segmentation of the site 7B


Update Org Code
& STA Engineer in
STAGSDB GSDB (SIM
Updated)

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• Once the form is completed, the STA Site Engineer faxes or emails the completed
form to the SBO Segmentation Leader.
• The SBO Segmentation Leader receives the form and updates the segmentation
of the site.
• Once received, the SIM System will reflect the change within 5 business days.

57
Revision 2006-01
©2001, 2006 Ford Motor Company
Participant Guide A Case for Change

Segmentation Change Request Process Workflow

Legend:
2A Definition: The Impact on Customer Satisfaction & Safety with Q1 Status Code both dictate the Segment l, ll, lll
1A 3A
Yes Has the Q1 or lV.
Is this an Existing Yes If High Impact on Cust. Sat./Safety move to Seg. III
Status 5A Q1 Codes Recognized for Segmentation Process: A,Y,R,X,& W; others are not.
Site? If Low Impact on Cust. Sat./Safety move to Seg. IV
Changed Q1 Status - A code that defines whether or not a supplier manufacturing location meets
(Monthly Reviews Complete the
to "Y" Form/Equivalent Spread the minimum quality requirements for doing business with Ford Motor Company.
Recommended)
or "W"? Yes Sheet by Adding the See PSP-010 & Q1 Book.
4A
Current & New STA 1A Evaluate Site for Potential Segmentation Change. Monthly Reviews Recommended.
Does the Current STA
1B.A site with a Q1 Status code of "D" (Disposition required, risk not assessed) requires a site assessment and
Organization Code Org. Codes & the New
STA Eng's. Name & assignment of the appropriate Q1 status code (other than "D") before it can be segmented. Once assessed for risk and
No Change?
CDSID. Obtain the with a Q1 status code other than "D", the site becomes an existing site, go back to 1A. See PSP-010 for an explanation
3B Current & New Site of the Q1 status codes.
If High Impact on Cust. Sat./Safety No Q1 Site Assessment Required (D) is the default code upon site activation.
2B Yes Manager's Signatures
1B move to Seg. I 2A. See Std. PSS-001 4.1.5
Has the Q1
Is this a New Site/Initial If Low Impact on Cust. Sat./Safety 2B. See Std. PSS-001 4.1.12
Status Changed
Segmentation? move to Seg. II 2C. See Std. PSS-001 4.1.9
to "R" or "X"?
STA (Q1 Site Assessment 3A, 3B See PSS-001 Segmentation Model
4B
Site Engineer Required. See Legend) 4A,4B, 4C/5A,5B. A meeting between the two responsible areas of the described organizational code. Not applicable to
Complete the
No Europe.
Form/Equivalent
Spread Sheet by
adding the Current
STA Organization To activate the Link to the Quality Segmentation Home page:
Code & Obtain the Right click the Legend Box & scroll down to the Segmentation Home Page & select.
Current Site (http://www.purchasing.ford.com/prch_sta_man/html/segmentation.htm)
Manager's
Signature

6A
Fax or email the Completed
Form/Equivalent Spread
Sheet to SBO Segmentation

7A 2C
Q1 Status
Changed to "A"
4C
Obtain the Current
Site Manager's
5B
Obtain the Current &

SBO Segmentation Leader


New Site Manager's
STA Site Segmentation at Signature
Signatures
Manager STA Manager's
Discretion

Determines if the STA Org. Code changed. 6B


Receive 7A No
8
Retain Copy for 3
Form/Equivalent Spread Is the STA Org Code years per STA
SBO- Sheet & Update Changing? Quality Records
Segmentation Segmentation of the Matrix
Leader site. Yes

7B 7B

STAGSDB: Update Org. Code & STA


Update Org Code
& STA Engineer in
STAGSDB GSDB (SIM
Updated)

Engineer in GSDB

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• In the next step, the SBO Segmentation Leader validates if the STA Organization
Code has changed on the Change Request Form. If yes, it is sent to the GSDB
coordinator who updates the Organization Code and the STA Engineer. Once
updated, the document moves on the Step 8.
• If there is no change in the Organization Code, the document progresses to Step 8
directly.

58
Revision 2006-01
©2001, 2006 Ford Motor Company
Participant Guide A Case for Change

Segmentation Change Request Process Workflow

Legend:
2A Definition: The Impact on Customer Satisfaction & Safety with Q1 Status Code both dictate the Segment l, ll, lll
1A 3A
Yes Has the Q1 or lV.
Is this an Existing Yes If High Impact on Cust. Sat./Safety move to Seg. III
Status Q1 Codes Recognized for Segmentation Process: A,Y,R,X,& W; others are not.
Site? If Low Impact on Cust. Sat./Safety move to Seg. IV 5A
Changed Q1 Status - A code that defines whether or not a supplier manufacturing location meets
(Monthly Reviews Complete the
to "Y" Form/Equivalent Spread the minimum quality requirements for doing business with Ford Motor Company.
Recommended)
or "W"? Yes Sheet by Adding the See PSP-010 & Q1 Book.
4A
1A Evaluate Site for Potential Segmentation Change. Monthly Reviews Recommended.
Does the Current STA Current & New STA
1B.A site with a Q1 Status code of "D" (Disposition required, risk not assessed) requires a site assessment and
Organization Code Org. Codes & the New
STA Eng's. Name & assignment of the appropriate Q1 status code (other than "D") before it can be segmented. Once assessed for risk and
No Change?
CDSID. Obtain the with a Q1 status code other than "D", the site becomes an existing site, go back to 1A. See PSP-010 for an explanation
3B of the Q1 status codes.
Current & New Site
If High Impact on Cust. Sat./Safety No Manager's Signatures Q1 Site Assessment Required (D) is the default code upon site activation.
2B Yes
1B move to Seg. I 2A. See Std. PSS-001 4.1.5
Has the Q1
Is this a New Site/Initial If Low Impact on Cust. Sat./Safety 2B. See Std. PSS-001 4.1.12
Status Changed
Segmentation? move to Seg. II 2C. See Std. PSS-001 4.1.9
to "R" or "X"?
STA (Q1 Site Assessment 3A, 3B See PSS-001 Segmentation Model
4B
Site Engineer Required. See Legend) 4A,4B, 4C/5A,5B. A meeting between the two responsible areas of the described organizational code. Not applicable to
Complete the
No Europe.
Form/Equivalent
Spread Sheet by
adding the Current
STA Organization To activate the Link to the Quality Segmentation Home page:
Code & Obtain the Right click the Legend Box & scroll down to the Segmentation Home Page & select.
Current Site (http://www.purchasing.ford.com/prch_sta_man/html/segmentation.htm)
Manager's
Signature

6A
Fax or email the Completed
Form/Equivalent Spread
Sheet to SBO Segmentation

2C 4C
5B
Q1 Status Obtain the Current
Obtain the Current &
Changed to "A" Site Manager's
New Site Manager's
STA Site Segmentation at Signature
Signatures
Manager STA Manager's
Discretion

8 6B
Receive 7A No
8
Retain Copy for 3

SBO Segmentation Leader retains copy for


Form/Equivalent Spread Is the STA Org Code years per STA
SBO- Sheet & Update Changing? Quality Records
Segmentation Segmentation of the Matrix
Leader site. Yes

3 years per STA Quality Records Inventory Matrix 7B


Update Org Code
& STA Engineer in
STAGSDB GSDB (SIM
Updated)

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• Finally, in Step 8 the SBO Segmentation Leader retains a copy of the change
request per the STA Quality Records Matrix.
• You have now completed one flow of a change from start to finish.

59
Revision 2006-01
©2001, 2006 Ford Motor Company
Participant Guide A Case for Change

Segmentation Change Request Process Workflow

Legend:
2A Definition: The Impact on Customer Satisfaction & Safety with Q1 Status Code both dictate the Segment l, ll, lll
1A 3A
Yes Has the Q1 or lV.
Is this an Existing Yes If High Impact on Cust. Sat./Safety move to Seg. III
Status 5A Q1 Codes Recognized for Segmentation Process: A,Y,R,X,& W; others are not.
Site? If Low Impact on Cust. Sat./Safety move to Seg. IV
Changed Q1 Status - A code that defines whether or not a supplier manufacturing location meets
(Monthly Reviews Complete the
to "Y" Form/Equivalent Spread the minimum quality requirements for doing business with Ford Motor Company.
Recommended)
or "W"? Yes Sheet by Adding the See PSP-010 & Q1 Book.
4A
Current & New STA 1A Evaluate Site for Potential Segmentation Change. Monthly Reviews Recommended.
Does the Current STA

2B
1B.A site with a Q1 Status code of "D" (Disposition required, risk not assessed) requires a site assessment and
Organization Code Org. Codes & the New
STA Eng's. Name & assignment of the appropriate Q1 status code (other than "D") before it can be segmented. Once assessed for risk and
No Change?
CDSID. Obtain the with a Q1 status code other than "D", the site becomes an existing site, go back to 1A. See PSP-010 for an explanation
3B Current & New Site of the Q1 status codes.
If High Impact on Cust. Sat./Safety No Q1 Site Assessment Required (D) is the default code upon site activation.

Has the Q1 Status


2B Yes Manager's Signatures
1B move to Seg. I 2A. See Std. PSS-001 4.1.5
Has the Q1
Is this a New Site/Initial If Low Impact on Cust. Sat./Safety 2B. See Std. PSS-001 4.1.12
Status Changed
Segmentation? move to Seg. II 2C. See Std. PSS-001 4.1.9
to "R" or "X"?
STA (Q1 Site Assessment 3A, 3B See PSS-001 Segmentation Model
4B

Changed to “R” or “X”?


Site Engineer Required. See Legend) 4A,4B, 4C/5A,5B. A meeting between the two responsible areas of the described organizational code. Not applicable to
Complete the
No Europe.
Form/Equivalent
Spread Sheet by
adding the Current
STA Organization To activate the Link to the Quality Segmentation Home page:
Code & Obtain the Right click the Legend Box & scroll down to the Segmentation Home Page & select.
Current Site (http://www.purchasing.ford.com/prch_sta_man/html/segmentation.htm)
Manager's
Signature

6A
Fax or email the Completed
Form/Equivalent Spread
Sheet to SBO Segmentation

2C 4C
5B
Q1 Status Obtain the Current
Obtain the Current &
Changed to "A" Site Manager's
New Site Manager's
STA Site Segmentation at Signature
Signatures
Manager STA Manager's
Discretion

6B 8
Receive 7A No Retain Copy for 3
Form/Equivalent Spread Is the STA Org Code years per STA
SBO- Sheet & Update Changing? Quality Records

STA Engineer verifies a “R” or “X” Q1 Code


Segmentation Segmentation of the Matrix
Leader site. Yes

7B
Update Org Code
& STA Engineer in
STAGSDB GSDB (SIM
Updated)

Copyright © 2000-2006 Ford Motor Company. All rights reserved.

Notes
• Referencing back to the second column and looking at option 2B. If there was a
Q1 status of “R-Q1 Revoked” or “X-Q1 Approval Denied”, one would go to 3B.

60
Revision 2006-01
©2001, 2006 Ford Motor Company
Participant Guide A Case for Change

Segmentation Change Request Process Workflow

Legend:
2A Definition: The Impact on Customer Satisfaction & Safety with Q1 Status Code both dictate the Segment l, ll, lll
1A 3A
Yes Has the Q1 or lV.
Is this an Existing Yes If High Impact on Cust. Sat./Safety move to Seg. III
Status 5A Q1 Codes Recognized for Segmentation Process: A,Y,R,X,& W; others are not.
Site? If Low Impact on Cust. Sat./Safety move to Seg. IV
Changed Complete the Q1 Status - A code that defines whether or not a supplier manufacturing location meets
(Monthly Reviews
to "Y" the minimum quality requirements for doing business with Ford Motor Company.
Recommended) Form/Equivalent Spread
or "W"? Yes See PSP-010 & Q1 Book.
4A Sheet by Adding the
Current & New STA 1A Evaluate Site for Potential Segmentation Change. Monthly Reviews Recommended.
Does the Current STA
1B.A site with a Q1 Status code of "D" (Disposition required, risk not assessed) requires a site assessment and
Organization Code Org. Codes & the New
assignment of the appropriate Q1 status code (other than "D") before it can be segmented. Once assessed for risk and
No Change? STA Eng's. Name &
CDSID. Obtain the with a Q1 status code other than "D", the site becomes an existing site, go back to 1A. See PSP-010 for an explanation
3B of the Q1 status codes.
Current & New Site
If High Impact on Cust. Sat./Safety No Q1 Site Assessment Required (D) is the default code upon site activation.
2B Manager's Signatures
Yes move to Seg. I 2A. See Std. PSS-001 4.1.5
1B Has the Q1
Is this a New Site/Initial If Low Impact on Cust. Sat./Safety 2B. See Std. PSS-001 4.1.12
Status Changed
Segmentation? move to Seg. II 2C. See Std. PSS-001 4.1.9
to "R" or "X"?
STA (Q1 Site Assessment 3A, 3B See PSS-001 Segmentation Model
4B
Site Engineer Required. See Legend) 4A,4B, 4C/5A,5B. A meeting between the two responsible areas of the described organizational code. Not applicable to
Complete the
No Europe.
Form/Equivalent
Spread Sheet by
adding the Current
STA Organization To activate the Link to the Quality Segmentation Home page:
Code & Obtain the Right click the Legend Box & scroll down to the Segmentation Home Page & select.

3B
Current Site (http://www.purchasing.ford.com/prch_sta_man/html/segmentation.htm)
Manager's
Signature

6A

If High Impact on Customer


Fax or email the Completed
Form/Equivalent Spread
Sheet to SBO Segmentation

2C
Satisfaction & Safety move to Segment l
4C

If Low Impact on Customer Satisfaction


5B
Q1 Status Obtain the Current
Obtain the Current &
Changed to "A" Site Manager's
New Site Manager's
STA Site Segmentation at Signature
Signatures
Manager STA Manager's

&am