Macro Model of Six Sigma Management

Six Sigma Quality Engineering Week 2 Introduction to Six Sigma Macro model of Six Sigma Management            Values of Six Sigma Development & Timeline of Six Sigma Management Benefits of Six Sigma Management Voice Of the Process (VOP) Variation in a Process Voice Of the Customer (VOC) Roles and responsibilities in Six Sigma Management Technical terminology of Six Sigma Management Six Sigma Methodology (DMAIC) Six Sigma Macro Model (Dashboards)\ Six Sigma BB project presentation Six Sigma is a process that enables companies to increase profits dramatically by streamlining operations, improving quality, and eliminating defects or mistakes in everything a company does, from raw materials to finish goods. A Six Sigma process generates a defect probability of 3.4 parts per million (PPM). Key activities in Six Sigma are:  1. 2. Understanding customer needs (in quantifiable terms) Translating the needs into the measurable outcomes Key objectives in Six Sigma are:  1. 2. Understanding & measuring the process inputs Looking at the root causes of variation The Focus of Six Sigma Y= • • • • • • Y Dependent Output Effect Symptom Monitor f (X)       X1 . . . X N Independent Input-Process Cause Problem Control If we are so good at X, why do we constantly test and inspect Y? σ • Allied Signal Nonconformities PMO 2 308,770 3 66,811 • General Electric 4 6,210 • John Deere & Co 5 233 • Lockheed Martin 6 • Boeing • Caterpillar • Motorola • Polaroid • Sony Process Capability 3.4 Parts per Million Opportunities The sigma scale of measure is perfectly correlated to such characteristics as defects-perunit, parts-per million defective, and the probability of a failure/error. 1978 Poor Quality!!! Motorola sells it TV business. When asked why, VP states “QUALITY STINKS!” •Did not co-operate across division •Ignored customer requirements •Diluted culture with new employees without training •Did not realize that Sigma had limitations Was an internally focused program 1980 Corporate Quality Officer appointed 1981 Training Center established 1985 Began to measure total defects/unit 1987 Corporation adopts Six Sigma program, Six Sigma goal to be achieved by 1992 1988 Motorola wins Malcolm Baldridge Award at the corporate level 1990 Six Sigma Research Institute formed. 1992 Blackbelt infrastructure developed and implemented at Motorola, Kodak, TI, IBM, and Digital. 1993 Motorola hires 40,000 new employees and removes the 40 hour quality training program. Revenue growth averages 27% growth. 1994 Motorola owns 60% of the wireless phone market. Six Sigma Academy formed. 1998 Motorola owns 34% of the wireless phone market. Revenue growth is 5%. Shareholder value is 1%; it had averaged 54% in previous 3 years. Six Sigma Companies •Produce superior, reliable, and customer-satisfying products… • Are faster, better, cheaper, and more efficient than their competitors…          Improve process flows Reduce total defects Reduce process cycle time Enhance Customer and Employee satisfaction Help reduce inventory Help improve capacity and output Help increase quality and reliability Help decrease product costs Help improve product delivery to custumer Voice Of the Process (VOP)  A process is a collection of interacting components that transform inputs into outputs toward a common aim. Inputs Process Components Machines Operators Assembly Test Final Inspection Ship to Customer Outputs Customer receives product Variation in a Process • What is Variation? • The enemy of certainty • The enemy of customer satisfaction • Drives the unknown • Adds to customer (and employee) disbelief • Adds to lack of confidence in the ability of processes • Increases risk that a result will not meet expectations • Variation is a driver of defects For any process, variation is the main reason for poor performance... Variation is the key focus of Six Sigma Variation in a Process  Feedback Loops • A feedback loop relates information about outputs from any stage or stages back to another stage or stages to make an analysis of the process. Inputs Process Feedback Loop Outputs Voice Of the Customer (VOC) • It is vital that we understand and are able to quantify what is critical to the customer's satisfaction. LSL No Good Loss Unhappy Customer USL Good No Loss Nominal Value No Good Loss Unhappy Customer Voice Of the Customer (VOC) •Critical to Customer’s satisfactions: • High quality • Lowest possible price • Products deliver on time Therefore Producers should bring forth these products in a manner that minimizes cost and cycle time and maximizes profit Voice Of the Customer (VOC) • We need to ask ourselves... •How easy it is for our customers to do business with us? •Are we making assumptions about what customers need? •How often do we ask our customers (internal and external) what they need? •Is this information properly communicated throughout our organization. We must place a value and emphasis on the customer, take measurements and measure inputs, not just outputs Customer Satisfaction? Do you have dissatisfied customers? • Historically 1 in 25 unsatisfied customers express their dissatisfaction • 1 unsatisfied customer typically tells 7-16 others. • It cost about five times more to attract a new customer as it does to keep an old one. Roles and responsibilities in Six Sigma Management  Senior Executive • Provides the impetus, direction & alignment necessary for Six Sigma ultimate success. Senior Executive should: 1. 2. 3. 4.  Study Six Sigma management Link company’s objectives to Six Sigma projects Champion Six Sigma projects Constantly review Six Sigma projects progress Executive Committee Member • They are the top management of an organization. Executive Committee Members should: 1. 2. 3. 4. 5. Deploy Six Sigma throughout the organization Prioritize and manage Six Sigma portfolio Assign champion, BB and GB to Six Sigma projects Remove barriers to Six Sigma management Provide resources for Six Sigma management Roles and responsibilities in Six Sigma Management  Champion • Take a very active sponsorship and leadership role in conducting and implementing Six Sigma projects. Champions should: 1. Identify the project on the organizational dashboard 2. Provide an ongoing communication link between the project team and Executive committee 3. Keep the team focused on the project by providing direction and guidance 4. Assure that Six Sigma methods and tools are being used in the project  Master Black Belt • Takes a leadership role as keeper of the Six Sigma process and advisor to executives or business unit managers. Master Black Belt should: 1. Counsel senior executives and business unit managers on Six Sigma management 2. Continually improve and innovate the organization’s Six Sigma process 3. Apply Six Sigma across across both operations and transactions-based process 4. Mentor Green Belts and Black Belts Roles and responsibilities in Six Sigma Management  Black Belt • Is a full time change agent and improvement leader. Black Belts should have the following characteristics: 1. 2. 3. 4. • Technical and managerial process improvement/innovation skills Understand the psychology of individuals and teams Not intimidated by upper management Has a customer focus The responsibilities of a Black Belt include: 1. Communicate with the champion and process owner about progress of the project 2. Help team members design and analyze experiments 3. Provide training in tools and team functions to project team members 4. Coach Green belts leading projects limited in scope Roles and responsibilities in Six Sigma Management  Green Belt • Is an individual who works on projects part time, either as a team member for complex projects or as a project leader for simpler projects. Green Belts have the following responsibilities: 1. 2. 3. 4.  Define & review project objective with project’s champion Facilitate the team through all phases of the project Analyze data through all phases of the project Train team members in the use of Six Sigma tools and methods through all phases of the project Process Owner • Is the manager of a process. The process owner should be identified and involved in all Six Sigma projects relating to the process owner area. A process owner has the following responsibilities: 1. Empower employees to follow and improve best practice methods 2. Accept and manage the improved process after completion of the Six Sigma project 3. Understand how the process works, the capability of the process, and the relationship of the process to other processes in the organization Technical terminology of Six Sigma Management      Critical-To-Quality (CTQ): Is a measure of what is important to a customer. Defect: Is a nonconformance on one of many possible quality characteristics of a unit that causes customer dissatisfaction Defects per Million opportunities (DPMO): A quality metric often used in the Six Sigma process. It is calculated by the number of defects observed divided by the number of opportunities for defects compared to 1 million units. Yield: Is the proportion of units within specification divided by the total number of units. Rolled Throughput Yield (RTY): Is the product of the yields from each step in a process. Six Sigma Methodology (DMAIC) Project Name: DMAIC PROCESS AND PHASE GATE Define Met Define Phase Criteria Estimated Actual completion completion date date Status No • Define C ustomers and Requirements (C TQs) • Develop Problem Statement, Goals and Benefits • Identify C hampion, Process Owner and Team • Define Resources • Evaluate Key Organizational Support • Develop Project Plan and Milestones • Develop High Level Process Map Measure Met Measure Phase Criteria • Define Defect, Opportunity, Unit and Metrics • Detailed Process Map of Appropriate Areas • Develop Data C ollection Plan • Validate the Measurement System • C ollect the Data • Begin Developing Y=f(x) Relationship • Determine Process C apability and Sigma Baseline No Six Sigma Methodology (DMAIC) Analyze Met Analyze Phase Criteria No • Define Performance Objectives • Identify Value/Non-Value Added Process Steps • Identify Sources of Variation • Determine Root C ause(s) • Determine Vital Few x's, Y=f(x) Relationship Improve Met Improve Phase Criteria No • Perform Design of Experiments • Develop Potential Solutions • Define Operating Tolerances of Potential System • Assess Failure Modes of Potential Solutions • Validate Potential Improvement by Pilot Studies • C orrect/Re-Evaluate Potential Solution Control Met Control Phase Criteria • Define and Validate Monitoring and C ontrol System • Develop Standards and Procedures • Implement Statistical Process C ontrol • Determine Process C apability • Develop Transfer Plan, Handoff to Process Owner • Verify Benefits, C ost Savings/Avoidance, Profit Growth • C lose Project, Finalize Documentation • C ommunicate to Business, C elebrate No Six Sigma Macro Model (Dashboards) •A dashboard is a tool used by management to clarify and assign accountability for the “critical few” key objectives, key indicators, and project tasks needed to steer an organization toward its mission statement. •There are four basic categories of dashboard key objectives: •Financial Key Objectives •Process Improvement Key Objectives •Innovation/Customer Satisfaction Key Objectives •Employee Growth and Development Key Objectives Six Sigma Macro Model (Dashboards) Los Angeles 2006 STAKEHOLDER Greater than 10% from Plan Between 10% and 5% from Plan Within 5% of Plan KEY MEASUREMENT DIAGNOSTIC MEASUREMENT 2005 Actual Cumulative Sales Growth Over Market 105792 CFROGC 20.9% SHAREHOLDERS DOH 133 DSO 45 DPO 27 Capital Expenditures ($ 000) 1,517 Operating Margin 12.0% Productivity -3.3% Material Cost Out ($ 000's) Factory Cost Out ($ 000's) Lean Score $2,320 $1,000 3.5 JAN FEB MAR APR Cum Actual 9,080 18,847 29,546 40,519 Cum Plan Actual Plan Actual Plan Actual Plan Actual Plan 9,702 6.3% 21.9% 150 139.5 41.9 43.3 47 50 19,433 28.4% 19.1% 152.6 137.5 46.8 43.5 57 50 29,164 22.0% 22.8% 140.9 136.3 48.6 43.5 78 50 38,846 23.1% 16.9% 146.3 133.5 47.4 44 42 50 Cum Actual 3 501 1,701 Cum Plan Cum Actual Cum Plan Actual Plan Cum Actual Cum Plan Cum Actual Cum Plan Actual Plan 3 11.4% 13.4% 2.0% 0.7% $653 $160 $46 $26 3.5 3.5 389 12.2% 14.0% 0.7% 0.7% $1,092 $265 $76 $39 3.5 3.5 409 13.0% 13.2% 1.2% 0.7% $1,530 $370 $81 $52 3.1 3.5 Actual/ Plan 2.3% 14.5% 0.5% 0.7% $280 $105 $26 $13 3.5 3.5 Six Sigma Macro Model (Dashboards) Product OTD CUSTOMERS 3 Month Rolling Product Quality (DPPM) Dev. Program Milestone OTD EMPLOYEES 62.1% Past Due $ ($ 000's) $7,213 MPS OTD 14.6% Supplier OTD 57.3% 2706 3 Month Rolling Supplier Quality (DPPM) 50.0% OCA Action Item OTD Employee Survey Action Item OTD 0.0% 80.0% Safety TCIR SUPPLIERS Spend/Strategic Supplier ($000) COMMUNITY Environ Audit Action Item OTD Charitable Contributions ($ 000's) 9594 2.0 $0 1 $8,311 Actual Plan Actual Plan Actual Plan Actual Plan Actual 56.4% 60.0% $8,262 $8,000 13.1% 0.0% 60.5% 57.0% 2012 63.7% 63.0% $8,100 $7,500 6.2% 0.0% 53.5% 58.0% 1534 60.6% 65.0% $6,973 $7,000 7.6% 10.0% 60.0% 59.0% 1783 65.6% 68.0% $5,886 $6,500 4.8% 11.0% 55.4% 60.0% 2000 Plan Actual 3000 8765 3000 8488 3000 18974 3000 1087 Plan Actual Plan 12000 75.0% 75.0% 10000 66.7% 75.0% 9500 42.9% 75.0% 9000 66.7% 75.0% Actual Plan Actual Plan Actual Plan 0.0% 0.0% 0.0% 0.0% 8.8 5.0 0.0% 4.7 4.0 0.0% 2.8 2.9 0.0% 10.0% 10.0% 2.3 2.7 Actual Plan $0 $0 $0 $0 Actual Plan Cum Actual 0 $648 100.0% 1 $1,195 100.0% 1 $1,893 100.0% 1 $2,406 Cum Plan $708 $1,416 $2,124 $2,832 Plant Performance Dashboard T. Mendoza/ Quality mgr. T. Mendoza Ongoing Complete Mendoza Complete On-going Access database for planners backlog Lebetsamer/ McBroom On-going Support of schedule tool Lebetsamer/ McBroom Complete Re-organization of manufacturing and supply chain. Harris Complete Boeing of Philadelphia Housings are being inspected and reworked to B/P. Laps are in process at Dow. US Govt Spares Additional focus provided by assigning a government spares champion (Reduced from $3.3M down to $1.3M) Developed a backlog-to-customer PO reconciliation process. (Our backlog did not match Gulfstream's PO dates). Gulfstream Maintain supplier corrective action system Instruction Error Operator Error Supplier V22 source inspection at TPT Equip Malfunction Supplier Failure DOH Monthly Comparative No v O ct Sep 160.0 140.0 120.0 100.0 80.0 60.0 40.0 20.0 0.0 De c Co m p Bm k Ju n Ju l Aug ar ay Apr M Feb YTD 0.0% M Ja n $0 02 $5,000,000 04 $10,000,000 20.0% 10.0% Rec'd Early Ongoing Benchmark Goal YTD Planning Problem Comparative Expected Results Responsible Open Due Date Status 1 Reduce errors Team Jun-04 Nov-04 Open Revision & Training for QCD 191, Final Insp 2 Work Instructions Team Jul-04 Nov-04 Open Establish DPPM by Focus Factory 3 Focus on key areas QE Apr-04 Oct-04 Open Note: Note: 54 54 Returns Returns for for Oct Oct 2004. 2004. 33 33 Units Units determined determined to to be be Customer Customer Responsibility Responsibility or or No No Fault Fault Found Found 17 17 Units Units not not evaluated evaluated as as of of the the date date of of this this reporting reporting 44 Units Units were were determined determined to to be be Eaton’s Eaton’s Responsibility Responsibility DPPM DPPM Calc. Calc. == 21/6685 21/6685 ** 1,000,000 1,000,000 == 3141 3141 Units Units determined determined to to be be Customer Customer Resp. Resp. or or No No Fault Fault Found Found not not used used in in calculation calculation ACTION PLANS Focus Areas Actions Inv. Type High volume, low dollar suppliers like Chavers Gasket and Bora are shipping early. Called owners to ensure they understand the new five day early, on time delivery window. Owner Mendoza Due Date Received early Received early Metric early tolerance changed from infinite to 5 days. Policy enforcement Mendoza Supplier Failure U.S. Ball Corp. stocking program (another high volume low cost supplier) Ongoing 50% complete 11/30/2004 Supplier Failure Rationalizing supplier base (Alpine, WCL, Blevins, Viking) Planning Problem Suppliers now have forward visibility for sub-contract PO's to plan their capacity needs. CMC added as Certified Supplier - 62% of CMC parts are now ship to stock and a thrid of all reciepts are ship to stock. T. Mendoza T. Mendoza/ Quality mgr. T. Mendoza Mendoza Complete Ongoing Complete Complete WIP Action items DexM Kanban, Vendor Managed Inventory, Adding an additional 300 parts to the program Lead-time Reductions Obsolete and Excess disposal Re- alignment of schedule for purchased and manufactured parts for year end. Bring in only what is needed. Status In progress Results To Date 100K reduction - slated for Dec.6th '04. Ongoing Ongoing Ongoing 3400 Lead-times reduced 1.7M with expected additional 250K by year end. 964k moved to 2005 with an additional 200k by year end Responsible Operator Error Supplier Open Due Date Equip Malfunction Status Establish Final Insp C/A Feedback Process 1 Reduce errors Team Jun-04 Nov-04 Open Revision & Training for QCD 191, Final Insp 2 Work Instructions Team Jul-04 Nov-04 Open Establish DPPM by Focus Factory 3 Focus on key areas QE Apr-04 Oct-04 Open Ongoing Health &Safety-Los Angeles, CA &Safety &Safety-Los Benchmark Total Case Incident Rate (TCIR) Lost Workday Case Incident Rate (LWCIR) Goal 1.00 0.90 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 4.00 Actual Goal Actual 2.00 Goal 0.00 2003 Jan Feb Mar Apr May Jun Jul Aug Sep ACTION PLANS Issue # Establish Final Insp C/A Feedback Process Expected Results Note: Note: 54 54 Returns Returns for for Oct Oct 2004. 2004. 33 33 Units Units determined determined to to be be Customer Customer Responsibility Responsibility or or No No Fault Fault Found Found 17 17 Units Units not not evaluated evaluated as as of of the the date date of of this this reporting reporting 44 Units Units were were determined determined to to be be Eaton’s Eaton’s Responsibility Responsibility DPPM DPPM Calc. Calc. == 21/6685 21/6685 ** 1,000,000 1,000,000 == 3141 3141 Units Units determined determined to to be be Customer Customer Resp. Resp. or or No No Fault Fault Found Found not not used used in in calculation calculation Favorable Direction Monthly Issue # Complete MONTHLY DOH PERFORMANCE $15,000,000 30.0% 03 40.0% 20 50.0% Complete 20 0 20 2 0 20 3 04 Ja n Fe b M ar Ap M r a Ju y ne Ju ly Au Se g pt O ct No v D Be C e c nc o m hm p ark $20,000,000 Inventory $ 60.0% Goal Action Item s Ongoing Inventory and DOH-Los Angeles, CA DOH DOH-Los $25,000,000 ACTION PLANS Action Item s SQEs MONTHLY INVENTORY PERFORMANCE ($M) 70.0% Actual Dec Nov Oct Sep Aug Jul Jun May Apr 60.0% Jan 70.0% Technic al Problem Mendoza/ Quality mgr. Karl Fischer, SQE Continue Supplier Council established, 1st meeting March, '04 20 90.0% 80.0% 20 03 Ja n Fe b Ma r Ap r Ma y Ju n Ju l Au g Se p Oc t No v De c Ju n Ju l Au g Se p Oc t No v De c ar Ap r ay M 20 03 Ja n Fe b V22 source inspection at Dow 20 100.0% Mar 20 03 Ja n Fe b Ma r Ap r Ma y Ju n Ju l Au g Se p Oc t No v De c on-going backlog scrub $30,000,000 Feb Actual Goal On-going Healy REASON CODES MONTHLY PERFORMANCE 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 2003 Favorable Favorable Direction Direction 2/1/2005 Dumlao Instruction Error ACTION PLANS Mendoza/ Quality mgr. Steve Brakebill, SQE Karl Fischer, SQE Rationalizing supplier base Supplier Failure Productivity-Los Angeles, CA Productivity Productivity-Los REASON CODES MONTHLY PERFORMANCE Shaham Due Date Continue Certified Supplier Program rollout Quality Index(Customer -Los Angeles, CA Customer DPPM DPPM))-Los 6000 5000 4000 3000 2000 1000 0 Owner Oct Nov Nov Suppliers now have forward visibility for sub-contract PO's to plan their capacity needs. CMC added as Certified Supplier - 62% of CMC parts are now ship to stock and a thrid of all reciepts are ship to stock. Due date Review and measure exceptions message resolution in each Lebetsamer/ McBroom of the focused factories Technic al Problem ACTION PLANS Actions Dec Rationalizing supplier base (Alpine, WCL, Blevins, Viking) Planning Problem Owner See suplier OTD actions Planning Problem Goal Jul Supplier Failure Actions Late Supplier Technical Problem Jun U.S. Ball Corp. stocking program (another high volume low cost supplier) Boeing Def. Supplier Failure Oct Supplier Failure B.F. Goodrich 0.0% Sep Complete Gulfstream responsibility, responsibility, affect affect Supplier Supplier DPPM. DPPM. Therefore, Therefore, supplier supplier DPPM DPPM is is the the result result of of “Supplier “Supplier Failure”. Failure”. 50.0% 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Aug Due Date Ongoing 50% complete 11/30/2004 Mendoza US Gov't Spares M Dec Nov Oct Sep Aug Jul Boeing PH Goal Actual May Owner Mendoza T. Mendoza 0.173 Favorable Favorable Direction Direction 6000 5000 4000 3000 2000 1000 0 Note: Note: All All units units rejected rejected from from supplier, supplier, coded coded as as supplier supplier Jan Metric early tolerance changed from infinite to 5 days. Policy enforcement 0.243 $0.00 REASON CODES MONTHLY PERFORMANCE 100.0% Actual Apr Focus Area Actions High volume, low dollar suppliers like Chavers Gasket and Bora are shipping early. Called owners to ensure they understand the new five day early, on time delivery window. 0.385 35000 30000 25000 20000 15000 10000 5000 0 Feb ACTION PLANS Focus Areas 1.314 ACTION PLANS Focus Areas Received early $1.00 Planning Problem ACTION PLANS Received early Goal 1.487 $0.50 Jun Planning Problem May Technical Problem Apr Late Factory Mar Dec Jul Nov Jun Sales Order Problem $1.50 Mar Supplier Failure Supplier Performance Actual Plant Quality (Customer -Los Angeles, CA Customer DPPM DPPM))-Los REASON CODES MONTHLY PERFORMANCE 2003 Rec'd Early Oct 0 Sep 0.0% 50 $2.00 Feb Goal $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 Jan Actual 2003 10.0% Aug 20.0% Dec Jul Nov Jun Oct Sep Apr Aug Jan Mar Feb 2003 May 30.0% Apr 40.0% May Goal Supplier Quality (DPPM)-Los Angeles, CA (DPPM) (DPPM)-Los CUSTOMERS – AUGUST 2004 MONTHLY PERFORMANCE ($M) REASON CODES 100 Jan 70.0% 50.0% Mar 80.0% Actual Feb 60.0% 90.0% Customer Past Due-Los Angeles, CA Due Due-Los REASON CODES MONTHLY PERFORMANCE 100% 95% 90% 85% 80% 75% 70% 65% 60% 70.0% 100.0% 60.0% On-Time Delivery To Request-Los Angeles, CA On Request On-Time Request-Los REASON CODES MONTHLY PERFORMANCE 2003 Supplier to Plant Delivery-Los Angeles, CA Delivery Delivery-Los Dec ACTION PLANS Action Item s ESP BOS has developed action plan BOS team has prioritized ESP elements Corporate planning to develop tech. Training f Include Ergonomics/repetitive motion study Building Safety w ork order program Developing safety SOP for all procedures Issue # Expected Results R e s p o ns i b l e actions to complete ESP BOS team Work key issues first BOS team Due Date Mar-04 Apr-04 Status Done Done Conduct technical training RNR Apr-05 Corporate plans for 2005 improve ergonomics RNR Apr-05 Corporate plans for 2005 priortize safety w ork orders RNR Dec-04 Starting to track Nov-04 Working w ith product audit group All proceedures w ill include safety RNR Supplier to Plant Delivery -Los Angeles, CA Delivery-Los REASON CODES MONTHLY PERFORMANCE 70.0% 100.0% 60.0% 90.0% 80.0% 70.0% Actual 50.0% Goal 40.0% 20.0% Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb 2003 Jan 30.0% 60.0% 10.0% 0.0% Rec'd Early Supplier Failure Planning Problem ACTION PLANS Focus Areas Actions Owner Received early High volume, low dollar suppliers like Chavers Gasket and Bora are shipping early. Called owners to ensure they understand the new five day early, on time delivery window. Mendoza Received early Metric early tolerance changed from infinite to 5 days. Policy enforcement Mendoza Supplier Failure U.S. Ball Corp. stocking program (another high volume low cost supplier) Supplier Failure Rationalizing supplier base (Alpine, WCL, Blevins, Viking) Planning Problem Suppliers now have forward visibility for sub-contract PO's to plan their capacity needs. CMC added as Certified Supplier - 62% of CMC parts are now ship to stock and a thrid of all reciepts are ship to stock. Due Date Complete T. Mendoza Ongoing 50% complete 11/30/2004 T. Mendoza/ Quality mgr. T. Mendoza Ongoing Mendoza Complete Complete