5. Falcon Supply Chain Services
Supply Chain Management
• Warehousing & Distribution
Barcode & Scanning functionality for material receiving and shipping
Lot traceability for critical components
First In-First Out inventory flow
Physical Inventory/Cycle Count processes and procedures for all customers
Bar-coding, Scanning, & Product Serialization on outbound shipments
Direct and indirect shipping to over 28 OEM automotive plants and tier 1 & 2 suppliers.
Falcon ships direct to all Chrysler plants
• Transportation
Central Indiana shuttling and milk-run capabilities
– Fleet: 4 tractors, 4 drivers, 18 trailers
– Fleet is based in Columbus, IN, and Whitakers, NC.
Domestic and International shipping of automotive components
– Through the use of contracted carriers and freight forwarders, our logistics group plans, coordinates, and
tracks all shipments from our supply base
• Falcon’s supply base consists of 36 international suppliers and over 100 domestic suppliers
• Our logistics group is experienced in International shipping, Customs compliance, NAFTA, and assignment
and auditing of tariffs.
6. Falcon Supply Chain Services
Supply Chain Management
• Supplier Management
Falcon manages over 130 suppliers for it’s automotive customers. For components that are
purchased on behalf of our automotive customers, Falcon is responsible for all demand planning,
ordering, shipping, and quality.
Falcon initiates and manages all corrective action with the supply base
• Personnel and Systems
Falcon utilizes a team of professional planners and logistics personnel to manage all parts planning,
ordering, and shipping. This group is housed at our corporate office in Greenwood, IN
– Personnel utilize EDI from our customers to generate production plans and material planning
requirements.
– Falcon’s ERP system is used to manage all aspects of production and material planning
– Falcon’s WMS is used to control all inventories that are located within Falcon’s facilities
– Our personnel are also trained on our customer’s systems and perform sales, ASN’s, shipping &
receiving, and inventory related transactions. They are skilled in Oracle, SAP, and JD Edwards ERP
systems.
8. Falcon Supply Chain Services
Facility Process
• KHL / PHX manages Supply
Chain for Entire Fleet of US &
MX Returnables
• Phoenix Manages Inventory,
Maintenance, Distribution,
and Logistics for Containers
• Linked ERP system used for
online order management,
invoicing, shipping docs, etc
• PHX provides all Returnable
Container support for Eaton
suppliers
9. Falcon Supply Chain Services
Facility Capabilities
• Containment, Identity, and / or Defect Sortation
• Inspection and Repair (PM Programs and 100% Sort)
Inspection and repair of Finished Product Containers (e.g. steel rack with custom
security dunnage)
Preventative Maintenance, inspection, and repair of steel racks holding bag dunnage
Inspection and repair of seatbelt webbing, retractors, and buckles for plastic pallets
Inspection and repair of cracked or fractured HDPE dunnage
• Relabeling & Stenciling of handheld totes, steel racks, and other types of
returnable containers
• Repackaging Operations
Clean engine valves, apply surface agents, and repack
Clean driveshafts, inspect for rust and boot damage, and repack
Repack parts from overseas packaging crates into custom-designed dunnage
• Recycle / Regrind scrap plastic, metal, and/or cardboard
10. Falcon Supply Chain Services
Facility Capabilities
• Enterprise business systems integrated across all sites
• Customers have web-based access to container data, shipping schedules,
all by returnable part numbers, including images
11. Falcon Supply Chain Services
Returnable Wash Overview
4-Stage Automatic Wash
Prewash, Main, Rinse, Blow-off
3 Lanes
In-Line Inspection
Power-Wash / Hand-Wash
For Large Containers
Pre-Soak Option
Environmentally Friendly
Recycling
Closed loop system
Eliminate plant discharge
Label Removal
Removal of old labels
Replace with new placards
Sorting / Quality
Eliminate handling in house
ISO 9001 certified
Quality Inspection / Doc
Inventory
Online visibility
Free up plant space
15. The Phoenix Group Supply Chain Services
Vision Systems used to
verify kitting process
Kitting
16. Falcon Supply Chain Services
VMI Processes
LEONI sends ship advice
EDI 856 to TPG
TPG sends EDI 861 to LEONI
to confirm receipt
TPG sends ASN 856 to Cummins
On behalf of LEONI
Cummins to send copy EDI 830
to LEONI and TPG
CumminsEDI830Demand
TPG does receipt transaction
makes Inventory visible to LEONI
TPG sends ASN 856 to LEONI for shipment to Cummins
LEONI sends Invoice to Cummins based off of ASN’s sent from TPG
20. Falcon Supply Chain Services
Inventory Visibility
Item Master Data can be accessed by “Drill
Down” functionality to view detail and
Inventory levels.
21. Falcon Supply Chain Services
VMI Inventory Visibility
Shipper ID Ship Date Part Qty
003248 11/19/2012 105375 128
003257 11/27/2012 129859 102
003249 11/19/2012 129866 106
003227 11/1/2012 145530 216
003230 11/2/2012 145582 116
003227 11/1/2012 200293 136
003230 11/2/2012 3008464 136
003231 11/2/2012 3040995 106
003227 11/1/2012 3042619 60
003230 11/2/2012 3093775 5
003231 11/2/2012 3093862 110
003227 11/1/2012 3606755 210
003230 11/2/2012 3094012 210
003230 11/2/2012 3102928 410
Product Shipments
FAC PARTNUM DESCRIPT CURR_ONHAND LOCATION
NCB 105375 NAMEPLATE 4664 RA
NCB 129859 ELBOW, MALE UNION 822 RA
NCB 129866 UNION, MALE 1405 RA
NCB 145530 SEAL, O RING 39 RA
NCB 145582 SEAL, O-RING 2181 RA
NCB 200293 ELBOW, MALE UNION 850 RA
NCB 3008464 PLUG, PIPE 14173 RA
NCB 3040995 PLUG, THREADED 446 RA
NCB 3042619 NIPPLE, COUPLING 2466 RA
NCB 3093775 SCREW, HEX FLANGE HEAD 1146 RA
NCB 3093862 PLUG, THREADED 1145 RA
NCB 3606755 GAS FLOW SENSOR 1206 FI
NCB 3094012 WASHER, PLAIN 3364 RA
NCB 3102928 VALVE, PRESSURE REGULATOR 165 RA
On Hand Inventory
22. Falcon Supply Chain Services
EDI Transactions
810-Invoicing
820-Payment Order
830-Planning Schedule
840-Request for Quote
846-Inventory Advice
850-Purchase Order
855-PO Acknowledgement
856-Ship Notice / Manifest
860-PO Change
861-Receiving Advice
862-Shipping Authorization
865-PO Change Acknowledgement
All EDI transactions can be mapped for inbound or outbound.
This system also supports custom mappings.
EDI Capable
23. Falcon Supply Chain Services
Inbound Product
All inbound
product data can
be stored from EDI
DELFOR
Promise Date will
be used for
Inbound delivery
schedule
24. Falcon Supply Chain Services
Receiving
All receiving data is collected via a
barcode scanner to populate system data.
27. Falcon Supply Chain Services
Work Order/Job Creation
• Create Work Order/Job
– Identifies all materials required
– Failsafe for scanning functions
• Print assembly labels
– Label present and correct on product
– Used in Data collection
• Torque/Angle
• Leak Test Results
• Component lot control
• Lot Control
• Inventory Transaction
28. Falcon Supply Chain Services
Tooling Control
• DC Tools allow for process control and data
collection
– Tools lock on errors, completed assemblies, and
maintain correct assembly sequence.
– Used to help with Error Proofing
• Must scan assembly part and pump part to allow
tool to work.
• If error tool disengaged; operator can not continue.
– Each station scan checks previous station for
completion.
• One piece flow achieved
• Piece by piece confirmation of process completion.
29. Falcon Supply Chain Services
• All team members
have visibility to
status of Work Order
‒ Can see individual
assembly status
‒ Completion status
‒ Movement of raw
material to FG
inventory
‒ Container Quantity
status
‒ Job Quantity Status
Visual Monitoring
31. Falcon Supply Chain Services
Automatic Printing
• Only receive labels after
validation of all parts in
container is complete.
• Label printer is at end of
line.
• Label applied immediately
when container quantity is
complete.
• Container serial number
contains all part number
serial numbers in data.
32. Falcon Supply Chain Services
Data Collection
• Allows tracking of:
‒ Individual Serial Numbers
‒ Torque/Angel results
‒ Leak Test Results
‒ Date and Time
‒ Individual serial numbers
tied to container serial
number
34. Falcon Supply Chain Services
6-Sigma Capable
SampleMean
3128252219161310741
10.10
10.05
10.00
__
X=10.0750
UCL=10.1363
LCL=10.0137
SampleStDev
3128252219161310741
0.09
0.06
0.03
_
S=0.0594
UCL=0.1046
LCL=0.0142
Sample
Values
3025201510
10.2
10.1
10.0
10.92
10.64
10.36
10.08
9.80
9.52
9.24
8.96
LSL USL
LSL 9
USL 11
Specifications
10.2010.059.90
Within
O v erall
Specs
StDev 0.0612693
C p 5.44
C pk 5.03
Within
StDev 0.0606249
Pp 5.5
Ppk 5.09
C pm *
O v erall
Process Capability Sixpack of Torque 2
Xbar Chart
S Chart
Last 25 Subgroups
Capability Histogram
Normal Prob Plot
A D: 7.574, P: < 0.005
Capability Plot
Cpk 5.03
35. Falcon Supply Chain Services
Falcon Quality
PQM is a leader with 20+ years of experience providing
inspection, screening, machining, prototyping, quality system audits
and fixture fabrication.
Our experienced staff provides our services as contractors and
consultants as we assist our customers in quality recovery tasks such
as containment, inspection, sorting, salvage and rework.
PQM prides itself in being able to help our customers reduce
their cost of doing business by coming up with fact and effective
measures for screening and reworking defective product.
We recognize the need for accurate, reliable and urgent quality
services and are available 24 hours a day 7 days a week.
36. Falcon Supply Chain Services
Inspection criteria and
documented processes
are determined by the
Customer or Supplier.
PQM has this critical
information confirmed
and signed prior to
performing any work.
All Data is collected,
documented and
reported for every
project, everyday that
work is performed.
Project Management
39. Falcon Supply Chain Services
Quality
Liaison(s)
Project
Coordinator(s)
Inspection
Team
1st Shift
Inspection
Team
2nd Shift
Inspection
Team
3rd Shift
Data
Coordinator
Logistics
Coordinator(s)
Drivers and
Material
Handlers
3rd Party Services
40. Falcon Supply Chain Services
Project
Coordinator
Inspection
Team
Plant
Location
Customer
Location
Finished
Goods Whse
Phoenix
Location
• Work with Quality Liaison to
coordinate projects at customer
locations
• Contact Supplier with
Nonconformance and coordinate
inspection criteria, Containment
details, and IRP (Inventory
Recovery Plan)
• Deploy Inspection Teams
• Manage/Supervise required
throughput to support production
requirements
• Coordinate rejected product for
return to the supplier
• Work with Logistics Coordinator to
schedule Pick up/Delivery of parts,
as needed
Project Coordinators
42. Falcon Supply Chain Services
• Supplier Info
• Scope of Work
• Dates Performed
• Part Numbers Inspected
• Total Inspected
• Total Conforming Parts
• Total Rejected Parts
• Percentage of
Conforming
• Percentage of Scrap
• Percentage of Rework
• Visual Statistical Analysis
• Applicable Lot and Serial
Information
• Labor Hours Performed
Quality Reporting System
43. The Phoenix Group Supply Chain ServicesFalcon Supply Chain Services
Suppliers
Staging
Point
Project 3
Consolidated
into full
truckload.
Project 2
Project 4
Project 5
Project 1
• Falcon coordinates and handles execution of all shipments.
• On-site Falcon personnel coordinate with WDC for by-the-hour delivery for all
material. Allows for flexible timing and install depending on plant pace as
well as greater security of material.
• On site Falcon personnel receive equipment as it arrives.
• All material is tracked online on Falcon website. Customers and personnel
have access to view/edit the equipment list at all times.
Transportation
44. Falcon Supply Chain Services
Transportation
•Freight consolidation by region-reduces overall
freight burden.
•Utilize TMS, MercuryGate
−Ability to set up suppliers to enter freight pick ups
on web
−Web entries pop-up at Falcon FBC-Freight Booking
Center
−Lower tariffs due to consolidation of freight volume
−After a review of due dates, supplier locations, and
transport mode MercuryGate develops a
consolidation plan
−System allows for real-time pickup, in-transit and
delivery status
−Multiple freight reports can be established and
shared
45. The Phoenix Group Supply Chain ServicesFalcon Supply Chain Services
As a TS 16949 and IS0 9001 Certified Company
PQM has certified trainers on Staff
• 5 ISO Certified Auditors
• 3 OSHA Certified Trainers
• Annual Employee Saftey Training
• OSHA Forklift Training
• HAZMAT & HAZCOM Training
• Customer Facility Orientation
** On-Site Project Leader oversees the
compliance of all saftey requirements
while onsite at a Customer Location
Certifications
47. The Phoenix Group Supply Chain ServicesFalcon Supply Chain Services
Thank You
Visit our Web Site @ www.falcon-manufacturing.com
Questions? Contact: Falcon - Supply Chain Services
Larry Waskom – Executive Vice President
Falcon Corporate Office
164 South Park Blvd
Greenwood, IN 46143
Office: (317) 884-3600
Mobile: (812) 371-2400
Email: lwaskom@falcon-manufacturing.com