1. Property
of
Faurecia
-
Duplication
prohibited
1
Delphi Switch QRQC 11-03-10

2. Property
of
Faurecia
-
Duplication
prohibited
2
QRQC Delphi Switch – D1 Problem Description
5W/2H IS IS NOT Retained Factors
1) What is the problem:
Missing ECU switch 83457777 from
Delphi
Low runner Delphi switch High runner, other suppliers Inventory discrepancy
2) Why is it a problem:
Caused premium freight and
missing parts on seats at the
customer
Out of material at FAS with nothing
in transit within reach
Lost inventory in house Delphi (unique supplier) inventory
management
3) When did the problem
happen? When was the problem
created?
Happened B shift 5-13
Created in release data
Information in release data created
late delivery
Supplier shipping or transit delay Information in release created late
delivery
4) Who found the problem? Who
Created the problem?
Found by the sequence picker,
creatred in planning
Found in the picking process Detected through visual
management
Not deteced in VM system
5) Where found, Where created?
Found in picking center, created in
planning
Detected at stock out Found at customer
6) How was the problem found?
Stock out at picking
7) How many?
46 pices

3. Property
of
Faurecia
-
Duplication
prohibited
3
QRQC Delphi Switch – D2 Risk to Similar Processes
Risks on similar processes , machines and plants
Risky process or condition to report
Unanticipated stock outs are possible on parts where release data is bad for any reason and visual
management is not effective.
2nd Problem Redefinition
Scope Reduction
Low runner Delphi switch stock out due to bad release timing and ineffective visual management.

4. Property
of
Faurecia
-
Duplication
prohibited
4
QRQC Delphi Switch – D3 Containment Actions
Action Pilot Deadline Effectiveness New Risk
Detected
Comments / Conclusions
Notify customer WP 5-13 Y N Customer aware containment
required. Owe timing.
Contact supplier to get material AS 5-13 Y Y Supply critical at supplier and
will require hand carry
Contact carrier for expedite arrangements AS 5-13 Y Y Hand carry required and
there is always risk of delays
with this mode
Create list of lineside only stored parts to
ensure daily audits are done on stock levels
EE 5-14 Y Y 19 part numbers found

5. Property
of
Faurecia
-
Duplication
prohibited
5
QRQC Delphi Switch – D4 Factor of Non-Detection
Is / Is Not
factor of Non
Detection
Control Point Rule for Risk
Prevention
RS
NOK
RS OK R
vs
St
d
St
d
O
K
Investigat
e Actions
Res
p
DL Result
1 Delphi has
unique steps
in the QAD
inventory
process
The QAD
inventory
loaded in the
BOP daily audit
with customer
demand
Ensure the
ending daily
balance is
consistent with
delivery
expectations
Delphi has
an additional
QAD location
that was
loaded in the
BOP report
Actual in
house
inventory
loaded in
the
report
X O Adjust
inventory
in the
BOP
report for
all Delphi
AS 5-
20
BOP report
shows actual
demand
3 Not detected
through visual
management
Supermarkets
and Escalation
Boards
Parts below
safety are
added to
Escalation
Board
Parts were
not visually
managed.
Stored
Lineside only
BOP
DOH is
visible
and
monitore
d in SM
locations
X O Review
other
parts not
part of
visual
managem
ent
EE 5-
14
19 other
parts at risk
Why Why Why Why Why D4 Root cause
1 Delphi in transit
used as in
house stock in
BOP DOH
report
When pulling
QAD inventory,
Delphi in
transit is
loaded
Delphi is
received
immediately
when shipped
Payment terms
require
exceptional
management
Accounting terms
not supported in
original PO
Process variation injected into QAD
planning due to purchasing issues.
Eliminate variation, do not add.
3 Oversight in set
up of VM and
Escalation
Boards
Did not
validate all
parts, low
runners
omitted
System
developed on
shop floor
without
systematic plan
BOP visual
management
required quick
containment
Part shortages
were prevalent
and unforeseen
In an effort to contain 80% of critical part
shortage issues, 20% were not immediately
addressed in first phase.

6. Property
of
Faurecia
-
Duplication
prohibited
6
QRQC Delphi Switch – D5 Factor of Occurrence
Is / Is Not
factor of Non
Detection
Control
Point
Rule for Risk
Prevention
RS
NOK
RS OK R vs
Std
Std
OK
Investigate
Actions
Res
p
DL Result
2 Inventory
discrepancy
Inventory
records in
QAD
Inventory
accuracy is to
be at 95% or
greater
Inaccurate
inventory
creates late and
early shipping
information at
suppliers
Inventory
accuracy
provides
proper
planning
baseline
X O Determine
root cause of
inaccurate
inventory
AS 5-
21
Inventory
records
reconciled
from bad prior
adjustment
4 Not detected
in VM
Planning
parameters
determine
the shipping
schedules
Ensure
parameters
provide
expected
information to
suppliers
Parameters set
at 25 days,
shipping Friday
Parameters
, set at 28
days,
shipping
Tuesday
X O Change all
European
suppliers to
28 days
AS 5-
21
Ship day
changed from
Friday to
Tuesday
Why Why Why Why Why D4 Root cause
2 Inventory
records
incorrect
Adjustment in
error
Adjustment
made with
material receipt
not posted
Check sheet
not followed
Adjustment
worksheet not
utilized
Unclear expectations regarding adjustment
process
4 Reduced transit
time in QAD not
see as risk
Impact on QAD
output not
known
Was not
reviewed with
experts or
tested prior to
implementation
Assumption that
QAD would
handle the
change similar
to SAP
SAP is the more
familiar system to
planner
Planning polyvalence open for
improvement; more interaction with master
planner

7. Property
of
Faurecia
-
Duplication
prohibited
7
QRQC Delphi Switch – D6 Corrective Actions
Actions DL Resp Risk
Asmnt
Effect New Risk
3 The 19 parts that have only line side storage are moved off line with only
limited stock left on line. Transit stock left in supermarket storage.
5-21 EE Y Y N
3 The low runners also have visual indicators line side to improve visual
management and daily review.
5-21 AS Y Y N
3 Low runners follow the same escalation process as all other material 5-21 AS Y Y N
2 QAD settings changed from 25 to 28 days to ensure consistency with carrier
and shipping schedules
5-21 AS Y Y N
2 Shortage report extended to include 4 weeks showing the impact of
customer schedules on delivery and demand
5-28 AS Y Y N
2 Add column to the Delphi BOP review for in transit material to prevent
duplication of inventory
5-28 AS Y Y N
3 All QAD parameter changes are reviewed in the weekly PC&L staff meeting
prior to implementation
6-16 KR Y Y N
1 All adjustments are signed off prior to execution by PC&L manager 6-30 KR Y Y N

8. Property
of
Faurecia
-
Duplication
prohibited
8
QRQC Delphi Switch – D7 Indicators follow up by date
5-13
5-21
5-28
VM and
Escalation
Process
Shortage
report
expanded
and add
Delphi in
trans
column
QAD
parameter
changes
5-20
6-16
Weekly
parameter
change
audit

9. Property
of
Faurecia
-
Duplication
prohibited
9
QRQC Delphi Switch – D8 Indicators follow up by date
Actions Resp Date – Deadline Check Y/N
All actions validated and
implemented
Ross 6-30 Y
Operators Informed EE/SH/KR 6-24 Y
Instructions updated at WS EE/SH 6-28 Y
Lessons learned created Ross 7-12 Y
Lessons learned shared Ross 7-13 Y
Follow up by core teams Ross 7-16 Y
FMEA / Risk Assessment
Updated
Ross 7-16 Y
D8- Lessons Learned

10. Property
of
Faurecia
-
Duplication
prohibited
10
QRQC Delphi Switch – Lessons Learned
Causes of Occurrence:
Lessons Learned:
Causes of Non-Detection:
Lessons Learned:
1. Parameters in QAD were not set correctly
and adversely impacted delivery timing
2. Inventory adjustments made in error
1. Review changes with Master Planner
and test prior to implementation
2. Sign off sheets for all adjustments
1. Parts were not included in the VM set up
2. BOP Review included Delphi in transit
1. FES standards should be in implemented prior to
ramp up
2. Build in safety rules for known variation points

11. Property
of
Faurecia
-
Duplication
prohibited
11
QRQC Delphi Switch – Cause Analysis
Ship Delivery Pattern
Determines the day that
the shipment is to arrive in
FAS
In order to provide the
supplier the proper
shipping day, the Transport
Days must be a multiple of
7
By decreasing the transit to 25 days, the day of the week for shipping changes
and the freight is not able to make the container shipping schedule

12. Property
of
Faurecia
-
Duplication
prohibited
12
QRQC Delphi Switch – Cause Analysis
An inventory adjustment inflated the stock records in QAD
The inventory adjustment was made during the stocking process and not
caught because the proper documentation and check list was not utilized
By decreasing the transit to 25 days, the day of the week for shipping changes
and the freight is not able to make the container shipping schedule
QAD Delivery Pattern was changed adjusting the supplier schedules

13. Property
of
Faurecia
-
Duplication
prohibited
13
QRQC Delphi Switch – Cause Analysis
An improper inventory adjustment inflated the stock records in QAD
A check list ensures all possible causes are
verified prior to adjustments

14. Property
of
Faurecia
-
Duplication
prohibited
14
QRQC Delphi Switch – Cause Analysis
•The view on top is the standard 28 day transit time with a Tuesday pick
up.
•The bottom view shows the delay created by the 25 day parameter.
•The pick up in the 25 day parameter is moved to Friday by QAD
•This does not allow transit and document processing time
•Freight does not make load time at vessel
•Adds seven days to transit
QAD Settings Analysis

15. Property
of
Faurecia
-
Duplication
prohibited
15
QRQC Delphi Switch – Detection Analysis
•Above is the view in the BOP Analysis with the in transit Delphi location included
as well as the Panalpina in transit
•The actual view in the BOP Analysis should have looked like this. This view
leaves in the Panalpina in transit and removes the Delphi in transit in QAD.

16. Property
of
Faurecia
-
Duplication
prohibited
16
QRQC Delphi Switch – Detection Analysis
•Prior to the issue, the Shortage Analysis was done on a two week review
•By expanding the view, the shortage analysis now shows impact of
schedules and delays out 5 weeks
Stock Analysis Report – Reviewed to determine the impact of schedules

17. Property
of
Faurecia
-
Duplication
prohibited
17
QRQC Delphi Switch – Detection Analysis
The Standard for Supermarket and
Visual Management was not followed
Supermarket with Safety Stock
indicators
Escalation Boards with part and delivery
information
Visual indicator showing safety
stock segmentation

18. Property
of
Faurecia
-
Duplication
prohibited
18
QRQC Delphi Switch – Shop Floor Improvements
Lineside marked with indicators for low
usage parts
Off line storage for low
runners with common safety
stock indicators
Kan ban used to control volume of
material lineside