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2012_12_07_Auto_Conference_India_ Final
1. Automotive Logistics Conference India
Need for Seamless Replicationp
of Global Best Practices
for Automotive Supply Chains
Pune, India
Hari Sivaprakasam Dr Jens Möller
Dec 07, 2012
Hari Sivaprakasam, Dr. Jens Möller
2. Need for Seamless Replication of Global Best Practices
for Automotive Supply Chains
Global Industry Focusy
Extending the Enterprise
Quality Management and Standardisation
Local Execution to provide operational excellence
2
3. Our Company Profile
Revenues: $4.9 billion
Net Revenues: $1 7 billion
Financial Highlights (FY12)
Net Revenues: $1.7 billion
Operating Income: $149 million
Net Income – continuing ops: $87 million
21,000+ employees
360+ Freight Forwarding locations in 270 cities in 60+ countries
Operate in 22+ M Sq Ft; 181 UTi leased and 59 client owned Contract Logistics centers
Comprehensive Global Network
Service Lines
Operate in 22+ M Sq Ft; 181 UTi leased and 59 client-owned Contract Logistics centers
• Aerospace & • Fashion & • Air & Ocean Freight Forwarding
Industry Verticals Key Services
Aerospace &
Defense
• Automotive
• Chemical
• Consumer & Retail
Fashion &
Apparel
• Hi-Tech
• Pharmaceutical
& Healthcare
P j t Mi i
& Ocea e g t o a d g
• Contract Logistics
• Distribution
• Trade Services & Customs Brokerage
• Transportation Management
3
• Cruise • Projects, Mining,
& Energy
p g
• Supply Chain Consulting
4. Industry Focus -
Driving Client Centricity within a Matrix
UTi Executive Board
Global Lead
Automotive
Vertical
Regional
Strategic
Planning
Regional
Sponsorship
Executive
Sponsorship
Regional
Leads
Lead
Africa Finance
Planning
E
S
eads
Americas CL + FF
Regional
Lead
EMENA
Freight Forwarding
Operation
Contract Logistics
OperationEMENA
Regional
Lead
APAC / GC
Operation
Supply Chain
Design
& Innovation
4
Regions Global SupportOperational Execution / Excellence
5. Industry Focus
Extending the Enterprise
UTi’s Automotive Vertical has a global dedicated team of automotive specialists that will
support in designing, implementing and operating complex and innovative automotive
solutions like integrated assembly and sub assembly operations JIT concepts Suppliersolutions, like integrated assembly and sub assembly operations, JIT concepts, Supplier
parks
Key Success Factors
Distrib tion Logistics
• Global Resource Pool
• Executive Sponsorship
• Standardized Solutions &
Processes
International Supply Chain Mgt
Auto focused Solutions
5
Production Logistics
Distribution Logistics Processes
• Configured & Trained locally
6. Commitment to Quality
Compliance is more important than Certificationp p
QUALIFICATIONS
ISO9001: 2000
TS16949 Automotive
QUALITY SYSTEMS
ADVANCED QUALITY PLANNING
QUALITY TOOLS
FMEA / CONTROL PLANS
6sigma programs
8D DISCIPLINE REPORT
BENCHMARKING
PARETO ANALYSIS
QUALITY OPERATING SYSTEM
VOICE OF CUSTOMER
CONTINOUS IMPROVEMENT
STATISTICAL PROCESS CONTROL
6
7. Mandatory for Implementations
Advanced Quality Planning (AQP) Process
• Process Flow shows all steps to complete work & meet all of
our client s requirementsour client s requirements
• SIPOC (Supplier Input Process Output Customer) shows• SIPOC (Supplier Input Process Output Customer) shows
inputs and output to each process step
• FMEA (Failure Mode Effects Analysis) analyzes risks to
process and suggests controls to error proof, minimize risk
• Standardized operator work instructions and contingency
proceduresp
7
8. SIPOC & Process Flow
SIPOC analyzing Risk,
Solutions & ActionsSolutions & Actions
Process Flow for
S li i li
8
Supplier Direct Delivery
10. Replication Case Study - Volkswagen India
JIT/JIS Supplies, Sequencing and Line feed
Door Trim
Panels
IP
Headliner
Module
Brackets
Bumper
Bracket
Scope of UTi
JIT Warehousing & Sequencing
JIT Line Side Delivery
Rear
Bumper
Fuel Tank
IP
Wiring
Harness
HVAC Unit
Bracket JIT Line Side Delivery
Primary Transportation to JIT
Warehouse
Secondary Transportation from JIT
Warehouse to VW Plant
Direct Transportation from Suppliers
Exhaust SystemSeats
Front
Bumper
Middle ConsoleAxle/Sub
Frame
Basis Demand,
D id C
Basis Order,
Pl f JIT
Supply Basis
R l i h
Direct Transportation from Suppliers
to VW Plant
In-Plant Sequencing
Decide Car to
Assemble
Plan for JIT
Delivery
Replenishment
Order
Order
Automatic
Replenishment
Order
VW Suppliers
(14)
Delivery Replenishment
Delivery
Consolidation for
long Distance
10
Direct Delivery for Short Distance
11. Volkswagen JIT Program Chakan, India
Extending the Enterprise & Local Execution
UTi Executive Board
Eric Kirchner Ed Feitzinger Brian Dangerfield
CEO EVP, Global Operation President, APAC
Dr. Jens Möller
SVP , Automotive Vertical
Executive Sponsor VW
Hariharan S
Santosh Gaikwad
Manager ‐ Operations
, p ,
Sameer Khatri
Managing Director
India
Rob Choy
Volkswagen JIT
Hariharan S
Director
CL &D India
Manager ‐ Operations
UTi ‐ Chakan
Bharat Kand Mahindra ParhadAbdul Patel
Barry Thompson
Regional Director
CL APAC
Phani Krishna
Auto Lead India
Rob Choy
Regional Auto Lead
APAC
Team
In charge ‐Transport
UTi ‐Chakan
In Charge – Line Feed
UTi ‐ Chakan
In charge – Warehouse
UTi ‐Chakan
CL APAC
Andreas Keller
VW Account
Ketan Shah
GM Implementation
CL&D India
Auto Lead India
Global Automotive
Vertical
India
Leadership Team
Site Management Team – Local
Execution & Operations Excellence
Global Implementation
Specialists
HR, Finance & IT
Vertical Leadership TeamExecution & Operations Excellence
11
12. Volkswagen JIT Program Chakan, India
Quality Management and Standardisation Process
AQP Flow charts and Visual AidsAQP, Flow charts and Visual Aids
AQP Manual
12
13. Volkswagen JIT Program Chakan, India
Operational Excellence
Evaluation Criteria Client Name & Service Level Experienced
C1 C2 C3 C4 C5 C6 C7 C8 C9
1 Compliance to agreed
SOP’s
1 1 2 1 1 1 1 1 1
External Audit meets requirements in
1- 90% + cases;2- 70 – 90% of cases;3- 40 – 70% of cases; 4- below 40% of cases.
Audits
SOP s
2 Stacking, Storage,
Handling
1 1 1 1 1 1 1 1 1
3 Timely Reports on
Receipt / Inventory
1 1 1 1 1 1 1 1 2
4 Timely information &
action in case of Error
1 2 2 1 1 1 1 1 2
External audit on client’s feedback
on vendor quality
Internal Audit- UTi 5 star QMS
KPI5 Timely response to
Queries / Complaints
1 1 1 2 1 1 1 2 1
6 Easy access to Co. Staff /
Sr. Mgrs.
1 2 2 1 1 1 1 2 1
7 Knowhow & Experience of
Staff
1 1 1 1 1 1 1 1 1
8 Attitude / Behavior of Staff
& Mgrs.
1 2 2 1 1 1 1 1 1
KPI
Line Uptime/Reliability
Truck Turn Around
Inventory Accuracy
Region APAC
Site Certification Validation Results
84.14Assessment Score
d d
9 Availability of
infrastructure – IT / MHE
/Communication etc.
1 1 2 1 1 1 1 2 1
Internal Audit
y y
Claims
People
Hiring right resources
Provide required training to excel
Site Name Chakan, India
Site Code 30020
SCC Report# O‐CL‐30020‐SCC‐01‐EN
Validated Score
Initial
87.96
Recommended
Certification Level
Recommended
Validation
Certification Level Silver
Provide required training to excel
Inculcating right work culture
(continually Improve)
Ability to align with global thought
process
Date of Validation 21‐Nov‐12
Validator (s) John Barrett
Certification Level
Change YES
13
15. Key factors for
Successful Replications of Auto Solutions
Global Industry Focus -
Understand the business and it’s specific requirements
p
Understand the business and it s specific requirements
Extending the Enterprise -
Global organization to support and facilitate replication of best practices
Quality Management and Standardisation -
Mandatory to work with consistent processes and measurements globally
Local Execution / Operational Excellence -
Local team need to understand and live towards these global standards
Hariharan Sivaprakasam Dr. Jens Möller
Director CLD SVP UTi Automotive Global
Fon: +91 99401 86588 Fon: +49 172 2117462
15
Mail: hsiva@go2uti.com Mail: jmoeller@go2uti.com