Global SEALs aims to establish an emerging market supply base that provides a competitive advantage. The organization uses a professional sourcing team approach for supplier selection that focuses on technical capability, financial performance, partnership commitment, and establishing 6 Sigma quality controls. The goal is to protect customer value by identifying suppliers that can consistently meet stringent quality requirements and drive productivity improvements over time.
1. Global SEALs
•Examine “Inside Out” “Passion for Juice”
•Experience “First Hand”
•Due Diligence for the
“Juice” Edge
YOU CAN’T RESEARCH A SUPPLIER IN
ASIA FROM A CUBICLE IN THE STATES
Goiing tthe Exttra Miile … ffor tthe Juiice!
Go ng he Ex ra M le … or he Ju ce!
2. Global SEALs
“Passion for Juice”
Global SEALs …
“Emerging Market” Leadership
Gllobal Sourrcing Excelllence and Leaderrship
G obal Sou cing Exce lence and Leade ship
3. Speed with Certainty
“Passion for Juice”
Goiing Affter tthe Juiice … Mach 4
Go ng A ter he Ju ce … Mach 4
4. Global SEALs
SEAL Mission … “Passion for Juice”
GET JUICE!
Every Second
Controls
Every Minute
Relations
Speed Every Hour
Every Day
Certainty
Terrain
Maxiimize tthe Juiice … Miinimize tthe Riisk
Max mize he Ju ce … M nimize he R sk
5. CTQ: Local Nationals who …
1. Speak the language Global SEALs
2. Know the culture
3. Know the region
4. Regional home
= 24 x 7 Project Execution
Latin America
6. Global SEALs
“Passion for Juice”
Strategy:
Offshore / Nearshore
Blackjack Status
2 Qualified Offshore sources in 2 different countries
1 Qualified Nearshore source
Minimum … Double Toothpicks 11
Beware of Roman Empire, Country Risk, Currency Risk, Supplier Risk, Political Risk
Riisk Miitigation, IIncrease Leverrage
R sk M tigation, ncrease Leve age
7. Cash is King $
“Passion for Juice”
Strategy:
$
Cash Flow
Jugo3 Gold Status
Increase Payment Terms = 2%/60 net 90
Lead-Time Reduction = FG @ supplier, US Based WHSE
Incoterms = DAP Destination Carriage Unpaid
B o tto m L i n e …
Conttract DNA … att tthe Sourrce
Con ract DNA … a he Sou ce
8. Get Juice Equation …
“Passion for Juice”
Juice Now + Juice Later =
Jugo “360”
Trust but Verify
Doublle Team … IIncumbent and Onboarrd
Doub e Team … ncumbent and Onboa d
9. Global SEALs – Value Add Menu
“Passion for Juice”
Emerging Market Leadership:
Terrain Intelligence / Relations (Region / Supplier)
Supplier Search
Supplier Selection (Audit, C-TPAT)
Economics (Region / Supplier … Commercial DNA)
Qualification / Part Approval
Production and Productivity (Year over Year Juice)
Ongoing Inspection and Testing Supplier Part
Other … Engineering Services Selection Approval
3rd Party Lab Customer
Value
Future … Buying / Planning for NAFTA?
Blackjack and Jugo3 Strategies On-Going
New Product (grow top and bottom lines) Inspection
& Testing
CTQ … Speed wiith Cerrtainty
CTQ … Speed w th Ce tainty
10. Global SEAL DNA
“Passion for Juice”
• Athlete
Perseverance … Never Give Up!
• Cadet
Leadership … Getting Extraordinary Things Done!
• FBI
Investigate, Strategize, and Execute!
• CIA
Global Mindset!
GllobalSourrcingExcelllenceand Leaderrship
Gobal Sou cing Excelence and Leade ship
12. Emerging Markets – Blue Expansion “Passion for Juice”
Big Six:
Brazil
Russia
India
LCC LCP LC Z
“country” “province” “zone”
China
Indonesia
Mexico
13. Next Juice Mine is … ?
“Passion for Juice”
Countries based on World Bank income groupings (calculated by GNI per capita, Atlas method).
██ High income
██ Upper-middle income
██ Lower-middle income
██ Low income
15. JuicEnomics
“Passion for Juice”
The “Juice”
Process and Flow
Speed wiithCerrtainty
Speed wth Ce tainty
16. VMR
“Passion for Juice”
The Global SEAL Organization is focused on establishing
an Emerging Market Supply Base that will provide the
Firm an advantage over the competition. The
foundation of the strategy requires identification of
suppliers who can consistently meet the Firm’s
stringent quality requirements. The identification of
quality suppliers based up on a defined process used
throughout the Global SEALs Emerging Market Supply
Chain.
VallueManaged Rellationship
Vaue Managed Reationship
17. Supplier Snap Shot
“Passion for Juice”
What does a Supplier ‘look like’ that can give the
Firm a competitive advantage?
• Ability to meet or exceed product specification requirements
• Manufacturing processes capable of Best In Class quality -
Driving toward a 6 sigma capability - 1.33 Cpk.
• Low cost producer on a world scale
• Manufacturing process flows designed for Best In Class lead
times
• Leader in technology, keeps the Firm at the front of the
technology curve
• Continuous Productivity Improvement
VallueManaged Rellationship
Vaue Managed Reationship
18. Keys to Engagement – Foundation for Success
“Passion for Juice”
Developed an Internal Sourcing Team for each Here is an RFQ … Go … NO
product / project
• Quality Assurance Manager Professional Sourcing Team
Sourcing - Engineering
• FBI / Global Sourcing Manager/Black Belt (US Quality
Based)
• Engineer
• Operations Manager
• CIA / Sourcing Quality Engineer/ Black Belt
Engineering & Quality
(Local National)
Sourcing & Manufacturing
The Criteria for the team members:
• Manufacturing knowledge of the product
• Sourcing knowledge of the country Product Knowledge
• 6 Sigma Controls in Tracking, Repeatability, &
Quality, and Execution Manufacturing Know How
• Producibility Controls (CTQ)
• Quality Control Process Mapping Bomb Pop Modeling
• The Supplier Qualification and Producibility
Controls are the most critical to success.
GllobalReach … KnowlledgeRiich
Gobal Reach … Knowedge Rch
19. CTQ … Selection
GLOBAL SEAL TEAM “Passion for Juice”
EVALUATION CRITERIA
TOTAL SYSTEMS PARTNERSHIP
COST COMMITMENT
TECHNICAL FINANCIAL
* Process CAPABILITY STRATEGIC * Management
* Material PERFORMANCE POSITION Quality
* Development * Process HISTORY * Information
* Quality * Material * Stability Sharing
* Inventory * Design * Quality * Industry * Investment
* Test * Delivery Reputation * Productivity
*R&D * Responsiveness Improvement
* Support * Warranty Plan
PrrocessActtivityDeffinitions -- 6 SiigmaQuallity
P ocess Ac ivity De initions 6 Sgma Quaity
20. Global Controls for Risk Mitigation
“Passion for Juice”
• Supplier Selection • Part Approval - (Producibility)
•Supplier Survey •Tooling Qualification
•On-Site Supplier Audit •Measurement Systems Analysis
•C-TPAT Security Audit •Capability Analysis
•In Country SEAL Resources •Inspection & Test Plans
•Detailed RFQ’s •Performance Criteria
•E-Sourcing •Life Test & Certifications
6 SIGMA CONTROL … OVERVIEW
• On-Going Inspection & • White Paper – Supplier Selection / On Site
Audit
Testing • Manufacturing Process – Survey: Casting,
Forging, etc.
•Shared I&T Plans
• Producibility Controls – (CTQ in process)
•Incoming Inspection • Capability Analysis (CPK of 1.33 required)
•Regular Performance Testing • Life Test and Certification
•Supplier Product Certification • Product Failure Modes and Effects Analysis
• Quality Control Plan
•Material Certification • Project Monitoring Tools
6 SiigmaConttrolsiinTrrackingand Executtion
6 Sgma Con rols n T acking and Execu ion
21. 6 Sigma Process Controls = Customer Value
“Passion for Juice”
6 SIGMA CONTROL … OVERVIEW
• White Paper – Supplier Selection /
On Site Audit
• Manufacturing Process – Survey:
Supplier Part Casting, Forging, etc.
Selection Approval • Producibility Controls – (CTQ in Part
Approval Process)
Customer • Capability Analysis (CPK of 1.33
Value required)
• Life Test and Certification
• Product Failure Modes and Effects
Analysis
On-Going • Quality Control Plan
Inspection • Project Monitoring Tools – (On-
& Testing Going I & T)
PrrotectingCusttomerVallue
P otecting Cus omer Vaue
22. CTQ … for the Present and Future
“Passion for Juice”
Companies do not compete …
Supply Chains do!
ForrViictory… 1 + 1 = 3 and 1 + 1 = 1..5
Fo Vctory … 1 + 1 = 3 and 1 + 1 = 15