Global Supplier Capacity Planning - QPIP#15
Welcome to the Production Purchasing Seminar. The seminar covers QPIP
15 or as it is known, the Global Supplier Capacity Planning project (GSCP).
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Global Supplier Capacity Planning - QPIP#15
The seminar will be a presentation by PowerPoint. It will be a mix of text, screen
graphics and annotations. The screen graphics are taken from WIPS and WebQuote.
This video of the presentation should take about 25 minutes.
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Global Supplier Capacity Planning - QPIP#15
At the end of this video you should understand
• what QPIP15 is,
• that it is also known as the Global Supplier Capacity Planning
project or GSCP.
• Why we are implementing GSCP,
• what are the core elements of GSCP,
• how does it affect me as a supplier and my buyers,
• and what can I do to prepare for the implementation.
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Global Supplier Capacity Planning - QPIP#15
So what is QPIP.
QPIP stands for quality and productivity improvement plan, a global cross functional
process involving engineering, manufacturing, purchasing, quality, and sales and
marketing. The aim of QPIP is to identify functional, quality and productivity
improvement opportunities and plan for their implementation.
QPIP 15 is the Global Supplier Capacity Planning project –it is the purchasing project
and its purchasing champion is Steve Jones. The project seeks to improve our
volume requirement calculations and our recording and the monitoring of supplier
capacity commitments. When our planned volumes exceed your committed
capacity, we will trigger an RFQ to you identifying the possible capacity shortfall
issue.
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Global Supplier Capacity Planning - QPIP#15
So why QPIP 15.
There are several reasons, the first being our commitment to increase our global
sales volume by 50 per cent by 2015. Our global growth is resulting in increasingly
complex supply and manufacturing footprints, with many models are now being built
in various regions around the world. With this growth in volume and complexity it
has become clear that our processes for controlling Supplier capacity commitments
are both had disconnected and non-robust.
The second major reason is we have had numerous instances of lost production
opportunities, where our supply base has been unable to meet our volume
increases. There have been cases where we believed we had installed capacity only
to find that as the volume increased the real world installed capacity could not meet
our volume increases. These situations where we cannot meet our volume
requirements as a result of capacity shortfalls have adverse effect on our bottom line
profitability – and those of the suppliers involved.
The third major reason is that we are unable to identify potentially issues early.
Current, pre the launch of GSCP (QPIP 15) capacity shortfalls often became apparent
only when we started to lose production as a result of an inadequate supply of a
part. In future, processes needed to identify potential capacity problems before they
affect production. The processes also need to eliminate noise allowing buyers and
supplier to focus on true concerns.
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Global Supplier Capacity Planning - QPIP#15
The Global Supplier Capacity Planning project seeks to establish a common,
transparent and shared understanding of Ford volume requirements and
supplier capacity commitments.
The project will affect purchasing, suppliers, capacity planning and supplier
technical assistance (STA).
The applications most effected are WIPS, WebQuote and GCP/MCPV (global
Capacity Planning System/Manufacturing Capacity Planning Volumes). SIM
(Supplier Information Management) and VPP/MPP (our Program timing
systems – Vehicle Parts Progress/Manufacturing Parts Progress ) will, to a
lesser extent, also be affected.
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Global Supplier Capacity Planning - QPIP#15
The first thing to say about GSCP is that there are no new major processes or
procedures, rather it consolidates and integrates existing processes and procedures
– the only significant new procedure will be for capacity deviation approval, this will
be an offline process and requires senior Ford management approval. It will be used
in instances where a supplier cannot meet our new volumes needs and so a
recognised ‘real’ capacity issue exists.
The process for calculating of APW (average production weekly) and MPW
(maximum production weekly) volumes will be common between vehicle and the
Powertrain. In the past MCPV used a CMMS bill of material, while GCP used a
WERS bill of material. With GSCP, both MCPV and GCP will use the WERS BOM.
In the main, flex (things such as seasonal volume fluctuations) will be applied to
MPW instead of APW, making our APWs more robustly reflect our projected volume
needs.
Average and maximum purchased part capacities (PPC) will no longer be optional,
although there shall be a few exceptions for commodities such as hardware,
prototype parts or Service Unique parts. GCP/MCPV will become the common
master repositories for volume and PPC data.
QPIP 15 will not solve all volume or capacity issues. The complexities of defining
PPC and volumes will still remain. Where you use the same line for several different
parts, or shares your line capacity between Ford and other OEMs, you will still have
the difficulty of apportioning your PPC between different parts. The way we calculate
our volumes, using sales and marketing mix across various markets and regions and
applying these to WERS BOMs does not change. However, what will improve
significantly is the visibility of possible capacity problems.
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Global Supplier Capacity Planning - QPIP#15
What are the core elements of GSCP?
Input of APPC & MPPC becomes mandatory in WIPS and WebQuote. It will be
possible to add multiple PPCs with different effective dates, allowing for capacity
ramp-up over time. Additionally, when quoting for tooling, it will be necessary to
indicate what PPC the tooling supports.
GCP/MCPV, WIPS and WebQuote will freely exchange PPC and volume data.
GCP/MCPV will be the master for PPC and volumes. Changes to volumes or PPCs
made in any system will feed upstream and downstream into the other systems.
Core to the GSCP project is the idea that volume ATPs are only generated when a
capacity shortfall occurs. A volume ATP will auto-issue an RFQ to the supplier. If the
supplier simply increases their PPC (in WebQuote or GCP/MCPV) with no cost
implications, WIPS will auto approve the ATP. If the volume drops between the time
the RFQ is sent and recap, WIPS will no action the ATP. Any volume changes that
occur will update volumes on an ATP up to recap approval.
The result will be that volume ATPs provide a clear indication of potential capacity
issues. Any volume ATP where you are unable to increase your PPC to meet our
volume needs will require at FMC Management or Senior Management approval. In
situations where the capacity shortfall cannot be resolved and there is a true
capacity issue, Executive Director approval will be needed.
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Global Supplier Capacity Planning - QPIP#15
This diagram shows schematically the interface between the systems and the
interaction between the users. As the diagram shows, you can enter your PPC
directly into WebQuote or GCP/MCPV. Wherever the capacity data is entered, be it
in WebQuote by you, WIPS by buyers or you in GCP/MCPV, the data will be stored in
the GCP/MCPV.
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Global Supplier Capacity Planning - QPIP#15
When an RFQ is generated as a result of our volumes exceeding your PPC, it
will have a Causal Factor of “Capacity Confirm”. There will be no Requesting
Engineer as this RFQ has not been created as a result of any engineering
activity.
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Global Supplier Capacity Planning - QPIP#15
The line Item (Part number) tab, the total APW of all the plants on this RFQ is
shown. It is not necessarily the total global APW of all the plants that will use
the part, only those plants that the buyer who issued the RFQ is responsible
for.
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Global Supplier Capacity Planning - QPIP#15
In WebQuote you will still see the AP W and MPW for the plants on the ATP.
However you will need to use GCP/MCPV to see the volumes for all the plants you
supply or are on an open RFQ for you.
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Global Supplier Capacity Planning - QPIP#15
The APW and MPW figures will be shown for each plant on the RFQ for a
three year period. Sometimes timing difference between different Ford
regional businesses may result in future years appearing to have a volume
drop – check with your buyer if in doubt.
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Global Supplier Capacity Planning - QPIP#15
You should also note that the volumes you are being asked to support will be
for the peak global model year volume – in this example the peak year is
2013. In cases where there are other plants using this part, in addition to
those on the RFQ, the global peak year may not be the peak year for volumes
for the plants on this RFQ.
So you should always be entering your PPC for a PART, not just for the plants
shown on the RFQ. Having said that, you would also need to provide a PPC
that supports volumes in any years before the peak model year – again, in
this example you would need to support – if possible – a PPC in 2012 of at
least 7192, and a PPC in the peak year of 2013 of at least 9077
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Global Supplier Capacity Planning - QPIP#15
Comments are added to Capacity Confirmation RFQs. These comments will
provide you with some indication of what change happened to volumes or
PPCs that triggered the RFQ to be issued .
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Global Supplier Capacity Planning - QPIP#15
When you enter your production quotes you will have new mandatory fields to
compete for your PPC. The PPC Data you enter should be the portion of your
total PPC that you will commit to meet the volume requirements for this part in
total, not just for the plants on this RFQ.
Clearly, where your total PPC is shared between different part numbers or
different OEMs, apportioning the total available PPC across these differences
is a challenge. GSCP does not change this. But what it does do is that in the
instances where our volume for a part goes up and exceeds the PPC you has
committed, a Capacity Confirmation RFQ will be generated allowing you the
opportunity to rebalance your PPC apportionment.
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Global Supplier Capacity Planning - QPIP#15
Any existing PPCs for this part will be displayed. The entry type shows where
the PPC was entered – in this example one was entered directly into
GCP/MCPV while the other was quoted via Web Quote (or entered by a buyer
in WIPS).
If any future effective PPCs are now invalid, uncheck the ‘Retain’ (keep)
checkbox and the PPC details will be deleted when your quote is approved by
Ford.
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Global Supplier Capacity Planning - QPIP#15
You may find cases where PPC details that are displayed were entered before
the launch of GSCP and do not have operating patterns (as shown in this
example).
If you try to retain these you will not be able to submit your quote as Web
Quote will validate these and as they are incomplete will prevent quote
submission. You need to correct them by ‘unchecking’ the Retain checkbox,
and adding a new PPC line with the same PPC details and effective date, but
this time with Operating Patterns.
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Global Supplier Capacity Planning - QPIP#15
You can add multiple PPC lines, allowing for a phased ramp-up of capacity to
be shown.
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Global Supplier Capacity Planning - QPIP#15
In addition, if you are quoting for tooling one PPC line must be selected to
indicate what PPC will be achieved using the tooling being quoted.
The selected PPC may be an existing one, or a new one you are adding.
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Global Supplier Capacity Planning - QPIP#15
Recognizing that there is not a direct relationship between tooling and the
PPC being shown for a particular part, the tooling capacity should be for the
tool and facility on the line with the longest cycle time. This means that the
tooling capacity should always be equal to and usually greater than the
quoted PPC.
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Global Supplier Capacity Planning - QPIP#15
To prepare for launch, work on resolving any existing capacity shortfalls.
Many of the will be as a result of PPC data in GCP/MCPV not being current or
complete. To identify where shortfalls exist, use GCP and MCPV reports.
Once you have identified any shortfalls that are just data problems, correct
these in the relevant system. Where there really does seem to be a capacity
problem, work with your Ford buyer to resolve these.
In GCP use the Demand/Capacity Compare Report
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Global Supplier Capacity Planning - QPIP#15
In MCPV use the Compare Demand to Capacity Report
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Global Supplier Capacity Planning - QPIP#15
The other two actions to take is to ensure that you are using WebQuote for
quoting and to ensure you are using GCP/MCPV. As I explained earlier,
Capacity Confirmation ATPs will automatically issue an RFQ to you in
WebQuote, allowing you to address the potential capacity issue immediately.
If you also actively use GCP/MCPV to maintain your PPCs, Capacity
Confirmation ATPs could be eliminated except in cases where a real capacity
problem exists.
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Global Supplier Capacity Planning - QPIP#15
A letter was sent by Tony Brown, Vice President, Global Purchasing to the
CEOs of our major suppliers advising them of the change and asking them to
cascade it through their organisations.
Additionally on the Ford Supplier Portal (FSP) we have been posting banners
to alert supplier users to these changes. We have run this presentation live
via a series of on-line Seminars.
Finally supplier instructions for using WebQuote and the FAQs on the Supplier
Self-Help Portal will be updated to support the launch.
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Global Supplier Capacity Planning - QPIP#15
To summarise:
GSCP, also known as QPIP 15, is the global purchasing plan to improve
Purchase Part Capacity (PPC) commitment tracking.
We are implementing GSCP to support our increase global sales, avoid
capacity issues that affect our bottom line and as a spinoff, reduced buyer and
supplier workload.
With the launch of GSCP, the input of PPC Data becomes mandatory. In
addition all volume and PPC Data will be taken from a common source and
the definitions of PPC, APW and MPW will be standardised. A new procedure
will be put in place to handle true capacity shortfalls.
Volume ATPs (now called Capacity Confirmation ATPs) will only be generated
when potential capacity issues are identified. In WIPS and WebQuote PPC
Data will be mandatory and there will be integration between GCP/MCPV,
WIPS and WebQuote.
In preparation for the launch of GSCP, buyers and suppliers are advised to
work on any existing capacity issues.
And finally, ensure you are enabled via Covisint and FSP for WebQuote and
GCP/MCPV.
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