OEMs and Tier 1 suppliers need their Tier 2 and Tier 3 suppliers to help them be competitive in today’s automotive market. But what do the OEMs and Tier 1 suppliers really want and need from their suppliers? AIAG and leadership of OEMs and Tier 1 suppliers came together to identify the key issues of quality supplier resources:
- Little or no resources of experienced Supplier Development/Lean experts
- High costs
- Not enough time available
- No defined metrics/program or training available
To address these issues an AIAG Project Team comprised of professionals from organizations such as Dana Corporation, DENSO International America, Delphi Corporation, Magna International, Magna Powertrain, and more developed the Subtier Supplier Management Process Guideline. The guideline outlines the four core phases of the supplier management process as well as recommendations for improvements.
Pre-selection: This phase has customers outline part requirements and supplier pre-qualification data so that suppliers can submit a bid list for assessment.
Selection: This is where technical capability will be evaluated and the decision of whether or not to award business. The decision to award business is based on more than price alone.
APQP/PPAP: APQP will begin with the supplier where different elements will be included in the scope based on the need the supplier fulfills. At this point suppliers should be utilizing Control Plan templates and APQP checklists. Success in the APQP phase allows suppliers to submit a PPAP. Once the PPAP has been approved, it’s time for launch.
Monitoring and Development: Performance of suppliers will be monitored to ensure that the management process fits with the guidelines. If suppliers are falling below performance standards, a development process is in place until results become acceptable or an alternative supplier needs to be brought in.
Having quality subtier suppliers allows for a more efficient manufacturing process and an overall better product. Want to know if your company or your suppliers are on track? Download the Subtier Supplier Checklist, fill it out and see how you stack up.