GME Quality Assurance Management Our Turnaround in Quality

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GME Quality Assurance Management Our Turnaround
in Quality

• Peter G. Dersley,Vice President GME Quality

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In the 90s

• Opels reputation for Quality no longer true
• Profit maximization at the expense of quality
• The decline of a brand
• GME at a crossroads

GMEs quality ratings were not good
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Approaching the present

• GME reports back impressively
• Product again takes center stage
• Strong new models from Rüsselsheim
• Success only a question of time if GME maintains
  this course

GME quality recovery exceeds expectations
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Quality pays off less warranty claims

1 Year old cars
3 Year old cars
65
66
Number of customer complaints
3 Years Model year 2006 Prognosis based on
selected warranty data (high mileage cars)
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Opel among the best in dealer satisfaction
with quality
with model line-up
Satisfaction Overall
2006
OPEL
2005
2004
Source DSI Study Germany FAW University
Bamberg (5 best score/very satisfied)
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Continuous progress in bi-annualCar Check Study
2003
2000
2005

Opel

Opel

Opel
Source Bi-annual Car Check Study / Customer
Complaint Index by Model
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Gold Medal for the Meriva in the annual German
TÜV Report 2007

• Meriva scores best among 113 cars across all
  segments
• The majority of the GME models improved
  significantly vs. last years report

. . . . . .
113
Source TÜV Report 2007 Germany
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Yes, GME quality recovery has exceeded public
expectations
What has changed? What has driven the turnaround
in GME quality performance?
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Transition process in quality awareness
CultureWorrying about quality
CultureWorrying about quality
Systems/ Processes
Systems/ Processes
Role/ Responsibility
Role/ Responsibility
Leadership attitude What must I do to be the
best?
Leadership attitude What is the minimum I
must do to stay out of trouble?
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Transition process in quality awareness

• Step 1
• Provision of prerequisites

Step 2 Enable transition

• People involvement
• Capable organizational structures
• Capable business processes
• Reasonable resources

• Clear targets and objectives
• Leadership involvement
• Coaching and support
• No compromises,no excuses
• Customer orientation

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Quality is defined by customers expectations

• Fundamental dimension of quality
• Workmanship and finish
• Freedon from faults
• Reliability/durability
• Perceptual quality

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Implementing the GM Global Quality System

• Comprehensive approach covering all areas

Objective
Manufacturing
World-class quality
Supplier
Development
Aftersales
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First priority was the improvement of initial
quality delivered to our customers
Setback in quality with model launches
Past
Minor Improvement
1. Rapid Improvement
Warranty Claims
2. Quality Launches
Today
Model Year
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Structured problem resolution and tracking
process for rapid improvement
Cornerstones of the GM-PRTS System
Process control

• Prioritization of problems
• Personal accountability
• Rapid decision making
• Carline specific action plans
• Tracking and alert system

Lessons Learned
Problem Detection
Confirmation
Root Cause
Solution
Feedback
Implementation
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Structured problem resolution and tracking
process for rapid improvement
Continuous lead-time reduction until improvement
implementation
Higher problem solution throughput
more than 2000 p.a.
Four times faster
Objective
Source GM Global Problem Resolution Tracking
System (PRTS)
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GM Global Launch Process to ensure production
readiness
Traditional Industry Approach
Start of production

• Starting late
• Late plant involvement
• No integrated approach

Months prior to SOP
High quality risks through ramp-up of production
-1
-7
-6
-5
-4
-3
-2
Pilot Line
Plant Line
Pilot 1
Pilot 2
Pre-Prod.
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Significant improvement in launch
qualityStart-up warranty blips after launch
Quality level _at_ run-out of predecessor
Launch peak-successor
Recovery to previous quality level
Introduction Global GM Launch Process
Warranty Cases
Source GME warranty system total Europe data /
Vehicles 2 months in service
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Zero defect approach through GM-Global
Manufacturing System (GM-GMS)
Fundamental GM-GMS principles

• People Involvement
• Standardization
• Build-In-Quality
• Short Lead Time
• Continuous Improvement

• Elements
• Product quality standards
• Manufacturing process validation
• In-process control validation
• Quality feedback / feedforward
• Quality system management

Implemented in all assembly plants
Source GM Global Manufacturing System (GM-GMS)
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Quality Andon System at each work station to
ensure Build-In-Quality
Previous production step
Following production step
Andon Cord
Correction
Dont accept any defects
Dont pass any defects
Prevent Defects
Source GM Global Manufacturing System (GM-GMS)
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In-line quality checks according to the GM
Standardized Inspection Process (SIP)
Body Shop
Paint Shop
Assembly
End of Line Check
Dyn. Vehicle Testing
Water Test
Final Check
Squeak Rattle Test
Audit
Shipping Check
Pre-Delivery Check (Dealer)
Vehicle delivery to our customers
Source GM Global Manufacturing System (GM-GMS)
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Voice of the Customer Wall in each GME Plant
External Quality Results gt Key Metrics
Follow up on details we need to work on
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Implementing the GM Global Quality System

• Comprehensive approach covering all areas

Objective
Manufacturing
World-class quality
Supplier
Development
Aftersales
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GM Global Supplier Quality Improvement Process
16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1
Start of production
Time Line
Escalation Steps
Problem Resolution
Quality Planning
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Two metrics confirm improved supplier quality
Supplier caused quality disruptions
NOK parts per million delivered
- 94
- 87
Source GM Global Quality Tracking System
(GM-GQTS)
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Implementing the GM Global Quality System

• Comprehensive approach covering all areas

Objective
Manufacturing
World-class quality
Supplier
Development
Aftersales
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Paradigm shift Use potentials in product design
From
To
Reactive Design Quality
Predictive Design Quality

• Quality Tested In
• Evolving design requirements
• Extensive design rework
• Product performance bybuild and test
• Performance producibility problems fixed
  after product in use

• Quality Designed In
• Disciplined CTC flowdown
• Controlled design parameters
• Product performance modeled and simulated
• Designed for robust performance producibility

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Paradigm shift in product design and development

• In the 90s Fix Initial Quality Problems
• Current Engineering group established
• Statistical problem solving introduced
• 2000s Robust Design (Quality in development)
• Focus on Long Term Quality andPerceptual Quality
• Design For Six Sigma
• Improved validation
• Quality function verifies design

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Vehicle Line Executive Team Vital for fast and
balanced problem-solving
Core VLE Team
Quality
Extended VLE Team

• Full responsibility for project deliveries
• Makes key trade-off decisions

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Perceptual Quality Process
Quality means more than just defect free cars

• Styling (Harmonious flowing lines and
  contemporary)
• Materials (Organic-feel, harmonious and
  practical)
• Ergonomics (Comfortable and understandable at
  1st glance)
• Functionality (Usable space as well as Surprise
  Delight)
• Good Fit Finish (Attention to detail and
  sturdiness)

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Perceptual quality... when the senses pipe up
The new Corsa a class of his own
Car of the Year 2007 (What Car , UK)
Best Small Car (ADAC, Germany)
Family Car of the Year (Belgium)
Autobest 2007 Award (Central / Eastern Europe)
Topauto 2007 Award (Jury 140 Journalist)
... and others
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Implementing the GM Global Quality System

• Comprehensive approach covering all areas

Objective
Manufacturing
World-class quality
Supplier
Development
Aftersales
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Direct customer feedback to the dealer
All customer verbatims are scanned and provided
in the Aftersales database.
Dealer
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World-class quality approach
Manufacturing
Next Steps / Opportunities
Supplier
Development
Aftersales
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World-class quality approach
Our objective
GM Quality System
Improvement of quality and customer satisfaction
Industry Average Today
Perfection gt Zero in-process defects gt
Fulfillment of customer expectations
Problem Prevention gt Minimize in-process defects
Early 90s
Function Orientation
Inspectionand Repair
Optimization of ... Production Systems
... Design Systems
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