If printed, this is an uncontrolled document. Reference most current version on-line. Governing Procedure: GP001-001 Supplier Delivery Alert / Alarm Process Division: Category: Primary User: Author: Plant PCO: Assembly Inbound Modules / 3rd Party Suppliers Production Control, Material Control, PCO Staff Stphanie Isaacson/CTC/DCC/DCX Purpose: The purposes of this procedure are to: - establish the communication protocol to alert the appropriate Plant PC, Staff PC (including Senior Management), and other impacted organizations regarding delivery issues (potential and actual) with modular suppliers. - provide minimum requirements for managing exceptions outlined in this document, including tracking, root-causing, and coordinating the proper resources to solve chronic issues. * NOTE: More frequent exception monitoring may be required, depending on the individual incident and/or Management discretion. System(s) Used: 1) Assembly Broadcast 2) PCO PPSR.xlsx template 3) eCIMS CLS/CLD or Manual eCIMS 4) Microsoft Excel 5) Forever Requirement: 6) Monthly Scorecard Inputs / Outputs of Process: Inputs: Modular / 3rd Party Supplier buy-In for this process, Plant PC and module supplier key contact names and numbers, exception tracking Outputs: Timely advanced notification of potential module supplier delivery issues such as: inbound supplier shortages, short-shifting, short-shipping trailer loads, etc.. * Ultimate desired output is zero Assembly Plant module supplier responsible line disruptions. Frequency: Daily Additional Frequency information (if applicable): As needed or requested Definitions: See RM001 Acronyms for an extensive list -----> SPD Sequenced Parts Delivery; represents strictly a delivery method, regardless of payment. JPH Jobs Per Hour (what an hourly production rate is defined as). PPSR Practical Problem-Solving Report (which is PCO's Root Cause Analysis Corrective Action database). eCIMS Electronic Corporate Issue Management System (which is the Corporate standard on-line 8-Step Corrective Action database). Chysler Group LLC PCO How-To Guide - GP001 - 001 1 If printed, this is an uncontrolled document. Reference most current version on-line. PAB Pay As Built; the supplier is paid for the part/module at the time of production installation. EOP Extension Of Plant; an offsite facility acting on the plant's behalf (i.e. uses the plant systems to receive, ship, etc.). Module Supplier: In this procedure, Module Supplier represents all Module Tier I's, Tier I SPD's, and 3rd Party SPD suppliers. Ship Bank: This is the quantity of material between the customer plant's installation point and when it has been loaded on a trailer by the module supplier with a manifest processed (R/Y/G levels must be approved by assembly plant). Description / Activity: Scope: This procedure applies to all Assembly plants which have Module Suppliers as defined above. Responsibilities: 1. It is the responsibility of the Module Materials Manager to: A. Instruct each modular supplier (for their assigned plant) on the policies & communication protocol outlined in this procedure and to obtain evidence of buy-in. B. Verify appropriate tip levels for Red (R), Yellow (Y) [vs. Green (G)] ship bank color statuses for each module supplier, as they may differ based on unique facility / delivery / etc. constraints. C. Establish appropriate communication protocol / escalation cadence (Process Protocol). D. Facilitate monthly reviews of exception data (from End of shift reports, audits, etc.) from each module supplier with Plant PC, Module Supplier Reps, and any other applicable representatives. E. Facilitate weekly reviews with all other Module Managers to review audit findings, chronic supplier issues and issue appropriate read across. F. Analyze monthly exception data for chronic issues and assign PPSR or Manual eCIMS to root cause. G. Assemble the appropriate departmental representatives within PC, SDRM , P&S and Manufacturing based on chronic failures to implement appropriate solutions / corrective actions and read across to all other plant / module relationships. H. Take leadership role in developing standardized processes to be implemented within plant and modular supplier locations, including a long-term systemic communication approach for exceptions throughout all Tiered suppliers to module suppliers to plants and to P&S. I. Assist APST with launches of new SPD, PAB, or Module Suppliers for facilities inclusive of conducting supplier process analysis to ensure process robustness. J. Conduct Supplier Audits every 6 months and report findings to appropriate parties; follow-up and close all items on PDCA's. (Supplier Audit Results are published to Purchasing, MLM team, SDRM and SQ) 2. It is the responsibility of the Modular / 3rd Party Suppliers to: A. Adhere to the communication direction provided by the plant's Module Manager at all times, even when that communication direction may change due to change(s) in circumstance. B. Establish appropriate procedure for communication protocol / escalation cadence (Process Protocol & Proactive Notification). Proactive Notification criteria includes: Supplier issues, machine issues, Labor issues, new commodities at site, new location, etc. (If there is a question for the need of the P.N. form contact your Modular Manager.) C. Immediate contact to all Production Control Management (PC Manager, PTC, Material Manager, Modular Manager, Logistics, etc.) if encounter any catastrophic line disruptions, imminent threats to production (at Modular Supplier), or changes to Supplier Forever Requirements (system link below); immediate phone call to plant MUST be followed with Proactive Notification (system link below) or Process Protocol email (whichever applies). D. Always include the Plant Modular Manager as a Team Member on any Forever Requirement Notification. E. Attend monthly reviews of exception data (from End of shift reports, audits, etc.) with Modular Manager, Plant PC, Module Supplier Reps, and any other applicable representatives. F. Support Audits and any PDCA's created from audit; to ensure they are closed in timely manner. G. Answer Manual eCIMS issued by Modular Managers to ensure corrective actions are submitted according to requirements and validated. H. The Module Supplier is responsible for tracking all delivery exceptions via monthly scorecard: this should include missed windows, miss-sequenced parts, CLS/CLD issued, etc.. (see attachment for details) Monitoring/ "Exception" Control: Each module / 3rd party supplier and their customer Assembly plant must agree on tip levels: 1. One quantity identified as the amount that will trigger going from a green status to a yellow status, signifying the module supplier may need special means to deliver the parts on time (such as an expedite). 2. One quantity identified as the amount that will trigger going from a yellow status to a red status, signifying on-time delivery is in jeopardy. NOTE: Red tip levels must be identified to provide enough reaction time to still be able to protect from downtime. Chysler Group LLC PCO How-To Guide - GP001 - 001 2 If printed, this is an uncontrolled document. Reference most current version on-line. Each module / 3rd party supplier is to provide all requested information, as directed by the Module Materials Manager currently in email or page format: Process Protocol Requires Hourly Notification Emails Until Green Bank Status: Required Format: Subject line of email should be in this format: Customer Plant, Supplier, Ship Bank Color, Hourly NOTE: If multiple modules/ parts are supplied by the same supplier to the same customer facility, the subject line must include the most severe status (i.e. if 5 parts have a green shipped bank status and one part has a yellow shipped bank status, the email subject line must read Yellow). Body of email should have this information for each supplied module/part: * R or Y Bank Reason Codes / Descriptions = 010 - Manpower 020 - Internal Supply System Interruption 030 - Broadcast 040 - Facilities 050 - Production Equipment 060 - Carrier/Transportation Issue 070 - Internal Part Shortage 080 - PIV Equipment 090 - Safety Issue/ Incident 100 - Product Quality 110 - Short-shifting NOTE: If multiple modules/ parts are supplied by the same supplier to the same customer facility, the subject line must include the most severe status (i.e. if 5 parts have a green shipped bank status and one part has a yellow shipped bank status, the email subject line must read Yellow). A "1", "2" or "3" will be added to the bank reason code to distinguish further responsibility: 1 = (Module) Supplier responsibility 2 = Carrier responsibility Chysler Group LLC PCO How-To Guide - GP001 - 001 3 If printed, this is an uncontrolled document. Reference most current version on-line. 3 = (Chrysler) Plant responsibility For example, a module supplier may provide a reason code of 060, but technically the issue may be the fault of the assembly plant not unloading the trailer in time for return. So this reason code would then be recorded as 0603. Monthly Scorecard Requirement: The Module Supplier is responsible for tracking all exceptions via monthly scorecard as outlined above, posted in a centralized area, and submitting monthly summaries to the Module Materials Manager for evaluation. See Related Documents Section for standard template. Modular Manager Reporting: On a monthly basis, the Module Materials Manager evaluates the exception data for trends and holds a "council" meeting with the module suppliers, plant PC, and any other appropriate personnel required to investigate the issue(s) and develop appropriate solution(s).  The Module Materials Manager have a centralized "data" storage: Section 2 (Audits/Visits Pareto Info): PPSR Template (Attached in "Related Documents" Section). Section 3 (Supplier Issues by Reasons): Chysler Group LLC PCO How-To Guide - GP001 - 001 4 If printed, this is an uncontrolled document. Reference most current version on-line. PPSR Template (Attached in "Related Documents" Section). On a quarterly basis, all Module Materials Managers hold a "workshop" to review all consolidated trends and appropriately assign read-across resulting from the monthly "council" meetings. There should be similar graphs representing consolidated information (that are used at the plant level) across all plants which summarize all YTD incidents across all plants affected by modular suppliers. All graphs depicted in this governing procedure were snapshots of the actual ones produced by Modular Manager Group. Flow Chart / Other Reference: N/A Related Document(s):    Monthly tracking graphs. Completed PPSR's. Completed Manual eCIMS.  PPSR Template ==>  Standard Ship Bank Tip Level and Process Protocol Template ==> Protocol Process Template.docx .  Communication Protocol Communication Protocol.pptx  Monthly Module / 3rd Party Scorecard Chysler Group LLC , but use excel for actual input ==> PPSR.xlsx . Monthly Sequenced Supplier Performance Summary template.xlsx PCO How-To Guide - GP001 - 001 5 If printed, this is an uncontrolled document. Reference most current version on-line.  Link to Proactive Notification procedure and template.https://cda.extra.chrysler.com/icon/v/index.jsp?vgnextoid=408fd774a7ab6110VgnVCM10000084a61c35RCRD&site=sdd_e&vgnextrefresh=1 Function: Purpose of Reference: Reference Source/Example: Related Document(s): Information / Data Required: Document/Form Example: Document Retention: Additional Retention information (if applicable): Report Source: Disposal Method: Electronic Notification: Distribution List: Revision History: Rev Num Edited Comments History of Status: This Governing Procedure was 'Proposed For Approval' on 08/22/2008 04:27:56 PM by Kate L Suliman This Governing Procedure was 'Approved' on 10/14/2008 12:49:10 PM by Michelle Eagen This Governing Procedure was sent to the electronic notification list on 10/14/2008 12:49:19 PM by Michelle Eagen This Governing Procedure was 'Under Review for Pending Changes' on 05/30/2013 03:26:20 PM by Stphanie Isaacson This Governing Procedure was 'Proposed For Approval' on 07/08/2013 08:12:32 AM by Stphanie Isaacson This Governing Procedure was Released on 07/22/2013 10:18:28 AM by Paulina Noriega Campos This Standardized Report was sent to the electronic notification list on 07/22/2013 10:18:28 AM by Paulina Noriega Campos Old Revision History Rejection Notes Chysler Group LLC PCO How-To Guide - GP001 - 001 6