Governing Procedure: GP051-05 Inventory Management Requirements for EOP/TPP/Module Facility
If printed, this is an uncontrolled document. Reference most current version on-line. Governing Procedure: GP051-05 Inventory Management Requirements for EOP/TPP/Module Facility Division: Category: Primary User: Author: Status: All Divisions Extension of Plant EOP - Extention of Plant Shelly Eagen/PS/DCC/DCX Released NOTE! Purpose: The purpose of this procedure is to provide the high-level requirements for productive inventory parts management and financial accountability to Extension of Plants or Module facilities, contracted with Chrysler Group LLC to be responsible for managing bailed productive inventory parts on behalf of Chrysler Group LLC. Extension of Plants and Module facilities are defined in this procedure as Third Party Provider (TPP) locations. NOTE: The "Primary User" in the header of this document only specifies EOP - Extension of Plant. Due to a systems limitation, this is the only option programmed for selection of this type. Therefore, this procedure is considered applicable to all EOP's, TPP, and Module facilities that bail productive material parts on behalf of Chrysler Group LLC. *NOTE: This procedure is published in Covisint under the Reference Section, under the Purchasing category. System(s) Used: Chrysler Group LLC specific systems, such as, but not limited to: A. If supporting Assembly Chrysler Group LLC plants: Receiving Region (which is sometimes referred to as Stock Status), Controlled Storage, EOP Lite. B. If supporting Powertrain or Stamping Chrysler Group LLC plants: CMIS, MPS. Inputs / Outputs of Process: Inputs: Authorized Purchase Order, indicating a contract with Chrysler Group LLC, appropriate authorization to utilize Chrysler Group LLC specific systems according to specified contracted scope of work. Outputs: Appropriately managed productive inventory parts that adheres to Chrysler Group LLC's standards and procedures. Frequency: On demand (When Required Only) Additional Frequency information (if applicable): As specified in the Purchase Order's scope of work. However, recommended frequencies will be stated in the "Description / Activity" section of this document. Chysler Group LLC PCO How-To Guide - GP051 - 05 1 If printed, this is an uncontrolled document. Reference most current version on-line. Definitions: See RM001 Acronyms for an extensive list -----> Within this document, the terms EOP = Extension of the Plant = Third Party Provider (TPP) = Module Facility, and may be used interchangeably. Bailed = The term "bailed" is defined as productive material parts that are assets owned by Chrysler Group LLC, which are managed by a TPP on Chrysler Group LLC's behalf until used by a Chrysler Group LLC plant. The term "bailed" is also defined as productive material parts that are assets owned by Chrysler Group LLC, which are built up into a sub-assembly unit, which is then supplied to the Chrysler Group LLC plant. *NOTE: Module facilities may be scoped to manage 100% of bailed Chrysler Group LLC productive material parts used in the specified sub-assembly unit or less than 100% of the productive material parts used in the specified sub-assembly. This procedure applies only for those parts managed on behalf of Chrysler Group LLC. ASN = Advanced Shipment Notification; electronic transmittal of shipment information from Tier I suppliers (internal or external) to a Chrysler Group LLC facility. An internal supplier is a Chrysler Group LLC supplying facility, and an external supplier is any other Tier 1 supplier not affiliated with Chrysler Group LLC. RDR = Receiving Discrepancy Report; when the ASN quantity does not match to the physical quantity received, or when there is damage to inbound productive material parts. High Theft = productive material parts that experience or have the potential to experience abnormal trend losses. E&O = Excess & Obsolete; productive material parts which are no longer needed to satisfy regular production requirements. Non-Conforming Material = productive material parts not suitable for productive use. Includes productive material parts which have been scrapped, damaged, identified as defective, or E&O. The term "plant" will refer to a Chrysler Group LLC infrastructure, and the term "facility" will refer to non-Chrysler Group LLC infrastructures, such as TPP. P.O. = Purchase Order, which indicates a contract with Chrysler Group LLC and includes a specified contracted scope of work. The term "inadvertent return" refers to shipments of productive material parts sent from a Chrysler Group LLC plant back to a TPP without proper notification or communication. T-ID = An individual's user ID. A unique identifier for each individual requiring access to Chrysler Group, LLC's inventory systems. A T-ID is always 7 characters and has the format 'T####AB', where the T remains constant, the four #'s are normally the last four digits of the individual's social security number, and the 'AB' normally indicates the individual's first and last initials. There are some instances where the 'AB' might have a number instead of a letter, and this is acceptable. A T-ID and password are required for TPP personnel to access Chrysler Group, LLC's inventory systems. Description / Activity: Scope: *The beginning scope of this document occurs when productive material arrives on the Chysler Group LLC PCO How-To Guide - GP051 - 05 2 If printed, this is an uncontrolled document. Reference most current version on-line. property of the TPP's facility (productive material parts which are still contained in its final mode of transportation to the TPP, but not yet received into the Chrysler Group LLC plant's on-hand inventory). The scope of this procedure includes any TPP contracted to do business with Chrysler Group LLC in terms of metering, sequencing or the sub-assemble of productive material parts which have been received by the TPP on behalf of Chrysler Group LLC. If the TPP building is not physically attached to the using Chrysler Group LLC plant (none of the walls of the TPP facility are open to the Chrysler Group LLC plant), the responsibility for each productive part ends when it is documented that the part has been shipped, either by itself or within a sub-assembly, to the using plant (reference Section 6 for documentation requirements). If the TPP building is physically attached to the recipient Chrysler Group LLC plant (one or more of the walls of the TPP facility are open to the Chrysler Group LLC plant), the responsibility for managing each productive material part ends when: --If the productive material part is sequenced, then when it is used on a vehicle. --If the productive material part is metered, then when it has been transferred to Chrysler Group personnel at the productive material part defined drop zone. This procedure applies to any contracted TPP through a Purchase Order, regardless of physical attachment status. P.O. = Purchase Order Responsibilities: 1) It is the responsibility of the contracted TPP to adhere to the requirements in this governing procedure. 2) It is the responsibility of the contracted TPP to review this document at least annually and comply with any documented changes. 3) It is the responsibility of Chrysler Group LLC to review this document annually and update it, as required. 4) It is the responsibility of the contracted TPP to consider all "GP" (Governing Procedure) documents as mandatory requirements regardless of P.O. defined scope of work. 5) It is the responsibility of the contracted TPP to consider all "SF" (Standard Form) documents as mandatory forms to use as dictated per the corresponding GP. 6) It is the responsibility of the contracted TPP to consider all "SR" (Standard Report) documents as mandatory reports to use as dictated per the corresponding GP. 7) It is the responsibility of the contracted TPP to consider all "HT" (How-To) documents as detailed instructions on how to perform certain functions as required per the P.O. defined scope of work. TPP Requirements: 1) Productive Material Parts Receiving Activities: 1. At the time of productive material receipt, perform a blind tally of the quantity received by part. Then match this blind tally to what the Tier I supplier submitted within their ASN. At a minimum, verify part number, quantity and date received to a unique receiving document number. This must be done electronically, either through the same system used by the Chrysler Group LLC plant or via one which interfaces with it, such as EOPLite. If identified in P.O. scope of work, verify number of parts in each container received. 1.1 At the time of receipt , communication1 to the Chrysler Group LLC plant is required in Chysler Group LLC PCO How-To Guide - GP051 - 05 3 If printed, this is an uncontrolled document. Reference most current version on-line. the event of: 1.1a. Receiving discrepancies occur – where the actual quantity received does not match what the Tier I supplier submitted in their ASN, take picture of shipping label to send with RDR form to plant or 1.1b. An inbound shipment has experienced physical damage. In the event of physical damage, 3 pictures must be taken prior to unloading the shipment. If necessary, contact Chrysler Group LLC plant immediately to gain access to a camera. Then follow Carrier Claims Process GP009. 1.1c. An inbound shipment of Foreign Material. Take pictures of shipping labels of foreign material. Then submit the RDR form to the plant. 1Communication requirements: 1.1a. At a minimum, must be recorded on RDR form (see related documents) and can be emailed to Chrysler Group LLC plant if using electronic version, or submitted daily to Chrysler Group LLC plant if using paper black-border form. 1.1b. At a minimum, must be recorded on RDR form (see related documents) and can be emailed to facility if using electronic version, or submitted daily to facility if using paper red-border form. It is also a requirement to notify the facility immediately of the damage incident either by phone, radio, and/or email in order to begin claims processing. 1.2 At the time of identification , all damage to inbound trailer equipment (i.e. the trailer itself), regardless of responsibility, must be immediately communicated2 to the Chrysler Group LLC plant and then documented on the Standard Form (SF010) for trailer damage. Then follow Trailer Damage Process GP042. 2Communication requirements: Immediate communication can be via phone, radio, and/or email. 1.3 TPP must follow Chrysler Group LLC-specified retention requirements for inbound shipment invoices and RDR's. 1.4 The TPP is required to email daily updates to the Chrysler Group LLC plant regarding the status of all inadvertent productive material part returns from the Chrysler Group LLC plant back to the TPP. If occurrences happen, they must be recorded on the Standard Form (SF021) and included in the daily email sent to the Chrysler Group LLC plant. If no inadvertent productive material part returns are experienced for that day, then an email must be sent to the Chrysler Group LLC plant confirming that no occurrences were experienced, and the Standard Form does not need to be used in this instance. 2) Productive Material Parts Storing Requirements: 2. The TPP must manage Chrysler Group LLC's productive material part assets to prevent theft, damage, and inventory shrinkage. 2.1 Every part managed by the TPP must be stored in an environment that will not negate the functionality of productive material parts. Financial accountability will be the responsibility of the TPP if Non-Conforming Material is the result of the TPP's environment. Refer to Section 8 for additional Financial Accountability detail. 2.2 TPP is responsible for ensuring all productive material parts are managed on a First-In-First-Out (FIFO) basis to readily identify appropriate productive material part clean points, if a segregation situation arises, and to mitigate any productive material part damage due to expired life of the productive material parts or exposure to adverse environmental conditions from extended storage time. Chysler Group LLC PCO How-To Guide - GP051 - 05 4 If printed, this is an uncontrolled document. Reference most current version on-line. 3) Productive Material Parts Counting Activities: 3. Every part managed by the TPP must be counted at a minimum daily, unless otherwise directed by the Chrysler Group LLC plant. At a minimum, Chrysler Group LLC must direct the TPP to comply with the A,B,C,D class frequency schedule (A= count every 60 days, B= count every 90 days, C= count every 180 days, and D= count once per year). Counts must be submitted electronically to the Chrysler Group LLC plant's inventory system (either counted using the same inventory system as the plant, or counted through a system which interfaces with it, such as EOPLite). Discrepancies between the actual record on hand and what was physically counted must be communicated in writing 3 to the Chrysler Group LLC plant at the time of discovery. A consolidated list may be submitted to the plant at the end of a single counting period in lieu of at the time of discovery. Date counted, part number, system balance, actual count quantity and variance quantity are minimum communication elements. Analysis4 of variances are first the responsibility of the TPP, then the Chrysler Group LLC plant. Chrysler Group LLC plant will inform the TPP how to correct the discrepancy. 3Written requirements: Must be sent via email. A spreadsheet may be incorporated in the email to submit part variance information. 4Analysis requirements: Analysis must be sent via email and using the Standard Analysis Template (SF020). If time permits, it should accompany the initial communication (see 3Written requirements). Otherwise, analysis must be submitted via email no later than 24 hours after initial communication. 3A. Any productive material part that is deemed as "High Theft" may be required to be counted at a different frequency than daily, as either directed by the Chrysler Group LLC plant or the TPP facility's environment. Reference GP044 for TPP High Theft Requirements. 3B. Any productive material part that is deemed Non-Conforming Material or potentially non-conforming must also be counted at a minimum daily, unless otherwise directed by the Chrysler Group LLC plant. This includes any material identified as E&O. 4) High Theft Productive Material Parts Requirements: 4. Follow requirements specified in GP044. 5) Managing Non-Conforming Productive Material Parts: 5. All Non-Conforming Material must be isolated from regular productive material part use at the time of identification. It is required of all TPP's to have identified space to accommodate isolation. Isolation is defined as setting apart from others / placing into quarantine, or providing sufficient separation to prevent the Non-Conforming Material to be mistaken for usable productive material. Acceptable practices include visual management signs, cage or fence, stickers, etc. 5.1 Upon identification, Non-Conforming Material occurrences must be communicated5 immediately to the plant. 5Communication requirements: Immediate communication must be via email. 5.2 Analysis6 of Non-Conforming Material occurrences are first the responsibility of the TPP, then the Chrysler Group LLC plant. 6Analysis requirements: Analysis must be sent via email and using the Standard Analysis Template (SF020). If time permits, it should accompany the initial communication Chysler Group LLC PCO How-To Guide - GP051 - 05 5 If printed, this is an uncontrolled document. Reference most current version on-line. (see 3Written requirements). Otherwise, analysis must be submitted via email no later than 24 hours after the initial communication. 5.3 It is required that non-conforming material is counted at minimum daily unless otherwise directed by the Chrysler Group LLC plant. 5.4 If a Chrysler Group LLC-owned productive material part is required to be destroyed as a result of a TPP's own quality testing requirement, then the TPP will be held financially accountable for the cost of the productive material part. Reference Section 8.3 under Financial Accountability. 6) Shipping Productive Material Parts &/or Empty Containers: 6. Chrysler Group LLC approved shipping documents must be used for EVERY shipment out of the TPP, regardless of what is being shipped. This applies to any asset owned by Chrysler Group LLC, which includes, but is not limited to: productive material parts, pilot material parts, vehicles, scrap material, containers, or other Chrysler Group LLC owned assets. This also includes any productive material parts being hand-carried out or mailed out of the facility. 6.1 If it is documented in the scope of work to ship out productive material parts and their associated container(s) to a location other than the Chrysler Group LLC using plant, TPP must document at a minimum, part number, part number quantity, container number, container number quantity, final destination, and date shipped to a unique shipping document number. This must be done electronically, either through the same system used by the Chrysler Group LLC facility or via one which interfaces with it, such as EOPLite. 6.2 If it is documented in the P.O. scope of work to ship out only containers, TPP must document at a minimum, container number, container number quantity, final destination, and date shipped to a unique shipping document number. 6.3 If the TPP is not physically attached to the Chrysler Group LLC plant, material shipped to the Chrysler Group LLC plant must be documented on Chrysler Group LLC approved shipping documents, but NOT processed in Chrysler Group LLC's system. This is for any productive material part or other specified asset being transferred from the TPP to the Chrysler Group LLC plant. Minimum information as stated in 6.1 still applies and must be kept on a log in lieu of Chrysler Group LLC's system. 6.4 If the TPP is physically attached to the Chrysler Group LLC plant, there is no need for shipping documentation, but there must be a manual or electronic log kept by the TPP indicating the productive material parts and associated quantities which have been shipped to the attached Chrysler Group LLC plant. 6.5 At the time of identification , all outbound trailer equipment (i.e. the trailer itself) damage, regardless of responsibility, must be immediately communicated2 to the Chrysler Group LLC plant and then documented on the Standard Form (SF010) for trailer damage. Then follow Trailer Damage Process GP042. 6.6. TPP must follow Chrysler Group LLC-specified retention requirements for outbound shipment paperwork. 7) Right to Audit: 7.1 TPP grants to Chrysler Group LLC or its representatives access to all of TPP’s information, including without limitation, counting records, receipts, correspondence, and other electronic and non-electronic documents relating to the management of productive Chysler Group LLC PCO How-To Guide - GP051 - 05 6 If printed, this is an uncontrolled document. Reference most current version on-line. material parts provided under the Purchase Order scope of work, as reasonably required for the purpose of auditing or verifying Seller’s performance of its obligations under this Purchase Order scope of work and its charges therefore. 7.2 Chrysler Group LLC or its representatives have the right to visually inspect and audit any TPP facility or process relating to the management of productive material parts or services provided under the Purchase Order scope of work. TPP acknowledges that Chrysler Group LLC or its representatives have the right to audit and make copies of all pertinent documents, data and other information relating to any of TPP’s subcontractor’s or supplier’s obligations under the Purchase Order scope of work. 7.3 Upon Chrysler Group LLC’s request, TPP will permit Chrysler Group LLC or its representatives to visually inspect and audit any such TPP's subcontractor’s or supplier’s facilities or processes relating to the productive material parts or services to be provided under the Purchase Order scope of work. 8) Financial Accountability: The TPP is financially accountable for any productive material part (asset) quantity discrepancies, unless otherwise proven to be Chrysler Group LLC's responsibility. The TPP is accountable for any productive material part quantity discrepancies or productive material part damage if not noted at the time of receipt. Financial accountability can be defined at a minimum as the cost of the lost or damaged asset, downtime associated with the loss or damage of the asset, or a combination of both. Other charges may apply based on the actual event. Additional requirements regarding Certified Line Shortages and/or Certified Line Disruptions are stated in GP017. 8.1 For any discrepancies between the balance on-hand in Chrysler Group LLC's system and the actual, physical quantity contained at the TPP facility, the TPP facility must initiate analysis of the discrepancy and provide written conclusions to Chrysler Group LLC. If there is a dispute with the conclusion provided to Chrysler Group LLC, then the dispute must be handled as stated in GP043 Procedure for TPP Chargebacks. 8.2 For any Non-Conforming Material identified, the TPP facility must initiate analysis of the discrepancy and provide written conclusions to the Chrysler Group LLC plant. If there is a dispute with the conclusion provided to Chrysler Group LLC plant, then the dispute must be handled as stated in GP043 Procedure for TPP Chargebacks. 8.3 Each Chrysler Group LLC plant supported by an TPP will create a 4-digit department number specific to each TPP location servicing it. This 4-digit department number will be used to systematically relieve inventory records of material loss and material damage incidents that are the TPP's responsibility. The 4-digit number will be used by the Chrysler Group LLC plant to track TPP responsibility. 8.4 It is the responsibility of the Chrysler Group LLC plant to communicate charges at least 2 working days prior to actual processing. Material loss charges and material damage charges will be processed initially through a scrap ticket transaction. 8.4a. If the charge is due to a material loss (not a damage), then it must be manually noted as such on the scrap ticket and segregated. 8.4b. The Chrysler Group LLC plant must manually segregate the scrap tickets in two files: one for actual material damage and one for material loss incidents. 8.4c. All financial disputes must be resolved within one calendar year of the original date of the occurrence; not the original date of the initial dispute. 8.5 It is the responsibility of the Chrysler Group LLC plant's Finance department to process Chysler Group LLC PCO How-To Guide - GP051 - 05 7 If printed, this is an uncontrolled document. Reference most current version on-line. the appropriate financial transaction or transactions which correspond to the systematically processed scrap tickets. 9) User Access Requirements 9.1 The use of generic ID's (i.e. T1234AB) or sharing T-ID's and/or passwords to access Chrysler Group, LLC systems is strictly prohibited. 9.2 It is the responsibility of TPP Management to coordinate with Chrysler Group, LLC personnel at the Chrysler Facility they support the establishment of individual T-ID's within the Chrysler Group, LLC Person Data Management (PDM) system when new personnel is/are on-boarded to ensure proper authorization to Chrysler Group, LLC's inventory systems can be accessed. This notification to Chrysler Group, LLC personnel must be provided in writing via email or fax and is required at the time of on-boarding to ensure the TPP personnel has the appropriate access to support job responsibility. 9.3 It is also the responsibility of TPP Management to notify Chrysler Group, LLC at the Chrysler Facility they support when personnel having access to Chrysler Group, LLC's systems is no longer employed by the TPP so appropriate system T-ID deletions can be processed timely. This notification to Chrysler Group, LLC personnel is required on a quarterly basis, at a minimum, and must be provided in writing either via email or fax only. No phone calls or radio are acceptable for this type of communication. Monitoring/ "Exception" Control: Monitoring the activities of the TPP are the responsibility of the Chrysler Group LLC plant and occurs with every correspondence received from the TPP, and from internal facility activity monitoring if the TPP is not physically attached to the Chrysler Group LLC plant. Flow Chart / Other Reference: None. Related Document(s): GP017 Processing Certified Line Shortages/Certified Line Disruptions 1) RECEIVING-SPECIFIC GP009 Carrier Claim Process GP042 Trailer Damage Reporting SF010 Trailer Damage Form SF021 Inadvertent Returns Form HT022 Arrive/Link/Dispatch Inbound Trailers HT195 Prioritize Unloading Using HOTTS HT196 Conduct Blind Tally of Inbound Material for URL Comparison HT197 Process Inbound Material Quantity RDR (form attached in link) HT202 Process Inbound Material Damage (form attached in link) HT208 Use EOPLite to Process Plant Transactions HT201 Receive/Receipt Inbound Material GP037-01 Inadvertant Shipment Root Cause Analysis Process Chysler Group LLC PCO How-To Guide - GP051 - 05 8 If printed, this is an uncontrolled document. Reference most current version on-line. 3) MATERIAL COUNTING-SPECIFIC GP044 TPP High Theft Requirements GP043 TPP Charge Back Procedure SF020 Standard Analysis Template HT203 Process Hidden RDR's 4) HIGH THEFT-SPECIFIC GP044 TPP High Theft Requirements GP043 TPP Charge Back Procedure 5) MANAGING NON-CONFORMING-SPECIFIC SF020 Standard Analysis Template HT204 Process Scrap HT205 Process E&O 6) SHIPPING-SPECIFIC HT208 Use EOPLite to Process Plant Transactions HT320 Use Container Scanning Application for Empty Container Shipments HT321 Container Ship Schedule HT323 Monitor & Update Container Ship Schedule RM124 Unit Load Stacking HT372 How To Create Itemized Outbound Empty Container Shippers 8) FINANCIAL ACCOUNTABILITY-SPECIFIC GP043 TPP Charge Back Procedure Electronic Notification: Distribution List: Cathy A Dean/ASME/DCC/DCX, AM_MFG_MLMAssemblyMex_Team, AM_MFG_MLMAssemblyUS-Can_Team, AM_MFG_MLMPowertrainMex_Team, AM_MFG_MLMPowetrainUS-Can_Team, AM_MFG_MLMStampingMex_Team, AM_MFG_MLMStampingUS_Team, AM_MFG-MLM_CorporateStaff-Assembly_Team, AM_MFG-MLM_CorporateStaff-MHE_Team, AM_MFG-MLM_CorporateStaff-Powertrain_Team, AM_MFG-MLM_CorporateStaff-Stamping_Team, AM_MFG_Preseries, AM_PS_PCOHowToGuide_Owner Revision History: Rev Num Edited Comments History of Status: This document was created on 10/10/2008 02:16:25 PM This Governing Procedure was 'Proposed For Approval' on 12/11/2008 10:57:31 AM by Michelle Eagen This Governing Procedure was 'Approved' on 12/11/2008 10:57:39 AM by Michelle Eagen This Governing Procedure was sent to the electronic notification list on 12/11/2008 10:57:44 AM by Michelle Eagen This Governing Procedure was 'Proposed For Approval' on 02/25/2009 11:35:48 AM by Michelle Eagen This Governing Procedure was 'Proposed For Approval' on 02/25/2009 11:35:57 AM by Michelle Eagen This Governing Procedure was 'Approved' on 02/25/2009 11:36:02 AM by Michelle Eagen This Governing Procedure was sent to the electronic notification list on 02/25/2009 11:36:08 AM by Michelle Eagen This Governing Procedure was 'Approved' on 06/29/2009 05:15:24 PM by Michelle Eagen This Governing Procedure was 'Proposed For Approval' on 07/01/2009 01:25:59 PM by Michelle Eagen This Governing Procedure was 'Approved' on 07/01/2009 01:27:04 PM by Michelle Eagen This Governing Procedure was sent to the electronic notification list on 07/01/2009 01:27:10 PM by Michelle Eagen This Governing Procedure was 'Proposed For Approval' on 08/10/2009 12:15:25 PM by Michelle Eagen This Governing Procedure was 'Approved' on 08/10/2009 12:15:36 PM by Michelle Eagen This Governing Procedure was sent to the electronic notification list on 08/10/2009 12:15:41 PM by Michelle Eagen This Governing Procedure was 'Under Review for Pending Changes' on 02/01/2011 07:33:43 AM by Shelly Eagen This Governing Procedure was 'Proposed For Approval' on 02/01/2011 09:06:48 AM by Shelly Eagen This Governing Procedure was 'Approved' on 02/01/2011 09:07:02 AM by Shelly Eagen Chysler Group LLC PCO How-To Guide - GP051 - 05 9 If printed, this is an uncontrolled document. Reference most current version on-line. This Governing Procedure was sent to the electronic notification list on 02/01/2011 09:07:07 AM by Shelly Eagen Old Revision History Rejection Notes Chysler Group LLC PCO How-To Guide - GP051 - 05 10
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