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NCR Supplier Quality Webcast

NCR Supplier Quality Webcast. June 8 2011. Bob Ciminera - Vice President Strategic Sourcing Robert Mele - Vice President, Quality and Continuous Improvement. Agenda – Supplier Quality Webcast. Introduction. Bob Ciminera / Robert Mele. Supplier PPM, Trend Requirements/ Timeline.

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NCR Supplier Quality Webcast

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  1. NCR Supplier Quality Webcast June 8 2011 Bob Ciminera - Vice President Strategic Sourcing Robert Mele - Vice President, Quality and Continuous Improvement

  2. Agenda – Supplier Quality Webcast Introduction Bob Ciminera / Robert Mele Supplier PPM, Trend Requirements/ Timeline Robert Mele 350 PPM Action Plans Supplier Quality Training Michael Crutch SQDD Update/PPAP/FAI Wagih Wazni NCR Actions for Success Robert Mele Q&A All

  3. What Is PPM? Parts Rejected Per Million Parts Received: • PPM = Rejects / Receipts * 1,000,000 • Rolling 3 Month Average minimizes noise • Focus on high rejects ANDhigh PPM Actual data from 1 March – 31 May 2011 High rejects impact NCR overall PPM more than individual supplier PPM

  4. Supplier Quality PPM – Global View • 350 PPM Actions • Use of MSA to validate and calibrate rejections between supplier and NCR Sites • Weekly focused actions on failure modes impacting overall PPM target • Analysis of SCAR failure mode data to drive DMAIC projects • Individual Top Offender Supplier action plans to achieve 350ppm • Supplier Webcast every two months – Next 8/10/11 • PPAP requirement for all New Parts/Suppliers

  5. PPM Requirements – What you need to do March - May 3-Month rolling average: 657 PPM PPM Requirements July 2011: 500 PPM October 2011: 350 PPM March 2012: 300 PPM October 2012: 200 PPM What actions must you take to achieve 350 PPM?

  6. Short Term Actions For suppliers > 350 PPM: • 108 letters sent requesting Action Plan • Received majority – communicating with suppliers who haven’t provided plan • Immediately - • Confirm updated Supplier Inspection program • Return 350 PPM Action Plan to NCR • Monthly review with your SQE to begin • Immediate increase in inspection Execute Action Plan to achieve 350 PPM by October but begin inspection NOW to reduce rejects at NCR

  7. Supplier Quality Training • Quality Tools • Statistical Process Control • Control Charts • PPAP Training SPC and Control Charts will enable early warning and prevent defective parts from being shipped to NCR.

  8. Supplier Quality Design & Development (SQDD) Purpose • Assure smooth part & module introduction to NCR – PPAP & Design Review • Selection of quality suppliers for NPI Current Status • Design review started on key programs (S1, S2 & SDM) • PPAP qualification = Started with 30% rejection rate • Reviewing suppliers capability and alignment with NCR quality goals. • 500 PPM by July 1 and 350 PPM by Oct 1, 2011 Future Activities • ID suppliers with score of 2 or 1 on score card for quality to prevent upfront involvements with new programs or winning new business • Award suppliers new business with score 4 & 5 across the score card with cost advantage

  9. Supplier Quality Expectations • Inspection and 350 PPM plan due – Review with SQE • Clear understanding of PPAP and SPC PPM Requirement • July 2011: 500 PPM • October 2011: 350 PPM • October 2012: 200 PPM Webcast Schedule • August 10 Results of July goals and actions to • ensure October 350 PPM • October 5 2011 YTD summary, final 2011 • actions required • December 7 2012-2013 supplier requirements October 1, 2011: 350 PPM

  10. Actions for Success • Short Term – 3Q2011 • Finalize Qualification Process within NCR • India Supplier & Critical 40 supplier action plans – next steps • Finish SPC/PPAP training for top suppliers • Report card on 350 project plan • Supplier metrology requirements established and communicated • Supplier inspection plan submissions – suppliers > 500 PPM • Mid Term – end 1Q2012 • Desourcing process • Drawing uniformity from NCR • Supplier Metrology requirements achieved • Sampling sustainment strategy • 300 PPM • Long Term – YE2012 • Supplier Quality web portal • Supplier Approval List updated • 200 PPM

  11. Resources and Contacts For Supplier Resources:http://www.ncr.com/about_ncr/partners/suppliers/ Assistance with NPI, PPAP, FAI: Wagih Wazni (Wagih.Wazni@NCR.com) Director, Global Supplier Quality Engineer Assistance with Production Parts, Incoming Inspection, SCARS, 350 PPM Plan: Michael Crutch (Michael.Crutch@NCR.com) Director, Supplier Quality Excellence Overall quality issues: Robert Mele (Robert.Mele@NCR.com) VP, Quality and Continuous Improvement

  12. Q&A Q & A

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