New Components Introduction (NCI) and Suppliers Selection.

General Awareness Presentation

Valentina ShirinaGE TransportationJune 22, 2011Eskisehir

2GE Transportation/Dimitry Sevostyanov

April 19, 2023

WHAT is NCI process and WHY GE follows it? NCI (New Component Introduction) – is a GE process to establish and statistically prove conformity of a component to a certain set of requirements (typically: specification and drawing), in other words, process designed to approve component for use in manufacturing of GE products.

NCI Goals:– Components Quality …. Smooth operations– Cost out… avoidance of costs related to incoming inspection,

deliveries shortages due to defects, inventory optimization– Mitigation of product/brand reputation risks…supplier

accountability

3GE Transportation/Dimitry Sevostyanov

April 19, 2023

Phase 1: Working with Supplier (BEFORE SHIPMENT OF SAMPLES)GE:

Establishes correctness and completeness of drawings and specification (supplier working docs);

Conducts component risk assessment and prepares Validation Matrix;

Conducts chemical materials verification

CHECK DRAWINGS &SPECIFICAITIONS FORACCURACY & COMPLETENESSCOMPONENT RISK

ASSESSMENT & PREPARATION OF VALIDATION MATRIX

CONDUCT CHEMICAL MATERIALS VERIFICATION

Supplier: Prepares Process Flow Diagram (PFD),

analyses potential manufacturing process and component failures ( Process FMEA – Process Failure Mode & Effect Analysis), prepares Characteristics Control Plan for CTQs

Produces sample lot

GE: Validates measurement system and

performs 100% quality inspection of sample lot before its delivery to GE (First Article Inspection)

DEVELOP RFD. PFMEA & CCP

VALIDATE MEASUREMENT SYSTEM

OBTAIN CERTIFICATE OF CONFORMITY AND CONDUCT FIRST ARTICLE INSPECTION

4GE Transportation/Dimitry Sevostyanov

April 19, 2023

Phase 2: Manufacturing Process Validation(AFTER SHIPMENT OF SAMPLES LOT TO GE)

GE: Machinability Check (if applicable) Fit up Check (parts dimensional

compatibility) Functional Test (individual component) Sub-system Test System Test Environmental Test Reliability and Growth Tests (Field

Tests) Approval/Disapproval of NCI

MACHNIABILITY CHECK

FIT UP TEST

FUNCTIONAL TEST

SYSTEM AND SUBSYSTEM TESTS

ENVIRONMENTAL ANDRELAIBILITY TESTS

FINAL NCI APPROVAL

5GE Transportation/Dimitry Sevostyanov

April 19, 2023

Phase 3: Post-NCI Monitoring

Supplier: Upon approval for serial supply, continues to

submit data to GE Process Capability Database

for CTQ characteristics

GE: Assesses data provided by supplier on on-

going basis with goal to detect any process capability or process control deficiencies are established – this allows to defect issues on

early stages; Requests suppliers to implement corrective

actions in case process capabilities and/or process control deficiencies are identified

UPDATE PROCESS CAPABILITY DATABASE

VERIFY ACCEPTABILITY OF CAPABILITY AND PROCESS CONTROL

TAKE CORRECTIVE ACTIONS IS NECESSARY

UPON COMPLETION OF NCI NO CHANGES IN MATERIAL AND/OR PROCESS ARE ALLOWED. ANY PERMANENT CHANGE WOULD

REQUIRE A NEW NCI.

Supplier Selection

7GE Transportation/Dimitry Sevostyanov

April 19, 2023

WHAT is Supplier Selection & WHY GE Follows It? Supplier Selection – process designed to find and approve new suppliers for products and services.

Supplier Selection Benefits:– Minimization of risks of work with unreliable suppliers … quality,

surety or supply and commercial competitiveness directly impact sales

– Minimization of product reputation/brand risks … it takes years to create good reputation and just one minute to destroy it

– Minimization of financial risks ... financially unstable supplier may jeopardize customer’s orders execution

– Better understanding of suppliers commercial & capacity capabilities...

helping to reach “WIN-WIN” situation with supplier for long term

8GE Transportation/Dimitry Sevostyanov

April 19, 2023

Supplier Selection: Pre-screening(data provided by supplier)Financial Information:

– Financial Statements– Loss/Benefits Reports– Reference Information on Major Customers– Results of Independent Financial Audit

Commercial Information (examples):– Internet Access and Ability to Work on –line– Production /Process capabilities and certifications– Production Capacity (current and planned)– Logistics Capabilities (proximity to major

transportation routes & terminals, warehousing)- Packaging Capabilities etc.

9GE Transportation/Dimitry Sevostyanov

April 19, 2023

Supplier Selection: On-Site Audit Compliance (examples):

– EHS – IP protection– Compliance: to local & international law; readiness to

adhere to GE Supplier Commitment– Management Integrity etc.

General Assessment: - Operational Management - Quality Management System– Manufacturing and Engineering Technology, R&D

Capability– Special Processes

KNOW YOUR SUPPLIERS !

10GE Transportation/Dimitry Sevostyanov

April 19, 2023

Supplier Selection and NCI… One Process

11GE Transportation/Dimitry Sevostyanov

April 19, 2023

GE Transportation Global Sourcing• Matrix Organization: Commodities X Poles• >3,500 Global Suppliers• ~ $1.5B Spend Globally

Europe:• Over 110 Qualified Suppliers (85 Active)• 15 countries• Supplier of Critical Parts and Assemblies

to the business

12GE Transportation/Dimitry Sevostyanov

April 19, 2023

Europe: Key Commodities & SuppliersEstablished Supply:

Engineered Systems: pumps, brake systems, heat exchangers , valves, Vibration dampers

Bearings: ball & roller (in tamper) bearings

Castings: large & mid size (1,000-8,000mt) steel & ductile iron; Al castings

Forgings: large, mid, small size forgings (incl forged rings)

Machined Parts: rough and fully machined castings and forgings

New Opportunities: Fabrications, Electrical Parts, C-class (catalog parts)

Looking Forward to Find New Suppliers!

Questions?

14GE Transportation/Dimitry Sevostyanov

April 19, 2023

THANK YOU !