Security Classification

ES4C9 Supply Chain Management~ Improving and Developing

Zoe Maxwell

Security Classification Date

Delphi

Mission statement

“To be the global leader in automotive systems and related product lines. We must work together with employees, suppliers and stakeholders to profitably provide high value solutions to our customers.”

Delphi Diesel Systems• Design & manufacture high performance fuel systems• Technical Centres• Manufacturing sites• Customer support centres

Stonehouse Manufacturing site• Heavy duty systems for commercial vehicles• Fuel Pumps• Injectors• Common Rail systems Image 1: Diesel Injector retrieved from

www.delphi.com

Security Classification Date

Use a Material Requirement Planning (MRP) system– Input of Customer requirements– Create internal production plan– Output Supplier orders

External Supply Chain Management

Delphi Stonehouse site

DelphiSudbury site

Other Suppliers

CustomersDelphi

Corporation

Delphi London Technical Centre

Other Stakeholders

ProductInformationKey:

Security Classification Date

Internal Supply Chain Management

Offices

Assembly & TestingStore

Component Manufacturing Lines

Ext

erna

l

• MRP system for production planning & stock control • Pull system • All product is moved by a Tugger via bus stops• Kanban triggers e.g. card/empty box

Image 2: Internal Tugger

ProductInformationKey:

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Improving Supply Chain Management

Global– Delphi as a whole pushing for continuous improvement– Further inter-site relationships and collaboration

Delphi Diesel Systems - Stonehouse

External– “Supplies” department improve supplier relationships– “Marketing” & “Supplies” improve customer relationships– Packaging improvement projects

Internal – Supply Chain Improvement Projects (SCIP) team– Focused projects on specific areas within the factory– Change agents & cross functional project teams– Quarterly stock check to review

Security Classification Date

Supply Chain Management Internal Projects

Assembly and Test Stock Accuracy Project• Improve Stock Accuracy on MRP system• Control flow of stock in the area• Improve capture of inventory information

Process• Improved personnel knowledge of stock control• Training & documentation• Removed an unnecessary MRP booking point• Segregated area for “out of process” parts for Engineering trials

Results

Measure Pre implementation Project Target Post implementation

Inventory Accuracy

+4%Between -0.5%

and +1%-0.1%

Non-Value added time

36.7 hours 50% reduction12.3 hours

(66% reduction)

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Image 3: Triple bottom line diagram retrieved from www.greengirlinc.com

Future Improvements

Sustainability & Triple bottom line theory

• Transport– Improve efficiency

» Fleet management » Reduce packaging size further» Use own highly efficient injectors!!

• Sourcing– Move to local suppliers

• Ethical trade– Fair trade suppliers

• Reverse Logistics– Minimal returns approx. 20 ppm

Security Classification Date 8

Any Questions?