Global supply chain quality improvements with certification and what can be done beyond

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1 Global supply chain quality improvements with certification and what can be done beyond - TÜV Rheinland Industrie Service GmbH

2 TÜV Rheinland: 140 years of tradition and innovation Your advantage: our experience Entrepreneurs take the initiative and set up the DÜV to ensure the safety of their manufacturing plants 1918 Activities in the energy and mining sectors 1957 Commitment to environmental protection: dust register in Cologne 2006 Joined the UN Global Compact 2009 World s largest photovoltaic lab 2011 Establishment of wind department 1926 First material analysis laboratory 1900 Vehicle inspection and driving license tests 1975 Medical work 1969 International product tests and certifications 2007 Represented on all continents

3 TÜV Rheinland is at home on all continents. 500 locations in 61 countries around the world. TÜV Rheinland Industrie Service GmbH Am Grauen Stein Cologne Headquarter Head of certification body Head of QA/QC services & project managmt. Material testing (TR laboratories) Welding technology TÜV Rheinland Industrie Service GmbH Julius Vosseler Str Hamburg Component & project certification on- & offshore QA/QC services, manufacturing surveillance Recurrent test items onshore/ offshore Marine warranty survey TÜV International GmbH Shanghai China QA/ QC services (whole project life cycle) Third party inspections Material testing (TR laboratories) Welding technology & welding education TÜV International GmbH Bangalore India QA/ QC services (whole project life cycle) Third party inspections Material testing (TR laboratories) Welding technology & welding education

4 Wind energy services of TÜV Rheinland Services along the Wind turbines Life cycle Certification Supply chain services Wind farm services Certified as inspection body according to DIN EN ISO / IEC Accredited as certification body for wind energy turbines and components

5 Wind energy facts worldwide new installed capacity p.a. Worldwide [MW] Installations are growing on a high level Installations are performed worldwide Installed capacity cumulated MW Source: Bundesverband Windenergie e.v.

6 Implications of the global business Global installations Make or buy? Global or local supply? Boundary conditions for supply chain decisions - Market consolidation - Big cost pressure - Limit of investments vs. local content requirements - Big component big shipping cost vs. build up multiple factories - Second source policy

7 Wind in the TCQ triangle x time Situation of wind energy supply chain - New and unqualified sub-suppliers in local market - Minimum quality staff at suppliers - Systematic quality approach not yet everywhere implemented in supply chain - Repair and rework on daily basis due to non stable processes - End user require integrated quality approach in their projects cost quality

8 Systematic quality approach What do YOU think is quality? Quality is safe operation Quality is durability Quality is environmental friendliness Quality is high performance Quality is a nice look

9 Systematic quality approach Quality is fulfillment of all defined requirements Quality is safe operation Quality is durability Quality is environmental friendliness Quality is high performance Quality is a nice look

10 An ISO 9001 quality approach is a minimum requirement. Formal requirements to component manufacturers and sub-suppliers - ISO9001 quality certified - Certified welding workshop - GL composite workshop approval - Qualified bonding workshop Quality system evaluation i.e. procedures, test plan Workshop evaluation i.e. equipment Staff evaluation i.e. qualification, numbers Principles of ISO 9001 quality management system 1. Customer focus 2. Leadership 3. Involvement of people 4. Process approach 5. System approach to management 6. Continual improvement 7. Factual approach to decision making 8. Mutually beneficial supplier relationships

11 Certification over quality? ISO 9001 certification just for the certificate And still it happens. ISO9001 certification needs a solid foundation of people, equipment and know how

12 Certification and what can be done beyond. workshop approval ISO9001 certification Composite workshop certification Welding workshop certification Quality methods Lean manufacturing Project quality support APQP Gap analysis for workshop approval Risk assessment HSE Risk assessment tools & equipment Design assessment product and production process Quality system setup Test & inspection In process inspection Non destructive testing Finished goods approval Expediting

13 Before certification: typical supplier qualification Supplier preassessment Technical Quality system Financial Technical review Fit for purpose Quality audit VDA 6.3 Manufacturing inspection Detail risk assessment Manufacturing processes Quality control Health, safety and environment Risk mitigation Enabling quality control Enabling healthy operations Supplier post audit Measure control Qualified supplier Sustainable quality Security of supply

14 Beyond certification: Project quality approach with APQP Product design phase Product implementation phase Product serial production Identification of Customers requirements Critical to quality items Test and inspection plan Advanced Product Quality Planning aims for transparency and continuous monitoring of critical product items

15 Summary: wind energy global supply chain. Certification and what can be done beyond Wind energy s supply chain is fast growing and global Cost and time pressure often compromise quality Diligent supplier qualification is first step ISO 9001:2000 certification is minimum requirement To achieve sustainable quality, various accompanying methods shall be used

16 Thank You for Your Interest. TÜV Rheinland Industrie Service GmbH Wind energy Julius-Vossler-Straße Hamburg T: +49 (0) M: +49 (0)

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