Quality. Doug Betts. November 4, 2009

Transcription

1 Doug Betts ChryslerGroup LLC Business Plan November 4, 2009

2 Original Situation 1. Overall quality Old Chrysler not organized structure & strategy to work effectively 2. for current production Rate of improvement not adequate 3. at new model New models launched with launch below average quality Chrysler Group LLC Business Plan November 4,

3 Original Situation 1. Overall quality Old Chrysler not organized structure & strategy to work effectively 2. for current production Rate of improvement not adequate 3. at new model New models launched with launch below average quality Chrysler Group LLC Business Plan November 4,

4 Awareness Shoppers Buy Loyalty Ownership 1. Original Situation ACTION RESULT WHEN Define quality standardize language of quality, metrics, targets, responsibility Provide clarity and begin process of engagement with whole company Started November 2007, substantially complete Chrysler Group LLC Business Plan November 4,

5 Definition of Competitive Design Perceived Shopping Experience Initial Awareness Shoppers Buy Ser rvice Experience Cost To Repair Reliability Durability Chrysler Group LLC Business Plan November 4,

6 Awareness Shoppers Buy Loyalty Ownership 1. Overall Structure & Strategy ACTION RESULT WHEN Define standardize language of quality, metrics, targets, responsibility Provide clarity and begin process of engagement with whole company Started Nov, 2007, now substantially complete Changed corporate quality monthly meetings from Board Room style to hands on, Go & See meetings Leadership team can Complete understand dsituation ti March, 2008 Chrysler Group LLC Business Plan November 4,

7 Awareness Shoppers Buy Loyalty Ownership 1. Overall Structure & Strategy ACTION RESULT WHEN Define standardize language of quality, metrics, targets, responsibility Provide clarity and begin process of engagement with whole company Started November, 2007 substantially complete Changed corporate quality monthly meetings from Board Room style to hands on, Go & See meetings Leadership team can understand dsituation ti Complete March, 2008 Merged all quality functions Effective coordination i of Complete into one organization Master Plan January, 2009 Chrysler Group LLC Business Plan November 4,

8 Overall Structure & Strategy Before : functions were split and difficult to work on ONE PLAN CORPORATE QUALITY ENGINEERING MANUFACTURING PURCHASING PARTS & SERVICE Current Design Engineering Plant Operations Component Purchasing Parts Supply Project Project Mgmt ion Engineering Project Mgmt Methods Strategy & Reliability Indirect & Mfg. Methods Engineering Purchasing Parts 200 people working on ONE PLAN Vehicle and System Testing Supplier Customer Care Chrysler Group LLC Business Plan November 4,

9 Overall Structure & Strategy After: Solid or dotted line reporting One quality organization ONE PLAN CORPORATE QUALITY ENGINEERING MANUFACTURING PURCHASING PARTS & SERVICE Current Design Component Plant Operations Engineering Purchasing Parts Supply ion Project Project Mgmt Project Mgmt Methods Engineering Strategy & Methods Reliability Engineering Mfg. Indirect & Purchasing Parts 1,500 people working on ONE PLAN Vehicle and System Testing Supplier Customer Care Chrysler Group LLC Business Plan November 4,

10 Original Situation 1. Overall quality Chrysler not organized to structure & strategy work effectively 2. for current production Rate of improvement not adequate 3. at new model New models launched with launch below average quality Chrysler Group LLC Business Plan November 4,

11 Awareness Shoppers Buy Loyalty Ownership 2. For Current ion ACTION RESULT WHEN Changed internal metrics and targets for reliability Implemented cross functional teams for warranty reduction Metrics that are accurate, benchmarked, and can show trend judged monthly 30% reduction in warranty claim rate during first 9 months after implementation Market downturn and financial difficulties prevented further gains Complete January, 2008 Complete January, 2008 Chrysler Group LLC Business Plan November 4,

12 Cross Functional Teams Current ion Reliability Situation in 2008 (typical vehicle shown) WARR RANTY REPAI IRS PER Year Window (for Consumer Reports Fall 2008 Report) Reliability deteriorated for the 2007 model dlyear Recovery has been made since that time Jan 06 Jan 07 Jan 08 Jan 09 Chrysler Group LLC Business Plan November 4,

13 Cross Functional Teams Current ion Reliability Situation in 2009 (typical vehicle shown) IRS PER 1000 Cross functional teams deployed 3 year window still contains past cars Progress for cars in production has been made using cross functional teams Teams were deployed in January 2008 WAR RRANTY REPA 3 Year Window (for Consumer Reports Fall 2009 Report) Jan 06 Jan 07 Jan 08 Jan 09 Chrysler Group LLC Business Plan November 4,

14 Awareness Shoppers Buy Loyalty Ownership 2. For Current ion ACTION PLANNED RESULT WHEN Changed internal metrics and targets for reliability Implemented cross functional teams for warranty reduction Metrics that are accurate, benchmarked, and can show trend judged monthly 30% reduction in warranty claim rate during first 9 months after implementation Market downturn and financial difficulties prevented further gains Complete January, 2008 Complete January, 2008 Implementing new audit Btt Better perceived quality Implement standards in manufacturing Oct Dec, 2009 Chrysler Group LLC Business Plan November 4,

15 New Audit Standards Current ion MANUFACTURING QUALITY EXECUTION Fiat Group audit standards similar to Chrysler audit, but tighter quality standards used for fit and finishi Changed Chrysler audit to match Fiat Group standards Chrysler Group LLC Business Plan November 4,

16 Awareness Shoppers Buy Loyalty Ownership 2. For Current ion ACTION PLANNED RESULT WHEN Changed internal metrics and Metrics that are accurate, Complete targets for reliability benchmarked, and can show January, 2008 trend judged monthly Implemented cross functional teams for warranty reduction 30% reduction in warranty claim li rate during first 9 Complete January, 2008 months after implementation Market downturn and financial difficulties prevented further gains Implementing new audit standards in manufacturing Increase headcount in manufacturing plants to support World Class Manufacturing (WCM) and dimensional control strategy (200+ engineers) Better perceived quality Reduce variation in plant quality (Chrysler & supplier manufacturing) Implement Oct Dec, 2009 Implement Nov Dec, 2009 Chrysler Group LLC Business Plan November 4,

17 Awareness Shoppers Buy Loyalty Ownership 2. For Current ion ACTION RESULT WHEN Changed internal metrics and Metrics that are accurate, Complete targets for reliability benchmarked, and can show January, 2008 trend judged monthly Implemented cross functional 30% reduction in warranty Complete teams for warranty reduction claim rate during first 9 January, 2008 months after implementation Implementing new audit standards d in manufacturing Better perceived quality Implement Ot Oct Dec, 2009 Increase headcount in manufacturing plants to support World Class Manufacturing (WCM) and dimensional control Replace J.D. Power SSI/CSI basedsurveywith survey Customer Promoter Survey (CPS) Reduced variation in plant quality (Chrysler & supplier manufacturing) Understand customer opinion clearly Quick resolution Implement Nov Dec, 2009 Complete January, 2009 Chrysler Group LLC Business Plan November 4,

18 Increase # of Chrysler Promoters (3 yrs+ Ownership) 3 Areas For Initiatives Goals: SERVICE PARTS TECHNICAL IMPROVEMENTS Improve quality of service parts Redesign service parts to fix original technical issues Metrics: Warranty rate for repeat repairs Operational Excellence Can repair every car, every time Parts available on the shelf Tools at the dealership Techniques for every problem Capable repair technicians Vehicles off road & backorders Effective repair rate Human Interaction Customer Promoter Score system to allow dealer feedback and self correction Customer Care standards Customer outreach programs to recover customer relationships retention Loyalty Follow up with customer problems Chrysler Group LLC Business Plan November 4,

19 Original Situation 1. Overall quality Chrysler not organized to structure & strategy work effectively 2. for current production Rate of improvement not adequate 3. at new model New models launched with launch below average quality Chrysler Group LLC Business Plan November 4,

20 Awareness Shoppers Buy Loyalty Ownership 3. At New Model Launch ACTION PLANNED RESULT WHEN Changed reliability and durability test standards More rigorous testing leading to more reliable/durable vehicles Complete (effective 2009 Dodge Ram) Chrysler Group LLC Business Plan November 4,

21 Improve Vehicle Reliability New Models Rigorous digital and physical testing applied to new vehicle projects Increase usage of virtual testing New Testing techniques to prove a from Jeep Fiat Group combined with vehicle can be a Jeep vehicle Physical testing New Protocol applied to 2009 Dodge Ram and after Rigorous testing to prove capability for the most severe user Chrysler Group LLC Business Plan November 4,

22 Awareness Shoppers Buy 3. At New Model Launch pp y Prod roduct Loyalty Ownership ACTION PLANNED RESULT WHEN Changed reliability and durability test standards More rigorous testing leading to more reliable/durable vehicles Complete (effective 2009 Dodge Ram) Created standard process to benchmark and set targets for competitive design quality Competitive objectives leading to competitive vehicles Started with 2009 Dodge Ram Project Create internal 3 rd Party to judge project quality status Eliminate self assessment of work by functions November, 2009 Chrysler Group LLC Business Plan November 4,

23 Improve Competitive Performance In 3rd Party Reviews New Process: Established 320 functional measurements, Benchmark kb best competition Set targets Confirm physical achievement as project progresses Impartial Judgement: Result confirmed by new quality function representing the customer Chrysler Group LLC Business Plan November 4,

24 Awareness Shoppers Buy 3. At New Model Launch Produc uct Loyalty Ownership ACTION RESULT WHEN Changed reliability and durability test standards Created standard process to benchmark and set targets for competitive design quality Created internal 3 rd party to judge project quality status More rigorous testing leading to more reliable/durable vehicles Competitive objectives leading to competitive vehicles Eliminate self assessment of work by functions Complete July, 2007 (effective 2009 Dodge Ram) Started with 2009 Dodge Ram Project November, 2009 Created physical and digital perceived quality evaluation process Design cars with better perceived quality Avoid cost of tooling mistakes Complete October, 2008 Chrysler Group LLC Business Plan November 4,

25 Improve Perceived Future Vehicles Created development evaluation for perceived quality, benchmark best competitors and set targets for each new vehicle project ved ore is better Perceiv Higher sco New vehicle target Competitor A Competitor B Competitor C Competitor D Competitor E Competitor F Past Vehicle Execution issues Design issues Chrysler Group LLC Business Plan November 4,

26 Improve Perceived Future Vehicles Use Digital Simulation to Design in PQ, ahead of physical models Exposed Hardware Exposed Hardware Ability to simulate real vehicle and lighting Identify problems without building a car Body colored sheet metal visible? Sheet metal looks unfinished, multiple holes. Exposed brake hardware Chrysler Group LLC Business Plan November 4,

27 Definition of OPINION LEADING TO CONQUEST Competitive Design Perceived Shopping Experience Initial Awareness Shoppers Buy Improve opinion of Chrysler Ser rvice Experience Cost To Repair Matching the best mass market competitors by end of 2012! Durability Reliability Chrysler Group LLC Business Plan November 4,