4.2.2 Continuous Process and Cost Improvement

Purpose:

By effective continuous improvement the supplier shall

• Improve quality level
• Improve delivery reliability and
• Reduce the costs for supplier and Veoneer
• Ultimately reducing overall customer risks

Input from Veoneer:

• Supplier Rating /VS051.
• VSDP (Veoneer Supplier Development Programme) feedback and support.
• VE/VA-support. (VE/VA = Value Engineering/Value Analysis)
• Training on request (e.g. VSDP).
• Future business plans and road maps (incl. target costs, volumes etc.).

Requirements:

1. Continual improvement on product manufacturing process

Potential manufacturing process improvements shall be identified. Supplier is encouraged to use the  Veoneer Excellence System VES Assessment-template for that purpose. The supplier can also use the VES-booklet to implement internal workshops (including methods such as 5S audit, SMED, TPM, Just In Time).

Continual improvement workshops shall be under a programme of regular management review of status, priorities and resources.

The supplier shall actively be engaged and take the initiative in the Veoneer Supplier Development Programme (VSDP).

2. Continual improvements on product design and performance

The supplier has the expertise of its technology and is strongly invited to suggest design changes to improve the product cost, quality, process and performance. Any proposal must be submitted in writing in accordance with local requirements.

Process:

The supplier contacts Veoneer for a preliminary feasibility review. After that the supplier issues an engineering or process change proposal in writing through the SCR-template. After Veoneer approval, the process or engineering change can be initiated.

All changes require a review of applicable items from step 3.2.1  onwards "Control Level Definition Standard and Start of APQP-Process”.

Output from Supplier:

--> Process and Product Cost Reduction

--> Continual improvement on product manufacturing process:

• Potential improvement identification and associated action plans.
• Improvements on VS051 results and other process key indicators.

--> Continual improvements on product design and performance:

• Engineering change proposals (leading to cost and/or performance improvements).
• Information about technical innovations and trends.
• Change projects managed according to VSM-project phase definitions "Control Level Definition Standard and Start of APQP-Process" and follow the SCR-process.  All Process/Design changes at Veoneer’s suppliers or sub-suppliers require written notification to Veoneer of the change. VSM Change Points Description, defines changes requiring notification as well as those needing formal SCR submission to Veoneer. Also, reference the AIAG-Manual PPAP which notes that changes that require customer notification include:

  1. Use of other construction or material than was used in the previously approved part or product.

  2. Production from new or modified tools (except perishable tools), dies, molds, patterns, etc. including additional or replacement tooling.

  3. Production following upgrade or rearrangement of existing tooling or equipment.

  4. Production from tooling and equipment transferred to a different plant site or from an additional plant site.

  5. Change of supplier for parts, non-equivalent materials, or services (e.g. heat treating, plating, etc.)

  6. Product produced after the tooling has been inactive for volume production for twelve months or more.

  7. Product and process changes related to components of the production product manufactured internally or manufactured by suppliers.

  8. Change in test/inspection method – new technique (no effect on acceptance criteria).

  Additionally, for bulk materials:

  9. New source of raw material from new or existing supplier.

  10. Change in product appearance attributes.

Required Documents:

• Engineering Change Proposals "Supplier Change Request (SCR)"-template. 
• For engineering change processing: documents as required in VSM-project phase definitions. "Control Level Definition Standard and Start of APQP-Process"

Reference Documents:

• "VS007 Appendix J -Supplier Change Request management"
• "VSM-General Requirements/Specific Requirements/Manufacturing System“.
• Recommended reference document: VES-booklet