Management of a quality crisis and recall
The Goal
SNECI needed to bring essential support to one of its clients with a quality problem during the start-up phase of a project. SNECI's mission was to resolve the crisis, identify the source of the problem and propose a corrective solution to get the situation back to normal.
Unfinished parts made in Korea were delivered to PSA for machining. When the project started, the customer struggled with the machining. "The analysis showed that the heat treatment was different from that expected by the customer," says Serge Tallon, SNECI's Account Manager. Two things needed to happen simultaneously: modification of the production in Korea and analysis of the condition of the parts already in the supply line.
SNECI was involved to oversee the logistics of the long trip the parts made between Korea and France: one month in a ship, a safety stock warehoused at Le Havre and just-in-time delivery to PSA from there.
SNECI’s Role
SNECI came onto the playing field to manage all practical and logistical aspects of this crisis. “We put into place a practical and efficient system,” recalls SNECI Project Manager Simone Ballais. The system involved taking charge of the components when they arrived in France at a warehouse that SNECI managed. The parts arriving all had the same defect, but after analysis, it became apparent that the parts could be reworked to conform to requirements. SNECI found a subcontractor able to make the changes and managed the logistical flow of delivery to the subcontractor and their onward shipment to the customer. The system put into place treated about 1,000 parts a week during start-up. In addition to responsibility for the physical flow, SNECI also managed the financial transactions associated with the operation and the VAT issues related.
SNECI developed both technical and logistical solutions so that uninterrupted delivered could continue and the customer could be reassured of everybody's capacity to resolve the crisis. "Without a strong local entity like us, PSA would have been tempted to change suppliers," says Tallon. Today this supplier deliver 2.5 million to three million parts a year to PSA.
Simultaneously, the Asian supplier corrected its problem so good parts were soon arriving in France by plane, as the planning was very tight. SNECI managed three aspects of the project and their flux: new production, parts that were modified in Asia and parts that were modified in France.
SNECI’s Added Value
SNECI's actions demonstrated their reactivity to the client. SNECI also showed the client that the distance was not a major drawback as long as communication and action plans were done efficiently and in full transparency in order to create confidence among the players. SNECI was in charge of all operations from detection of the problem until the pace returned to normal about four months later. Thanks to SNECI, there was never a shortage of parts for the automaker and production was not perturbed.
Detecting the problem at the earliest possible stage and implementing a plan of action quickly and effectively were crucial.
To solve this problem, we had a multidisciplinary and multicultural team: one Business Development Manager to manage the relationship with the Head of Purchasing, one industrialization Project Manager, the contact person of the French factory and supplier, the Manager of the Korean office, the "Customer Referent" within SNECI teams who is the expert in the customer's culture and one Supply Chain Manager. Thus, more than six people motivated to bring a radical solution. To this day, the supplier still deliver 100% of the production of the this part.
Moreover, SNECI maintains a neutral position between supplier and customer, which gives the automaker confidence.
Quality Resident Engineer in plant
The Goal
The carmaker had nominated a Brazilian supplier to deliver for the first time to its industrial plant in France. To satisfy its demand, SNECI intervened as a Resident Engineer in plant.
SNECI's Role
A Quality Resident Engineer, knowing the client's methodologies, was named to intervene on the site. He followed all the logistical flux, controlled the parts at their arrival in the warehouse and participated in weekly quality meetings on site. He was in charge to fill out all of the documentary files on the client's portal. He was also in charge of starting sorting operations if necessary. He proposed action plans and was in charge to solve problems in coherence with the producing plant in Brazil.
SNECI's Added Value
SNECI, through its proximity to the client and its understanding of the clients' and products' expectations, was able to propose action plans. The quality level increased. The supplier understood better the client's expectations that he used to improve its quality system.
