
SUBCONTRACTING SCHEME

Milestones
Start of project, Nomination, Approval to build prototypes, Approval to build off-tool, Approval to build Pre Try Out, Start of production, Customer tracking report and kaizen plan performed status
Key points to validate at each milestone
Budget
Planning
Process
Outsourcing
Product (Design & test):
Measure
Analyse
Design
Optimize
Verify
Quality milestone
| Steps of development of a new product |
Measure | Identify the measurable criteria of the specification |
Analyse | Analyse the link between input data and output data. Choose statistic and graphic tools to veierw the analysis |
Design | Design and test according to an increasing product-process representativeness |
Optimise | Perform solution to optimize the cost, the quality and the leadtime |
Verify | Standardize, train, monitor, provide feedback |
DETAILS OF SUPPLIER NOMINATION STEPS MILESTONE
| Steps to select suppliers |
Build | Build a list up to 10 suppliers according the required parts |
Preselect | Preselect up to 5 suppliers to request for quotation according best result of audit of the suppliers list |
Key points:
Build a panel (list) up to 10 suppliers according to the required craftsmanship
Recognized expertise
Sales and product highlights
Revenues
Clients
Select up to 5 suppliers to request for quotation in the supplier panel
Process proficiency (industrial means, outsourcing, seniority of the company)
Business strategy (geographical diversification, outsourcing)
Corporate governance (growth, profitability, …)
Ethics environmental, social and Governance
Certificate and standards (ISO, EN, NF)
financial analysis
EBITDA Earnings Before Interest Tax Depreciation & Amortization
Operating margin
Free cash flow
EBIT Earnings Before Interest Tax (US GAAP)
Working capital
Weighted Average Cost of Capital
Cash flow from operating activity
| Steps to nominate a supplier |
Define | Draw up a specification of subcontracted part or service |
| Identify the criteria of the request of quotation |
| Compare the offer up to 3 suppliers: do a quality, cost, planning, capacity analysis of the selected suppliers according their quotation |
| Nominate the suppliers (1 or more according to the strategy plan): select up to 3 suppliers according the best assessment of performance (at least 2 to have back-up solution) |
Key points:
Define: Draw up a specification of subcontracted part or service
Design or sketch (according supplier expertise),product assumption,functional performance , dimensional envelope, weight target, craftsmanship
Affordable cost target
Reliability and quality goals
Project schedule
Production plan, capacity, peak volume
Logistic constraints, International Commercial Terms
Define: Identify the measurable criteria of the request of quotation
Cost of prototypes (studies-prototype investment-prototype parts or services)
Cost of mass-production parts (studies-prototype investment-prototype parts or services)
Quality commitment
Capacity commitment, peak volume commitment
Project milestone commitment
Define: Compare the offers of suppliers and nominate supplier(s)
Cost for the prime years and cost for the lifetime of parts or services
Cost model
Quality commitment for the prime years
Capacity and peak volume according production plan
Project milestone according project needs
Define: Nominate the suppliers: 1 or more
•Considering and Management of the Limit of capacity
•Considering and Management of critical process key points
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