Ｓ upplier Ｑ uality Ｒ e-engineering Ａ ssessment Ｍ anaging team activity

1. 　Ｓupplier Ｑuality Ｒe-engineeringＡssessment Ｍanaging team activity ～　Improvement activities In component quality with supplier　～ September 9 ,2004 Photo by Defense Agency (H.P.)

2. 1. Background (Customer’s view) To reduce component discrepancies was a pressing need ＜before SQRAM activity＞ Project ADelivered Discrepancy trend Component discrepancies had not been decreasing 2000 2001 others Those discrepancies were preventing high aircraft working rate component

3. What should be carried out to the suppliers of such a situation? MHI went into a supplier and activated quality improvement activities 2. Background (Supplier’s view) ＜The in-house sales ratio of an aerospace section at suppliers＞ A sales ratio is very small ・Top managements did not feel big interest ・Suppliers could not make improvement activities, even if they wanted to do because of an insufficient resources ・Motivation had not been growing up

4. 3. Organization Team establishment (2004 FY～) The deputy GM, manufacturing Supplier quality control team SQRAM Supplier Quality Re-engineering Assessment Managing team MHI and each supplier promote this activity by forming a scrum Sub-Leader Ｄｉｒｅｃｔｏｒ, Quality Ｌｅａｄｅｒ Ｄｉｒｅｃｔｏｒ, Procurement SQRAM team Secretariat QAManager QAAssistant Manager Quality Assurance Department Ｍａｔｅｒｉａl Department Production Department Engineering research Department Engineering Department Service Department Supplier １３ companies （2002FY）

5. ACTIVITY Knowledge Share activities Periodical general meeting to invite all suppliers The improvement activities (each company) Individual meeting with each company 　・Activity at MHI 　・Activity at supplier Enlighten educational activities MHI provides opportunities of education which targeted from the mechanics to managers of a supplier 4. Aim of SQRAM activity As an leading company in aerospace industry ① Raising component quality of all involved suppliers ② Develop spirit of working together formerly ＳＱＲＡＭ Position passive voluntary Knowledge source Experience of only in each company Each company shares its knowledge Instruction by MHI External Go into a manufacturing process / organization Communication Between only focal points Broad communication supplier MHI supplier MHI Improvement in consciousness (from mechanics to managers) Consciousness Low motivation (less understanding for the usage and importance of components)

6. 5. Schedule Supplier 65 MHI 170 Supplier 97 MHI 83 Supplier 274 MHI 168 ( ) shows attending supplier number

7. 6. Activities 6-1 share of supplier’s action (1/2) Step Plan by each company General Mtg (Plan presentation) Implementing each company’s plan Individual Mtg General Mtg (Interim report) Implementing each company’s plan <Scene of the General Meeting> Individual Mtg General Mtg (Final report)

8. 6-1 share of supplier’s action (2/2) Result (1) showed MHI’s initiatives for the suppliers (2) let the suppliers have the consciousness of the importance of quality (3) boosted the concern of each company’s top management (4) provided suppliers with trigger of self PDCA management (5) shared each company’s good points and failure experience (6) stimulated each other

9. 6-2. Improving of each company (1/2) Professionals from both parties [tasks of MHI side] Engineer：coordinating engineering requirement Research：advising element techniques Manufacturing：Requesting from next process position Service：transmitting voices of final customers Procurement： coordinating contract matter Quality：advising quality improving Step Confirm purpose and member Confirm each company’s detailed plan and status Check “3-Gen” together(onsite, products, actualities) Discussed topics Corrective actions, Preventive actions Improvement of work instructions FAI, Change management Competence management and training Visual management Discuss quality improvement Listen desires

10. 6-2. Improving of each company (2/2) Result (1) Improved by reviewing source working 　　　・checked “3-Gen” by MHI each section’s professionals (recurrence prevention, similar discrepancy prevention) 　　　・required reinforcing organization, if necessary 　　　・advised project management, schedule management, risk management etc (2) Activated quality improving activities as unity 　　　・manufacturing process review and investigating improving plan by both professionals 　　　・developed sense of unity by broad communication 　　　・act for actual (true) voice 　　　・learned mutually from other companies’ presentation

11. solved problem by discussing in detail stiffer relationship Example 1 frequent discrepancies for flight control computer could not find actual cause due to no reappearance at supplier(less information for reappearance) With MHI engineers Picked up necessary information for reappearance (Flight situation, test situation) Non reappearance items Collect MHI internal data and request customer to collect data Could reappear at supplier and then finally solved the problem

12. Traced back together to original manufacturer Ensured quality production Example 2 Flight suspension due to control stick sensor discrepancy Checked engineering requirement and production process in the individual meeting Found insufficient reflection of production know-how of an American license manufacturer Onsite investigation with supplier member and MHI member (engineer, quality) Reestablish improved production process without nonconforming potential

13. Frontloading by sharing failure experiences before production Nonconformance prevention Example 3 policy Nonconformance prevention for a coming project B(16 companies)　　・recurrence prevention for prototype nonconformance 　　・nonconformance prevention in a change portion from prototype model to production model 　　・deployed experienced nonconformance from project A action ・established nonconformance knowledge database ・share the data among all suppliers ・reflected nonconformance potential into design/production process in each company

14. 6-3 Enlightenment MHI onsite training Training by inviting supplier mechanics to MHI Technical training (engineering): aircraft system and component Plant observation :installation and usage of components Interchange session :discussed for a theme in a small group <Scene of the pilot lecture> Result(audiences’ impression) ・understood its functions and effeteness when failed of our component ・understood jobs in MHI for our component ・felt tension and severeness at final line and flight area ・developed sense of unity by broad communication between persons in charge Pilot lecture MHI test pilot lectured his flight experience （mechanics and managers) Attend lecture of an actual voice of pilot

15. Recognized how our component is used Developed sense of responsibility and pride Example :Pilot lecture at supplier factory <Message of Pilot> ・ “People” is mostly a main cause of nonconformance ・to make much of “feeling” ・Never fly until consent on the flight affecting matter <audiences’ impression> (74 attendees) ・understood our component truly constitutes the aircraft ・felt real tension ・recognized we handle the pilot’s life

16. Surplus flight times Component error Part error others Non reappearance 7. Result (1/3) quantitative result Related result (@ MHI) <Project A : component nonconformance> Work error <company flight test times> Design error ・decreased component error in flight test ・showing decreasing trend in flight test times ・dramatically decreased component nonconformance(especially, design error decreased) ・work error and part error should be targeted to decrease from now

17. 7. Result (2/3) (1) raised component quality in all suppliers 　　・started moving to put in good quality at source phase (2) Developed spirit of working together 　　・synergy for common goal (good quality in final product) 　　・each company’s independent participation (voluntary action, constructive idea) 　　・develop sense of unity by removing walls between companies and between sections improved final customer’s working rate by removing nonconformance potential and raising dependability Reliance from customers, then continuous contract

18. 7. Result (3/3) Voices of customers ・「Project A working rate has now been raising, we expect further effort for improvement to MHI」 ・「We expect MHI this kind of essential activity indeed. We want to fully support this activity.」 ・MHI was invited to make a presentation of this activity at a customer’s maintenance seminar. (111 organization participated)

19. 8. Continuous activity 2002 FY 2003 FY 2004 FY ～ CHECK ACT PLAN・DO Started SQRAM Frequent nonconformance supplier （13） Check Continue by improving ExpandedSQRAM + essential component（14） StartedSQRAM-Ⅱ Back-shops(detail, assy)（25） Check Continue by improving