Jaguar Land Rover Supply Chain Operating Standards 2019 v3.pdf copy PDF

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JAGU AR L A ND ROVER CO NTACTS Richard Osborne

MP&L Supplier Development Senior Manager E-mail: [email protected]

Adrian Martin

MP&L Supplier Development Manager E-mail: [email protected]

Ana Fernandez

MP&L Supplier Development Manager E-mail: [email protected]

Anu Dhond

MP&L Supplier Development Manager Email: [email protected]

Jim Lindsay

MP&L Supplier Development Manager E-mail: [email protected]

Mark Marley

MP&L Global Supplier Assurance Manager E-mail: [email protected]

Philip Carroll

MP&L Global Supplier Assurance Manager E-mail: [email protected]

Dave Brown

STA Senior Manager Supplier Assurance E-mail: [email protected]

Chris Hayes

STA Manager Supply Chain Design E-mail: [email protected]

Richard Tranter

STA Senior Manager Supplier Chain Design E-mail: [email protected]

Nathan Earland

Global Senior Purchasing Manager E-mail: [email protected]

For all generic Supplier Development queries/questions please email suppd ev@ j ag uar land r over.com COUN TRY

United Kingdom

Slovakia

PLA N T

A DDRESS

JLR Solihull

Lode Lane, Solihull, B92 8NW

JLR Halewood

Speke Blvd, Liverpool, Merseyside, L24 9BJ

JLR Castle Bromwich

Chester Rd, Birmingham, B35 7RA

JLR Engine Manufacturing Centre (EMC)

Engine Manufacturing Centre, Innovation Dr, Wolverhampton, WV9 5GB

JLR Halewood – KD (L551 /L550)

LCB 2, JLR Halewood, Merseyside, L24 9BJ

Syncreon –KD (X260 / X760 / X351 / L560 / X761)

Syncreon Automotive, DC1, Minworth, Sutton Coldfield B76 9BJ

JLR Nitra

JLR Nitra, Dolne Hony, 94901, Nitra

2

CO NT ENT S 1.

S UP PL IE R S TAN D AR D S IN T R OD UCT ION & S COPE

5

2.

D E F IN IT ION OF S E QUE N CIN G

7

3.

D ATA 3.1 3.2 3.3 3.4

COMMUN ICAT ION S Electronic Data Interchange ( ) Target Launch Sequence Messages Long Distance Sequence Messages Visible Supply Chains

9 10 11 12 13

4.

D R AW IN G ST UD Y/CON CE PT F E AS IB IL IT Y 4.1 Plan For Every Part (PfEP)

14 16

5.

SYSTE MS 5.1 Manufacturing Information Systems Design 5.2 Logistics Information Systems Design 5.3 Quality Systems Design 5.4 New Parts Introduction/Change Management

17 18 18 19 19

6. 6.1 6.2 6.3 6.4

ST R E AM S Logistics Map Value Stream Map Lead Time Analysis Value Stream Governance

20 21 21 22 23

7.

MAN UFACT UR IN G AN D LOGIS T ICS D E S IGN AN D L AYOUT 7.1 Manufacturing and Logistics Design Principles 7.2 Facility Layout 7.3 Manufacturing Layout 7.4 Manufacturing Process 7.5 Equipment and Tooling 7.6 Logistics Layout 7.7 Material Flow/Stock Management 7.8 Material Handling Equipment (MHE)

24 25 25 25 25 26 26 27 27

8.

PE R FOR MANCE M ANAGE ME N T 8.1 Key Performance Indicators (KPI’s) 8.2 KPI Use Review and Analysis 8.3 Continuous Improvement

28 28 28 30

9.

COMP L E X IT Y MANAGE ME N T AND L INE B ALAN CING 9.1 Common Commodities Supplied to Multiple JLR Production Lines 9.2 Mix Management & Line Balancing 9.3 Pre-Production Build Phases 9.4 Capacity 9.5 Shift Patterns and Jobs Per Hour (JPH)

32 32 32 32 33 34

10.

PACK AGIN G R EQUIR E M E N T S 10.1 Packaging Design, Procurement and Ownership 10.2 Packaging Cleaning 10.3 Packaging Maintenance and Repair 10.4 Packaging Volumes 10.5 Packaging Returns

35 36 37 37 38 38

11.

L A B EL L I NG 11.1 Sequenced Component Label 11.2 Sequenced Range Pallet Label

39 40 40

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12.

D E L IVE RY 12.1 Delivery Requirements 12.2 Route Management 12.3 Delivery Disruption and Emergency Parts 12.4 Buffer Management

42 43 44 44 44

13.

AUTOMAT E D D E L IVE RY TO L IN E 13.1 Automated Delivery Definition 13.2 Roles & Responsibilities

46 47 48

14.

S E QUE N CE PAY ME N T T E R MS

49

15.

S UP PL IE R S 15.1 Tier 2 Supplier Management 15.2 Direct Sourced Suppliers (DSS) 15.3 3PL Providers

52 53 53 54

16. 16.1 16.2

CON T R OL /R E P L ACE ME N T S S UP P ORT Supplier Quality Issues JLR Quality issues

55 56 58

17.

OP E R AT ION AL R E L IAB IL IT Y AN D R E S IL IE N CE 17.1 Critical Asset/Operational Failure 17.2 Facilities Management 17.3 Workforce 17.4 TLS Visibility 17.5 Crisis Recovery / Business Continuity

59 60 60 60 61 61

18.

PE OPLE AN D O RGAN ISATI ON 18.1 Health and Safety 18.2 Organisation

62 63 63

19.

S E QUE N CE S UPP L IE R AS S E S S ME N TS

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20.

S UP PL IE R E ME R GE N CY CON TACT IN F OR MAT ION

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21.

ACRONY M GLOS SA RY OF TE R M S

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22.

IN D E X

71

23.

AP PE N D ICE S 23.1 Appendix 23.2 Appendix 23.3 Appendix 23.4 Appendix 23.5 Appendix 23.6 Appendix 23.7 Appendix 23.8 Appendix

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73 A – Material Planning & Logistics Supplier O perating Standards Web Guide B – Sequence Supplier Systems Brochure C – Ja guar Land Rover Pa ckaging Guidelines D – MP&L Checklist E – JLR Automated Delivery RASI Matrix F – Supplier Broadcast API Guide G – Specia l Pallet Cleaning & Maintena nce Guidelines H – Jag uar Land Rover Barcoding Standards

VE R S ION CON T ROL

82

4

1.

SUP PL I ER STA N DA R D S I N TR OD UC TI ON & SCOP E

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1.0

S UP PL IE R S TAN D AR D S IN T R OD UCT ION & S COPE

The objective of this document is to define and standardise the approach and expectation for all Jaguar Land Rover sequence suppliers across all aspects of Logistics and Supply Chain Management. It is designed to provide a “one stop” source of information consistent with JLR Global Terms & Conditions, for both new and current suppliers, in their understanding and responsibilities relating to sequence supply chain design and operating principles. Please note, these standards do not affect any obligations under the Global Terms & Conditions. The key objectives for the Supplier Operating Standards are to: -

Drive and design robust supply chains in order to achieve zero line stops, misfits and vehicles on hold Provide clarity when understanding the Logistics and Supply Chain Standards for JLR Act as a reference tool for new and current Suppliers to Jaguar Land Rover Act as a reference / training aid to both JLR and Supplier personnel from other departments Form an integral part of a comprehensive Quality Operating System for Global MP&L Gain alignment with and to supplement the RFQ (Request For Quotation) pack for suppliers

These Standards are for all JLR Sequence Suppliers and should be read in conjunction with the Material Planning Logistics Supplier Operating Standards web guide in Appendix A. The scope of this brochure covers all suppliers who deliver sequenced commodities to JLR manufacturing plants, including deliveries into our Engine Manufacturing Centre (EMC) and pack shops for KD (Knock – Down) operations. It also covers those suppliers who deliver sequenced commodities via a 3rd Party Sequencing Provider. It does not apply to the following international plants: the Chery Jaguar Land Rover Ltd (CJLR) joint venture, our contract manufacturing partner Magna Steyr (X540 & X590) and Jaguar Land Rover Brazil Plant. KSK (Kunden Spezifischer Kabelbaum) operations are also not included within the scope of this document.

6

2.

D EF I N I TI ON OF SEQUEN C I N G

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2.0

D E F IN IT ION OF S E QUE N CIN G

What is sequencing and why do we do it? One example of sequencing in operation :

Just In Sequence (JIS) is an approach to manufacturing where components arrive at an assembly line in a specific order at the time they are needed. JIS is a specialised strategy to achieve Just in Time (JIT) manufacturing. JLR sequence supplier activity is based on three main types: -

Build To Sequence (BTS) - Build to sequence is when the supplier manufactures or assembles the product in line with JLR’s Target Launch Sequence (TLS).

-

Pick To Sequence (PTS) - Pick to sequence is when the supplier picks finished goods from storage in line with JLR’s Target Launch Sequence (TLS).

-

Long Distance Just In Sequence (LDJIS) is when the supplier uses the EDM or other pre-TLS sequence broadcast messages to build and ship parts. Due to minor schedule adjustments in the final TLS sequence broadcast, some of these may end up being in the wrong sequence. Either the supplier or JLR (as agreed) will need to late configure the sequence prior to delivery to JLR PoF.

8

3.

DATA C OM M UN I CAT ION S 3.1 3.2 3.3 3.4

Electronic Data Interchange (EDI) Target Launch Sequence Messages Long Distance Sequence Messages Visible Supply Chains

10 11 12 13

9

3.0

D ATA COMMUN ICAT ION S

3.1 All suppliers must adopt an Electronic Data Interchange (EDI) solution; this is a mandatory requirement of operating with JLR. The EDI solution needs to allow the import of data into supplier applications e.g. ERP/MRP systems.

Further detailed information can be found in the MP&L Supplier Operating Standards (Appendix A)

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JLR issues data to suppliers in the following form

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WSA - Supplier Name, Contact Details, Plant, Track, Model, issue experienced

3.2 Each vehicle is assigned a Target Launch Sequence (TLS) number which represents the sequential order the vehicle will be launched onto T&F production line. TLS is therefore the sequence This sequence is fixed for the duration of the vehicle in the manufacturing process. From this point, the vehicle cannot be stopped without senior escalation and agreement. The supplier must Suppliers must TLS. Suppliers must

The TLS broadcast visibility is defined as the time between the TLS message broadcast and the first fit station on the production line. Additional visibility is available from the first fit station to the commodity’s point of fit, however the amount of additional visibility will vary by fit point, and therefore by supplier. For sequenced suppliers, TLS messages are sent in real time as the vehicles are assigned a fixed sequence. Each JLR production line will operate to its own TLS broadcast horizon. This may vary between plants, dependent upon painted body storage capacity and production line rates. As mentioned, other parameters can also affect TLS visibility e.g. point of fit. JLR will aim to maintain the maximum TLS visibility on all vehicle lines but cannot guarantee any specific visibility parameters.

Example of ordering timeline for suppliers who build to TLS: SuppliersreceiveTLS Broadcastmessagesat TLSPoint

Orders

OrderssubmittedweeklyfromSalesand Marketing

MOB ManufacturingOrderBank OffTrack DCI

CommittedOrders BTS/BOD

612h

612h 1224h

2

3

4

5

UncommittedOrders

(DailyCallIn)

6

7

8

9

10

11

12

13

14

15

OrderSeg s

BuildtoSequence/BuildonDay

Track

OpStratrulesapplied ExitBIW

EDM (EightDayMessage)

TLS

SEQrulesapplied OpStrat

(TargetLaunchSequence)

Hejunka MaterialConstraints

Ordercommitteddailyas consumed

Ordercommitmentvariesandis dependantontheplant.Forfuture projects,thiswillprovideapredicted buildsequenceforlongdistanceJIS (LDJIS)

*For Illustrative purpose only

Suppliers must (based on the Lead Time Analysis tool (LTA) / historical data). In the event that the TLS broadcast visibility falls below the minimum agreed, This must detail communication requirements and a

Suppliers must ensure

11

Any existing suppliers that currently use a Kilo Stream Link / ISDN line must work with the JLR IT team on a migration plan to WSA. The introduction of systems for new sequence suppliers is co-ordinated by Tata Consultancy Services (TCS) and further information is held within the Sequenced Supplier Onboarding Brochure (Appendix F). 3.3

LON G D I STA N CE S EQUE N CE M E S SAGE S

Long Distance JIS (Just In Sequence) suppliers are those who build to order using an earlier message (i.e. EDM) than the current TLS (Target Launch Sequence). As a rule these suppliers may only build from a message up to 10 days in advance of TLS. The sequence of this message is ultimately not guaranteed to be identical to how the vehicles launched to the track so some provisions are required to re-sequence the parts upon the receipt of the TLS. This can be achieved with the following techniques, all of which may be carried out at the supplier’s or JLR’s facility depending upon the agreed solution: -

Backlog Accumulator – The use of additional backlog stillage’s that can be used to ‘shuffle’ commodities based upon the difference between the scheduled and actual production sequence (see below)

-

Pick to Sequence – building to an earlier message and individually re-sequencing and handling every component upon the receipt TLS.

-

Late Configuration to Sequence – building to a certain level of complexity based off of an earlier message and then late configuring upon the receipt of TLS. *Pictorial Backlog Accumulator

JLR’s target is to achieve a 90-95% BTS (build to sequence) accuracy based upon comparing the scheduled order of the EDM to the actual TLS production order (see above). The intention is that those orders out of the original scheduled sequence will be skipped rather than replaced with orders pulled forward.

The 90-95% BTS target for JLR is not only a benefit to long distance supply chains, it should also reduce stock holding costs for all suppliers by improving the accuracy of short term demand,

12

3.4 JLR is continuingly looking at methods to improve the end to end visibility of its supply chains, with the aim of improving operational effectiveness and reducing the reaction time to problems. with a view to enabling the following: -

Real time 2-way sharing of operational information between the supplier and JLR (e.g. live truck location, buffer visibility)

-

Real time operational collaboration (e.g. system alert if expected issues are identified)

-

Reinforcing good behaviours such as being proactive, accountability & collaboration through use of data and regular communication

13

4.

D R AW I N G STUDY/CON C EPT F EA SI B I L I TY 4.1

Plan For Every Part (PfEP)

16

14

4.0

DRAWING STUDY / CONCEPT FEASIBILITY

A drawing study exercise is required to confirm concept manufacturing feasibility and to ensure all supply chain parameters have been considered. The underlying focus of this activity must be to design the part for manufacture and logistics.

JLR Product Design (PD) and the supplier will jointly undertake the concept feasibility activity at the part design stage. Key areas for joint consideration, confirmation and agreement include, but are not limited to the following:

Manufacturability e.g. datums, tolerances

Par t structure e.g. BOM, variants

Complexity tree

Drawing Study

Critical Features e.g. Func tional req uirements, dimensions

Design for Manufac ture & Logistics e.g. simplif ica ti on, standardisation

P fEP Proce ss and Document e.g. source data

Less ons l earne d e.g. warranty i ssues, previous projects

The relevant function within the supplier must ensure that the detail within each of the drawing study categories is confirmed and validated with JLR PD and SD teams to ensure that all necessary manufacturing and logistics considerations have been taken into account during part design and development. In the supply chain design proposed by the supplier, the supplier should seek to reduce complexity by targeting the latest possible configuration and the shortest lead time to deliver . Notwithstanding any approval provided by JLR regarding the drawing study exercise, the supplier remains responsible for delivery in accordance with JLR requirements.

15

4.1

PLA N F OR E VE RY PART (P f E P )

The Plan for Every Part (PfEP) is a planning document that includes specific data on every part number coming into the supplier (Tier N), internal work in progress (WIP) and, where applicable, every finished-good part going to customers. It contains all information necessary to make informed decisions about transportation, packaging, inventory management, space planning, and material handling. At pre sourcing stage and throughout the industrialisation phase of a programme, suppliers must provide a PfEP in relation to the commodity they are supplying to JLR. The PfEP should be based on the latest available data / logical assumptions and be updated throughout the products lifecycle.

*PfEP example for Illustration purposes only

The PfEP should include (as a minimum) the following data: -

Part number/ Description / Type (bought out part / work in progress / finished good) Item Specifications (i.e. dimensions, weights) Supplier / Customer name and locations Identification of JLR Direct Sourced Suppliers Packaging Unit type (e.g. box) / dimensions / weight Handling unit type (e.g. pallet) / dimensions / weight Number of parts per packaging unit Number of parts per handling unit Number of packaging units per handling unit (if applicable) Handling unit stack ability Storage solution Linefeed strategy *BOP / WIP only Shipment size (considering minimum order quantity) Transport equipment Transport lead time Delivery frequency Demand Information including take rates ( detailing annual / weekly / daily / hourly demand) Stockholding Policy (Min-Max levels considering Safety / Operational stockholding) Identification of Critical parts

*The PfEP should include space calcu...