2007 Reference document (PDF) - Valeo

1 Activity
The Group
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The specific features of the aftermarket are also taken into
account at Valeo. This market imposes certain limitations on
industrial operations. Products are mainly manufactured using
the same production machines as for original equipment parts.
If necessary, simplified lines designed for small volumes with low
levels of automation can meet the requirements of this market.
Servicing and maintenance of these specific machines are already
in place.
In order to optimize logistics, each Valeo plant is organized according
to product flow. Responsiveness and flexibility with regard to
customers’ requirements are fundamental. In particular, Valeo
employs pull-flow methods to reduce stocks and simultaneously
improve customer service levels. Two new techniques were
applied in 2007: “the truck image” whereby orders are prepared
in sequence to eliminate futile stock movements and “visual reordering”
which reduces component stock levels, especially for
shipping flows. The daily measuring of service levels is a rule
which, little by little, is extending to our suppliers.
4.3.3. Quality
Quality is a key demand from consumers and automakers.
It is the cornerstone of Valeo’s 5 Axes methodology, and an
integral part of the Group’s culture.
Total Quality is not just a question of methodology; it is above all
a state of mind. It therefore requires the involvement of everyone
at all times and in all circumstances. At Valeo, this approach is the
responsibility of all 61,200 Group employees.
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The role of the Quality network is to ensure that everyone is aware
of and understands their individual responsibilities. It also consists
of evaluating problems and requirements in terms of training
support, and of training, supporting and validating lessons to be
retained and shared to avoid any recurrence.
The Valeo Quality network functions on the basis of a decentralized
network and involves each of the 5 Axes:
the Quality System Manager validates internal procedures, checks
that they are applied properly, and updates them to ensure
that they are in line with both internal and external quality
standards,
the Project Quality Manager ensures that the quality methodology
is duly applied to projects and checks that projects are covered for
their entire duration, in accordance with Valeo standards,
the Supplier Quality Manager manages the quality of components
delivered, from the project phase right through the product’s
lifecycle and assists supplier progress through the implementation
of improvement plans,
2007 Reference document - VALEO
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the Production Quality Manager ensures that quality-specific tools
are properly implemented within the manufacture process and
coordinates the deployment of control plans as well as instructions
for work. He/she also acts as the “voice of the customer” for
all quality incidents in order to ensure the customer’s total
satisfaction;
■ Valeo has also implemented a program of resident engineers,
to provide optimal customer support. Engineers are no longer
simply assigned to a given customer; they actually go and work
at the customer’s premises. As soon as a problem is detected, the
engineer communicates it to the appropriate people at Valeo, so
that actions can be defined immediately to protect the customer.
At the end of 2007, the Group had 72 resident engineers; 46 in
Europe, 15 in North America, 8 in Asia and 3 in South America.
Among these 72 people, a program of warranty resident engineers
was also deployed, whereby 10 resident engineers joined the
customer teams, either at the head offices or in their warranty
management centers.
Reinforcing the Valeo culture means mobilizing all employees at all
levels, and is based on:
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the San Gen Shugi approach, inspired by Japanese best practices
and based on a concrete analysis of what actually happens on
the shop floor. San Gen Shugi is based on reality: Gen-ba (where
and when a problem arises) Gen-butsu (using the actual parts
involved, whether above or below standard), Gen-jitsu (with
measurable facts). This attitude is founded on both individual
responsibility and teamwork;
the QRQC approach (Quick Response Quality Control) is also
essential. When a problem occurs it is immediately identified
and analyzed by the parties involved. Corrective action is defined
immediately and implemented within 24 hours. In the event of
a quality incident, meetings are held on the spot, to identify the
root cause and eliminate it for good. These meetings involve
employees from various functions as required: production,
logistics, maintenance, etc.;
in the automotive industry, non-quality of products is expressed
in ppm (the number of defective parts per million produced).
In four years, Valeo has reduced the number of defective parts
by a factor of 18. In 2007, non-quality of products improved by
29% compared to 2006, to reach 10 ppm at the end of 2007
(compared to 14 at the end of 2006). 86 Valeo sites (compared
to 55 at the end of 2006) were already below 10 ppm at the
end of 2007.
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