Volume Variance - Chrysler

Volume Variance

What is it? 

Advance Planning Tool 

Compares supplier’s Operational 

Breakpoints against Chrysler’s 

average weekly release requirement 

Identifies shortfalls and sends an email 

to the supplier

Access to Volume Variance 

Same as Capacity Database 

Thru Covisint 

Under Capacity Management 

Granted thru YOUR company’s Internal Security Administrator

Capacity Management Homepage

Input a supplier code

Volume Variance To Do List 

Note your EBSC Rating is displayed on this page in red. 

All headings that are underlined can be sorted.

Select # of Items Per Page

Parts per page function 

Enter amount of items then click on ‘go’. You may scroll through all of the 

items. This function works for any part’s list.

Select Part and Volume Variance Detail Page will 

appear

Capacity Database link from Volume Variance

Release Detail 

The Volume Variance System calculates the release 

variances using the releases (830’s and CMIS) that are 

available in the System for up to 18 monthly buckets. The 

release is a part level requirement to the supply base, 

which provides authorization for the purchase of raw 

materials and fabrication of those materials into finished 

goods. 

The average weekly release is compared to the operational 

capacity in the Capacity Database. In the event that the 

average weekly release is greater than the supplier’s 

operational capacity a “variance” is flagged.

Answering & Resolution Options

Resolving Variances 

Resolving Variances – Overtime, Banking, Resourced Part, and Part Cancelled. 

Postpone Action- Only available in the 16, 17, and 18 Monthly bucket. 

Be sure to click on “submit” at the bottom of the screen

Overtime

List of Answer Codes

Resourced Part 

Resourced Part is a resolution code. In order for 

the system to accept a Resourced Part answer 

the part must have multiple POs. 

If you are unable to answer Resourced Part and 

you no longer supply the part, you may answer 

Cannot Produce and explain that the part is 

resourced in the Cannot Produce Comment. 

Resourced Part answer will resolve the variance.

Part Cancelled 

Part Cancelled is a resolution code. In order for 

the system to accept a Part Cancelled answer, the 

part must be cancelled in the Engineering Bill of 

Material System (EBOM). 

If you are unable to answer Part Cancelled and 

you no longer supply the part, you may answer 

Cannot Produce and explain that the part is 

cancelled in the Cannot Produce Comment. 

Part Cancelled answer will resolve the variance.

Postpone Action 

Can only be used in the 16 th , 17 th , & 18 th monthly buckets. 

Will “resolve” the variance until it goes into the 15 th monthly bucket. 

Used when a supplier anticipates that the release will go down by the 

time it reaches the 15 th monthly bucket.

New Tooling 

This answer code is used when no other option except additional 

tooling will enable you to produce the required quantity of parts. The 

System will allow a New Tooling answer if the new weekly capacity is 

higher than the highest release requirement; and the time needed to 

procure the new tooling is consistent with the time frame that the 

requirement is needed. 

In other words if it is now September, and you have a shortfall in 

October for 7000 parts, and your lead time is 12 weeks to obtain the 

new tooling; the System will not accept the new tooling answer. The 

reason is that you need the new tooling in 6 weeks and it will not be 

ready until 12 weeks. 

In the same way, if your new weekly capacity will be 6500 parts and the 

shortfall is for 7000 parts, the System will not accept your answer.

New Tooling Requirements

Cannot Produce 

Cannot Produce is used when a supplier absolutely 

cannot meet the requirements. 

The System will not allow the user to enter a short term 

capacity. User will be required to enter a Cannot Produce 

Comment in order to submit the answer successfully. 

Cannot Produce answered variances will remain on the 

To Do List as they are not resolved. Only a System Delete 

or changing the answer will remove them from the To Do 

List. 

Make sure the System updated the answer by checking 

the status on the To Do list.

Cannot Produce Comments 

Cannot Produce answer requires comment. The above example is a good 

comment: When it was entered. What is happening. Status of the issue

Mass Update - Match Requirement 

To use Mass Update, you can only answer 

Overtime or Banking – but not both 

Click on Match Requirement and all of the 

Variances will be answered and the short term 

Weekly capacity will automatically match the 

Average weekly release requirement

Mass Update- Enter Capacity 

Capacity Option - The drawback to this function is that the highest 

possible short term capacity has to be entered to cover the highest 

release. In other words you may be committing to a higher capacity than 

is needed for all shortfalls in order to resolve the variance. 

In this example you would have to enter the capacity of 11839 for all 

shortages in order to use this function. 

Match Requirement function is a more efficient way to answer the 

variance if possible.

Capacity Update 

This function will allow the user to edit capacity in the 

Capacity Database; and it will update immediately in the 

Volume Variance System instead of waiting for the 

weekend update to resolve issues. 

If the capacity entered is more than the release 

requirement, the variance will system delete.

Short Term Capacity 

Important! Short Term Capacity is a commitment. The user is 

expected to provide the quantity entered. Never enter a short term 

capacity that you are unable to ship. The System will accept the 

short term capacity as long as it meets or exceeds the average 

weekly release. 

Your part will not go into variance again unless the release goes 

over the Short Term Capacity

CPV (Capacity Planning Volume) Variances 

These variances are “Information Only” No action is required. However it is a 

“heads up” that Chrysler is forecasting a higher volume on your part. 

Note the Capacity Database link on the bottom of the Variance Detail Screen

Log Screens 

Suppliers can view their history of variances for Cannot Produce, 

New Tooling, and Resolution History. 

Current Resolution Log will allow deletions of previous answers. After 

The weekend update and the variance appears again, it can be re-answered

Supplier Ratings - DRIVE Score 

Enter Supplier code

Supplier Ratings - DRIVE Score 

Suppliers will be rated on the External Balanced Scorecard (EBSC) in the 

Supply Cost Driver. The rating is 15% of the overall DRIVe Score. 

Suppliers must have 100% of their parts in the Capacity Database completed 

with capacity information. Suppliers must have 100% of TRAP Studies 

answered in Supplier Collaboration. And Suppliers must answer all 

variances in the Volume Variance System. 

Actionable Items in the Capacity Database, Volume Variance and Supplier 

Collaboration Systems that are unanswered after 13 days are considered 

late. 

Capacity Database and TRAP Study actionable items answered late or 

unanswered will calculate a 0 rating. 

The Volume Variance Rating will be based on the following calculation: 

◦ A 10% DEDUCTION will be applied for each late variance. 

By clicking on the Drive Score link in the Capacity Database dropdown list 

you may view your Drive Score.

Contacts 

CDhelp@chrysler.com 

Debbie Reblin – 248-576-8574

Capacity Management 

Supplier Collaboration Tool

Supplier Collaboration Tool 

Online web interface to allow Chrysler Suppliers to respond 

directly to Trapline capacity studies. 

Access through Chrysler Supplier Portal – Capacity Management 

Homepage 

System Launch October 2007


Suppliers will receive an E-Mail from “Pool ID PP and S Trapline 

Investigations” 

E-Mail will include: 

General trapline information 

Due date 

Body Model Info 

Sales Code Info 

Link to Supplier Collaboration Tool to respond

Trapline E-Mail Example 

You are receiving this notification because a response is required to the capacity study described below. 

Supplier Code and Name: 12345, Supplier Corp 

Study Name: Investigate increasing WD Production to 530 JPD 

Study Description: Marketing and management anticipate the need to build approximately 530 WDs per day after exiting the 

launch curve. The current rate of 391 JPD is being viewed as not adequate. Given maximum production in study period, incremental WDs will be 

offset with WKs. No new plant calendar available/required. 

Model Year: 2011 

Date Range Studied: 01/01/2011 - 04/30/2011 

Plants Affected: 04012 

Vehicle Families Affected: WD, WK 

Due Date: 

Supplier responses are due: 5/14/2010 

Buyer validations are due: 5/20/2010 

Supply responses due: 5/27/2010 

Director validations due: 5/27/2010 

Trapline Analyst Comments: 

SUPPLIERS - Please follow the link to Supplier Collaboration below to respond to the trapline. Please respond to each part and common 

process group in variance by the due date. 

BUYERS - If any tooling quotes are submitted by your supplier, you will need to validate these costs. Once validated, please follow the link to 

Supplier Collaboration below and then proceed to the applicable part and/or common process group and click on the not to exceed or 

negotiated radio buttons. Negotiated variable costs can only be submitted by the buyer. 

TRAPLINE DETAILS 

Sales has requested a trapline to increase the production plan for the "WD" built at Jefferson North Assembly Plant beginning in Jan. 2011 for 

11MY. The highlights of this study include: 

- This trapline increases WD Jobs Per Day from 391 to 530. 

- WD 530 JPD will represent 55% of JNAP on straight time (957 JPD) and 49% of JNAP on daily overtime (1073 JPD). 

- Peak weekly WD volume will increase from 2,346 to 3,180 on a six day overtime schedule. 

- Remix out of WK, overall JNAP peak daily volume will continue at 1073 JPD (9th hour OT). 

- All WD module & SPD suppliers must be able to achieve the proposed rates above in order to support this trapline.

Trapline Attachment - Body Model & Sales Code Info

Enter Capacity Management through the Chrysler 

Portal

Through Supplier Collaboration tab select 

Supplier Action

Enter Supplier Code then click on Proceed

Trapline Views 

• A list of all open Traplines will be displayed for that supplier code as a default. 

• To see all, pending, and closed Traplines for this supplier code make selection from 

study I.D. status list.


•To view list of parts in variance, click on the study I.D. number. 

•Only parts in variance related to this study will be displayed.

Study ID Definition box 

For more information about the Study click on the link below the study name.


To see the months in variance for an individual part, click on the part 

number/CPG number.


•The screen display is very similar to the Production Volume Variance Screen. 

Resolutions must be provided for all months showing shortfalls. 

•Cannot Produce answer is not an option. Require cost and lead time to meet 

requirement. 

•The only other difference between this and Production Volume Variance is the “Partial 

Plan” resolution.


• If you select new tooling, please enter the “New Weekly Capacity”, “Dollars $”, “Lead 

Time In Weeks” and “Supplier Comments”. 

• Comments should include tooling details.


• Part List screen now shows the updated response code, tooling cost, 

variable cost, lead time, new capacity and buyer validation for each specific 

part number or Common Process Group.


• Study ID List screen now shows the updated response code, tooling cost, 

variable cost and lead time for each specific study ID.

Conclusion 

Partial plan should only be used when the what-if requirement 

absolutely cannot be met, but a portion of it can be. 

Variable costs for Banking, Overtime or Excess Transportation can 

only be entered by your buyer. In order for these costs to be 

recognized, you must contact your Buyer and negotiate thru 

Purchasing.

Failure to Respond 

If you do not respond to the Trapline, you will receive a reminder 

and/or delinquency e-mails and phone calls. Your buyer will be copied 

on these e-mails as well. 

Responses to the Supplier Collaboration System are part of the DRIVe 

Rating.

Volume Variance - Chrysler

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