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1. IBS: Interactive Quality
Management
June 2011
IBS America
THE PRODUCTIVITY ADVANTAGE

2. Agenda
The Case for Interactive Quality
Qsys and IBS Overview
PDCA Process Walk-Through
Q&A
IBS Overview THE PRODUCTIVITY ADVANTAGE

3. The Case for Interactive Quality
 Solve Quality Issues Early in the Cycle
 Warranty and Recall costs $$$$
 Scrap and Rework $$$
 Non Conforming Purchased Items $$
 Interruptions in Production $$$
© IBS AG Slide 3 IBS Overview THE PRODUCTIVITY ADVANTAGE

4. The Case for Interactive Shop Floor Quality
 Solve Quality Issues Early in the Cycle: How?
 Design and Plan for reliability, quality $$$$
 Verify Supplier Quality
 Monitor Production Quality
 Use Proven Improvement Processes Continuously:
 SPC
 CAPA
 FMEA
 PDCA
© IBS AG Slide 4 IBS Overview THE PRODUCTIVITY ADVANTAGE

5. The Case for Interactive Shop Floor Quality
 Examples of Savings From This Approach
 TRW Warranty Cost Savings $3 Mill
 BP Increased Production Rates ROI < 1 Year
 Delphi ROI < 12 Months plus reduced materials cost and
increased production
 BMW Reduced Assembly Costs by $30 Mill
 Ceramtec ROI < 12 Months + reduced liability
© IBS AG Slide 5 IBS Overview THE PRODUCTIVITY ADVANTAGE

6. Reduce Costs
 Design Quality Issues Out
 Increase Production
 Ship 100% Quality
Stop Adding Value to Non-
Conformities
 Efficiently Handle Complaints
 Use SPC
 Identify Non-Conforming Purchases
 Root Cause Analysis
 Corrective actions
 Maintain Control
© IBS AG Slide 6 IBS Overview THE PRODUCTIVITY ADVANTAGE

7. Reduce Costs
Strategy Implement:
 Design Quality Issues Out APQP/FEMA
 Increase Production Inspection Planning/First Article
 Ship 100% Quality Outgoing Goods Inspection
Stop Adding Value to Non- In Process Inspection
Conformities
 Efficiently Handle Complaints Complaint Management Process
 Use SPC SPC Analysis
Identify Non-Conforming Incoming Goods Inspection
Purchases
 Root Cause Analysis CAPA
 Corrective actions CAPA
 Maintain Control Audits/Alerts
© IBS AG Slide 7 IBS Overview THE PRODUCTIVITY ADVANTAGE

8. Agenda
Agenda and Introduction
Customer Case Studies / Benefit Analysis
Solution Overview
Company Overview
Discussion / Goals
IBS Overview THE PRODUCTIVITY ADVANTAGE

9. IBS Quality Management Solution: PDCA-cycle
Action
Management Project FMEA
Problem Management Control Plan
Solving Flowchart
Process Act Plan
Audit
Management Inspection
Planning
Incoming Goods
SPC
Check Do •
Quality Control Production
Panel Supplier Outgoing Goods
Assessment
IBS Overview THE PRODUCTIVITY ADVANTAGE

10. IBS Quality Execution Management Solution: PDCA-cycle
Action Order
Management Resource
Management Planning
Problem
Solving
Process Act Plan
Audit
Management Fine planning
Process Overview /
Online-Visualization Paperless
Check Do Repair
PRISMA Auswertung
DB ...
LiTab
ACC
Handy
Docking-
Station
Admin/Konfig. Koppel-PC
Diagnose-
Touch Panel
Koppel-SPS
Andon Board Info-Point
Prozess-Netz
(Ethernet)
KPI (OEE, FPY)
Mobil-
Masch.-SPS Scanner
Analysing (PAA, CPK) MDA ODA
© IBS AG Slide 10 IBS Overview THE PRODUCTIVITY ADVANTAGE

11. IBS Traceability solutions for product and process traceability
Purchased
Parts
Transport
Customer Supplier
Traceability
KPI„s
Cockpit
Standard
Components
Standard Assembly
Groups
Plant n Plant 1
© IBS AG Slide 11 IBS Overview THE PRODUCTIVITY ADVANTAGE

12. Agenda
Agenda and Introduction
Customer Case Studies / Benefit Analysis
Solution Overview
Company Overview
Discussion / Goals
IBS Overview THE PRODUCTIVITY ADVANTAGE

13. IBS America, Inc.
 Group with 5 companies
 Germany, USA, Lithuania plus
Support office in in China
 Publicly traded since 2000
 Revenue 2008: ~ $30 million
 Founded in 1982
 Today about 180 employees
 Supporting over 4000 customer installations globally
(spanning over 50 countries and 5 continents)
IBS Overview THE PRODUCTIVITY ADVANTAGE

14. Key Competences & Positioning
Innovative Integration with
Services Software corporate
Solutions IT-Systems
Directors
 Industry independent MIS
Process consulting ERP
 Implementation Company mgmt.
MES
Process
 Training control
 Project Management Production
Machine
control
Implementation Operation Maintenance
IBS Overview THE PRODUCTIVITY ADVANTAGE

15. IBS Customers Save Money
The Cost of Quality as % of Revenue
Source: Aberdeen Group 2009
100% 18% 24% 29%
50%
0%
IBS Average Average Laggard
IBS customers achieve substantial cost reductions
with better than average performance (e.g. first pass yields, on time shipments).
IBS Overview THE PRODUCTIVITY ADVANTAGE

16. IBS Quality Management Solution: PDCA-cycle
Action
Management Project FMEA
Problem Management Control Plan
Solving Process Flowchart
Act Plan
Audit Inspection
Management Planning
Incoming Goods
SPC
Check Do •
Quality Control Production
Panel Supplier Outgoing Goods
Assessment
© IBS AG Slide 16 IBS Presentation THE PRODUCTIVITY ADVANTAGE

17. One Knowledge Database for Engineering
Customer Design Engineering
Requirements
APQP/First Article
Inspection
Project plan and
Checklists
First Sample
Inspection Design FMEA Part Master Customer Drawing
Control Plan Process FMEA Process Flow Chart Operations
Spend time on the
“floor” = Identify and
gather data Process Engineering
IBS Presentation THE PRODUCTIVITY ADVANTAGE

18. APQP - Data flow between Process Flow Chart, FMEA, Control Plan
2
1
3
IBS Presentation THE PRODUCTIVITY ADVANTAGE

19. IBS Presentation THE PRODUCTIVITY ADVANTAGE

20. Statistical Process Control - Analytics
SPC Evaluation
Control Chart
Shopfloor data is immediately available
Single Value Chart for evaluation
IBS Presentation THE PRODUCTIVITY ADVANTAGE

21. Supplier Assessment
Suppliers are assessed on four main criteria:
Supplier Assessment
Product Accurate Accurate Soft
Quality delivery dates delivery quantities criteria
Data valid for a
Data collected for each delivery pre-defined period.
IBS Presentation THE PRODUCTIVITY ADVANTAGE

22. Supplier Portal
Supplier Complaint passed to the Supplier Portal
Supplier completes analysis and actions
Optional:
Display key
quality indicators
Error analysis and corrective actions from the Supplier
Assessment module
IBS Presentation THE PRODUCTIVITY ADVANTAGE

23. Concern and Complaint Management
Action items
Create actions with a due
date, escalation profile and
responsible person
Email integration
Insert documents or
photos of any type
IBS Presentation THE PRODUCTIVITY ADVANTAGE

24. Concern and Complaint Management - Reporting
Define reporting periods and
get immediate visual results
Drill-Down and Drill-Up
functionality
Export into Excel
IBS Presentation THE PRODUCTIVITY ADVANTAGE

25. QSYS Modules - Overview
IBS Presentation THE PRODUCTIVITY ADVANTAGE