7.

0 RISK REDUCTION

QSB+
Train the trainer
Going from reactive to Proactive

Confidential - PSA GM Purchasing & Logistic Committee 1

 RISK REDUCTION
Risk Reduction, what are we searching for?

Confidential - PSA GM Purchasing & Logistic Committee 2

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PFMEA Overview
• PFMEA’s shall be developed and maintained by cross-functional teams for
all manufacturing processes and support functions as required by the
AIAG manual.
– Exist for all product lines / part numbers.
– Support functions include: (receiving inspection, material
handling, labeling, shipping, repair, rework, etc.).

• PFMEA’s shall:
– Conform to current AIAG and PSA guidelines.
– Have accurate Severity/Occurrence/Detection ratings.
– Be updated on a regular basis (living documents).
– Be utilized for Continuous Improvement.

• Suppliers are required to have a formal and documented RPN reduction

process.

Confidential - PSA GM Purchasing & Logistic Committee 3

 RISK REDUCTION
PFMEA Risk Reduction Process
List of the Highest (RPN) Risk Reduction Opportunities - Example

(Proactive)
RPN Completion Revised
No. OP No. Function & Failure Mode Value Who Recommended Actions Date RPN

SENSOR TO DETECT
1 10 INCORRECT BEARING INSTALLED 490 B. SHAD BEARING TYPE 12/1/2008 112

INCORRECT OR REVERSED
2 20 SUBASSEMBLY 126 N. ADAMS INSTALL LASER STATION 12/31/2008 42

INSTALL POST ON ASSEMBLY

3 50 HOLE MISSING 168 S. BROWN FIXTURE 12/23/2008 42

4 60 INCORRECT LABEL 112 V. WAGNER IMPLEMENT SCANNER 1/30/2009 21

Confidential - PSA GM Purchasing & Logistic Committee 4

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PFMEA Overview - AIAG scoring guideline
Severity

Confidential - PSA GM Purchasing & Logistic Committee 5

 RISK REDUCTION
PFMEA Overview - AIAG scoring guideline
Occurrence and Detection

Confidential - PSA GM Purchasing & Logistic Committee 6

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PFMEA Overview - PSA scoring guideline
Severity Occurence

Confidential - PSA GM Purchasing & Logistic Committee 7

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PFMEA Overview - PSA scoring guideline
Detection

Criticity = S x O x D

Threshold: 36

Confidential - PSA GM Purchasing & Logistic Committee 8

 RISK REDUCTION
PFMEA review, what are we searching for?

Confidential - PSA GM Purchasing & Logistic Committee 9

 RISK REDUCTION
PFMEA Review Process
Cross-functional teams shall review PFMEA’s periodically.
Frequency & priority of PFMEA reviews to be determined by leadership based on:
• Customer expectations (PRRs, DD&W, APQP, etc.)
• Process capability (FTQ, SPC, etc.)
• Changes to the process (Error proofing, Tier 2 changes, etc.)
• Product from an acquisition, tool move or change in supplier.
• PFMEA for part(s) with history of customer complaints.
• Occurrence ratings (FTQ, scrap, warranty etc.) have changed
significantly.
• PFMEA with oldest revision dates.

Confidential - PSA GM Purchasing & Logistic Committee 10

 RISK REDUCTION

PFMEA Reactive Risk Reduction Process

Risk Reduction through review of past quality issues:

When corrective actions have been implemented, team shall validate the new
Occurrence and Detection rankings and resultant RPN.

Team shall update PFMEA’s with all corrective action measures.

Confidential - PSA GM Purchasing & Logistic Committee 11

 RISK REDUCTION
PFMEA Proactive Risk Reduction Process (Reverse PFMEA)

• On-station review to verify current process controls of identified failure mode

• Validates Occurrence and Detection ratings based on actual inspection data
• Attempts to create new Potential Failure Modes not originally considered

NOTE: Should be responsibility of maintenance to avoid risk to station.

Teams and an audit schedule should be defined with one external auditor as "fresh
eyes" for the audit.

All findings to be documented in an action plan to increase the prevention of defects.

Confidential - PSA GM Purchasing & Logistic Committee 12

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Audit Schedule
Stations already done Month Week

Line
Number of
stations

Station number
or name
Stations pending to be
audited

GREEN Station YELLOW Station Pending RED Audit

Audited but on time Delayed

Confidential - PSA GM Purchasing & Logistic Committee 13

 RISK REDUCTION
General risk assessment, what are we searching for ?

Confidential - PSA GM Purchasing & Logistic Committee 14

 RISK REDUCTION
1. Human Ressources
General risk assessment Social Conflict (Strike)
Wages too low
Heavy rate of absenteism
Major safety issue
It identifies potential risks which could 2. IT
impact to plant normal processes, Network breakdown
ERP Breakdown
activities. It covers risks such as: EDI Breakdown
3. Facilities
• Un-availability of key resources Electrical accidents
General loss of power
(electricity, pressured air, water Transformer breakdown
Other type of accidents
etc.), Fluids supply (compressed air, hot water,
…)
• Breakdown of key processes and Fire
tierX suppliers, Trespasses (theft)
Dangerous industrial neightbourhood
Natural Disasters
• Disasters (fire, flood, earthquake Flooding
etc.), Storm
Snow
4. Tier X Issues
• Strikes, etc. Tier 2 Disruption
Manufacturing transfer
Systematic approach is used to evaluate 5. PRODUCTION
Manufacturing Equipment & Tools
risk (like FMEA approach). Breakdown
Control Equipment
Action plan is defined and regularly Breakdown
reviewed. When applicable, plan is 6. LOGISTIC
Production Planning
audited and simulations is carried out. Customer demand unreachable
Internal log
Handling equipment breakdown
Transport
Downstream flow blocked
Confidential - PSA GM Purchasing & Logistic Committee 15
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General risk assessment – Example #1

Confidential - PSA GM Purchasing & Logistic Committee 16

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General risk assessment – Example #2

Plant FMEA
1st Updated
Action plan
Evaluation Evaluation

Risk Impacts S D Criticity Owner Actions S D Criticity

1. Human Ressources
Social Conflict (Strike) Enable to produce or
deliver
3 1 3 XXXX Doc Ref.xxxx 2 1 2
Wages too low Loss of critical
competencies
Heavy rate of absenteism Enable to produce
Major safety issue Equipement blocked due
to legal investigation
…. ….

Scoring
Severity
1 2 3
No customer Customer plant Customer plant • Managed by top management (Plant director)
impact minor disruption stop

Detection
• FMEA is reviewed once a year
1 2 3
Very High High Low • Action plans are reviewed and eventually
Criticity = Severity x Detection tested once a year
Threshold = 3

Confidential - PSA GM Purchasing & Logistic Committee 17

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Risk reduction effectiveness, what are we searching for ?

Confidential - PSA GM Purchasing & Logistic Committee 18

 RISK REDUCTION
Example of RPN reduction Summary

Confidential - PSA GM Purchasing & Logistic Committee 19

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What goes wrong ?
• PFMEA is a „one man show”.

• Scoring is not according to customer guidelines.

• Scoring is not consistent.

• Detection score too low for Visual inspection.

• Failure modes are missing, not revised at work station.

• Internal/external PPM are not used for Occurrence.

• Scoring driven by low RPN or set by action limit.

• High risk item identified but not controlled by SQ tools.

• Management is not involved & does not allocate resources for regular reviews.

• PFMEAs not used for continuous improvement - only updated when problems
occur.

Confidential - PSA GM Purchasing & Logistic Committee 20