13.

External Logistic

February 2013

Confidential - PSA GM Purchasing & Logistic Committee 1

 Logistics Outline

Introduction page: Purpose, Scope, Responsibility

Benefits

Supply process (ELG1 & ELG2)

Shipping process (ELG3 & ELG4)

What goes wrong

Confidential - PSA GM Purchasing & Logistic Committee 2

 Logistics
Introduction

PURPOSE SCOPE
Have a system that ensures product is Management of Finished goods
delivered on time. Management of Shipping
Product at the right place at the right process
time Management of the logistic
Robust shipping department that is able tracking systems
to effectively respond to shipping
demands
Appropriate levels of finished goods to
supply customers
RESPONSIBILITY
Optimized level of stock
(Ownership) :
Logistics department
Manufacturing Manager

Confidential - PSA GM Purchasing & Logistic Committee 3

 Logistics
Benefits

Avoids plant disruptions (External and Internal).

Reduction in stock levels  Cost savings

Increase flexibility in schedule changes  Cost savings

Better reaction time in regards to last minute schedule changes

Increase reliability of logistic flow – production flows are

optimized

Ensures right part is delivered at right time

Confidential - PSA GM Purchasing & Logistic Committee 4

 Logistics External
Logistic

Tier N Supplier

Supply Process (ELG1 & ELG2)

Supplier
Plant

Shipping Process (ELG3 & ELG4)

OEM Customer

Confidential - PSA GM Purchasing & Logistic Committee 5

 Logistics
MPA vs MMOG-LE – Presentation of the generic logistic processes

MFM4 ELG3
ELG4

MFM1

MFM4 MFM1

MFM2 MFM3
MFM5

ELG1-2 MFM2

Confidential - PSA GM Purchasing & Logistic Committee 6


Supply Process (ELG1-ELG2)
# Requirement
Supply process is managed, organized &
ELG1 tracked
A process to secure supplies is appied on a
ELG2 basis of risks analysis.
Confidential - PSA GM Purchasing & Logistic Committee
Logistics
Criteria of the Requirement
1) A process to follow deliveries is formalized and applied. Related operations are
standardized. Resources are available during all production period.
2) A master schedule of deliveries is defined and follow up. A visual management
system, showing the smoothing of the deliveries (leveling), allow to follow them. An
escalation process is implemented in case of deviation.
3) A logistic protocol is defined and regularly updated for each tier X supplier.
Transportation organization toward the tier X suppliers is optimized
4) The service rate of the tier X suppliers is followed; actions plans are established
for most failing tier X
1) Components/materials at risk of supply are identified. Securing plans including
safety stocks are established with the tier X. The management of the site is strongly
involved and validates the whole process
2) Securing plans are periodically reviewed based on lessons learned
3) Safety Stock, advance warehouses are contractually defined and managed for
the the "far" tier X (more than 48h of transportation) and when applicable for the
"risky" tier X
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 Logistics
Supply Process (ELG1-ELG2) – Management of
deliveries
Main steps

Reception De- Incoming

Transport Unloading conditionning
Transfer
Docks Stock

Administrative Control of quantity

Sampling
receiving Loading of empty
packaging
Palletization control
Labelling control

Quality
Control

Confidential - PSA GM Purchasing & Logistic Committee 8

Logistics
Supply Process (ELG1-ELG2) – Master schedule of
deliveries
Dock Problem /
A B C D Countermeasure
06:00

22:30

• Put in place a working planning in coherence with the plant takt time
• At the incoming , organize and optimize the activity on the basis of a stable
workload
• Visual management: quickly identify late deliveries & initiate as soon as possible
escalation process

Confidential - PSA GM Purchasing & Logistic Committee 9

 Protocol definition
what
• Contractual document that describes all characteristics of the flow
• Locations of the points of departure & arrival
• Standard for the data exchange
• Frequency and timing of transport
• Standard of orders

who
• Tier 2
• Supplier (Tier 1)
• Carrier

where
• For recurent supplies
• Protocol is formalized through an information system

when
• 1st validation: before the 1st mass production delivery
• Updated & verified regularly

Confidential - PSA GM Purchasing & Logistic Committee 10

 Logistics
Shipping Process (ELG3-ELG4)
# Requirement
Shipping process is organized and tracked.
ELG3 Packaging is properly labelled.
In order to guarantee that shipping process is (See #MC).
carried out according customer needs, the
ELG4 Electronic Data Exchange (EDI) network is
operational and a Logistic Protocol is managed. production (change of customer site, change of schedule,...). Ressources
Criteria of the Requirement
1) Shipping process is described and timely managed. All the operations are
standardized.
2) Shipping process integrates milestone operations (Eg: verification of availibility of
finished products, truck loading completed (AVIEXP)) allowing to alert customer in
relevant time in cas of issue.
3) Shipping planning is visually managed (Timing Table of the preparations of
shipping orders).
4) A preparation list is available for operators. Operations done are recorded.
Loading is prepared on "bogus truck" areas.
5) All the packaging are labeled properly and packaging/shipping includes a label
error proofing operation in order to prevent part misidentification. PFMEA covers
potential failure mode of labelling.
6) Specifically for synchronous deliveries, a constant monitoring/ follow up of the
process is carried out in real time; all deviations/issues are recorded and analyzed
and start immediate countermeasures and corrective actions to eradicate issues.
1) EDI communication is installed and is validated with the customer. Qualifed
people are permanently available on the site to manage EDI
2) Back-up solutions are defined, validated with the customer and are periodically
tested
3) Any evolution of EDI communications must be considered as significant change
4) A Logistic protocol is established together with the carrier (transporter) and the
customer . It is continously updated to take into account changes during current
responsible for the protocol management on site are identified
5) Any deviation in the protocol application is treated and managed by action plan
(alternative transportation mode, adapting packaging…)
Confidential - PSA GM Purchasing & Logistic Committee 11
 Logistics
Shipping Process (ELG3)

Main steps

Stock of
Bogus
Manufacturing Finished Preparation Loading Transportation
Truck
Products

Confidential - PSA GM Purchasing & Logistic Committee 12

Logistics
Shipping Process (ELG3) – Shop stock (finished
products

See Requirement ILG2

1 area = 1 reference

Level Mini & Maxi are visually identified

Escalation process are well defined

(with precise timing)
Checking of product availibility begins in
D-1 before shipping

Confidential - PSA GM Purchasing & Logistic Committee 13

 Logistics
Shipping Process (ELG3) – Shipping Planning

One unique board in the shipping area

For NOK Status, escalation process defined

Product + Customer

End of preparation scheduled time

Truck departure time & date

Preparation status
G: in time O: late R: Emergency

Quantity

Bogus Truck Location

Previous day situation

Confidential - PSA GM Purchasing & Logistic Committee 14
Logistics
Shipping Process (ELG3-ELG4) – Bogus Truck
Areas identified with footprints
1 area = 1 truck
Preparation Totem

Preparation
List

Defined area

Customer
& Product

Timing

Confidential - PSA GM Purchasing & Logistic Committee 15

Logistics
Shipping Process (ELG3) – Standardize operations

Tâche Standard Durée Qui 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00
Réception commande PC W 601 10
Impression commande PC W 602 10
Impression étiquettes PC W 603 10
Picking pièces PC W 604 120
Preparation
Operations
Etiquettage PC W 605 30
Préparation palette PC W 606 10
Cerclage PC W 607 10
Confirmation PC W 608 10

Temps
Safetyde sécurité
time
PC W 609 240
Arrivée camions PC W 610 15
Contrôle expédition PC W 611
Loading 10
Operations
Chargement PC W 612 10
Départ camion PC W 613 10

Confidential - PSA GM Purchasing & Logistic Committee 16

Logistics
Shipping Process (ELG4) – EDI

EDI: standardized communication link between supplier & customer

Supplier MRP  Customer MRP
Without EDI

Manual Operations
Manual Operations

Customer With EDI Supplier

Forecast
Orders
Notice of shipment
Invoice
ERP / MRP ERP / MRP
EDI = reduced processing time
no mistakes dues to manual operations
effective communication
high frequency update => increase flexibility

Confidential - PSA GM Purchasing & Logistic Committee 17