Audi Hungaria

Quality is the success factor

Supplier management for Audi Hungaria Motor Kft
With the aim of improving supplier quality and therefore the quality of products as a whole in the long term, Bertrandt provides support for its customers across international borders with lasting and measurable success. Bertrandt Altenburg was the partner chosen by Audi Hungaria Motor Kft. to implement its zero-fault policy as part of its supplier management programme.

Zero-fault strategy required for premium product
Suppliers are becoming increasingly involved in developing engines as well as entire vehicles. The spectrum of services they offer ranges from subcontracted production to full design responsibility. For this reason, it is essential for manufacturers to involve their suppliers during the development phase and to provide them with regular support at the start of and during the volume production. Especially for Audi, a premium brand with a sporty image, the engine is the heart of the product. As a result, the company has an explicit zero-fault policy and, in order to meet this requirement, Audi demands the same level of service from its suppliers. Bertrandt helped to ensure that Audi achieved its objective by providing resources and expertise as a project partner.

Process and project audits
In order to identify potential for improvement and possible areas of action, an evaluation of supplier quality was carried out using Audi‘s quality assurance parts monitoring system (QTS). The resulting data allowed a group of production suppliers to be identified which did not fully meet the quality requirements of Audi and its customers. Bertrandt‘s task was to improve their performance in measurable ways. For this purpose, the project team, which was structured according to production technologies, carried out a series of process inspections based on process audits (VDA 6.3) and on the qualification programme for new parts (QPN). This allowed for an in-depth analysis and evaluation of the production processes and the identification of weak points and risks. Using this evaluation, Bertrandt worked with the suppliers to draw up improvement measures. Subsequent inspections took place to monitor the implementation of these measures and their effectiveness was ensured by means of regular data comparisons with Audi.

Continuous evaluation improves supplier quality
A supplier evaluation system was set up which was able to distinguish between all the different types of complaints. This enabled the status at the start of the project and any improvements during the course of the project to be identified. There was a specific emphasis on the faults which occurred during the later phases of the value added chain, as these are particularly costly to rectify and involve internal clients or end customers. In addition to this data, which can be measured objectively, the quality specialists on the project team also considered subjective factors, such as cooperation, the effectiveness of measures and the ability to innovate, and included these in the rating which the supplier received.

Bertrandt‘s objective was to reduce the “parts per million” (ppm) by 50 percent during the course of the project and therefore to cut the number of reject parts produced by all suppliers by half. In addition, the aim was for each supplier‘s rating to increase by one point.

Continuous improvement process: Seven quality management experts worked together with Audi and its suppliers to improve the quality of the complex products even further. The team achieved its goal of increasing the supplier evaluation ratings.

Subsequent commission confirms the success of the project
The project was awarded to Bertrandt‘s Altenburg site, which took responsibility for managing and coordinating it over a period of nine months. The project team consisted of seven Bertrandt quality specialists with experience of process and product audits and the relevant manufacturing technology, together with a number of Audi employees from the QA Boughtin Parts G/GQ-3 department. The project team held two or three process inspections for each supplier. Reports were submitted to Audi each week concerning the results of these inspections and the measures that had been specified. In addition, the Bertrandt employees sent the plant Quality Management and Bought-in Parts Quality Management teams monthly project status reports. This information was used as the basis to formulate the strategy for follow-up visits.

Bertrandt was responsible for managing the reporting tools, including a data sheet showing supplier performance and a tool for evaluating the entire project in detail. The project was successfully completed in mid-2007.

As a result of the measurable and lasting success of the project, it was extended when Audi Hungaria Motor placed a follow-up order at the end of 2007. During the six-month period, the aim was to evaluate and develop the preventative quality measures. The focus in this case was on project start-ups, new suppliers, essential components and critical processes.

Audi Hungaria Motor Kft.
In the Hungarian city of Györ around two million engines for Audi and the VW group come off the production line every year. The spectrum ranges from the 1.6 litre petrol engine, which is manufactured using a highly automated, volume production process, to special 10-cylinder engines.