Procurement Activities Planning According To Product Life Cycle

Production phase

The supplier starts series production after the proof of series capability.

Pre-Production

Parts which are assembled in customer samples are produced in the Pre-Production phase prior to SOP. In this phase the volume planning for the ramp up has to be updated. A continuous filling of the supply chain has to be ensured in order to guarantee a smooth SOP.

Engineering Change Management

At the pre-production phase, some time the engineering change is inevitable.

We must manage the engineering change properly:

Pre-clarification the engineering change

Engineering planning

Processing validation

Customer verification and approval

Implementation

Ramp up

In the Ramp up phase the value stream design and the planned production volume are updated. Depend-ing on the second and third source strategy, the sec-ond and third sources are involved in the series pro-duction.

Series production

Logistics is responsible to ensure the supply man-agement, which means on-time delivery of purchased parts based on pre-defined processes (order, VMI, Kanban)

Support of parts and suppliers during series produc-tion is under control of commercial purchasing on commodity group level. Commercial purchasing ac-counts for the complete supplier management. That is, amongst others, supplier monitoring, holistic sup-plier evaluation, initiation of supplier development projects, annual contract negotiations, contract man-agement, material bundling and change management.

Purchasing Quality Management supports commer-cial purchasing by quality activities with suppliers. This includes incident management and the requalifi-cation of purchased parts after product changes or due to continuous series monitoring. Furthermore, quality training and quality improvement programs with suppliers are executed.

The quality of deliveries and the technical quality per-formance of the supplier is monitored and communi-cated to the supplier without delay.

Ramp down

In the last phase the ramp down of the product has to be planned. The capacity has to be reduced and a strategy for spare parts has to be defined. The end-of-lifetime agreement is executed. The purchasing proc-ess is completed by this phase.

Procurement Planning

Engineering Change Record and approval

Production Capacity Planning

Flexibility and accuracy respond to customer demand change