Customer DV/EV QV VV SOP

APQP
AIAG

PKC Gate Review GR3 GR4 GR5

Program Management Strategy Handbook

Procedure #:

Date of issuance:

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PMH
Content

1. Introduction

2. Program leader

3. Program vs. engineering change criteria

4. PM Phases

5. Annex

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PMH
Content

1. Introduction

1.1 Validity

33
Introduction
Validity

Release of the present version PMH

This Program Management Handbook is binding for all company divisions of

PKC Group North America as well as the associated companies.

It can be found on Smartsheet and define the tasks of the program management department
and the function program leader within the context of the process and documents of the
program management organization PKC.

The aim is to ensure a successful, customer and target-oriented program coordination within
the framework of a international functional multi-program-management.
Torreón, in January 2022

Marty Hughes Mario Ramírez

Sr. Vice President - Sales, Sr. Director – Program
Engineering & Program Management & Continuous
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Management - North America Improvement - North America
PMH
Content

1. Introduction

2. Program leader

3. Program vs. engineering change criteria

4. PM Phases

5. Annex

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PMH
Content

2. Program leader

2.1 Responsibility

2.2 Competences

66
Program leader
Responsibility

Manage the program

• Plan & organize
• Create & keep transparency
• Coordinate activities & steer them target-
oriented

Manage the customer(s)

• Customer orientation
• Establish & keep contact through commercial
department
• Recognize & define priorities

Manage the team

• Cooperate with the team
• Motivation, coordination & support of the team
• Ensure topic- & goal-oriented communication
(conflict management)
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Program leader
Responsibility

General
Personal responsibility for planning and observance of deadlines, costs,…

Ensure consequent target-performance comparison

• time schedule
• product cost
• program costs

Interaction with the management / gate reviews

• ensure the realization of activities defined in the team
• information in case of emerging risks / deviations from the plan
• where required, re-definition of program targets and contents

Work success-oriented and process-oriented

• keep the demands of the quality system
• bring out decisions with concentration on the entire program success
• ensure a consequent change management (on the basis of defined processes and forms;
in principle all product & process changes deviating from the original scale of the offer)

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Program leader
Responsibility

Teamwork
Responsibility for a structured, active teamwork,…

Definition of organizational matters

• use, name & storage of documents
• determination of the language used in documents
• organization of meetings (contents, location, time, cycle)

Agreement of communication rules

• team decisions have to be supported by the whole team
• criticism should be constructive & factual (not related to persons)
• optimal preparation of meetings (reliable/ timely preparation of program issues
by responsible team members)

Clarification of team responsibilities

• independent coordination of all department-specific subtasks (incl. breakdown of the activities
& definition of corrective actions in case of deviations from the plan)
• continuous reporting of department-specific status

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Program leader
Responsibility

Teamwork
The program leader should, as any other team member, stick to the rules of successful team work

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PMH
Content

2. Program leader

2.1 Responsibility

2.2 Competences

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11
Program leader
Competences

• Project-oriented authority towards team members

• Delegation of tasks and possibly competences to team members

• Right to obtain information regarding all information from all departments which is
necessary to carry out the project

• Convening extraordinary project meetings

• Organization of the program closure (relief of the program team)

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PMH
Content

1. Introduction

2. Program leader

3. Program vs. engineering change criteria

4. PM Phases

5. Annex

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13
Program vs. engineering change criteria
Flow

1. All associates are encouraged to identify potential programs

2. Potential programs are tested against 3 standard criteria
3. All programs are maintained on Program Register

1 4. Programs are evaluated per: scope, risk, and change

5. Level 3 programs follow the 6 phase / gate process

5
3 4
6 Phase /
2 Gate Process
Program Difficulty Lvl 3
Program Assign ID & Add
Index GR G G
vs ECN to Program R4
1,2,3 3 R5
Register

ECN Lvl 1-2

-Weekly Team Mtgs

ECN Process & -Special Escalations
Weekly Meetings -Weekly Risk
Escalation Mtgs

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14
Program vs. engineering change criteria
Criteria

Major engineering changes must be treated as programs

Qualifying criteria (any single item):
1. Requires a RFA above $80K USD per each single ECN.
Program • Significant tool re-design.
vs ECN
• Significant production increase.
2. Customer direct as new program.
3. New Technology to PKC.

Objectives:
• Track each program on the Program Register – NO STEALTH PROGRAMS
• Walk each program through the difficulty index to identify level 3 programs

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15
15
Program vs. engineering change criteria
Cross functional teams

Commercial • Customer facing leads

ECN Process & Engineering • Drives weekly engineering change meetings
Weekly Meetings Team • Drives weekly APQP team meetings

Engineering Change Reviews Cross-functional APQP Team Meetings

(Production) Teams (New Programs)

• Drives engineering change

Change Operations
Implementation on production • Drives new program
Implementation Program
floor Implementation on production
Leader Manager
floor

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PMH
Content

1. Introduction

2. Program leader

3. Program vs. engineering change criteria

4. PM Phases

5. Annex

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18
18
AIAG
APQP
Customer

Milestones
PM Phases

documentation
PKC Gate Review
Quotation review
Advance comp. list
Phases Overview

Advance CAPEX
Financial model
Master plan draft
White paper application
Kick-off meeting

Start CER/RFA
Master plan detailed
Initiate change mgmt.
Submit CER/RFA

Design review start

DFMEA
DVP&R
Technical review end
DV/EV

Single part status

Initial samples approval

Line review
QV

PFMEA
Equipment release
Line pre-release
GR3

R@R
VV

PPAP approved
Line release
GR4

Lessons learned
SOP

GR5
19
19
Process
Process
Program

Continuous
PM Phases

Management

Improvement
PKC Gate Review

Quotation review
Advance comp. list
Advance CAPEX
Financial model
Master plan draft
White paper application
Kick-off meeting

Start CAPEX
Master plan detailed
Initiate change mgmt.
Submit CAPEX

Design review start

DFMEA
DVP&R
Technical review end
Single part status

Initial samples approval

Line review
PFMEA
Phases Overview – Model line & engineering best practices

Equipment release
Line pre-release
GR3

Model line Mfg System

Methods Lab -16 steps

R@R
Engineering & QC Best Practices

PPAP approved
Line release
GR4

Lessons learned
GR5
PM Phases
Detailed levels

PKC Gate Review GR3 GR4 GR5

White
Quotation
paper
review
application

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20
PM Phases
Quoting

GR3 GR4 GR5

Quoting
Work out program basics in charge of the commercial department
Clarification of internal and external requirements.
Quoting preparation based on team inputs / afterwards: customer presentation
Customization of quoting in agreement with the customer and team.

Commercial

White paper application

Advance comp. list
Advance CAPEX
Quotation review

Master plan draft

Kick-off meeting
Financial model
Cost Plant
Methods Develop-
estim. Eng.
lab ment

Purcha
PM
-sing

Quality

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PM Phases
Quoting

Quotation review Advance comp. list Master plan draft Advance CAPEX Financial model

To support team to To get information in To have a master List of tools, dies and Approved one (data and
secure all basic data in advance of all the checklist of program equipment used for percentages) for
order to provide optimal purchased components / activities / work financial model and CER/RFA submission
conditions for the raw material (new and packages to be used as CER/RFA submission. and for white paper
quotation creation before current) to order them in basis to create a Leader: Methods lab. application information
starting a program. advance and not to wait program timing. Leader: Leader: Commercial
Leader: Commercial until the prints are Program Management. department.
department. analyzed and BOM's are
set up. Leader:
Commercial department
& customer.

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PM Phases
Quoting

White paper application Kick-off meeting

To officialize an awarded To officially kick-off the

customer program program with the
summarizing the basic assigned plant and
information and signed- assure the program is
off by top management in communicated at all
order to start a program levels.
officially and assure that Leader: Commercial
every key member is department.
informed. Once this
document is submitted
by commercial and
approved by top
management, the
program must be
incorporated into the
Program Register. All
fields in the Program
Register must be filled
out.
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PM Phases
Quoting
Commercial department leads team and collects all necessary information for the quotation preparation and
negotiation – based on cooperation with the other departments.
Quoting
• Start: Decision to quote a new business through the “Quotation review” form.
• End: White paper application approved & kick-off meeting.

• Inform the team early about the new business and start officially the quoting phase.
• To collect the necessary data (regarding planning of milestones & costs).
Tasks
• Prepare quotation with the team approved inputs.
commercial
• Prepare rough planning (timing with support of PM, costs, requirements).
leader • Ensure updated documentations.
• Submit white paper application for approval and prepare the kick-off meeting.

• Quotation review
• Advance components list
• Advance CAPEX
Final • Financial model
documentation • Master plan draft
• White paper application
• Kick-off meeting = Gate Review 0

The quote can only be as good as the information provided by all the departments! Therefore, all data should be
investigated intensively & detailed – agreed in team.
Important The Whitepaper application must be provided before starting the planning phase, possibly with not finally
negotiated data. If at this stage the official business award is not available – the “Go” from top management is
necessary. After all the documentation is provided, the program leadership is transferred to Program Management.
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PM Phases
Planning

GR3 GR4 GR5

Planning
Ensure all necessary preparations for the project realization.
Establish a consequent change management.

Initiate change mgmt.

Master plan detailed

Submit CER/RFA
Detailing of

Start CER/RFA
project planning
• Project plan
• Cost plan
• Resource
planning

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PM Phases
Planning

Start CAPEX Master plan detailed Initiate change mgmt. Submit CAPEX

Current CER / RFA To have a master To keep every change in Current CER / RFA
process performed early checklist of program the program ready in the process performed early
on time at the very activities / work latest version in order to on time at the very
beginning of the packages to be used as meet program targets beginning of the
program. Leader: basis to create a regarding program and program. Leader:
Program Management. program timing. Leader: product costs (and as a Program Management.
Program Management. base for a consistent and
reliable performance in
relation to the customer).
Leader: Program
Management supported
by commercial
department.

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26
PM Phases
Planning
Initiate change management

• Everyone involved in the project is allowed to draw up ECPs.

ECP • Provision of all information necessary for the evaluation.
creation

• Evaluation of the change by the affected departments.

ECP
evaluation

• Basis for calculation and approval of the change.

ECP
release

• First step: realization in drawings and parts lists.

ECP • After distribution of changed documents realization in departments
realization

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PM Phases
Planning
Program Management department leads team to develop the master plan in detail.
• Start: after white paper application approved & kick-off meeting.
Planning
• End: CER&RFA submission

• Coordination of CER / RFA creation and submission with inputs from the quotation phase.
• Definition of prototype quantities.
Tasks program
• Detailed planning - Program plan based on the master plan
leader - Cost and resource planning
• Install change management (to avoid risk of loss).

• CER/RFA.

• Detailed program plan.

Final
documentation
• Engineering change in program document for every change during the program life.

• Gate Review 1

Basis for the program plan creation is the PKC master plan.
In order to meet program targets regarding program and product costs (and as a base for a consistent and reliable
Important
performance in relation to the customer) it is essential to always keep every change request ready in latest version
– complete and reproducible!
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PM Phases
Prototyping

GR3 GR4 GR5

Prototyping
Systematic development and selection of constructive solutions.
Further development of already created conceptual drafts up to final release.

3D 2D

Technical review end

Design review start

Single part status

DFMEA
DVP&R
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PM Phases
Prototyping

Design review start DFMEA DVP&R Technical review end Single part status

To track design status To start and keep To start and keep To track design status Second page of advance
and release. Leader: DFMEA updated. updated DVP&R and release. Leader: components list to track
Development Leader: Development Leader: Development Development the status of each
department. department. department department. component: MAPS,
PLEX, exception, PO,
ETA,… Leader: Program
management.

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PM Phases
Prototyping
Product concept realization and refinement (in drawings & BOMs) up to the product release (parallel: building of
corresponding prototypes).
Prototyping
• Start: after design review start (soonest during quoting phase).
• End: after technical review end & release.

• Organization of design reviews.

Tasks program • Start raw material tracking for prototypes.
leader • Organization of technical review & release.
• Update program plan.

• Component engineering technical review concurrence.

• Design FMEA.
Final • DVP&R.
documentation • Single part status.
• Gate Review 2.

Only intensive team work between R&D, prototype shop, manufacturing engineering regarding the feasibility
Important
studies and FMEA activities leads to a successful phase completion (special characteristics to be kept in mind).

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PM Phases
Line / Process definition

GR3 GR4 GR5

Line / Process definition

Securing series conditions for pre series based on mode line and engineering best
practices. This phase is characterized by high complexity for large number of activities
carried out in several departments. A consequent consideration of the demands and an
active coordination in the team is imperative.

Initial samples approval

Equipment release
Methods Lab -16 steps

Line pre-release
Line review
PFMEA
Model line Mfg System

Engineering & QC Best Practices

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PM Phases
Line / Process definition

Initial samples approval Line review PFMEA Equipment release Line pre-release

To assure samples To track manufacturing To start and keep To track the release To track manufacturing
availability and approval. line status & release. PFMEA updated. Leader: status of every involved line status & release.
Leader: Quality Leader: Methods lab Plant engineering machinery, tool,… Leader: Methods lab
department department. Same department. Leader: methods lab department. Same
document as line release department, quality document as line release
but in a different stage. department & plant but in a different stage.
engineering department.

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PM Phases
Line / Process definition
Securing availability of parts, equipment and production documents.
Line / Process • Start: after start of the planning phase
definition • End: after availability of the complete equipment, tools, dies,… and of all production documents for pilot run.

• Ensuring an updated single part status (progress, deadlines etc.)

• Monthly cycle CAPEX submission and assurance of PLEX PO creation for RAS approval.
Tasks program
• Ensuring that the model line principles are deployed by phase.
leader • Ensuring that the applicable engineering best practices are deployed by phase.
• Update program plan.

• Single part status.

• Initial samples approval.
• Process FMEA
Final • Line review / Line pre-release. Same document as line release but in a different stage.
documentation • Model line audit.
• Engineering best practices audit.
• Gate Review 3

At the end of this phase all single parts have to be released. The line must be pre-released, just missing the R@R
Important
and full PPAP approval.

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PM Phases
Pre-production

GR3 GR4 GR5

Pre-production
Securing process capability, all releases & corresponding process optimizations.

Securing process capability

• Complete equipment available
• Parts out of tool / out of process
•

PPAP approved
Train personnel

Line release
R@R
Initial sample releases
• Tool made sub assemblies and complete finished goods.

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PM Phases
Pre-production

R@R PPAP approved Line release

Capacity verification Full PPAP customer To track manufacturing

through R@R exercises. approval. line status & release.
Leader: Methods lab Leader: Quality Leader: Methods lab
department department department.

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PM Phases
Pre-production
Securing process capability. Release of initial samples of tool-made parts (internal & external) and optimize
devices
Pre-production
• Start: after line pre-release
• End: line release.

• Ensure that R@R exercises are scheduled.

Tasks program
• Ensure full PPAP release by customer.
leader
• Ensure line release.

• R@R documents.

• PPAP approved.
Final
documentation • Line release document.

• Gate Review 4.

Important At the end of this phase trainings for production employees / series conditions have to be intensified!

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PM Phases
Ramp-up

GR3 GR4 GR5

Ramp-up
Optimization of the process quality up to relief of program manager and team

Lessons learned
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PM Phases
Ramp-up

Lessons learned

Detect the main issues

during the program life
and update the data
base with a systematic
view in order to avoid
repetitive issues to
happen in future projects.

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PM Phases
Ramp-up

Start up production – including process optimization

Ramp-up • Start: after line release
• End: GR5 presentation

• Planning of activities for further cost savings.

Tasks program
• Complete program documentation
leader
• Carry out lessons learned meeting.

• Lessons learned database updated.

Final
documentation • Gate Review 5

Important Latest 90 days after customer SOP the project should be finalized.

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PMH
Content

1. Introduction

2. Program leader

3. Program vs. engineering change criteria

4. PM Phases

5. Annex

41
41
Annex
Program Management Handbook location / workspace

2 Click to open the sheet

1 Click to open Workspace

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Annex
Program Management Handbook sheet / documents

• On this sheet the Program Management Handbook is stored together with other documents related to the different
processes.

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PMH
Content

1. Introduction

2. Program leader

3. Program vs. engineering change criteria

4. PM Phases

5. Annex

44
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