All the employee of Shanghai MAHLE Thermal Group:
MAHLE Thermal Group requests globally all the locations that must do the following:
Any product cost optimization requires an Engineering Change Request(ECR) and a fair risk assessment,
Strengthen preventive quality within the development process,
Changes require 4 eyes principle and manager sign off (cross functional involvement with all changes to insure customer protection and protect ourbusiness),
Inform customers about each and every change,
Make sure that products and processes are always fully validated,
Discussions and agreements with customers should be well documented,
Be faster in processing any quality concerns or issues.
Any process change requires a fair risk assessment and customer information about the changes,
Take care for maintenance,
Stick to control plans,
Improve mindset and awareness.
Besides the quality mind-set program which is runningglobally, in order to improve the financial situation of 2017 and to bring thesituation to the normal state in 2018, Mahle Thermal Group launched a urgentprogram Profitability Improvement Thermal - ProfiT. Firstshort-term actions implemented with immediate effect.
Major counter measures:
Hiring freeze for indirect headcount (exceptions to be approved by Management Board),
Reduction of travel costs by > 30 %,
Reduction of training costs by > 30 %,
Reduction of cost center costs by > 10 %,
No more catering during internal meetings,
Global support and steering committees for specific plants,
Focus on launch management,
Scrap reduction program, also across plants and regions (e.g.condenser),
Optimizing the inventory，SUT -2 day vs.Budget.
No non-contractual price reductions,
Consequent claiming towards customers in terms of material prices or when e.g. volumes are below or above the contracted range,
Past Dues ≤ 4.0%.
2017 SMTS Group is doing the business quite well in China Market, in the fourth quarter we expect quite high market demand. In name of top management, I thank you all for your effort. As a member of MAHLE Thermal Group, SMTS Group will actively implement the spirit of the measures to make more contribution to the group!