Supplier Black Belt Program Contributes to Quality Gains

Black Belt is a structured, disciplined, statistical approach to problem solving and reduction in variation. It is used in all phases of the vehicle development, production and customer satisfaction processes. Under the system, experts from multiple disciplines converge on a problem and work together to identify its cause and correct it, closing the project. These experts, called "Green Belts," "Black Belts," and "Master Black Belts," are certified after going through extensive hands-on training and application.

"Our suppliers provide about 70-percent of the components in our vehicles," said Stephen Walukas, Vice President of Supplier Quality, Chrysler Group. "They have played a pivotal role in Chrysler Group's overall quality improvements. The Black Belt program standardizes how we approach problem solving throughout the extended enterprise so that we can all 'speak the same language.' It is a part of our move towards performance-based cooperation with suppliers."

Chrysler Group's own use of the Black Belt program has enabled the company to avoid over $100 million dollars a year in costs since its inception in 1999, and the company is now closing one project every day.

Suppliers of critical components are participating in the program. So far, those suppliers have closed 22 projects which have led to cost avoidance and improved quality for the suppliers.

Chrysler Group will enroll an additional 40 suppliers in the Black Belt program next year, and five have already confirmed participation. While Chrysler Group pays for most of the training, suppliers realize internal cost savings, and both benefit from improved quality.

"Black Belt has added another dimension to our ability to problem-solve processes related to manufacturing," said Roberts Abele, Director of Quality, North America, Siemens VDO Automotive. "In a field like automotive electronics, where 80 percent of our product portfolio transitions every two to three years, we have to execute our new product launches flawlessly, and Black Belt has been a welcome addition to our quality toolbox to solve those complex technical issues."

"At Bosch, we always strive for 'zero defects,'" said Joseph Krall, Vice President, Quality and Continuous Improvement, Robert Bosch Corporation, Chassis Division. "In the case where we do have a quality issue, we follow and apply a number of proven quality methods -- including Black Belt principles -- to identify defects at an early stage. Working with our customers at the Chrysler Group, we are better able to implement these principles and correct issues as quickly as possible which reduces costs to both Bosch and Chrysler."

Along with Black Belt training, Chrysler Group offers 19 quality-related courses for suppliers. Over 4,750 supplier representatives have attended training since the fourth quarter of 2002, totaling over 21,000 total training hours.

Chrysler Group's overall quality improvements are being reflected in some key indicators. Chrysler Group improved for the thirteenth consecutive year in the 2003 J.D. Power & Associates Initial Quality Survey (IQS). For the fourth consecutive year, Chrysler Group continued to be the domestic manufacturer with fewest problems, as rated by Consumer Reports.

The Black Belt program is only one of the tools being used at the Chrysler Group to improve quality. Enhanced durability testing is a part of the Chrysler Group CDS/Quality Gates process at the product development level. And flexible manufacturing strategies are improving quality at the manufacturing level.

Chrysler Group purchases automotive components from over 850 top parent companies at more than 2000 locations in more than 20 countries.