Ship-To-Use

Overview

Great Dane has instituted a Ship-to-Use program to reduce the problems associated with receiving nonconforming product from Suppliers, while minimizing Receiving Inspection and speeding up the process of moving product to production. 

When Used

Great Dane administers the Ship-to-Use program on a product-by-product basis. 

Applicability

Ship-to-Use applies to all material and components purchased for use in full-volume, released products at all Great Dane locations.

Ship-to-Use does not include pre-released parts, samples, prototypes, pilot fabrication runs, First Articles for new tooling or processes, and other low-volume applications. 

Ship-To-Use Requirements

To be considered for Ship-to-Use the product must meet the following requirements:

• The Supplier must be a Great Dane Approved Supplier, if the material, part or assembly is designated as having a significant impact to form, fit, function or appearance by a Great Dane SQE (or Quality designee).
• The most recent five consecutive lots received must have passed Receiving Inspection.
• The part must have no significant outstanding Lean Alerts as determined by the SQE (or Quality designee). 

Compliance Audits

Great Dane may audit the Supplier for compliance to the Supplier’s Control Plan and may audit the Supplier’s Quality System. Any open issues must be resolved, including drawing/specification dimensioning and tolerances, process capability, and open Lean Alerts requiring Supplier action. 

Handling

When received by Great Dane, Ship-to-Use material is moved directly into production, bypassing Receiving Inspection. 

Ship-To-Use Suspension

When Suspended

The Supplier’s Ship-to-Use status is put on suspension when any of the following conditions occur:

• The part fails Receiving Inspection or is deemed nonconforming during manufacture for a lot or an ad hoc lot sampling.
• A Supplier-caused Lean Alert is initiated for the part.
• The Supplier fails a Quality System Audit.
• An audit shows the Supplier is not following their approved Control Plan. 

Process

The suspension process is as follows:

1. Great Dane notifies the Supplier that a Supplier’s Ship-to-Use status is put on suspension.
2. Great Dane issues a Lean Alert (if a Lean Alert has not already been issued) to the Supplier and works with the Supplier to correct the problem.
3. Suspension continues until Great Dane is satisfied that the “root cause” of the problem has been identified and corrected, the corrective action has been implemented and is effective, and the Lean Alert requiring Supplier action is closed.
4. Implementation may be verified at the Supplier’s facility, or by documentation sent by the Supplier, and normally includes confirmation by Receiving Inspection of acceptable lots. 

Return of Good Standing

When the Supplier’s Ship-to-Use status is returned to good standing, Great Dane notifies the Supplier that the Supplier has been returned to Ship-to-Use status. 

Discontinuation of Ship-To-Use Status

If a Supplier does not implement effective corrective action, or if the Supplier is put on suspension repeatedly, Great Dane determines whether the Supplier’s Ship-to-Use status should be discontinued. Any expenses related to added inspections at Great Dane will be passed on to the supplier as a chargeback. This decision may also include a determination to divert the business to an alternate Supplier.