EBSC Value Drivers for Quality - Chrysler

Supplier Quality Metrics
Monthly Detail Report
Quarterly Supplier Scorecard
Effective July 1, 2010
EBSC-SQ@chrysler.com (Supplier Mailbox)
SQE/Plant Questions:
Janet.Harthen@chrysler.com
jh182
T/L: 722-1541
1

Supplier Scorecards under EBSC
• Monthly Detail Report a source of data for the
Quarterly Supplier Scorecard under EBSC (External
Balance Scorecard)
• Quarterly report is reviewed in supplier meetings
and is one source of consideration for future
business (bid list, source hold)
• Displays data on Division/Company Roll-up and
Manufacturing Location basis
• Sponsored by Purchasing rather than SQ
• SQ supports internal and external users regarding
SQ data displayed on the Monthly and Quarterly
Reports
2

Supplier Quarterly Score Card
3
5 Equal Value Drivers
Delivery
Quality
Cost
20%
20%
20%
20%
20%
Product Development
Process
NCT -10%
Warranty – 10%
Partnership
Advance Quality
Planning - 20%

Sample Monthly Detail Report
4

Why You Need to Know About This Process
• If you are an SQE or Plant Current Quality you need to
understand the importance Chrysler attaches to supplier
metrics
• SQEs are the front line for supplier questions
• SQEs are considered subject matter experts in the
parts/processes/materials in their deck code
• Suppliers will ask you questions about their scorecard
• The Quarterly Scorecard will be discussed in supplier
reviews. You need to know how your suppliers are
performing and where they need to improve
• Numerous supplier scorecard metrics also correspond to
IBSC (Internal Balance Scorecard). IBSC is your
personal scorecard
5

Where Can You Find Supplier
Scorecards under EBSC?
6

Finding EBSC in GPSIS
7

Monthly Detail Report
8

Select Production Parts
9

Advance Quality Planning
AQP
10

Advanced Quality Planning
The AQP measure is a percentage of required
responses submitted to CQMS before the
appropriate due date.
# submitted required responses
# responses required
Target is 100% of responses submitted on time
11

AQP Weights / Scoring for 2010
Category
Category 1
(IRE)
Category 2
(Promise
and Actual
Dates)
Category 3
Category 4
Category 5
(PPAP
Promise
Dates)
12
Default
Weights
33%
34%
33%
Due Description
IRE Task Due Date is in
Current Month
Initial Risk Evaluation (IRE)
D1, C, B, A Product Validation Testing (PVT)
D1, C, B, A Production Demonstration Run (PDR)
D1, C, B, A
N/A - Category available at a future date.
N/A - Category available at a future date.
PPAP Promise Date - Dims & Labs (Dimensional
Test & Material / Functional Requirements)

AQP IBSC/EBSC
Weights and Scoring
Effective – 4 th Quarter 2010
Scorecard Weights Scoring Milestones Titles Resp
Category 1 20% Active Plan Create date + 14 days Initial Risk Evaluation (IRE) SQE
Category 2 20%
Category 3 20%
Category 4 20%
Gate Date Legend
(CPCP/CDS):
S0 SOF = D1
VP/S1 SOF = C
PVP/S2 SOF = B
V1 SOF = A
Gate D1, C, B, A with D1 being the required gate for
Promise or Actual Date
Gate C, B, A with C being the required gate for
Promise or Actual Date
Gate C, B, A with B being the required gate for
Promise or Actual Date.
Gate C, B, A with C being the required gate for
Promise or Actual Date
Production Demonstration Run (PDR) Sup
*Gage Repeatability & Reproducibility Sup
*Dimensional Capability Sup
*Parts Inspections Standard Draft (Part I/S(d)) SQ
CQMS create date + 8 wks *Process Failure Mode & Effects Analysis (PFMEA) Sup
Gate C, B, A
with C being the required gate
Category 5 20% Gate D1, C, B, A for Promise or Actual Dates
International Material Data System (IMDS) Sup
PPAP - Dim & Lab
Sup
(L)
SQE
(M/H)
* Required Flag:
Only required if flag is set by Product
Team SQ in CQMS (based on parts
chosen by Manufacturing for Part I/S)
Effective 4 th Quarter 2010

Metric Summary
Metric IBSC EBSC KPI
PIS
Part Inspection Standard)
Key Performance
Indicator
Goals
AQP X X X
IRE X X
PDR X X X
80% by S2
PPAP X X X
100% by V1 + 180
IMDS X X
PFMEA X X
X X
High Risk Parts Only
Gage R&R X X High Risk Parts Only
Dim. Cap. X X High Risk Parts Only
X
80% by S2
X
100% by V1 + 180

AQP Supplier BSC - Web Reports
Suppliers need to request access to the “AQP
Supplier Reports” link from their Security
Administrator. The link is located under the
Applications tab in the Chrysler portal. It will
help you understand your AQP score.
15

AQP Supplier Web Reports
5 Reports
Including Supplier Parts To Do List
16

AQP Supplier Reports
17

AQP Supplier Reports
18

AQP Supplier Parts To Do List
19

Confirming NCT Ticket Scores
NCT Ticket Score
Calculation
20

Non Conformance Tracking Measure
• Nonconformance Tracking System is
source system
• NC Tickets
– Measures frequency of nonconformance
material
– Only closed tickets are counted
21

Non-Conforming Material (Tickets)
• All non-conforming tickets for the rolling 6 months are
adjusted in the YTD column on a monthly basis
• Adjustments:
– Resolved disputed tickets (possible NC quantity or defect code)
– Voided or cancelled tickets
• Defect Codes that do not count against suppliers
– NPNP – Notice of Shipment of Potential Non-Conforming Parts
– NPCO – No Parts Cost Only
– DCC – Directed Consigned Component
– DCNC – Directed Component Non-Conformance
22

NCT Ticket FFR Calculation
C= Current = 8
T = Target = 4
Formula: (1- 6*(C-T)/(T+100) ) *100
[1-6 * (8-4)/( 4+100)] *100
[1-6 * 4/104] *100
[1-6*.384615]*100
[1-.230769] *100
=.769231*100
= 76.9
= 77 % FFR
23

Best in Class Definition
NC-Ticket uses a Best-In-Class (BIC)
methodology to determine the target for
each 4 digit commodity code.
Suppliers that ship the same local
commodity code are grouped together and
the best performance is used to determine
the 2010 target for all suppliers that ship
that commodity.
24

Choosing BIC for Tickets
Suppliers in
Local code
00AA Receipts
Those under the
20% floor are
eliminated from
participating
from BIC
Suppliers able
to
participate
in BIC
Supplier A 500 500 500
Supplier B 660 660 660
Supplier C 25 25
Supplier D 10 10
Supplier E 15 15
Supplier F 85 85 85
Supplier G 32 32
Average 189.57
20%
37.91
BIC Floor = (average of receipts for local commodity code)*0.20
25

Best in Class Target Definition
Target setting method for Non-Conforming Material - NC Tickets
NC Tickets Target = 4 x .90 = 3.6
Tickets
12345 Supplier A 6
15542 Supplier B 12
16899 Supplier F 4
12357 Supplier C
12286 Supplier D
65864 Supplier E
58692 Supplier G
Includes a 10%
improvement
over BIC
26

NCT Rolling 6 Months
27

NCT Rolling 6 Months
28

NCT 6 Month Summary
29

NCT Rolling 6 Month Detail
30

Rolling 6 Month Detail by Part
31

Ticket Details by Part
32

NCT Worksheet Inquiry
33

Your IBSC
Current Quality
• Yardholds
• CSA Metric (Customer Satisfaction Audit
Advance Quality
• AQP Metric
Regional Sales Offices (RSO)
• NCT Metric
34

Questions and Answers
35