A viable Solution to track and report Supplier Performance for Visual Enterprise: Manufacturing and Quality Copyright © 2007 – 2013 VisualHelp.net. All rights reserved.

 Using tactical approach S.M.A.R.T  S pecific  M easurable  A ttainable  R elevant  T ime-based TOMPKINS ASSOCIATES – PERFORMANCE METRICS IN SUPPLIER RELATIONSHIP MANAGEMENT

 Steps to follow to create a viable program  Identify Specific areas of impact in Operations where improvement will make the difference  Performance Metrics shared with suppliers and recorded in a Report Card and monitored  Set reasonable Goals. Not unreasonable expectations to be set on performance metrics  Choose results that will provide a recognizable value. Use KPI’s (Key Performance Indicators)  Grade and promote Suppliers towards a certification  We used the SMART guideline to create the tool to support your program TOMPKINS ASSOCIATES – PERFORMANCE METRICS IN SUPPLIER RELATIONSHIP MANAGEMENT

 DELIVERY METRIC  Delivery Rating Points (configurable score) from VM  Configurable Global time frame for early/late deliveries  Configurable exceptions time frames per Supplier  Configurable on/off for non-deliveries  Configurable use of Desired Rec Date or Promised Date  Configurable metric calculation out of counts of units or lines delivered on-time or late

 QUALITY METRIC  Quality Rating Points (configurable score) from VQ Choose from two configurations  Rejection unit count ratio NCMs/Inspected Lots (default), OR  AOQL calculation (if having Inspection Plus software ad-on sold separately)

 LEADTIME METRIC  Leadtime Rating Points (configurable score) from VM  Lead time proximity calculated from lead time parameter in Part Maintenance against receipt date from original PO release (per line)  Configurable weigh of calculated performance for Supplier Report Card  Optional in addition to Delivery Metric

 PRICING METRIC  Pricing Rating Points (configurable score) from VM  Pricing proximity calculated from standard cost in Part Maintenance PO line price.  Configurable weigh of calculated performance for Supplier Report Card  Optional in addition to Other Metrics

 CAPA PERFORMANCE  CAPA Performance (Configurable score) from VQ  Calculates metric based on SCAR issued quality records and response times.  Points given if no problems reported during evaluation period.  Configurable weigh of calculated performance for Supplier Report Card  SCAR delinquency minus points are also configurable  Optional in addition to all Other Metrics

 DOCUMENTATION PERFORMANCE  DOC Performance (Configurable score) from VQ  Calculates metric based on proper recording of certs during inspections  Points given if no problems reported during evaluation period.  Configurable weigh of calculated performance for Supplier Report Card  First Article minus points if revoked (if having the Incoming Plus program sold separately)  Optional in addition to all Other Metrics

Configuration is dynamic and automatically changes the report and alters the calculation formulas.

* Macros and workflows are available separately

Uses existing Ratings area in VQ’s Supplier Module

All reports are installed as Quick Prints and My Reports in VQ’s Supplier Module

* Versions 6.4x and up. For earlier versions a Visual Macro can be used instead. This is an optional component and sells separately

 Base Application (Product & Reports Only)  Sqlbase version$ 3,  Sqlserver version (full featured)$ 3, (per site)  Oracle version (full featured)$ 4, (per site)  Installation, training and basic tailoring *  One day consulting on/off site$ 1,  Add-ons (Optional for AVL Control)  Base Visual Workflow$ 1,  Base Visual Macro$ 1,  Get a custom quote right for your business  * Includes basicmods/business adaptations that can be made the rest of the day after install and training. Additional days might be needed.

 First Install “as is”  Install software and reports  Custom tables and views are created in VQ database  First Pass  Select vendors sampler for testing  Verify data, open discussion on metric configuration  Configuration and Training  Configure Rating System  Second pass using Sampler vendors  Final Testing  Final round – Check report cards and detail reports

 Introduce Supplier Web Portal Interface module  Suppliers will log in and monitor their performance results as posted.  Suppliers to provide on-line feedback and respond to Surveys and SCARS issued.  Automatic generation of improvement tasks based on achieved scores and ratings  Predefined tasks are generated and assigned to owner buyers in VQ TO DO’s and VM Tasks using Project.  Portability to other ERP and Quality Systems  Break in modules to be able to interface with other ERP and Quality systems  Adding Executive Dashboard for KPI’s