1. SUPPLIER RATING PROGRAM
Space & Electronics TRW
Forming Relationships for the Future
SUPPLIER RATING
PROGRAM
WORKING TOWARDS COMMON GOALS, AND
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2. SUPPLY CHAIN MANAGEMENT VISION Forming Relationships for the Future
Space & Electronics TRW
Forming Relationships for the Future
SUPPLY CHAIN
MANAGEMENT VISION
Forming Relationships with key members of our Supplier Base, and allowing TRW to provide products to their customers with a commitment towards the highest levels of quality, through technical excellence, at an affordable cost,
with on-time delivery.
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3. Supplier Rating Program
Space & Electronics TRW
Forming Relationships for the Future
Supplier Rating Program
Approved Manufacturers Directory
Supplier Rating Program
Evaluation of Quality Management
Customer Satisfaction
- Suppliers Report Card
- Subcontracts Report Card
Supplier Quality Performance
Subcontract Quality Performance
Supplier & Subcontracts
Rating System
Performance Level Summary
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4. Approved Manufacturers Directory (AMD)
Space & Electronics TRW
Forming Relationships for the Future
Approved
Manufacturers
Directory (AMD)
Based on TRW’s ISO-9001 Registration, TRW is required to Evaluate, Select, and Control Suppliers or Subcontractors.
TRW requires Suppliers or Subcontractors which will provide deliverable products / materials be approved and listed in TRW’s Approved Manufacturers Directory (AMD).
The AMD is the result of a consolidation of our prior Manufacturers Evaluation & Control Board (MECB), and the Quality Assurance Supplier Directory (QASD) systems. The AMD process is intended to provide a single system for supplier evaluation, selection, and control.
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5. Supplier Rating Program
Space & Electronics TRW
Forming Relationships for the Future
Supplier Rating Program
TRW’s Supplier Rating Program will require Suppliers to participate with TRW in an on-going assessment of the Supplier’s Performance. The Suppliers will be evaluated in three areas:
Quality
Management
Customer
Satisfaction
Gold
Silver
Bronze
Supplier
Performance
Financial
Quality
Schedule
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6. Evaluation of Quality Management
Space & Electronics TRW
Forming Relationships for the Future
Evaluation of Quality Management
The Rating Process will evaluate the Supplier and their Quality Management. This is
accomplished using TRW’s QSA-9000, MIL-I, MIL-Q, or NHB Quality Systems Assessment Checklist.
Quality Management Criteria:
- Must be currently certified to ISO 9001 or ISO 9002 by a third party Registrar, or achieve
continuous (12 months) Gold level performance in Customer Satisfaction and Supplier
Performance areas.
-Must be certified to TRW’s QSA 9000 Quality Program, and meet the Silver Level
performance criteria.
- Currently certified to Mil-I-45208, Mil-Q-9858, or NHB , and meet the Bronze Level
Gold
Silver
Bronze
Definitions:
Minor Nonconformance - Administrative in nature, one-time occurrence; easily correctable.
Major Nonconformance - Directly affects product; systemic in nature. 6
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7. Evaluation of Quality Management (Cont.)
Space & Electronics TRW
Forming Relationships for the Future
Evaluation of Quality Management (Cont.)
ISO Quality Management Assessment
ISO-registered suppliers are rated Gold based on the successful completion of a 3rd Party ISO assessment. This Gold rating is maintained by the successful completion of continual 3rd Party Registrar evaluations.
Unsuccessful 3rd Party re-evaluations require a QSA Quality Processes Assessment. (See below)
QSA Quality Management Assessment
TRW QSA certified suppliers are rated using TRW’s QSA 9000 quality assessment checklist according to the above table. After correction of any documented nonconformance(s), rating improvement will be reflected in the following quarter.
MIL-I, MIL-Q, NHB Quality Management Assessment
Suppliers MIL-I, MIL-Q, NHB approved cannot
obtain a rating greater than bronze. After correction
of any documented nonconformance(s), rating
improvement will be reflected in the following quarter. 7
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8. Customer Satisfaction
Space & Electronics TRW
Forming Relationships for the Future
Customer Satisfaction
Our customers will be provided the opportunity to submit a Quarterly Report Card on the Suppliers/Subcontractors that they are currently doing business with. They will be assessing the following areas:
- Management
- Quality
- Technical
- Schedule
- Financial
These values will compose
a Customer Satisfaction Index
Rating (CSI), which will be
used to assess the Supplier’s
overall certification status.
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9. Customer Satisfaction
Space & Electronics TRW
Forming Relationships for the Future
Customer Satisfaction
Suppliers Report Card
The Report Card will be used to evaluate elements for Customer Satisfaction. The evaluation
is based on a scale of 1 to 5, and is used to assess the Customers view on the Suppliers
commitment on Management, Quality, Technical, Schedule, and Financial. This evaluation
will be used to address areas that are critical to our customers.
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10. Customer Satisfaction Subcontracts Report Card
Space & Electronics TRW
Forming Relationships for the Future
Customer Satisfaction
Subcontracts Report Card
The Report Card will be used to evaluate elements for Customer Satisfaction. The evaluation
is based on a scale of 1 to 5, and is used to assess the Customers view on the Subcontracts
commitment on Management, Quality, Technical, Schedule, and Financial. This evaluation
will be used to address areas that are critical to our customers.
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11. Supplier Quality Performance
Space & Electronics TRW
Forming Relationships for the Future
Supplier Quality Performance
Suppliers will be assessed based on their ability to meet or exceed thresholds that are established in Quality, Schedule and Financial. The defect prevention program that TRW is currently using , is a Six Sigma Defect prevention Program. The program will focus on “0” Rejects and 100% on time Delivery. TRW’s Supplier Rating & Incentive Improvement Program (SRIIP) will be used to assess Financial.
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12. Subcontracts Quality Performance
Space & Electronics TRW
Forming Relationships for the Future
Subcontracts Quality Performance
Subcontractors will be assessed based on their long term ability to meet or exceed Quality, and Schedule goals. Customer Satisfaction Report Card(s) composite scores for the previous twelve (12) months, will be used to determine a Subcontractors’
Quality Performance.
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13. Supplier / Subcontracts Rating System
Space & Electronics TRW
Forming Relationships for the Future
Supplier / Subcontracts Rating System
Gold
Silver
Exceptional Supplier
Performance, clearly exceeds expectations.
Quality Management Score: 0 major, 0-4 minor nonconformances
Quality: % acceptance for Suppliers, and Subcontractors 4.5 or above of 5 points Customer Satisfaction Quality Performance for 12 months.
Schedule: % on time for Suppliers, and Subcontractors >4.5 or above of 5 points Customer Satisfaction Schedule Performance for 12 months.
Financial (SRIIP Score): for Suppliers
Customer Satisfaction
Index: 4.5 or above of 5 total points.
Bronze
Excellent Supplier
Performance, meets or exceeds expectations.
Quality Management Score: 1-2 major, 5-9 minor nonconformances
Quality: 97-94% acceptance
for Suppliers and Subcontractors points Customer Satisfaction Quality Performance for 12 months.
Schedule: 95-91% on time for Suppliers, and Subcontractors points Customer Satisfaction Schedule Performance for 12 months.
Financial (SRIIP Score): for Suppliers
Customer Satisfaction
Index: 3.5 to 4.4, out of 5 total points.
Red
Satisfactory Supplier
Performance,meeting
expectations.
Quality Management Score: 3-4 major, minor nonconformances
Quality: 93-90% acceptance for Suppliers and Subcontractors points Customer Satisfaction Quality Performance for 12 months.
Schedule: 90-85% on time for Suppliers and Subcontractors points Customer Satisfaction Schedule Performance for 12 months.
Financial (SRIIP Score): for Suppliers
Customer Satisfaction
Index: 2.5 to 3.4, out of 5 total points.
Unsatisfactory Supplier Performance,
clearly failing to meet
expectations.
Quality Management Score: > 4 major, > 15 minor nonconformances
Quality: <90 %
acceptance for Suppliers and Subcontractors <2.5 of 5 points Customer Satisfaction Quality Performance for 12 months.
Schedule: <85% on time for Suppliers and Subcontractors <2.5 of 5 points Customer Satisfaction Schedule Performance for 12 months.
Financial (SRIIP Score): < .885 for Suppliers
Customer Satisfaction
Index: Below 2.5 out of 5 total points.
Performance is evaluated according
to four color-coded standards.
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14. Performance Level Summary
Space & Electronics TRW
Forming Relationships for the Future
Performance Level Summary
Quality
Customer
Quality
Schedule
Financial
Mgmt.
Satisfaction
Cert
Supplier Rating
Management,
Process Control
Suppliers/
Period
Suppliers/
Period
Level
& Incentive
Quality, Tech-
Capabilities
Subcontracts
Months
Subcontracts
Month
Improvement
nical
, Schedule,
Program
Financial
Gold
0Maj, 0-4min
100-98/>4.5 12
100-96/>4.5 12
>4.5 of 5
Silver
1-2M, 5-9m
97-94/>3.5 12
95-91/>3.5 12
>3.5 of 5
Bronze
3-4M,10-15
93-90/>2.5 12
90-85/>2.5 12
>2.5 of 5
Red
>4M, >15m
<90/<2.5 12
<85/<2.5 12
<.885
<2.5
Only Suppliers
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15. What could being a TRW Certified Supplier
Space & Electronics TRW
Forming Relationships for the Future
What could being a TRW Certified Supplier
mean to your company?
GOLD
Established Supplier Relationship with TRW
Established Strategic Agreement Alliance.
Supported by a TRW Commodity Team/Product Team
Empowered to perform selected TRW’s Traditional Source Inspections (In-Process, Pre-Caps, Finals)
Product Delivered Direct to Inventory.
Delete In-House Testing Requirements (as appropriate).
Preferred Supplier for Increased Business Opportunities.
Listed in TRW’s Approved Manufacturers Directory (AMD) as a GOLD / Preferred Supplier.
Candidate for TRW’s GOLD Supplier of the Year Award.
SILVER
Candidate for Supplier Relationship with TRW.
Candidate for Strategic Agreement Alliance.
Candidate for assistance from a TRW Commodity Team/Product Team
Candidate for TRW’s Skip Lot Sampling Program
Candidate for deletion of In-House Testing Requirements
Listed in TRW’s Approved Manufacturers Directory (AMD) as a SILVER Supplier.
Candidate for TRW’s SILVER Supplier of the Year Award.
Opportunity to become a TRW GOLD Supplier.
BRONZE
Candidate for continued Supplier Relationship with TRW.
Candidate for Strategic Agreement Alliance.
Candidate for assistance from a TRW Commodity Team/Product Team
Candidate for TRW’s Bronze Supplier of the Year Award.
Listed in TRW’s Approved Manufacturers Directory (AMD) as a Bronze Supplier.
Opportunity to become a TRW SILVER Supplier.
RED
Immediate assessment and plan of action by Commodity Team/ Product Team
Immediate assessment of Active procurements by Management.
Placed on AMD Hold
Supplier not eligible for future placement of procurements.
Candidate for being De-Activated as a TRW Approved Supplier.
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16. Key Contacts Forming Relationships for the Future
Space & Electronics TRW
Forming Relationships for the Future
Key Contacts
For additional information regarding the Supplier Rating
Program, please contact one of the following individuals:
Ivan Kudlacek (Supply Chain Quality)
(310)
Robert Jaco (Supply Chain Quality)
(310)
Gil George (Subcontracts)
(310)
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Rev.11/15/01