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