1. “Supply Chain Management Handbook” Supplier Selection and Capability Assessment Model IAQG Leader: Christian Buck – Safran Updated: June 2008

2. Supplier Selection and Capability Assessment Model
Objective
To provide a common Model to Select a Supplier and/or Assess the Capability of a Supplier to achieve sustainable On Time & On Quality delivery objectives

3. Common understanding of the scope of Supply Chain (Process)
Whether one performs recurrent deliveries, single shot program, projects or aftermarket customer support services, the general supply chain processes required to deliver to the end customer are the same.
Requirements
Customer
To Customer
Deliverables
Sell
Make
Support
Integrate
& Test
Deliver
Design
Buy
Plan & Manage
Supply Chain :
That collection of Processes which leads to the arrival of the right parts & the right data in the right place at the right time to the right quality standard, through the whole value chain.

4. Mapping : 10 processes + 1 transversal one Titles consistent with 9100 when possible
1. Sales, Master Scheduling & Sequencing
2. Contract requirements flow down (Customer related process)
3. Design and development
4. Suppliers sourcing selection & approval (Purchasing process)
5. Plant, material, skills, capacity planning & scheduling
(Planning of product realisation)
6. Order Management and logistic (Internal/external)
7. Manufacturing and inspection (Production and service provision)
8. Supplier operational management and product validation (Purchasing process)
9. Control of non conformities, corrective and preventive actions
10. Customer Support (Control of service operations)
11. Business Processes Performance Management and Customer Satisfaction Monitoring

5. Processes Titles and contents
1 - Sales, Master scheduling and Sequencing: Balancing and forecasting Medium-Long term customer demand with operational & financial capabilities by optimizing sequence of operations, schedule and resources.
2 - Contract requirements flow down: Managing Review and flow down of contract requirements from the customers, through all functions internally & to suppliers.
3 - Design and development: New product introduction activities impacting supply chain performances including product and process essential characteristics management, changes and obsolescence management.
4 - Supplier sourcing selection & approval: Make or buy process and mapping of the supply chain responsibilities, including partners, suppliers…, Sourcing, Negotiating, & Contracting in line with Make or Buy strategy and Approving suppliers.

6. Processes Titles and contents (continued)
5 - Planning of product realisation (Plant, material, skills, capacity planning and scheduling): Plan & optimize the use of resources and means to meet operations planning at plant level.
6 - Order Management & Logistic (internal & external): Issuing orders, resolving unplanned events & following up till completion including receipt. Collaborative Management of material, services & information to & from the supplier; Optimizing material flow, stock and inventory through the supply chain., up to final customer delivery. Customer property included.
7 - Manufacturing & inspection (Production & service provision): Manufacturing and product integration processes, including inspection.
8 - Supplier operational management and product validation (Purchasing process): Operational monitoring and surveillance of suppliers to ensure purchased products and services meet customer requirements (includes initial product validation). Working with suppliers to continually raise their performance levels (Supplier Development activities when required).

7. Processes Titles and contents (continued)
9 - Control of non conformities, corrective & preventive actions : Non conformance management and root cause analysis process for all business domains. Raising, notifying, deciding and acting to manage and prevent non conformities (product, processes, documentation, delays, etc...).
10 - Customer Support: Supporting the customer to ensure end user satisfaction during "in service" phase (Maintenance & Repair, Spares, Training and Documentation, Operating Data feedback and analysis). This includes when applicable, supporting the customer during the product integration activities, up to delivery to the end user (Entry Into Service).
TRANSVERSAL PROCESS:
11- Business Processes Performance Management and Customer Satisfaction Monitoring: Survey, Consolidation and continual improvement of Supply Chain performance (Internal/External), risk and change management, overall decision process to meet customer satisfaction and business objectives throughout Life cycle

8. Action Plan between supplier and customer
Supplier Assessment
A matrix for each process with :
Five levels of maturity
1: Undefined and not capable
2: Defined and applied, but not 100% efficient or not applied everywhere in the company
3: Defined, applied and effective
4: Predictable
5: Optimised
Four domains :
Process
People & Organisation
Tools & Data
Performances Metrics
Items for Improvement
Action Plan between supplier and customer
Expectation
Supplier
performance

9. Supplier Selection and Capability Assessment Model
Definition and content of the 5 levels :
1: Undefined and not capable (No Process, Methods, Tools and/or inappropriate behaviours)
2: Defined and applied : but not 100% effective or not applied everywhere in the company (capable for low risk products and services)
3: Defined, applied and effective: repeated satisfactory performance capable
4: Predictable : performance of proactive improvements towards planned targets, but not systematically on all processes / areas / products
5: Optimised : best in class, continual improvement fully deployed, involving all stake holders as part of company culture

10. 11 business processes identified in Supplier Selection and Capability Assessment Model
Apply weighting
to each process as appropriate to Product, Customer, Risks, etc…
Supplier assessment for 11 processes
Decision to Select or Not and/or Improvement Action Plan set-up
Other guidelines within Supply Chain Management Handbook may be used to support investigations to complete Improvement Action Plan

11. Concept of Model use
Need to assess supplier capability may not be limited to selection phase. IAQG model may be used at all stages of programme life (to identify risks and areas of improvement/supplier development)
Even if matrices remain the same for each programme phase (selection, development, series, support), content (details) of assessment will differ (e.g; only process & methodology at selection before contract signed, detailed process and check of efficiency & results during development, change and risk management during series,…).
Depth of assessment (from nothing to detailed review) may depend on risks and expectations.
Some business domains may not be assessed for a specific work package, product or service (e.g: Design and Engineering nor required for a pure “built to print” product or Customer Support for a low tier supplier
Expectation level might evolve during programme life (e.g. 2 at supplier selection, 3 during development/industrialisation, 4 at start of series production and ramp up or Entry Into Service): allows to measure maturity and progress.

12. Product Development and Industrialisation
Process Overview
Deep assessment (Check of Process & Results)
New assessment (Change or Problem Management)
Contract signature
Start series production
Entry into Service
Supplier
Selection
Product Development and Industrialisation
Series
Manufacturing
In service
Support
1 Sales, Master Scheduling & Sequencing
2. Contract Requirements and Flow-Down
3. Design and Development
4. Supplier sourcing selection and approval
5. Plant, material, skills, capacity planning & Scheduling
6. Order Management and Logistic (internal/external)
7. Manufacturing
and inspection
8. Supplier Operational Management and product validation
9. Control of non conforming product, corrective and preventive actions
10. Customer
support
11. Business Processes Performance Management and Customer Satisfaction Monitoring

13. Assessment matrices in joined Excel file
Title and Definition of the Business Domain
Content for each level (from 1 to 5) and each parameter (Process, People and Organisation, etc…)
11 sheets, one per business domain

14. Expected capability level
Exemple of results synthesis
(10. Customer support not assessed in this exemple)
Expected capability level
Assessement results 14

15. Exemple of results by area15

16. Exemple of results summary: Processes with Strenghts
11. Business Processes Performance Management and Customer Satisfaction Monitoring
Strength 1
Strenght 2
Strenght 3
2 – Contract requirement flow down
Strength 1
Strenght 2
Strenght 3
9 – Control of non confomities, corrective & preventive actions
Strength 1
Strenght 2
Strenght 3
3 – Design and development
Strength 1
Strenght 2
Strenght 3
7 – Manufacturing and inspection
Strength 1
Strenght 2
Strenght 3 16

17. Exemple of results summary: Processes with Weaknesses
Sales, Master Scheduling and Sequencing
Weakness 1
Weakness 2
Weakness 3
8 – Supplier operational management and product validation
Weakness 1
Weakness 2
Weakness 3
4 – Supply sourcing selection and approval
Weakness 1
Weakness 2
Weakness 3
6 – Order management and logistics
Weakness 1
Weakness 2
Weakness 3
5 – Planning of product realisation
Weakness 1
Weakness 2
Weakness 3 17

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