SCHEDULE SHARING TRAINING
Supplier Rating
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Contents:
Overview
Motiss Administrator
Utilities
Messages
Weekly / Daily Schedule Sharing
Two-Way Planning
Manufacturing Item Number
Service Level
Material Quality
Supplier Rating
Schedule Sharing Training
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Supplier Rating Sub-Menu
This sub-menu shows the Supplier Monthly Report Card for any supplier currently using Schedule Sharing and/or Purchased Material Quality System
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The Monthly Report Card can be broken down into:
Service Level (Stock outs);
Inventory Turns;
Quality (Defects, Opportunities, Sigma).
Supplier Rating – Monthly Report Card
Get new screen shot re new 2 way metric
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Supplier Rating – Understanding Data
Components Weighting Description
Delivery 25% Stock outs
Inventory Turns 15% Actual x Goal Turns
Quality 35% Expressed in PPM
Cost Index 25% % Savings x October Base Cost
Inventory Turns
Cost
2nd Monday following Motorola’s monthly close
Supplier Total Index
Quality
Delivery
Facility
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IMPORTANT!!!
Effective July 2004, The Supplier Rating will be incorporating the performance of Two-Way Commits. The data on Responsiveness and Timeless will be captured during the month of July and the first report will be available in Schedule Sharing at the beginning of August.
The New Elements/Weighting will be:
30% Material Quality
20% Stock Outs
20% Cost Savings
20% Two-Way Commitments
15% - Commitment provided
5% - Commitment provided by deadline
10% Inventory Turns
This training material will be updated as soon as released in Motiss.
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Index Table
PPM
SVC
INV
SVGS
<
1,000,000
%
%
+%
%
%
+%
308,000
%
%
+%
66,811
%
%
%
6,210
%
%
%
233
%
%
%
3
%
%
%
501,000
INDEX
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Supplier Rating – Stock Out (Delivery)
MONTH
OPPORTUNITIES
STK OUTS
WEEK 1
80
2
WEEK 2
90
0
WEEK 3
91
2
WEEK 4
99
6
TTL
360
10
STOCK OUTS = %
INDEX =
PPM
SVC
INV
SVGS
<
1,000,000
%
%
+%
%
%
+%
308,000
%
%
+%
66,811
%
%
%
6,210
%
%
%
233
%
%
%
3
%
%
%
501,000
INDEX
*L = NV<.4(BL+CW)
What is stock out?
What is Stock Out Index?
A rating number used to measure a supplier performance relative to delivery service level.
Each Week:
Total Stock outs
Total Opportunities
Monthly add up
Calculation:
Stock out % = (Stock out / Stock out opportunities) * 100
Compute Index (Look up Table)
Example:
How is it calculated?
The total number of parts a supplier has in SS in a given rating month
What is stock out opportunities?
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Service Level Violation & Correction
Where the data come from?
Exceptions:
Parts on Schedule Sharing for less than 4 weeks
A facility fails to send data to SS in a given week
A facility reprocesses the SS extract and stock outs are refreshed
Important!
Buyers can remove inappropriate stock in same week
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Supplier Rating – Inventory Turns
TURNS = 81%
INDEX =
(((13WK AVG RQMTS * 52) + BL) * UNIT PRICE) / AVAILABLE INVENTORY * UNIT PRICE)
What is Actual Turn?
What is Turns Index?
A rating number used to measure a supplier performance relative to inventory level.
Each Month
Calculation:
Turns % = Actual Turns / Turns Goal
Compute Index (Look up Table)
Example:
How is it calculated?
ACTUAL TURNS =
TURNS GOAL =
PERFORMANCE % = / = 81%
(((13WK AVG RQMTS * 52) + BL) * UNIT PRICE) / (((MIN QTY + MAX QTY) / 2) * UNIT PRICE)
What is Goal Turns?
PPM
SVC
INV
SVGS
<
1,000,000
%
%
+%
%
%
+%
308,000
%
%
+%
66,811
%
%
%
6,210
%
%
%
233
%
%
%
3
%
%
%
501,000
INDEX
What is Target Inventory?
((MIN INVENTORY QTY + MAX INVENTORY QTY / 2) + BACKLOG)
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Supplier Rating – Inventory Turns
Example Detail:
P/N
(13 WK+BKLOG)
UNIT $
((13WK * 52)+52)+BL))$
AVAIL
INV
INV $
MIN
QTY
MAX
QTY
TARGET
QTY
TARGET $
Part 1
50
.50
$1,300
280
$140
100
300
200
$100
Part 2
25
$2,600
50
$100
50
1
50
100
$200
Part 3
50
$2,600
500
$500
200
400
300
$300
$6,500
$740
$600
ACTUAL TURNS = ($6500 /$740) =>
TURNS GOAL = ($6500 / $600) =>
SUPPLIER PERFORMANCE % = ( / ) => 81%
SUPPLIER PERFORMANCE INDEX =
PPM
SVC
INV
SVGS
<
1,000,000
%
%
+%
%
%
+%
308,000
%
%
+%
66,811
%
%
%
6,210
%
%
%
233
%
%
%
3
%
%
%
501,000
INDEX
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Supplier Rating – Quality
PPM = 417
INDEX =
PPM
SVC
INV
SVGS
<
1,000,000
%
%
+%
%
%
+%
308,000
%
%
+%
66,811
%
%
%
6,210
%
%
%
233
%
%
%
3
%
%
%
501,000
INDEX
Total Defects – total qty of supplier responsible defective units reported against a supplier in a given rating month
Defect Opportunities – (annual receipts / 52) * 4 or 5 weeks in the given rating month
Quality sigma – defect PPM converted to a point on the Sigma curve
Quality Index – a rating number used to measure a suppliers performance relative to material quality
Definitions:
What is Quality Index?
A rating number used to measure a supplier performance relative to material quality.
Example:
How is it calculated?
Each Week:
Total Defects
Total Opportunities
Monthly add up
Calculation:
PPM = Defects / Opportunities) * 1000000
Compute Index (Look up Table)
MONTH
OPPORTUNITIES
DEFECTS
WEEK 1
600
0
WEEK 2
600
1
WEEK 3
600
0
WEEK 4
600
0
TTL
2400
1
Example:
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From where the data come from?
Quality data is under CTE responsibility
Supplier Rating – Quality
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Supplier Rating – Cost
The Base Cost is the Contract Price of October cycle
The Actual Cost is the receipt cost of the month
Where the data come from?
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Supplier Rating – Monthly Report Card
Rating Category Weighting
Stock Out (Delivery) 25%
Inventory Turns 15%
Quality 35%
Cost 25%
100%
How is it calculated?
Each Month
(2nd. Monday after Accounting Closing Month)
Compute overall index
Calculation:
(STK OUTS INDEX) + (TURNS INDEX) + (QUALITY INDEX)+(COST) / 10
Example:
Example:
* + * + * + *.95 / 10
+ + + / 10
=
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