2000 STARS - Cessna Integrated Supplier Portal · number one supplier of aircraft and related...
Transcript of 2000 STARS - Cessna Integrated Supplier Portal · number one supplier of aircraft and related...
2 Company Confidential
Cessna STARS 2000 Ratings Explanation
In accordance with the Cessna Aircraft Company vision to be the world’s
number one supplier of aircraft and related services in the markets we serve,
the Supplier Tracking And Rating System (STARS) continues to improve. This
improvement is seen in STARS 2000 and in our electronic monitoring and
communication methods.
STARS 2000 sets competitive standards for achieving excellence in the
categories of Quality, Schedule, Reliability, Cost, and Collaboration. Based on
these standards, scores included on your STARS 2000 report reflect Cessna’s
perception of your performance by category for the past 12 month period.
Your Overall company rating is equal to the average of numeric ratings for all
categories rated. Cessna appreciates your efforts to provide products and
services that meet or exceed acceptability standards.
Questions regarding your ratings should be directed to 1) the Cessna
Commodity Team representative designated for the applicable functional
category rating or 2) your Cessna Buyer.
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Cessna STARS 2000 Overview
Cessna STARS consists of 5 Metric Ratings Quality
Factors in Performance (rejects), Impact (SCARs and Disclosure
Letters) and Complexity (Spend/Commodity)
Schedule
Based upon the number of items received designated as “On Time”
Reliability
Based upon the field performance of a supplier’s parts
Cost
Based upon the supplier’s ability to provide market competitive
pricing, desired terms, and procurement automation.
Collaboration
→Based upon participation in program initiatives.
The Overall STARS score is set equal to the
average of the 5 metric scores
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STARS Rating Structure
Rating
Quality Schedule
Reliability Performance
PPM
40%
Impact Complexity
20%
(Based on Total Number of Pieces
Received) SCAR 10% LDR 30%
1 Outstanding
< 100 PPM 0 SCARS
0 Disclosure Letter/LDR Very Low
100% OTD 100%
2 Superior
<1,000 PPM
1 SCAR Low
> 99% OTD >= 98%
3 Acceptable
<5,000 PPM
2 SCARS 1 Disclosure Letter/LDR
Medium
> 98% OTD >= 95%
4 Marginal
<7,500 PPM
3 SCARS High
>95% OTD
>= 92%
5 Unacceptable
>=7,500 PPM
>3 SCARS >1
Disclosure Letter/LDR
Very High <= 95% OTD < 92%
5
STARS Rating Structure
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Rating
Cost Collaboration
Terms 20%
Automation
10%
Overall Value
70%
SOI/VMI/VAS
60%
ASN
10%
Program Contribution
25%
Compliance
5%
1 Outstanding
2%15N90 Yes Deflation
>2% Implemented Yes Yes 90-100%
2 Superior
Net 90
Deflation <2%
Signed
Contract/
Amendment
80-89%
%15N60
3 Acceptable
Net 60
Firm Fixed
Verbal
Commitment
70-79%
%15N45
4 Marginal
Net 45
Cost Sharing
On Opportunity
List 60-69%
%15N30
5 Unacceptable
Net 30 No Inflation No No No <60%
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2000 Quality Metric
Inclusions: Spares Orders
Exclusions: Rework Orders/Repair Orders
Timeframe: Past 12 Months
Reversals: If a part is returned to the supplier for evaluation due to an NC and the supplier finds the part to be a No Fault Found (NFF), then returns the part to Cessna, a Cessna Quality Engineer will evaluate the returned part performance through production. If the part successfully functions through flight, the Quality Engineer will honor the reversal request. If the part fails a second time, the Quality Notification stands as a charge to the supplier.
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QUALITY METRIC CALCULATION
Performance (PPM) = 40% of overall score PPM is calculated as: (# of defectives / # of
receipts)*1,000,000
Impact = 40% of overall score 10% Quantity of SCARS issued
30% Quantity of Disclosure Letters received
Complexity (Spend/Receipts) = 20% of overall score Complexity is calculated by total spend divided by the
total number of parts received
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QUALITY METRIC CALCULATION
STARS
Category Sub-Category
Sub-
Category
Weight
Score Criteria
1 0 SCAR
2 1 SCAR
3 2 SCARs
4 3 SCARs
5 > 3 SCARs
1 0 DL
2
3 1 DL
4
5 > 1 DL
1 < 100
2 < 1,000
3 < 5,000
4 < 7,500
5 > 7,500
1 < $5.00 2 $5.01 – $50.00
3 $50.01 – $500.00
4 $500.01 –$10,000
5 > $10,000
Qu
alit
y
SCAR
(qty of SCARs) 10
Disclosure Letter
(qty of parts ) 30
PPM
(# of defectives/# of
receipts)*1000000
40
Complexity
(Spend/qty recv'd) 20
10
Quality Rating Example
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Supplier STARS Quality Score = 2
• Supplier’s PPM is 1250 = a score of “3” x 40% = 1.2
• Supplier has received 1 SCAR = a score of “2” x 10% = .2
• Supplier has 0 Disclosure Letters = a score of “1” x 30% = 0.3
• Supplier’s Complexity = a score of “3” x 20% = 0.6
Category Value Net Score
PPM 3 1.2
SCAR 2 0.2
Disclosures 1 0.3
Complexity 3 0.6
Combined Quality Score
2 2.3
Combined Quality Score
1 Outstanding = 1-1.5
2 Superior =1.51-2.5
3 Acceptable = 2.51-3.5
4 Marginal = 3.51-4.5
5 Unacceptable
= 4.51-5.0
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Quality Rating Example
• Supplier’s PPM is 750 = a score of “2” x 40% = 0.8
• Supplier has received 2 SCAR = a score of “3” x 10% = .3
• Supplier has 2 Disclosure Letters = a score of “5” x 30% = 1.5
• Supplier’s Complexity = a score of “5” x 20% = 1.0
Category Value Net Score
PPM 2 0.8
SCAR 3 0.3
Disclosures 5 1.5
Complexity 5 1.0
Combined Quality Score
4 3.6
Combined Quality Score
1 Outstanding = 1-1.5
2 Superior =1.51-2.5
3 Acceptable = 2.51-3.5
4 Marginal = 3.51-4.5
5 Unacceptable
= 4.51-5.0
Supplier STARS Quality Score = 4
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2000 Schedule Metric
Inclusions: Spares Orders
Exclusions: Rework Orders, Experimental Orders,
Indirect Purchases, Partial Farm-Out Orders, Value Added Suppliers
Timeframe: Past 12 Months
Categories:
Traditional Purchase Orders
This includes standard purchase orders and auto purchase orders
Min – Max Parts
VMI Parts
Rota-Bin Suppliers
VMI Just-In-Time Suppliers
Blanket Purchase Orders
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2000 Schedule Metric
Cessna uses the concept of a “perfect order” when measuring the
delivery performance of its supply base.
Accordingly, the Cessna STARS Schedule metric measures the
number of pieces against a purchase order line item that are
received on time.
This allows the Supplier to get credit for partial deliveries received on
time as opposed to the entire quantity.
A 7 day tolerance window is used for determining if an order is on
time.
This window is defined as any delivery received between 0 days late
and 7 business days early.
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Schedule Rating Example
Delivery Example
Purchase
Order
Line
item
Scheduled
Delivery Date Qty
Receipt
Date
Receipt
Quantity
On Time
Receipt
45AAAAA 10 1/15/09 100 1/10/09 100 100
45AAAAA 20 2/1/09 200 1/15/09 200 0
45CCCCC 10 4/15/09 500 4/15/09 300 300
45CCCCC 10 4/15/09 500 4/18/09 200 0
45DDDDD 10 8/16/09 10 8/10/09 10 10
45DDDDD 10 9/16/09 200 9/12/09 200 200
45DDDDD 20 9/16/09 200 9/10/09 200 200
45EEEEE 10 11/18/09 10 11/19/09 10 0
45EEEEE 10 12/11/09 10 12/9/9 10 10
• Quantity of PO-Line Items Scheduled for Delivery in past 12 months = 1,730
• Quantity of On-Time Receipts in past 12 months = 810
• Supplier On Time Delivery Score = 810 / 1,730 = 46.8%
• Supplier STARS Schedule Score = 5
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The STARS Schedule Metric calculation compares the scheduled due date and line item quantity on the purchase order with the actual receipt date and pieces received.
If the gate receipt date is later than the scheduled date that line item is considered late for total pieces not received on time.
If the gate receipt date is more than seven manufacturing days before the scheduled date, the line item pieces received are considered early.
2000 Schedule Metric – Traditional Orders
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2000 Schedule Metric – Min-Max
This STARS Schedule Metric calculation for Min-max parts is based upon the current on hand inventory level and the min-max levels set for the part number & plant location.
The evaluation is done at the time of receipt as it relates to min-max range.
If the part quantity received plus on-hand inventory exceeds the Max then the order is considered early.
If on-hand inventory is less than Min at the time of receipt the shipment is considered late.
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2000 Schedule Metric – VMI
VMI Rotabin:
The STARS Schedule Metric Calculation compares the scan date and quantity to the bin delivery date.
If the difference between the dates exceeds five manufacturing days, the order is considered late.
VMI Rotabin parts cannot be evaluated as early.
VMI Avionics:
On site Avionics suppliers are treated like Traditional Purchase Order suppliers.
The only difference is the on-time window has been modified to consider 7 days early and 30 days late to enable just-in-time delivery.
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2000 Schedule Metric – Blanket Orders
Since a blanket purchase order only has the scheduled delivery date set at a point in the future, deliveries against these purchase orders will all be considered as early.
Therefore, the STARS Schedule Metric calculation for blanket purchase orders are handled separately.
All items on a blanket purchase order should have a STAT date set to 12/31/9999.
Any Receipt against a purchase order line item dated 12/31/9999 is considered as an On Time delivery.
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SCHEDULE REVERSALS
Initiation of Reversal: Suppliers: Click on Schedule and the Schedule Summary Report appears. Click on
Schedule Detail and receiving numbers capable of reversal will be highlighted in blue. Click on the desired reversal and the reversal request form appears.
Complete the form and click on “Submit” at the bottom of the form making sure any attachments are included.
The electronic form is received by your Buyer. The Buyer dispositions the reversal request. The Buyer makes the
necessary schedule corrections on ZCSTARS in SAP.
Please Note: 1. The Receiving Report Number is not the PO number. Use the report
number found on the schedule detail found on supplier.cessna.com. 2. The receiving report item number is not the same as the PO line item
number. 3. The Received Date should be the date the shipment was due as
reflected in the schedule detail rather than the date Cessna received the shipment. All change/correction justification should be noted in the Justification for Reversal box only.
4. Corrections can be made up to 90 days after the discrepancy occurred. Afterward, it is up to the Buyer’s discretion to accept reversals requested.
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Reliability Rating
Raw data is gathered by CAMP
Each part number/model installation is a line item in Trend
Each line item is assigned a code (1-12) based on it’s MTBUR value (or Mean Life/B10) and its growth value (+/-)
The total number of “good” coded parts over the total number of parts rated = % parts
Improving the reliability changes the part codes from the “bad” to the “good” and thus improves the rating percentage over time
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Reliability Rating Notes
>= 95% is acceptable and is a 3 in STARS
Number of parts rated ≠ number analyzed
Difference is Code 9 & 12 parts
Also, not all supplier components are rated
MTBUR = 20% lower than MTTF (to account for NFF)
Cessna Reliability Department prioritizes the components to work based on customer satisfaction criteria
Codes 1, 2, 5, 6, 8, 10 are “good” codes
Codes 3, 4, 7, 11 are “bad” codes
Codes 9 & 12 have no impact in STARs
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Good Codes
Code Explanation
1 Above Requirement - Positive Growth Trend
2 Above Requirement - Negative Growth Trend
5 Insufficient Removals Data
6 Below Requirement - Acceptable Growth Trend
8 MTBUR Delay Date and Reliability Growth Rate
10 Above Requirement - Mean Life or B-10 Life
Components are generally above requirement and/or have positive trend
Components that are new to trend (Insufficient Data until 5 installs and >=3 removals)
Components that are being monitored due to corrective action implementation
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Code 8 Explained
Rating is delayed (monitored by Reliability) for 6 mo. due to Corrective Action Implementation
Criteria for RCCA Closure Root cause is understood
Corrective action will bring component above requirement
Engineering changes are complete
Production aircraft serial cut-ins are set (if app)
Business plan is mutually agreed upon by Cessna and supplier
Field plan is understood and scheduled (if needed)
Cessna SB/SL release date is imminent or established
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Other Codes
Below Requirement & Require Corrective Action
Have no impact on Rating
Code Explanation
9 Data excluded from rating Calculation
12 Not rated due to low priority
Code Explanation
3 Below Requirement - Positive Growth Trend
4 Below Requirement - Negative Growth Trend
7 Below Requirement - Unacceptable Growth Trend
11 Below Requirement - Mean Life or B-10 Life
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( ) 63 26+21+13+2+0+0 *100=98.4%
Reliability Rating Example
*The part population
rated in STARS only
includes models that
have been out of
production less than
5 years.
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To Improve Reliability Rating
Focus on working priority parts (as defined by Reliability dept) for customer satisfaction
Implement corrective action on top Pareto drivers contributing to removals to reach and/or exceed MTBUR requirement
Maintain low or decreased removal rate
Keep growth rate positive with goal of > .30 (industry standard)
Communicate with Cessna Reliability Contact on part obsolescence, part number rolls, and design changes affecting reliability
Be proactive and initiate corrective action as soon as possible to maximize number of parts in “good” codes
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2000 Cost Metric
Inclusions: Production and Spares Orders (On LTA)
Exclusions: Rework Orders, Experimental Orders,
Indirect Purchases, Farm-Out Orders, Value Added Suppliers
Cessna evaluates a supplier’s ability to provide Cessna with competitive part
pricing, terms, and participation in purchase order automation.
Terms are rated based upon your percent discount and/or Net terms offered.
This is a 12-month rolling score and is weighted as 20% of your Cost score.
The Automation scoring on the Cost Metric is based on your participation in
purchase order automation (Auto-PO and Min-Max). This is a 12-month
rolling score and is weighted as 10% of your Cost score.
The Overall Value portion of the Cost metric is the overall estimated price
change based on indices and is determined on a yearly basis and is
weighted as 70% of your Cost score.
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2000 Cost Metric - Terms
Rating is determined as follows: 1 Outstanding 2%15N90
2 Superior Either Net 90 or X%15N60
3 Acceptable Either Net 60 or X%15N45
4 Marginal Either Net 45 or X%15N30
5 Unacceptable Net 30
Terms Represents 20% of the Cost Metric Score
Example:
Your terms are 1%15N45
Your score = 3
3 X scoring weight of .2 = .6
.6 + Automation Score + Overall Value Score = Cost Metric Score
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2000 Cost Metric - Automation
Automation Represents 10% of the Cost Metric Score
Rating is determined as follows:
1 Outstanding Yes
5 Unacceptable No
Example:
You participate in Automation
You participate in Min-Max or Auto PO = 1
1 X scoring weight of .1 = .1
.6 + .1+ Overall Value Score = Cost Metric Score
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2000 Cost Metric - Overall Value
Overall Value Represents 70% of the Cost Metric Score
Rating is determined as follows:
1 Outstanding Deflation > 2%
2 Superior Deflation < 2%
3 Acceptable Firm Fixed
4 Marginal Cost Sharing
5 Unacceptable Inflation
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2000 Cost Metric – Overall Value (Cont’d)
Example:
Your Overall Value is Firm Fixed
Your Overall Value Score = 3
3 X scoring weight of .7 = 2.1
.6 + .1+ 2.1 = 2.8
2.8 = a Cost Metric Score of 3
SCORING SCALE:
1 Outstanding 0.01-1.5
2 Superior 1.51-2.5
3 Acceptable 2.51-3.5
4 Marginal 3.51-4.5
5 Unacceptable 4.51-5.0
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2000 Collaboration Metric
The Collaboration Metric was designed to capture supplier
involvement and commitment to Cessna initiatives that drive
down the total cost to produce aircraft.
This metric is scored based on four categories:
SOI/VMI/VAS is scored based on your commitment to participation in this
procurement strategy. This represents 60% of the total Collaboration
Metric score.
ASN is scored based on usage of ASN’s for shipments. This represents
10% of the total Collaboration Metric score.
Program Contribution is scored based on cost sharing incentives
provided for New Programs. This represents 25% of the total
Collaboration Metric score.
Compliance is scored based on your provision of Country of Origin,
ECCN, and HTSUS codes for all parts shipped to Cessna. This
represents 5% of the total Collaboration Metric score.
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SCORING SCALE:
1 Outstanding 0.01-1.5
2 Superior 1.51-2.5
3 Acceptable 2.51-3.5
4 Marginal 3.51-4.5
5 Unacceptable 4.51-5.0
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2000 Collaboration Metric
39
SOI/VMI/VAS Represents 60% of the Collaboration Metric Score
Rating is determined as follows:
1 Outstanding SOI/VMI/VAS Implemented
2 Superior Signed Contract/Amendment
3 Acceptable Verbal Commitment
4 Marginal On Opportunity List
5 Unacceptable No
If your company cannot participate in SOI/VMI/VAS, the Collaboration score will be based on the sum of the other three categories.
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2000 Collaboration Metric – SOI/VMI/VAS
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ASN Usage Represents 10% of the Collaboration Metric Score.
Scoring is determined as follows:
1 Outstanding Yes
5 Unacceptable No
This metric is based on number of receipt transactions and not total dollars received.
You must have a minimum of 50% ASN usage to score a “1”.
Example: If you have 10 shipments with receipts and three have ASN’s, your participation level is 30%.
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2000 Collaboration Metric – ASN
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This Category Represents 25% of the Collaboration Metric Score.
Scoring is determined as follows:
1 Outstanding Yes
5 Unacceptable No
Scoring is based on your willingness to partner in New Program development. Partnering can be represented by but not limited to rebates, free hardware, test equipment, etc.
This metric is updated annually.
If you are not able to participate in New Programs, your score is based on the sum of the other three categories.
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2000 Collaboration Metric – Program Contribution
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This Category Represents 5% of the Collaboration Metric Score.
Scoring is based on the following:
1 Outstanding 90-100%
2 Superior 80-89%
3 Acceptable 70-79%
4 Marginal 60-69%
5 Unacceptable <60%
This metric is scored at the part number level and is updated monthly.
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2000 Collaboration Metric – Compliance