Berlin, November 2009

Berlin, November 2009

Deutsche Bahn AG

Dipl. Ing. Sascha Pantel

Technology, Integrated Systems and Services - Procurement

Further development of supplier managementDeutsche Bahn AG

Buildings and Structures Product Area – Supplier Management

2Deutsche Bahn AG, Technik, Systemverbund und Dienstleistungen, November 2009

Supplier managementas a continuous process

1.

Cross-functional and ongoing:

Updating and Continuing the supplier data Risk management

Supplier development

3.

Supplier evaluation

2.

Phasing out suppliers

Integrated SystemsRail

Supplier management at DB is understood as an overall control process and consists of 3 part phases

OVERVIEW OF THE SUPPLIER MANAGEMENT PROCESS

New companies

Supplier qualification



1.


3.

Supplier evaluation

2.

IntegratedSystems Rail

All suppliers are qualified, but with different degrees of intensity

For this purpose, the suppliers' products/ services are classified into risk categories

Depending on the risk category of the products/services, qualification is made at different depths with different requirements

Criteria for determining suitability are specialist know-how, productive capacity and reliability

Key aspects of supplier qualification


The risk assessment of the groups of goods determines the qualification intensity of the potential contracting party

environment

customers

image

costs

supply

quality

safety

set

freely selectable

Example dimensions for determining the risk

other criterianone

Riskclassification

high

very high

low

usual

Basic data

Basic data

Basic data

Basic data

Commer. criteria

Commer. criteria

Commer. criteria

Perform. criteria

Perform. criteria

Process criteria

Modules for qualification

Lieferanten-qualifizierungLieferanten-qualifizierung

1.1.

Lieferan-tenent-wicklung

3.3.

Lieferanten-bewertung

2.2.

Systemverbund Bahn

Systemverbund Bahn


Modules

Contractual capacityContractual capacity

TrustworthinessTrustworthiness

ReliabilityReliability

SustainabilitySustainability

QUALIFICATION: GRADATION LOGIC FOR THE QUALIFICATION OF COMPANIESQUALIFICATION: GRADATION LOGIC FOR THE QUALIFICATION OF COMPANIES

Example sub-criteria

Basic data

Commer. criteria

Perform. criteria a

and b

Process criteria

DUNS no., Sector Codecompany, address, telephone no., contact

banking connectionVAT IDQMS in placeability to enter into risks (trade assoc. member)

solvency of the company integrity of business management references at DB AGwork at the required state of the art (DIN)/minimum technical requirements for performance

necessary equipment/expertise (means of production, welding approval, …)

Manufacturer-related product qualification (HPQ)

Q classification

Supplier (future

contract-ing

partner)

Product/manu-facture

r

Top criteriaLevels

Defined criteria (partly goods group-specific) are allocated to every qualification module


1.1.


3.3.


2.2.

Systemverbund Bahn

Systemverbund Bahn


PQ system

is designed

throughout

as a

two-stage

procedure.

The Buildings and Structures pre-qualification procedure forms the basis of high-quality supplier qualification

Pre-qualification procedure stipulation of objective rules and criteria

stipulation of an evaluation system

Stage 1 legal, administrative and economic criteria

Stage 2 specialist suitability, productive capacity and

reliability

Directory of the pre-qualified companies

approval

approval

Companies can undergo the pre-qualification procedure at any time by applying to participate

Planning services

Track superstructu

reEarthworks

(general/special)

Structural engineering

Protection services

Construction supervision


Application of the PQ procedure forthe following sub-systems:


The DB supplier pool comprises 3 different supplier categoriesThe DB supplier pool comprises 3 different supplier categories

QUALIFICATION: CLASSIFICATION INTO SUPPLIER CATEGORIES AND INFLUENCING VARIABLES

Major suppliers with high

purchasing volume

Strategic suppliers owing to low

substitutability

Significant markets and

materials

High relevance for DB business

Einteilung Lieferanten in

Lieferantenklassen

•Key

•Preferred

•Accepted

Einteilung Lieferanten in

Lieferantenklassen

•Key

•Preferred

•Accepted

Classification of suppliers into

supplier categories

according to group of goods or

eClass

•Strategic

•Preferred

•Accepted


1.1.


3.3.


2.2.

Systemverbund Bahn

Systemverbund Bahn



1.


3.

Supplier evaluation

2.

IntegratedSystems Rail

Evaluation is the target/actual comparison on the basis of specifications in the dimensions of quality, costs and dates along the entire supply chain

Evaluations take place within a narrow timeframe according to defined events

The result is a ranking of the suppliers

Every evaluation is communicated

Every evaluation has a consequence

KEY ASPECTS OF SUPPLIER EVALUATION


EVALUATION GRID: FIRST AND SECOND AGGREGATION LEVEL DB TOTALLieferanten-qualifizierung

1.1.


3.3.


2.2.

Systemverbund Bahn

Systemverbund Bahn

Product evaluation phase

Delivery and performance phase

Quotation phase

Phases in the procurement process

Quality in use product evaluation quality of elimination of

defects

Quality of deliveries and performance quality of delivery &

performance quality of cooperation effectiveness of the QMS

Quality of the quotation formal quality of the quotation quality regarding contents of

quotation

Operating costs

maintenance costs disposal costs costs for energy, auxiliary

materials, operating supplies

Cost development adherence to costs in

contract period claim behaviour

Price level and price transparency transparency/plausibility of

pricing reasonableness of price level

Observance of deadline in case of defects

reaction time after notice of defect

duration of eliminating defect

Observance of dates compliance with dates of

delivery and performance behaviour with change of

date

Observance of deadlinesand dates formal observance of

deadlines assurance of set/expected

delivery and performance dates

Dimensions

Quality(>20%)

Costs(>20%)

Dates(>20%)

Detailedquestion catalogue

for each field

Supplier evaluation is an elementary part of supplier management and comprises the dimensions of quality, costs and dates


Uniformly throughout DB, …

… at least 80% of the purchasing volume is covered in supplier evaluations

… every evaluation is based on the dimensions of quality, costs and dates with a minimum weighting

… all results are communicated

CONSIDERATION OF UNIFORM BASIC PRINCIPLES AND GOODS GROUP-SPECIFIC FEATURES

Goods group-specific features require diversification of the evaluation questions and conditions

As a result, …

… suppliers are evaluated transparently according to objective suitability requirements (productive capacity, reliability, specialist know-how)

… companies which do not fulfil this demand can be identified

… legally and revision-secure decisions are taken in the award process according to the principle of equal treatment and transparency

Goods group-specific, …

… different evaluation sheetsare generated (examples):

construction services planning services subsoil evaluations and foundation consultancy construction supervision planning services (FA*) protection services protection services (FA) provision of track material disposal of track material logistics services

Lieferanten-qualifizierung

1.1.


3.3.


2.2.

Systemverbund Bahn

Systemverbund Bahn

*FA=framework agreement


The ranking results from event-related data, individual cases and an annual evaluation round

LOGIC OF OVERALL RANKING FOR EACH SUPPLIER

Event-related data along the supply

chain

(for quotation, delivery and performance,

warranty each)

Annual evaluation round with every Business Area

concerning supplier portfolio

< on the basis of the event-related data

< in addition: 2-3 qualitative criteria (e.g. technology, innovation capability, soft skills)

91-100 outstanding

good

restricted

poor

81-90

61-80

≤60

Supplier ranking

< Quality

< Costs

< Dates

Individual-case-related data with particular significance as threshold or limit values or "killer criteria" (0-1), e.g.

compliance cases, insolvencies or dunning stages

SCHEMATIC REPRESENTATION

e.g. points



1.


3.

Supplier evaluation

2.

Integrated SystemsRail

Every supplier evaluation leads to a structured reaction; every evaluation has a consequence

Depending on the significance of the supplier and his classification in the ranking, further development is performed with differing intensity

KEY ASPECTS OF SUPPLIER DEVELOPMENT


OVERVIEW OF THE COMMUNICATIONS CONCEPT

Development measures are agreed on along with the communication to the supplier1 Joint supplier development

teams

2 Proposal for supplier's award and further qualified automatically

3 Phasing out possible, e.g. no extension of framework contracts

4 Contractual obligation of the supplier for improvement (catalogue of measures, target agreement) or phasing out

poor < 60

acceptedpreferredstrategic

Outstand-ing100-91

Good 81-90

Restricted 61-80

Supplier classification

2

Ranking for each supplier

1

Poor <60

3

4

SCHEMATIC REPRESENTATION

The result of a supplier evaluation is always communicated to the supplier


Supplier management

Integration. Weltweit.

Mit zuverlässigen Lieferanten den Kunden gewinnen !

Integration. Worldwide.

Gain the customer with reliable suppliers !

Integrierte Lösungen für weltweiten Erfolg – Integrated solutions for worldwide success

Berlin, November 2009

Documents

Transcript of Berlin, November 2009