Q1 Requirements - User 3 Q1 Requirements ... APQP Launch Performance, ... Q1 2nd Edition included...
Transcript of Q1 Requirements - User 3 Q1 Requirements ... APQP Launch Performance, ... Q1 2nd Edition included...
Module 3
Module 3 Q1 Requirements
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Q1 Requirements
Module 3 Q1 Requirements
The Purpose of this module is to provide insight to
the Ford Q1 designation, including eligibility,
requirements and the endorsement process. In
addition, the presentation will explain the impact of
Supplier PPM and Delivery Performance on the
Q1 score.
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Module 3 Q1 Requirements
Define Q1 and its benefits
Summary of changes to 3rd Edition
Explain Q1 eligibility and requirements
Know what it takes to achieve Q1
Know what it takes to maintain Q1
Detail the process to obtain Q1
Understand how a supplier can lose Q1
Provide detailed explanation of the impact of PPM
on the Q1 score
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Module 3 Q1 Requirements
Set of quality and manufacturing disciplines for the
purpose of driving continuous improvement within
the Ford Supply Base
Joint effort between Ford Motor Company and its
Supplier Partners
Performance based award
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Module 3 Q1 Requirements
“Best in class” status among the world’s
automotive suppliers
Preferred Ford Supplier designation◦ New product development
◦ Sourcing
Self-Certifying PPAP privileges◦ Upon Supplier Technical Assistant’s (STA) approval
Eligible for the World Excellence Award
Publicity and advertising privileges
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1. Q1 Scoring and Performance Categories
The Q1 scoring method and metric grouping have been revised.Q1 will now be scored
from 0 to 100 Q1 points. Sites start with 0 points and earn points in 4 Performance
Categories. A site must maintain a total score of 80 Q1 points and maintain / attain
certain Metric scores to remain in good standing. Suppliers will no longer receive
negative points or bonus points applied to a base score.
2. Q1 Status Stratification
In order to reward higher performing supplier sites, Q1 Status will now be stratified per
demonstrated performance over a 6 month period into 4 levels:
- Q1 Gold (greater than 95 Q1 points)
- Q1 Silver (91 to 95 Q1 points)
- Q1 (80 to 90 Q1 points)
- Q1 sites recommended for revocation if overall Q1 score less than 80 Q1 points or
zero Metric score for PPM, Q1MSA, Stop Ship, FSA, Certifications or delivery
3. New Q1 Metrics for Q13rd Edition
QR Rate for both production and service, APQP Launch Performance, and Warranty
R/1000 Performance are new Metrics in Q1 3rd Edition.
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4. Q1 Metric Threshold Limits
Q1 2nd Edition included all commodities at the site in Q1 attainment PPM scoring. Q1
3rd Edition limits the PPM scoring for Q1 attainment to the base PPM score for those
commodities used for Q1. Q1 3rd Edition also limits the QR Rate scoring for suppliers
with low receipts to prevent excessively low QR Rate scores for low volume suppliers
and QR incidents.
5. "Violation Of Trust" Removal
The Violation of Trust has been eliminated from Q1 scoring and revocation governance.
Q1 Manufacturing Site Assessment is now used to identify and address this type of
issue.
6. Streamlined Endorsements
- Plant endorsement removed
- MP&L Mandatory Document Pre-Screening
- MP&L Lead Region Endorsement
- FCSD Lead Region Endorsement
- Additional details can be found in the Q1 3rd Edition Manual in
Appendix F
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Module 3 Q1 Requirements
Any external supplier manufacturing facility which
currently supplies production or service product to Ford
and its Joint Ventures is eligible for Q1 consideration.
This includes Packager and Bulk suppliers.
Subcontractors are not eligible for Q1 status.
Q1 means that the supplier facility achieves excellence
in these key areas: Quality Performance, Capable
Systems, Warranty Performance, and Delivery
Performance.
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Module 3 Q1 Requirements
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Q1 3rd Edition includes 4 Categories with 12 metrics
Module 3 Q1 Requirements
I. Quality Performance
Q1 uses five key Metrics in determining a supplier’s Quality Performance Category score:
Production and Service PPM: Does a supplier consistently deliver high quality products when compared against the industry standards?
Production and Service QR Rate: Does the supplier provide high quality parts to Ford and JV plants and service depots, minimizing disruptions?
Stop Shipments: Is vehicle rework, modification or re-inspection necessary due to poor product availability or supplier quality?
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Module 3 Q1 Requirements
II. Capable Systems
Q1 uses 3 key Metrics to define the capable systems
Category:
Industry Standards:
◦ IATF 16949 or ISO/TS 16949 quality management
◦ ISO14001 environmental standard
◦ MMOG / LE, achieving level A.
Q1 Manufacturing Site Assessment (Q1 MSA)
APQP Launch Performance
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Module 3 Q1 Requirements
III. Warranty Performance
Field Service Actions:
◦ Has Ford had to intervene for the end customer because of a supplier failure?
Warranty R/1000 Performance (Production only): ◦ Does the supplier show reduction in repairs / 1000 and
continuously
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Module 3 Q1 Requirements
IV. Delivery Performance
Do products arrive on time, at the correct location,
in the proper quantity and with the correct
information?
Delivery rating maintained at 81 points or higher
for all ship points associated with the
manufacturing location (reported in SUPER-G)
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Module 3 Q1 Requirements
Q1 Category Requirement Threshold to achieve Q1
Quality Performance Commodity PPM for both Production and
Service
6 month Commodity PPM less
than 1.5x Industry Commodity PPM (that is
used for Q1) for both Production and Service
QR Rate (6 months) For both Production and Service, QR Rate
Metric score ≥ 8points.
Stop Ship None in most recent 6 months with any supplier
responsibility (Stop Shipment Metric score = 20
points)
Capable Systems Q1 Manufacturing Site Assessment (Q1
MSA)
Acceptable current Q1 Manufacturing Site
Assessment or acceptable Corrective Action
Plan. (Q1MSA Metric score = 15 points)
APQP Launch Performance “Acceptable” or better APQP Launch
Performance Rating (Metric score ≥3
points) or not applicable
Industry Standards (IATF 16949 or ISO/TS
16949, ISO 14001, MMOG/LE)
Certifications / assessment requirements met
and not expired, also MMOG/LE level
A (Industry Standards Metric score = 10 points)
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Module 3 Q1 Requirements
Q1 Category Requirement Threshold to achieve Q1
Warranty Performance Field Service Actions None in most recent 6 months with any supplier
responsibility
(FSA Metric score = 10 points)
Warranty R/1000 (production only) Warranty R/1000 Performance Metric shows
improving trends (Warranty R/1000
Performance Metric score ≥3 points)
Delivery Performance For both Production and Service all
regions which report delivery ratings to
SIM via MP&L’s “SUPER G” system
For every delivery rating, (except those identified
in SIM as “not considered for Q1”) the 6 month
weighted average and the 3 most recent
available monthly ratings from the last 7 calendar
months (may include the immature month) must
all be 81 points or higher. The site must have at
least 1 delivery rating 6 or more months old.
Active Site Status Receipts Receipts are required for at least 3 of the most
recent available 6 mature months,
and delivery ratings exist for at least 3 of the
most recent available 7 calendar months
for the supplier to be eligible for Q1.
Overall Q1 score Must be 80 points or higher
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Module 3 Q1 Requirements
Q1 Category Requirement Threshold to achieve Q1
Quality Performance Commodity PPM for both Production and Service 6 month worst commodity PPM less than 2x Industry
Commodity PPM and no more than 2 out of 6 individual months at or above 2x Individual month
commodity PPM (that is used for Q1) for bothProduction and Service Commodity PPM Metric score
>0 points) Q1 Action Recommended
QR Rate (6 months) For both Production and Service, any QR Rate Metric
score >0 points.
Stop Ship Not more than one in the most recent 6 months with
any supplier responsibility(Stop Shipment Metric score > 0 points) Q1 Action
Recommended
Capable Systems Q1 Manufacturing Site Assessment (Q1 MSA) Q1MSA Metric score ≥ 0 points [no delinquent second
action or ineffective corrective action plan (second action) status assigned by the STA site engineer] Q1
Action Recommended
APQP Launch Performance For production and service, Q1 maintained with any
Metric score. Gold and Silver levels not permitted with 0 score.
Industry Standards (IATF 16949 or ISO/TS
16949, ISO 14001, MMOG/LE)
Certifications / assessment requirements met and not
expired > 31 days for IATF or ISO/TS 16949 and ISO14001 (Industry Standards Metric score >0 points)
Q1 Action Recommended
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Module 3 Q1 Requirements
Q1 Category Requirement Threshold to achieve Q1
Warranty Performance Field Service Actions None in most recent 6 months with any supplier
responsibility (FSA Metric score = 10 points) Q1
Action Recommended
Warranty R/1000 Q1 maintained with any Metric score > 2 points
or no warranty reported
Delivery Performance For both Production and Service all
regions which report delivery ratings to
SIM via MP&L’s “SUPER G” system
Delivery Performance Metric score > 0 points
[Either 6 month weighted average, or
any of the 3 most recent available monthly
ratings from the last 7 calendar months
(including the immature month) 81 points
or higher] Q1 Action Recommended
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Active Site Status Receipts Supplier Sites with no receipts for the last 13
consecutive calendar months are subject to
inactivation and loss of Q1status unless future
business is confirmed by the buyer.
Overall Q1 score Must be 80 points or higher AND have no 0 point
Metric scores as noted above. Q1 Action
Recommended
Module 3 Q1 Requirements
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Once the Supplier Site has satisfied Q1 requirements in Quality Performance, Capable Systems, Warranty Performance, and Delivery Performance the Supplier Site is required to obtain customer endorsements from:
◦ MP&L (Material Planning & Logistics),
◦ FCSD (Ford Customer Service Department) for service parts
◦ Supplier Technical Assistance (STA).
Valid for 6 months
◦ If Q1 isn’t achieved within 6 months of the customer endorsement request, it must be requested again
Form PP-S-F047 Request for Customer Endorsement
◦ Provided by STA
Customer Endorsement
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Supplier sites that are only active for service are
considered Service Unique.
Endorsements obtained from FCSD will cover all
regions that the supplier site ships to
Submit Form PP-S-F047. Must be submitted to
the Quality Coordinator for the supplier’s region.
Contact your FCSD STA prior to submission and
if you have any questions.
Service Unique Sites Q1 Endorsement
Module 3 Q1 Requirements
Module 3 Q1 Requirements
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How can I lose Q1? 6 month commodity PPM performance
◦ Worse than -100% with “0” point
criteria satisfied – 3 or more months
at the “worse than -100%” level.
QR Rate – 3 month vs. 6 month
◦ An Unacceptable score result in a 0
metric score
Stop Ship
◦ Two or more stops ships in most
recent 6 months
Q1 MSA
◦ Site assessment delinquent twice
◦ Corrective Action Plan ineffective
twice
Industry Standards
◦ MMOG/LE missing/expired or not
at level A
◦ ISO 14001 Expired over 31 days
◦ IATF 16949 or ISO/TS 16949
Expired over 31 days
Field Service Actions (FSA)
◦ Any Field Service Action within 6
most recent calendar months
Delivery – based off the lead region
◦ 6 month weighted average less
than 81 and ALL of the 3 most
recent available monthly ratings
less than 81, including the
immature month
Module 3 Q1 Requirements
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Commodity PPM for Production
and Service
A supplier gains Q1 points by
outperforming the industry
commodity PPM (rated on the
percentage above or below the
industry commodity PPM). If a site
provides multiple commodities, it will
only receive points for the worst
performing commodity for production
and for service, respectively. See the
Table on the right for the
corresponding Metric point criteria.
IMPACT OF PPM ON Q1 SCORE
6 Month Commodity PPM Performance Table
Performance vs. Q1 IndustryCommodity PPM
(Performance vs. Q1 Level in SIM)
Metric points(Towards Q1 score in SIM)
100% 10 points
75% to 99.99% 9 points
25% to 74.99% 8 points
0 to 24.99% 7 points
-.01% to -24.99% 6 points
-25% to -49.99% 5 points
-50% to -74.99% 4 points
-75% to -99.99% 3 points
Worse than -100% 2 points
Worse than -100% with “0 point” Criteria Satisfied *(see next page)
0 points
Module 3 Q1 Requirements
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Commodity PPM for Production and Service
IMPACT OF PPM ON Q1 SCORE
6 Month Commodity PPM Performance Table continued. Worse than -100% with “0 point” Criteria Satisfied
The “0 point” criteria are based on the 6 month Commodity PPM and the number ofindividual months out of the 6 mature months in which the commodity performanceexceeds the Q1 industry commodity level as defined below.
Currently the “0 point” Criteria are:For Production and Service: the worst 6 month Commodity PPM for the site “used for Q1”> 2x Q1 Industry Commodity PPM and 3 or more months at the “Worse than -100%” level(1 point) results in a score of 0.The number of months at the “Worse than -100%” level (1 point) is displayed in SIM withthe note “2X Industry Threshold”.
Note that the number of months and multiple of the Q1 industry commodity level can bealtered for all production suppliers and/or all service suppliers based on performance.Notice will be provided prior to implementing any such change.
Module 3 Q1 Requirements
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IMPACT OF PPM ON Q1 SCOREIndividual Commodity Q1 Phase-In Metrics
Phase In Metric (Completed per
Individual
Commodity)
Effective Range (Same
for Service
and Production)
Q1 Metric score
Limit (Low est
score Allow ed)
Commodity PPM
115.1 to 120 2
110.1 to 115 3
105.1 to 110 4
100.1 to 105 5
0 to 100 7
Percentage of Site
Volume
12.1 to 15 3
10.1 to 12 4
8.1 to 10 4
6.1 to 8 5
0 to 6 Not Used for Q1
Total Pieces
Rejected
6 to 7 4
5 to 5 5
4 to 4 5
0 to 3 7
Site Overall PPM
115.1 to 120 2
110.1 to 115 3
105.1 to 110 4
110.1 to 105 5
0 to 100 7
Individual Commodity Q1
Phase-In Metrics (Lowest
score Allowed Limits):
A Limit strategy has been developed to
protect “Low Volume” suppliers from
excessively low Q1 PPM scoring.
These Limits are applied to the base
Q1 score to limit / cap scoring for lower
levels of PPM, percent volume, and
number of rejects. This results in an
Applied PPM score for each
Commodity. The explanation of these
limits are in the Individual Commodity
Q1 Phase-In Metrics table to the right.
Module 3 Q1 Requirements
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QR Rate for Production and Service
QR (Quality Reject) Rate is a normalized measure of unique QR incidents per 100 opportunities for both Production and Service. Both Production and Service QR Rate Metrics contribute 10 Metric points to the total Quality Performance Q1 Category score. Q1
QR Rate Metric score is determined by the QR Rate per 100 Opportunities Value, and the 3 Month vs. 6 Month Trend
Limit Factor: The QR Rate Metric score Limits, will limit the QR Rate Metric score if the effective range applies and the associated QR Rate Metric score Limit is higher than the base QR Rate score calculated
IMPACT OF PPM ON Q1 SCORE
QR Rate Scoring Thresholds
QR Rate Status
(6 Month)
QR Rate Trend (3 Month
vs. 6 Month)
Metric Score
Outstanding <3
(Raw Materials
<1.5)
N/A 10
Trending 3 < Rate < 10
(Raw Materials
1.5 <
Rate < 7)
Improving 8
Level 6
Degrading 4
Unacceptable >10
(Raw Materials
>7)
N/A 0
Low Volume Limits on QR Rate
QR Rate Phase-In
Metric
Effective Range (Same
for Service and
Production)
QR Rate Metric score
Limits (Low est score
Allow ed)
Number of QR
Incidents
1 6
2 4
≥3 0
Active Months (Months
w ith Receipts)
1 4
2 4
≥3 0
Module 3 Q1 Requirements
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Impact of Delivery Rating On Q1 Score
Super G 6 Month Weighted Average Metric Points
100 10 points
≥97 to 99 8 points
≥81 to 96 6 points
Less than 81(BUT ANY of 3 the most recent available monthly
ratings ≥81, including the immature month)6 points
Less than 81(AND ALL of the 3 the most recent available monthly
ratings <81, including the immature month)0 points
Determining Worst Ship pointFor all considered ship points, the Supplier Site receives “0 point” Metric score if the followingoccurs:Delivery Rating falls below 81 points for:• The weighted six-month average AND• The last 3 available ratings from the past 7 complete months
• This includes the immature month rating if one is available• These ratings do not need to be in consecutive calendar months• Ship sites with ≤ 2 ratings in the past 7 months are not considered
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• More information is
available on the Ford Supplier Portal –
Production and Service Q1
• The link is available through Covisint
(https://web.qpr.ford.com/sta/Q1.html)
Module 3 Q1 Requirements
For further questions, please contact your Production or
FCSD Service STA.