Download Date: 3/9/2017 2:59:10 PM
Document Number : FMS-QMS-4-093-00
Revision No: A
flexTitle : SRS Supplier Information
Document Owner : Isaac Garcia
CONFIDENTIAL
SRS Supplier Information
Isaac Garcia
FMS-QMS-04-093-00
Download Date: 3/9/2017 2:59:10 PM
Document Number : FMS-QMS-4-093-00
Revision No: A
flexTitle : SRS Supplier Information
Document Owner : Isaac Garcia
SRS Supplier Quality System – Contents
I. Definitions 2
II. SRS Background & Purpose 3
III. SRS Scope 4
IV. SRS Measurements 5
V. Supplier Improvement Plan 17
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Download Date: 3/9/2017 2:59:10 PM
Document Number : FMS-QMS-4-093-00
Revision No: A
flexTitle : SRS Supplier Information
Document Owner : Isaac Garcia
Definitions
SRS Supplier Rating System
SME Subject Matter Expert
GCM Global Commodity Manager
QBR Quarterly Business Review
CAR Corrective Action Request
ERP Enterprise Resource Planning
SCAR Supplier Corrective Action Request
GBA General Business Agreement
DPPM Defective Parts Per Million
GP Global Procurement
SIP Supplier Improvement Plan
SMI Supplier Managed Inventory (a supplier classification type)
CRP Continuous Replenishment Program (a supplier classification type)
JIT Just-In-Time (a supplier classification type)
ROI Return On Investment
PO Purchase Order
MDSSMaterials Decision Support System. An application from the MicroStrategy suite used for online analytical data
processing and reporting; also known as cubes.
Measure Data, usually numeric and additive, that can be examined and analyzed.
SQE Supplier Quality Engineer
QAE Quality Assurance Engineer
WAC Weighted Average Cost
RFQ Request For Quote
CMT Commercial Management Tracker
NCMR Non-Conforming Material Report
OTD On-Time Delivery
QUALfx Global Quality System Tool
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Download Date: 3/9/2017 2:59:10 PM
Document Number : FMS-QMS-4-093-00
Revision No: A
flexTitle : SRS Supplier Information
Document Owner : Isaac Garcia
SRS Background & Purpose
BACKGROUND
Flex’s SRS 4.0 is a Supplier Management Tool with the following benefits:
• Well-structured system to provide objective information to our customers.
• Flexible enough to be used by all Sites and Business Groups.
• Ensures continuous supplier improvement through quarterly performance scorecards assessing
suppliers’ quality, delivery, price, and responsiveness.
Data used for SRS 4.0 is systemic, line item transactions are extracted and calculated from MDSS,
through a Cube. By utilizing systemic data, which is refreshed quarterly, suppliers are scored fairly and
consistently.
PURPOSE
The purpose of this process is to provide instructions and forms in order to ensure the proper use and
understanding of SRS 4.0. SRS metrics are intended to promote world-class suppliers and to provide
continuous improvement in suppliers’ performance. The SRS process has been enhanced and
automated to establish an unbiased rating process for supplier management.
SRS 4.0 is a tool to facilitate constructive discussion in the context of regular business reviews (QBR’s)
that the Flex Procurement Team holds with its suppliers.
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Download Date: 3/9/2017 2:59:10 PM
Document Number : FMS-QMS-4-093-00
Revision No: A
flexTitle : SRS Supplier Information
Document Owner : Isaac Garcia
SRS Scope
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SCOPE
SRS 4.0 rates all specifically designated suppliers and its rating criteria is made up of 8
measurements:
1. On Time Delivery (OTD) (Supplier Promise Date)
2. On Time Delivery (OTD) (Flex Requested Date)
3. Purchase Order Automation
4. SMI / CRP Spend (Supplier Managed Inventory / Continual Replenishment
Program)
5. Terms of Payment
6. Quality Performance
7. Cost Reduction Program
8. Communication Performance:
• Environmental Response Time
• Quotation Response Time
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SRS Measurements
On-Time Delivery % (Supplier Promised Date)
Purpose: To improve On-Time Delivery, which will ultimately increase manufacturing efficiency based on the receipt
transaction tables in MDSS. If the receipt date is not earlier than 3 days from the confirmed or changed delivery date and not
later than 2 days from the confirmed or changed delivery date, it’s considered as “On-Time”.
Note: The calculation is based on Working Days.
Score Definition
0.00 Less than 70%
1.00 Greater than or equal to 70% and less than 80%
2.00 Greater than or equal to 80% and less than 90%
3.00 Greater than or equal to 90% and less than 95%
4.00 Greater than or equal to 95%
S DELIVERIES - 3 TO +2 DAYS
ALL DELIVERIES
% = X 100
N
1
N = NUMBER OF DELIVERIES BETWEEN -3 AND +2 DAYS
FROM CONFIRMED OR CHANGED DELIVERY DATE.
(CALCULATION IS BASED ON WORKING DAYS)
Logic:
If PO is SMI or JIT, then OTD = 1
Else
If Change Delivery Date is NOT NULL,
If -3 <= (Received Date - Changed Delivery Date) <= 2
Then OTD = 1
Else
if -3 <= (Received Date - Confirmed Delivery Date) <= 2
Then OTD = 1
Else
OTD = 0
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6
SRS Measurements
On Time Delivery % (Flex Requested Date)
Purpose: To improve On-Time Delivery which will ultimately increase manufacturing efficiency based on the
receipt transaction tables in MDSS.
Score Definition
0.00 Less than 70%
1.00 Greater than or equal to 70% and less than 80%
2.00 Greater than or equal to 80% and less than 90%
3.00 Greater than or equal to 90% and less than 95%
4.00 Greater than or equal to 95%
SN
DELIVERIES <=2 DAYS
ALL DELIVERIES
% = X 100
N = NUMBER OF DELIVERIES <=2 DAYS
(CALCULATION BASED ON WORKING DAYS)
1
Logic:
If PO is SMI or JIT, then OTD = 1
Else
If Change Delivery Date is NOT NULL,
If (Received Date - Changed Delivery Date) <= 2
Then OTD = 1
Else
If (Received Date - Planned Delivery Date) <= 2
Then OTD = 1
Else
OTD = 0
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Document Number : FMS-QMS-4-093-00
Revision No: A
flexTitle : SRS Supplier Information
Document Owner : Isaac Garcia
7
SRS Measurements
SMI – CRP Spend % (Supplier Managed Inventory – Continuous Replenishment Program)
Purpose: To increase SMI/JIT and CRP spend to 60% or greater, decreasing direct spend and costs associated with logistics, as
well as increasing time to line and reducing warehouse costs.
This measurement is based on the field named PO Source and overall spend for a supplier. The percentage of SMI-CRP spend
compared to overall spend (for the specified time frame) dictates the score.
Score Definition
0.00 All less than 15%
1.00 Greater than or equal to 15% and less than 30%
2.00 Greater than or equal to 30% and less than 45%
3.00 Greater than or equal to 45% and less than 60%
4.00 Greater than or equal to 60%
Logic: Calculate spend for PO source type ((SMI+JIT) +
(CRP*0.75) then divide by total spend at supplier level.
S SPEND FOR PO TYPE = ((SMI + JIT)+(CRP*0.75))
TOTAL SUPPLIER SPEND% = X 100
N
1 N = No. of Suppliers w/ SMI, JIT & CRP
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Scor
eDefinition
0.00 Payment terms are less than 60 days
2.00Payment terms are equal to or greater than 60
days, but less than 80 days
3.00Payment terms are equal to or greater than 80
days, but less than 90 days
4.00Payment terms are equal to or greater than 90
days
Terms of Payment:
Purpose: To increase the number of suppliers that align to Flex’s preferred payment terms.
Calculation is based on the SITE terms in the Business Partners’ table in MDSS (not the Global Terms table).
Logic: Using a table in MDSS that converts all terms to a numeric value (number of days),
scores are based directly on number of days.
NOTE: The Global Score is the average of Sites Scores, however the Supplier should provide the same Payment Terms to all sites,
if a site has less days in Payment Terms than other sites then it should be escalated to GCM.
SRS Measurements
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Document Number : FMS-QMS-4-093-00
Revision No: A
flexTitle : SRS Supplier Information
Document Owner : Isaac Garcia
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SRS Measurements
Purchase Order Automation %:
Purpose: To improve Purchase Orders (PO’s) processing by removing any manually performed steps.
This measurement is based on the receipt transaction tables in MDSS. If field named “PO_FILE_EXC_FLG “ (Purchase Order File
Exchange) is greater than zero it means that it is not Manual or Tactical PO.
S Purchase Order File Exchange > 0
Total Received P.O. Lines
% = X 100
N
1 N = No. of Purchase Order
File Exchange greater than 0
Logic: If Purchase Order File is greater than zero, then 1 else 0.
The total 1’s and 0’s are used to calculate the PO Automation percentage based on
total count of PO sequence (line) numbers.
Note: Purchase Order File Exchange Value indicates how the purchase order was
communicated to the Supplier:
0 – Manual or Unknown
1 – FSP
2 – EDI
3 – EDI/FSP
Score Definition
0.00 All less than 20%
1.00 Greater than or equal to 20% and less than 40%
2.00 Greater than or equal to 40% and less than 70%
3.00 Greater than or equal to 70% and less than 80%
4.00 Greater than or equal to 80%
SMI, JIT, CRP, CRP-VH are treated as Automatic Orders
Download Date: 3/9/2017 2:59:10 PM
Document Number : FMS-QMS-4-093-00
Revision No: A
flexTitle : SRS Supplier Information
Document Owner : Isaac Garcia
10
SRS Measurements
Quality Performance:
The measurements included are:
1) Actual DPPM
2) SCARs Initiated (within the Quarter)
3) SCARs Open Time
Purpose: To provide the Sites, Business Segments and Global Team with a centralized data report related to Suppliers Performance
in Quality terms.
Quality PI = [(PI for DPPM Level * 0.5) + (# of SCARs Initiated * PI for SCAR * 0.5) + (PI for SCARs Open Time)] * 100
Score Quality PI Definition
0.00 Greater than 250
1.00 Greater than 150 AND less or equal to 250
2.00 Greater than 50 AND less or equal to 150
3.00 Greater than -50 AND less or equal to 50
4.00 Less or equal to -50
NOTE: This measurement is requires Sites’ intervention to provide actual DPPM, SCARs Initiated
and SCARs Open Time data.
In the future, QUALfx will be connected to MicroStrategy and all SCAR data can be pulled from
QUALfx automatically (to be added in SRS v4.1).
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11
DPPM Level
DPPM = Defective Parts Per Million
Actual DPPM /
Target DPPM
PI of DPPM
Level
Corresponding Failure
Rate if DPPM Target = 2000
<=1 0 <=0.2%
<=3 1 <=0.6%
<=30 3 <=6%
>30 9 >6%
1 <= Target DPPM <= 2000
Actual DPPM = Number of Defective Parts
Number of Used Parts X 1,000,000
SRS Measurements
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SCARs Initiated
It is the number of SCAR’s initiated during the Quarter due to occurrences of nonconforming product, that was unable to be
used in production.
SCAR Open Time
Open Days* PI for SCARs Open Time
0 - 5 -0.5
6 - 21 0
≥ 22 0.5
Open Days: Average SCAR’s Open Time
Note: The SCARs can be Open or Closed.
# of SCAR: Supplier confirmed the issue and committed to
take Corrective Actions.
SCAR Reason Code PI for SCAR
SCAR Incoming 1
SCAR Production 1
SCAR Customer 0KM 3
SCAR Customer Field 3
SCAR Line Stop 3
It is the number of days from when a SCAR is initiated to when a SCAR is closed.
Note:
1. Only report the SCARs initiated during the quarter, no need to count
the SCARs initiated in the previous quarter.
2. SCAR close date = when SCAR is replied by supplier and
Corrective Actions are evaluated and accepted by Flex.
3. If SCAR is still open, SCAR Open Time = Today – Date Sent to
Supplier.
SRS Measurements
Download Date: 3/9/2017 2:59:10 PM
Document Number : FMS-QMS-4-093-00
Revision No: A
flexTitle : SRS Supplier Information
Document Owner : Isaac Garcia
13
SRS Measurements
Cost Reduction Program:
Purpose: To increase the number of suppliers that have Cost Reduction Programs when doing business with Flex.
Based on the receipts extended price by item, commodity. If a supplier provides more than one (1) commodity, each commodity score isweighted by total spend to obtain an overall price competitiveness rating for each supplier.
Score Definition
0.00 Cost Delta is greater than 2.0%
1.00 Cost Delta is greater than 0.5% and equal or less than 2.0%
2.00 Cost Delta is greater than -0.5% and equal or less than 0.5%
3.00 Cost Delta is greater than -3.0% and equal or less than -0.5%
4.00 Cost Delta is less or equal than -3.0%
NOTE: Negative values in Cost Delta means Cost Savings
WAC SCORE = SUM (PO Price * Qty) / SUM (Qty) for all receipts from last quarter
N = No. of commodities from supplier[S1
NWAC SCOREx
SUPPLIER COMMODITY SPEND
TOTAL SUPPLIER SPEND
SCORE = ]
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Document Number : FMS-QMS-4-093-00
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flexTitle : SRS Supplier Information
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SRS Measurements
Communication Performance
Purpose: To improve the communication processes between Flex and its suppliers.
Supplier’s communication performance is rated with the average of the following measurements:
- Quotation Response Score
- Environmental Response Score
If any of above measures is “N/A”, the communication score is calculated with the average of other available measurements.
Score Definition
0.00 Average (Quotation Score, Environmental Score, PCN score) = 0
1.00Average (Quotation Score, Environmental Score, PCN score) is
greater than or equal to 0.1 and less than 1.5
2.00Average (Quotation Score, Environmental Score, PCN score) is
greater than or equal to 1.5 and less than 2.5
3.00Average (Quotation Score, Environmental Score, PCN score) is
greater than or equal to 2.5 and less than 4
4.00 Average (Quotation Score, Environmental Score, PCN score) = 4
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Document Number : FMS-QMS-4-093-00
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flexTitle : SRS Supplier Information
Document Owner : Isaac Garcia
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SRS Measurements
Quotation Response Time %:
Purpose: To decrease the Suppliers’ Response Time to our Quotation Team (Global or Regional).
Quotation Team uses QuoteWin to process RFQs.
Logic: Number of On-Time Responses divided by the Total Number of Quoted Parts from Supplier.
Score Definition
0.00 Less than 50%
1.00 Greater than or equal to 50% and less than 60%
2.00 Greater than or equal to 60% and less than 70%
3.00 Greater than or equal to 70% and less than 99%
4.00 Greater than or equal to 99%
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SRS Measurements
Environmental Response Time %:
Logic: If the Response Date is less or equal to the Due Date then 1, else 0.
The total 1’s and 0’s are used to calculate the response percentage based on the total count of MPN’s or lines.
S RESPONSE DATE <= DUE DATE
ALL REQUESTED LINES% = x 100
N
1 N = No. REQUESTED LINES
Score Definition
0.00 All less than 50%
1.00 Greater than or equal to 50% and less than 60%
2.00 Greater than or equal to 60% and less than 70%
3.00 Greater than or equal to 70% and less than 99%
4.00 Greater than or equal to 99%
Purpose: To decrease the Suppliers’ Response Time to our Environmental Team.
Environmental Team uses PTC Windchill to process environmental declarations requests.
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Supplier Improvement Plan
Final Score Status Improvement Actions to be Taken
0-0.99Poor
Suggest Non-Use
Supplier must provide Improvement Plan (SIP) within 2 weeks of receipt of
scores. Non-response and/or lack of improvement may initiate SCARs and/or
disqualification process.
1.0-1.99Needs
Improvement
Supplier must provide Improvement Plan (SIP) within 4 weeks of receipt of
scores. Business maybe diverted from suppliers needing improvement until
improvement is made. Non-response and/or lack of improvement may initiate
SCARs.
2.0-2.99 Acceptable Supplier is performing on an average level with room for improvement.
3.0-4.0 World ClassSupplier has potential to become a preferred supplier and to receive additional
quote opportunities and/or business.
Final Score
• A score with “N/A” simply means there was no data available to calculate that particular measure. No action is needed from
Supplier or Flex.
• Should any scores fall in “Poor” or “Needs Improvement” flags, Supplier is encouraged to submit (to the appropriate Flex
contact) the Supplier Improvement Plan within the timeframe specified in the action table accompanying the scorecard form that
Supplier receives. Suppliers should work with their Flex representative to discuss improvement and subsequent actions.
• A Flex representative may initiate a SCAR at any time if supplier is non-responsive and/or improvement plan has not been
submitted by Supplier within the time frame stated below.
Download Date: 3/9/2017 2:59:10 PM
Document Number : FMS-QMS-4-093-00
Revision No: A
flexTitle : SRS Supplier Information
Document Owner : Isaac Garcia
Thank You
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