Module 3. Q1 Requirements. Q1 Requirements. Module 3

Transcription

1 Module 3 1

2 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. 2

3 Define Q1 and its benefits Summary of changes to 3 rd 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 3

4 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 4

5 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 5

6 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. 6

7 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 3 rd Edition Manual in Appendix F 7

8 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. 8

9 Q1 3 rd Edition includes 4 Categories with 12 metrics 9

10 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 reinspection necessary due to poor product availability or supplier quality? 10

11 II. Capable Systems Q1 uses 3 key Metrics to define the capable systems Category: Industry Standards: IATF or ISO/TS quality management ISO14001 environmental standard MMOG / LE, achieving level A. Q1 Manufacturing Site Assessment (Q1 MSA) APQP Launch Performance 11

12 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 12

13 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) 13

14 Q1 Category Requirement Threshold to achieve Q1 Quality Performance Commodity PPM for both Production and Service QR Rate (6 months) Stop Ship Capable Systems Q1 Manufacturing Site Assessment (Q1 MSA) APQP Launch Performance Industry Standards (IATF or ISO/TS 16949, ISO 14001, MMOG/LE) 6 month Commodity PPM less than 1.5x Industry Commodity PPM (that is used for Q1) for both Production and Service For both Production and Service, QR Rate Metric score 8points. None in most recent 6 months with any supplier responsibility (Stop Shipment Metric score = 20 points) Acceptable current Q1 Manufacturing Site Assessment or acceptable Corrective Action Plan. (Q1MSA Metric score = 15 points) Acceptable or better APQP Launch Performance Rating (Metric score 3 points) or not applicable Certifications / assessment requirements met and not expired, also MMOG/LE level A (Industry Standards Metric score = 10 points) 14

15 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) Delivery Performance Warranty R/1000 (production only) For both Production and Service all regions which report delivery ratings to SIM via MP&L s SUPER G system Warranty R/1000 Performance Metric shows improving trends (Warranty R/1000 Performance Metric score 3 points) 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 15

16 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 both Production and Service Commodity PPM Metric score >0 points) Q1 Action Recommended QR Rate (6 months) Stop Ship For both Production and Service, any QR Rate Metric score >0 points. 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 Industry Standards (IATF or ISO/TS 16949, ISO 14001, MMOG/LE) For production and service, Q1 maintained with any Metric score. Gold and Silver levels not permitted with 0 score. Certifications / assessment requirements met and not expired > 31 days for IATF or ISO/TS and ISO (Industry Standards Metric score >0 points) Q1 Action Recommended 16

17 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 Delivery Performance Warranty R/1000 For both Production and Service all regions which report delivery ratings to SIM via MP&L s SUPER G system Q1 maintained with any Metric score > 2 points or no warranty reported 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 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 17

18 Customer Endorsement 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 18

19 Service Unique Sites Q1 Endorsement 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. 19

20 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 Expired over 31 days IATF or ISO/TS 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 20

21 IMPACT OF PPM ON Q1 SCORE 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. 6 Month Commodity PPM Performance Table Performance vs. Q1 Industry Commodity 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 % 6 points -25% to % 5 points -50% to % 4 points -75% to % 3 points Worse than -100% Worse than -100% with 0 point Criteria Satisfied *(see next page) 2 points 0 points 21

22 IMPACT OF PPM ON Q1 SCORE Commodity PPM for Production and Service 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 of individual months out of the 6 mature months in which the commodity performance exceeds 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 with the note 2X Industry Threshold. Note that the number of months and multiple of the Q1 industry commodity level can be altered for all production suppliers and/or all service suppliers based on performance. Notice will be provided prior to implementing any such change. 22

23 IMPACT OF PPM ON Q1 SCORE 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. Individual Commodity Q1 Phase-In Metrics Phase In Metric (Completed per Individual Commodity) Commodity PPM Percentage of Site Volume Total Pieces Rejected Effective Range (Same for Service and Production) Q1 Metric score Limit (Low est score Allow ed) to to to to to to to to to to 6 Not Used for Q1 6 to to to to to to Site Overall PPM to to to

24 IMPACT OF PPM ON Q1 SCORE QR Rate for Production and Service QR Rate Scoring Thresholds 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 Status (6 Month) QR Rate Outstanding <3 (Raw Materials <1.5) Trending 3 < Rate < 10 (Raw Materials 1.5 < Rate < 7) Trend (3 Month vs. 6 Month) Metric Score N/A 10 Improving 8 Level 6 Degrading 4 QR Rate Metric score is determined by the QR Rate per 100 Opportunities Value, and the 3 Month vs. 6 Month Trend Unacceptable >10 (Raw Materials >7) N/A 0 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 QR Rate Phase-In Metric Number of QR Incidents Low Volume Limits on QR Rate Effective Range (Same for Service and Production) QR Rate Metric score Limits (Low est score Allow ed) Active Months (Months w ith Receipts)

25 Impact of Delivery Rating On Q1 Score Super G 6 Month Weighted Average Metric Points points 97 to to 96 Less than 81 (BUT ANY of 3 the most recent available monthly ratings 81, including the immature month) Less than 81 (AND ALL of the 3 the most recent available monthly ratings <81, including the immature month) 8 points 6 points 6 points 0 points Determining Worst Ship point For all considered ship points, the Supplier Site receives 0 point Metric score if the following occurs: 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 25

26 For further questions, please contact your Production or FCSD Service STA. More information is available on the Ford Supplier Portal Production and Service Q1 The link is available through Covisint ( om/sta/q1.html) 26