1. Supplier selection and rating

Transcription

1 VERSION: JANUARY 2008, PAGE 1 OF 6 1. Supplier selection and rating The supplier selection process consists of several steps. It leads to the approval of a supplier for a product order. This means that the supplier is also approved for the sourcing group concerned and included in the Heidelberg supplier base as an Approved Supplier. The product order referred to in the request can be placed with the supplier, and the supplier is then available as Approved Supplier for new product orders in this sourcing group (see GCS, Appendix 2_INT). To be approved for a product order and thereby accepted into the Heidelberg supplier base, a (potential) Heidelberg supplier must meet certain minimum requirements regarding quality, price, reliability, cooperation, innovation and environment (illus. 1). Illus. 1: (SSD) In addition to the disclosure of supplier information, e.g. when an offer is made, the supplier selection process includes further steps for expanding the database and rating the supplier (e.g. an audit). The data are collected and rated on the basis of the Heidelberg Supplier Standard Rating system (SSR) Heidelberg Supplier Standard Rating system All (potential) Heidelberg suppliers are first evaluated according to the Heidelberg Supplier Standard Rating system (SSR). This process may be continued in the Preferred Supplier Base Rating process (PSB system, see chapter 2). The SSR encompasses the collection and evaluation of the following data: Company-specific figures, such as sales figures or R&D expenses Quality management, e.g. certification or quality assurance agreements

2 VERSION: JANUARY 2008, PAGE 2 OF 6 Communication, such as EDI and CAD Technology, e.g. development partnerships or patents Environmental management, e.g. certificates The rating according to the SSR system focuses on the following criteria and attributes that represent characteristic figures and are derived from the Preferred Supplier Base system: Quality - Rate of complaints - Continuity of quality Price - Position with respect to the competition - Price development Reliability - Meeting of delivery deadlines during serial delivery - Average delivery time (in days) of delayed deliveries during serial delivery The definitions, weighting and rating process described in the PSB system apply. The rated suppliers are divided into three categories: Approved I Approved II Approved III The following table shows the reference values: Approved I Approved II Approved III Quality = 80% = 60% < 80% < 60% Price = 75% = 50% < 75% < 50% Reliability = 75% = 50% < 75% < 50% Table 2: Reference values for supplier rating according to the SSR system The result is presented in the same manner as on the Preferred Supplier Card (see 3.3).

3 VERSION: JANUARY 2008, PAGE 3 OF 6 2 Supplier rating and development according to the Preferred Supplier Base system (PSB system) The 6 criteria in the selection process (1.1) that are used to rate a supplier s potential form the basis of a continued supplier rating and development process, and hence for the application of the PSB system. The development stages of a Heidelberg supplier are shown in illustration 2: Basic specifications to Heidelberg Suppliers Supplier Selection / Supplier Approval Supplier Development Illus. 2: Supplier development stages at Heidelberg basic requirements for Heidelberg suppliers If the supplier meets the minimum requirements for approval by the Heidelberg team of experts and has qualified as Approved Supplier, his next step is to become an Advanced Supplier before he can qualify as Preferred Supplier. The Advanced Supplier differs from the Preferred Supplier in that he has not achieved the required number of points. 2.1 Criteria and attributes of the PSB system The PSB system focuses on the attributes listed below. These attributes are described in terms of current figures whenever possible. Attributes which cannot be captured and evaluated automatically are evaluated by a team of experts. The PSB attributes are: Quality - Rate of complaints - Continuity of quality - Quality management system (ISO 9000 ff, QN 9000, VDA 6.1) - Number of quality assurance agreements with customers (=> not counting Heidelberg!) and subcontractors

4 VERSION: JANUARY 2008, PAGE 4 OF 6 Price - Position with respect to the competition - Price development - Competitiveness and success - Continuous cost improvement Reliability - Meeting of delivery deadlines during serial delivery - Average delivery time (in days) of delayed deliveries during serial delivery Cooperation - Quality of documents - Internationality - Responsiveness - Communication and information systems - Partnerships / alliances in production Innovation - Innovative strength - Use of expert knowledge - Development quality - Application knowledge Environmental rating 2.2 Preferred Supplier Bases (PSB) specific to sourcing groups The PSB system is used for every sourcing group that is relevant to sales, technology or quality (sourcing groups see GCS, Appendix 2_INT). Areas in which the number of suppliers is to be reduced are given special priority. For all other sourcing groups, or in case the IT systems cannot yet provide the required data, the Supplier Standard Rating system (see 1.1) is used to rate suppliers.

5 VERSION: JANUARY 2008, PAGE 5 OF 6 Mechanics Electronics PSB Sheet metal PSB Roller bearings PSB Lubrication systems PSB... PSB Drives PSB Compressors/Pumps PSB Printed boards PSB... Initially no PSB Illus. 3: PSBs specific to sourcing groups 3. Generating and updating the Preferred Supplier Bases (PSB) 3.1 The team of experts The PSB is created by a team of experts that usually consists of the purchasing executive, scheduler and quality controller in charge, and a representative of Development. 3.2 The rating process Suppliers are rated according to individual results in six areas (quality, price, reliability, cooperation, innovation and environment). These individual results are the product of the weighting factor for each attribute and the points awarded for the attribute. In order to become a Preferred Supplier / Advanced Supplier, the supplier must exceed a minimum percentage of the maximum number of points in each of the five areas. Preferred Advanced Approved Quality = 80% = 60% < 80% < 60% Price = 75% = 50% < 75% < 50% Reliability = 75% = 50% < 75% < 50% Cooperation = 75% = 50% < 75% < 50% Innovation = 75% = 50% < 75% < 50% Environment = A = B = C Table 1: Reference values for supplier rating according to the PSB system

6 VERSION: JANUARY 2008, PAGE 6 OF 6 The weighting of an attribute may be anywhere between 0 (no importance) and 3 (high (greater than average) importance). There are fixed weightings for attributes and weightings that are determined individually by the experts for the requirements specific to a sourcing group. The weighting factor cannot be adjusted to individual suppliers. The points awarded for an attribute range from 0 (very bad) to 10 (very good) points. 3.3 Presentation of the result The result of each supplier s rating is documented on the Preferred Supplier Card (PSC) (illus. 3). The PSC shows the individual results in tables and in a graphic overview (network diagram), and the overall result in a table (absolute and relative values in %). A brief characterization of the supplier is added in a special field. The results of the rating are presented annually to the supplier. Illus. 3: Preferred Supplier Card example 4. Placing orders with Preferred Suppliers Preferred Suppliers have top priority for requests and orders, i.e. they receive such requests and orders before other suppliers do. A-suppliers can receive requests together with the Preferred Suppliers. If orders are placed with A- suppliers, the purchasing executive must first inform the team of experts. Approved Suppliers may also receive requests. Orders may only be placed with Approved Suppliers if the entire team of experts has given its consent.